UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

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: September 30, 2013

Item 1. Reports to Stockholders.

2

EQUITY FUNDS

TABLE OF CONTENTS

2	STATEMENTS OF ASSETS AND LIABILITIES
4	STATEMENTS OF OPERATIONS
6	STATEMENTS OF CHANGES IN NET ASSETS
8	FINANCIAL HIGHLIGHTS
17	SCHEDULES OF INVESTMENTS
17	ENHANCED LARGE CAP FUND
21	INCOME EQUITY FUND
25	INTERNATIONAL EQUITY FUND
28	LARGE CAP EQUITY FUND
31	LARGE CAP GROWTH FUND
34	LARGE CAP VALUE FUND
36	SMALL CAP CORE FUND
59	SMALL CAP VALUE FUND
69	TECHNOLOGY FUND
71	NOTES TO THE FINANCIAL STATEMENTS
83	FUND EXPENSES
85	APPROVAL OF ADVISORY AGREEMENT
88	FOR MORE INFORMATION

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

The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, Northern Funds’ performance may be subject to substantial short-term changes.

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

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 EQUITY FUNDS

EQUITY FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

Amounts in thousands, except per share data	ENHANCED LARGE CAP FUND			INCOME EQUITY FUND			INTERNATIONAL EQUITY FUND			LARGE CAP EQUITY FUND			LARGE CAP GROWTH FUND
ASSETS:
Investments, at cost(1)		$15,209			$288,213			$201,826			$110,676			$118,183
Investments, at value(2)		$17,470			$365,023			$263,879			$142,495			$170,848
Foreign currencies, at value (cost $4,795, respectively)		–			–			4,927			–			–
Dividend income receivable		27			482			360			143			49
Interest income receivable		–			889			–			–			–
Receivable for foreign tax reclaimable		–			–			1,235			–			–
Receivable for securities sold		–			4,758			–			1,680			7
Receivable for variation margin on futures contracts		–			–			–			–			–
Receivable for fund shares sold		1			103			485			17			31
Receivable from investment adviser		3			15			11			6			8
Prepaid and other assets		10			3			3			3			6
Total Assets		17,511			371,273			270,900			144,344			170,949
LIABILITIES:
Payable for securities purchased		–			–			14			–			–
Payable for variation margin on futures contracts		–			–			–			–			–
Payable for fund shares redeemed		–			985			5,812			1,321			1,511
Payable to affiliates:
Investment advisory fees		1			52			40			18			21
Administration fees		1			9			7			4			4
Custody and accounting fees		1			3			8			4			1
Shareholder servicing fees		–			10			6			24			4
Transfer agent fees		–			6			4			2			3
Trustee fees		4			5			14			11			9
Accrued other liabilities		27			33			30			31			30
Total Liabilities		34			1,103			5,935			1,415			1,583
Net Assets		$17,477			$370,170			$264,965			$142,929			$169,366
ANALYSIS OF NET ASSETS:
Capital stock		$33,164			$284,738			$360,558			$131,667			$134,215
Accumulated undistributed net investment income (loss)		5			(3,002	)		4,631			50			246
Accumulated undistributed net realized gain (loss)		(17,953	)		11,624			(162,447	)		(20,607	)		(17,760	)
Net unrealized appreciation		2,261			76,810			62,223			31,819			52,665
Net Assets		$17,477			$370,170			$264,965			$142,929			$169,366
Shares Outstanding ($.0001 par value, unlimited authorization)		1,418			24,441			27,560			7,894			5,796
Net Asset Value, Redemption and Offering Price Per Share		$12.33			$15.15			$9.61			$18.11			$29.22

(1) Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $3, $1,946, $7,417, $926, $3,973, $7,558, $1,591, $57,918 and $1,312, respectively.

(2) Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $3, $1,946, $7,417, $926, $3,973, $7,558, $1,591, $57,918 and $1,312, respectively.

See Notes to the Financial Statements.

EQUITY FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2013 (UNAUDITED)

LARGE CAP VALUE FUND			SMALL CAP CORE FUND		SMALL CAP VALUE FUND		TECHNOLOGY FUND
	$82,140			$127,272		$1,756,033		$65,020
	$107,913			$181,424		$2,347,046		$79,085
	–			–		–		–
	127			172		3,621		17
	–			–		–		–
	–			–		–		–
	–			–		22,671		373
	–			–		30		–
	8			495		1,591		–
	8			13		160		3
	15			38		90		9
	108,071			182,142		2,375,209		79,487
	–			–		–		–
	–			1		50		–
	171			532		4,438		32
	15			25		333		13
	3			5		59		2
	3			1		8		3
	13			–		60		3
	2			3		39		1
	9			5		12		6
	22			34		63		28
	238			606		5,062		88
	$107,833			$181,536		$2,370,147		$79,399
	$187,041			$111,452		$1,608,458		$76,992
	1,668			635		14,740		(339	)
	(106,649	)		15,263		154,617		(11,319	)
	25,773			54,186		592,332		14,065
	$107,833			$181,536		$2,370,147		$79,399
	9,068			8,703		116,552		4,295
	$11.89			$20.86		$20.34		$18.49

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 EQUITY FUNDS

EQUITY FUNDS

STATEMENTS OF OPERATIONS

Amounts in thousands	ENHANCED LARGE CAP FUND			INCOME EQUITY FUND			INTERNATIONAL EQUITY FUND			LARGE CAP EQUITY FUND			LARGE CAP GROWTH FUND
INVESTMENT INCOME:
Dividend income		$176	(1)		$4,022	(2)(3)		$4,669	(1)(3)		$1,435	(1)(3)		$950	(1)
Interest income		–			769			–			–			–
Total Investment Income		176			4,791			4,669			1,435			950
EXPENSES:
Investment advisory fees		22			1,577			1,178			552			673
Administration fees		11			278			196			110			135
Custody fees		17			25			135			21			19
Accounting fees		13			29			23			17			19
Transfer agent fees		7			185			131			74			90
Blue sky fees		9			12			11			10			9
SEC fees		2			2			2			2			2
Printing fees		22			13			9			10			13
Audit fees		8			8			8			8			8
Legal fees		8			8			8			8			8
Shareholder servicing fees		–			129			15			24			18
Trustee fees		5			5			5			5			5
Other		5			5			7			7			7
Total Expenses		129			2,276			1,728			848			1,006
Less expenses reimbursed by investment adviser		(84	)		(425	)		(342	)		(222	)		(243	)
Net Expenses		45			1,851			1,386			626			763
Net Investment Income (Loss)		131			2,940			3,283			809			187
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		1,137			6,035			6,402			7,541			12,526
Futures contracts		–			–			–			–			–
Foreign currency transactions		–			–			(43	)		–			–
Net change in unrealized appreciation (depreciation) on:
Investments		(153	)		9,434			21,017			4,045			6,068
Futures contracts		–			–			–			–			–
Foreign currency translations		–			–			188			–			–
Net Gains		984			15,469			27,564			11,586			18,594
Net Increase in Net Assets Resulting from Operations		$1,115			$18,409			$30,847			$12,395			$18,781

(1) Amount includes dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of which the amount is less than $1.

(2) Amount includes dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $1.

(3) Net of $23, $524, $7 and $5, respectively, in non-reclaimable foreign withholding taxes.

(4) Amount includes dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $5.

See Notes to the Financial Statements.

EQUITY FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

LARGE CAP VALUE FUND			SMALL CAP CORE FUND			SMALL CAP VALUE FUND			TECHNOLOGY FUND
	$1,654	(1)(3)		$1,387	(1)		$22,788	(4)		$303	(1)
	–			–			3			–
	1,654			1,387			22,791			303
	476			871			9,600			385
	84			154			1,694			58
	14			21			137			13
	16			20			123			14
	56			102			1,130			39
	10			10			26			10
	2			2			5			2
	11			13			142			9
	8			8			14			8
	8			8			12			8
	36			7			2,289			25
	5			5			16			5
	5			5			14			5
	731			1,226			15,202			581
	(255	)		(459	)		(3,948	)		(99	)
	476			767			11,254			482
	1,178			620			11,537			(179	)
	7,777			15,208			137,156			3,220
	–			1,071			14,165			–
	–			–			–			–
	1,058			10,708			63,162			3,075
	–			(181	)		(856	)		–
	–			–			–			–
	8,835			26,806			213,627			6,295
	$10,013			$27,426			$225,164			$6,116

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 EQUITY FUNDS

EQUITY FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

	ENHANCED LARGE CAP FUND						INCOME EQUITY FUND						INTERNATIONAL EQUITY FUND						LARGE CAP EQUITY FUND
Amounts in thousands	SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
OPERATIONS:
Net investment income (loss)		$131			$259			$2,940			$6,506			$3,283			$4,432			$809			$1,841
Net realized gains		1,137			1,112			6,035			27,450			6,359			7,880			7,541			16,322
Net change in unrealized appreciation (depreciation)		(153	)		282			9,434			10,097			21,205			11,081			4,045			(3,759	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,115			1,653			18,409			44,053			30,847			23,393			12,395			14,404
CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets resulting from capital share transactions		3,922			(2,347	)		(5,856	)		(63,660	)		(25,802	)		(7,963	)		(17,821	)		(4,696	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		3,922			(2,347	)		(5,856	)		(63,660	)		(25,802	)		(7,963	)		(17,821	)		(4,696	)
DISTRIBUTIONS PAID:
From net investment income		(124	)		(262	)		(2,806	)		(6,927	)		–			(4,471	)		(786	)		(1,853	)
From net realized gains		–			–			–			–			–			–			–			–
Total Distributions Paid		(124	)		(262	)		(2,806	)		(6,927	)		–			(4,471	)		(786	)		(1,853	)
Total Increase (Decrease) in Net Assets		4,913			(956	)		9,747			(26,534	)		5,045			10,959			(6,212	)		7,855
NET ASSETS:
Beginning of period		12,564			13,520			360,423			386,957			259,920			248,961			149,141			141,286
End of period		$17,477			$12,564			$370,170			$360,423			$264,965			$259,920			$142,929			$149,141
Accumulated Undistributed Net Investment Income (Loss)		$5			$(2	)		$(3,002	)		$(3,136	)		$4,631			$1,348			$50			$27

See Notes to the Financial Statements.

EQUITY FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

OR THE FISCAL YEAR ENDED MARCH 31, 2013

LARGE CAP GROWTH FUND						LARGE CAP VALUE FUND						SMALL CAP CORE FUND						SMALL CAP VALUE FUND					TECHNOLOGY FUND
SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013		MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
	$187			$476			$1,178			$2,404			$620			$1,894			$11,537		$25,858			$(179	)		$(505	)
	12,526			7,726			7,777			8,014			16,279			2,826			151,321		42,372			3,220			3,871
	6,068			8,530			1,058			1,811			10,527			25,977			62,306		203,710			3,075			(4,167	)
	18,781			16,732			10,013			12,229			27,426			30,697			225,164		271,940			6,116			(801	)
	(47,024	)		87,207			(9,954	)		(28,368	)		(58,449	)		(11,763	)		68,130		96,032			(6,271	)		(21,845	)
	(47,024	)		87,207			(9,954	)		(28,368	)		(58,449	)		(11,763	)		68,130		96,032			(6,271	)		(21,845	)
	–			(400	)		–			(2,896	)		–			(2,300	)		–		(25,500	)		–			–
	–			–			–			–			–			(335	)		–		(44,644	)		–			–
	–			(400	)		–			(2,896	)		–			(2,635	)		–		(70,144	)		–			–
	(28,243	)		103,539			59			(19,035	)		(31,023	)		16,299			293,294		297,828			(155	)		(22,646	)
	197,609			94,070			107,774			126,809			212,559			196,260			2,076,853		1,779,025			79,554			102,200
	$169,366			$197,609			$107,833			$107,774			$181,536			$212,559			$2,370,147		$2,076,853			$79,399			$79,554
	$246			$59			$1,668			$490			$635			$15			$14,740		$3,203			$(339	)		$(160	)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 EQUITY FUNDS

EQUITY FUNDS

FINANCIAL HIGHLIGHTS

ENHANCED LARGE CAP FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$11.43			$10.17			$9.43			$8.38			$5.66			$9.41
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.10			0.21			0.15			0.12			0.12			0.16
Net realized and unrealized gains (losses)		0.90			1.27			0.74			1.06			2.72			(3.75	)
Total from Investment Operations		1.00			1.48			0.89			1.18			2.84			(3.59	)
LESS DISTRIBUTIONS PAID:
From net investment income		(0.10	)		(0.22	)		(0.15	)		(0.13	)		(0.12	)		(0.16	)
Total Distributions Paid		(0.10	)		(0.22	)		(0.15	)		(0.13	)		(0.12	)		(0.16	)
Net Asset Value, End of Period		$12.33			$11.43			$10.17			$9.43			$8.38			$5.66
Total Return(1)		8.74	%		14.76	%		9.64	%		14.21	%		50.46	%		(38.50	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$17,477			$12,564			$13,520			$14,349			$25,053			$27,061
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.62	%(3)		0.62	%(3)		0.60	%(3)		0.59	%(3)		0.60	%		0.60	%
Expenses, before reimbursements and credits		1.75	%		1.98	%		1.72	%		1.26	%		1.21	%		0.94	%
Net investment income, net of reimbursements and credits		1.77	%(3)		2.05	%(3)		1.64	%(3)		1.48	%(3)		1.61	%		1.90	%
Net investment income, before reimbursements and credits		0.64	%		0.69	%		0.52	%		0.81	%		1.00	%		1.56	%
Portfolio Turnover Rate		60.68	%		85.90	%		91.87	%		100.72	%		117.73	%		100.07	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of less than $1,000, which represent less than 0.005 percent of average net assets for the six months ended September 30,2013 and the fiscal years ended March 31, 2013 and 2012, respectively, and approximately $1,000, which represents less than 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

EQUITY FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT

INCOME EQUITY FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$14.52			$12.99			$13.01			$11.14			$7.73			$11.60
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.12			0.22			0.22			0.26			0.26			0.25
Net realized and unrealized gains (losses)		0.62			1.57			0.02			1.86			3.37			(3.72	)
Total from Investment Operations		0.74			1.79			0.24			2.12			3.63			(3.47	)
LESS DISTRIBUTIONS PAID:
From net investment income		(0.11	)		(0.26	)		(0.26	)		(0.25	)		(0.22	)		(0.40	)
Total Distributions Paid		(0.11	)		(0.26	)		(0.26	)		(0.25	)		(0.22	)		(0.40	)
Net Asset Value, End of Period		$15.15			$14.52			$12.99			$13.01			$11.14			$7.73
Total Return(1)		5.13	%		14.04	%		2.03	%		19.54	%		47.21	%		(30.37	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$370,170			$360,423			$386,957			$385,609			$304,288			$214,703
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		1.00	%(3)		1.00	%(3)		0.99	%(3)		0.99	%(3)		1.00	%		1.00	%
Expenses, before reimbursements and credits		1.23	%		1.23	%		1.21	%		1.23	%		1.23	%		1.28	%
Net investment income, net of reimbursements and credits		1.58	%(3)		1.85	%(3)		1.81	%(3)		2.17	%(3)		2.71	%		2.66	%
Net investment income, before reimbursements and credits		1.35	%		1.62	%		1.59	%		1.93	%		2.48	%		2.38	%
Portfolio Turnover Rate		6.12	%		11.27	%		22.25	%		18.67	%		26.94	%		20.93	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $6,000 and $9,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal year ended March 31, 2013, respectively, and approximately $22,000 and $17,000, which represents 0.01 percent of average net assets for the fiscal years ended March 31, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 EQUITY FUNDS

EQUITY FUNDS

FINANCIAL HIGHLIGHTS continued

INTERNATIONAL EQUITY FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 UNAUDITED			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$8.53			$7.95			$8.65			$7.92			$5.31			$10.70
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.12			0.14			0.14			0.10			0.13			0.32
Net realized and unrealized gains (losses)		0.96			0.58			(0.71	)		0.75			2.66			(4.87	)
Total from Investment Operations		1.08			0.72			(0.57	)		0.85			2.79			(4.55	)
LESS DISTRIBUTIONS PAID:
From net investment income(1)		–			(0.14	)		(0.13	)		(0.12	)		(0.18	)		(0.31	)
From net realized gains		–			–			–			–			–			(0.53	)
Total Distributions Paid		–			(0.14	)		(0.13	)		(0.12	)		(0.18	)		(0.84	)
Net Asset Value, End of Period		$9.61			$8.53			$7.95			$8.65			$7.92			$5.31
Total Return(2)		12.66	%		9.09	%		(6.39	)%		10.86	%		52.58	%		(43.23	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$264,965			$259,920			$248,961			$330,550			$318,748			$238,907
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		1.06	%(4)		1.06	%(4)		1.21	%(4)		1.25	%(4)		1.25	%		1.26	%(5)
Expenses, before reimbursements and credits		1.32	%		1.37	%		1.41	%		1.40	%		1.40	%		1.40	%
Net investment income, net of reimbursements and credits		2.51	%(4)		1.88	%(4)		1.61	%(4)		1.18	%(4)		1.69	%		2.27	%
Net investment income, before reimbursements and credits		2.25	%		1.57	%		1.41	%		1.03	%		1.54	%		2.13	%
Portfolio Turnover Rate		8.98	%		27.40	%		37.68	%		40.87	%		44.44	%		75.96	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $2,000, $3,000, $3,000 and $6,000 which represent less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(5) Expense ratio, net of waivers, reimbursements and credits, for the year would have been 1.25 percent, absent the effect of interest expense incurred by the Fund’s temporary borrowings against a line of credit.

See Notes to the Financial Statements.

EQUITY FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

LARGE CAP EQUITY FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$16.74			$15.34			$14.35			$12.63			$8.28			$13.17
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.10			0.19			0.13			0.07			0.10			0.15
Net realized and unrealized gains (losses)		1.37			1.40			0.98			1.73			4.35			(4.89	)
Total from Investment Operations		1.47			1.59			1.11			1.80			4.45			(4.74	)
LESS DISTRIBUTIONS PAID:
From net investment income		(0.10	)		(0.19	)		(0.12	)		(0.08	)		(0.10	)		(0.15	)
Total Distributions Paid		(0.10	)		(0.19	)		(0.12	)		(0.08	)		(0.10	)		(0.15	)
Net Asset Value, End of Period		$18.11			$16.74			$15.34			$14.35			$12.63			$8.28
Total Return(1)		8.78	%		10.49	%		7.86	%		14.30	%		53.90	%		(36.17	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$142,929			$149,141			$141,286			$156,298			$162,570			$138,377
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.85	%(3)		0.85	%(3)		0.96	%(3)		1.00	%(3)		1.00	%		1.00	%
Expenses, before reimbursements and credits		1.15	%		1.19	%		1.22	%		1.25	%		1.23	%		1.20	%
Net investment income, net of reimbursements and credits		1.10	%(3)		1.24	%(3)		0.91	%(3)		0.55	%(3)		0.89	%		1.29	%
Net investment income, before reimbursements and credits		0.80	%		0.90	%		0.65	%		0.30	%		0.66	%		1.09	%
Portfolio Turnover Rate		18.54	%		68.24	%		63.65	%		47.83	%		67.21	%		92.02	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $1,000, $3,000, $1,000 and $2,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 EQUITY FUNDS

EQUITY FUNDS

FINANCIAL HIGHLIGHTS continued

LARGE CAP GROWTH FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$26.30			$25.00			$23.18			$19.16			$13.41			$21.48
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		0.03			0.06			(0.03	)		–	(1)		0.05			0.08
Net realized and unrealized gains (losses)		2.89			1.29			1.85			4.04			5.77			(8.06	)
Total from Investment Operations		2.92			1.35			1.82			4.04			5.82			(7.98	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.05	)		–			(0.02	)		(0.07	)		(0.09	)
Total Distributions Paid		–			(0.05	)		–			(0.02	)		(0.07	)		(0.09	)
Net Asset Value, End of Period		$29.22			$26.30			$25.00			$23.18			$19.16			$13.41
Total Return(2)		11.10	%		5.42	%		7.85	%		21.08	%		43.39	%		(37.19	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$169,366			$197,609			$94,070			$89,506			$82,726			$70,539
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.85	%(4)		0.85	%(4)		0.96	%(4)		0.99	%(4)		1.00	%		1.00	%
Expenses, before reimbursements and credits		1.12	%		1.20	%		1.30	%		1.33	%		1.34	%		1.30	%
Net investment income (loss), net of reimbursements and credits		0.21	%(4)		0.35	%(4)		(0.11	)%(4)		0.02	%(4)		0.29	%		0.39	%
Net investment income (loss), before reimbursements and credits		(0.06	)%		0.00	%		(0.45	)%		(0.32	)%		(0.05	)%		0.09	%
Portfolio Turnover Rate		17.01	%		49.51	%		36.04	%		147.29	%		154.48	%		246.80	%

(1) Amount was less than $0.01 per share.

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $2,000, $7,000, $2,000 and $5,000 which represents less than 0.005, less than 0.01, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net investment loss and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

EQUITY FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

LARGE CAP VALUE FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.84			$9.88			$10.20			$9.37			$6.21			$10.23
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.13			0.25			0.19			0.15			0.18			0.30
Net realized and unrealized gains (losses)		0.92			0.99			(0.37	)		0.86			3.16			(4.07	)
Total from Investment Operations		1.05			1.24			(0.18	)		1.01			3.34			(3.77	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.28	)		(0.14	)		(0.18	)		(0.18	)		(0.25	)
Total Distributions Paid		–			(0.28	)		(0.14	)		(0.18	)		(0.18	)		(0.25	)
Net Asset Value, End of Period		$11.89			$10.84			$9.88			$10.20			$9.37			$6.21
Total Return(1)		9.69	%		12.82	%		(1.50	)%		10.86	%		53.94	%		(37.16	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$107,833			$107,774			$126,809			$191,223			$227,104			$219,912
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.85	%(3)		0.85	%(3)		1.05	%(3)		1.10	%(3)		1.10	%		1.10	%
Expenses, before reimbursements and credits		1.30	%		1.35	%		1.27	%		1.23	%		1.21	%		1.21	%
Net investment income, net of reimbursements and credits		2.11	%(3)		2.18	%(3)		1.66	%(3)		1.36	%(3)		1.76	%		2.95	%
Net investment income, before reimbursements and credits		1.66	%		1.68	%		1.44	%		1.23	%		1.65	%		2.84	%
Portfolio Turnover Rate		16.72	%		22.91	%		49.82	%		65.38	%		30.54	%		61.00	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $2,000, $3,000, and $2,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013 and 2012, respectively, and approximately $11,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 EQUITY FUNDS

EQUITY FUNDS

FINANCIAL HIGHLIGHTS continued

SMALL CAP CORE FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$18.39			$15.87			$15.80			$12.38			$7.81			$12.56
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		0.07			0.17			0.06			0.01			(0.08	)		(0.07	)
Net realized and unrealized gains (losses)		2.40			2.59			0.05			3.41			4.65			(4.68	)
Total from Investment Operations		2.47			2.76			0.11			3.42			4.57			(4.75	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.21	)		(0.04	)		–			–			–
From net realized gains		–			(0.03	)		–			–			–			–
Total Distributions Paid		–			(0.24	)		(0.04	)		–			–			–
Net Asset Value, End of Period		$20.86			$18.39			$15.87			$15.80			$12.38			$7.81
Total Return(1)		13.43	%		17.57	%		0.71	%		27.73	%		58.39	%		(37.77	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$181,536			$212,559			$196,260			$180,602			$39,001			$29,206
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.75	%(3)		0.75	%(3)		0.93	%(3)		0.98	%(3)		1.22	%(4)		1.25	%
Expenses, before reimbursements and credits		1.20	%		1.23	%		1.20	%		1.39	%		1.86	%		1.71	%
Net investment income (loss), net of reimbursements and credits		0.60	%(3)		1.03	%(3)		0.41	%(3)		0.22	%(3)		(0.71	)%		(0.67	)%
Net investment income (loss), before reimbursements and credits		0.15	%		0.55	%		0.14	%		(0.19	)%		(1.35	)%		(1.13	)%
Portfolio Turnover Rate		6.04	%		12.23	%		12.33	%		13.90	%		224.05	%		299.24	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $3,000, $9,000 and $6,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013 and 2012 respectively, and approximately $12,000, which represents 0.02 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(4) Effective February 17, 2010, the Fund changed its name from the Small Cap Growth Fund to the Small Cap Core Fund and changed its investment strategy from an active small cap growth investment style to a quantitative small cap core investment style. These changes resulted in a reduction to the Fund’s expense limitations, effective February 17, 2010, from 1.25 percent to 1.00 percent.

See Notes to the Financial Statements.

EQUITY FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

SMALL CAP VALUE FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$18.43			$16.57			$16.20			$13.33			$8.49			$13.30
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.10			0.24			0.14			0.10			0.09			0.12
Net realized and unrealized gains (losses)		1.81			2.26			0.35			2.87			4.85			(4.81	)
Total from Investment Operations		1.91			2.50			0.49			2.97			4.94			(4.69	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.23	)		(0.10	)		(0.10	)		(0.10	)		(0.12	)
From net realized gains		–			(0.41	)		(0.02	)		–			–			–
Total Distributions Paid		–			(0.64	)		(0.12	)		(0.10	)		(0.10	)		(0.12	)
Net Asset Value, End of Period		$20.34			$18.43			$16.57			$16.20			$13.33			$8.49
Total Return(1)		10.36	%		15.60	%		3.16	%		22.37	%		58.27	%		(35.51	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$2,370,147			$2,076,853			$1,779,025			$1,732,969			$1,464,482			$905,665
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		1.00	%(3)		1.00	%(3)		1.00	%(3)		0.99	%(3)		1.00	%		1.00	%
Expenses, before reimbursements and credits		1.35	%		1.36	%		1.37	%		1.36	%		1.38	%		1.38	%
Net investment income, net of reimbursements and credits		1.02	%(3)		1.45	%(3)		0.89	%(3)		0.70	%(3)		0.82	%		1.20	%
Net investment income, before reimbursements and credits		0.67	%		1.09	%		0.52	%		0.33	%		0.44	%		0.82	%
Portfolio Turnover Rate		15.75	%		26.09	%		20.67	%		17.94	%		33.26	%		36.95	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $44,000, $81,000 and $44,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013 and 2012 respectively, and approximately $111,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 EQUITY FUNDS

EQUITY FUNDS

FINANCIAL HIGHLIGHTS continued

TECHNOLOGY FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$17.06			$17.11			$15.62			$12.14			$8.48			$11.98
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.04	)		(0.12	)		(0.11	)		(0.07	)		(0.06	)		(0.04	)
Net realized and unrealized gains (losses)		1.47			0.07			1.60			3.55			3.72			(3.46	)
Total from Investment Operations		1.43			(0.05	)		1.49			3.48			3.66			(3.50	)
Net Asset Value, End of Period		$18.49			$17.06			$17.11			$15.62			$12.14			$8.48
Total Return(1)		8.38	%		(0.29	)%		9.54	%		28.67	%		43.16	%		(29.22	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$79,399			$79,554			$102,200			$94,851			$81,054			$62,720
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		1.25	%(3)		1.25	%(3)		1.25	%(3)		1.25	%(3)		1.25	%		1.25	%
Expenses, before reimbursements and credits		1.51	%		1.53	%		1.47	%		1.48	%		1.49	%		1.49	%
Net investment loss, net of reimbursements and credits		(0.46	)%(3)		(0.61	)%(3)		(0.76	)%(3)		(0.53	)%(3)		(0.56	)%		(0.34	)%
Net investment loss, before reimbursements and credits		(0.72	)%		(0.89	)%		(0.98	)%		(0.76	)%		(0.80	)%		(0.58	)%
Portfolio Turnover Rate		13.23	%		42.66	%		57.57	%		114.90	%		47.81	%		140.14	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income (loss) ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in an affiliated money market fund of approximately $1,000, $2,000, $1,000 and $3,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount.

See Notes to the Financial Statements.

EQUITY FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2%
Advertising – 0.7%
Omnicom Group, Inc.		2,050		$130
Aerospace/Defense – 3.5%
Boeing (The) Co.		1,823		214
Lockheed Martin Corp.		987		126
Northrop Grumman Corp.		1,434		137
Raytheon Co.		1,732		133
				610
Agriculture – 2.1%
Altria Group, Inc.		5,439		187
Archer-Daniels-Midland Co.		3,481		128
Philip Morris International, Inc.		637		55
				370
Airlines – 0.7%
Southwest Airlines Co.		8,356		122
Auto Manufacturers – 0.3%
Ford Motor Co.		3,159		53
Banks – 8.8%
Bank of America Corp.		7,577		104
Capital One Financial Corp.		1,789		123
Citigroup, Inc.		5,650		274
Fifth Third Bancorp		1,148		21
Goldman Sachs Group (The), Inc.		1,180		187
JPMorgan Chase & Co.		6,378		329
Morgan Stanley		3,718		100
PNC Financial Services Group (The), Inc.		2,069		150
Regions Financial Corp.		12,828		119
Wells Fargo & Co.		3,094		128
				1,535
Beverages – 1.7%
Coca-Cola (The) Co.		1,641		62
PepsiCo, Inc.		3,011		240
				302
Biotechnology – 1.8%
Amgen, Inc.		1,871		209
Celgene Corp. *		694		107
				316
Chemicals – 2.6%
Dow Chemical (The) Co.		4,218		162
LyondellBasell Industries N.V., Class A		2,059		151
PPG Industries, Inc.		808		135
				448

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Commercial Services – 1.7%
H&R Block, Inc.		3,840		$102
Total System Services, Inc.		2,876		85
Western Union (The) Co.		6,322		118
				305
Computers – 7.7%
Accenture PLC, Class A		1,300		96
Apple, Inc.		854		407
Computer Sciences Corp.		2,306		119
Dell, Inc.		785		11
Hewlett-Packard Co.		6,101		128
International Business Machines Corp.		1,791		332
Seagate Technology PLC		3,086		135
Western Digital Corp.		1,912		121
				1,349
Cosmetics/Personal Care – 0.8%
Procter & Gamble (The) Co.		1,801		136
Distribution/Wholesale – 0.5%
Genuine Parts Co.		1,125		91
Diversified Financial Services – 0.7%
SLM Corp.		4,710		117
Electric – 3.1%
AES Corp.		6,183		82
Ameren Corp.		3,383		118
American Electric Power Co., Inc.		3,004		130
DTE Energy Co.		1,765		117
Entergy Corp.		450		28
PPL Corp.		727		22
Public Service Enterprise Group, Inc.		1,577		52
				549
Electrical Components & Equipment – 1.0%
Emerson Electric Co.		2,629		170
Electronics – 0.1%
Waters Corp. *		158		17
Engineering & Construction – 0.7%
Fluor Corp.		1,766		125
Entertainment – 0.7%
International Game Technology		6,091		115
Food – 2.3%
Campbell Soup Co.		2,396		98
General Mills, Inc.		1,247		60
Kroger (The) Co.		3,408		137

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Food – 2.3% – continued
Safeway, Inc.		280		$9
Tyson Foods, Inc., Class A		3,716		105
				409
Forest Products & Paper – 0.1%
International Paper Co.		524		24
Healthcare - Products – 1.5%
Becton Dickinson and Co.		874		87
Medtronic, Inc.		3,155		168
				255
Healthcare - Services – 0.9%
Cigna Corp.		467		36
WellPoint, Inc.		1,535		128
				164
Home Furnishings – 0.8%
Whirlpool Corp.		928		136
Household Products/Wares – 1.5%
Avery Dennison Corp.		2,538		111
Kimberly-Clark Corp.		1,571		148
				259
Insurance – 4.7%
Assurant, Inc.		2,118		114
Berkshire Hathaway, Inc., Class B *		1,154		131
Genworth Financial, Inc., Class A *		9,204		118
Hartford Financial Services Group, Inc.		4,077		127
Lincoln National Corp.		2,873		121
Travelers (The) Cos., Inc.		1,180		100
XL Group PLC		3,696		114
				825
Internet – 2.0%
Amazon.com, Inc. *		44		14
Google, Inc., Class A *		298		261
priceline.com, Inc. *		73		74
				349
Media – 2.3%
Comcast Corp., Class A		554		25
DIRECTV *		644		38
Gannett Co., Inc.		4,298		115
Twenty-First Century Fox, Inc.		2,336		78
Walt Disney (The) Co.		380		25
Washington Post (The) Co., Class B		194		119
				400

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Miscellaneous Manufacturing – 3.8%
3M Co.		1,668		$199
Dover Corp.		1,464		131
General Electric Co.		7,326		175
Illinois Tool Works, Inc.		1,989		152
				657
Office/Business Equipment – 0.9%
Pitney Bowes, Inc.		3,131		57
Xerox Corp.		9,320		96
				153
Oil & Gas – 10.0%
Chevron Corp.		3,136		381
ConocoPhillips		3,065		213
Diamond Offshore Drilling, Inc.		99		6
Exxon Mobil Corp.		6,192		533
Helmerich & Payne, Inc.		1,762		122
Marathon Petroleum Corp.		841		54
Murphy Oil Corp.		1,533		92
Murphy USA, Inc. *		382		15
Nabors Industries Ltd.		2,969		48
Occidental Petroleum Corp.		895		84
Phillips 66		1,203		70
Valero Energy Corp.		3,632		124
				1,742
Oil & Gas Services – 0.1%
Schlumberger Ltd.		161		14
Packaging & Containers – 0.3%
Bemis Co., Inc.		1,243		49
Pharmaceuticals – 8.3%
Abbott Laboratories		4,891		163
AmerisourceBergen Corp.		2,015		123
Eli Lilly & Co.		3,217		162
Johnson & Johnson		4,108		356
McKesson Corp.		1,099		141
Merck & Co., Inc.		1,180		56
Mylan, Inc. *		2,936		112
Pfizer, Inc.		11,498		330
				1,443
Real Estate Investment Trusts – 1.9%
Host Hotels & Resorts, Inc.		7,131		126
Public Storage		586		94
Vornado Realty Trust		1,426		120
				340

See Notes to the Financial Statements.

EQUITY FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Retail – 6.2%
Bed Bath & Beyond, Inc. *		1,610		$125
Best Buy Co., Inc.		2,625		98
CVS Caremark Corp.		3,284		186
GameStop Corp., Class A		1,429		71
Gap (The), Inc.		2,777		112
Home Depot (The), Inc.		290		22
Macy’s, Inc.		2,748		119
McDonald’s Corp.		637		61
Staples, Inc.		6,950		102
Target Corp.		1,918		123
Wal-Mart Stores, Inc.		910		67
				1,086
Semiconductors – 1.4%
Intel Corp.		4,338		99
KLA-Tencor Corp.		1,954		119
QUALCOMM, Inc.		312		21
				239
Software – 3.1%
CA, Inc.		3,760		112
Microsoft Corp.		12,031		401
Oracle Corp.		1,069		35
				548
Telecommunications – 4.0%
AT&T, Inc.		9,344		316
CenturyLink, Inc.		3,012		95
Cisco Systems, Inc.		10,386		243
Verizon Communications, Inc.		1,118		52
				706
Toys, Games & Hobbies – 0.7%
Hasbro, Inc.		2,534		119
Transportation – 0.2%
Ryder System, Inc.		500		30
Total Common Stocks
(Cost $14,552)				16,807

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 3.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		3,557		$3
SPDR S&P 500 ETF Trust		3,926		660
Total Investment Companies
(Cost $657)				663
Total Investments – 100.0%
(Cost $15,209)				17,470
Other Assets less Liabilities – 0.0%				7
NET ASSETS – 100.0%				$17,477

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $81,000 with net sales of approximately $78,000 during the six months ended September 30, 2013.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the Enhanced Large Cap Fund were :

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		12.4%
Consumer Staples		9.6
Energy		10.4
Financials		16.8
Health Care		13.1
Industrials		10.5
Information Technology		17.5
Materials		3.7
Telecommunication Services		2.7
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).

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND continued SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$16,807	(1)		$–		$–		$16,807
Investment Companies		663			–		–		663
Total Investments		$17,470			$–		$–		$17,470

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

EQUITY FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 65.6%
Banks – 3.3%
Banco Santander S.A. ADR		280,000		$2,287
JPMorgan Chase & Co.		81,000		4,187
Morgan Stanley		217,500		5,862
				12,336
Beverages – 0.9%
Coca-Cola (The) Co.		83,300		3,155
Chemicals – 2.3%
Dow Chemical (The) Co.		148,740		5,712
E.I. du Pont de Nemours & Co.		50,000		2,928
				8,640
Computers – 3.0%
Accenture PLC, Class A		58,100		4,279
Apple, Inc.		9,150		4,362
International Business Machines Corp.		13,950		2,583
				11,224
Cosmetics/Personal Care – 2.3%
Avon Products, Inc.		220,215		4,537
Procter & Gamble (The) Co.		54,320		4,106
				8,643
Electric – 2.6%
Exelon Corp.		145,700		4,318
Great Plains Energy, Inc.		238,629		5,298
				9,616
Electrical Components & Equipment – 1.3%
Emerson Electric Co.		71,650		4,636
Food – 2.7%
Kellogg Co.		54,055		3,175
Kraft Foods Group, Inc.		46,613		2,444
Mondelez International, Inc., Class A		139,840		4,394
				10,013
Home Builders – 0.4%
DR Horton, Inc.		70,000		1,360
Household Products/Wares – 1.1%
Kimberly-Clark Corp.		42,891		4,041
Insurance – 3.9%
Chubb (The) Corp.		45,840		4,092
Hartford Financial Services Group, Inc.		204,328		6,359
Travelers (The) Cos., Inc.		45,740		3,877
				14,328

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 65.6% – continued
Investment Companies – 0.3%
Fifth Street Finance Corp.		100,000		$1,029
Media – 3.5%
Comcast Corp., Class A		144,880		6,541
Walt Disney (The) Co.		102,390		6,603
				13,144
Miscellaneous Manufacturing – 4.5%
3M Co.		50,900		6,078
Eaton Corp. PLC		85,200		5,865
General Electric Co.		203,500		4,862
				16,805
Office/Business Equipment – 1.7%
Xerox Corp.		608,620		6,263
Oil & Gas – 8.8%
Apache Corp.		48,723		4,148
Cenovus Energy, Inc.		110,000		3,284
Chevron Corp.		31,770		3,860
ConocoPhillips		64,020		4,450
Devon Energy Corp.		74,310		4,292
Encana Corp.		196,450		3,404
Marathon Oil Corp.		115,620		4,033
Occidental Petroleum Corp.		56,340		5,270
				32,741
Pharmaceuticals – 10.1%
Abbott Laboratories		69,430		2,304
AbbVie, Inc.		70,530		3,155
Bristol-Myers Squibb Co.		108,720		5,032
GlaxoSmithKline PLC ADR		110,510		5,544
Johnson & Johnson		74,175		6,430
Merck & Co., Inc.		130,686		6,222
Pfizer, Inc.		200,600		5,759
Teva Pharmaceutical Industries Ltd. ADR		75,000		2,834
				37,280
Real Estate Investment Trusts – 2.6%
Healthcare Realty Trust, Inc.		187,550		4,334
Rayonier, Inc.		93,370		5,196
				9,530
Retail – 1.5%
Target Corp.		88,850		5,685
Savings & Loans – 1.7%
New York Community Bancorp, Inc.		418,210		6,319

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 65.6% – continued
Semiconductors – 0.7%
Intel Corp.		120,000		$2,750
Software – 1.0%
Activision Blizzard, Inc.		218,150		3,637
Telecommunications – 3.9%
Cisco Systems, Inc.		244,750		5,732
Verizon Communications, Inc.		108,805		5,077
Vodafone Group PLC ADR		100,000		3,518
				14,327
Toys, Games & Hobbies – 1.5%
Mattel, Inc.		131,680		5,512
Total Common Stocks
(Cost $180,818)				243,014
CONVERTIBLE PREFERRED STOCKS – 4.5%
Auto Manufacturers – 1.0%
General Motors Co., 4.75%		70,000		3,510
Banks – 0.8%
Bank of America Corp., 7.25%		2,775		2,997
Computers – 1.2%
Unisys Corp., 6.25%		61,600		4,266
Iron/Steel – 0.4%
ArcelorMittal, 6.00%		72,000		1,549
Oil & Gas – 1.1%
Chesapeake Energy Corp., 5.75% (1)(2)		3,850		4,247
Total Convertible Preferred Stocks
(Cost $15,619)				16,569
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CONVERTIBLE BONDS – 28.0%
Aerospace/Defense – 1.1%
Alliant Techsystems, Inc., 3.00%, 8/15/24		$3,000		$3,945
Coal – 1.0%
Peabody Energy Corp., 4.75%, 12/15/41		4,450		3,510
Computers – 4.0%
CACI International, Inc., 2.13%, 5/1/14		6,000		7,672

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CONVERTIBLE BONDS – 28.0% – continued
Computers – 4.0% – continued
SanDisk Corp., 1.50%, 8/15/17		$5,300		$7,023
				14,695
Diversified Financial Services – 0.4%
Janus Capital Group, Inc., 0.75%, 7/15/18		1,355		1,415
Electrical Components & Equipment – 2.3%
EnerSys, Inc., 3.38%, 6/1/38		3,350		5,180
General Cable Corp., 4.50%, 11/15/29		3,000		3,401
				8,581
Electronics – 1.5%
TTM Technologies, Inc., 3.25%, 5/15/15		5,409		5,497
Food – 1.4%
Tyson Foods, Inc., 3.25%, 10/15/13		2,950		5,052
Healthcare - Products – 2.2%
Hologic, Inc., 2.00%, 3/1/42		4,345		4,361
Volcano Corp., 1.75%, 12/1/17		3,785		3,913
				8,274
Healthcare - Services – 0.6%
WellPoint, Inc., 2.75%, 10/15/42 (1)(2)		1,700		2,184
Home Builders – 1.2%
D.R. Horton, Inc., 2.00%, 5/15/14		3,000		4,583
Investment Companies – 2.5%
BlackRock Kelso Capital Corp., 5.50%, 2/15/18 (1)(2)		2,530		2,576
Fifth Street Finance Corp., 5.38%, 4/1/16		6,450		6,829
				9,405
Metal Fabricate/Hardware – 0.5%
RTI International Metals, Inc., 1.63%, 10/15/19		1,875		1,938

See Notes to the Financial Statements.

EQUITY FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CONVERTIBLE BONDS – 28.0% – continued
Mining – 3.4%
Kaiser Aluminum Corp., 4.50%, 4/1/15		$3,447		$5,205
Newmont Mining Corp., 1.63%, 7/15/17		5,000		5,538
Silver Standard Resources, Inc., 2.88%, 2/1/33 (1)(2)		2,485		1,845
				12,588
Oil & Gas – 0.5%
Alon USA Energy, Inc., 3.00%, 9/15/18 (1)(2)		1,869		1,855
Retail – 1.8%
Regis Corp., 5.00%, 7/15/14		6,060		6,666
Semiconductors – 2.5%
Intel Corp., 2.95%, 12/15/35		2,400		2,586
Lam Research Corp., 1.25%, 5/15/18		5,650		6,787
				9,373
Telecommunications – 1.1%
Comtech Telecommunications Corp., 3.00%, 5/1/29		3,875		3,933
Total Convertible Bonds
(Cost $89,830)				103,494
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 0.5%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (3)(4)		1,945,578		$1,946
Total Investment Companies
(Cost $1,946)				1,946
Total Investments – 98.6%
(Cost $288,213)				365,023
Other Assets less Liabilities – 1.4%				5,147
NET ASSETS – 100.0%				$370,170

(1) Restricted security that has been deemed illiquid. At September 30, 2013, the value of these restricted illiquid securities amounted to approximately $12,707,000 or 3.4% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Alon USA Energy, Inc., 3.00%, 9/15/18	9/11/13-9/17/13		$1,895
BlackRock Kelso Capital Corp., 5.50%, 2/15/18	2/13/13		2,530
Chesapeake Energy Corp., 5.75%	1/18/12-1/27/12		3,850
Silver Standard Resources, Inc., 2.88%, 2/1/33	1/11/13-6/4/13		2,064
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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $9,994,000 with net sales of approximately $8,048,000 during the six months ended September 30, 2013.

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the Income Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.1%
Consumer Staples		8.5
Energy		11.7
Financials		15.8
Health Care		13.1
Industrials		9.4
Information Technology		18.6
Materials		6.8
Telecommunication Services		2.4
Utilities		2.6
Total		100.0%

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

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

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

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

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND continued SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$243,014	(1)		$ –			$–		$243,014
Convertible Preferred Stocks
Auto Manufacturers		3,510			–			–		3,510
Banks		2,997			–			–		2,997
Computers		4,266			–			–		4,266
Iron/Steel		–			1,549			–		1,549
Oil & Gas		–			4,247			–		4,247
Convertible Bonds		–			103,494	(1)		–		103,494
Investment Companies		1,946			–			–		1,946
Total Investments		$255,733			$109,290			$–		$365,023

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

EQUITY FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 92.5%
Australia – 2.8%
BHP Billiton Ltd.		66,760		$2,227
Woodside Petroleum Ltd.		60,876		2,177
WorleyParsons Ltd.		132,576		3,010
				7,414
Belgium – 2.0%
Anheuser-Busch InBev N.V.		52,384		5,207
Brazil – 3.0%
Petroleo Brasileiro S.A. ADR *		231,603		3,587
Vale S.A. ADR		277,884		4,338
				7,925
China – 1.7%
Bank of China Ltd., Class H		9,935,420		4,541
Denmark – 0.9%
Novo Nordisk A/S, Class B		14,651		2,484
France – 14.8%
BNP Paribas S.A.		59,880		4,053
Bouygues S.A.		127,801		4,666
Casino Guichard Perrachon S.A.		32,759		3,378
Danone S.A.		51,340		3,865
European Aeronautic Defence and Space Co. N.V.		44,946		2,865
GDF Suez		153,920		3,869
LVMH Moet Hennessy Louis Vuitton S.A.		24,287		4,786
Societe Generale S.A.		99,829		4,979
Total S.A.		45,087		2,620
Wendel S.A.		29,649		4,020
				39,101
Germany – 13.5%
Allianz S.E. (Registered)		26,558		4,175
Bayer A.G. (Registered)		30,958		3,651
Deutsche Bank A.G. (Registered)		72,420		3,325
GEA Group A.G.		99,620		4,090
Infineon Technologies A.G.		466,210		4,664
Rheinmetall A.G.		75,684		4,352
SAP A.G.		83,083		6,141
Siemens A.G. (Registered)		45,382		5,471
				35,869
Hong Kong – 0.8%
AIA Group Ltd.		421,550		1,984
Italy – 1.0%
Prysmian S.p.A.		111,631		2,732

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 92.5% – continued
Japan – 9.3%
Kawasaki Heavy Industries Ltd.		916,450		$3,989
KDDI Corp.		74,625		3,841
Kubota Corp.		241,450		3,507
Mitsubishi UFJ Financial Group, Inc.		968,763		6,214
Mitsui & Co. Ltd.		193,850		2,824
Tokio Marine Holdings, Inc.		129,725		4,256
				24,631
Netherlands – 1.5%
Royal Dutch Shell PLC, Class A		3,220		106
Royal Dutch Shell PLC, Class B		113,530		3,924
				4,030
Norway – 0.6%
TGS Nopec Geophysical Co. ASA		49,555		1,461
Singapore – 1.4%
DBS Group Holdings Ltd.		278,829		3,652
South Korea – 3.1%
Samsung Electronics Co. Ltd.		3,880		4,913
SK Telecom Co. Ltd. ADR		144,189		3,273
				8,186
Spain – 1.4%
Banco Santander S.A.		442,749		3,630
Sweden – 4.0%
Autoliv, Inc.		37,977		3,319
Husqvarna AB, Class B		550,356		3,574
Telefonaktiebolaget LM Ericsson, Class B		278,571		3,710
				10,603
Switzerland – 9.4%
ABB Ltd. (Registered) *		59,516		1,406
Aryzta A.G. *		62,427		4,173
Credit Suisse Group A.G. (Registered) *		107,974		3,309
Givaudan S.A. (Registered) *		2,258		3,303
Novartis A.G. (Registered)		79,183		6,086
Roche Holding A.G. (Genusschein)		24,911		6,720
				24,997
United Kingdom – 16.4%
Barclays PLC		1,428,012		6,144
BP PLC		594,671		4,172
Compass Group PLC		192,095		2,641
G4S PLC		546,722		2,251
GlaxoSmithKline PLC		167,129		4,200
Prudential PLC		294,639		5,493

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 92.5% – continued
United Kingdom – 16.4% – continued
Rolls-Royce Holdings PLC *		122,047		$2,200
Standard Chartered PLC		176,604		4,236
Vodafone Group PLC		1,906,296		6,722
WPP PLC		264,068		5,436
				43,495
United States – 4.9%
Carnival Corp.		101,552		3,315
Halliburton Co.		113,783		5,479
Schlumberger Ltd.		47,878		4,230
				13,024
Total Common Stocks (1)
(Cost $183,123)				244,966
PREFERRED STOCKS – 4.3%
Brazil – 2.4%
Itau Unibanco Holding S.A. ADR		463,211		6,541
Germany – 1.9%
Volkswagen A.G.		21,021		4,955
Total Preferred Stocks (1)
(Cost $11,286)				11,496
INVESTMENT COMPANIES – 2.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (2)(3)		7,417,178		7,417
Total Investment Companies
(Cost $7,417)				7,417
Total Investments – 99.6%
(Cost $201,826)				263,879
Other Assets less Liabilities – 0.4%				1,086
NET ASSETS – 100.0%				$264,965

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $5,125,000 with net purchases of approximately $2,292,000 during the six months ended September 30, 2013.

(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 September 30, 2013, the industry sectors for the International Equity Fund were:

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Consumer Discretionary		10.9%
Consumer Staples		6.5
Energy		12.0
Financials		27.5
Health Care		9.0
Industrials		15.7
Information Technology		7.6
Materials		3.8
Telecommunication Services		5.4
Utilities		1.6
Total		100.0%

At September 30, 2013, the International Equity Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
Euro		35.7%
British Pound		18.5
United States Dollar		13.3
Swiss Franc		9.7
Japanese Yen		9.6
All other currencies less than 5%		13.2
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 the portfolio on September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

See Notes to the Financial Statements.

EQUITY FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$6,633		$16,437		$–		$23,070
Consumer Staples		–		16,623		–		16,623
Energy		13,297		17,471		–		30,768
Financials		–		64,010		–		64,010
Health Care		–		23,141		–		23,141
Industrials		–		40,353		–		40,353
Information Technology		–		19,428		–		19,428
Materials		4,338		5,530		–		9,868
Telecommunication Services		3,273		10,563		–		13,836
Utilities		–		3,869		–		3,869
Preferred Stocks
Consumer Discretionary		–		4,955		–		4,955
Financials		6,541		–		–		6,541
Investment Companies		7,417		–		–		7,417
Total Investments		$41,499		$222,380		$–		$263,879

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Financials		$10,470	Valuations at last trade price with foreign fair value adjustments
Industrials		10,321	Valuations at last trade price with foreign fair value adjustments
Information Technology		4,913	Valuations at last trade price with foreign fair value adjustments
Telecommunication Services		3,841	Valuations at last trade price with foreign fair value adjustments
Total		$29,545

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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP EQUITY FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.0%
Aerospace/Defense – 1.1%
Boeing (The) Co.		13,091		$1,538
Agriculture – 2.4%
Philip Morris International, Inc.		39,703		3,438
Apparel – 1.3%
VF Corp.		9,448		1,881
Auto Manufacturers – 1.5%
General Motors Co. *		60,689		2,183
Banks – 9.4%
BB&T Corp.		68,499		2,312
Citigroup, Inc.		38,361		1,861
JPMorgan Chase & Co.		104,857		5,420
Wells Fargo & Co.		92,179		3,809
				13,402
Biotechnology – 4.1%
Amgen, Inc.		18,302		2,049
Celgene Corp. *		11,643		1,792
Gilead Sciences, Inc. *		31,535		1,982
				5,823
Chemicals – 1.6%
Monsanto Co.		22,004		2,296
Computers – 7.6%
Apple, Inc.		13,148		6,268
EMC Corp.		120,890		3,090
Teradata Corp. *		27,387		1,519
				10,877
Cosmetics/Personal Care – 1.0%
Procter & Gamble (The) Co.		18,532		1,401
Diversified Financial Services – 1.2%
IntercontinentalExchange, Inc. *		9,508		1,725
Electric – 2.7%
Exelon Corp.		66,119		1,960
Southern (The) Co.		45,119		1,858
				3,818
Electrical Components & Equipment – 1.5%
Emerson Electric Co.		33,493		2,167
Electronics – 1.1%
Honeywell International, Inc.		18,379		1,526
Food – 1.0%
Mondelez International, Inc., Class A		44,559		1,400

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.0% – continued
Healthcare - Products – 3.1%
CR Bard, Inc.		13,846		$1,595
Hologic, Inc. *		71,657		1,480
St. Jude Medical, Inc.		26,315		1,411
				4,486
Healthcare - Services – 1.0%
HCA Holdings, Inc.		34,844		1,489
Household Products/Wares – 1.1%
Church & Dwight Co., Inc.		25,524		1,533
Insurance – 4.4%
American International Group, Inc.		37,620		1,829
CNO Financial Group, Inc.		116,105		1,672
MetLife, Inc.		58,632		2,753
				6,254
Internet – 1.4%
Google, Inc., Class A *		2,241		1,963
Leisure Time – 1.0%
Carnival Corp.		46,536		1,519
Media – 3.3%
Comcast Corp., Class A		40,466		1,827
Time Warner Cable, Inc.		7,949		887
Walt Disney (The) Co.		30,248		1,951
				4,665
Metal Fabrication/Hardware – 1.4%
Precision Castparts Corp.		9,017		2,049
Mining – 0.9%
BHP Billiton Ltd. ADR		19,363		1,288
Miscellaneous Manufacturing – 4.0%
Danaher Corp.		25,268		1,751
General Electric Co.		169,107		4,040
				5,791
Oil & Gas – 7.4%
BP PLC ADR		40,458		1,700
Chevron Corp.		23,811		2,893
Exxon Mobil Corp.		43,032		3,703
Noble Corp.		60,728		2,294
				10,590
Oil & Gas Services – 3.3%
National Oilwell Varco, Inc.		27,996		2,187
Schlumberger Ltd.		28,969		2,559
				4,746

See Notes to the Financial Statements.

EQUITY FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.0% – continued
Pharmaceuticals – 8.4%
Allergan, Inc.		23,716		$2,145
Express Scripts Holding Co. *		46,846		2,894
Jazz Pharmaceuticals PLC *		16,661		1,532
Merck & Co., Inc.		39,812		1,896
Pfizer, Inc.		66,632		1,913
Sanofi ADR		31,779		1,609
				11,989
Real Estate Investment Trusts – 1.1%
American Tower Corp.		20,829		1,544
Retail – 9.8%
CVS Caremark Corp.		47,862		2,716
Dick’s Sporting Goods, Inc.		38,237		2,041
McDonald’s Corp.		22,579		2,172
Starbucks Corp.		36,667		2,822
Target Corp.		22,373		1,432
TJX Cos., Inc.		50,826		2,866
				14,049
Semiconductors – 4.6%
Intel Corp.		66,189		1,517
NXP Semiconductor N.V. *		60,888		2,265
QUALCOMM, Inc.		42,603		2,870
				6,652
Software – 2.0%
Citrix Systems, Inc. *		16,762		1,184
Oracle Corp.		48,905		1,622
				2,806
Telecommunications – 2.3%
Cisco Systems, Inc.		138,780		3,250
Total Common Stocks
(Cost $108,396)				140,138
PREFERRED STOCKS – 1 .0%
Banks – 1.0%
Itau Unibanco Holding S.A. ADR		101,319		1,431
Total Preferred Stocks
(Cost $1,354)				1,431

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 0.7%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		926,131		$926
Total Investment Companies
(Cost $926)				926
Total Investments – 99.7%
(Cost $110,676)				142,495
Other Assets less Liabilities – 0.3%				434
NET ASSETS – 100.0%				$142,929

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $1,310,000 with net sales of approximately $384,000 during the six months ended September 30, 2013.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the Large Cap Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		15.3%
Consumer Staples		7.4
Energy		10.8
Financials		17.2
Health Care		16.8
Industrials		9.2
Information Technology		18.1
Materials		2.5
Utilities		2.7
Total		100.0%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP EQUITY FUND continued SEPTEMBER 30, 2013 (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. The following table summarize the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$140,138	(1)		$–		$–		$140,138
Preferred Stocks		1,431	(1)		–		–		1,431
Investment Companies		926			–		–		926
Total Investments		$142,495			$–		$–		$142,495

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

EQUITY FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

LARGE CAP GROWTH FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.5%
Aerospace/Defense – 1.7%
Boeing (The) Co.		24,066		$2,828
Apparel – 2.6%
Michael Kors Holdings Ltd. *		22,881		1,705
NIKE, Inc., Class B		37,907		2,754
				4,459
Beverages – 2.1%
PepsiCo, Inc.		44,023		3,500
Biotechnology – 9.1%
Alexion Pharmaceuticals, Inc. *		25,064		2,911
Biogen Idec, Inc. *		14,247		3,430
Celgene Corp. *		35,195		5,418
Gilead Sciences, Inc. *		58,382		3,669
				15,428
Chemicals – 3.0%
E.I. du Pont de Nemours & Co.		35,576		2,083
Monsanto Co.		28,837		3,010
				5,093
Commercial Services – 3.0%
Mastercard, Inc., Class A		7,615		5,123
Computers – 5.9%
Apple, Inc.		16,864		8,040
EMC Corp.		42,078		1,076
Teradata Corp. *		15,248		845
				9,961
Cosmetics/Personal Care – 1.3%
Estee Lauder (The) Cos., Inc., Class A		31,782		2,222
Distribution/Wholesale – 1.1%
WW Grainger, Inc.		7,037		1,842
Diversified Financial Services – 3.4%
American Express Co.		25,160		1,900
IntercontinentalExchange, Inc. *		11,163		2,025
T Rowe Price Group, Inc.		25,460		1,832
				5,757
Electronics – 1.1%
Trimble Navigation Ltd. *		62,313		1,851
Engineering & Construction – 1.2%
Jacobs Engineering Group, Inc. *		34,768		2,023
Environmental Control – 1.4%
Stericycle, Inc. *		21,286		2,456

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.5% – continued
Food – 1.5%
Whole Foods Market, Inc.		44,707		$2,615
Healthcare - Products – 2.5%
Covidien PLC		11,028		672
Edwards Lifesciences Corp. *		12,004		836
Hologic, Inc. *		62,306		1,286
Intuitive Surgical, Inc. *		3,925		1,477
				4,271
Household Products/Wares – 1.0%
Church & Dwight Co., Inc.		28,317		1,700
Internet – 13.1%
Amazon.com, Inc. *		11,859		3,707
eBay, Inc. *		43,299		2,416
Facebook, Inc., Class A *		53,237		2,675
Google, Inc., Class A *		8,921		7,814
LinkedIn Corp., Class A *		7,635		1,879
priceline.com, Inc. *		3,586		3,625
				22,116
Machinery - Diversified – 1.1%
Cummins, Inc.		13,986		1,858
Media – 1.9%
Walt Disney (The) Co.		49,184		3,172
Metal Fabrication/Hardware – 2.8%
Precision Castparts Corp.		13,693		3,112
Valmont Industries, Inc.		11,748		1,632
				4,744
Miscellaneous Manufacturing – 3.0%
Danaher Corp.		37,309		2,586
Eaton Corp. PLC		36,568		2,518
				5,104
Oil & Gas – 1.2%
Noble Energy, Inc.		31,354		2,101
Oil & Gas Services – 3.4%
National Oilwell Varco, Inc.		37,009		2,891
Schlumberger Ltd.		31,899		2,818
				5,709
Pharmaceuticals – 4.7%
AbbVie, Inc.		47,285		2,115
BioMarin Pharmaceutical, Inc.*		25,254		1,824
Bristol-Myers Squibb Co.		32,755		1,516

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP GROWTH FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.5% – continued
Pharmaceuticals – 4.7% – continued
Express Scripts Holding Co. *		40,262		$2,487
				7,942
Real Estate Investment Trusts – 2.8%
American Tower Corp.		30,910		2,291
Digital Realty Trust, Inc.		21,543		1,144
Health Care REIT, Inc.		20,888		1,303
				4,738
Retail – 10.8%
Costco Wholesale Corp.		20,728		2,386
Home Depot (The), Inc.		40,758		3,092
McDonald’s Corp.		28,408		2,733
Panera Bread Co., Class A *		10,257		1,626
Starbucks Corp.		43,179		3,323
Tractor Supply Co.		33,972		2,282
Ulta Salon Cosmetics & Fragrance, Inc. *		9,493		1,134
Yum! Brands, Inc.		22,944		1,638
				18,214
Semiconductors – 4.9%
ARM Holdings PLC ADR		43,945		2,115
KLA-Tencor Corp.		29,116		1,772
NXP Semiconductor N.V. *		31,850		1,185
QUALCOMM, Inc.		47,306		3,186
				8,258
Software – 3.1%
Citrix Systems, Inc. *		22,034		1,556
Red Hat, Inc. *		17,392		802
Salesforce.com, Inc. *		57,347		2,977
				5,335
Telecommunications – 1.8%
Verizon Communications, Inc.		65,958		3,078
Transportation – 2.0%
Kansas City Southern		30,884		3,377
Total Common Stocks
(Cost $114,210)				166,875

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 2.4%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1)(2)		3,972,970		$3,973
Total Investment Companies
(Cost $3,973)				3,973
Total Investments – 100.9%
(Cost $118,183)				170,848
Liabilities less Other Assets – (0.9)%				(1,482	)
NET ASSETS – 100.0%				$169,366

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $6,586,000 with net sales of approximately $2,613,000 during the six months ended September 30, 2013.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the Large Cap Growth Fund were:

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Consumer Discretionary		18.4%
Consumer Staples		7.4
Energy		4.7
Financials		6.3
Health Care		16.6
Industrials		14.5
Information Technology		27.2
Materials		3.1
Telecommunication Sevices		1.8
Total		100.0%

See Notes to the Financial Statements.

EQUITY FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$166,875	(1)		$ –		$ –		$166,875
Investment Companies		3,973			–		–		3,973
Total Investments		$170,848			$ –		$ –		$170,848

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP VALUE FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 91.4%
Advertising – 1.0%
Omnicom Group, Inc.		17,221		$1,092
Aerospace/Defense – 3.3%
Boeing (The) Co.		19,584		2,301
Northrop Grumman Corp.		12,815		1,221
				3,522
Agriculture – 1.2%
Philip Morris International, Inc.		15,395		1,333
Auto Parts & Equipment – 1.3%
Johnson Controls, Inc.		34,570		1,435
Banks – 12.0%
Bank of New York Mellon (The) Corp.		61,305		1,851
Capital One Financial Corp.		16,150		1,110
Goldman Sachs Group (The), Inc.		19,365		3,064
JPMorgan Chase & Co.		57,070		2,950
PNC Financial Services Group (The), Inc.		16,000		1,159
Wells Fargo & Co.		67,825		2,802
				12,936
Beverages – 1.4%
PepsiCo, Inc.		19,215		1,528
Chemicals – 1.7%
Dow Chemical (The) Co.		48,090		1,847
Computers – 2.4%
EMC Corp.		42,835		1,095
Hewlett-Packard Co.		70,900		1,487
				2,582
Diversified Financial Services – 3.7%
BlackRock, Inc.		7,415		2,006
Invesco Ltd.		61,118		1,950
				3,956
Healthcare - Products – 2.1%
Medtronic, Inc.		42,835		2,281
Healthcare - Services – 1.7%
UnitedHealth Group, Inc.		25,585		1,832
Insurance – 10.2%
Allstate (The) Corp.		51,330		2,595
MetLife, Inc.		64,135		3,011
PartnerRe Ltd.		24,580		2,250
Prudential Financial, Inc.		40,150		3,131
				10,987

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 91.4% – continued
Leisure Time – 2.1%
Carnival Corp.		67,973		$2,219
Mining – 2.1%
Freeport-McMoRan Copper & Gold, Inc.		68,185		2,256
Miscellaneous Manufacturing – 5.8%
3M Co.		9,710		1,159
General Electric Co.		103,170		2,465
Siemens A.G. ADR		22,025		2,654
				6,278
Oil & Gas – 10.3%
BP PLC ADR		53,645		2,255
Chevron Corp.		23,635		2,871
Ensco PLC, Class A		36,385		1,956
Exxon Mobil Corp.		29,995		2,581
Occidental Petroleum Corp.		15,105		1,413
				11,076
Oil & Gas Services – 4.4%
Baker Hughes, Inc.		50,365		2,473
Schlumberger Ltd.		25,930		2,291
				4,764
Pharmaceuticals – 7.5%
Abbott Laboratories		22,845		758
Johnson & Johnson		29,195		2,531
Merck & Co., Inc.		41,535		1,978
Pfizer, Inc.		100,155		2,875
				8,142
Retail – 4.5%
Coach, Inc.		36,015		1,964
PetSmart, Inc.		15,097		1,151
Target Corp.		27,735		1,775
				4,890
Savings & Loans – 2.0%
New York Community Bancorp, Inc.		139,545		2,108
Semiconductors – 2.4%
Intel Corp.		113,745		2,607
Software – 2.1%
Microsoft Corp.		67,315		2,242
Telecommunications – 6.2%
AT&T, Inc.		46,520		1,573
Cisco Systems, Inc.		104,104		2,438

See Notes to the Financial Statements.

EQUITY FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 91.4% – continued
Telecommunications – 6.2% – continued
Vodafone Group PLC ADR		75,520		$2,657
				6,668
Total Common Stocks
(Cost $72,903)				98,581
PREFERRED STOCKS – 1 .7%
Banks – 1.7%
Itau Unibanco Holding S.A. ADR		125,640		1,774
Total Preferred Stocks
(Cost $1,679)				1,774
INVESTMENT COMPANIES – 7.0%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		7,558,079		7,558
Total Investment Companies
(Cost $7,558)				7,558
Total Investments – 100.1%
(Cost $82,140)				107,913
Liabilities less Other Assets – (0.1)%				(80	)
NET ASSETS – 100.0%				$107,833

(1) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $990,000 with net purchase of approximately $6,568,000 during the six months ended September 30, 2013.

(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.

At September 30, 2013, the industry sectors for the Large Cap Value Fund were :

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		9.6%
Consumer Staples		2.9
Energy		15.8
Financials		31.6
Health Care		12.2
Industrials		9.8
Information Technology		9.8
Materials		4.1
Telecommunication Services		4.2
Total		100.0%

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$98,581	(1)		$ –		$ –		$98,581
Preferred Stocks		1,774			–		–		1,774
Investment Companies		7,558			–		–		7,558
Total Investments		$107,913			$ –		$ –		$107,913

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8%
Advertising – 0.0%
Harte-Hanks, Inc.		5,784		$51
Marchex, Inc., Class B		2,671		19
				70
Aerospace/Defense – 1.6%
AAR Corp.		3,286		90
Aerovironment, Inc.  *		1,013		23
Alliant Techsystems, Inc.		3,600		351
Astronics Corp. *		2,544		127
Astronics Corp., Class B *		601		30
Breeze-Eastern Corp. *		5,455		54
Cubic Corp.		3,353		180
Curtiss-Wright Corp.		4,543		213
Ducommun, Inc. *		2,479		71
Esterline Technologies Corp. *		2,670		213
GenCorp, Inc. *		10,600		170
HEICO Corp.		5,712		387
Kaman Corp.		3,466		131
Kratos Defense & Security Solutions, Inc. *		357		3
LMI Aerospace, Inc. *		1,314		18
Moog, Inc., Class A *		5,036		295
Orbital Sciences Corp. *		8,853		188
SIFCO Industries, Inc.		422		8
Teledyne Technologies, Inc. *		4,467		379
				2,931
Agriculture – 0.3%
Adecoagro S.A. *		725		5
Alico, Inc.		947		39
Alliance One International, Inc. *		8,393		24
Andersons (The), Inc.		2,743		192
Griffin Land & Nurseries, Inc.		153		5
Tejon Ranch Co. *		2,358		73
Universal Corp.		2,927		149
Vector Group Ltd.		6,380		103
				590
Airlines – 0.4%
Allegiant Travel Co.		2,368		249
Hawaiian Holdings, Inc. *		1,483		11
JetBlue Airways Corp. *		20,005		133
Republic Airways Holdings, Inc. *		1,218		15
SkyWest, Inc.		6,499		94
US Airways Group, Inc. *		15,328		291
				793

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Apparel – 1.2%
Cherokee, Inc.		354		$5
Columbia Sportswear Co.		2,090		126
Crocs, Inc. *		8,902		121
Delta Apparel, Inc. *		1,098		18
G-III Apparel Group Ltd. *		3,790		207
Iconix Brand Group, Inc. *		7,964		265
Jones Group (The), Inc.		8,951		134
Maidenform Brands, Inc. *		3,854		91
Oxford Industries, Inc.		2,359		160
Perry Ellis International, Inc.		2,102		40
Quiksilver, Inc. *		17,001		119
Skechers U.S.A., Inc., Class A *		3,370		105
Steven Madden Ltd. *		5,584		301
Superior Uniform Group, Inc.		3,036		38
Unifi, Inc. *		2,042		48
Weyco Group, Inc.		865		24
Wolverine World Wide, Inc.		6,327		368
				2,170
Auto Manufacturers – 0.0%
Wabash National Corp. *		6,518		76
Auto Parts & Equipment – 0.9%
American Axle & Manufacturing Holdings, Inc. *		2,364		47
Cooper Tire & Rubber Co.		6,955		214
Dana Holding Corp.		16,530		377
Dorman Products, Inc.		3,508		174
Fuel Systems Solutions, Inc. *		4,193		82
Gentherm, Inc. *		634		12
Miller Industries, Inc.		2,868		49
Modine Manufacturing Co. *		6,014		88
Remy International, Inc.		4,300		87
Spartan Motors, Inc.		1,067		6
Standard Motor Products, Inc.		3,484		112
Strattec Security Corp.		100		4
Superior Industries International, Inc.		3,878		69
Tenneco, Inc. *		5,620		284
Titan International, Inc.		6,871		101
				1,706
Banks – 6.4%
1st Source Corp.		4,611		124
Access National Corp.		5,400		77
Alliance Bancorp, Inc. of Pennsylvania		367		5
American National Bankshares, Inc.		2,219		51

See Notes to the Financial Statements.

EQUITY FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Banks – 6.4% – continued
Ameris Bancorp *		727		$13
Ames National Corp.		2,091		48
Arrow Financial Corp.		2,589		66
Bancfirst Corp.		900		49
Banco Latinoamericano de Comercio Exterior S.A., Class E		2,934		73
Bancorp (The), Inc. *		1,080		19
BancorpSouth, Inc.		8,536		170
Bank of Kentucky Financial Corp.		925		25
Bank of Marin Bancorp		330		14
Bank of South Carolina Corp.		100		1
Bank of the Ozarks, Inc.		3,261		157
Banner Corp.		2,093		80
Bar Harbor Bankshares		1,551		57
BBCN Bancorp, Inc.		10,641		146
BCB Bancorp, Inc.		465		5
Berkshire Bancorp, Inc.		121		1
Boston Private Financial Holdings, Inc.		2,108		23
Bryn Mawr Bank Corp.		4,124		111
Camden National Corp.		732		30
Capital City Bank Group, Inc. *		3,280		39
CapitalSource, Inc.		11,600		138
Cardinal Financial Corp.		902		15
Cass Information Systems, Inc.		2,083		111
Cathay General Bancorp		8,685		203
Center Bancorp, Inc.		4,617		66
Centerstate Banks, Inc.		471		5
Century Bancorp, Inc., Class A		2,120		71
Chemical Financial Corp.		3,782		106
Citizens & Northern Corp.		588		12
City Holding Co.		2,220		96
CoBiz Financial, Inc.		1,244		12
Columbia Banking System, Inc.		5,882		145
Commercial National Financial Corp.		121		3
Community Bank System, Inc.		4,436		151
Community Trust Bancorp, Inc.		2,057		84
CVB Financial Corp.		11,072		150
Eagle Bancorp, Inc. *		3,588		102
Enterprise Bancorp, Inc.		557		11
Enterprise Financial Services Corp.		603		10
Farmers Capital Bank Corp. *		563		12
Fidelity Southern Corp.		1,374		21
Financial Institutions, Inc.		2,994		61
First Bancorp		1,178		17
First Bancorp, Inc.		2,547		43

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Banks – 6.4% – continued
First Busey Corp.		12,652		$66
First Citizens Bancorporation, Inc.		8		5
First Citizens BancShares, Inc., Class A		672		138
First Community Bancshares, Inc.		3,726		61
First Financial Bancorp		5,896		89
First Financial Bankshares, Inc.		3,952		232
First Financial Corp.		2,363		75
First Financial Holdings, Inc.		5,150		284
First Merchants Corp.		921		16
First Midwest Bancorp, Inc.		8,290		125
First of Long Island (The) Corp.		2,138		83
First South Bancorp, Inc. *		322		2
FirstMerit Corp.		10,211		222
FNB Corp.		15,475		188
German American Bancorp, Inc.		311		8
Glacier Bancorp, Inc.		6,517		161
Great Southern Bancorp, Inc.		4,751		134
Guaranty Bancorp		677		9
Hancock Holding Co.		6,251		196
Hanmi Financial Corp.		3,851		64
Hawthorn Bancshares, Inc.		435		6
Heartland Financial USA, Inc.		563		16
Heritage Financial Corp.		457		7
Home BancShares, Inc.		2,744		83
Hudson Valley Holding Corp.		186		3
Iberiabank Corp.		4,111		213
Independent Bank Corp.		2,925		104
International Bancshares Corp.		7,541		163
Jeffersonville Bancorp		114		1
Lakeland Bancorp, Inc.		6,090		69
Lakeland Financial Corp.		880		29
Landmark Bancorp, Inc.		4,000		79
MainSource Financial Group, Inc.		904		14
MB Financial, Inc.		5,037		142
Merchants Bancshares, Inc.		2,361		68
Metro Bancorp, Inc. *		714		15
Middleburg Financial Corp.		1,990		38
MidSouth Bancorp, Inc.		598		9
MidWestOne Financial Group, Inc.		425		11
National Bankshares, Inc.		1,600		57
National Penn Bancshares, Inc.		12,272		123
NBT Bancorp, Inc.		4,197		96
Northrim BanCorp, Inc.		2,551		61
Norwood Financial Corp.		1,851		54

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Banks – 6.4% – continued
OFG Bancorp		6,171		$100
Ohio Valley Banc Corp.		658		13
Old National Bancorp		11,083		157
Orrstown Financial Services, Inc. *		1,358		24
Pacific Continental Corp.		614		8
PacWest Bancorp		3,945		136
Park National Corp.		1,651		131
Peapack Gladstone Financial Corp.		471		9
Peoples Bancorp, Inc.		732		15
Peoples Financial Corp.		221		3
Pinnacle Financial Partners, Inc. *		3,726		111
Popular, Inc. *		8,837		232
Premier Financial Bancorp, Inc.		651		8
PrivateBancorp, Inc.		6,612		142
Prosperity Bancshares, Inc.		5,959		369
QCR Holdings, Inc.		6,316		100
Renasant Corp.		2,063		56
Republic Bancorp, Inc., Class A		1,564		43
Republic First Bancorp, Inc. *		1,090		3
S&T Bancorp, Inc.		3,885		94
S.Y. Bancorp, Inc.		2,309		65
Sandy Spring Bancorp, Inc.		3,270		76
Seacoast Banking Corp. of Florida *		3,425		7
Shore Bancshares, Inc. *		632		6
Sierra Bancorp		632		10
Simmons First National Corp., Class A		3,728		116
Southern National Bancorp of Virginia, Inc.		512		5
Southside Bancshares, Inc.		2,556		69
Southwest Bancorp, Inc. *		627		9
StellarOne Corp.		1,036		23
Sterling Bancorp		642		9
Sterling Financial Corp.		4,736		136
Suffolk Bancorp *		565		10
Sun Bancorp, Inc. *		1,350		5
Susquehanna Bancshares, Inc.		16,043		201
Synovus Financial Corp.		89,316		295
Texas Capital Bancshares, Inc. *		3,904		179
Tompkins Financial Corp.		2,025		94
TowneBank		1,147		17
Trico Bancshares		2,413		55
TrustCo Bank Corp. NY		7,386		44
Trustmark Corp.		5,223		134
UMB Financial Corp.		3,986		217
Umpqua Holdings Corp.		11,721		190

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Banks – 6.4% – continued
Union First Market Bankshares Corp.		732		$17
United Bancorp, Inc.		465		3
United Bankshares, Inc.		4,601		133
United Community Bancorp		471		5
United Community Banks, Inc. *		4,744		71
Univest Corp. of Pennsylvania		454		9
Valley National Bancorp		496		5
ViewPoint Financial Group, Inc.		4,170		86
Washington Banking Co.		457		6
Washington Trust Bancorp, Inc.		2,952		93
Webster Financial Corp.		7,984		204
WesBanco, Inc.		2,078		62
West Bancorporation, Inc.		795		11
Westamerica Bancorporation		2,791		139
Western Alliance Bancorp *		10,643		201
Wilshire Bancorp, Inc.		493		4
Wintrust Financial Corp.		4,058		167
Yadkin Financial Corp. *		525		9
				11,599
Beverages – 0.3%
Boston Beer (The) Co., Inc., Class A *		1,132		276
Coca-Cola Bottling Co. Consolidated		1,445		91
Craft Brew Alliance, Inc. *		6,145		83
Farmer Bros. Co. *		5,589		84
National Beverage Corp.		2,406		43
				577
Biotechnology – 2.5%
Acorda Therapeutics, Inc. *		5,315		182
Aegerion Pharmaceuticals, Inc. *		4,217		361
Arena Pharmaceuticals, Inc. *		4,157		22
Astex Pharmaceuticals, Inc. *		1,490		13
Cambrex Corp. *		17,832		235
Celldex Therapeutics, Inc. *		6,123		217
Charles River Laboratories International, Inc. *		5,699		264
Cubist Pharmaceuticals, Inc. *		6,470		411
Curis, Inc. *		1,668		7
Cytokinetics, Inc. *		386		3
Emergent Biosolutions, Inc. *		6,316		120
Exact Sciences Corp. *		5,000		59
Exelixis, Inc. *		11,597		68
GTx, Inc. *		1,380		3
Harvard Bioscience, Inc. *		1,797		9
ImmunoGen, Inc. *		4,442		76

See Notes to the Financial Statements.

EQUITY FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Biotechnology – 2.5% – continued
Immunomedics, Inc. *		14,372		$89
Incyte Corp. Ltd. *		8,290		316
Insmed, Inc. *		6,129		96
Intercept Pharmaceuticals, Inc. *		2,100		145
InterMune, Inc. *		10,930		168
KYTHERA Biopharmaceuticals, Inc. *		3,200		146
Lexicon Pharmaceuticals, Inc. *		1,547		4
Ligand Pharmaceuticals, Inc., Class B *		5,323		230
Maxygen, Inc.(1)		2,429		–
Medicines (The) Co. *		6,766		227
Momenta Pharmaceuticals, Inc. *		9,913		143
Myriad Genetics, Inc. *		1,931		45
Novavax, Inc. *		2,370		8
NPS Pharmaceuticals, Inc. *		11,646		371
PDL BioPharma, Inc.		17,339		138
Protalix BioTherapeutics, Inc. *		11,545		52
Puma Biotechnology, Inc. *		2,900		156
Repligen Corp. *		3,318		37
RTI Surgical, Inc. *		3,308		12
Sangamo Biosciences, Inc. *		11,303		118
Spectrum Pharmaceuticals, Inc.		6,505		55
Vical, Inc. *		1,680		2
				4,608
Building Materials – 1.1%
AAON, Inc.		4,824		128
Apogee Enterprises, Inc.		5,862		174
Builders FirstSource, Inc. *		1,671		10
Comfort Systems USA, Inc.		5,776		97
Drew Industries, Inc.		5,285		241
Gibraltar Industries, Inc. *		1,248		18
Griffon Corp.		5,614		70
Headwaters, Inc. *		10,503		94
Louisiana-Pacific Corp. *		15,895		280
LSI Industries, Inc.		928		8
NCI Building Systems, Inc. *		171		2
Nortek, Inc. *		100		7
Quanex Building Products Corp.		3,404		64
Simpson Manufacturing Co., Inc.		4,003		130
Texas Industries, Inc. *		3,495		232
Trex Co., Inc. *		2,931		145
Universal Forest Products, Inc.		2,652		112
USG Corp. *		5,872		168
				1,980

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Chemicals – 2.0%
A. Schulman, Inc.		4,305		$127
Aceto Corp.		12,563		196
American Vanguard Corp.		3,228		87
Axiall Corp.		3,937		149
Balchem Corp.		3,313		171
Chemtura Corp. *		10,654		245
Ferro Corp. *		13,274		121
H.B. Fuller Co.		5,793		262
Hawkins, Inc.		2,127		80
Innophos Holdings, Inc.		2,974		157
Innospec, Inc.		4,860		227
Intrepid Potash, Inc.		6,000		94
KMG Chemicals, Inc.		4,190		92
Kraton Performance Polymers, Inc. *		3,510		69
Landec Corp. *		2,415		30
Minerals Technologies, Inc.		3,972		196
Oil-Dri Corp. of America		185		6
Olin Corp.		10,192		235
OM Group, Inc. *		4,239		143
OMNOVA Solutions, Inc. *		11,226		96
PolyOne Corp.		792		24
Quaker Chemical Corp.		2,957		216
Sensient Technologies Corp.		5,549		266
Stepan Co.		3,384		195
Zep, Inc.		3,113		51
Zoltek Cos., Inc. *		1,955		33
				3,568
Coal – 0.2%
Alpha Natural Resources, Inc. *		12,800		76
Arch Coal, Inc.		23,400		96
Cloud Peak Energy, Inc. *		5,872		86
SunCoke Energy, Inc. *		7,900		134
Westmoreland Coal Co. *		489		7
				399
Commercial Services – 6.5%
Aaron’s, Inc.		1,012		28
ABM Industries, Inc.		7,442		198
Acacia Research Corp.		6,528		151
Advisory Board (The) Co. *		4,678		278
Albany Molecular Research, Inc. *		8,687		112
American Public Education, Inc. *		2,652		100
AMN Healthcare Services, Inc. *		4,800		66
ARC Document Solutions, Inc. *		2,439		11

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Commercial Services – 6.5% – continued
Ascent Capital Group, Inc., Class A *		2,090		$169
Barrett Business Services, Inc.		732		49
Blackstone Mortgage Trust, Inc., Class A		279		7
Bridgepoint Education, Inc. *		2,383		43
Brink’s (The) Co.		6,728		190
Capella Education Co. *		2,600		147
Cardtronics, Inc. *		4,251		158
CBIZ, Inc. *		7,530		56
CDI Corp.		1,159		18
Chemed Corp.		3,352		240
Collectors Universe, Inc.		8,529		125
Consolidated Graphics, Inc. *		1,555		87
Convergys Corp.		12,453		234
CoreLogic, Inc. *		9,914		268
Corporate Executive Board (The) Co.		4,399		320
Corvel Corp. *		4,288		159
CoStar Group, Inc. *		3,318		557
CRA International, Inc. *		2,436		45
Cross Country Healthcare, Inc. *		2,093		13
Deluxe Corp.		4,859		202
DeVry, Inc.		4,800		147
Electro Rent Corp.		5,078		92
Ennis, Inc.		4,021		73
Euronet Worldwide, Inc. *		6,239		248
ExamWorks Group, Inc. *		6,705		174
ExlService Holdings, Inc. *		3,447		98
Forrester Research, Inc.		3,670		135
Franklin Covey Co. *		776		14
FTI Consulting, Inc. *		4,135		156
Global Cash Access Holdings, Inc. *		4,013		31
Grand Canyon Education, Inc. *		4,700		189
Great Lakes Dredge & Dock Corp.		3,118		23
H&E Equipment Services, Inc. *		1,885		50
Hackett Group (The), Inc.		1,985		14
Healthcare Services Group, Inc.		7,400		191
Heartland Payment Systems, Inc.		4,197		167
HMS Holdings Corp. *		10,342		223
Huron Consulting Group, Inc. *		2,452		129
ICF International, Inc. *		1,186		42
Information Services Group, Inc. *		2,379		10
Insperity, Inc.		3,436		129
Intersections, Inc.		938		8
K12, Inc. *		5,545		171
Kelly Services, Inc., Class A		4,273		83

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Commercial Services – 6.5% – continued
Kforce, Inc.		4,730		$84
Korn/Ferry International *		4,494		96
Landauer, Inc.		2,743		141
Live Nation Entertainment, Inc. *		12,684		235
Mac-Gray Corp.		1,538		22
Matthews International Corp., Class A		3,790		144
MAXIMUS, Inc.		11,998		540
McGrath RentCorp		3,559		127
Medifast, Inc. *		454		12
MoneyGram International, Inc. *		234		5
Monro Muffler Brake, Inc.		3,496		163
Multi-Color Corp.		2,573		87
National Research Corp., Class A *		6,390		120
National Research Corp., Class B		1,115		33
Navigant Consulting, Inc. *		5,940		92
Odyssey Marine Exploration, Inc. *		2,982		9
On Assignment, Inc. *		6,417		212
PAREXEL International Corp. *		6,846		344
PDI, Inc. *		16,416		79
Pendrell Corp. *		33,151		64
PHH Corp. *		5,799		138
Providence Service (The) Corp. *		4,681		134
QC Holdings, Inc.		1,059		3
Rent-A-Center, Inc.		5,912		225
Resources Connection, Inc.		5,335		72
Sotheby’s		6,283		309
Standard Parking Corp. *		3,892		105
StarTek, Inc. *		780		5
Steiner Leisure Ltd. *		1,198		70
Stewart Enterprises, Inc., Class A		9,250		122
Strayer Education, Inc.		1,300		54
Team, Inc. *		2,911		116
TeleTech Holdings, Inc. *		5,926		149
Tree.com, Inc.		1,500		39
TrueBlue, Inc. *		4,035		97
Valassis Communications, Inc.		5,023		145
Viad Corp.		3,723		93
VistaPrint N.V. *		3,881		219
Volt Information Sciences, Inc. *		2,231		17
WEX, Inc. *		5,462		479
				11,828
Computers – 2.0%
Agilysys, Inc. *		7,402		88
Astro-Med, Inc.		563		6

See Notes to the Financial Statements.

EQUITY FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Computers – 2.0% – continued
CACI International, Inc., Class A *		3,189		$220
CIBER, Inc. *		5,213		17
Computer Services, Inc.		2,024		62
Computer Task Group, Inc.		2,897		47
Cray, Inc. *		3,259		78
Datalink Corp. *		4,559		62
Digimarc Corp.		1,990		40
Electronics For Imaging, Inc. *		5,600		177
iGATE Corp. *		4,859		135
Immersion Corp. *		1,674		22
Insight Enterprises, Inc. *		6,105		116
j2 Global, Inc.		6,402		317
Lexmark International, Inc., Class A		7,600		251
LivePerson, Inc. *		6,028		57
Manhattan Associates, Inc. *		3,245		310
Mattersight Corp. *		1,358		5
Mentor Graphics Corp.		9,412		220
MTS Systems Corp.		3,520		227
Netscout Systems, Inc. *		5,486		140
PAR Technology Corp. *		3,219		16
Qumu Corp. *		212		3
Riverbed Technology, Inc. *		906		13
Silicon Graphics International Corp. *		4,651		76
Spansion, Inc., Class A *		3,395		34
Super Micro Computer, Inc. *		4,039		55
Sykes Enterprises, Inc. *		8,564		153
Synaptics, Inc. *		4,108		182
Syntel, Inc.		3,533		283
Transact Technologies, Inc.		651		9
Unisys Corp. *		3,715		94
Virtusa Corp. *		740		21
Vocera Communications, Inc. *		2,100		39
				3,575
Cosmetics/Personal Care – 0.1%
Elizabeth Arden, Inc. *		3,243		120
Inter Parfums, Inc.		4,096		123
Revlon, Inc., Class A *		454		12
				255
Distribution/Wholesale – 1.0%
Beacon Roofing Supply, Inc. *		5,787		213
BlueLinx Holdings, Inc. *		2,812		5
Core-Mark Holding Co., Inc.		1,123		75
Houston Wire & Cable Co.		1,544		21

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Distribution/Wholesale – 1.0% – continued
MWI Veterinary Supply, Inc. *		1,607		$240
Owens & Minor, Inc.		6,797		235
Pool Corp.		5,591		314
Rentrak Corp. *		2,207		72
ScanSource, Inc. *		4,003		139
Titan Machinery, Inc. *		632		10
United Stationers, Inc.		5,964		259
Watsco, Inc.		3,119		294
				1,877
Diversified Financial Services – 2.2%
Aircastle Ltd.		3,704		64
Arlington Asset Investment Corp., Class A		454		11
Atlanticus Holdings Corp. *		2,264		8
BGC Partners, Inc., Class A		1,530		9
Calamos Asset Management, Inc., Class A		1,513		15
California First National Bancorp		1,406		24
Cohen & Steers, Inc.		2,559		90
Credit Acceptance Corp. *		2,642		293
DFC Global Corp. *		4,062		45
Diamond Hill Investment Group, Inc.		877		94
Ellie Mae, Inc. *		3,900		125
Encore Capital Group, Inc. *		3,788		174
Evercore Partners, Inc., Class A		3,235		159
FBR & Co. *		955		26
Federal Agricultural Mortgage Corp., Class C		100		3
Financial Engines, Inc.		3,897		232
GAMCO Investors, Inc., Class A		2,067		157
GFI Group, Inc.		8,594		34
Home Loan Servicing Solutions Ltd.		2,900		64
Interactive Brokers Group, Inc., Class A		6,396		120
INTL. FCStone, Inc. *		3,385		69
Investment Technology Group, Inc. *		7,952		125
Janus Capital Group, Inc.		17,812		152
JMP Group, Inc.		644		4
MarketAxess Holdings, Inc.		3,976		239
MicroFinancial, Inc.		1,682		13
Nelnet, Inc., Class A		5,023		193
NewStar Financial, Inc. *		1,344		25
Outerwall, Inc. *		3,440		172
Piper Jaffray Cos. *		2,191		75
Portfolio Recovery Associates, Inc. *		5,718		343
Pzena Investment Management, Inc., Class A		3,421		23

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Diversified Financial Services – 2.2% – continued
Siebert Financial Corp. *		758		$1
Stifel Financial Corp. *		5,514		227
SWS Group, Inc. *		1,990		11
Virtus Investment Partners, Inc. *		756		123
Walter Investment Management Corp. *		5,108		202
Westwood Holdings Group, Inc.		422		20
World Acceptance Corp. *		2,639		237
				4,001
Electric – 1.7%
ALLETE, Inc.		4,201		203
Avista Corp.		7,671		203
Black Hills Corp.		4,845		242
Cleco Corp.		6,927		311
El Paso Electric Co.		5,461		182
Empire District Electric Co.		4,445		96
IDACORP, Inc.		6,390		309
MGE Energy, Inc.		2,327		127
NorthWestern Corp.		4,003		180
Ormat Technologies, Inc.		1,191		32
Otter Tail Corp.		3,895		108
Pike Electric Corp.		7,274		82
PNM Resources, Inc.		11,190		253
Portland General Electric Co.		9,315		263
UIL Holdings Corp.		5,966		222
Unitil Corp.		2,948		86
UNS Energy Corp.		4,942		230
				3,129
Electrical Components & Equipment – 1.4%
Acuity Brands, Inc.		4,870		448
Advanced Energy Industries, Inc. *		7,710		135
Belden, Inc.		5,983		383
Encore Wire Corp.		1,171		46
EnerSys, Inc.		4,849		294
Espey Manufacturing & Electronics Corp.		3,300		95
Generac Holdings, Inc.		2,297		98
General Cable Corp.		5,686		181
Graham Corp.		2,021		73
Insteel Industries, Inc.		1,500		24
Littelfuse, Inc.		2,408		189
Orion Energy Systems, Inc. *		1,050		4
Powell Industries, Inc. *		2,381		146
PowerSecure International, Inc. *		1,080		17
SL Industries, Inc.		739		18

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Electrical Components & Equipment – 1.4% – continued
SunPower Corp. *		5,856		$153
Ultralife Corp. *		1,821		7
Universal Display Corp. *		4,394		141
				2,452
Electronics – 2.5%
American Science & Engineering, Inc.		1,560		94
Analogic Corp.		2,039		169
Badger Meter, Inc.		2,910		135
Bel Fuse, Inc., Class B		1,214		21
Benchmark Electronics, Inc. *		5,199		119
Brady Corp., Class A		6,672		203
Checkpoint Systems, Inc. *		5,169		86
Coherent, Inc.		2,849		175
CTS Corp.		5,665		89
CyberOptics Corp. *		3,353		21
Electro Scientific Industries, Inc.		4,747		56
ESCO Technologies, Inc.		2,932		97
FARO Technologies, Inc. *		3,744		158
FEI Co.		4,382		385
II-VI, Inc. *		5,071		95
Itron, Inc. *		3,761		161
Measurement Specialties, Inc. *		2,513		136
Mesa Laboratories, Inc.		1,469		99
Methode Electronics, Inc.		6,109		171
MOCON, Inc.		5,420		74
Multi-Fineline Electronix, Inc. *		3,970		64
Newport Corp. *		5,617		88
NVE Corp. *		1,230		63
OSI Systems, Inc. *		2,204		164
Parametric Sound Corp. *		800		10
Park Electrochemical Corp.		3,787		108
Plexus Corp. *		3,945		147
Rofin-Sinar Technologies, Inc. *		4,165		101
Rogers Corp. *		2,800		167
Sanmina Corp. *		10,167		178
Sparton Corp. *		652		17
Stoneridge, Inc. *		803		9
Taser International, Inc. *		3,263		49
Transcat, Inc. *		83		1
TTM Technologies, Inc. *		7,666		75
Viasystems Group, Inc. *		2,843		41
Vishay Intertechnology, Inc. *		14,406		186
Vishay Precision Group, Inc. *		165		2
Watts Water Technologies, Inc., Class A		3,655		206

See Notes to the Financial Statements.

EQUITY FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Electronics – 2.5% – continued
Woodward, Inc.		8,065		$329
Zygo Corp. *		1,058		17
				4,566
Energy - Alternate Sources – 0.2%
Clean Energy Fuels Corp. *		4,072		52
FutureFuel Corp.		2,500		45
Green Plains Renewable Energy, Inc.		3,263		52
REX American Resources Corp. *		4,473		138
				287
Engineering & Construction – 0.9%
Aegion Corp. *		5,615		133
Argan, Inc.		4,982		109
Dycom Industries, Inc. *		5,739		161
EMCOR Group, Inc.		7,535		295
Exponent, Inc.		2,526		181
Granite Construction, Inc.		5,631		172
Integrated Electrical Services, Inc. *		1,238		5
Layne Christensen Co. *		2,803		56
MasTec, Inc. *		6,375		193
Michael Baker Corp.		3,373		136
MYR Group, Inc. *		2,005		49
National Technical Systems, Inc. *		5,675		130
Orion Marine Group, Inc. *		917		10
Sterling Construction Co., Inc. *		354		3
VSE Corp.		1,311		62
				1,695
Entertainment – 1.0%
Carmike Cinemas, Inc. *		805		18
Churchill Downs, Inc.		1,905		165
DreamWorks Animation SKG, Inc., Class A *		7,524		214
International Speedway Corp., Class A		3,955		128
Isle of Capri Casinos, Inc. *		7,782		59
Lakes Entertainment, Inc. *		3,001		12
Marriott Vacations Worldwide Corp. *		3,100		136
Multimedia Games Holding Co., Inc. *		1,338		46
National CineMedia, Inc.		3,895		73
Pinnacle Entertainment, Inc. *		6,870		172
Reading International, Inc., Class A *		923		6
Rick’s Cabaret International, Inc. *		5,233		62
Scientific Games Corp., Class A *		7,048		114
SHFL Entertainment, Inc. *		3,377		78
Six Flags Entertainment Corp.		10,008		338

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Entertainment – 1.0% – continued
Speedway Motorsports, Inc.		1,815		$33
Vail Resorts, Inc.		3,473		241
				1,895
Environmental Control – 0.5%
Calgon Carbon Corp. *		7,213		137
Ceco Environmental Corp.		153		2
Darling International, Inc. *		13,315		282
Heritage-Crystal Clean, Inc. *		465		8
Mine Safety Appliances Co.		3,081		159
Sharps Compliance Corp. *		1,737		5
Tetra Tech, Inc. *		6,487		168
TRC Cos., Inc. *		1,548		12
US Ecology, Inc.		3,713		112
				885
Food – 2.2%
Amcon Distributing Co.		415		33
Arden Group, Inc., Class A		951		124
B&G Foods, Inc.		7,474		258
Boulder Brands, Inc. *		1,210		19
Bridgford Foods Corp.		342		3
Calavo Growers, Inc.		454		14
Cal-Maine Foods, Inc.		2,468		119
Chiquita Brands International, Inc. *		5,210		66
Fresh Del Monte Produce, Inc.		4,035		120
Fresh Market (The), Inc. *		3,029		143
Golden Enterprises, Inc.		424		2
Hain Celestial Group (The), Inc. *		4,572		353
Harris Teeter Supermarkets, Inc.		5,710		281
Ingles Markets, Inc., Class A		3,234		93
J&J Snack Foods Corp.		2,518		203
Lancaster Colony Corp.		2,072		162
Lifeway Foods, Inc.		277		4
Nash Finch Co.		2,652		70
Post Holdings, Inc. *		3,400		137
Sanderson Farms, Inc.		2,338		153
Seaboard Corp.		52		143
Seneca Foods Corp., Class A *		277		8
Snyders-Lance, Inc.		5,160		149
Spartan Stores, Inc.		1,927		42
SUPERVALU, Inc. *		22,945		189
Tootsie Roll Industries, Inc.		4,527		139
TreeHouse Foods, Inc. *		4,903		328
United Natural Foods, Inc. *		5,667		381

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Food – 2.2% – continued
Village Super Market, Inc., Class A		1,164		$44
Weis Markets, Inc.		2,963		145
				3,925
Forest Products & Paper – 0.8%
Boise, Inc.		10,138		128
Clearwater Paper Corp. *		2,674		128
Deltic Timber Corp.		1,432		93
KapStone Paper and Packaging Corp.		4,463		191
Neenah Paper, Inc.		5,250		206
Orchids Paper Products Co.		454		13
PH Glatfelter Co.		7,586		205
Resolute Forest Products, Inc. *		7,741		102
Schweitzer-Mauduit International, Inc.		5,158		312
Wausau Paper Corp.		3,132		41
				1,419
Gas – 0.9%
Chesapeake Utilities Corp.		2,556		134
Delta Natural Gas Co., Inc.		184		4
Laclede Group (The), Inc.		2,487		112
New Jersey Resources Corp.		4,711		208
Northwest Natural Gas Co.		3,623		152
Piedmont Natural Gas Co., Inc.		7,269		239
RGC Resources, Inc.		543		10
South Jersey Industries, Inc.		3,377		198
Southwest Gas Corp.		5,670		283
WGL Holdings, Inc.		6,014		257
				1,597
Hand/Machine Tools – 0.1%
Franklin Electric Co., Inc.		5,486		216
Healthcare - Products – 3.9%
Abaxis, Inc.		2,796		118
ABIOMED, Inc. *		5,927		113
Accuray, Inc. *		538		4
Affymetrix, Inc. *		5,625		35
Alere, Inc. *		8,800		269
Align Technology, Inc. *		7,912		381
Alphatec Holdings, Inc. *		1,344		3
AngioDynamics, Inc. *		7,863		104
ArthroCare Corp. *		4,270		152
AtriCure, Inc. *		1,966		22
Atrion Corp.		508		131
Baxano Surgical, Inc. *		1,786		2
BioTelemetry, Inc. *		1,210		12

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Healthcare - Products – 3.9% – continued
Bovie Medical Corp. *		1,160		$3
Bruker Corp. *		6,913		143
Cantel Medical Corp.		6,956		222
Cardiovascular Systems, Inc. *		4,762		95
Cepheid, Inc. *		8,169		319
Chindex International, Inc. *		4,273		73
CONMED Corp.		3,826		130
CryoLife, Inc.		923		6
Cutera, Inc. *		4,310		38
Cyberonics, Inc. *		3,125		159
Cynosure, Inc., Class A *		6,090		139
Daxor Corp.		522		4
DexCom, Inc. *		2,038		57
Digirad Corp. *		1,644		4
Endologix, Inc. *		3,840		62
Exactech, Inc. *		5,672		114
Female Health (The) Co.		773		8
Genomic Health, Inc. *		2,100		64
Greatbatch, Inc. *		4,190		143
Haemonetics Corp. *		6,984		278
Hanger, Inc. *		4,395		148
Hansen Medical, Inc. *		1,520		3
Hill-Rom Holdings, Inc.		4,800		172
ICU Medical, Inc. *		2,481		169
Insulet Corp. *		1,776		64
Integra LifeSciences Holdings Corp. *		2,983		120
Iridex Corp. *		100		1
LCA-Vision, Inc. *		6,087		22
LeMaitre Vascular, Inc.		11,223		75
Luminex Corp. *		4,897		98
MAKO Surgical Corp. *		476		14
Masimo Corp.		6,598		176
Medical Action Industries, Inc. *		5,484		36
Merge Healthcare, Inc. *		1,663		4
Meridian Bioscience, Inc.		4,029		95
Merit Medical Systems, Inc. *		6,586		80
Natus Medical, Inc. *		8,282		117
NuVasive, Inc. *		7,498		184
NxStage Medical, Inc. *		4,160		55
OraSure Technologies, Inc. *		10,534		63
Orthofix International N.V. *		3,735		78
Quidel Corp. *		5,217		148
Rochester Medical Corp. *		1,044		21
Rockwell Medical, Inc. *		917		10

See Notes to the Financial Statements.

EQUITY FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Healthcare - Products – 3.9% – continued
Span-America Medical Systems, Inc.		2,086		$45
Spectranetics Corp. *		4,673		78
STERIS Corp.		6,209		267
SurModics, Inc. *		4,642		110
Symmetry Medical, Inc. *		8,443		69
Thoratec Corp. *		6,145		229
United-Guardian, Inc.		460		12
Utah Medical Products, Inc.		2,064		123
Vascular Solutions, Inc. *		4,503		76
Volcano Corp. *		5,473		131
West Pharmaceutical Services, Inc.		8,876		365
Wright Medical Group, Inc. *		4,677		122
				6,987
Healthcare - Services – 2.2%
Addus HomeCare Corp. *		5,512		160
Air Methods Corp.		5,561		237
Alliance HealthCare Services, Inc. *		6,382		177
Almost Family, Inc.		4,230		82
Amsurg Corp. *		4,247		169
Bio-Reference Labs, Inc. *		5,024		150
Capital Senior Living Corp. *		3,266		69
Centene Corp. *		5,573		356
Emeritus Corp. *		5,006		93
Ensign Group (The), Inc.		3,919		161
Gentiva Health Services, Inc. *		7,000		84
HealthSouth Corp.		10,315		356
Healthways, Inc. *		4,800		89
IPC The Hospitalist Co., Inc. *		2,642		135
Kindred Healthcare, Inc.		6,316		85
LHC Group, Inc. *		2,793		65
LifePoint Hospitals, Inc. *		5,300		247
Magellan Health Services, Inc. *		3,985		239
Medcath Corp. (1)		7,953		–
Molina Healthcare, Inc. *		3,958		141
National Healthcare Corp.		2,960		140
RadNet, Inc. *		26,699		64
Skilled Healthcare Group, Inc., Class A *		12,164		53
Triple-S Management Corp., Class B *		5,993		110
U.S. Physical Therapy, Inc.		3,376		105
Vanguard Health Systems, Inc. *		4,700		99
WellCare Health Plans, Inc. *		4,818		336
				4,002

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Holding Companies – Diversified – 0.1%
Harbinger Group, Inc. *		10,336		$107
Resource America, Inc., Class A		1,529		12
				119
Home Builders – 0.9%
AMREP Corp. *		5,193		45
Beazer Homes USA, Inc. *		156		3
Brookfield Residential Properties, Inc. *		11,618		268
Cavco Industries, Inc. *		2,461		140
Hovnanian Enterprises, Inc., Class A *		1,350		7
KB Home		6,807		123
M/I Homes, Inc. *		2,110		44
MDC Holdings, Inc.		5,779		173
Meritage Homes Corp. *		4,414		190
Nobility Homes, Inc. *		858		8
Ryland Group (The), Inc.		4,003		162
Standard Pacific Corp. *		7,500		59
Thor Industries, Inc.		4,091		237
Winnebago Industries, Inc. *		3,694		96
				1,555
Home Furnishings – 0.6%
American Woodmark Corp. *		2,946		102
Daktronics, Inc.		8,656		97
Emerson Radio Corp. *		2,592		5
Ethan Allen Interiors, Inc.		4,308		120
Flexsteel Industries, Inc.		4,302		107
Hooker Furniture Corp.		4,613		69
iRobot Corp. *		2,838		107
Kimball International, Inc., Class B		2,871		32
La-Z-Boy, Inc.		6,679		152
Select Comfort Corp. *		5,835		142
Stanley Furniture Co., Inc. *		1,105		4
TiVo, Inc. *		7,963		99
Universal Electronics, Inc. *		1,181		43
VOXX International Corp. *		763		10
				1,089
Household Products/Wares – 0.4%
ACCO Brands Corp. *		8,898		59
Central Garden and Pet Co., Class A *		3,449		24
CSS Industries, Inc.		1,191		28
Helen of Troy Ltd. *		3,546		157
Prestige Brands Holdings, Inc. *		5,149		155
Spectrum Brands Holdings, Inc.		2,800		184

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Household Products/Wares – 0.4% – continued
WD-40 Co.		3,111		$202
				809
Insurance – 3.4%
American Equity Investment Life Holding Co.		7,441		158
American Safety Insurance Holdings Ltd. *		5,106		154
AMERISAFE, Inc.		3,031		108
Amtrust Financial Services, Inc.		4,434		173
Argo Group International Holdings Ltd.		3,777		162
Atlantic American Corp.		6,501		26
Baldwin & Lyons, Inc., Class B		2,846		69
Citizens, Inc. *		9,548		82
CNO Financial Group, Inc.		22,070		318
Crawford & Co., Class B		13,444		130
Donegal Group, Inc., Class A		1,246		17
Eastern Insurance Holdings, Inc.		1,002		24
eHealth, Inc. *		4,009		129
EMC Insurance Group, Inc.		4,519		136
Employers Holdings, Inc.		5,233		156
Endurance Specialty Holdings Ltd.		4,410		237
FBL Financial Group, Inc., Class A		1,589		71
First Acceptance Corp. *		2,414		4
First American Financial Corp.		9,033		220
GAINSCO, Inc.		614		5
Global Indemnity PLC *		459		12
Greenlight Capital Re Ltd., Class A *		3,400		97
Hallmark Financial Services, Inc. *		640		6
Hanover Insurance Group (The), Inc.		5,455		302
Hilltop Holdings, Inc. *		2,253		42
Horace Mann Educators Corp.		3,212		91
Independence Holding Co.		746		11
Infinity Property & Casualty Corp.		2,227		144
Investors Title Co.		1,622		122
Kansas City Life Insurance Co.		1,595		71
Kemper Corp.		4,408		148
Maiden Holdings Ltd.		164		2
Meadowbrook Insurance Group, Inc.		2,883		19
MGIC Investment Corp. *		17,480		127
Montpelier Re Holdings Ltd.		7,701		201
National Interstate Corp.		2,645		74
National Western Life Insurance Co., Class A		463		93
Navigators Group (The), Inc. *		1,100		64
OneBeacon Insurance Group Ltd., Class A		3,395		50

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Insurance – 3.4% – continued
Phoenix (The) Cos., Inc. *		253		$10
Platinum Underwriters Holdings Ltd.		4,103		245
Primerica, Inc.		4,874		197
Primus Guaranty Ltd. *		1,524		15
Protective Life Corp.		8,170		348
Radian Group, Inc.		11,559		161
RLI Corp.		2,528		221
Safety Insurance Group, Inc.		2,023		107
Selective Insurance Group, Inc.		4,729		116
StanCorp Financial Group, Inc.		4,414		243
Stewart Information Services Corp.		4,172		133
Symetra Financial Corp.		8,441		150
Tower Group International Ltd.		4,082		29
Unico American Corp.		114		1
United Fire Group, Inc.		4,020		122
Universal Insurance Holdings, Inc.		1,237		9
				6,162
Internet – 2.3%
1-800-Flowers.com, Inc., Class A *		2,808		14
AOL, Inc. *		6,145		212
AsiaInfo-Linkage, Inc. *		7,067		82
Blucora, Inc. *		2,410		55
Blue Nile, Inc. *		2,822		115
BroadSoft, Inc. *		2,978		107
Cogent Communications Group, Inc.		6,212		200
comScore, Inc. *		2,489		72
Crexendo, Inc. *		1,188		4
Dealertrack Technologies, Inc. *		5,786		248
eGain Corp. *		8,800		133
ePlus, Inc.		3,370		174
Global Sources Ltd. *		3,322		25
HealthStream, Inc. *		3,889		147
ICG Group, Inc. *		7,376		105
Internap Network Services Corp. *		3,114		22
iPass, Inc. *		1,489		3
Lionbridge Technologies, Inc. *		2,108		8
Liquidity Services, Inc. *		3,521		118
Move, Inc. *		1,986		34
Move, Inc. - (Fractional Shares) *		25,000		–
NIC, Inc.		6,721		155
OpenTable, Inc. *		2,546		178
Orbitz Worldwide, Inc. *		2,462		24
Overstock.com, Inc. *		732		22

See Notes to the Financial Statements.

EQUITY FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Internet – 2.3% – continued
PC-Tel, Inc.		1,058		$9
Perficient, Inc. *		2,436		45
Reis, Inc. *		1,941		31
Saba Software, Inc. *		1,250		13
Safeguard Scientifics, Inc. *		2,408		38
Sapient Corp. *		14,392		224
Shutterfly, Inc. *		3,162		177
Sourcefire, Inc. *		4,090		310
SPS Commerce, Inc. *		1,100		74
Stamps.com, Inc. *		4,128		190
support.com, Inc. *		2,249		12
Travelzoo, Inc. *		2,939		78
Trulia, Inc. *		414		19
United Online, Inc.		15,232		122
Unwired Planet, Inc. *		2,425		4
ValueClick, Inc. *		8,021		167
VASCO Data Security International, Inc. *		2,430		19
VirnetX Holding Corp. *		2,104		43
Vocus, Inc. *		5,790		54
Web.com Group, Inc. *		5,202		168
WebMD Health Corp. *		5,895		169
XO Group, Inc. *		500		6
Zix Corp. *		2,688		13
				4,242
Investment Companies – 0.5%
Apollo Investment Corp.		17,890		146
BlackRock Kelso Capital Corp.		8,855		84
Capital Southwest Corp.		2,788		95
Fifth Street Finance Corp.		11,800		121
Gladstone Investment Corp.		918		7
Harris & Harris Group, Inc. *		1,080		3
Hercules Technology Growth Capital, Inc.		2,249		34
KCAP Financial, Inc.		1,228		11
Main Street Capital Corp.		1,491		45
MCG Capital Corp.		3,836		19
Medallion Financial Corp.		636		10
NGP Capital Resources Co.		660		5
PennantPark Investment Corp.		902		10
Prospect Capital Corp.		16,159		181
Solar Capital Ltd.		4,604		102
Solar Senior Capital Ltd.		400		7
TICC Capital Corp.		1,080		11
Triangle Capital Corp.		2,663		78
				969

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Iron/Steel – 0.2%
Commercial Metals Co.		12,664		$215
Great Northern Iron Ore Properties		227		16
Shiloh Industries, Inc.		1,218		16
Universal Stainless & Alloy Products, Inc. *		2,219		72
				319
Leisure Time – 0.7%
Arctic Cat, Inc.		2,943		168
Bowl America, Inc., Class A		460		6
Brunswick Corp.		9,820		392
Callaway Golf Co.		8,936		64
Interval Leisure Group, Inc.		5,529		131
Johnson Outdoors, Inc., Class A *		2,972		80
Life Time Fitness, Inc. *		4,472		230
Marine Products Corp.		2,110		19
Town Sports International Holdings, Inc.		2,568		33
WMS Industries, Inc. *		6,059		157
				1,280
Lodging – 0.1%
Boyd Gaming Corp. *		935		13
Marcus Corp.		1,941		28
Monarch Casino & Resort, Inc. *		742		14
Morgans Hotel Group Co. *		6,591		51
Orient-Express Hotels Ltd., Class A *		5,320		69
Red Lion Hotels Corp. *		920		5
				180
Machinery - Construction & Mining – 0.2%
Astec Industries, Inc.		2,663		96
Hyster-Yale Materials Handling, Inc.		2,014		180
				276
Machinery - Diversified – 1.9%
Alamo Group, Inc.		914		45
Altra Holdings, Inc.		5,361		144
Applied Industrial Technologies, Inc.		5,329		274
Briggs & Stratton Corp.		5,191		104
Chart Industries, Inc. *		3,609		444
ClearSign Combustion Corp. *		7,500		52
Cognex Corp.		9,590		301
Columbus McKinnon Corp. *		1,141		27
DXP Enterprises, Inc. *		3,023		239
Flow International Corp. *		5,011		20
Global Power Equipment Group, Inc.		3,336		67
Gorman-Rupp (The) Co.		3,311		133
Hollysys Automation Technologies Ltd. *		3,302		49

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Machinery – Diversified – 1.9% – continued
Hurco Cos., Inc.		880		$23
Kadant, Inc.		700		24
Key Technology, Inc. *		3,860		54
Lindsay Corp.		2,080		170
Manitowoc (The) Co., Inc.		14,254		279
Middleby (The) Corp. *		2,200		460
NACCO Industries, Inc., Class A		1,207		67
Tecumseh Products Co., Class A *		936		8
Tennant Co.		2,390		148
Twin Disc, Inc.		2,217		58
Zebra Technologies Corp., Class A *		5,600		255
				3,445
Media – 0.7%
Belo Corp., Class A		6,000		82
Courier Corp.		7,838		124
Crown Media Holdings, Inc., Class A *		3,297		10
Daily Journal Corp. *		1,012		149
Entercom Communications Corp., Class A *		5,047		44
Journal Communications, Inc., Class A *		3,428		29
LIN Media LLC, Class A *		2,858		58
Meredith Corp.		4,021		192
New York Times (The) Co., Class A *		15,127		190
Nexstar Broadcasting Group, Inc., Class A		1,600		71
Saga Communications, Inc., Class A		796		36
Scholastic Corp.		3,081		88
Sinclair Broadcast Group, Inc., Class A		4,751		159
World Wrestling Entertainment, Inc., Class A		5,941		61
				1,293
Metal Fabrication/Hardware – 1.1%
A.M. Castle & Co. *		4,310		69
Ampco-Pittsburgh Corp.		1,455		26
CIRCOR International, Inc.		2,229		139
Dynamic Materials Corp.		2,580		60
Eastern (The) Co.		3,234		52
Furmanite Corp. *		7,381		73
Haynes International, Inc.		2,029		92
Kaydon Corp.		3,101		110
Lawson Products, Inc. *		1,923		20
LB Foster Co., Class A		3,699		169
Mueller Industries, Inc.		4,551		253
Mueller Water Products, Inc., Class A		14,767		118
Northwest Pipe Co. *		3,521		116

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Metal Fabrication/Hardware – 1.1% – continued
Olympic Steel, Inc.		2,390		$66
Omega Flex, Inc.		455		9
RBC Bearings, Inc. *		3,411		225
RTI International Metals, Inc. *		4,041		130
Sun Hydraulics Corp.		2,849		103
Worthington Industries, Inc.		7,124		245
				2,075
Mining – 0.6%
AMCOL International Corp.		2,021		66
Century Aluminum Co. *		3,482		28
Coeur Mining, Inc. *		9,721		117
Globe Specialty Metals, Inc.		7,897		122
Gold Resource Corp.		11,555		77
Horsehead Holding Corp. *		7,128		89
Kaiser Aluminum Corp.		2,153		153
Materion Corp.		3,090		99
Stillwater Mining Co. *		12,719		140
United States Lime & Minerals, Inc. *		1,480		87
US Silica Holdings, Inc.		1,900		47
				1,025
Miscellaneous Manufacturing – 2.3%
A.O. Smith Corp.		7,962		360
Actuant Corp., Class A		7,008		272
American Railcar Industries, Inc.		2,863		112
AZZ, Inc.		4,418		185
Barnes Group, Inc.		5,033		176
Blount International, Inc. *		4,712		57
Chase Corp.		426		12
CLARCOR, Inc.		5,649		314
EnPro Industries, Inc. *		3,313		199
Federal Signal Corp. *		11,351		146
FreightCar America, Inc.		3,386		70
GP Strategies Corp. *		747		20
Harsco Corp.		8,700		217
Hexcel Corp. *		9,609		373
Hillenbrand, Inc.		7,437		204
John Bean Technologies Corp.		3,100		77
Koppers Holdings, Inc.		1,760		75
LSB Industries, Inc. *		2,477		83
Movado Group, Inc.		2,774		121
Myers Industries, Inc.		2,840		57
NL Industries, Inc.		2,807		32
Polypore International, Inc. *		5,094		209

See Notes to the Financial Statements.

EQUITY FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Miscellaneous Manufacturing – 2.3% – continued
Raven Industries, Inc.		4,634		$152
Smith & Wesson Holding Corp. *		1,096		12
Standex International Corp.		2,533		150
Sturm Ruger & Co., Inc.		2,268		142
Synalloy Corp.		100		2
Tredegar Corp.		5,233		136
Trimas Corp. *		4,996		186
				4,151
Office Furnishings – 0.4%
Compx International, Inc.		1		–
Herman Miller, Inc.		4,751		139
HNI Corp.		4,707		170
Interface, Inc.		6,689		133
Knoll, Inc.		6,043		102
Steelcase, Inc., Class A		9,635		160
Virco Manufacturing Corp. *		1,533		3
				707
Oil & Gas – 3.0%
Adams Resources & Energy, Inc.		2,285		127
Alon USA Energy, Inc.		4,886		50
Approach Resources, Inc. *		2,933		77
Berry Petroleum Co., Class A		5,269		227
Bill Barrett Corp. *		3,100		78
Bonanza Creek Energy, Inc. *		1,100		53
Callon Petroleum Co. *		5,342		29
Carrizo Oil & Gas, Inc. *		7,052		263
Clayton Williams Energy, Inc. *		1,883		99
Comstock Resources, Inc.		3,848		61
Contango Oil & Gas Co.		3,680		135
Delek US Holdings, Inc.		2,923		62
Diamondback Energy, Inc. *		2,200		94
Energy XXI Bermuda Ltd.		9,271		280
EPL Oil & Gas, Inc. *		3,309		123
Evolution Petroleum Corp. *		6,152		69
FX Energy, Inc. *		6,000		21
Goodrich Petroleum Corp. *		2,800		68
Gran Tierra Energy, Inc. *		32,756		232
Gulf Coast Ultra Deep Royalty Trust *		12,774		28
Gulfport Energy Corp. *		6,241		401
Halcon Resources Corp. *		4,036		18
Hercules Offshore, Inc. *		23,283		172
Isramco, Inc. *		1,466		182
Kodiak Oil & Gas Corp. *		30,418		367

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Oil & Gas – 3.0% – continued
Oasis Petroleum, Inc. *		6,791		$334
Panhandle Oil and Gas, Inc., Class A		3,029		86
PDC Energy, Inc. *		3,094		184
PetroQuest Energy, Inc. *		8,570		34
PrimeEnergy Corp. *		4,608		226
Rex Energy Corp. *		4,704		105
Rosetta Resources, Inc. *		6,309		344
SandRidge Energy, Inc. *		9,472		55
Stone Energy Corp. *		5,858		190
Texas Pacific Land Trust		1,180		100
Triangle Petroleum Corp. *		3,061		30
Vaalco Energy, Inc. *		9,511		53
W&T Offshore, Inc.		5,047		89
Warren Resources, Inc. *		2,378		7
Western Refining, Inc.		6,997		210
				5,363
Oil & Gas Services – 1.7%
Basic Energy Services, Inc. *		8,156		103
Bolt Technology Corp.		5,255		95
C&J Energy Services, Inc. *		4,700		94
CARBO Ceramics, Inc.		1,600		159
Dawson Geophysical Co. *		2,476		80
Exterran Holdings, Inc. *		10,281		283
Geospace Technologies Corp. *		2,028		171
Gulf Island Fabrication, Inc.		3,793		93
Helix Energy Solutions Group, Inc. *		10,950		278
Hornbeck Offshore Services, Inc. *		3,526		203
ION Geophysical Corp. *		17,520		91
Key Energy Services, Inc. *		15,106		110
Matrix Service Co. *		3,535		69
Mitcham Industries, Inc. *		2,477		38
Natural Gas Services Group, Inc. *		4,187		112
Newpark Resources, Inc. *		11,712		148
Pioneer Energy Services Corp. *		7,007		53
RPC, Inc.		11,601		179
Steel Excel, Inc. *		2,478		73
T.G.C. Industries, Inc.		5,695		45
Targa Resources Corp.		4,135		302
Tesco Corp. *		8,200		136
TETRA Technologies, Inc. *		7,251		91
Willbros Group, Inc. *		8,260		76
				3,082

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Packaging & Containers – 0.2%
AEP Industries, Inc. *		1,889		$140
Graphic Packaging Holding Co. *		15,260		131
				271
Pharmaceuticals – 2.9%
Akorn, Inc. *		9,157		180
Amicus Therapeutics, Inc. *		1,704		4
Anika Therapeutics, Inc. *		4,772		114
Array BioPharma, Inc. *		2,130		13
Auxilium Pharmaceuticals, Inc. *		6,094		111
AVANIR Pharmaceuticals, Inc., Class A *		30,462		129
BioDelivery Sciences International, Inc. *		1,664		9
BioScrip, Inc. *		4,472		39
BioSpecifics Technologies Corp. *		1,577		31
Cadence Pharmaceuticals, Inc. *		3,900		25
Clovis Oncology, Inc. *		5,197		316
Cumberland Pharmaceuticals, Inc. *		100		–
Depomed, Inc. *		10,430		78
Derma Sciences, Inc. *		9,600		119
Dyax Corp. *		1,989		14
Endocyte, Inc. *		4,800		64
Furiex Pharmaceuticals, Inc. *		2,700		119
Hi-Tech Pharmacal Co., Inc.		3,451		149
Hyperion Therapeutics, Inc. *		3,000		78
Idenix Pharmaceuticals, Inc. *		1,818		9
Impax Laboratories, Inc. *		7,204		148
Infinity Pharmaceuticals, Inc. *		1,041		18
Isis Pharmaceuticals, Inc. *		11,666		438
Lannett Co., Inc. *		9,664		211
Natural Alternatives International, Inc. *		567		3
Nature’s Sunshine Products, Inc.		6,072		116
Nektar Therapeutics *		6,517		68
Neogen Corp. *		2,599		158
Neurocrine Biosciences, Inc. *		1,518		17
Nutraceutical International Corp.		1,585		38
Omega Protein Corp. *		769		8
Opko Health, Inc. *		8,455		74
Optimer Pharmaceuticals, Inc. *		6,942		87
Orexigen Therapeutics, Inc. *		32,437		199
Osiris Therapeutics, Inc. *		2,090		35
Pacira Pharmaceuticals, Inc. *		3,200		154
Pain Therapeutics, Inc. *		3,435		9
PharMerica Corp. *		6,198		82
Pozen, Inc. *		1,041		6
Progenics Pharmaceuticals, Inc. *		1,104		6

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Pharmaceuticals – 2.9% – continued
Questcor Pharmaceuticals, Inc.		5,699		$331
Raptor Pharmaceutical Corp. *		11,900		178
Repros Therapeutics, Inc. *		3,500		94
Sagent Pharmaceuticals, Inc. *		2,545		52
Santarus, Inc. *		6,090		137
Sarepta Therapeutics, Inc. *		2,200		104
Sciclone Pharmaceuticals, Inc. *		1,805		9
Sucampo Pharmaceuticals, Inc., Class A *		9,115		57
Synageva BioPharma Corp. *		521		33
Synta Pharmaceuticals Corp. *		7,113		45
USANA Health Sciences, Inc. *		2,680		233
Vanda Pharmaceuticals, Inc. *		632		7
VCA Antech, Inc. *		5,500		151
ViroPharma, Inc. *		9,392		369
				5,276
Pipelines – 0.2%
Crosstex Energy, Inc.		2,825		59
SemGroup Corp., Class A		4,874		278
				337
Real Estate – 0.3%
Alexander & Baldwin, Inc. *		4,830		174
AV Homes, Inc. *		5,232		91
Consolidated-Tomoka Land Co.		1,787		69
Forestar Group, Inc. *		5,608		121
Kennedy-Wilson Holdings, Inc.		1,662		31
St. Joe (The) Co. *		5,413		106
Stratus Properties, Inc. *		114		2
Trinity Place Holdings, Inc. *		913		3
				597
Real Estate Investment Trusts – 7.2%
Acadia Realty Trust		5,067		125
AG Mortgage Investment Trust, Inc.		4,100		68
Agree Realty Corp.		4,051		122
Alexander’s, Inc.		463		132
American Assets Trust, Inc.		3,407		104
American Realty Capital Properties, Inc.		2,600		32
AmREIT, Inc.		200		3
Anworth Mortgage Asset Corp.		10,827		52
Apollo Commercial Real Estate Finance, Inc.		5,506		84
Apollo Residential Mortgage, Inc.		1,800		26
Arbor Realty Trust, Inc.		13,864		94
Ares Commercial Real Estate Corp.		3,400		42

See Notes to the Financial Statements.

EQUITY FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Real Estate Investment Trusts – 7.2% – continued
ARMOUR Residential REIT, Inc.		37,528		$158
Ashford Hospitality Trust, Inc.		14,486		179
Associated Estates Realty Corp.		4,299		64
Brandywine Realty Trust		19,617		259
BRT Realty Trust *		15,341		110
Campus Crest Communities, Inc.		2,900		31
CapLease, Inc.		13,956		118
Capstead Mortgage Corp.		9,555		112
Cedar Realty Trust, Inc.		12,882		67
Chatham Lodging Trust		2,000		36
Chesapeake Lodging Trust		6,202		146
Colonial Properties Trust		12,541		282
Colony Financial, Inc.		8,140		163
CommonWealth REIT		8,548		187
CoreSite Realty Corp.		2,186		74
Corporate Office Properties Trust		2,400		55
Cousins Properties, Inc.		9,646		99
CubeSmart		17,109		305
DCT Industrial Trust, Inc.		24,783		178
DiamondRock Hospitality Co.		22,158		236
DuPont Fabros Technology, Inc.		7,983		206
Dynex Capital, Inc.		6,084		53
EastGroup Properties, Inc.		3,670		217
Education Realty Trust, Inc.		11,935		109
EPR Properties		6,405		312
Equity One, Inc.		8,063		176
Excel Trust, Inc.		4,517		54
FelCor Lodging Trust, Inc. *		12,015		74
First Industrial Realty Trust, Inc.		9,952		162
First Potomac Realty Trust		8,367		105
Franklin Street Properties Corp.		11,039		141
Geo Group (The), Inc.		9,325		310
Getty Realty Corp.		3,744		73
Gladstone Commercial Corp.		6,181		111
Glimcher Realty Trust		15,420		150
Gramercy Property Trust, Inc. *		1,928		8
Gyrodyne Co. of America, Inc.		744		56
Healthcare Realty Trust, Inc.		11,251		260
Hersha Hospitality Trust		19,066		107
Highwoods Properties, Inc.		7,869		278
Hudson Pacific Properties, Inc.		3,440		67
Inland Real Estate Corp.		9,728		100
Invesco Mortgage Capital, Inc.		15,190		234
Investors Real Estate Trust		10,187		84

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Real Estate Investment Trusts – 7.2% – continued
iStar Financial, Inc. *		7,844		$94
Kite Realty Group Trust		1,519		9
LaSalle Hotel Properties		10,320		294
Lexington Realty Trust		16,433		185
LTC Properties, Inc.		2,805		107
Medical Properties Trust, Inc.		14,960		182
Monmouth Real Estate Investment Corp., Class A		6,532		59
MPG Office Trust, Inc. *		17,939		56
National Health Investors, Inc.		3,670		209
New Residential Investment Corp.		21,347		141
New York Mortgage Trust, Inc.		2,425		15
Newcastle Investment Corp.		17,547		99
NorthStar Realty Finance Corp.		12,722		118
One Liberty Properties, Inc.		3,598		73
Parkway Properties, Inc.		6,696		119
Pebblebrook Hotel Trust		5,675		163
Pennsylvania Real Estate Investment Trust		7,098		133
PennyMac Mortgage Investment Trust		6,540		148
PMC Commercial Trust		635		6
Post Properties, Inc.		6,019		271
Potlatch Corp.		4,574		181
PS Business Parks, Inc.		1,922		143
RAIT Financial Trust		16,596		118
Ramco-Gershenson Properties Trust		7,848		121
Redwood Trust, Inc.		8,770		173
Resource Capital Corp.		6,215		37
Retail Opportunity Investments Corp.		8,449		117
RLJ Lodging Trust		13,400		315
Rouse Properties, Inc.		4,200		86
Ryman Hospitality Properties, Inc.		4,020		139
Sabra Health Care REIT, Inc.		4,027		93
Saul Centers, Inc.		2,002		93
Silver Bay Realty Trust Corp.		1,051		16
Sotherly Hotels, Inc.		443		2
Sovran Self Storage, Inc.		3,675		278
STAG Industrial, Inc.		1,500		30
Starwood Property Trust, Inc.		13,051		313
Strategic Hotels & Resorts, Inc. *		19,667		171
Summit Hotel Properties, Inc.		6,700		62
Sun Communities, Inc.		4,685		200
Sunstone Hotel Investors, Inc.		14,782		188
Terreno Realty Corp.		3,370		60
UMH Properties, Inc.		1,731		17
Universal Health Realty Income Trust		1,167		49

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Real Estate Investment Trusts – 7.2% – continued
Urstadt Biddle Properties, Inc., Class A		2,860		$57
Washington Real Estate Investment Trust		8,376		212
Western Asset Mortgage Capital Corp.		2,100		34
Whitestone REIT		4,064		60
Winthrop Realty Trust		7,289		81
				13,117
Retail – 6.2%
Aeropostale, Inc. *		7,531		71
AFC Enterprises, Inc. *		3,156		138
ALCO Stores, Inc. *		600		8
America’s Car-Mart, Inc. *		2,080		94
ANN, Inc. *		1,156		42
Asbury Automotive Group, Inc. *		4,397		234
Big 5 Sporting Goods Corp.		1,509		24
Biglari Holdings, Inc. *		229		95
BJ’s Restaurants, Inc. *		2,544		73
Bob Evans Farms, Inc.		3,609		207
Books-A-Million, Inc. *		1,979		5
Brown Shoe Co., Inc.		6,387		150
Buckle (The), Inc.		3,094		167
Buffalo Wild Wings, Inc. *		2,368		263
Build-A-Bear Workshop, Inc. *		1,494		10
Carrols Restaurant Group, Inc. *		1,058		6
Casey’s General Stores, Inc.		5,897		433
Cash America International, Inc.		3,109		141
Cato (The) Corp., Class A		2,771		78
CEC Entertainment, Inc.		4,410		202
Cheesecake Factory (The), Inc.		6,101		268
Children’s Place Retail Stores (The), Inc. *		3,094		179
Christopher & Banks Corp. *		2,113		15
Citi Trends, Inc. *		902		16
Conn’s, Inc. *		2,204		110
Cracker Barrel Old Country Store, Inc.		2,556		264
Denny’s Corp. *		1,652		10
Destination Maternity Corp.		1,139		36
DineEquity, Inc.		2,241		155
Einstein Noah Restaurant Group, Inc.		7,526		130
Express, Inc. *		9,886		233
Ezcorp, Inc., Class A *		4,774		81
Famous Dave’s Of America, Inc. *		1,817		29
Fiesta Restaurant Group, Inc. *		1,158		44
Finish Line (The), Inc., Class A		5,464		136
First Cash Financial Services, Inc. *		3,353		194
Francesca’s Holdings Corp. *		3,800		71

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Retail – 6.2% – continued
Fred’s, Inc., Class A		4,959		$78
Frisch’s Restaurants, Inc.		2,750		66
Gaiam, Inc., Class A *		600		3
Genesco, Inc. *		2,704		177
Group 1 Automotive, Inc.		2,490		193
Haverty Furniture Cos., Inc.		3,674		90
Hibbett Sports, Inc. *		3,944		222
HSN, Inc.		5,054		271
Jack in the Box, Inc. *		5,628		225
Jos A Bank Clothiers, Inc. *		3,982		175
Kirkland’s, Inc. *		3,390		63
Kona Grill, Inc. *		5,047		59
Krispy Kreme Doughnuts, Inc. *		8,425		163
Lithia Motors, Inc., Class A		2,692		196
Luby’s, Inc. *		1,073		8
Lumber Liquidators Holdings, Inc. *		3,277		350
Mattress Firm Holding Corp. *		1,900		60
Men’s Wearhouse (The), Inc.		5,629		192
Nathan’s Famous, Inc. *		1,400		74
New York & Co., Inc. *		1,796		10
Office Depot, Inc. *		25,709		124
OfficeMax, Inc.		13,320		170
Pantry (The), Inc. *		593		7
Papa John’s International, Inc.		2,059		144
PC Connection, Inc.		3,235		49
PCM, Inc. *		794		7
Penske Automotive Group, Inc.		7,545		322
Pep Boys-Manny Moe & Jack (The) *		6,372		80
PetMed Express, Inc.		2,249		37
Pier 1 Imports, Inc.		12,456		243
Pricesmart, Inc.		2,469		235
Red Robin Gourmet Burgers, Inc. *		5,192		369
Regis Corp.		7,545		111
Rite Aid Corp. *		14,521		69
Ruby Tuesday, Inc. *		11,014		83
rue21, Inc. *		2,018		81
Rush Enterprises, Inc., Class A *		4,297		114
Ruth’s Hospitality Group, Inc.		2,539		30
Saks, Inc. *		10,538		168
Shoe Carnival, Inc.		3,209		87
Sonic Automotive, Inc., Class A		6,170		147
Sonic Corp. *		9,687		172
Stage Stores, Inc.		5,324		102
Stein Mart, Inc.		2,570		35

See Notes to the Financial Statements.

EQUITY FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Retail – 6.2% – continued
Susser Holdings Corp. *		719		$38
Systemax, Inc.		5,779		54
Texas Roadhouse, Inc.		7,946		209
Tile Shop Holdings, Inc. *		3,400		100
Tuesday Morning Corp. *		1,060		16
Vera Bradley, Inc. *		459		9
Vitamin Shoppe, Inc. *		3,297		144
Wendy’s (The) Co.		30,800		261
West Marine, Inc. *		636		8
Wet Seal (The), Inc., Class A *		1,989		8
World Fuel Services Corp.		6,937		259
Zale Corp. *		1,967		30
Zumiez, Inc. *		3,172		87
				11,296
Savings & Loans – 1.3%
Astoria Financial Corp.		8,909		111
Banc of California, Inc.		632		9
Bank Mutual Corp.		4,330		27
BankFinancial Corp.		1,490		13
Beneficial Mutual Bancorp, Inc. *		7,547		75
Berkshire Hills Bancorp, Inc.		7,529		189
BofI Holding, Inc. *		1,600		104
Brookline Bancorp, Inc.		4,740		45
Cape Bancorp, Inc.		786		7
Cheviot Financial Corp.		492		5
Chicopee Bancorp, Inc.		632		11
Clifton Savings Bancorp, Inc.		2,269		28
Dime Community Bancshares, Inc.		2,244		37
ESB Financial Corp.		551		7
ESSA Bancorp, Inc.		632		7
First Clover Leaf Financial Corp.		167		1
First Defiance Financial Corp.		1,292		30
First Financial Northwest, Inc.		640		7
Flushing Financial Corp.		1,360		25
Fox Chase Bancorp, Inc.		4,793		83
Heritage Financial Group, Inc.		3,000		52
HF Financial Corp.		465		6
Hingham Institution for Savings		64		4
Home Federal Bancorp, Inc.		2,709		34
Investors Bancorp, Inc.		2,539		56
Kearny Financial Corp. *		7,096		73
Kentucky First Federal Bancorp		562		5
Lake Shore Bancorp, Inc.		267		3
Meridian Interstate Bancorp, Inc. *		598		13

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Savings & Loans – 1.3% – continued
Meta Financial Group, Inc.		1,350		$51
MutualFirst Financial, Inc.		346		5
NASB Financial, Inc. *		3,779		104
Northeast Community Bancorp, Inc.		721		5
Northfield Bancorp, Inc.		6,592		80
Northwest Bancshares, Inc.		8,004		106
OceanFirst Financial Corp.		4,309		73
Oritani Financial Corp.		7,492		123
Provident Financial Services, Inc.		7,344		119
Provident New York Bancorp		2,990		33
Prudential Bancorp, Inc. of Pennsylvania *		990		10
Pulaski Financial Corp.		597		6
Rockville Financial, Inc.		934		12
Roma Financial Corp. *		4,611		86
Severn Bancorp, Inc. *		1,182		6
SI Financial Group, Inc.		729		8
Simplicity Bancorp, Inc.		485		8
Teche Holding Co.		142		7
TF Financial Corp.		199		6
United Financial Bancorp, Inc.		3,112		50
Washington Federal, Inc.		8,077		167
Waterstone Financial, Inc. *		2,670		27
Westfield Financial, Inc.		1,804		13
WSFS Financial Corp.		2,356		142
				2,314
Semiconductors – 2.8%
ATMI, Inc. *		4,954		131
Brooks Automation, Inc.		7,961		74
Cabot Microelectronics Corp. *		2,536		98
Cascade Microtech, Inc. *		359		3
Cavium, Inc. *		3,402		140
Ceva, Inc. *		2,180		38
Cirrus Logic, Inc. *		9,029		205
Cohu, Inc.		4,231		46
Diodes, Inc. *		4,328		106
DSP Group, Inc. *		1,963		14
Emulex Corp. *		9,517		74
Entegris, Inc. *		18,043		183
Exar Corp. *		9,194		123
Fairchild Semiconductor International, Inc. *		10,827		150
Hittite Microwave Corp. *		3,586		234
Integrated Device Technology, Inc. *		13,618		128
International Rectifier Corp. *		6,552		162

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Semiconductors – 2.8% – continued
Intersil Corp., Class A		18,808		$211
IXYS Corp.		7,959		77
Kopin Corp. *		5,483		22
Kulicke & Soffa Industries, Inc. *		9,474		110
Lattice Semiconductor Corp. *		12,851		57
LTX-Credence Corp. *		12,391		82
Magnachip Semiconductor Corp. *		3,600		78
Micrel, Inc.		8,278		76
Microsemi Corp. *		9,729		236
MKS Instruments, Inc.		6,239		166
Monolithic Power Systems, Inc.		3,678		111
Nanometrics, Inc. *		2,400		39
OmniVision Technologies, Inc. *		800		12
Pericom Semiconductor Corp. *		1,660		13
Photronics, Inc. *		3,655		29
PLX Technology, Inc. *		936		6
PMC - Sierra, Inc. *		23,864		158
Power Integrations, Inc.		3,548		192
QLogic Corp. *		9,355		102
Rambus, Inc. *		5,872		55
Rovi Corp. *		6,600		127
Rudolph Technologies, Inc. *		1,944		22
Semtech Corp. *		6,076		182
Silicon Image, Inc. *		2,244		12
Silicon Laboratories, Inc. *		4,594		196
SunEdison, Inc. *		14,700		117
Supertex, Inc.		3,416		87
Tessera Technologies, Inc.		5,632		109
TriQuint Semiconductor, Inc. *		11,100		90
Ultratech, Inc. *		3,524		107
Veeco Instruments, Inc. *		3,928		146
Volterra Semiconductor Corp. *		2,825		65
				5,001
Software – 4.3%
Accelrys, Inc. *		2,670		26
ACI Worldwide, Inc. *		4,371		236
Actuate Corp. *		1,051		8
Acxiom Corp. *		6,251		178
Advent Software, Inc.		5,051		160
American Software, Inc., Class A		12,136		104
Aspen Technology, Inc. *		9,271		320
athenahealth, Inc. *		3,825		415
Audience, Inc. *		4,300		48
Blackbaud, Inc.		4,408		172

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Software – 4.3% – continued
Bottomline Technologies de, Inc. *		4,314		$120
Callidus Software, Inc. *		1,538		14
CommVault Systems, Inc. *		4,698		413
Computer Programs & Systems, Inc.		3,083		180
Cornerstone OnDemand, Inc. *		3,200		165
CSG Systems International, Inc.		4,444		111
Datawatch Corp. *		4,500		126
Digi International, Inc. *		4,295		43
Digital River, Inc. *		7,548		135
Envestnet, Inc. *		1,900		59
EPAM Systems, Inc. *		3,000		104
Epiq Systems, Inc.		1,682		22
Exa Corp. *		1,035		16
Fair Isaac Corp.		4,712		261
Geeknet, Inc. *		6,623		112
Guidance Software, Inc. *		100		1
inContact, Inc. *		6,358		53
InnerWorkings, Inc. *		928		9
Innodata, Inc. *		1,500		4
Interactive Intelligence Group, Inc. *		2,482		158
ManTech International Corp., Class A		3,094		89
MedAssets, Inc. *		8,908		226
Medidata Solutions, Inc. *		2,663		263
MicroStrategy, Inc., Class A *		1,002		104
Official Payments Holdings, Inc. *		764		6
Omnicell, Inc. *		4,663		110
PDF Solutions, Inc. *		1,400		30
Pegasystems, Inc.		2,778		111
Progress Software Corp. *		7,390		191
PROS Holdings, Inc. *		3,914		134
PTC, Inc. *		11,939		339
QAD, Inc., Class B		642		7
Qlik Technologies, Inc. *		9,113		312
Quality Systems, Inc.		4,133		90
RealPage, Inc. *		7,251		168
Rosetta Stone, Inc. *		4,700		76
Schawk, Inc.		4,318		64
SciQuest, Inc. *		1,600		36
Seachange International, Inc. *		1,080		12
SS&C Technologies Holdings, Inc. *		2,204		84
Synchronoss Technologies, Inc. *		4,374		167
SYNNEX Corp. *		2,955		182
Take-Two Interactive Software, Inc. *		10,345		188
Tyler Technologies, Inc. *		4,681		409

See Notes to the Financial Statements.

EQUITY FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Software – 4.3% – continued
Ultimate Software Group (The), Inc. *		2,943		$434
Verint Systems, Inc. *		4,023		149
Wayside Technology Group, Inc.		1,345		17
				7,771
Storage/Warehousing – 0.1%
Mobile Mini, Inc. *		4,258		145
Telecommunications – 2.7%
8x8, Inc. *		12,015		121
ADTRAN, Inc.		7,800		208
Alteva		98		1
Anaren, Inc. *		4,105		105
ARRIS Group, Inc. *		11,272		192
Aruba Networks, Inc. *		13,033		217
Atlantic Tele-Network, Inc.		1,101		57
Aware, Inc.		538		3
Black Box Corp.		3,521		108
Ciena Corp. *		11,043		276
Cincinnati Bell, Inc. *		24,663		67
Communications Systems, Inc.		2,431		27
Comtech Telecommunications Corp.		2,793		68
Comverse, Inc. *		1,884		60
Consolidated Communications Holdings, Inc.		4,275		74
DigitalGlobe, Inc. *		7,072		224
EarthLink, Inc.		14,765		73
Extreme Networks, Inc. *		4,748		25
Finisar Corp. *		10,110		229
General Communication, Inc., Class A *		3,985		38
Globecomm Systems, Inc. *		1,225		17
Harmonic, Inc. *		9,635		74
HickoryTech Corp.		4,391		50
IDT Corp., Class B		1,551		27
Infinera Corp. *		8,449		96
InterDigital, Inc.		4,713		176
Ixia *		7,434		116
KVH Industries, Inc. *		5,394		74
LogMeIn, Inc. *		3,835		119
Loral Space & Communications, Inc.		1,832		124
Lumos Networks Corp.		987		21
NETGEAR, Inc. *		4,144		128
NeuStar, Inc., Class A *		5,827		288
NII Holdings, Inc. *		9,200		56
NTELOS Holdings Corp.		1,999		38
Numerex Corp., Class A *		1,538		17

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Telecommunications – 2.7% – continued
Oplink Communications, Inc. *		6,032		$113
Plantronics, Inc.		5,191		239
Preformed Line Products Co.		698		50
Premiere Global Services, Inc. *		11,819		118
Procera Networks, Inc. *		3,300		51
RF Micro Devices, Inc. *		27,113		153
RigNet, Inc. *		2,972		108
Shenandoah Telecommunications Co.		1,504		36
Sonus Networks, Inc. *		15,055		51
Straight Path Communications, Inc., Class B *		725		4
Symmetricom, Inc. *		12,238		59
Tessco Technologies, Inc.		1,174		40
USA Mobility, Inc.		3,117		44
UTStarcom Holdings Corp. *		1,484		4
ViaSat, Inc. *		4,280		273
				4,937
Textiles – 0.2%
G&K Services, Inc., Class A		2,947		178
Hallwood Group (The), Inc. *		100		1
UniFirst Corp.		2,221		232
				411
Toys, Games & Hobbies – 0.0%
LeapFrog Enterprises, Inc. *		3,255		31
Transportation – 1.5%
Air Transport Services Group, Inc. *		2,810		21
Atlas Air Worldwide Holdings, Inc. *		2,929		135
Bristow Group, Inc.		4,067		296
CAI International, Inc. *		2,251		52
Celadon Group, Inc.		597		11
Con-way, Inc.		5,977		258
Covenant Transportation Group, Inc., Class A *		1,478		9
Forward Air Corp.		3,933		159
Golar LNG Ltd.		3,826		144
Gulfmark Offshore, Inc., Class A		2,971		151
Heartland Express, Inc.		7,821		111
International Shipholding Corp.		319		9
Knight Transportation, Inc.		7,060		117
Marten Transport Ltd.		5,576		96
Matson, Inc.		4,730		124
P.A.M. Transportation Services, Inc.		7,100		124
Pacer International, Inc. *		1,937		12
Patriot Transportation Holding, Inc. *		1,279		43

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.8% – continued
Transportation – 1.5% – continued
PHI, Inc. (Non Voting) *		3,370		$127
Providence and Worcester Railroad Co.		7,307		147
Saia, Inc. *		2,847		89
Ship Finance International Ltd.		5,632		86
Universal Truckload Services, Inc.		3,613		96
UTi Worldwide, Inc.		11,100		168
Werner Enterprises, Inc.		5,364		125
				2,710
Trucking & Leasing – 0.4%
AMERCO		1,126		207
GATX Corp.		5,573		265
Greenbrier Cos., Inc. *		884		22
TAL International Group, Inc.		2,809		131
Textainer Group Holdings Ltd.		2,347		89
Willis Lease Finance Corp. *		608		10
				724
Water – 0.4%
American States Water Co.		4,800		132
Artesian Resources Corp., Class A		2,434		54
California Water Service Group		4,748		97
Connecticut Water Service, Inc.		2,500		80
Consolidated Water Co. Ltd.		3,764		56
Middlesex Water Co.		3,786		81
SJW Corp.		2,498		70
York Water Co.		3,016		61
				631
Total Common Stocks
(Cost $125,196)				179,368
MASTER LIMITED PARTNERSHIPS – 0.2%
Holding Companies - Diversified – 0.0%
Compass Diversified Holdings		3,820		68
Oil & Gas – 0.1%
Vanguard Natural Resources LLC		5,656		159
Pipelines – 0.1%
Niska Gas Storage Partners LLC, Class U		6,612		102
Total Master Limited Partnerships
(Cost $327)				329

	NUMBER OF SHARES		VALUE (000s)
PREFERRED STOCKS – 0.0%
Electric – 0.0%
Genie Energy Ltd. *		1,025		$8
Total Preferred Stocks
(Cost $11)				8
RIGHTS – 0.0%
Healthcare - Products – 0.0%
American Medical Alert Corp. (2)*		13,109		–
Wright Medical Group, Inc. (Contingent Value Rights) *		5,624		2
				2
Pharmaceuticals – 0.0%
Forest Laboratories, Inc. (Contingent Value Rights) *		3,326		–
Total Rights
(Cost $20)				2
OTHER – 0.0% (3)
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		$ –
Tejon Ranch Co. Exp. 8/31/16, Strike $40.00 *		348		1
Total Warrants
(Cost $2)				1
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 0.9%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (4)(5)		1,591,199		$1,591
Total Investment Companies
(Cost $1,591)				1,591

See Notes to the Financial Statements.

EQUITY FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.0%
U.S. Treasury Bill, 0.07%, 10/17/13 (6)		$125		$125
Total Short-Term Investments
(Cost $125)				125
Total Investments – 99.9%
(Cost $127,272)				181,424
Other Assets less Liabilities – 0.1%				112
NET ASSETS – 100.0%				$181,536

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

(2) Level 3 asset that is worthless, bankrupt or has been delisted.

(3) Security listed as “escrow” is considered to be worthless.

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $10,147,000 with net sales of approximately $8,556,000 during the six months ended September 30, 2013.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2013, 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 Index		15		$1,607		Long		12/13		$34

At September 30, 2013, the industry sectors for the Small Cap Core Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		14.0%
Consumer Staples		4.1
Energy		5.9
Financials		21.9
Health Care		13.6
Industrials		15.2
Information Technology		17.2
Materials		4.6
Telecommunication Services		0.6
Utilities		2.9
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Banks		$11,583			$16		$–		$11,599
Diversified Financial Services		4,000			1		–		4,001
Food		3,892			33		–		3,925
Healthcare - Products		6,983			4		–		6,987
Insurance		6,157			5		–		6,162
Leisure Time		1,274			6		–		1,280
Real Estate		593			4		–		597
All Other Industries		144,817	(1)		–		–		144,817
Master Limited Partnerships		329	(1)		–		–		329
Preferred Stocks		8	(1)		–		–		8
Rights		2	(1)		–		–		2
Warrants		1			–		–		1
Investment Companies		1,591			–		–		1,591
Short-Term Investments		–			125		–		125
Total Investments		$181,230			$194		$–		$181,424
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$34			$ –		$–		$34

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

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Banks		$11	Valuations at bid price
Diversified Financial Services		1	Valuations at bid price
Healthcare - Products		4	Valuations at bid price
Leisure Time		6	Valuations at bid price
Real Estate		4	Valuations at bid price
Total		$26
Transfers from Level 2 to Level 1
Industry	Value (000s)		Reason
Common Stocks
Banks		$1	Valuations at last trade price
Internet		4	Valuations at last trade price
Total		$5

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.

See Notes to the Financial Statements.

EQUITY FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1%
Advertising – 0.1%
Harte-Hanks, Inc.		267,760		$2,364
Aerospace/Defense – 2.2%
AAR Corp.		286,343		7,826
Alliant Techsystems, Inc.		22,033		2,150
Cubic Corp.		78,925		4,237
Curtiss-Wright Corp.		194,276		9,123
Ducommun, Inc. *		14,959		429
Esterline Technologies Corp. *		136,361		10,894
Kaman Corp.		29,874		1,131
Moog, Inc., Class A *		261,573		15,346
Orbital Sciences Corp. *		79,273		1,679
				52,815
Agriculture – 0.6%
Andersons (The), Inc.		95,302		6,662
Universal Corp.		157,257		8,009
				14,671
Airlines – 0.4%
Hawaiian Holdings, Inc. *		35,546		264
JetBlue Airways Corp. *		1,417,819		9,443
				9,707
Apparel – 1.3%
Columbia Sportswear Co.		164,069		9,882
Iconix Brand Group, Inc. *		371,771		12,350
Jones Group (The), Inc.		249,800		3,750
Perry Ellis International, Inc.		68,426		1,289
Skechers U.S.A., Inc., Class A *		34,637		1,078
Steven Madden Ltd. *		39,101		2,105
Unifi, Inc. *		61,194		1,429
				31,883
Auto Manufacturers – 0.1%
Oshkosh Corp. *		60,237		2,950
Auto Parts & Equipment – 1.2%
Cooper Tire & Rubber Co.		193,378		5,956
Cooper-Standard Holding, Inc. *		12,188		609
Dana Holding Corp.		615,781		14,065
Miller Industries, Inc.		90,596		1,538
Remy International, Inc.		21,915		444
Standard Motor Products, Inc.		105,010		3,377
Superior Industries International, Inc.		164,772		2,938
				28,927
Banks – 13.8%
Arrow Financial Corp.		8,454		216

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Banks – 13.8% – continued
Bancfirst Corp.		43,683		$2,362
Banco Latinoamericano de Comercio Exterior S.A., Class E		9,800		244
BancorpSouth, Inc.		353,531		7,049
Bank of the Ozarks, Inc.		61,483		2,951
Banner Corp.		13,300		508
BBCN Bancorp, Inc.		339,001		4,665
Boston Private Financial Holdings, Inc.		54,128		601
Bryn Mawr Bank Corp.		9,249		249
Capital City Bank Group, Inc. *		43,875		517
Cardinal Financial Corp.		159,963		2,644
Cathay General Bancorp		340,998		7,969
Centerstate Banks, Inc.		20,604		199
Central Pacific Financial Corp.		28,710		508
Chemical Financial Corp.		267,968		7,482
City Holding Co.		104,611		4,523
Columbia Banking System, Inc.		123,444		3,049
Community Bank System, Inc.		313,243		10,688
Community Trust Bancorp, Inc.		130,163		5,283
CVB Financial Corp.		408,434		5,522
Eagle Bancorp, Inc. *		17,614		498
Financial Institutions, Inc.		33,062		676
First Commonwealth Financial Corp.		67,023		509
First Financial Bancorp		343,965		5,218
First Financial Corp.		96,286		3,040
First Financial Holdings, Inc.		115,008		6,344
First Interstate Bancsystem, Inc.		12,613		305
First Merchants Corp.		168,615		2,922
First Midwest Bancorp, Inc.		380,086		5,743
First of Long Island (The) Corp.		6,215		242
FirstMerit Corp.		445,241		9,666
FNB Corp.		901,169		10,931
Fulton Financial Corp.		215,722		2,520
German American Bancorp, Inc.		8,671		219
Glacier Bancorp, Inc.		95,860		2,369
Great Southern Bancorp, Inc.		9,324		263
Hancock Holding Co.		118,169		3,708
Hanmi Financial Corp.		75,153		1,245
Heartland Financial USA, Inc.		102,752		2,863
Home BancShares, Inc.		223,754		6,795
Iberiabank Corp.		85,490		4,434
Independent Bank Corp.		145,993		5,212
International Bancshares Corp.		507,685		10,981
Lakeland Bancorp, Inc.		262,112		2,949
Lakeland Financial Corp.		85,542		2,793

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Banks – 13.8% – continued
MainSource Financial Group, Inc.		45,761		$695
MB Financial, Inc.		50,529		1,427
National Bankshares, Inc.		27,569		989
National Penn Bancshares, Inc.		454,353		4,566
NBT Bancorp, Inc.		185,551		4,264
PacWest Bancorp		31,313		1,076
Park National Corp.		56,711		4,485
Peoples Bancorp, Inc.		28,845		602
Pinnacle Financial Partners, Inc. *		167,154		4,983
PrivateBancorp, Inc.		328,328		7,026
Prosperity Bancshares, Inc.		261,221		16,154
Renasant Corp.		227,139		6,171
S&T Bancorp, Inc.		185,338		4,489
Sandy Spring Bancorp, Inc.		101,385		2,358
Sierra Bancorp		127,972		2,013
Simmons First National Corp., Class A		11,303		351
StellarOne Corp.		159,949		3,599
Sterling Bancorp		114,391		1,571
Susquehanna Bancshares, Inc.		1,043,761		13,099
SVB Financial Group *		107,127		9,253
Texas Capital Bancshares, Inc. *		111,546		5,128
Trico Bancshares		133,051		3,031
TrustCo Bank Corp. NY		64,493		384
Trustmark Corp.		381,776		9,774
UMB Financial Corp.		221,249		12,023
Umpqua Holdings Corp.		432,475		7,015
Union First Market Bankshares Corp.		155,531		3,635
United Bankshares, Inc.		294,558		8,536
Univest Corp. of Pennsylvania		11,428		215
ViewPoint Financial Group, Inc.		27,349		565
Washington Banking Co.		51,145		719
Washington Trust Bancorp, Inc.		144,492		4,541
Webster Financial Corp.		382,314		9,761
WesBanco, Inc.		124,532		3,702
Wilshire Bancorp, Inc.		292,601		2,394
Wintrust Financial Corp.		151,951		6,241
				326,509
Biotechnology – 0.2%
Bio-Rad Laboratories, Inc., Class A *		19,531		2,296
Cambrex Corp. *		20,560		271
PDL BioPharma, Inc.		315,826		2,517
Spectrum Pharmaceuticals, Inc.		41,095		345
				5,429

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Building Materials – 1.9%
Apogee Enterprises, Inc.		216,735		$6,433
Comfort Systems USA, Inc.		266,219		4,475
Gibraltar Industries, Inc. *		327,741		4,674
Griffon Corp.		338,195		4,241
Louisiana-Pacific Corp. *		219,579		3,862
Quanex Building Products Corp.		220,564		4,153
Simpson Manufacturing Co., Inc.		212,973		6,936
Texas Industries, Inc. *		51,814		3,436
Universal Forest Products, Inc.		154,230		6,493
				44,703
Chemicals – 2.9%
A. Schulman, Inc.		157,774		4,648
Aceto Corp.		306,061		4,781
Axiall Corp.		138,964		5,252
Cabot Corp.		132,478		5,658
Cytec Industries, Inc.		53,965		4,391
H.B. Fuller Co.		163,847		7,404
Innophos Holdings, Inc.		63,853		3,370
Minerals Technologies, Inc.		165,080		8,150
Olin Corp.		331,420		7,646
OM Group, Inc. *		244,531		8,260
Sensient Technologies Corp.		175,571		8,408
				67,968
Coal – 0.2%
Arch Coal, Inc.		24,689		102
Cloud Peak Energy, Inc. *		324,201		4,756
				4,858
Commercial Services – 3.7%
Aaron’s, Inc.		51,898		1,437
ABM Industries, Inc.		262,443		6,986
Barrett Business Services, Inc.		31,302		2,107
Bridgepoint Education, Inc. *		37,043		668
Brink’s (The) Co.		24,191		685
CDI Corp.		162,584		2,489
Consolidated Graphics, Inc. *		6,598		370
Convergys Corp.		567,420		10,639
Corporate Executive Board (The) Co.		17,263		1,254
Electro Rent Corp.		180,645		3,277
Ennis, Inc.		256,835		4,633
Global Cash Access Holdings, Inc. *		45,332		354
Great Lakes Dredge & Dock Corp.		192,015		1,425
ICF International, Inc. *		13,499		478
Kforce, Inc.		102,869		1,820

See Notes to the Financial Statements.

EQUITY FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Commercial Services – 3.7% – continued
Korn/Ferry International *		231,429		$4,952
MAXIMUS, Inc.		130,256		5,867
Multi-Color Corp.		105,745		3,588
Navigant Consulting, Inc. *		34,530		534
PHH Corp. *		498,859		11,843
Rent-A-Center, Inc.		350,758		13,364
Resources Connection, Inc.		27,928		379
Valassis Communications, Inc.		26,581		768
Viad Corp.		223,984		5,588
VistaPrint N.V. *		32,135		1,816
				87,321
Computers – 1.9%
Brocade Communications Systems, Inc. *		1,048,924		8,444
CACI International, Inc., Class A *		149,099		10,304
Cray, Inc. *		22,663		545
Electronics For Imaging, Inc. *		302,553		9,585
Insight Enterprises, Inc. *		429,367		8,124
Lexmark International, Inc., Class A		43,140		1,424
Mentor Graphics Corp.		274,855		6,423
Sykes Enterprises, Inc. *		10,071		180
				45,029
Cosmetics/Personal Care – 0.3%
Elizabeth Arden, Inc. *		71,293		2,632
Inter Parfums, Inc.		118,691		3,560
				6,192
Distribution/Wholesale – 0.7%
Core-Mark Holding Co., Inc.		88,564		5,884
Owens & Minor, Inc.		71,397		2,470
United Stationers, Inc.		176,333		7,670
				16,024
Diversified Financial Services – 1.7%
Air Lease Corp.		68,088		1,883
Aircastle Ltd.		225,644		3,928
Arlington Asset Investment Corp., Class A		21,593		514
Calamos Asset Management, Inc., Class A		94,604		945
Encore Capital Group, Inc. *		159,854		7,331
GFI Group, Inc.		170,951		675
Janus Capital Group, Inc.		269,930		2,297
Marlin Business Services Corp.		8,805		220
Nelnet, Inc., Class A		214,045		8,230
NewStar Financial, Inc. *		121,806		2,225
Oppenheimer Holdings, Inc., Class A		42,273		751
Outerwall, Inc. *		18,234		912

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Diversified Financial Services – 1.7% – continued
Stifel Financial Corp. *		150,894		$6,220
World Acceptance Corp. *		56,624		5,092
				41,223
Electric – 4.3%
ALLETE, Inc.		177,084		8,553
Avista Corp.		304,204		8,031
Black Hills Corp.		157,529		7,855
Cleco Corp.		272,369		12,213
El Paso Electric Co.		275,427		9,199
Empire District Electric Co.		186,280		4,035
Great Plains Energy, Inc.		35,467		787
IDACORP, Inc.		306,324		14,826
NorthWestern Corp.		189,733		8,523
Otter Tail Corp.		157,653		4,351
Pike Electric Corp.		21,657		245
PNM Resources, Inc.		363,944		8,236
Portland General Electric Co.		167,240		4,721
UNS Energy Corp.		215,198		10,033
				101,608
Electrical Components & Equipment – 0.4%
Advanced Energy Industries, Inc. *		109,312		1,915
Encore Wire Corp.		31,959		1,260
EnerSys, Inc.		84,753		5,139
Powell Industries, Inc. *		8,185		502
				8,816
Electronics – 3.1%
Benchmark Electronics, Inc. *		329,696		7,547
Brady Corp., Class A		328,037		10,005
CTS Corp.		354,826		5,595
ESCO Technologies, Inc.		18,098		601
Newport Corp. *		138,398		2,163
Park Electrochemical Corp.		117,428		3,364
Plexus Corp. *		171,686		6,387
Rofin-Sinar Technologies, Inc. *		217,536		5,266
Rogers Corp. *		122,708		7,299
Sanmina Corp. *		531,437		9,295
Tech Data Corp. *		13,767		687
Vishay Intertechnology, Inc. *		39,403		508
Watts Water Technologies, Inc., Class A		224,034		12,629
Woodward, Inc.		35,579		1,453
Zygo Corp. *		12,679		203
				73,002

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Energy - Alternate Sources – 0.1%
REX American Resources Corp. *		70,155		$2,157
Engineering & Construction – 1.3%
Aegion Corp. *		76,379		1,813
Dycom Industries, Inc. *		315,574		8,833
EMCOR Group, Inc.		375,471		14,692
Granite Construction, Inc.		196,122		6,001
MYR Group, Inc. *		14,365		349
				31,688
Entertainment – 0.3%
Carmike Cinemas, Inc. *		12,215		270
International Speedway Corp., Class A		91,070		2,941
Vail Resorts, Inc.		41,766		2,898
				6,109
Environmental Control – 0.4%
Darling International, Inc. *		303,702		6,426
Mine Safety Appliances Co.		18,882		975
Tetra Tech, Inc. *		44,450		1,151
				8,552
Food – 0.7%
Cal-Maine Foods, Inc.		16,498		793
Dole Food Co., Inc. *		124,951		1,702
Fresh Del Monte Produce, Inc.		313,945		9,318
Harris Teeter Supermarkets, Inc.		23,908		1,176
Ingles Markets, Inc., Class A		8,900		256
Sanderson Farms, Inc.		24,530		1,600
Seneca Foods Corp., Class A *		50,709		1,526
Spartan Stores, Inc.		14,990		331
Weis Markets, Inc.		18,415		901
				17,603
Forest Products & Paper – 1.2%
Boise, Inc.		649,563		8,184
Domtar Corp.		63,866		5,072
KapStone Paper and Packaging Corp.		138,193		5,915
Mercer International, Inc. *		321,603		2,280
Neenah Paper, Inc.		29,010		1,140
PH Glatfelter Co.		199,582		5,403
Schweitzer-Mauduit International, Inc.		16,732		1,013
				29,007
Gas – 1.3%
Chesapeake Utilities Corp.		6,583		346
Laclede Group (The), Inc.		100,662		4,530
South Jersey Industries, Inc.		60,400		3,538

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Gas – 1.3% – continued
Southwest Gas Corp.		272,622		$13,631
WGL Holdings, Inc.		177,289		7,572
				29,617
Hand/Machine Tools – 0.1%
Regal-Beloit Corp.		30,798		2,092
Healthcare - Products – 1.4%
AngioDynamics, Inc. *		163,845		2,163
Cantel Medical Corp.		124,776		3,974
CONMED Corp.		293,775		9,985
CryoLife, Inc.		253,400		1,774
Cynosure, Inc., Class A *		14,879		339
Greatbatch, Inc. *		189,879		6,462
Hanger, Inc. *		128,199		4,328
Natus Medical, Inc. *		20,803		295
Orthofix International N.V. *		13,318		278
PhotoMedex, Inc. *		14,218		226
Symmetry Medical, Inc. *		25,519		208
Teleflex, Inc.		28,145		2,316
				32,348
Healthcare - Services – 2.0%
Amedisys, Inc. *		125,919		2,168
Amsurg Corp. *		168,311		6,682
Capital Senior Living Corp. *		99,552		2,106
Centene Corp. *		94,621		6,052
Five Star Quality Care, Inc. *		471,345		2,437
Health Net, Inc. *		54,319		1,722
HealthSouth Corp.		59,712		2,059
LHC Group, Inc. *		12,043		283
LifePoint Hospitals, Inc. *		144,721		6,748
Magellan Health Services, Inc. *		107,446		6,442
Medcath Corp. (1)		106,845		–
National Healthcare Corp.		9,625		455
RadNet, Inc. *		152,162		367
Select Medical Holdings Corp.		95,513		771
Triple-S Management Corp., Class B *		200,396		3,685
Universal American Corp.		340,540		2,595
WellCare Health Plans, Inc. *		54,466		3,798
				48,370
Home Builders – 0.7%
Beazer Homes USA, Inc. *		73,311		1,320
Hovnanian Enterprises, Inc., Class A *		235,435		1,231
KB Home		149,066		2,686
MDC Holdings, Inc.		55,598		1,668

See Notes to the Financial Statements.

EQUITY FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Home Builders – 0.7% – continued
Meritage Homes Corp. *		110,184		$4,732
Ryland Group (The), Inc.		38,222		1,550
Standard Pacific Corp. *		512,757		4,056
				17,243
Home Furnishings – 0.5%
Ethan Allen Interiors, Inc.		114,258		3,184
Hooker Furniture Corp.		88,433		1,322
Kimball International, Inc., Class B		20,452		227
La-Z-Boy, Inc.		190,924		4,336
VOXX International Corp. *		183,741		2,517
				11,586
Household Products/Wares – 0.4%
ACCO Brands Corp. *		77,725		516
CSS Industries, Inc.		76,867		1,845
Helen of Troy Ltd. *		161,330		7,131
				9,492
Insurance – 5.0%
American Equity Investment Life Holding Co.		357,455		7,585
AMERISAFE, Inc.		71,300		2,532
Argo Group International Holdings Ltd.		28,043		1,202
Baldwin & Lyons, Inc., Class B		8,413		205
CNO Financial Group, Inc.		1,056,711		15,217
EMC Insurance Group, Inc.		57,030		1,721
Employers Holdings, Inc.		194,854		5,795
Endurance Specialty Holdings Ltd.		48,187		2,589
FBL Financial Group, Inc., Class A		23,345		1,048
First American Financial Corp.		370,554		9,023
Horace Mann Educators Corp.		287,759		8,167
Infinity Property & Casualty Corp.		3,500		226
Kemper Corp.		49,934		1,678
MGIC Investment Corp. *		439,376		3,199
Montpelier Re Holdings Ltd.		204,896		5,337
Navigators Group (The), Inc. *		115,633		6,680
Platinum Underwriters Holdings Ltd.		107,900		6,445
Primerica, Inc.		177,933		7,178
ProAssurance Corp.		42,320		1,907
Radian Group, Inc.		207,510		2,891
RLI Corp.		63,051		5,512
Safety Insurance Group, Inc.		36,876		1,953
Selective Insurance Group, Inc.		80,880		1,981
StanCorp Financial Group, Inc.		156,897		8,632
Stewart Information Services Corp.		15,351		491

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Insurance – 5.0% – continued
Symetra Financial Corp.		364,465		$6,495
United Fire Group, Inc.		101,545		3,094
				118,783
Internet – 0.9%
AOL, Inc. *		53,023		1,834
AsiaInfo-Linkage, Inc. *		16,008		185
Bankrate, Inc. *		68,492		1,409
Blucora, Inc. *		343,004		7,882
Dealertrack Technologies, Inc. *		37,172		1,592
ICG Group, Inc. *		26,018		369
PC-Tel, Inc.		126,160		1,117
Perficient, Inc. *		22,932		421
Sapient Corp. *		72,155		1,123
United Online, Inc.		658,814		5,257
				21,189
Investment Companies – 1.1%
Apollo Investment Corp.		792,980		6,463
Ares Capital Corp.		117,199		2,026
BlackRock Kelso Capital Corp.		236,489		2,244
Gladstone Capital Corp.		55,030		480
Hercules Technology Growth Capital, Inc.		342,923		5,230
Main Street Capital Corp.		32,074		960
Medallion Financial Corp.		14,944		222
MVC Capital, Inc.		161,979		2,116
Prospect Capital Corp.		476,346		5,326
				25,067
Iron/Steel – 0.1%
Steel Dynamics, Inc.		150,886		2,521
Leisure Time – 0.3%
Life Time Fitness, Inc. *		29,471		1,517
WMS Industries, Inc. *		173,198		4,494
				6,011
Lodging – 0.2%
Marcus Corp.		258,988		3,763
Machinery - Construction & Mining – 0.3%
Hyster-Yale Materials Handling, Inc.		89,690		8,043
Machinery - Diversified – 0.9%
Briggs & Stratton Corp.		417,355		8,397
Cognex Corp.		224,934		7,054
Columbus McKinnon Corp. *		13,409		322
Hollysys Automation Technologies Ltd. *		38,337		573
Intevac, Inc. *		185,499		1,087

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Machinery - Diversified – 0.9% – continued
Kadant, Inc.		37,602		$1,263
NACCO Industries, Inc., Class A		50,798		2,816
				21,512
Media – 1.1%
Digital Generation, Inc. *		46,671		604
Entercom Communications Corp., Class A *		297,620		2,613
EW Scripps (The) Co., Class A *		39,023		716
Journal Communications, Inc., Class A *		552,645		4,725
Meredith Corp.		128,369		6,113
New York Times (The) Co., Class A *		101,923		1,281
Scholastic Corp.		265,834		7,616
Washington Post (The) Co., Class B		5,081		3,106
				26,774
Metal Fabrication/Hardware – 0.2%
A.M. Castle & Co. *		120,725		1,944
Haynes International, Inc.		8,443		383
Olympic Steel, Inc.		68,411		1,900
RTI International Metals, Inc. *		20,901		670
				4,897
Mining – 0.6%
Coeur Mining, Inc. *		221,763		2,672
Hecla Mining Co.		269,888		848
Kaiser Aluminum Corp.		57,883		4,124
Materion Corp.		197,190		6,322
Stillwater Mining Co. *		50,602		557
				14,523
Miscellaneous Manufacturing – 1.6%
A.O. Smith Corp.		75,220		3,400
Actuant Corp., Class A		15,264		593
American Railcar Industries, Inc.		14,618		573
Barnes Group, Inc.		285,307		9,963
EnPro Industries, Inc. *		38,579		2,323
Fabrinet *		23,705		399
Movado Group, Inc.		17,471		764
Myers Industries, Inc.		315,149		6,338
Standex International Corp.		102,366		6,080
Tredegar Corp.		152,252		3,959
Trinity Industries, Inc.		54,224		2,459
				36,851
Office Furnishings – 0.0%
Steelcase, Inc., Class A		54,326		903

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Oil & Gas – 2.3%
Alon USA Energy, Inc.		188,056		$1,920
Approach Resources, Inc. *		34,889		917
Callon Petroleum Co. *		277,382		1,517
Carrizo Oil & Gas, Inc. *		101,219		3,777
Delek US Holdings, Inc.		182,092		3,840
Energy XXI Bermuda Ltd.		54,341		1,641
EPL Oil & Gas, Inc. *		26,876		997
Forest Oil Corp. *		27,497		168
Gran Tierra Energy, Inc. *		474,078		3,361
Northern Oil and Gas, Inc. *		43,667		630
Parker Drilling Co. *		81,549		465
Patterson-UTI Energy, Inc.		100,245		2,143
PDC Energy, Inc. *		163,359		9,727
Resolute Energy Corp. *		90,478		757
Rex Energy Corp. *		110,672		2,468
Stone Energy Corp. *		352,274		11,424
Vaalco Energy, Inc. *		449,983		2,511
W&T Offshore, Inc.		308,471		5,466
Western Refining, Inc.		56,721		1,704
				55,433
Oil & Gas Services – 2.1%
Basic Energy Services, Inc. *		37,270		471
C&J Energy Services, Inc. *		37,047		744
Dawson Geophysical Co. *		5,513		179
Dril-Quip, Inc. *		18,332		2,104
Helix Energy Solutions Group, Inc. *		325,911		8,268
Hornbeck Offshore Services, Inc. *		254,358		14,610
Key Energy Services, Inc. *		720,923		5,256
Matrix Service Co. *		17,849		350
Natural Gas Services Group, Inc. *		143,803		3,857
Newpark Resources, Inc. *		731,847		9,265
Pioneer Energy Services Corp. *		299,781		2,251
SEACOR Holdings, Inc.		13,767		1,245
Steel Excel, Inc. *		23,633		694
Tesco Corp. *		26,664		442
TETRA Technologies, Inc. *		53,583		672
				50,408
Pharmaceuticals – 0.2%
Hi-Tech Pharmacal Co., Inc.		9,291		401
Impax Laboratories, Inc. *		46,889		961
Nutraceutical International Corp.		92,280		2,191
PharMerica Corp. *		20,331		270
Sciclone Pharmaceuticals, Inc. *		37,022		188

See Notes to the Financial Statements.

EQUITY FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Pharmaceuticals – 0.2% – continued
VCA Antech, Inc. *		60,611		$1,664
				5,675
Pipelines – 0.3%
Crosstex Energy, Inc.		271,155		5,665
Enbridge Energy Management LLC *		60,496		1,741
SemGroup Corp., Class A		7,878		449
				7,855
Real Estate Investment Trusts – 10.3%
Acadia Realty Trust		147,433		3,639
AG Mortgage Investment Trust, Inc.		61,228		1,018
Agree Realty Corp.		109,518		3,305
American Assets Trust, Inc.		27,184		829
Anworth Mortgage Asset Corp.		808,415		3,905
ARMOUR Residential REIT, Inc.		778,615		3,270
Associated Estates Realty Corp.		34,482		514
Campus Crest Communities, Inc.		44,193		477
CapLease, Inc.		91,109		773
Capstead Mortgage Corp.		461,547		5,432
CBL & Associates Properties, Inc.		268,493		5,128
Cedar Realty Trust, Inc.		582,380		3,017
Chesapeake Lodging Trust		33,251		783
Chimera Investment Corp.		703,497		2,139
Colonial Properties Trust		288,851		6,496
Corporate Office Properties Trust		69,961		1,616
DiamondRock Hospitality Co.		649,455		6,930
DuPont Fabros Technology, Inc.		174,844		4,506
Dynex Capital, Inc.		218,426		1,916
EPR Properties		271,215		13,219
Equity One, Inc.		301,716		6,595
First Industrial Realty Trust, Inc.		292,572		4,760
First Potomac Realty Trust		263,467		3,312
Franklin Street Properties Corp.		382,424		4,872
Geo Group (The), Inc.		284,273		9,452
Gladstone Commercial Corp.		39,430		708
Government Properties Income Trust		122,800		2,939
Healthcare Realty Trust, Inc.		249,172		5,758
Highwoods Properties, Inc.		228,308		8,062
Invesco Mortgage Capital, Inc.		418,674		6,443
Investors Real Estate Trust		352,364		2,907
Kite Realty Group Trust		404,996		2,402
LaSalle Hotel Properties		452,424		12,903
Lexington Realty Trust		327,883		3,682
LTC Properties, Inc.		192,463		7,310

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Real Estate Investment Trusts – 10.3% – continued
Mack-Cali Realty Corp.		60,193		$1,321
Medical Properties Trust, Inc.		912,142		11,101
MFA Financial, Inc.		540,270		4,025
National Health Investors, Inc.		92,376		5,255
New York Mortgage Trust, Inc.		132,118		826
NorthStar Realty Finance Corp.		773,411		7,177
One Liberty Properties, Inc.		65,734		1,333
Pebblebrook Hotel Trust		42,043		1,207
Pennsylvania Real Estate Investment Trust		301,137		5,631
Piedmont Office Realty Trust, Inc., Class A		114,779		1,993
PS Business Parks, Inc.		49,381		3,685
Ramco-Gershenson Properties Trust		249,507		3,845
Redwood Trust, Inc.		497,332		9,792
Resource Capital Corp.		594,599		3,532
Retail Opportunity Investments Corp.		45,478		628
RLJ Lodging Trust		418,180		9,823
Silver Bay Realty Trust Corp.		29,922		469
Starwood Property Trust, Inc.		173,011		4,147
Strategic Hotels & Resorts, Inc. *		574,305		4,985
Sunstone Hotel Investors, Inc.		65,139		830
Two Harbors Investment Corp.		310,658		3,016
Washington Real Estate Investment Trust		185,981		4,700
Weingarten Realty Investors		123,922		3,635
Winthrop Realty Trust		22,687		253
				244,226
Retail – 4.6%
Aeropostale, Inc. *		82,529		776
Biglari Holdings, Inc. *		982		405
Bob Evans Farms, Inc.		183,766		10,524
Casey’s General Stores, Inc.		60,744		4,465
Cash America International, Inc.		19,534		884
Children’s Place Retail Stores (The), Inc. *		15,396		891
DineEquity, Inc.		13,249		914
Einstein Noah Restaurant Group, Inc.		49,393		855
Fifth & Pacific Cos., Inc. *		280,636		7,052
Finish Line (The), Inc., Class A		33,711		838
Fred’s, Inc., Class A		373,269		5,842
Genesco, Inc. *		16,438		1,078
Group 1 Automotive, Inc.		96,700		7,512
Haverty Furniture Cos., Inc.		117,527		2,883
hhgregg, Inc. *		21,355		382
Men’s Wearhouse (The), Inc.		361,297		12,302
Pantry (The), Inc. *		163,499		1,812
PC Connection, Inc.		202,841		3,061

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 65 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Retail – 4.6% – continued
Penske Automotive Group, Inc.		259,914		$11,106
Pep Boys-Manny Moe & Jack (The) *		272,080		3,393
Pricesmart, Inc.		15,089		1,437
Rush Enterprises, Inc., Class A *		152,284		4,037
Saks, Inc. *		683,252		10,891
Shoe Carnival, Inc.		93,551		2,527
Sonic Automotive, Inc., Class A		122,971		2,927
Stage Stores, Inc.		284,539		5,463
Texas Roadhouse, Inc.		61,791		1,624
Wet Seal (The), Inc., Class A *		329,501		1,295
World Fuel Services Corp.		15,886		593
				107,769
Savings & Loans – 2.2%
Astoria Financial Corp.		306,317		3,811
BankFinancial Corp.		64,979		580
Berkshire Hills Bancorp, Inc.		69,797		1,753
Brookline Bancorp, Inc.		47,766		449
Dime Community Bancshares, Inc.		324,801		5,408
Flushing Financial Corp.		351,476		6,485
Northwest Bancshares, Inc.		333,297		4,406
OceanFirst Financial Corp.		88,203		1,492
Oritani Financial Corp.		31,062		511
Provident Financial Services, Inc.		496,640		8,051
Provident New York Bancorp		253,210		2,757
United Financial Bancorp, Inc.		176,485		2,854
Washington Federal, Inc.		383,624		7,933
WSFS Financial Corp.		75,825		4,568
				51,058
Semiconductors – 3.2%
Amkor Technology, Inc. *		378,719		1,625
ATMI, Inc. *		167,550		4,443
Brooks Automation, Inc.		590,406		5,497
Cirrus Logic, Inc. *		43,388		984
Diodes, Inc. *		31,518		772
Entegris, Inc. *		773,656		7,853
Fairchild Semiconductor International, Inc. *		74,945		1,041
GSI Technology, Inc. *		160,648		1,129
Intersil Corp., Class A		444,907		4,996
Kulicke & Soffa Industries, Inc. *		351,838		4,064
Lattice Semiconductor Corp. *		201,421		898
LTX-Credence Corp. *		109,465		720
MKS Instruments, Inc.		388,599		10,333
Nanometrics, Inc. *		57,275		923

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Semiconductors – 3.2% – continued
OmniVision Technologies, Inc. *		247,463		$3,789
Photronics, Inc. *		323,154		2,530
Power Integrations, Inc.		25,161		1,363
QLogic Corp. *		178,120		1,949
Rudolph Technologies, Inc. *		22,359		255
Semtech Corp. *		34,188		1,025
Silicon Image, Inc. *		357,183		1,907
Tessera Technologies, Inc.		181,868		3,519
TriQuint Semiconductor, Inc. *		889,486		7,232
Ultra Clean Holdings, Inc. *		99,254		686
Veeco Instruments, Inc. *		171,116		6,371
				75,904
Software – 1.7%
Acxiom Corp. *		245,537		6,971
Advent Software, Inc.		44,763		1,421
Blackbaud, Inc.		22,298		870
CSG Systems International, Inc.		23,249		582
Ebix, Inc.		21,099		210
Epiq Systems, Inc.		24,825		328
Fair Isaac Corp.		25,486		1,409
MicroStrategy, Inc., Class A *		9,769		1,014
Progress Software Corp. *		96,749		2,504
PTC, Inc. *		60,473		1,719
Schawk, Inc.		162,042		2,405
SS&C Technologies Holdings, Inc. *		41,017		1,563
SYNNEX Corp. *		221,828		13,631
Take-Two Interactive Software, Inc. *		255,121		4,633
				39,260
Storage/Warehousing – 0.4%
Mobile Mini, Inc. *		286,801		9,768
Telecommunications – 2.0%
Anaren, Inc. *		9,053		231
ARRIS Group, Inc. *		436,696		7,450
Black Box Corp.		11,044		338
Comtech Telecommunications Corp.		76,465		1,859
Consolidated Communications Holdings, Inc.		7,413		128
Extreme Networks, Inc. *		525,277		2,742
Finisar Corp. *		406,336		9,195
General Communication, Inc., Class A *		262,384		2,498
Globecomm Systems, Inc. *		16,193		227
Iridium Communications, Inc. *		52,437		361
NETGEAR, Inc. *		119,984		3,703

See Notes to the Financial Statements.

EQUITY FUNDS 66 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Telecommunications – 2.0% – continued
Oplink Communications, Inc. *		171,842		$3,234
Premiere Global Services, Inc. *		411,924		4,103
RF Micro Devices, Inc. *		1,107,756		6,248
Shenandoah Telecommunications Co.		16,422		396
Telephone & Data Systems, Inc.		150,956		4,461
				47,174
Textiles – 0.4%
G&K Services, Inc., Class A		144,478		8,725
UniFirst Corp.		17,736		1,852
				10,577
Toys, Games & Hobbies – 0.0%
LeapFrog Enterprises, Inc. *		43,630		411
Transportation – 2.1%
Bristow Group, Inc.		224,717		16,350
Golar LNG Ltd.		55,113		2,076
Gulfmark Offshore, Inc., Class A		241,105		12,270
Marten Transport Ltd.		22,743		390
Patriot Transportation Holding, Inc. *		6,534		221
PHI, Inc. (Non Voting) *		93,544		3,527
Saia, Inc. *		180,680		5,634
Ship Finance International Ltd.		390,487		5,963
Tidewater, Inc.		33,879		2,009
Universal Truckload Services, Inc.		36,229		966
				49,406
Trucking & Leasing – 0.6%
AMERCO		25,913		4,771
Greenbrier Cos., Inc. *		120,731		2,986
TAL International Group, Inc.		112,591		5,261
Willis Lease Finance Corp. *		30,630		482
				13,500
Total Common Stocks
(Cost $1,687,767)				2,277,124
CONVERTIBLE PREFERRED STOCKS – 0.0%
Healthcare - Products – 0.0%
Alere, Inc., 3.00%		3,306		858
Total Convertible Preferred Stocks
(Cost $723)				858

	NUMBER OF SHARES		VALUE (000s)
MASTER LIMITED PARTNERSHIPS – 0.2%
Holding Companies - Diversified – 0.2%
Compass Diversified Holdings		220,951		$3,937
Total Master Limited Partnerships
(Cost $2,416)				3,937
OTHER – 0.0% (2)
Escrow DLB Oil & Gas		2,100		–
Escrow Gerber Scientific, Inc.		264,734		–
Total Other
(Cost $ – )				–
INVESTMENT COMPANIES – 2.4%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (3)(4)		57,918,266		57,918
Total Investment Companies
(Cost $57,918)				57,918
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.3%
U.S. Treasury Bill, 0.08%, 10/17/13 (5)		$7,209		$7,209
Total Short-Term Investments
(Cost $7,209)				7,209
Total Investments – 99.0%
(Cost $1,756,033)				2,347,046
Other Assets less Liabilities – 1.0%				23,101
NET ASSETS – 100.0%				$2,370,147

(1) Level 3 asset that is worthless, bankrupt or has been delisted.

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

(3) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $74,172,000 with net sales of approximately $16,254,000 during the six months ended September 30, 2013.

(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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 67 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the Small Cap Value Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000s)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000s)
E-mini S&P 500		31		$2,595		Long		12/13		$42
E-mini S&P MidCap 400		93		11,538		Long		12/13		139
Russell 2000 Mini Index		707		75,748		Long		12/13		1,138
Total										$1,319

At September 30, 2013, the industry sectors for the Small Cap Value Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.4%
Consumer Staples		2.4
Energy		7.2
Financials		35.8
Health Care		4.1
Industrials		14.0
Information Technology		13.1
Materials		5.8
Telecommunication Services		0.5
Utilities		5.7
Total		100.0%

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$2,277,124	(1)		$ –		$–		$2,277,124
Convertible Preferred Stocks		858	(1)		–		–		858
Master Limited Partnerships		3,937	(1)		–		–		3,937
Investment Companies		57,918			–		–		57,918
Short-Term Investments		–			7,209		–		7,209
Total Investments		$2,339,837			$7,209		$–		$2,347,046

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$1,319		$–		$–		$1,319

(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 September 30, 2013, there were no transfers between Level 1, Level 2, or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

EQUITY FUNDS 68 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

TECHNOLOGY FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.0%
Biotechnology – 3.9%
Alexion Pharmaceuticals, Inc. *		6,332		$735
Celgene Corp. *		3,146		484
Gilead Sciences, Inc. *		16,037		1,008
Illumina, Inc. *		10,563		854
				3,081
Commercial Services – 1.2%
Mastercard, Inc., Class A		1,390		935
Computers – 20.4%
Accenture PLC, Class A		11,868		874
Apple, Inc.		7,329		3,494
Cognizant Technology Solutions Corp., Class A *		25,845		2,122
EMC Corp.		84,459		2,159
Fortinet, Inc. *		58,031		1,176
International Business Machines Corp.		3,648		675
NetApp, Inc.		23,159		987
Qualys, Inc. *		28,499		610
Riverbed Technology, Inc. *		50,184		732
SanDisk Corp.		17,136		1,020
Teradata Corp. *		41,911		2,324
				16,173
Electronics – 3.9%
Amphenol Corp., Class A		9,680		749
FEI Co.		14,826		1,302
Trimble Navigation Ltd. *		36,206		1,075
				3,126
Healthcare - Products – 2.4%
Hologic, Inc. *		54,754		1,131
Intuitive Surgical, Inc. *		2,141		805
				1,936
Internet – 16.0%
Amazon.com, Inc. *		2,072		648
Brightcove, Inc. *		40,675		458
eBay, Inc. *		14,725		822
F5 Networks, Inc. *		18,603		1,595
Google, Inc., Class A *		4,050		3,547
LinkedIn Corp., Class A *		7,568		1,862
priceline.com, Inc. *		923		933
Rackspace Hosting, Inc. *		19,213		1,014
Splunk, Inc. *		12,560		754
TIBCO Software, Inc. *		41,787		1,069
				12,702

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.0% – continued
Pharmaceuticals – 3.9%
Allergan, Inc.		10,388		$940
BioMarin Pharmaceutical, Inc. *		12,574		908
Jazz Pharmaceuticals PLC *		7,730		711
Medivation, Inc. *		9,150		548
				3,107
Semiconductors – 17.0%
Altera Corp.		21,588		802
ARM Holdings PLC ADR		34,091		1,641
ASML Holding N.V. (Registered)		10,226		1,010
Broadcom Corp., Class A		41,575		1,081
Intel Corp.		36,257		831
KLA-Tencor Corp.		21,816		1,328
Lam Research Corp. *		16,390		839
Linear Technology Corp.		28,094		1,114
Microchip Technology, Inc.		38,228		1,540
NXP Semiconductor N.V. *		25,786		960
QUALCOMM, Inc.		19,736		1,329
Xilinx, Inc.		20,827		976
				13,451
Software – 21.7%
Activision Blizzard, Inc.		36,012		600
Check Point Software Technologies Ltd. *		20,212		1,143
Citrix Systems, Inc. *		26,709		1,886
Fiserv, Inc. *		8,800		889
Imperva, Inc. *		12,080		508
Informatica Corp. *		22,945		894
Microsoft Corp.		21,801		726
Oracle Corp.		70,567		2,341
Proofpoint, Inc. *		33,104		1,063
Qlik Technologies, Inc. *		23,990		822
Red Hat, Inc. *		26,996		1,246
Salesforce.com, Inc. *		50,028		2,597
ServiceNow, Inc. *		8,275		430
SolarWinds, Inc. *		21,827		765
VMware, Inc., Class A *		16,288		1,318
				17,228
Telecommunications – 7.6%
Amdocs Ltd.		30,601		1,121
Aruba Networks, Inc. *		66,898		1,113
Cisco Systems, Inc.		96,964		2,271
Juniper Networks, Inc. *		51,019		1,013

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 69 EQUITY FUNDS

SCHEDULE OF INVESTMENTS

TECHNOLOGY FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.0% – continued
Telecommunications – 7.6% – continued
Procera Networks, Inc. *		33,266		$516
				6,034
Total Common Stocks
(Cost $63,708)				77,773
INVESTMENT COMPANIES – 1.6%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		1,311,657		1,312
Total Investment Companies
(Cost $1,312)				1,312
Total Investments – 99.6%
(Cost $65,020)				79,085
Other Assets less Liabilities – 0.4%				314
NET ASSETS – 100.0%				$79,399

(1) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $966,000 with net purchases of approximately $346,000 during the six months ended September 30, 2013.

(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 September 30, 2013, the industry sectors for the Technology Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		2.0%
Health Care		10.5
Information Technology		87.5
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$77,773	(1)		$–		$–		$77,773
Investment Companies		1,312			–		–		1,312
Total Investments		$79,085			$–		$–		$79,085

(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 Sepetmber 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

EQUITY FUNDS 70 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (UNAUDITED)

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Enhanced Large Cap, Income Equity, International Equity, Large Cap Equity, Large Cap Growth, Large Cap Value, Small Cap Core, Small Cap Value and Technology Funds (each a “Fund” and collectively, the “Funds”) are separate, diversified investment portfolios of the Trust. Each of the Funds is presented herein.

Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.

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

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

Shares of open-end investment companies are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.

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

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 of the Funds’ Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as

NORTHERN FUNDS SEMIANNUAL REPORT 71 EQUITY FUNDS

EQUITY FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. The 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.

The NTGI PVC is responsible for making the final determination of the fair value of a security. In making its determination, the NTGI PVC considers factors that it deems appropriate to the determination of the fair value of a 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 transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

For each Level 3 security, if any, 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.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund will sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund will do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund will purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund will utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. A Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts, in Net realized gains (losses) on futures contracts, and any unrealized gains or losses on open futures contracts in Net change in unrealized appreciation (depreciation) on futures contracts. Further information on the impact of these positions on the Fund’s financial statements can be found in Note 9.

At September 30, 2013, the Small Cap Core and Small Cap Value Funds had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $125,000 and $7,209,000, respectively. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

C) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The realized gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.

D) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS Certain Funds are authorized to enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge against either specific transactions or portfolio positions, or as a cross-hedge transaction or for speculative purposes. The objective of a Fund’s foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of a Fund’s foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are marked-to-market daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.

EQUITY FUNDS 72 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The Funds bear the market risk from changes in foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. No forward foreign currency exchange contracts were held by the Funds during the six months ended September 30, 2013.

E) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available. Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are comprised of return of capital, capital gains and income. The actual character of the amounts received during the year are not known until the fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. A Fund’s characterization may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.

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

G) REDEMPTION FEES The International Equity Fund charges a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Fund uses a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Fund and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Fund. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Fund’s prospectus.

Redemption fees for the six months ended September 30, 2013, were approximately $1,000 for the International Equity Fund. Redemption fees for the fiscal year ended March 31, 2013, were approximately $2,000 for the International Equity Fund. These amounts are included in “Payments for Shares Redeemed” in Note 8 — Capital Share Transactions. The impact from redemption fees paid to the Fund was less than $0.001 per share.

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

	DECLARATION AND PAYMENT FREQUENCY
Enhanced Large Cap		Quarterly
Income Equity		Monthly
International Equity		Annually
Large Cap Equity		Quarterly
Large Cap Growth		Annually
Large Cap Value		Annually
Small Cap Core		Annually
Small Cap Value		Annually
Technology		Annually

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. These reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to net operating losses, Section 988 currency gains and losses, Passive Foreign Investment Companies (“PFICs”) gains and losses, recharacterization of dividends received from investments in REITs, expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the net

NORTHERN FUNDS SEMIANNUAL REPORT 73 EQUITY FUNDS

EQUITY FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

asset values per share of the Funds. At March 31, 2013, the following reclassifications were recorded:

Amounts in thousands	ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)			ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN/LOSS			CAPITAL STOCK
Enhanced Large Cap		$  —	*		$  —	*		$  —
Income Equity		1,276			(1,276	)		—
International Equity		(76	)		(654	)		730
Large Cap Equity		(1	)		(26	)		27
Large Cap Growth		—	*		(2,837	)		2,837
Small Cap Core		19			(19	)		—
Small Cap Value		(906	)		906			—
Technology		637			—	*		(637	)

* Amount rounds to less than one thousand.

I) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

For the period subsequent to October 31, 2012, through the fiscal year ended March 31, 2013, the following Funds incurred net capital losses and/or Section 988 net currency losses which each Fund intends to treat as having been incurred in the following fiscal year:

Amounts in thousands
Small Cap Core	$1,980
Technology	155

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Capital losses incurred that will be carried forward indefinitely under the provisions of the Act are as follows:

Amounts in thousands	SHORT-TERM CAPITAL LOSS CARRYFORWARD			LONG-TERM CAPITAL LOSS CARRYFORWARD
International Equity		$1,859	*		$513	*

* Amounts include acquired capital loss carryovers which may be limited under current tax laws.

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

At March 31, 2013, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:

Amounts in thousands	MARCH 31, 2016			MARCH 31, 2017			MARCH 31, 2018
Enhanced Large Cap		$  —			$9,555			$9,392
International Equity		3,623	*		41,562	*		155,401	*
Large Cap Equity		2,451	*		17,703	*		26,340	*
Large Cap Growth		2,806	*		8,394	*		20,105	*
Large Cap Value		—			52,575			61,413
Technology		—			2,755			10,853

* Amounts include acquired capital loss carryovers which may be limited under current tax laws, expiring in varying amounts through March 31, 2018.

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

At March 31, 2013, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:

	UNDISTRIBUTED
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAINS
Enhanced Large Cap		$1		$  —		$2,271
Income Equity		143		5,634		64,057
International Equity		1,359		722		35,005
Large Cap Equity		33		28		25,936

EQUITY FUNDS 74 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

	UNDISTRIBUTED
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAINS
Large Cap Growth		$63		$  —		$46,290
Large Cap Value		498		—		24,277
Small Cap Core		—		1,249		43,392
Small Cap Value		3,554		7,645		525,334
Technology		—		—		10,059

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

The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Enhanced Large Cap		$262		$   —
Income Equity		6,126		801
International Equity		4,471		—
Large Cap Equity		1,853		—
Large Cap Growth		400		—
Large Cap Value		2,897		—
Small Cap Core		2,216		419
Small Cap Value		25,500		44,644

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

The tax character of distributions paid during the fiscal year ended March 31, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Enhanced Large Cap		$200		$  —
Income Equity		7,992		—
International Equity		4,171		—
Large Cap Equity		1,212		—
Large Cap Value		2,000		—
Small Cap Core		431		—
Small Cap Value		10,300		2,585

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

As of March 31, 2013, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2010 through March 31, 2012 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.

J) NETTING AGREEMENTS The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. As of September 30, 2013, the Funds have not invested in any portfolio securities or entered into any derivative transactions with gross exposures shown on the Statements of Assets and Liabilities, that could be netted subject to netting agreements.

K) OTHER RISKS Certain Funds may invest in emerging market securities. Additional risks are involved when a Fund invests its assets in countries with emerging economies or securities markets. These countries generally are located in the Asia and Pacific regions, the Middle East, Eastern Europe, Central America, South America and Africa. Political and economic structures in many of these countries may lack the social, political and economic stability characteristics of more developed countries. In general, the securities markets of these countries are less liquid, subject to greater price volatility and have smaller market capitalizations. As a result, the risks presented by investments in these countries are heightened.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, whom are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended

September 30, 2013.

These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended

September 30, 2013.

NORTHERN FUNDS SEMIANNUAL REPORT 75 EQUITY FUNDS

EQUITY FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

4. BANK BORROWINGS

The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 29, 2012, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Funds did not have any outstanding loans.

When utilized, the average dollar amounts of the borrowings and the weighted average interest rates for the six months ended September 30, 2013, on these borrowings were:

Amounts in thousands	DOLLAR AMOUNT		RATE
Enhanced Large Cap		$100		1.18	%
International Equity		2,600		1.20	%
Large Cap Equity		300		1.19	%
Large Cap Growth		900		1.20	%
Large Cap Value		4,500		1.20	%
Technology		700		1.20	%

No other Funds incurred any interest expenses during the six months ended September 30, 2013.

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment adviser is entitled to receive an advisory fee, computed daily and payable monthly, at annual rates set forth in the tables below (expressed as a percentage of each Fund’s respective average daily net assets). During the six months ended September 30, 2013, the investment adviser contractually agreed to reimburse the Funds for certain expenses (other than acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses; and interest, if any) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.

The annual advisory fees and expense limitations for the six months ended September 30, 2013, for the Funds were as follows:

	CONTRACTUAL
Fund	ANNUAL ADVISORY FEES		EXPENSE LIMITATION
Enhanced Large Cap		0.30%		0.60%
Small Cap Core		0.85%		0.75%
Small Cap Value		0.85%		1.00%

	CONTRACTUAL ANNUAL ADVISORY FEE						CONTRACTUAL
Fund	FIRST $1 BILLION		NEXT $1 BILLION		OVER $2 BILLION		EXPENSE LIMITATION
Income Equity		0.85%		0.80%		0.77%		1.00%
International Equity		0.90%		0.85%		0.81%		1.06%
Large Cap Equity		0.75%		0.71%		0.68%		0.85%
Large Cap Growth		0.75%		0.71%		0.68%		0.85%
Large Cap Value		0.85%		0.80%		0.77%		0.85%
Technology		1.00%		0.94%		0.90%		1.25%

The contractual reimbursement arrangements are expected to continue until at least July 31, 2014. The contractual reimbursement arrangement will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangement at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.

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

EQUITY FUNDS 76 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

For compensation as administrator, NTI is entitled to receive a fee, computed daily and payable monthly, at the annual rate of 0.15 percent of each Fund’s average daily net assets. The administration fees are reflected in the Funds’ Statements of Operations.

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.

Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statements of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

6. RELATED PARTY TRANSACTIONS

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund invests its uninvested cash in a money market fund advised by the investment adviser or its affiliates. Accordingly, each Fund will bear indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include the advisory, administrative, transfer agency and custody fees that the money market fund pays to the investment adviser and/or its affiliates. The uninvested cash of each of the Funds currently is invested in the Northern Institutional Diversified Assets Portfolio. The aggregate annual rate of advisory, administration, transfer agency and custody fees payable to the investment adviser and/or its affiliates on any assets invested in the Northern Institutional Diversified Assets Portfolio is 0.35 percent of the average daily net assets. However, pursuant to the exemptive order, the investment adviser will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Northern Institutional Diversified Assets Portfolio. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

7. INVESTMENT TRANSACTIONS

For the six months ended September 30, 2013, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER
Enhanced Large Cap		$  —		$12,841		$  —		$8,850
Income Equity		—		21,723		—		22,447
International Equity		—		22,364		—		47,088
Large Cap Equity		—		26,738		—		44,502
Large Cap Growth		—		29,950		—		73,461
Large Cap Value		—		17,630		—		32,790
Small Cap Core		—		11,733		—		59,540
Small Cap Value		—		422,997		—		386,386
Technology		—		10,000		—		17,064

The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, deferral of post-October currency and capital losses for tax purposes, and the recharacterization of income recognition on investments in REIT’s and PFIC’s.

At September 30, 2013, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation (depreciation) on investments (including the

NORTHERN FUNDS SEMIANNUAL REPORT 77 EQUITY FUNDS

EQUITY FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

effects of foreign currency translation) and the cost basis of securities were as follows:

Amounts in thousands	UNREALIZED APPRECIATION		UNREALIZED DEPRECIATION			NET APPRECIATION		COST BASIS OF SECURITIES
Enhanced Large Cap		$2,292		$(176)			$2,116		$15,354
Income Equity		79,996		(6,462	)		73,534		291,489
International Equity		63,489		(7,822	)		55,667		208,212
Large Cap Equity		31,075		(1,083	)		29,992		112,503
Large Cap Growth		52,775		(621	)		52,154		118,694
Large Cap Value		25,727		(319	)		25,408		82,505
Small Cap Core		58,014		(3,914	)		54,100		127,324
Small Cap Value		613,280		(24,701	)		588,579		1,758,467
Technology		15,574		(2,439	)		13,135		65,950

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013, were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Enhanced Large Cap		457		$5,586		5		$60		(143	)		$(1,724	)		319			$3,922
Income Equity		2,929		43,747		99		1,480		(3,410	)		(51,083	)		(382	)		(5,856	)
International Equity		1,922		17,416		—		—		(4,819	)		(43,218	)		(2,897	)		(25,802	)
Large Cap Equity		165		2,905		28		495		(1,208	)		(21,221	)		(1,015	)		(17,821	)
Large Cap Growth		149		4,054		—		—		(1,868	)		(51,078	)		(1,719	)		(47,024	)
Large Cap Value		1,239		14,207		—		—		(2,114	)		(24,161	)		(875	)		(9,954	)
Small Cap Core		833		16,004		—		—		(3,691	)		(74,453	)		(2,858	)		(58,449	)
Small Cap Value		17,331		330,024		—		—		(13,462	)		(261,894	)		3,869			68,130
Technology		96		1,697		—		—		(464	)		(7,968	)		(368	)		(6,271	)

EQUITY FUNDS 78 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

Transactions in capital shares for the fiscal year ended March 31, 2013, were as follows:

Amounts in thousands	SHARES SOLD			PROCEEDS FROM SHARES SOLD			SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Enhanced Large Cap		130			$1,320			14		$145		(374	)		$(3,812	)		(230	)		$(2,347	)
Income Equity		4,753			62,579			246		3,198		(9,962	)		(129,437	)		(4,963	)		(63,660	)
International Equity		11,171	*		86,435	*		209		1,723		(12,251	)		(96,121	)		(871	)		(7,963	)
Large Cap Equity		3,792	**		59,891	**		75		1,166		(4,171	)		(65,753	)		(304	)		(4,696	)
Large Cap Growth		5,128	***		122,067	***		15		356		(1,390	)		(35,216	)		3,753			87,207
Large Cap Value		600			5,880			210		2,063		(3,706	)		(36,311	)		(2,896	)		(28,368	)
Small Cap Core		2,113			34,528			32		530		(2,954	)		(46,821	)		(809	)		(11,763	)
Small Cap Value		28,512			476,446			3,968		65,027		(27,159	)		(445,441	)		5,321			96,032
Technology		926			14,964			—		—		(2,235	)		(36,809	)		(1,309	)		(21,845	)

* Numbers include assets received in connection with fund reorganization of approximately 8,002,000 in shares sold and $61,134,000 in proceeds from shares sold. For further information on the reorganization, see Note 13.

** Numbers include assets received in connection with fund reorganization of approximately 147,000 in shares sold and $2,226,000 in proceeds from shares sold. For further information on the reorganization, see Note 13.

*** Numbers include assets received in connection with fund reorganization of approximately 4,187,000 in shares sold and $98,937,000 in proceeds from shares sold. For further information on the reorganization, see Note 13.

9. DERIVATIVE INSTRUMENTS

None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.

Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of September 30, 2013:

Amounts in thousands		ASSETS				LIABILITIES
FUND NAME	DERIVATIVE TYPE	STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE		COUNTERPARTY
Small Cap Core	Equity contracts	Net Assets — Unrealized appreciation	$	34	*	Net Assets — Unrealized depreciation	$	—	UBS
Small Cap Value	Equity contracts	Net Assets — Unrealized appreciation		1,319	*	Net Assets — Unrealized depreciation		—	Citigroup

* Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2013:

Amounts in thousands	AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
Small Cap Core	Equity contracts	Net realized gains (losses) on futures contracts	$	1,071
Small Cap Value	Equity contracts	Net realized gains (losses) on futures contracts		14,165

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EQUITY FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

Amounts in thousands	CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
International Equity	Forward foreign currency exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations	$	(3	)
Small Cap Core	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(181	)
Small Cap Value	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(856	)

Volume of derivative activity for the six months ended September 30, 2013*:

	FUTURES EQUITY
	CONTRACTS
	NUMBER OF TRADES		AVERAGE NOTIONAL AMOUNT**
Small Cap Core		29	$	642
Small Cap Value		81		4,499

* Activity during the period is measured by number of trades during the period and average notional amount for futures equity contracts.

** Amounts in thousands.

10. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

11. NEW ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining whether an entity is an investment company for which fair value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for, its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have to the financial statement amounts and footnote disclosures, if any.

12. LEGAL PROCEEDINGS

In 2007, the Enhanced Large Cap Fund and the Large Cap Value Fund were shareholders of the Tribune Company (“Tribune”). In December of 2007, as a part of a leveraged buy-out transaction (the “LBO”), Tribune was converted from a public company to a privately-held company. On December 8, 2008, Tribune filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

On December 7, 2010, Northern Funds was named as a defendant and a putative member of the proposed defendant class of shareholders named in an adversary proceeding (the “Committee Action”) brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune’s Chapter 11 bankruptcy proceeding (In re Tribune Company). The Tribune litigation trustee appointed pursuant to Tribune’s plan of reorganization (the “Litigation Trustee”) has been substituted as the named plaintiff in the Committee Action. On June 2, 2011, a second suit was initiated by certain creditors of Tribune and named Northern Funds as a defendant in the Delaware Superior Court with respect to claims related to the Tribune LBO (Niese et al. v. A.G. Edwards, Inc. et al.), which was subsequently removed to federal court in the United States District Court, District of Delaware. The indenture trustees, on behalf of certain noteholders of Tribune, filed a third suit and named Northern Funds as a defendant on June 2, 2011 in the U.S. District Court for the Northern District of Illinois (Deutsche Bank Trust Co. et al. v. Ohlson Enterprises et al.).

EQUITY FUNDS 80 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

Each of the above proceedings to which Northern Funds is a party attempts to “clawback” the proceeds paid out in connection with the LBO. The putative defendant class is comprised of beneficial owners of shares of Tribune who received proceeds of the LBO. Each of the above proceedings has now been consolidated into a Multi-District Litigation (“MDL”) proceeding, pending in the Southern District of New York. Except for certain administrative and organizational matters, the cases have generally been stayed pursuant to orders of the Court. On September 7, 2012, the Court in the MDL proceeding entered an order modifying the stay and establishing a schedule and process with respect to certain of the proceedings.

The defendants jointly moved to dismiss all of the actions filed by the individual creditors, i.e. the actions commenced by the plaintiffs in Niese et al. and Deutsche Bank Trust Co. et al. The Committee Action is not subject to the motion to dismiss. On September 23, 2013, the Court entered its Memorandum and Order on the motion to dismiss the individual creditors’ actions. While the Court did not agree with all of the defendants’ arguments, the Court granted the motion to dismiss on the grounds that individual creditors do not have standing to assert claims seeking to “clawback” proceeds paid to former shareholders in the LBO while the Litigation Trustee exercises its power in the Committee Action to “clawback” the same proceeds. The individual creditors’ actions, therefore, were dismissed. The Court’s decision, however, left open the possibility that the individual creditors could pursue their “clawback” claims if the Litigation Trustee completely abandoned its “clawback” claims. The Court, therefore, ordered the parties to the Committee Action to prepare a joint letter addressed to the Court, by October 8, 2013. The Court ordered that the letter address whether the Litigation Trustee intends to proceed with its intentional fraudulent conveyance claims or amend its complaint to abandon them. If the latter, the Court requested that the parties address whether the Litigation Trustee could abandon its claims consistent with its fiduciary duties to Tribune’s creditors. The individual creditors filed a notice of appeal of the Court’s Memorandum and Order dismissing their actions on September 30, 2013. The value of the proceeds received by the Enhanced Large Cap Fund and the Large Cap Value Fund in the LBO was approximately $308,000 and $26,520,000, respectively. The Funds cannot predict the outcome of these proceedings. The complaints allege no misconduct by the Funds, and the Funds intend to vigorously defend any lawsuit.

13. REORGANIZATION

On August 9, 2012, the Board of the Trust approved a Plan of Reorganization (the “Plan”) providing for the reorganization of the series of Northern Institutional Funds (“NIF”) listed in the table below (each an “Acquired Fund”) into a corresponding series of the Trust as set forth below under the heading Acquiring Fund (each an “Acquiring Fund”). Pursuant to the Plan, all of the assets of each Acquired Fund were transferred to the corresponding Acquiring Fund, as shown in the table below, in exchange for shares of the Acquiring Fund of equal aggregate value and the corresponding Acquiring Fund’s assumption of all of the current and future liabilities of the Acquired Fund. The cost basis of the investments received from the Acquired Funds was carried forward to the corresponding Acquiring Funds for U.S. GAAP and tax purposes. Immediately following the reorganization, holders of Class A shares of each Acquired Fund held shares of the corresponding Acquiring Fund having an aggregate net asset value equal to the aggregate net asset value of the Class A shares held in the Acquired Fund immediately prior to the reorganization. The reorganization was accomplished by a tax-free exchange of shares and was completed on November 9, 2012 as set forth in the table.

	ACQUIRED FUND						ACQUIRING FUND
Amounts in thousands, except Share Conversion Ratio	NIF International Equity Portfolio		NIF Large Cap Equity Portfolio		NIF Large Cap Growth Portfolio		NF International Equity Fund		NF Large Cap Equity Fund		NF Large Cap Growth Fund
Share Conversion Ratio		1.1170		0.4851		0.6391		1.1170		0.4851		0.6391
Acquired Fund’s Shares		7,164		302		6,552		NA		NA		NA
Acquiring Fund’s Shares		NA		NA		NA		8,002		147		4,187
Acquiring Fund’s Unrealized Appreciation		7,470		289		17,705		NA		NA		NA
Net Assets before the Reorganization		61,134		2,226		98,937		196,205		160,636		85,067
Aggregated Net Assets immediately after the Reorganization		NA		NA		NA		257,341		162,862		184,004

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EQUITY FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued SEPTEMBER 30, 2013 (UNAUDITED)

The tables below summarize the operations of the Acquired Funds for the period from December 1, 2011 to November 9, 2012, and the Acquiring Funds’ results of operations for the year ended March 31, 2013.

For the period from December 1, 2011 to November 9, 2012 (in thousands)

FUND	NET INVESTMENT INCOME		NET REALIZED GAINS AND NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS		NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
NIF International Equity Portfolio		$2,540		$5,709		$8,249
NIF Large Cap Equity Portfolio		29		383		412
NIF Large Cap Growth Portfolio		9		8,262		8,271

For the year ended March 31, 2013 (in thousands)

FUND	NET INVESTMENT INCOME		NET REALIZED GAINS AND NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS		NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
NF International Equity Fund		$4,432		$18,961		$23,393
NF Large Cap Equity Fund		$1,841		$12,563		$14,404
NF Large Cap Growth Fund		476		16,256		16,732

Because each combined investment portfolio has been managed as a single integrated portfolio since the reorganization was completed, it is not practical to separate the amounts of net investment income (loss), net realized gains and change in unrealized appreciation (depreciation) on investments, and net increase (decrease) in net assets resulting from operations, of the Acquired Funds that have been included in the Acquiring Funds’ Statements of Operations since November 10, 2012.

14. SUBSEQUENT EVENTS

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that, other than the item noted in Note 4 – Bank Borrowings, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

EQUITY FUNDS 82 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

FUND EXPENSES SEPTEMBER 30, 2013 (UNAUDITED)

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013 through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market fund investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 73), if any, in the International Equity Fund. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 77), which may result in different expense ratios in the Financial Highlights.

Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

ENHANCED LARGE CAP

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.62	%	$	1,000.00	$	1,087.40	$	3.24
Hypothetical**		0.62	%	$	1,000.00	$	1,021.96	$	3.14

INCOME EQUITY

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.00	%	$	1,000.00	$	1,051.30	$	5.14
Hypothetical**		1.00	%	$	1,000.00	$	1,020.05	$	5.06

INTERNATIONAL EQUITY

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.06	%	$	1,000.00	$	1,126.60	$	5.65
Hypothetical**		1.06	%	$	1,000.00	$	1,019.75	$	5.37

LARGE CAP EQUITY

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.85	%	$	1,000.00	$	1,087.80	$	4.45
Hypothetical**		0.85	%	$	1,000.00	$	1,020.81	$	4.31

LARGE CAP GROWTH

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.85	%	$	1,000.00	$	1,111.00	$	4.50
Hypothetical**		0.85	%	$	1,000.00	$	1,020.81	$	4.31

* Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

NORTHERN FUNDS SEMIANNUAL REPORT 83 EQUITY FUNDS

EQUITY FUNDS

FUND EXPENSES continued SEPTEMBER 30, 2013 (UNAUDITED)

LARGE CAP VALUE

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.85	%	$	1,000.00	$	1,096.90	$	4.47
Hypothetical**		0.85	%	$	1,000.00	$	1,020.81	$	4.31

SMALL CAP CORE

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.75	%	$	1,000.00	$	1,134.30	$	4.01
Hypothetical**		0.75	%	$	1,000.00	$	1,021.31	$	3.80

SMALL CAP VALUE

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.00	%	$	1,000.00	$	1,103.60	$	5.27
Hypothetical**		1.00	%	$	1,000.00	$	1,020.05	$	5.06

TECHNOLOGY

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.25	%	$	1,000.00	$	1,083.80	$	6.53
Hypothetical**		1.25	%	$	1,000.00	$	1,018.80	$	6.33

* Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

EQUITY FUNDS 84 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

APPROVAL OF ADVISORY AGREEMENT SEPTEMBER 30, 2013 (UNAUDITED)

The Board of Trustees oversees the management of Northern Funds (the “Trust”), and reviews the investment performance and expenses of the investment funds covered by this Report (the “Funds”) at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Funds with Northern Trust Investments, Inc. (“Northern”).

The Advisory Agreement was re-approved with respect to all of the Funds by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Trust’s Governance Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Funds. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Funds in comparison to other mutual funds and benchmark indices; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Funds; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Funds; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Funds’ investment performance over different time periods in comparison to the investment performance of mutual fund peer groups and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administrative) fees and the total expenses (after reimbursements) borne by the Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the investment advisory fees charged to the Funds compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (v) Northern’s staffing for the Funds and the experience of the portfolio managers, credit research and other personnel; (vi) Northern’s financial resources and its ability to attract and retain portfolio management talent; (vii) Northern’s investments in technology to benefit the Funds; (viii) the fees paid by the Funds to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (ix) the benefits received by Northern and its affiliates from their relationships with the Funds, including reports on soft dollar usage and best execution. In evaluating the Advisory Agreement for each of the Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. In this regard, they considered both the investment advisory services, and the other non-advisory services that are provided to the Funds by Northern and its affiliates. These services include acting as the Funds’ custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications with and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Funds. They noted Northern’s enhancements to the pricing and fund accounting systems made during the year, and other investments in technology, including the trade order management system used to process certain trades. The Trustees also considered the strength of Northern’s and its affiliates’ risk management processes, Northern’s compliance oversight program with respect to all of the Funds’ service providers and the continued active involvement of internal audit in reviewing operations related to the Funds. In addition, they noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Funds. The Trustees concluded that Northern was able to commit, and had committed, substantial financial and other resources to the operations of the Funds and was able to provide quality services to the Funds.

Performance

The Trustees considered the investment performance of the Funds. They first considered whether the Funds had operated

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EQUITY FUNDS

APPROVAL OF ADVISORY AGREEMENT continued

within their respective investment objectives, as well as their compliance with their investment restrictions. For Funds that had been in existence for the applicable periods, the Trustees received information on the Funds’ investment performance for one, two, three, four, five and ten years, as well as performance for the most recent quarter and year-to-date. For the Large Cap Value Fund, which had been subject to in-depth performance reviews, the Trustees placed more emphasis on recent performance. The Trustees compared the investment performance of the Funds to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. The Trustees also reviewed the Funds’ investment performance relative to their respective performance benchmarks. The Trustees considered that the investment performance of each Fund, other than the Large Cap Growth Fund and Large Cap Value Fund, was above its respective Lipper peer medians for the three- and five-year periods, and the International Equity Fund, Small Cap Core Fund, and Small Cap Value Fund and Technology Fund each exceeded its performance benchmark for the same time periods. They also took into account that the Large Cap Growth Fund’s performance for the 1-year period was above its Lipper median.

The Trustees took into account Northern’s explanations for the performance rankings and comparisons. The Trustees took into consideration that Northern’s more risk averse investment strategies may cause the Funds to underperform against their peers during certain market environments. They also took into consideration the extreme market volatility in recent years and the effects of these events on the Funds’ longer term performance. In addition, the Trustees reviewed the consistency of Northern’s investment approach for the Funds and changes made throughout the year to investment personnel and processes to address performance issues. In this regard, they believed that the in-depth performance reviews of the Large Cap Value Fund, requested by the Trustees and provided by the Northern, assisted them in evaluating performance issues with respect to that Fund. The Trustees determined, based on the information received, that Northern was appropriately monitoring the Large Cap Value Fund and other underperforming Funds. Overall, the Trustees concluded that Northern had devoted appropriate resources to improving the investment performance and addressing underperformance of the Funds.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Funds’ contractual management fee rates; the Funds’ total operating expense ratios; Northern’s contractual commitments to continue expense reimbursements for at least one year with respect to the Funds; and whether a consistent methodology was in place in determining the fees and expenses of the Funds. The Trustees also took into account fund mergers in the past year of the International Equity Fund, the Large Cap Equity Fund and the Large Cap Growth Fund, whereby the Funds acquired corresponding portfolios of the Northern Institutional Funds, also managed by Northern, and the related reduction in the contractual advisory fee rates for those Funds. The Trustees also considered that, for those Funds that were sweeping uninvested cash into a Northern affiliated money market fund, Northern was in each case rebating back to the investing Fund all of the advisory fees that were not waived by Northern of the applicable money market fund in compliance with the Funds’ exemptive order. The Trustees also considered the additional contractual expense reimbursements that were in effect during the past year.

In addition, the Trustees considered the amount of assets in the Funds; the information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship on a Fund-by-Fund basis. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to each Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rates paid by the Funds under the Advisory Agreement and the Funds’ total operating expense ratios compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Funds’ fee rates and total operating expense ratios were prepared by Lipper. The Trustees considered that the contractual management fee rates for the Income Equity Fund, International Equity Fund, Large Cap Growth Fund, Large Cap Value Fund, Small Cap Value Fund and the Technology Fund were above, and the contractual management fee rates for the other Funds were below, their respective Lipper peer group medians. They also considered that each Fund’s total expense ratio after reimbursement of expenses was below its respective Lipper peer objective median. The Trustees reviewed information comparing the Funds’ advisory fee rates to the fee rates charged by Northern to similarly managed, private institutional accounts. The Trustees noted that Northern did not manage private institutional accounts similarly managed to the Technology Fund. The Trustees considered the difference in, and level of complexity of, services provided by Northern with regard to the private institutional accounts, as well as regulatory, operational and compliance differences, board and committee support

EQUITY FUNDS 86 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

and other differences. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Funds.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass, benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Funds may be sharing in economies of scale through the level at which the Funds’ advisory fees are set and through Northern’s contractual expense reimbursements that limit the expenses for the Funds to specific levels. In addition, the Trustees considered that each of the Funds’ advisory fees were subject to breakpoints, thus ensuring that as a Fund’s assets grew, its shareholders would receive reduced fee rates.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationship with the Funds. Those benefits included fees received by the affiliates for transfer agency, custodial and administrative functions. The Trustees also considered that many of the Funds’ shareholders had other client relationships with The Northern Trust Company. In addition, the Trustees considered that the scale of the Funds provided opportunities to Northern to obtain securities trading advantages for its other advisory clients. The Trustees also reviewed Northern’s use of the Funds’ brokerage commissions on their brokerage transactions to obtain research products and services. The Trustees determined that Northern’s use of so-called “soft-dollars” was within applicable statutory requirements and SEC guidance. The Trustees considered the extent to which Northern and its other clients, as well as the Funds, benefitted from receipt of these research products and services.

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to all of the Funds that the advisory fees paid by the Funds were reasonable in light of the services provided by Northern, its costs and the Funds’ asset levels, and that the Advisory Agreement should be approved and continued.

NORTHERN FUNDS SEMIANNUAL REPORT 87 EQUITY FUNDS

EQUITY FUNDS

FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

EQUITY FUNDS 88 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY INDEX FUNDS

TABLE OF CONTENTS

2	STATEMENTS OF ASSETS AND LIABILITIES
4	STATEMENTS OF OPERATIONS
6	STATEMENTS OF CHANGES IN NET ASSETS
8	FINANCIAL HIGHLIGHTS
15	SCHEDULES OF INVESTMENTS
15	EMERGING MARKETS EQUITY INDEX FUND
29	GLOBAL REAL ESTATE INDEX FUND
38	GLOBAL SUSTAINABILITY INDEX FUND
50	INTERNATIONAL EQUITY INDEX FUND
64	MID CAP INDEX FUND
72	SMALL CAP INDEX FUND
99	STOCK INDEX FUND
108	NOTES TO THE FINANCIAL STATEMENTS
123	FUND EXPENSES
125	APPROVAL OF ADVISORY AGREEMENT
128	FOR MORE INFORMATION

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

The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, Northern Funds’ performance may be subject to substantial short-term changes.

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

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

Amounts in thousands, except per share data	EMERGING MARKETS EQUITY INDEX FUND			GLOBAL REAL ESTATE INDEX FUND
ASSETS:
Investments, at cost		$1,938,028	(1)		$1,153,353	(1)
Investments, at value		$2,138,453	(3)		$1,357,867	(3)
Cash held at broker		1,264	(5)		1,184	(5)
Foreign currencies held at broker, at value (restricted $1,289, $1,617, $90, $3,790, respectively)		3,893	(6)		1,626	(6)
Foreign currencies, at value (cost $31,568, $32,436, $1,881, $14,388, respectively)		32,136			32,489
Dividend income receivable		3,568			3,291
Interest income receivable		17			1
Receivable for foreign tax reclaimable		160			674
Receivable for securities sold		1,650			1,394
Receivable for variation margin on futures contracts		–			76
Receivable for fund shares sold		1,306			2,385
Receivable from investment adviser		152			53
Unrealized gain on forward foreign currency exchange contracts		78			99
Prepaid and other assets		10			15
Total Assets		2,182,687			1,401,154
LIABILITIES:
Unrealized loss on forward foreign currency exchange contracts		–			74
Payable for securities purchased		4,063			1,272
Payable for variation margin on futures contracts		583			539
Payable for fund shares redeemed		2,904			4,172
Payable to affiliates:
Investment advisory fees		127			81
Administration fees		54			35
Custody and accounting fees		40			26
Shareholder servicing fees		4			8
Transfer agent fees		36			23
Trustee fees		9			6
Accrued other liabilities		116			31
Total Liabilities		7,936			6,267
Net Assets		$2,174,751			$1,394,887
ANALYSIS OF NET ASSETS:
Capital stock		$2,134,448			$1,885,370
Accumulated undistributed net investment income (loss)		25,982			(13,487	)
Accumulated undistributed net realized gain (loss)		(186,338	)		(681,353	)
Net unrealized appreciation		200,659			204,357
Net Assets		$2,174,751			$1,394,887
Shares Outstanding ($.0001 par value, unlimited authorization)		193,194			149,437
Net Asset Value, Redemption and Offering Price Per Share		$11.26			$9.33

(1) Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $10,085, $12,565, $2,735, $146,745, $26,480, $7,359 and $42,912, respectively.

(2) Amounts include cost from the Northern Trust Corp. of $106 and $3,766, respectively.

(3) Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $10,085, $12,565, $2,735, $146,745, $26,480, $7,359 and $42,912, respectively.

(4) Amounts include value from the Northern Trust Corp. of $109 and $3,869, respectively.

(5) The restricted cash amounts for each international fund are $1,337, $801, $84 and $0, respectively.

(6) Costs associated with foreign currencies held at broker are $3,901, $1,613, $335 and $4,836, respectively.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2013 (UNAUDITED)

GLOBAL SUSTAINABILITY INDEX FUND			INTERNATIONAL EQUITY INDEX FUND			MID CAP INDEX FUND			SMALL CAP INDEX FUND			STOCK INDEX FUND
	$114,166	(1)(2)		$2,925,888	(1)		$892,436	(1)		$638,381	(1)		$3,491,908	(1)(2)
	$150,308	(3)(4)		$3,518,348	(3)		$1,169,022	(3)		$873,060	(3)		$5,051,449	(3)(4)
	118	(5)		902	(5)		–			–			–
	340	(6)		4,916	(6)		–			–			–
	1,904			14,593			–			–			–
	313			8,772			991			879			5,989
	1			11			–			–			–
	140			4,301			–			–			–
	140			616			405			207			–
	17			–			3			2			8
	31			6,018			1,026			823			4,912
	13			205			67			51			234
	3			366			–			–			–
	4			18			11			14			33
	153,332			3,559,066			1,171,525			875,036			5,062,625
	1			33			–			–			–
	2,117			118,510			3,549			4,702			2,275
	45			665			34			3			420
	71			5,700			2,865			3,659			4,365
	9			141			38			29			84
	4			85			29			21			125
	4			60			4			5			25
	2			3			11			5			10
	3			56			19			14			84
	3			18			4			9			24
	21			41			29			26			72
	2,280			125,312			6,582			8,473			7,484
	$151,052			$3,433,754			$1,164,943			$866,563			$5,055,141
	$116,517			$3,175,291			$859,650			$597,336			$3,566,524
	2,203			60,029			9,777			5,683			3,256
	(3,858	)		(394,828	)		18,591			28,774			(74,419	)
	36,190			593,262			276,925			234,770			1,559,780
	$151,052			$3,433,754			$1,164,943			$866,563			$5,055,141
	13,649			288,288			71,722			73,325			242,214
	$11.07			$11.91			$16.24			$11.82			$20.87

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

STATEMENTS OF OPERATIONS

Amounts in thousands	EMERGING MARKETS EQUITY INDEX FUND			GLOBAL REAL ESTATE INDEX FUND
INVESTMENT INCOME:
Dividend income		$39,153	(1)(2)		$25,198	(3)(4)
Interest income		36			–
Total Investment Income		39,189			25,198
EXPENSES:
Investment advisory fees		3,707			2,479
Administration fees		1,589			1,062
Custody fees		971			655
Accounting fees		116			81
Transfer agent fees		1,059			708
Registration fees		20			16
Printing fees		18			26
Professional fees		26			21
Shareholder servicing fees		56			54
Trustee fees		16			11
Other		89			23
Total Expenses		7,667			5,136
Less expenses reimbursed by investment adviser		(4,490	)		(1,601	)
Net Expenses		3,177			3,535
Net Investment Income		36,012			21,663
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		(27,951	)		(4,570	)
Futures contracts		2,504			4,683
Foreign currency transactions		(1,393	)		(1,076	)
Net change in unrealized appreciation (depreciation) on:
Investments		(72,195	)		(53,922	)
Futures contracts		(256	)		(845	)
Foreign currency translations		697			116
Net Gains (Losses)		(98,594	)		(55,614	)
Net Increase (Decrease) in Net Assets Resulting from Operations		$(62,582	)		$(33,951	)

(1) Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of which the amount is less than $1.

(2) Net of $4,758 in non-reclaimable foreign withholding taxes.

(3) Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $1, $2, $2, $1 and $5, respectively.

(4) Net of $1,281 in non-reclaimable foreign withholding taxes.

(5) Net of $121 in non-reclaimable foreign withholding taxes.

(6) Net of $5,209 in non-reclaimable foreign withholding taxes.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

GLOBAL SUSTAINABILITY INDEX FUND			INTERNATIONAL EQUITY INDEX FUND			MID CAP INDEX FUND			SMALL CAP INDEX FUND			STOCK INDEX FUND
	$1,945	(1)(5)		$52,959	(3)(6)		$8,432	(3)		$5,718	(3)		$53,451	(3)
	1			–			1			1			5
	1,946			52,959			8,433			5,719			53,456
	250			3,505			1,075			826			2,552
	107			2,103			806			619			3,828
	82			1,279			75			86			285
	17			150			64			51			265
	71			1,402			537			413			2,552
	13			18			14			13			25
	7			15			16			14			29
	16			26			16			16			41
	19			36			46			30			30
	5			16			5			5			33
	5			16			6			7			28
	592			8,566			2,660			2,080			9,668
	(378	)		(5,074	)		(1,868	)		(1,470	)		(7,155	)
	214			3,492			792			610			2,513
	1,732			49,467			7,641			5,109			50,943
	975			(6,176	)		23,855			21,467			18,720
	191			4,554			1,708			3,569			15,058
	(13	)		(807	)		–			–			–
	8,570			239,169			55,705			76,309			323,812
	(34	)		98			(398	)		(315	)		(1,549	)
	51			1,185			–			–			–
	9,740			238,023			80,870			101,030			356,041
	$11,472			$287,490			$88,511			$106,139			$406,984

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

	EMERGING MARKETS EQUITY INDEX FUND						GLOBAL REAL ESTATE INDEX FUND
Amounts in thousands	SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
OPERATIONS:
Net investment income		$36,012			$36,929			$21,663			$25,971
Net realized gains (losses)		(26,840	)		(20,877	)		(963	)		(3,729	)
Net change in unrealized appreciation (depreciation)		(71,754	)		14,263			(54,651	)		177,214
Net Increase (Decrease) in Net Assets Resulting from Operations		(62,582	)		30,315			(33,951	)		199,456
CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets resulting from capital share transactions		93,064			464,532			98,733			459,549
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		93,064			464,532			98,733			459,549
DISTRIBUTIONS PAID:
From net investment income		–			(44,000	)		(19,158	)		(38,098	)
From net realized gains		–			–			–			–
Total Distributions Paid		–			(44,000	)		(19,158	)		(38,098	)
Total Increase in Net Assets		30,482			450,847			45,624			620,907
NET ASSETS:
Beginning of period		2,144,269			1,693,422			1,349,263			728,356
End of period		$2,174,751			$2,144,269			$1,394,887			$1,349,263
Accumulated Undistributed Net Investment Income (Loss)		$25,982			$(10,030	)		$(13,487	)		$(15,992	)

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

OR THE FISCAL YEAR ENDED MARCH 31, 2013

GLOBAL SUSTAINABILITY INDEX FUND					INTERNATIONAL EQUITY INDEX FUND						MID CAP INDEX FUND					SMALL CAP INDEX FUND						STOCK INDEX FUND
SEPT. 30, 2013		MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013		MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
	$1,732		$2,714			$49,467			$55,189			$7,641		$10,907			$5,109			$9,253			$50,943			$81,256
	1,153		(778	)		(2,429	)		(14,628	)		25,563		20,720			25,036			17,258			33,778			(35,889	)
	8,587		12,104			240,452			183,642			55,307		108,004			75,994			77,744			322,263			519,559
	11,472		14,040			287,490			224,203			88,511		139,631			106,139			104,255			406,984			564,926
	4,843		9,173			680,959			624,670			96,092		196,911			(2,688	)		160,452			(132,827	)		1,058,659
	4,843		9,173			680,959			624,670			96,092		196,911			(2,688	)		160,452			(132,827	)		1,058,659
	–		(2,800	)		–			(53,302	)		–		(9,993	)		–			(9,996	)		(49,802	)		(80,033	)
	–		–			–			–			–		(17,408	)		–			(4,381	)		–			–
	–		(2,800	)		–			(53,302	)		–		(27,401	)		–			(14,377	)		(49,802	)		(80,033	)
	16,315		20,413			968,449			795,571			184,603		309,141			103,451			250,330			224,355			1,543,552
	134,737		114,324			2,465,305			1,669,734			980,340		671,199			763,112			512,782			4,830,786			3,287,234
	$151,052		$134,737			$3,433,754			$2,465,305			$1,164,943		$980,340			$866,563			$763,112			$5,055,141			$4,830,786
	$2,203		$471			$60,029			$10,562			$9,777		$2,136			$5,683			$574			$3,256			$2,115

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

FINANCIAL HIGHLIGHTS

EMERGING MARKETS EQUITY INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$11.58			$11.65			$13.06			$11.31			$6.46			$12.92
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.19			0.23			0.22			0.15			0.07			0.26
Net realized and unrealized gains (losses)		(0.51	)		(0.03	)		(1.48	)		1.80			4.90			(6.41	)
Total from Investment Operations		(0.32	)		0.20			(1.26	)		1.95			4.97			(6.15	)
LESS DISTRIBUTIONS PAID:
From net investment income(1)		–			(0.27	)		(0.15	)		(0.20	)		(0.12	)		(0.20	)
From net realized gains		–			–			–			–			–			(0.11	)
Total Distributions Paid		–			(0.27	)		(0.15	)		(0.20	)		(0.12	)		(0.31	)
Net Asset Value, End of Period		$11.26			$11.58			$11.65			$13.06			$11.31			$6.46
Total Return(2)		(2.76	)%		1.67	%		(9.34	)%		17.24	%		77.02	%		(47.60	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$2,174,751			$2,144,269			$1,693,422			$1,614,849			$1,368,577			$307,832
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.30	%(4)		0.30	%(4)		0.61	%(4)		0.72	%(4)		0.72	%		0.76	%
Expenses, before reimbursements and credits		0.72	%		0.73	%		0.73	%		0.72	%		0.72	%		0.76	%
Net investment income, net of reimbursements and credits		3.40	%(4)		2.08	%(4)		1.90	%(4)		1.38	%(4)		1.07	%		2.14	%
Net investment income, before reimbursements and credits		2.98	%		1.65	%		1.78	%		1.38	%		1.07	%		2.14	%
Portfolio Turnover Rate		12.91	%		26.98	%		33.19	%		40.61	%		13.07	%		29.68	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $4,000, $12,000, $3,000 and $8,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL REAL ESTATE INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$9.70			$8.38			$8.47			$7.37			$4.14			$10.17
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.15			0.24			0.18			0.17			0.17			0.34
Net realized and unrealized gains (losses)		(0.39	)		1.40			(0.08	)		1.10			3.23			(6.08	)
Total from Investment Operations		(0.24	)		1.64			0.10			1.27			3.40			(5.74	)
LESS DISTRIBUTIONS PAID:
From net investment income(1)		(0.13	)		(0.32	)		(0.19	)		(0.17	)		(0.17	)		(0.28	)
From net realized gains		–			–			–			–			–			(0.01	)
Total Distributions Paid		(0.13	)		(0.32	)		(0.19	)		(0.17	)		(0.17	)		(0.29	)
Net Asset Value, End of Period		$9.33			$9.70			$8.38			$8.47			$7.37			$4.14
Total Return(2)		(2.54	)%		20.11	%		1.42	%		17.52	%		82.69	%		(57.38	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,394,887			$1,349,263			$728,356			$651,181			$496,724			$235,067
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.50	%(4)		0.50	%(4)		0.61	%(4)		0.65	%(4)		0.65	%		0.65	%
Expenses, before reimbursements and credits		0.73	%		0.73	%		0.74	%		0.74	%		0.75	%		0.74	%
Net investment income, net of reimbursements and credits		3.06	%(4)		2.52	%(4)		2.27	%(4)		2.01	%(4)		2.64	%		3.74	%
Net investment income, before reimbursements and credits		2.83	%		2.29	%		2.14	%		1.92	%		2.54	%		3.65	%
Portfolio Turnover Rate		6.01	%		7.75	%		5.02	%		4.56	%		21.50	%		38.23	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $9,000, $33,000, $3,000 and $13,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

FINANCIAL HIGHLIGHTS continued

GLOBAL SUSTAINABILITY INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.20			$9.26			$9.37			$8.53			$5.62			$9.98
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.13			0.24			0.17			0.14			0.12			0.09
Net realized and unrealized gains (losses)		0.74			0.94			(0.12	)		0.83			2.91			(4.36	)
Total from Investment Operations		0.87			1.18			0.05			0.97			3.03			(4.27	)
LESS DISTRIBUTIONS PAID:
From net investment income(1)		–			(0.24	)		(0.16	)		(0.13	)		(0.12	)		(0.09	)
Total Distributions Paid		–			(0.24	)		(0.16	)		(0.13	)		(0.12	)		(0.09	)
Net Asset Value, End of Period		$11.07			$10.20			$9.26			$9.37			$8.53			$5.62
Total Return(2)		8.42	%		13.13	%		0.81	%		11.49	%		53.91	%		(42.89	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$151,052			$134,737			$114,324			$99,201			$72,981			$33,738
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.30	%(4)		0.30	%(4)		0.56	%(4)		0.65	%(4)		0.65	%		0.65	%
Expenses, before reimbursements and credits		0.83	%		0.87	%		0.89	%		0.91	%		1.01	%		1.23	%
Net investment income, net of reimbursements and credits		2.43	%(4)		2.43	%(4)		2.08	%(4)		1.72	%(4)		1.80	%		2.35	%
Net investment income, before reimbursements and credits		1.90	%		1.86	%		1.75	%		1.46	%		1.44	%		1.77	%
Portfolio Turnover Rate		11.30	%		19.17	%		12.61	%		28.77	%		7.36	%		17.55	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $1,000, $2,000, $1,000 and $4,000 which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

INTERNATIONAL EQUITY INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.78			$9.96			$10.88			$10.09			$6.70			$13.02
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.16			0.25			0.28			0.23			0.19			0.29
Net realized and unrealized gains (losses)		0.97			0.83			(0.94	)		0.77			3.39			(6.31	)
Total from Investment Operations		1.13			1.08			(0.66	)		1.00			3.58			(6.02	)
LESS DISTRIBUTIONS PAID:
From net investment income(1)		–			(0.26	)		(0.26	)		(0.21	)		(0.19	)		(0.30	)
Total Distributions Paid		–			(0.26	)		(0.26	)		(0.21	)		(0.19	)		(0.30	)
Net Asset Value, End of Period		$11.91			$10.78			$9.96			$10.88			$10.09			$6.70
Total Return(2)		10.38	%		11.04	%		(5.67	)%		9.96	%		53.57	%		(46.49	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$3,433,754			$2,465,305			$1,669,734			$1,693,014			$1,538,065			$828,342
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.25	%(4)		0.25	%(4)		0.40	%(4)		0.45	%(4)		0.45	%		0.45	%
Expenses, before reimbursements and credits		0.61	%		0.62	%		0.62	%		0.62	%		0.61	%		0.62	%
Net investment income, net of reimbursements and credits		3.53	%(4)		2.97	%(4)		2.93	%(4)		2.32	%(4)		2.37	%		3.16	%
Net investment income, before reimbursements and credits		3.17	%		2.60	%		2.71	%		2.15	%		2.21	%		2.99	%
Portfolio Turnover Rate		26.98	%		25.01	%		30.63	%		8.41	%		13.38	%		20.29	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $16,000, $14,000, $5,000 and $34,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

FINANCIAL HIGHLIGHTS continued

MID CAP INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$14.96			$13.18			$13.07			$10.42			$6.44			$10.86
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.10			0.18			0.12			0.10			0.12			0.15
Net realized and unrealized gains (losses)		1.18			2.07			0.09			2.65			3.98			(4.08	)
Total from Investment Operations		1.28			2.25			0.21			2.75			4.10			(3.93	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.17	)		(0.10	)		(0.10	)		(0.12	)		(0.13	)
From net realized gains		–			(0.30	)		–			–			–			(0.36	)
Total Distributions Paid		–			(0.47	)		(0.10	)		(0.10	)		(0.12	)		(0.49	)
Net Asset Value, End of Period		$16.24			$14.96			$13.18			$13.07			$10.42			$6.44
Total Return(1)		8.56	%		17.56	%		1.75	%		26.46	%		63.81	%		(36.39	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,164,943			$980,340			$671,199			$519,014			$325,342			$203,248
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.15	%(3)		0.15	%(3)		0.25	%(3)		0.29	%(3)		0.30	%		0.30	%
Expenses, before reimbursements and credits		0.50	%		0.51	%		0.52	%		0.53	%		0.52	%		0.51	%
Net investment income, net of reimbursements and credits		1.42	%(3)		1.47	%(3)		1.07	%(3)		1.02	%(3)		1.29	%		1.49	%
Net investment income, before reimbursements and credits		1.07	%		1.11	%		0.80	%		0.78	%		1.07	%		1.28	%
Portfolio Turnover Rate		6.89	%		9.57	%		12.07	%		13.01	%		29.69	%		36.66	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $15,000, $29,000 and $15,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013 and 2012, respectively, and approximately $21,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

SMALL CAP INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.41			$9.16			$9.28			$7.46			$4.63			$8.60
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.07			0.13			0.08			0.06			0.06			0.10
Net realized and unrealized gains (losses)		1.34			1.33			(0.14	)		1.82			2.83			(3.24	)
Total from Investment Operations		1.41			1.46			(0.06	)		1.88			2.89			(3.14	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.15	)		(0.06	)		(0.06	)		(0.06	)		(0.10	)
From net realized gains		–			(0.06	)		–			–			–			(0.73	)
Total Distributions Paid		–			(0.21	)		(0.06	)		(0.06	)		(0.06	)		(0.83	)
Net Asset Value, End of Period		$11.82			$10.41			$9.16			$9.28			$7.46			$4.63
Total Return(1)		13.54	%		16.24	%		(0.53	)%		25.29	%		62.55	%		(37.67	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$866,563			$763,112			$512,782			$442,254			$273,798			$154,988
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.15	%(3)		0.15	%(3)		0.29	%(3)		0.34	%(3)		0.35	%		0.35	%
Expenses, before reimbursements and credits		0.50	%		0.52	%		0.53	%		0.55	%		0.54	%		0.54	%
Net investment income, net of reimbursements and credits		1.24	%(3)		1.60	%(3)		1.02	%(3)		0.85	%(3)		0.94	%		1.21	%
Net investment income, before reimbursements and credits		0.89	%		1.23	%		0.78	%		0.64	%		0.75	%		1.02	%
Portfolio Turnover Rate		11.31	%		13.04	%		16.51	%		13.55	%		21.34	%		29.57	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $10,000, $24,000 and $10,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013 and 2012, respectively and approximately $26,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

FINANCIAL HIGHLIGHTS continued

STOCK INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$19.47			$17.46			$16.41			$14.47			$9.85			$16.33
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.21			0.37			0.28			0.26			0.23			0.29
Net realized and unrealized gains (losses)		1.39			2.01			1.05			1.94			4.62			(6.48	)
Total from Investment Operations		1.60			2.38			1.33			2.20			4.85			(6.19	)
LESS DISTRIBUTIONS PAID:
From net investment income		(0.20	)		(0.37	)		(0.28	)		(0.26	)		(0.23	)		(0.29	)
Total Distributions Paid		(0.20	)		(0.37	)		(0.28	)		(0.26	)		(0.23	)		(0.29	)
Net Asset Value, End of Period		$20.87			$19.47			$17.46			$16.41			$14.47			$9.85
Total Return(1)		8.25	%		13.83	%		8.31	%		15.40	%		49.46	%		(38.25	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$5,055,141			$4,830,786			$3,287,234			$2,233,947			$1,526,494			$855,009
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.10	%(3)		0.10	%(3)		0.20	%(3)		0.24	%(3)		0.25	%		0.25	%
Expenses, before reimbursements and credits		0.38	%		0.38	%		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income, net of reimbursements and credits		1.99	%(3)		2.17	%(3)		1.88	%(3)		1.85	%(3)		1.84	%		2.25	%
Net investment income, before reimbursements and credits		1.71	%		1.89	%		1.69	%		1.70	%		1.70	%		2.11	%
Portfolio Turnover Rate		4.74	%		7.38	%		2.73	%		4.35	%		11.85	%		4.22	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $46,000, $121,000 and $50,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013 and 2012, respectively, and approximately $113,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8%
Brazil – 6.0%
ALL - America Latina Logistica S.A.		255,928		$1,016
Anhanguera Educacional Participacoes S.A.		222,415		1,324
Arteris S.A.		39,500		342
Banco Bradesco S.A. *		358,978		5,624
Banco Bradesco S.A. ADR *		209,507		2,908
Banco do Brasil S.A. *		325,744		3,792
Banco Santander Brasil S.A.		240,136		1,626
Banco Santander Brasil S.A. ADR		298,210		2,072
BB Seguridade Participacoes S.A.		339,201		3,346
BM&FBovespa S.A.		1,070,561		6,009
BR Malls Participacoes S.A.		229,815		2,097
BR Properties S.A.		114,700		1,013
BRF S.A. *		372,020		9,076
CCR S.A.		504,600		3,977
Centrais Eletricas Brasileiras S.A. *		152,751		433
CETIP S.A. - Mercados Organizados *		109,456		1,156
Cia de Bebidas das Americas		79,900		3,064
Cia de Saneamento Basico do Estado de Sao Paulo *		191,071		1,879
Cia de Saneamento de Minas Gerais-COPASA *		32,700		518
Cia Hering *		79,761		1,215
Cia Siderurgica Nacional S.A. *		411,690		1,744
Cielo S.A. *		201,411		5,453
Cosan S.A. Industria e Comercio		68,347		1,306
CPFL Energia S.A.		136,420		1,181
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		167,572		1,267
Duratex S.A. *		154,996		920
EcoRodovias Infraestrutura e Logistica S.A.		93,470		644
EDP - Energias do Brasil S.A.		138,505		750
Embraer S.A. *		337,162		2,708
Eneva S.A. *		119,294		280
Estacio Participacoes S.A.		148,084		1,150
Fibria Celulose S.A. *		142,517		1,650
Hypermarcas S.A.		203,858		1,637
JBS S.A.		416,436		1,450
Kroton Educacional S.A.		105,500		1,502
Localiza Rent a Car S.A. *		78,619		1,178
Lojas Americanas S.A. *		72,000		468
Lojas Renner S.A. *		70,039		2,020
M Dias Branco S.A. *		19,300		892
MRV Engenharia e Participacoes S.A.		190,593		776
Multiplan Empreendimentos Imobiliarios S.A. *		47,220		1,131

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Brazil – 6.0% – continued
Multiplus S.A.		27,400		$319
Natura Cosmeticos S.A.		97,914		2,198
Odontoprev S.A.		153,550		678
Oi S.A. ADR		37,810		69
Petroleo Brasileiro S.A. *		1,403,078		10,781
Petroleo Brasileiro S.A. ADR *		199,973		3,345
Petroleo Brasileiro S.A. ADR *		143,500		2,223
Porto Seguro S.A.		62,908		787
Qualicorp S.A. *		111,100		1,011
Raia Drogasil S.A. *		121,307		986
Souza Cruz S.A. *		217,340		2,600
Sul America S.A.		77,499		555
Tim Participacoes S.A.		476,336		2,214
Totvs S.A. *		68,355		1,152
Tractebel Energia S.A.		91,338		1,521
Transmissora Alianca de Energia Eletrica S.A.		53,200		526
Ultrapar Participacoes S.A.		186,524		4,579
Vale S.A.		604,862		9,375
Vale S.A. ADR		134,408		2,098
WEG S.A. *		121,300		1,488
				131,099
Chile – 1.5%
AES Gener S.A.		1,351,375		789
Aguas Andinas S.A., Class A		1,327,875		915
Banco de Chile		10,290,068		1,547
Banco de Credito e Inversiones		18,150		1,071
Banco Santander Chile		36,688,285		2,394
Banco Santander Chile ADR		1,400		37
CAP S.A.		43,070		950
Cencosud S.A.		654,078		2,903
Cia Cervecerias Unidas S.A.		63,025		837
Colbun S.A.		4,405,097		1,137
Corpbanca S.A.		76,469,488		819
E.CL S.A.		291,890		406
Empresa Nacional de Electricidad S.A. ADR		3,800		160
Empresa Nacional de Electricidad S.A.		1,725,626		2,409
Empresas CMPC S.A.		677,955		2,059
Empresas COPEC S.A.		256,604		3,644
Enersis S.A.		10,468,764		3,334
Enersis S.A. ADR		13,572		218
ENTEL Chile S.A.		65,591		1,060
Latam Airlines Group S.A.		121,637		1,839

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Chile – 1.5% – continued
Latam Airlines Group S.A. BDR		30,812		$465
S.A.C.I. Falabella		409,427		3,907
Sociedad Quimica y Minera de Chile S.A. ADR		3,193		98
Vina Concha y Toro S.A.		266,095		503
				33,501
China – 18.7%
Agile Property Holdings Ltd.		772,000		849
Agricultural Bank of China Ltd., Class H		12,237,367		5,643
Air China Ltd., Class H		1,016,705		688
Aluminum Corp. of China Ltd., Class H *		2,177,435		803
Anhui Conch Cement Co. Ltd., Class H		702,075		2,259
Anta Sports Products Ltd.		485,432		625
AviChina Industry & Technology Co. Ltd., Class H		1,142,313		584
Bank of China Ltd., Class H		42,824,652		19,573
Bank of Communications Co. Ltd., Class H		4,922,117		3,614
BBMG Corp., Class H		701,341		470
Beijing Capital International Airport Co. Ltd., Class H		1,092,000		715
Beijing Enterprises Holdings Ltd.		288,271		2,080
Belle International Holdings Ltd.		2,640,000		3,829
Bosideng International Holdings Ltd.		1,661,677		400
Brilliance China Automotive Holdings Ltd. *		1,693,944		2,540
Byd Co. Ltd., Class H *		295,699		1,322
China Agri-Industries Holdings Ltd.		1,177,492		557
China BlueChemical Ltd., Class H		1,008,851		596
China CITIC Bank Corp. Ltd., Class H		4,622,286		2,401
China Coal Energy Co. Ltd., Class H		2,382,232		1,425
China Communications Construction Co. Ltd., Class H		2,481,287		1,956
China Communications Services Corp. Ltd., Class H		1,367,035		799
China Construction Bank Corp., Class H		40,994,410		31,615
China COSCO Holdings Co. Ltd., Class H *		1,419,221		704
China Everbright International Ltd.		1,252,000		1,108
China Everbright Ltd.		479,110		626
China Gas Holdings Ltd.		1,289,495		1,406
China International Marine Containers Group Co. Ltd., Class H		277,100		497
China Life Insurance Co. Ltd., Class H		4,235,544		10,977
China Longyuan Power Group Corp., Class H		1,504,473		1,563
China Mengniu Dairy Co. Ltd.		755,000		3,381

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
China – 18.7% – continued
China Merchants Bank Co. Ltd., Class H		2,614,933		$4,749
China Merchants Holdings International Co. Ltd.		645,871		2,346
China Minsheng Banking Corp. Ltd., Class H		2,969,927		3,544
China Mobile Ltd.		3,426,212		38,542
China National Building Material Co. Ltd., Class H		1,622,000		1,561
China Oilfield Services Ltd., Class H		871,558		2,183
China Overseas Grand Oceans Group Ltd.		384,000		468
China Overseas Land & Investment Ltd.		2,328,475		6,852
China Pacific Insurance Group Co. Ltd., Class H		1,503,337		5,383
China Petroleum & Chemical Corp., Class H		14,504,628		11,340
China Railway Construction Corp. Ltd., Class H		1,129,500		1,193
China Railway Group Ltd., Class H		2,323,827		1,269
China Resources Cement Holdings Ltd.		1,074,720		715
China Resources Enterprise Ltd.		685,628		2,177
China Resources Gas Group Ltd.		491,958		1,259
China Resources Land Ltd.		1,163,756		3,305
China Resources Power Holdings Co. Ltd.		1,096,900		2,606
China Shanshui Cement Group Ltd.		1,066,907		412
China Shenhua Energy Co. Ltd., Class H		1,936,636		5,870
China Shipping Container Lines Co. Ltd., Class H *		2,097,695		550
China Southern Airlines Co. Ltd., Class H		1,035,995		386
China State Construction International Holdings Ltd.		980,534		1,580
China Taiping Insurance Holdings Co. Ltd. *		495,860		709
China Telecom Corp. Ltd., Class H		7,864,339		3,890
China Unicom Hong Kong Ltd.		2,694,494		4,177
China Vanke Co. Ltd., Class B		735,272		1,342
Chongqing Rural Commercial Bank, Class H		1,353,434		654
CITIC Pacific Ltd.		821,095		1,066
CITIC Securities Co. Ltd., Class H		590,500		1,183
CNOOC Ltd.		10,149,433		20,512
COSCO Pacific Ltd.		936,943		1,432
Country Garden Holdings Co. Ltd.		2,549,472		1,636
CSR Corp. Ltd., Class H		1,065,669		741
Dah Chong Hong Holdings Ltd.		442,000		359
Daphne International Holdings Ltd.		561,100		341
Datang International Power Generation Co. Ltd., Class H		1,635,875		721

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
China – 18.7% – continued
Dongfeng Motor Group Co. Ltd., Class H		1,551,169		$2,354
ENN Energy Holdings Ltd.		425,279		2,362
Evergrande Real Estate Group Ltd. *		3,667,400		1,535
Far East Horizon Ltd.		775,000		512
Fosun International Ltd.		908,660		717
Franshion Properties China Ltd.		2,071,791		682
GCL-Poly Energy Holdings Ltd. *		5,305,675		1,536
Geely Automobile Holdings Ltd.		2,548,423		1,314
Golden Eagle Retail Group Ltd.		382,675		597
GOME Electrical Appliances Holding Ltd.		5,603,874		717
Great Wall Motor Co. Ltd., Class H		587,932		3,183
Greentown China Holdings Ltd.		372,325		701
Guangdong Investment Ltd.		1,398,514		1,203
Guangzhou Automobile Group Co. Ltd., Class H		1,233,760		1,336
Guangzhou R&F Properties Co. Ltd., Class H		509,214		797
Haier Electronics Group Co. Ltd.		428,000		830
Haitong Securities Co. Ltd., Class H		714,800		1,066
Hengan International Group Co. Ltd.		421,398		4,926
Huaneng Power International, Inc., Class H		1,812,501		1,803
Industrial & Commercial Bank of China Ltd., Class H		41,930,515		29,305
Inner Mongolia Yitai Coal Co. Ltd., Class B		603,616		1,211
Intime Retail Group Co. Ltd.		552,135		603
Jiangsu Expressway Co. Ltd., Class H		706,000		832
Jiangxi Copper Co. Ltd., Class H		790,000		1,560
Kingboard Chemical Holdings Ltd.		375,008		965
Kunlun Energy Co. Ltd.		1,807,230		2,531
Lee & Man Paper Manufacturing Ltd.		922,248		541
Lenovo Group Ltd.		3,578,000		3,748
Longfor Properties Co. Ltd.		757,731		1,203
New China Life Insurance Co. Ltd., Class H *		386,771		1,108
Nine Dragons Paper Holdings Ltd.		909,923		643
Parkson Retail Group Ltd.		669,500		281
People’s Insurance Co. Group of China Ltd., Class H		2,783,535		1,305
PetroChina Co. Ltd., Class H		11,993,438		13,209
PICC Property & Casualty Co. Ltd., Class H		1,770,923		2,401
Ping An Insurance Group Co. of China Ltd., Class H		1,069,953		7,973
Poly Property Group Co. Ltd.		1,109,737		668

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
China – 18.7% – continued
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		984,116		$965
Shanghai Electric Group Co. Ltd., Class H		1,572,000		560
Shanghai Industrial Holdings Ltd.		273,043		904
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		382,200		734
Shenzhou International Group Holdings Ltd.		331,000		1,076
Shimao Property Holdings Ltd.		778,903		1,795
Shougang Fushan Resources Group Ltd.		1,765,933		594
Shui On Land Ltd.		2,040,858		655
Sihuan Pharmaceutical Holdings Group Ltd.		1,165,063		797
Sino Biopharmaceutical		1,668,000		1,131
Sino-Ocean Land Holdings Ltd.		1,645,330		969
Sinopec Shanghai Petrochemical Co. Ltd., Class H *		1,398,670		522
Sinopharm Group Co. Ltd., Class H		572,714		1,436
SOHO China Ltd.		1,145,778		986
Sun Art Retail Group Ltd.		1,346,500		1,927
Tencent Holdings Ltd.		578,414		30,382
Tingyi Cayman Islands Holding Corp.		1,108,435		2,941
Tsingtao Brewery Co. Ltd., Class H		201,767		1,532
Uni-President China Holdings Ltd.		597,000		595
Want Want China Holdings Ltd.		3,392,870		5,151
Weichai Power Co. Ltd., Class H		279,953		1,092
Wumart Stores, Inc., Class H		300,470		535
Yantai Changyu Pioneer Wine Co. Ltd., Class B		131,713		450
Yanzhou Coal Mining Co. Ltd., Class H		1,079,138		1,057
Yingde Gases Group Co. Ltd.		610,700		598
Yuexiu Property Co. Ltd.		2,861,393		787
Zhaojin Mining Industry Co. Ltd., Class H		497,274		442
Zhejiang Expressway Co. Ltd., Class H		805,294		741
Zhongsheng Group Holdings Ltd.		305,000		482
Zhuzhou CSR Times Electric Co. Ltd., Class H		249,930		815
Zijin Mining Group Co. Ltd., Class H		3,496,162		838
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H		790,547		684
ZTE Corp., Class H *		354,898		735
				405,824

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Colombia – 0.9%
Almacenes Exito S.A.		113,594		$1,944
Bancolombia S.A.		115,952		1,636
Bancolombia S.A. ADR		8,252		475
Bolsa de Valores de Colombia		461,784		707
Cementos Argos S.A.		229,724		1,205
Corp. Financiera Colombiana S.A.		43,194		887
Ecopetrol S.A.		2,705,828		6,217
Ecopetrol S.A. ADR		5,700		262
Grupo Argos S.A.		163,834		1,937
Grupo de Inversiones Suramericana S.A.		132,292		2,646
Interconexion Electrica S.A. ESP		217,853		1,080
				18,996
Czech Republic – 0.2%
CEZ A.S.		91,629		2,369
Komercni Banka A.S.		8,674		1,931
Telefonica Czech Republic A.S.		62,000		985
				5,285
Egypt – 0.2%
Commercial International Bank Egypt S.A.E.		325,689		1,789
Global Telecom Holding *		1,514,852		965
Talaat Moustafa Group *		582,316		422
Telecom Egypt Co.		182,055		358
				3,534
Hungary – 0.2%
Magyar Telekom Telecommunications PLC		276,226		385
MOL Hungarian Oil & Gas PLC		23,785		1,721
OTP Bank PLC		118,338		2,342
				4,448
India – 5.6%
ACC Ltd.		24,673		438
Adani Enterprises Ltd.		125,066		282
Adani Ports and Special Economic Zone Ltd.		222,528		491
Aditya Birla Nuvo Ltd.		17,736		352
Ambuja Cements Ltd.		384,302		1,120
Apollo Hospitals Enterprise Ltd.		43,224		642
Asian Paints Ltd.		162,980		1,195
Bajaj Auto Ltd.		47,801		1,520
Bank of Baroda		23,389		184
Bank of India		61,664		155
Bharat Heavy Electricals Ltd.		332,898		732
Bharat Petroleum Corp. Ltd.		96,996		513

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
India – 5.6% – continued
Bharti Airtel Ltd.		341,125		$1,735
Cairn India Ltd.		267,199		1,357
Canara Bank		47,489		168
Cipla Ltd.		195,293		1,351
Coal India Ltd.		286,727		1,348
Dabur India Ltd.		236,130		639
Divi’s Laboratories Ltd.		21,423		332
DLF Ltd.		233,727		477
Dr. Reddy’s Laboratories Ltd.		42,546		1,618
Dr. Reddy’s Laboratories Ltd. ADR		15,005		567
GAIL India Ltd.		179,358		937
GlaxoSmithKline Consumer Healthcare Ltd.		5,737		398
Godrej Consumer Products Ltd.		70,619		946
HCL Technologies Ltd.		119,419		2,067
HDFC Bank Ltd.		781,131		7,392
HDFC Bank Ltd. ADR		31,500		970
Hero MotoCorp Ltd.		44,737		1,437
Hindalco Industries Ltd.		575,030		1,029
Hindustan Unilever Ltd.		367,459		3,680
Housing Development Finance Corp.		830,996		10,134
ICICI Bank Ltd.		63,709		899
ICICI Bank Ltd. ADR		29,471		898
Idea Cellular Ltd.		387,258		1,040
Infosys Ltd.		217,268		10,460
Infosys Ltd. ADR		43,137		2,075
ITC Ltd.		1,251,587		6,800
Jaiprakash Associates Ltd.		552,523		310
Jindal Steel & Power Ltd.		212,413		807
JSW Steel Ltd.		43,915		513
Kotak Mahindra Bank Ltd.		162,918		1,763
Larsen & Toubro Ltd.		169,759		2,137
Larsen & Toubro Ltd. GDR (Registered)		7,050		90
LIC Housing Finance Ltd.		158,161		476
Lupin Ltd.		43,364		594
Mahindra & Mahindra Financial Services Ltd.		143,342		589
Mahindra & Mahindra Ltd.		173,138		2,287
NTPC Ltd.		607,672		1,431
Oil & Natural Gas Corp. Ltd.		436,605		1,866
Oil India Ltd.		67,947		475
Piramal Enterprises Ltd.		37,487		355
Power Finance Corp. Ltd.		147,237		308
Power Grid Corp. of India Ltd.		626,476		981
Ranbaxy Laboratories Ltd. *		70,238		371

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
India – 5.6% – continued
Reliance Capital Ltd.		52,679		$266
Reliance Communications Ltd.		306,698		720
Reliance Industries Ltd.		592,921		7,797
Reliance Industries Ltd. GDR (1)(2)		70,126		1,845
Reliance Infrastructure Ltd.		55,302		328
Reliance Power Ltd. *		257,780		278
Rural Electrification Corp. Ltd.		170,211		512
Sesa Goa Ltd.		663,459		1,924
Sesa Goa Ltd. ADR *		3,120		35
Shriram Transport Finance Co. Ltd.		77,282		709
Siemens Ltd.		39,800		304
State Bank of India		75,814		1,954
Sun Pharmaceutical Industries Ltd.		350,502		3,327
Tata Consultancy Services Ltd.		266,180		8,198
Tata Motors Ltd.		392,418		2,095
Tata Motors Ltd. ADR		6,700		178
Tata Power Co. Ltd.		566,755		736
Tata Steel Ltd.		171,344		747
Titan Industries Ltd.		124,272		462
Ultratech Cement Ltd.		20,466		591
Unitech Ltd. *		689,678		173
United Breweries Ltd.		38,694		532
United Spirits Ltd.		48,726		1,977
Wipro Ltd.		319,833		2,423
Wipro Ltd. ADR		25,040		257
Wockhardt Ltd.		15,466		129
Zee Entertainment Enterprises Ltd.		134,446		490
				122,718
Indonesia – 2.3%
Adaro Energy Tbk PT		8,219,220		639
Astra Agro Lestari Tbk PT		217,222		366
Astra International Tbk PT		11,522,760		6,425
Bank Central Asia Tbk PT		7,024,192		6,074
Bank Danamon Indonesia Tbk PT		1,890,443		647
Bank Mandiri Persero Tbk PT		5,319,455		3,657
Bank Negara Indonesia Persero Tbk PT		4,252,409		1,498
Bank Rakyat Indonesia Persero Tbk PT		6,327,158		3,966
Bumi Resources Tbk PT *		8,195,731		323
Bumi Serpong Damai PT		3,925,500		489
Charoen Pokphand Indonesia Tbk PT		4,185,935		1,229
Global Mediacom Tbk PT		3,941,000		658
Gudang Garam Tbk PT		268,915		813
Indo Tambangraya Megah Tbk PT		230,278		523
Indocement Tunggal Prakarsa Tbk PT		830,303		1,289

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Indonesia – 2.3% – continued
Indofood CBP Sukses Makmur Tbk PT		654,000		$580
Indofood Sukses Makmur Tbk PT		2,477,871		1,512
Indosat Tbk PT		752,863		270
Jasa Marga Persero Tbk PT		1,135,000		510
Kalbe Farma Tbk PT		13,100,080		1,336
Lippo Karawaci Tbk PT *		11,063,500		1,042
Matahari Department Store Tbk PT *		817,273		742
Media Nusantara Citra Tbk PT		2,335,500		545
Perusahaan Gas Negara Persero Tbk PT		6,222,612		2,798
Semen Indonesia Persero Tbk PT		1,683,255		1,892
Tambang Batubara Bukit Asam Persero Tbk PT		443,000		484
Telekomunikasi Indonesia Persero Tbk PT		25,812,865		4,688
Unilever Indonesia Tbk PT		861,028		2,245
United Tractors Tbk PT		948,071		1,336
XL Axiata Tbk PT		1,449,860		531
				49,107
Malaysia – 3.6%
AirAsia Bhd.		698,300		549
Alliance Financial Group Bhd.		609,300		937
AMMB Holdings Bhd.		942,037		2,145
Astro Malaysia Holdings Bhd.		875,700		783
Axiata Group Bhd.		1,437,425		3,035
Berjaya Sports Toto Bhd.		363,356		458
British American Tobacco Malaysia Bhd.		72,200		1,422
Bumi Armada Bhd.		569,500		682
CIMB Group Holdings Bhd.		2,599,300		6,000
DiGi.Com Bhd.		2,004,300		2,982
Felda Global Ventures Holdings Bhd.		732,200		944
Gamuda Bhd.		963,600		1,360
Genting Bhd.		1,168,100		3,728
Genting Malaysia Bhd.		1,675,400		2,170
Genting Plantations Bhd.		129,900		375
Hong Leong Bank Bhd.		323,840		1,389
Hong Leong Financial Group Bhd.		120,100		535
IHH Healthcare Bhd. *		1,390,600		1,771
IJM Corp. Bhd.		619,820		1,099
IOI Corp. Bhd.		1,633,240		2,686
Kuala Lumpur Kepong Bhd.		273,150		1,898
Lafarge Malaysia Bhd.		213,900		618
Malayan Banking Bhd.		2,471,497		7,465
Malaysia Airports Holdings Bhd.		316,985		740
Maxis Bhd.		1,271,351		2,731
MISC Bhd. *		649,060		1,020

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Malaysia – 3.6% – continued
MMC Corp. Bhd.		431,875		$342
Parkson Holdings Bhd.		344,943		406
Petronas Chemicals Group Bhd.		1,576,900		3,315
Petronas Dagangan Bhd.		142,700		1,270
Petronas Gas Bhd.		336,400		2,272
PPB Group Bhd.		263,500		1,149
Public Bank Bhd.		9,913		54
Public Bank Bhd. (Registered)		598,600		3,255
RHB Capital Bhd.		365,893		849
Sapurakencana Petroleum Bhd. *		2,031,600		2,302
Sime Darby Bhd.		1,543,915		4,491
Telekom Malaysia Bhd.		589,700		947
Tenaga Nasional Bhd.		1,608,150		4,457
UEM Sunrise Bhd.		843,917		661
UMW Holdings Bhd.		299,800		1,088
YTL Corp. Bhd.		2,706,780		1,279
YTL Power International Bhd.		1,239,499		677
				78,336
Mexico – 5.0%
Alfa S.A.B. de C.V., Series A		1,607,880		4,336
America Movil S.A.B. de C.V., Series L		20,813,282		20,639
Arca Continental S.A.B. de C.V.		183,184		1,141
Cemex S.A.B. de C.V., Series CPO *		6,413,280		7,197
Coca-Cola Femsa S.A.B. de C.V., Series L		241,722		3,047
Compartamos S.A.B. de C.V.		609,972		1,136
Controladora Comercial Mexicana S.A.B. de C.V., Series UBC		228,500		972
El Puerto de Liverpool S.A.B. de C.V., Series C1		106,500		1,203
Fibra Uno Administracion S.A. de C.V.		752,400		2,086
Fomento Economico Mexicano S.A.B. de C.V., Series UBD		1,104,677		10,718
Genomma Lab Internacional S.A.B. de C.V., Series B *		440,700		1,007
Grupo Aeroportuario del Pacifico S.A.B. de C.V., Series B		179,152		917
Grupo Aeroportuario del Sureste S.A.B. de C.V., Series B		119,500		1,308
Grupo Bimbo S.A.B. de C.V., Series A		929,528		2,872
Grupo Carso S.A.B. de C.V., Series A1		327,306		1,747
Grupo Comercial Chedraui S.A. de C.V.		182,800		577
Grupo Financiero Banorte S.A.B. de C.V., Series O		1,387,618		8,646
Grupo Financiero Inbursa S.A.B. de C.V., Series O		1,320,243		3,016

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Mexico – 5.0% – continued
Grupo Financiero Santander Mexico S.A.B. de C.V., Series B		1,029,800		$2,854
Grupo Mexico S.A.B. de C.V., Series B		2,163,536		6,478
Grupo Televisa S.A.B., Series CPO		1,462,714		8,169
Industrias C.H. S.A.B. de C.V., Series B *		96,037		569
Industrias Penoles S.A.B. de C.V.		78,827		2,316
Kimberly-Clark de Mexico S.A.B. de C.V., Series A		878,227		2,568
Mexichem S.A.B. de C.V.		596,734		2,602
Minera Frisco S.A.B. de C.V., Series A1 *		364,006		945
OHL Mexico S.A.B. de C.V. *		388,100		1,021
Wal-Mart de Mexico S.A.B. de C.V., Series V		3,014,537		7,890
				107,977
Morocco – 0.1%
Attijariwafa Bank		17,268		660
Douja Promotion Groupe Addoha S.A.		66,598		378
Maroc Telecom S.A.		49,162		564
				1,602
Peru – 0.3%
Cia de Minas Buenaventura S.A.A. ADR		109,306		1,280
Credicorp Ltd.		38,452		4,939
				6,219
Philippines – 0.8%
Aboitiz Equity Ventures, Inc.		1,109,869		1,148
Aboitiz Power Corp.		1,055,644		764
Alliance Global Group, Inc.		1,150,924		622
Ayala Corp.		99,147		1,378
Ayala Land, Inc.		3,247,880		2,035
Bank of the Philippine Islands		391,102		865
BDO Unibank, Inc.		817,736		1,410
DMCI Holdings, Inc.		462,050		488
Energy Development Corp.		4,341,950		542
Globe Telecom, Inc.		19,105		702
International Container Terminal Services, Inc.		451,060		1,006
Jollibee Foods Corp.		237,653		915
Metro Pacific Investments Corp.		5,488,000		568
Metropolitan Bank & Trust		153,259		292
Philippine Long Distance Telephone Co.		24,280		1,656
SM Investments Corp.		79,205		1,420
SM Prime Holdings, Inc.		3,553,813		1,309
Universal Robina Corp.		488,970		1,380
				18,500

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Poland – 1.6%
Alior Bank S.A. *		21,413		$617
Bank Handlowy w Warszawie S.A.		18,400		654
Bank Millennium S.A. *		241,516		551
Bank Pekao S.A.		75,126		4,293
Bank Zachodni WBK S.A.		15,558		1,728
BRE Bank S.A.		8,237		1,187
Cyfrowy Polsat S.A. *		97,371		663
Enea S.A.		79,119		358
Eurocash S.A.		46,592		718
Grupa Azoty S.A.		22,371		529
Grupa Lotos S.A. *		38,826		457
Jastrzebska Spolka Weglowa S.A.		22,620		528
KGHM Polska Miedz S.A.		79,326		3,123
PGE S.A.		421,462		2,246
Polski Koncern Naftowy Orlen S.A.		181,016		2,563
Polskie Gornictwo Naftowe i Gazownictwo S.A.		1,005,700		1,974
Powszechna Kasa Oszczednosci Bank Polski S.A.		498,568		5,910
Powszechny Zaklad Ubezpieczen S.A.		32,007		4,346
Synthos S.A.		316,571		483
Tauron Polska Energia S.A.		586,494		901
Telekomunikacja Polska S.A.		376,798		1,003
				34,832
Russia – 5.7%
Federal Grid Co. Unified Energy System JSC *		182,254,477		555
Gazprom OAO		1,336,583		5,942
Gazprom OAO ADR		2,689,810		23,711
Inter RAO JSC *		1,143,364,281		391
LSR Group OJSC GDR (Registered)		100,684		428
Lukoil OAO		71,708		4,546
Lukoil OAO ADR		205,585		13,041
Lukoil OAO ADR (OTC Exchange)		11,873		755
Magnit OJSC		3,011		763
Magnit OJSC GDR (Registered)		144,466		8,900
MegaFon OAO GDR (Registered)		49,231		1,736
MMC Norilsk Nickel OJSC		13,729		1,985
MMC Norilsk Nickel OJSC ADR		80,388		1,154
MMC Norilsk Nickel OJSC ADR (London Exchange)		73,047		1,055
Mobile Telesystems OJSC ADR		292,750		6,517
NovaTek OAO GDR (Registered)		51,652		6,832
Rosneft OAO		195,465		1,590
Rosneft OAO GDR (Registered)		461,721		3,742

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Russia – 5.7% – continued
Rostelecom OJSC		669,444		$2,098
RusHydro JSC		35,863,245		597
RusHydro JSC ADR		266,069		418
Sberbank of Russia		3,902,900		11,778
Sberbank of Russia (OTC Exchange)		56,000		169
Sberbank of Russia ADR		540,900		6,519
Severstal OAO		22,803		199
Severstal OAO GDR (Registered)		94,209		812
Sistema JSFC GDR (Registered)		68,796		1,788
Surgutneftegas OAO		1,288,823		1,130
Surgutneftegas OAO ADR		120,622		1,058
Surgutneftegas OAO ADR (London Exchange)		156,044		1,340
Tatneft OAO		334,214		2,170
Tatneft OAO ADR		1,663		66
Tatneft OAO ADR (London Exchange)		76,412		2,993
TMK OAO GDR (Registered)		35,026		455
Uralkali OJSC		509,249		2,668
Uralkali OJSC GDR (Registered)		47,590		1,239
VTB Bank OJSC		846,000,422		1,114
VTB Bank OJSC GDR (1)(2)		11,036		29
VTB Bank OJSC GDR (Registered)		480,352		1,269
				123,552
South Africa – 7.2%
African Bank Investments Ltd.		409,902		682
African Rainbow Minerals Ltd.		61,696		1,208
Anglo American Platinum Ltd. *		38,669		1,677
AngloGold Ashanti Ltd.		217,459		2,902
Aspen Pharmacare Holdings Ltd. *		167,595		4,385
Assore Ltd.		19,605		851
Barclays Africa Group Ltd.		193,411		2,839
Barloworld Ltd.		122,498		1,163
Bidvest Group Ltd.		166,877		4,182
Discovery Ltd.		165,916		1,340
Exxaro Resources Ltd.		79,903		1,309
FirstRand Ltd.		1,769,413		5,902
Foschini Group (The) Ltd.		117,761		1,218
Gold Fields Ltd.		418,920		1,927
Growthpoint Properties Ltd.		1,031,465		2,531
Harmony Gold Mining Co. Ltd.		219,767		752
Impala Platinum Holdings Ltd.		305,083		3,753
Imperial Holdings Ltd.		106,409		2,310
Investec Ltd.		142,469		936
Kumba Iron Ore Ltd.		45,650		2,109

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
South Africa – 7.2% – continued
Liberty Holdings Ltd.		66,312		$772
Life Healthcare Group Holdings Ltd.		530,190		1,884
Massmart Holdings Ltd.		61,966		1,037
Mediclinic International Ltd.		208,518		1,542
MMI Holdings Ltd.		615,924		1,499
Mr Price Group Ltd.		135,103		1,871
MTN Group Ltd.		961,451		18,765
Nampak Ltd.		333,384		1,036
Naspers Ltd., Class N		224,153		20,678
Nedbank Group Ltd.		115,405		2,350
Netcare Ltd.		536,263		1,280
Northam Platinum Ltd. *		169,373		715
Pick n Pay Stores Ltd.		140,018		580
PPC Ltd.		294,519		885
Redefine Properties Ltd. *		1,679,911		1,631
Remgro Ltd.		271,279		5,240
Reunert Ltd.		99,367		718
RMB Holdings Ltd.		402,285		1,849
RMI Holdings		383,751		1,023
Sanlam Ltd.		1,014,145		4,732
Sappi Ltd. *		315,564		794
Sasol Ltd.		312,760		14,923
Shoprite Holdings Ltd.		243,191		4,000
Spar Group (The) Ltd.		98,066		1,182
Standard Bank Group Ltd.		690,409		8,241
Steinhoff International Holdings Ltd. *		721,804		2,569
Tiger Brands Ltd.		91,653		2,730
Truworths International Ltd.		248,946		2,231
Vodacom Group Ltd.		211,202		2,620
Woolworths Holdings Ltd.		428,433		3,165
				156,518
South Korea – 14.7%
Amorepacific Corp.		1,833		1,542
AMOREPACIFIC Group		1,551		567
BS Financial Group, Inc.		92,352		1,379
Celltrion, Inc.		34,205		1,491
Cheil Industries, Inc.		26,577		2,269
Cheil Worldwide, Inc. *		52,870		1,221
CJ CheilJedang Corp.		4,540		1,169
CJ Corp.		8,363		903
Coway Co. Ltd.		30,330		1,679
Daelim Industrial Co. Ltd.		15,639		1,408
Daewoo Engineering & Construction Co. Ltd. *		59,400		481

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
South Korea – 14.7% – continued
Daewoo International Corp.		25,528		$902
Daewoo Securities Co. Ltd.		93,638		858
Daewoo Shipbuilding & Marine Engineering Co. Ltd.		53,300		1,717
DGB Financial Group, Inc.		77,530		1,166
Dongbu Insurance Co. Ltd.		24,361		1,048
Doosan Corp.		4,570		642
Doosan Heavy Industries & Construction Co. Ltd.		27,582		1,185
Doosan Infracore Co. Ltd. *		55,880		817
E-Mart Co. Ltd.		11,922		2,677
GS Engineering & Construction Corp.		20,110		699
GS Holdings		29,100		1,528
Halla Visteon Climate Control Corp.		20,620		782
Hana Financial Group, Inc.		157,043		5,369
Hankook Tire Co. Ltd.		42,218		2,413
Hanwha Chemical Corp.		46,752		906
Hanwha Corp.		25,405		896
Hanwha Life Insurance Co. Ltd.		120,110		777
Hite Jinro Co. Ltd.		15,340		391
Hyosung Corp.		13,769		919
Hyundai Department Store Co. Ltd.		8,680		1,299
Hyundai Development Co.-Engineering & Construction		31,770		709
Hyundai Engineering & Construction Co. Ltd.		40,722		2,343
Hyundai Glovis Co. Ltd.		7,503		1,470
Hyundai Heavy Industries Co. Ltd.		23,883		5,866
Hyundai Hysco Co. Ltd.		17,798		761
Hyundai Marine & Fire Insurance Co. Ltd.		34,640		942
Hyundai Merchant Marine Co. Ltd. *		34,439		561
Hyundai Mipo Dockyard		6,094		891
Hyundai Mobis Co. Ltd.		38,761		10,321
Hyundai Motor Co.		87,620		20,475
Hyundai Securities Co. Ltd.		59,780		372
Hyundai Steel Co.		31,647		2,437
Hyundai Wia Corp.		8,812		1,391
Industrial Bank of Korea		92,310		1,023
Kangwon Land, Inc.		53,960		1,432
KB Financial Group, Inc.		220,584		7,704
KCC Corp.		2,642		1,112
Kia Motors Corp.		149,901		9,094
Korea Aerospace Industries Ltd.		22,690		565
Korea Electric Power Corp. *		146,476		4,100
Korea Gas Corp.		12,909		683

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
South Korea – 14.7% – continued
Korea Investment Holdings Co. Ltd.		21,680		$837
Korea Zinc Co. Ltd.		4,858		1,466
Korean Air Lines Co. Ltd. *		16,128		565
KT Corp.		14,619		490
KT Corp. ADR		6,526		109
KT&G Corp.		62,792		4,501
Kumho Petro chemical Co. Ltd.		7,702		728
LG Chem Ltd.		26,429		7,546
LG Corp.		53,420		3,292
LG Display Co. Ltd. *		130,020		3,142
LG Display Co. Ltd. ADR *		3,800		45
LG Electronics, Inc.		60,291		3,997
LG Household & Health Care Ltd.		5,288		2,674
LG Innotek Co. Ltd. *		5,984		479
LG Uplus Corp. *		123,102		1,321
Lotte Chemical Corp.		9,752		1,803
Lotte Confectionery Co. Ltd.		392		621
Lotte Shopping Co. Ltd.		6,369		2,256
LS Corp.		9,951		718
LS Industrial Systems Co. Ltd.		8,625		522
Mirae Asset Securities Co. Ltd.		14,075		483
NAVER Corp.		15,935		8,266
NCSoft Corp.		8,621		1,533
NHN Entertainment Corp. *		7,174		788
OCI Co. Ltd.		9,439		1,516
Orion Corp.		2,018		1,790
POSCO		35,697		10,570
POSCO ADR		5,928		437
S-1 Corp.		9,438		568
Samsung C&T Corp.		71,677		4,171
Samsung Card Co. Ltd.		19,352		719
Samsung Electro-Mechanics Co. Ltd.		33,699		2,708
Samsung Electronics Co. Ltd.		62,723		79,414
Samsung Engineering Co. Ltd.		16,778		1,286
Samsung Fire & Marine Insurance Co. Ltd.		20,256		4,651
Samsung Heavy Industries Co. Ltd.		91,310		3,651
Samsung Life Insurance Co. Ltd.		33,800		3,284
Samsung SDI Co. Ltd.		19,521		3,408
Samsung Securities Co. Ltd.		34,865		1,527
Samsung Techwin Co. Ltd.		21,270		1,208
Shinhan Financial Group Co. Ltd.		243,390		9,859
Shinsegae Co. Ltd.		3,891		837
SK C&C Co. Ltd.		12,912		1,382
SK Holdings Co. Ltd.		14,532		2,625

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
South Korea – 14.7% – continued
SK Hynix, Inc. *		296,310		$8,317
SK Innovation Co. Ltd.		34,300		4,663
SK Networks Co. Ltd.		66,100		402
SK Telecom Co. Ltd.		4,235		864
SK Telecom Co. Ltd. ADR		10,300		234
S-Oil Corp.		25,387		1,841
Woori Finance Holdings Co. Ltd.		207,490		2,407
Woori Investment & Securities Co. Ltd.		66,997		724
Yuhan Corp.		4,351		794
				319,391
Spain – 0.0%
Cemex Latam Holdings S.A. *		94,420		743
Taiwan – 11.0%
Acer, Inc. *		1,432,796		996
Advanced Semiconductor Engineering, Inc.		3,437,364		3,321
Advantech Co. Ltd.		156,285		875
Asia Cement Corp.		1,201,831		1,521
Asustek Computer, Inc.		386,546		3,100
AU Optronics Corp. *		4,903,215		1,829
Catcher Technology Co. Ltd.		381,111		2,019
Cathay Financial Holding Co. Ltd.		4,137,424		5,894
Chailease Holding Co. Ltd.		431,200		1,013
Chang Hwa Commercial Bank		2,608,163		1,521
Cheng Shin Rubber Industry Co. Ltd.		910,184		2,384
Cheng Uei Precision Industry Co. Ltd.		232,886		467
Chicony Electronics Co. Ltd.		271,194		676
China Airlines Ltd. *		1,467,307		551
China Development Financial Holding Corp.		7,711,868		2,217
China Life Insurance Co. Ltd.		1,276,413		1,150
China Motor Corp.		328,000		296
China Petrochemical Development Corp.		959,172		472
China Steel Corp.		6,591,467		5,787
Chunghwa Telecom Co. Ltd.		2,132,493		6,797
Chunghwa Telecom Co. Ltd. ADR		4,048		128
Clevo Co.		271,970		530
Compal Electronics, Inc.		2,406,759		1,759
CTBC Financial Holding Co. Ltd.		7,477,088		4,883
CTCI Corp.		316,000		511
Delta Electronics, Inc.		1,024,521		4,976
E.Sun Financial Holding Co. Ltd.		2,630,695		1,702
Eclat Textile Co. Ltd.		91,368		803
Epistar Corp. *		486,351		922

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Taiwan – 11.0% – continued
Eva Airways Corp. *		916,271		$521
Evergreen Marine Corp. Taiwan Ltd. *		977,795		580
Far Eastern Department Stores Co. Ltd.		557,362		587
Far Eastern New Century Corp.		1,753,792		1,934
Far EasTone Telecommunications Co. Ltd.		900,345		2,245
Farglory Land Development Co. Ltd.		189,000		352
Feng Hsin Iron & Steel Co.		237,160		417
First Financial Holding Co. Ltd.		3,958,406		2,368
Formosa Chemicals & Fibre Corp.		1,843,499		4,904
Formosa International Hotels Corp.		20,476		230
Formosa Petrochemical Corp.		649,487		1,707
Formosa Plastics Corp.		2,366,682		6,110
Formosa Taffeta Co. Ltd.		412,827		402
Foxconn Technology Co. Ltd.		472,094		1,227
Fubon Financial Holding Co. Ltd.		3,800,025		5,259
Giant Manufacturing Co. Ltd.		157,483		1,074
Hermes Microvision, Inc.		17,000		495
Highwealth Construction Corp.		178,200		393
Hiwin Technologies Corp.		104,651		701
Hon Hai Precision Industry Co. Ltd.		6,296,620		16,147
Hotai Motor Co. Ltd.		141,900		1,546
HTC Corp.		411,220		1,843
Hua Nan Financial Holdings Co. Ltd.		3,091,756		1,767
Innolux Corp. *		3,860,392		1,856
Inventec Corp.		1,365,314		1,321
Kinsus Interconnect Technology Corp.		159,587		562
Largan Precision Co. Ltd.		56,835		1,914
LCY Chemical Corp.		284,648		360
Lite-On Technology Corp.		1,181,411		2,006
MediaTek, Inc.		690,507		8,542
Mega Financial Holding Co. Ltd.		4,845,972		3,974
Merida Industry Co. Ltd.		114,000		741
MStar Semiconductor, Inc.		104,317		963
Nan Kang Rubber Tire Co. Ltd.		326,769		394
Nan Ya Plastics Corp.		2,712,951		5,711
Novatek Microelectronics Corp.		307,850		1,276
Pegatron Corp.		896,594		1,280
Phison Electronics Corp.		76,608		552
Pou Chen Corp.		1,152,093		1,343
Powertech Technology, Inc. *		364,568		688
President Chain Store Corp.		326,220		2,357
Quanta Computer, Inc.		1,412,576		3,065
Radiant Opto-Electronics Corp.		244,800		874
Realtek Semiconductor Corp.		265,457		649

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Taiwan – 11.0% – continued
Ruentex Development Co. Ltd.		339,562		$696
Ruentex Industries Ltd.		274,781		689
ScinoPharm Taiwan Ltd.		113,360		335
Shin Kong Financial Holding Co. Ltd.		3,717,398		1,257
Siliconware Precision Industries Co.		1,681,480		1,966
Simplo Technology Co. Ltd.		156,532		760
SinoPac Financial Holdings Co. Ltd.		3,746,499		1,720
Standard Foods Corp.		162,242		486
Synnex Technology International Corp.		704,086		1,103
Taishin Financial Holding Co. Ltd.		3,592,224		1,658
Taiwan Business Bank *		1,963,922		587
Taiwan Cement Corp.		1,877,055		2,718
Taiwan Cooperative Financial Holding Co. Ltd.		3,147,707		1,731
Taiwan Fertilizer Co. Ltd.		439,000		1,035
Taiwan Glass Industry Corp.		538,377		547
Taiwan Mobile Co. Ltd.		957,076		3,400
Taiwan Semiconductor Manufacturing Co. Ltd.		13,988,193		47,561
Teco Electric and Machinery Co. Ltd.		986,000		1,045
TPK Holding Co. Ltd.		129,003		1,174
Transcend Information, Inc. *		109,442		345
Tripod Technology Corp.		245,082		478
TSRC Corp.		320,892		573
U-Ming Marine Transport Corp.		233,000		423
Unimicron Technology Corp.		733,418		625
Uni-President Enterprises Corp.		2,502,666		4,665
United Microelectronics Corp.		6,771,043		2,899
Vanguard International Semiconductor Corp.		411,000		452
Walsin Lihwa Corp. *		1,792,770		548
Wan Hai Lines Ltd.		646,825		371
Wistron Corp.		1,223,225		1,186
WPG Holdings Ltd.		833,316		981
Ya Hsin Industrial Co. Ltd. (3)*		121,548		–
Yang Ming Marine Transport Corp. *		753,356		346
Yuanta Financial Holding Co. Ltd.		4,814,647		2,468
Yulon Motor Co. Ltd.		426,257		714
Zhen Ding Technology Holding Ltd.		122,850		293
				240,172
Thailand – 2.4%
Advanced Info Service PCL (Registered)		194,000		1,581
Advanced Info Service PCL NVDR		396,699		3,243
Airports of Thailand PCL NVDR		241,900		1,462
Bangkok Bank PCL (Registered)		381,900		2,410

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Thailand – 2.4% – continued
Bangkok Bank PCL NVDR		435,000		$2,732
Bangkok Dusit Medical Services PCL NVDR		181,700		732
Bank of Ayudhya PCL (Registered)		518,654		627
Bank of Ayudhya PCL NVDR		849,668		1,027
Banpu PCL (Registered)		233,500		205
Banpu PCL NVDR		382,580		336
BEC World PCL (Registered)		196,500		356
BEC World PCL NVDR		362,207		659
Central Pattana PCL NVDR		730,400		1,031
Charoen Pokphand Foods PCL NVDR		1,540,357		1,184
CP ALL PCL (Registered)		905,200		1,020
CP ALL PCL NVDR		1,599,336		1,804
Glow Energy PCL (Registered)		87,100		182
Glow Energy PCL NVDR		210,302		440
Home Product Center PCL NVDR		1,400,200		542
Indorama Ventures PCL NVDR		846,647		592
IRPC PCL (Registered)		1,860,900		187
IRPC PCL NVDR		3,893,681		392
Kasikornbank PCL		50,000		281
Kasikornbank PCL (Registered)		280,600		1,588
Kasikornbank PCL NVDR		736,797		4,134
Krung Thai Bank PCL (Registered)		699,750		429
Krung Thai Bank PCL NVDR		1,284,193		791
Minor International PCL NVDR		877,500		675
PTT Exploration & Production PCL NVDR		545,243		2,846
PTT Exploration & Production PCL (Registered)		242,500		1,268
PTT Global Chemical PCL (Registered)		189,814		452
PTT Global Chemical PCL NVDR		754,876		1,803
PTT PCL (Registered)		183,500		1,854
PTT PCL NVDR		302,200		3,054
Siam Cement PCL (Registered)		51,000		702
Siam Cement PCL NVDR		199,398		2,728
Siam Commercial Bank PCL (Registered)		232,700		1,157
Siam Commercial Bank PCL NVDR		769,776		3,653
Thai Oil PCL (Registered)		97,800		181
Thai Oil PCL NVDR		385,695		713
True Corp. PCL NVDR *		2,900,000		722
				51,775
Turkey – 1.7%
Akbank T.A.S.		1,027,773		3,788
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		118,475		1,373
Arcelik A.S.		130,841		762

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.8% – continued
Turkey – 1.7% – continued
BIM Birlesik Magazalar A.S.		120,354		$2,479
Coca-Cola Icecek A.S.		37,079		946
Dogan Yayin Holding A.S. *		1		–
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		349,047		472
Enka Insaat ve Sanayi A.S.		232,934		692
Eregli Demir ve Celik Fabrikalari T.A.S.		774,671		982
Ford Otomotiv Sanayi A.S.		41,018		565
Haci Omer Sabanci Holding A.S.		457,234		2,211
Is Gayrimenkul Yatirim Ortakligi A.S.		1		–
KOC Holding A.S.		358,049		1,653
Koza Altin Isletmeleri A.S.		25,703		408
TAV Havalimanlari Holding A.S.		92,678		654
Tofas Turk Otomobil Fabrikasi A.S.		74,079		451
Tupras Turkiye Petrol Rafinerileri A.S.		70,808		1,497
Turk Hava Yollari AO		310,928		1,186
Turk Telekomunikasyon A.S.		255,063		887
Turkcell Iletisim Hizmetleri A.S. *		437,210		2,577
Turkiye Garanti Bankasi A.S.		1,316,722		5,192
Turkiye Halk Bankasi A.S.		358,362		2,625
Turkiye Is Bankasi, Class C		885,793		2,343
Turkiye Sise ve Cam Fabrikalari A.S.		282,070		388
Turkiye Vakiflar Bankasi Tao, Class D		421,848		964
Yapi ve Kredi Bankasi A.S.		488,240		1,088
				36,183
Ukraine – 0.0%
Kernel Holding S.A. *		29,702		469
United States – 0.1%
Southern Copper Corp.		96,427		2,627
Total Common Stocks (4)
(Cost $1,744,296)				1,953,408
PREFERRED STOCKS – 6.5%
Brazil – 5.2%
AES Tiete S.A.		58,353		578
Banco Bradesco S.A. *		985,462		13,628
Banco do Estado do Rio Grande do Sul S.A., Class B *		105,218		732
Bradespar S.A. *		128,401		1,425
Braskem S.A., Class A *		87,041		691
Centrais Eletricas Brasileiras S.A., Class B *		128,141		593
Cia Brasileira de Distribuicao Grupo Pao de Acucar		70,442		3,228
Cia de Bebidas das Americas		354,499		13,581

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
PREFERRED STOCKS – 6.5% – continued
Brazil – 5.2% – continued
Cia de Bebidas das Americas ADR		35,900		$1,377
Cia Energetica de Minas Gerais		304,992		2,608
Cia Energetica de Sao Paulo, Class B *		95,108		1,001
Cia Paranaense de Energia, Class B		53,744		754
Gerdau S.A. *		487,761		3,627
Itau Unibanco Holding S.A.		1,426,780		20,201
Itausa - Investimentos Itau S.A.		1,614,025		6,562
Klabin S.A.		271,221		1,416
Lojas Americanas S.A. *		228,694		1,685
Marcopolo S.A. *		252,352		751
Metalurgica Gerdau S.A. *		153,499		1,443
Oi S.A.		292,398		561
Petroleo Brasileiro S.A. *		1,985,195		16,499
Suzano Papel e Celulose S.A., Class A		165,800		657
Telefonica Brasil S.A. *		140,791		3,141
Telefonica Brasil S.A. ADR *		27,945		627
Usinas Siderurgicas de Minas Gerais S.A., Class A *		220,144		1,051
Vale S.A.		1,076,930		15,350
				113,767
Chile – 0.1%
Embotelladora Andina S.A., Class B		145,037		797
Sociedad Quimica y Minera de Chile S.A., Class B		50,903		1,547
				2,344
Colombia – 0.3%
Banco Davivienda S.A.		53,813		715
Bancolombia S.A.		159,900		2,300
Grupo Argos S.A.		66,025		776
Grupo Aval Acciones y Valores		827,034		603
Grupo de Inversiones Suramericana S.A.		53,792		1,088
				5,482
Russia – 0.3%
AK Transneft OAO		878		2,301
Sberbank of Russia		571,494		1,316
Surgutneftegas OAO		2,532,324		1,828
Surgutneftegas OAO ADR		140,161		999
				6,444
South Korea – 0.6%
Hyundai Motor Co. Ltd.		21,582		2,264
Hyundai Motor Co. Ltd.		13,706		1,374
LG Chem Ltd.		4,159		542

	NUMBER OF SHARES		VALUE (000s)
PREFERRED STOCKS – 6.5% – continued
South Korea – 0.6% – continued
Samsung Electronics Co. Ltd.		11,690		$9,480
				13,660
Total Preferred Stocks (4)
(Cost $151,488)				141,697
RIGHTS – 0.0%
Chile – 0.0%
Cia Cervecerias Unidas S.A. *		10,092		4
South Korea – 0.0%
Hyundai Merchant Marine Co. Ltd. *		2,710		9
Korea Gas Corp. *		2,148		19
				28
Total Rights (4)
(Cost $39)				32
INVESTMENT COMPANIES – 2.0%
iShares MSCI Emerging Markets ETF		278,520		11,355
iShares MSCI South Korea Capped ETF		56,385		3,469
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (5)(6)		10,085,277		10,085
Vanguard FTSE Emerging Markets ETF		458,900		18,407
Total Investment Companies
(Cost $42,205)				43,316
Total Investments – 98.3%
(Cost $1,938,028)				2,138,453
Other Assets less Liabilities – 1.7%				36,298
NET ASSETS – 100.0%				$2,174,751

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $1,874,000 or 0.1% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Reliance Industries Ltd. GDR	11/1/06-12/06/12		$1,996
VTB Bank OJSC GDR	5/11/07-10/28/09		80

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

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (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) The Fund had approximately $10,085,000 of net purchases in the Diversified Assets Portfolio of the Northern Institutional Funds during the six months ended September 30, 2013.

(6) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an 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 September 30, 2013, 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)		7		$2,033		Long		12/13		$20
FTSE/JSE Top 40 Index (South African Rand)		185		7,324		Long		12/13		78
Hang Seng Index (Hong Kong Dollar)		53		7,819		Long		10/13		(141)
MSCI Emerging Markets Index (United States Dollar)		235		11,547		Long		12/13		(82)
MSCI Taiwan Index (United States Dollar)		237		6,804		Long		10/13		(125)
S&P/TSX 60 Index (Canadian Dollar)		34		4,822		Long		12/13		(13)
SGX S&P CNX Nifty Index (United States Dollar)		366		4,220		Long		10/13		(127)
SPI 200 Index (Australian Dollar)		18		2,193		Long		12/13		(14)
Total										$(404)

At September 30, 2013, the Emerging Markets Equity Index Fund had outstanding forward 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		770	Indian Rupee		50,312		12/18/13		$13
United States Dollar		5,520	Korean Won		6,030,600		12/18/13		58

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000s)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000s)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000s)
United States Dollar		2,370	Taiwan Dollar		70,030		12/18/13		$7
Total									$78

At September 30, 2013, the industry sectors for the Emerging Markets Equity Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		8.7%
Consumer Staples		8.7
Energy		11.7
Financials		28.2
Health Care		1.5
Industrials		6.1
Information Technology		14.8
Materials		9.7
Telecommunication Services		7.5
Utilities		3.1
Total		100.0%

At September 30, 2013, the Emerging Markets Equity Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
Hong Kong Dollar		19.0%
Korean Won		15.6
Taiwan Dollar		11.3
Brazilian Real		10.8
United States Dollar		9.3
South African Rand		7.4
Indian Rupee		5.4
Mexican Peso		5.1
All other currencies less than 5%		16.1
Total		100.0%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

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 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 September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$23,498		$155,511		$–		$179,009
Consumer Staples		56,695		109,550		–		166,245
Energy		43,331		184,378		–		227,709
Financials		76,064		443,029		–		519,093
Health Care		3,263		29,331		–		32,594
Industrials		22,986		106,810		–		129,796
Information Technology		8,983		296,506		–		305,489
Materials		49,385		128,102		–		177,487
Telecommunication
Services		33,068		121,739		–		154,807
Utilities		18,181		42,998		–		61,179
Preferred Stocks
Consumer Discretionary		1,685		3,638		–		5,323
Consumer Staples		18,983		–		–		18,983
Energy		21,627		–		–		21,627
Financials		42,439		4,706		–		47,145
Industrials		752		–		–		752
Information Technology		–		9,480		–		9,480
Materials		27,207		1,318		–		28,525
Telecommunication
Services		4,329		–		–		4,329
Utilities		5,533		–		–		5,533
Rights
Consumer Staples		4		–		–		4
Industrials		–		9		–		9
Utilities		19		–		–		19
Investment Companies		43,316		–		–		43,316
Total Investments		$501,348		$1,637,105		$–		$2,138,453

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$98			$–		$–		$98
Forward Foreign Currency Exchange Contracts		–			78		–		78
Liabilities
Futures Contracts		(502	)		–		–		(502	)
Total Other Financial Instruments		$(404	)		$78		$–		$(326	)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Consumer Discretionary		$77,456	Valuations at last trade with foreign fair value adjustments
Consumer Staples		42,275	Valuations at last trade with foreign fair value adjustments
Energy		58,800	Valuations at last trade with foreign fair value adjustments
Financials		157,829	Valuations at last trade with foreign fair value adjustments
Health Care		5,123	Valuations at last trade with foreign fair value adjustments
Industrials		64,995	Valuations at last trade with foreign fair value adjustments
Information Technology		234,751	Valuations at last trade with foreign fair value adjustments
Materials		76,017	Valuations at last trade with foreign fair value adjustments
Telecommunication Services		33,662	Valuations at last trade with foreign fair value adjustments
Utilities		14,987	Valuations at last trade with foreign fair value adjustments
Preferred Stocks
Consumer Discretionary		3,638	Valuations at last trade with foreign fair value adjustments
Financials		4,706	Valuations at last trade with foreign fair value adjustments
Information Technology		9,480	Valuations at last trade with foreign fair value adjustments
Materials		1,318	Valuations at last trade with foreign fair value adjustments
Total		$785,037

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.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2%
Australia – 5.9%
BGP Holdings PLC - (Fractional Shares) *		6,535,576		$–
BWP Trust		702,895		1,495
CFS Retail Property Trust Group		2,222,163		4,148
Charter Hall Retail REIT		369,925		1,298
Commonwealth Property Office Fund		2,641,247		2,809
Dexus Property Group		5,009,403		4,700
Federation Centres Ltd.		1,430,082		3,044
Goodman Group		1,928,220		8,784
GPT Group		1,769,419		5,745
Investa Office Fund		642,573		1,769
Mirvac Group		4,122,055		6,692
Stockland		2,595,269		9,371
Westfield Group		2,332,358		23,958
Westfield Retail Trust		3,196,664		8,862
				82,675
Austria – 0.6%
Atrium European Real Estate Ltd. *		188,241		1,066
CA Immobilien Anlagen A.G. *		82,239		1,194
Conwert Immobilien Invest S.E. *		66,761		786
IMMOFINANZ A.G. *		1,088,368		4,751
				7,797
Belgium – 0.4%
Aedifica		9,616		663
Befimmo		18,152		1,258
Cofinimmo		19,079		2,235
Intervest Offices & Warehouses		7,147		176
Leasinvest Real Estate S.C.A.		2,071		198
Warehouses De Pauw S.C.A.		11,738		823
Wereldhave Belgium N.V.		2,332		270
				5,623
Brazil – 1.5%
Aliansce Shopping Centers S.A.		88,808		800
BR Malls Participacoes S.A.		482,923		4,406
BR Properties S.A.		222,483		1,965
Brookfield Incorporacoes S.A. *		295,979		215
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		313,528		2,371
Direcional Engenharia S.A.		94,130		510
Even Construtora e Incorporadora S.A.		219,575		837
Ez Tec Empreendimentos e Participacoes S.A.		54,940		757
Gafisa S.A.*		499,500		811
General Shopping Brasil S.A. *		21,504		82

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Brazil – 1.5% – continued
Helbor Empreendimentos S.A.		135,736		$570
Iguatemi Empresa de Shopping Centers S.A.		67,072		736
JHSF Participacoes S.A.		129,316		371
MRV Engenharia e Participacoes S.A.		346,303		1,411
Multiplan Empreendimentos Imobiliarios S.A. *		85,921		2,057
PDG Realty S.A. Empreendimentos e Participacoes *		1,505,882		1,651
Rodobens Negocios Imobiliarios S.A.		28,773		189
Rossi Residencial S.A. *		326,031		468
Sonae Sierra Brasil S.A.		30,615		300
Tecnisa S.A. *		98,731		413
				20,920
Canada – 3.3%
Allied Properties Real Estate Investment Trust		76,298		2,404
Artis Real Estate Investment Trust		141,317		1,950
Boardwalk Real Estate Investment Trust		44,640		2,497
Calloway Real Estate Investment Trust		114,230		2,700
Canadian Apartment Properties REIT		114,031		2,266
Canadian Real Estate Investment Trust		76,267		3,005
Chartwell Retirement Residences		194,189		1,904
Cominar Real Estate Investment Trust		140,306		2,622
Crombie Real Estate Investment Trust		59,381		740
Dundee International Real Estate Investment Trust		106,525		973
Dundee Real Estate Investment Trust, Class A		117,171		3,303
Extendicare, Inc.		97,378		623
First Capital Realty, Inc.		93,295		1,533
Granite Real Estate Investment Trust		52,817		1,895
H&R Real Estate Investment Trust		301,572		6,204
InnVest Real Estate Investment Trust		98,808		398
Killam Properties, Inc.		55,724		590
Morguard Real Estate Investment Trust		38,831		617
Northern Property Real Estate Investment Trust		35,951		966
NorthWest Healthcare Properties Real Estate Investment Trust		35,276		382
Pure Industrial Real Estate Trust		152,520		656
RioCan Real Estate Investment Trust		339,894		8,019
				46,247
China – 1.9%
Agile Property Holdings Ltd.		1,401,979		1,542
Beijing Capital Land Ltd., Class H		1,212,000		431

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
China – 1.9% – continued
Beijing North Star Co. Ltd., Class H		767,662		$176
China Merchants Property Development Co. Ltd., Class B		165,508		507
China Vanke Co. Ltd., Class B		1,478,641		2,699
Country Garden Holdings Co. Ltd.		4,919,233		3,156
Evergrande Real Estate Group Ltd. *		5,583,000		2,337
Fantasia Holdings Group Co. Ltd.		2,443,500		388
Greentown China Holdings Ltd.		871,500		1,642
Guangzhou R&F Properties Co. Ltd., Class H		1,085,802		1,700
Hui Xian Real Estate Investment Trust		2,281,930		1,428
Kaisa Group Holdings Ltd. *		1,858,600		518
Longfor Properties Co. Ltd.		1,525,500		2,423
Powerlong Real Estate Holdings Ltd.		1,641,000		325
Renhe Commercial Holdings Co. Ltd. *		11,876,000		683
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		568,144		966
Shui On Land Ltd.		3,394,277		1,089
Sino-Ocean Land Holdings Ltd.		3,547,886		2,090
SOHO China Ltd.		1,726,256		1,486
SPG LAND		346,000		252
Sunac China Holdings Ltd.		1,788,050		1,162
				27,000
Egypt – 0.0%
Six of October Development & Investment *		71,164		227
Finland – 0.2%
Citycon OYJ		259,239		873
Sponda OYJ		271,137		1,401
Technopolis OYJ		74,439		492
				2,766
France – 3.1%
Affine S.A.		7,469		145
ANF Immobilier		7,347		215
Fonciere Des Regions		37,908		3,145
Gecina S.A.		20,664		2,646
ICADE		35,322		3,227
Klepierre		109,830		4,764
Mercialys S.A.		46,622		934
Orco Property Group *		112,839		356
Societe de la Tour Eiffel		6,398		423
Unibail-Rodamco S.E.		109,428		27,163
				43,018

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Germany – 1.2%
Alstria Office REIT-A.G. *		76,409		$950
Deutsche Annington Immobilien S.E. *		40,525		1,042
Deutsche Euroshop A.G.		51,755		2,243
Deutsche Wohnen A.G. (Bearer)		190,180		3,404
DIC Asset A.G.		24,086		266
GAGFAH S.A. *		126,383		1,649
GSW Immobilien A.G.		56,878		2,498
Hamborner REIT A.G.		52,782		515
LEG Immobilien A.G. *		29,841		1,719
Prime Office REIT-A.G. *		46,030		206
TAG Immobilien A.G.		139,469		1,731
				16,223
Greece – 0.0%
Eurobank Properties Real Estate Investment Co. *		30,370		305
Hong Kong – 9.5%
C C Land Holdings Ltd.		1,508,000		405
Champion REIT		2,866,846		1,308
China Overseas Land & Investment Ltd.		4,592,542		13,515
China Resources Land Ltd.		2,097,218		5,955
CIFI Holdings Group Co. Ltd.		1,958,880		344
CSI Properties Ltd.		5,900,000		228
Franshion Properties China Ltd.		4,114,000		1,354
Glorious Property Holdings Ltd. *		3,136,100		449
Hang Lung Properties Ltd.		2,511,452		8,539
Henderson Land Development Co. Ltd.		1,159,143		7,174
HKR International Ltd.		790,400		386
Hongkong Land Holdings Ltd.		1,320,618		8,719
Hopson Development Holdings Ltd. *		688,000		818
Hysan Development Co. Ltd.		704,045		3,144
K Wah International Holdings Ltd.		1,183,206		639
Kerry Properties Ltd.		723,099		3,089
KWG Property Holding Ltd.		1,298,000		820
Link REIT (The)		2,570,300		12,599
Mingfa Group International Co. Ltd. *		1,161,000		300
Minmetals Land Ltd.		1,232,000		180
New World China Land Ltd.		2,915,899		1,468
New World Development Co. Ltd.		4,227,595		6,370
Poly Property Group Co. Ltd.		2,043,000		1,230
Shanghai Industrial Urban Development Group Ltd. *		1,452,000		356
Shenzhen Investment Ltd.		2,439,635		989
Shimao Property Holdings Ltd.		1,559,369		3,594
Sino Land Co. Ltd.		3,346,216		4,921

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Hong Kong – 9.5% – continued
Sinolink Worldwide Holdings Ltd. *		2,186,000		$191
Sun Hung Kai Properties Ltd.		1,734,619		23,637
Swire Properties Ltd.		1,316,000		3,682
Wharf Holdings Ltd.		1,703,317		14,780
Yuexiu Property Co. Ltd.		5,301,400		1,458
				132,641
India – 0.1%
DLF Ltd.		478,377		977
Prestige Estates Projects Ltd.		99,656		187
Unitech Ltd. *		1,579,788		397
				1,561
Indonesia – 0.6%
Agung Podomoro Land Tbk PT		8,106,696		196
Alam Sutera Realty Tbk PT		13,183,140		684
Bakrieland Development Tbk PT *		52,175,643		225
Bumi Serpong Damai PT		7,800,000		971
Ciputra Development Tbk PT		11,880,790		1,007
Ciputra Property Tbk PT		3,294,938		231
Ciputra Surya Tbk PT		937,500		176
Intiland Development Tbk PT		6,332,000		175
Kawasan Industri Jababeka Tbk PT		17,955,707		388
Lippo Karawaci Tbk PT *		21,490,531		2,024
Pakuwon Jati Tbk PT		13,771,140		339
Sentul City Tbk PT *		21,150,517		375
Summarecon Agung Tbk PT		12,100,500		965
				7,756
Israel – 0.1%
Azrieli Group		40,966		1,301
Italy – 0.1%
Beni Stabili S.p.A.		955,839		595
Immobiliare Grande Distribuzione		133,297		142
				737
Japan – 13.0%
Activia Properties, Inc.		207		1,798
Advance Residence Investment Corp.		1,362		3,182
Aeon Mall Co. Ltd.		124,166		3,692
Daiwahouse Residential Investment Corp.		345		1,499
Frontier Real Estate Investment Corp.		200		2,062
GLP J-Reit *		1,758		1,965
Hulic Co. Ltd.		332,540		5,004
Industrial & Infrastructure Fund Investment Corp.		158		1,500
Japan Excellent, Inc.		228		1,484

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Japan – 13.0% – continued
Japan Logistics Fund, Inc.		167		$1,683
Japan Prime Realty Investment Corp.		891		3,131
Japan Real Estate Investment Corp.		664		7,782
Japan Retail Fund Investment Corp.		2,335		4,805
Kenedix Realty Investment Corp.		321		1,583
Mitsubishi Estate Co. Ltd.		1,424,480		42,267
Mitsui Fudosan Co. Ltd.		952,562		32,196
Mori Hills REIT Investment Corp.		258		1,788
Mori Trust Sogo Reit, Inc.		204		1,949
Nippon Accommodations Fund, Inc.		250		1,823
Nippon Building Fund, Inc.		742		9,241
Nippon Prologis REIT, Inc.		264		2,645
Nomura Real Estate Holdings, Inc.		135,000		3,325
Nomura Real Estate Master Fund, Inc.		1,876		1,909
Nomura Real Estate Office Fund, Inc.		398		2,046
NTT Urban Development Corp.		122,200		1,606
Orix JREIT, Inc.		1,781		2,266
Premier Investment Corp.		212		967
Sumitomo Realty & Development Co. Ltd.		535,425		25,535
Tokyo Tatemono Co. Ltd.		482,201		4,441
Tokyu REIT, Inc.		207		1,318
Top REIT, Inc.		167		841
United Urban Investment Corp.		2,679		4,090
				181,423
Malaysia – 0.5%
CapitaMalls Malaysia Trust		994,600		479
Eastern & Oriental Bhd.		835,900		526
Glomac Bhd.		411,300		144
IGB Corp. Bhd.		1,100,754		878
IGB Real Estate Investment Trust		1,825,000		694
IJM Land Bhd.		411,950		340
KLCC Property Holdings Bhd.		506,048		998
Mah Sing Group Bhd.		996,020		676
Pavilion Real Estate Investment Trust		1,037,500		433
SP Setia Bhd.		688,535		704
Tebrau Teguh Bhd. *		484,700		188
UEM Sunrise Bhd.		1,700,340		1,332
YTL Land & Development Bhd. *		408,800		124
				7,516
Mexico – 0.1%
Consorcio ARA S.A.B. de C.V. *		773,693		311
Corp. GEO S.A.B. de C.V., Series B *		549,034		70
Desarrolladora Homex S.A.B. de C.V. *		234,285		83

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Mexico – 0.1% – continued
Mexico Real Estate Management S.A. de C.V. *		637,000		$1,089
Urbi Desarrollos Urbanos S.A.B. de C.V. *		776,726		93
				1,646
Netherlands – 0.6%
Corio N.V.		73,711		3,172
Eurocommercial Properties N.V. - CVA		39,078		1,581
Nieuwe Steen Investments N.V.		59,941		423
Vastned Retail N.V.		21,227		902
Wereldhave N.V.		24,504		1,776
				7,854
New Zealand – 0.1%
Kiwi Income Property Trust		1,112,564		1,001
Norway – 0.1%
Norwegian Property ASA		578,582		765
Philippines – 0.6%
Ayala Land, Inc.		6,334,051		3,970
Filinvest Land, Inc.		11,234,989		413
Megaworld Corp.		13,166,101		987
Robinsons Land Corp.		1,838,575		863
SM Prime Holdings, Inc.		6,050,553		2,229
Vista Land & Lifescapes, Inc.		3,813,861		465
				8,927
Poland – 0.0%
Globe Trade Centre S.A. *		256,193		594
Russia – 0.0%
PIK Group *		316,872		623
Singapore – 3.9%
Ascendas India Trust		738,000		368
Ascendas Real Estate Investment Trust		2,212,753		4,023
CapitaCommercial Trust		2,199,014		2,543
CapitaLand Ltd.		2,854,915		7,039
CapitaMall Trust		2,916,715		4,558
CapitaMalls Asia Ltd.		1,530,000		2,385
CDL Hospitality Trusts		706,610		918
City Developments Ltd.		665,000		5,435
First Real Estate Investment Trust		543,510		483
Fortune Real Estate Investment Trust		1,464,920		1,144
Global Logistic Properties Ltd.		3,372,793		7,776
Keppel Land Ltd.		868,027		2,452
Keppel REIT		1,638,720		1,607
Mapletree Commercial Trust		1,437,000		1,392

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Singapore – 3.9% – continued
Mapletree Greater China Commercial Trust *		2,036,000		$1,453
Mapletree Industrial Trust		1,299,948		1,400
Mapletree Logistics Trust		1,608,374		1,372
Suntec Real Estate Investment Trust		2,309,291		3,011
UOL Group Ltd.		606,000		2,971
Wing Tai Holdings Ltd.		500,355		818
Yanlord Land Group Ltd.		744,000		727
				53,875
South Africa – 1.2%
Acucap Properties Ltd.		177,775		793
Arrowhead Properties Ltd., Class A *		236,578		163
Arrowhead Properties Ltd., Class B *		225,053		149
Capital Property Fund		1,499,727		1,587
Emira Property Fund		479,012		703
Fountainhead Property Trust		742,455		581
Growthpoint Properties Ltd.		1,968,168		4,830
Hyprop Investments Ltd.		234,992		1,718
Redefine Properties Ltd. *		3,236,048		3,142
Resilient Property Income Fund Ltd. *		257,261		1,378
SA Corporate Real Estate Fund Nominees Pty Ltd.		2,026,138		807
Vukile Property Fund Ltd.		471,855		786
				16,637
Sweden – 0.8%
Castellum AB		184,625		2,634
Fabege AB		146,122		1,615
Fastighets AB Balder, Class B *		100,492		821
Hufvudstaden AB, Class A		125,061		1,593
Klovern AB		96,310		420
Kungsleden AB		153,585		1,026
Wallenstam AB, Class B		112,533		1,542
Wihlborgs Fastigheter AB		74,402		1,195
				10,846
Switzerland – 0.8%
Allreal Holding A.G. (Registered) *		10,853		1,508
Mobimo Holding A.G. (Registered) *		6,969		1,456
PSP Swiss Property A.G. (Registered) *		44,902		3,895
Swiss Prime Site A.G. (Registered) *		62,032		4,802
				11,661
Taiwan – 0.0%
Hung Poo Real Estate Development Corp.		234,585		239

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
Thailand – 0.5%
Amata Corp. PCL (Registered)		141,686		$79
Amata Corp. PCL NVDR		470,871		264
AP Thailand PCL (Registered)		401,278		74
AP Thailand PCL NVDR		584,304		111
Central Pattana PCL (Registered)		825,726		1,162
Central Pattana PCL NVDR		678,898		959
Land and Houses PCL (Registered)		2,094,184		724
Land and Houses PCL NVDR		1,251,800		432
LPN Development PCL (Registered)		8,475		6
LPN Development PCL NVDR		622,701		410
Property Perfect PCL (Registered)		2,765,102		89
Property Perfect PCL NVDR		3,538,995		115
Pruksa Real Estate PCL NVDR		771,100		483
Quality Houses PCL NVDR		4,303,500		439
Sansiri PCL NVDR		4,153,500		307
SC Asset Corp. PCL (Registered)		664,875		81
SC Asset Corp. PCL NVDR		907,988		111
Siam Future Development PCL NVDR		819,478		152
Supalai PCL (Registered)		224,356		113
Supalai PCL NVDR		473,700		240
Ticon Industrial Connection PCL NVDR		476,537		249
WHA Corp. PCL NVDR		274,200		361
				6,961
Turkey – 0.1%
Alarko Gayrimenkul Yatirim Ortakligi A.S.		6,784		65
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		723,131		977
Is Gayrimenkul Yatirim Ortakligi A.S.		339,697		224
Sinpas Gayrimenkul Yatirim Ortakligi A.S.		290,717		153
				1,419
United Arab Emirates – 0.6%
Aldar Properties PJSC		3,539,007		2,559
Emaar Properties PJSC		3,360,169		5,339
RAK Properties PJSC		1,111,030		218
				8,116
United Kingdom – 4.6%
Big Yellow Group PLC		144,589		1,030
British Land Co. PLC		1,123,824		10,522
Capital & Counties Properties PLC		738,106		4,003
Daejan Holdings PLC		5,268		334
Derwent London PLC		102,944		3,954
Development Securities PLC		135,497		433
Grainger PLC		462,896		1,311

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
United Kingdom – 4.6% – continued
Great Portland Estates PLC		387,030		$3,377
Hammerson PLC		796,491		6,460
Hansteen Holdings PLC		719,567		1,154
Helical Bar PLC		107,582		517
Intu Properties PLC		761,996		3,964
Land Securities Group PLC		868,772		12,926
Londonmetric Property PLC		657,771		1,278
Mucklow A & J Group PLC		50,162		368
Primary Health Properties PLC		105,727		562
Quintain Estates & Development PLC *		499,370		683
Safestore Holdings PLC		218,742		475
Schroder Real Estate Investment Trust Ltd.		374,854		282
Segro PLC		834,620		4,189
Shaftesbury PLC		281,392		2,689
St. Modwen Properties PLC		184,118		906
Unite Group PLC		198,666		1,270
Workspace Group PLC		117,045		860
				63,547
United States – 40.2%
Acadia Realty Trust		62,057		1,532
Agree Realty Corp.		14,593		440
Alexander’s, Inc.		2,357		674
Alexandria Real Estate Equities, Inc.		80,383		5,132
American Assets Trust, Inc.		39,516		1,206
American Campus Communities, Inc.		117,732		4,021
American Homes 4 Rent, Class A *		52,200		843
American Realty Capital Properties, Inc.		207,900		2,536
Apartment Investment & Management Co., Class A		163,871		4,579
Ashford Hospitality Trust, Inc.		71,551		883
Associated Estates Realty Corp.		56,581		844
AvalonBay Communities, Inc.		145,659		18,512
BioMed Realty Trust, Inc.		216,382		4,023
Boston Properties, Inc.		170,631		18,240
Brandywine Realty Trust		176,347		2,324
BRE Properties, Inc.		86,321		4,382
Brookfield Office Properties, Inc.		281,802		5,400
Camden Property Trust		95,477		5,866
Campus Crest Communities, Inc.		72,614		784
CapLease, Inc.		100,174		850
CBL & Associates Properties, Inc.		191,123		3,650
Cedar Realty Trust, Inc.		78,218		405
Chambers Street Properties		266,200		2,337
Chesapeake Lodging Trust		54,831		1,291

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
United States – 40.2% – continued
Cole Real Estate Investment, Inc.		528,300		$6,477
Colonial Properties Trust		90,201		2,029
CommonWealth REIT		133,152		2,917
CommonWealth REIT - (Fractional Shares) (1)*		75,000		–
Corporate Office Properties Trust		92,373		2,134
Cousins Properties, Inc.		199,045		2,048
CubeSmart		151,972		2,711
DCT Industrial Trust, Inc.		355,564		2,557
DDR Corp.		284,383		4,468
DiamondRock Hospitality Co.		219,442		2,341
Digital Realty Trust, Inc.		144,455		7,671
Douglas Emmett, Inc.		149,222		3,502
Duke Realty Corp.		365,670		5,646
DuPont Fabros Technology, Inc.		72,729		1,874
EastGroup Properties, Inc.		34,097		2,019
Education Realty Trust, Inc.		129,038		1,174
EPR Properties		52,949		2,581
Equity Lifestyle Properties, Inc.		84,602		2,891
Equity One, Inc.		66,755		1,459
Equity Residential		401,171		21,491
Essex Property Trust, Inc.		42,818		6,324
Excel Trust, Inc.		49,711		597
Extra Space Storage, Inc.		117,455		5,374
Federal Realty Investment Trust		73,959		7,503
FelCor Lodging Trust, Inc. *		138,104		851
First Industrial Realty Trust, Inc.		123,692		2,012
First Potomac Realty Trust		65,170		819
Forest City Enterprises, Inc., Class A *		164,218		3,110
Franklin Street Properties Corp.		99,318		1,265
General Growth Properties, Inc.		620,286		11,965
Getty Realty Corp.		28,089		546
Glimcher Realty Trust		163,081		1,590
Government Properties Income Trust		61,543		1,473
HCP, Inc.		509,633		20,869
Health Care REIT, Inc.		320,134		19,970
Healthcare Realty Trust, Inc.		108,702		2,512
Hersha Hospitality Trust		193,669		1,083
Highwoods Properties, Inc.		101,106		3,570
Home Properties, Inc.		64,013		3,697
Hospitality Properties Trust		157,299		4,452
Host Hotels & Resorts, Inc.		838,263		14,812
Hudson Pacific Properties, Inc.		47,657		927
Inland Real Estate Corp.		96,339		986
Investors Real Estate Trust		114,478		944

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
United States – 40.2% – continued
Kilroy Realty Corp.		84,917		$4,242
Kimco Realty Corp.		456,738		9,217
Kite Realty Group Trust		103,977		617
LaSalle Hotel Properties		107,438		3,064
Lexington Realty Trust		243,415		2,734
Liberty Property Trust		160,736		5,722
LTC Properties, Inc.		39,087		1,485
Macerich (The) Co.		158,157		8,926
Mack-Cali Realty Corp.		98,733		2,166
Medical Properties Trust, Inc.		181,678		2,211
Mid-America Apartment Communities, Inc.		48,118		3,007
National Health Investors, Inc.		27,534		1,566
National Retail Properties, Inc.		136,281		4,336
Omega Healthcare Investors, Inc.		130,660		3,903
Parkway Properties, Inc.		48,703		865
Pebblebrook Hotel Trust		69,108		1,984
Pennsylvania Real Estate Investment Trust		73,488		1,374
Piedmont Office Realty Trust, Inc., Class A		187,453		3,254
Post Properties, Inc.		61,069		2,749
Prologis, Inc.		560,765		21,096
PS Business Parks, Inc.		20,422		1,524
Public Storage		160,900		25,833
Ramco-Gershenson Properties Trust		66,779		1,029
Realty Income Corp.		220,760		8,775
Regency Centers Corp.		103,076		4,984
Retail Opportunity Investments Corp.		82,203		1,136
RLJ Lodging Trust		138,263		3,248
Rouse Properties, Inc.		26,640		548
Sabra Health Care REIT, Inc.		41,900		964
Saul Centers, Inc.		14,405		666
Select Income REIT		31,400		810
Senior Housing Properties Trust		211,593		4,939
Silver Bay Realty Trust Corp.		41,970		657
Simon Property Group, Inc.		345,605		51,229
SL Green Realty Corp.		103,107		9,159
Sovran Self Storage, Inc.		35,381		2,678
Spirit Realty Capital, Inc.		399,820		3,670
STAG Industrial, Inc.		47,500		956
Strategic Hotels & Resorts, Inc. *		188,510		1,636
Sun Communities, Inc.		38,733		1,651
Sunstone Hotel Investors, Inc.		183,171		2,334
Tanger Factory Outlet Centers		105,705		3,451
Taubman Centers, Inc.		71,656		4,823
TravelCenters of America LLC - (Fractional Shares) (1)*		50,000		–

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.2% – continued
United States – 40.2% – continued
UDR, Inc.		281,553		$6,673
Universal Health Realty Income Trust		13,918		583
Urstadt Biddle Properties, Inc., Class A		26,939		535
Ventas, Inc.		331,131		20,366
Vornado Realty Trust		188,537		15,848
Washington Real Estate Investment Trust		74,220		1,876
Weingarten Realty Investors		122,365		3,589
Winthrop Realty Trust		34,852		389
WP Carey, Inc.		65,206		4,219
				561,291
Total Common Stocks (2)
(Cost $1,137,336)				1,341,738
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CONVERTIBLE BONDS – 0.0%
YTL Land & Development Bhd., 3.00%, 10/31/21		$114		$16
Total Convertible Bonds (2)
(Cost $18)				16
	NUMBER OF SHARES		VALUE (000s)
RIGHTS – 0.0%
United Kingdom – 0.0%
Medicx Fund Ltd.*		53,212		$4
Total Rights (2)
(Cost $–)				4
INVESTMENT COMPANIES – 1.1%
CPN Retail Growth Leasehold Property Fund		1,341,400		687
F&C Commercial Property Trust Ltd.		562,403		1,047
F&C UK Real Estate Investment Ltd.		239,936		293
Medicx Fund Ltd.		319,272		414
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (3)(4)		12,565,406		12,565
Picton Property Income Ltd.		408,614		339
Standard Life Investment Property Income Trust PLC		171,335		190

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 1.1% – continued
UK Commercial Property Trust Ltd.		472,315		$574
Total Investment Companies (2)
(Cost $15,999)				16,109
Total Investments – 97.3%
(Cost $1,153,353)				1,357,867
Other Assets less Liabilities – 2.7%				37,020
NET ASSETS – 100.0%				$1,394,887

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

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

(3) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $19,343,000 with net sales of approximately $6,778,000 during the six months ended September 30, 2013.

(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.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2013, 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)		178		$22,083		Long		12/13		$41
Euro Stoxx 50 (Euro)		102		3,973		Long		12/13		(44)
Hang Seng Index (Hong Kong Dollar)		61		8,999		Long		10/13		(153)
Nikkei 225 (Japanese Yen)		66		4,876		Long		12/13		(52)
SPI 200 Index (Australian Dollar)		74		9,014		Long		12/13		(69)
TOPIX Index (Japanese Yen)		9		1,096		Long		12/13		(9)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000s)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000s)
Yen Denominated Nikkei 225 (Japanese Yen)		7		$518		Long		12/13		$10
Total										$(276)

At September 30, 2013, the Global Real Estate Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		42.1%
Japanese Yen		13.5
Honk Kong Dollar		11.1
Australian Dollar		6.3
Euro		6.1
All other currencies less than 5%		20.9
Total		100.0%

At September 30, 2013, 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		12.9
Office REITs		9.8
Real Estate Development		6.4
Real Estate Operating Companies		8.6
Residential REITs		7.8
Retail REITs		21.0
Specialized REITs		12.1
Other Industries less than 5%		5.6
Total		100.0%

At September 30, 2013, the Global Real Estate Index Fund had outstanding forward 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		1,597	United States Dollar		1,500		12/18/13		$18
Australian Dollar		323	United States Dollar		297		12/18/13		(3)
British Pound		718	United States Dollar		1,150		12/18/13		(11)
Canadian Dollar		926	United States Dollar		900		12/18/13		3
Euro		1,035	United States Dollar		1,400		12/18/13		– *
Japanese Yen		281,428	United States Dollar		2,850		12/18/13		(15)

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000s)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000s)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000s)
Japanese Yen		313,053	United States Dollar		3,150		12/18/13		$(37)
Singapore Dollar		1,122	United States Dollar		900		12/18/13		6
Swiss Franc		182	United States Dollar		200		12/18/13		(1)
United States Dollar		2,100	Australian Dollar		2,257		12/18/13		(6)
United States Dollar		750	British Pound		472		12/18/13		14
United States Dollar		122	British Pound		77		12/18/13		2
United States Dollar		280	Canadian Dollar		290		12/18/13		1
United States Dollar		600	Canadian Dollar		619		12/18/13		(1)
United States Dollar		1,100	Euro		823		12/18/13		14
United States Dollar		286	Euro		214		12/18/13		4
United States Dollar		900	Hong Kong Dollar		6,977		12/18/13		–  *
United States Dollar		2,700	Japanese Yen		267,904		12/18/13		27
United States Dollar		890	Japanese Yen		87,847		12/18/13		4
United States Dollar		900	Singapore Dollar		1,133		12/18/13		4
United States Dollar		30	Singapore Dollar		38		12/18/13		–  *
United States Dollar		10	Swedish Krona		66		12/18/13		–  *
United States Dollar		90	Swiss Franc		84		12/18/13		2
Total									$25

* Amount rounds to less than one thousand.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

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

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

Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$11,220			$ –			$163		$11,383
Financials		567,698			761,622			225		1,329,545
Health Care		–			623			–		623
Industrials		–			187			–		187
Convertible Preferred Stocks
Financials		–			16			–		16
Rights
Financials		–			4			–		4
Investment Companies		12,565			3,544			–		16,109
Total Investments		$591,483			$765,996			$388		$1,357,867
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$51			$ –			$ –		$51
Forward Foreign Currency Exchange Contracts		–			99			–		99
Liabilities
Futures Contracts		(327	)		–			–		(327	)
Forward Foreign Currency Exchange Contracts		–			(74	)		–		(74	)
Total Other Financial Instruments		$	(276)		$25			$ –		$(251	)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Financials		$238,345	Valuations at last trade with foreign fair value adjustments
Health Care		623	Valuations at last trade with foreign fair value adjustments
Industrials		188	Valuations at last trade with foreign fair value adjustments
Investment Companies		687	Valuations at last trade with foreign fair value adjustments
Total		$239,843

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 3/31/13 (000s)		TRANSFERS INTO LEVEL 3 (000s) (1)(2)		BALANCE AS OF 9/30/13 (000s)
Common Stock
Consumer Discretionary		$–		$163		$163
Financials		–		225		225
Total		$–		$388		$388

(1) The value of transfers into Level 3 are measured using the fair value as of the end of the period ended, September 30, 2013.

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

The Fund valued certain securities using prices provided by NTGI PVC. The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held September 30, 2013 was $(408), which is included in the Statement of Operations as part of the net change in unrealized appreciation (depreciation) on investments.

	FAIR VALUE AT 9/30/13 (000s)		VALUATION TECHNIQUES	UNOBSERVABLE INPUTS
Common Stock		$225	Market transaction and analysis	Discovery price set at halt
Common Stock		$70	Market transaction and analysis	Discovery price set at halt
Common Stock		$93	Market transaction and analysis	Discovery price set at halt

The significant unobservable input used in the fair value measurement of the common stock was market transaction and analysis. Significant increases (decreases) in discovery prices would result in a significantly higher (lower) fair value measurement.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3%
Australia – 4.3%
AGL Energy Ltd.		5,480		$79
Alumina Ltd. *		22,915		22
Amcor Ltd.		12,783		125
AMP Ltd.		30,368		131
APA Group		8,136		45
Asciano Ltd.		9,619		52
Australia & New Zealand Banking Group Ltd.		28,056		806
Bendigo and Adelaide Bank Ltd.		3,845		36
Boral Ltd.		7,360		33
Brambles Ltd.		16,413		140
Caltex Australia Ltd.		1,329		23
CFS Retail Property Trust Group		21,038		39
Coca-Cola Amatil Ltd.		5,720		65
Commonwealth Bank of Australia		16,475		1,095
Dexus Property Group		47,668		45
Fortescue Metals Group Ltd.		15,316		68
Goodman Group		17,258		79
GPT Group		17,415		57
Insurance Australia Group Ltd.		22,471		123
Lend Lease Group		5,456		52
Metcash Ltd.		8,148		24
Mirvac Group		39,086		64
National Australia Bank Ltd.		23,943		767
Newcrest Mining Ltd.		7,520		82
Orica Ltd.		3,671		69
Origin Energy Ltd.		11,580		152
QBE Insurance Group Ltd.		12,096		166
Ramsay Health Care Ltd.		1,296		44
Sonic Healthcare Ltd.		3,639		55
SP AusNet *		14,728		17
Stockland		26,403		95
Sydney Airport		1,249		5
Toll Holdings Ltd.		6,487		35
Transurban Group		13,870		88
Wesfarmers Ltd. *		10,375		398
Westpac Banking Corp.		31,721		969
Woodside Petroleum Ltd.		6,687		239
WorleyParsons Ltd.		2,032		46
				6,430
Austria – 0.1%
OMV A.G.		1,482		73
Verbund A.G.		553		13
				86

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Belgium – 0.2%
Colruyt S.A.		727		$40
Delhaize Group S.A.		1,034		65
KBC Groep N.V.		2,245		110
Umicore S.A.		1,119		55
				270
Canada – 4.2%
Agnico Eagle Mines Ltd.		1,755		46
Agrium, Inc.		1,490		125
AltaGas Ltd.		1,100		39
ARC Resources Ltd.		3,066		78
Atco Ltd., Class I		800		35
Bank of Nova Scotia		12,318		706
Canadian National Railway Co.		4,348		441
Canadian Tire Corp. Ltd., Class A		829		73
Canadian Utilities Ltd., Class A		1,192		41
Cenovus Energy, Inc.		7,732		231
CGI Group, Inc., Class A *		2,000		70
Crescent Point Energy Corp.		3,866		146
Empire Co. Ltd., Class A		300		22
Enbridge, Inc.		8,215		343
Encana Corp.		7,500		130
Enerplus Corp.		1,852		31
Gildan Activewear, Inc.		1,113		52
Keyera Corp.		800		45
Kinross Gold Corp.		11,343		57
Loblaw Cos. Ltd.		1,072		47
MEG Energy Corp. *		1,400		48
Metro, Inc.		974		61
Open Text Corp.		600		45
Pengrowth Energy Corp.		5,110		30
Penn West Petroleum Ltd.		4,651		52
Potash Corp. of Saskatchewan, Inc.		8,695		272
Rogers Communications, Inc., Class B		3,705		159
Royal Bank of Canada		14,807		949
Shaw Communications, Inc., Class B		3,700		86
Shoppers Drug Mart Corp.		2,000		115
Silver Wheaton Corp.		3,500		87
Suncor Energy, Inc.		15,347		549
Teck Resources Ltd., Class B		6,044		162
TELUS Corp. *		2,400		80
Tim Hortons, Inc.		1,500		87
Toronto-Dominion Bank (The)		9,445		850
TransAlta Corp.		2,643		34
				6,424

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Denmark – 0.5%
Novo Nordisk A/S, Class B		4,058		$688
Novozymes A/S, Class B		2,345		90
Tryg A/S		267		24
				802
Finland – 0.2%
Kesko OYJ, Class B		585		18
Metso OYJ		1,212		48
Neste Oil OYJ		1,226		27
Orion OYJ, Class B		959		24
Stora Enso OYJ (Registered)		5,704		48
UPM-Kymmene OYJ		5,146		71
				236
France – 3.3%
Accor S.A.		1,729		72
Aeroports de Paris		296		31
Air Liquide S.A.		3,156		440
AtoS		557		44
AXA S.A.		18,050		419
Bouygues S.A.		1,944		71
Bureau Veritas S.A.		2,152		68
Cap Gemini S.A.		1,417		84
Carrefour S.A.		6,092		209
Casino Guichard Perrachon S.A.		556		57
CGG *		1,480		34
Christian Dior S.A.		556		109
Cie de St-Gobain		4,226		209
CNP Assurances		2,134		38
Danone S.A.		5,876		442
Eurazeo		312		20
Gecina S.A.		210		27
ICADE		413		38
Imerys S.A.		353		25
JCDecaux S.A.		637		24
Kering		764		171
Lafarge S.A.		1,957		136
Lagardere S.C.A.		1,098		36
Legrand S.A.		2,866		159
L’Oreal S.A.		2,483		427
Natixis		9,088		44
Renault S.A.		1,933		154
Rexel S.A.		2,670		68
Schneider Electric S.A.		5,318		450
SES S.A.		2,979		85

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
France – 3.3% – continued
Societe BIC S.A.		277		$32
Suez Environnement Co.		2,686		44
Technip S.A.		999		117
Unibail-Rodamco S.E.		995		247
Vallourec S.A.		1,064		64
Vinci S.A.		4,736		275
				4,970
Germany – 3.2%
Adidas A.G.		2,105		229
Allianz S.E. (Registered)		4,681		736
BASF S.E.		9,399		902
Bayerische Motoren Werke A.G.		3,411		367
Beiersdorf A.G.		1,026		91
Deutsche Boerse A.G.		2,029		153
Deutsche Lufthansa A.G. (Registered) *		2,304		45
Deutsche Post A.G. (Registered)		9,204		306
Fraport A.G. Frankfurt Airport Services Worldwide		323		23
GEA Group A.G.		1,802		74
HeidelbergCement A.G.		1,410		109
Henkel A.G. & Co. KGaA		1,352		120
Hochtief A.G.		267		23
K+S A.G. (Registered)		1,742		45
Linde A.G.		1,874		371
Merck KGaA		692		108
Metro A.G.		1,339		53
Muenchener Rueckversicherungs A.G. (Registered)		1,812		354
ProSiebenSat.1 Media A.G. (Registered)		1,002		42
SAP A.G.		9,450		698
Suedzucker A.G.		801		24
				4,873
Hong Kong – 0.5%
Cathay Pacific Airways Ltd.		13,000		26
CLP Holdings Ltd.		17,599		143
Hang Seng Bank Ltd.		7,478		122
Hong Kong & China Gas Co. Ltd.		57,547		139
Hong Kong Exchanges and Clearing Ltd.		11,268		180
Li & Fung Ltd.		60,000		87
MTR Corp. Ltd.		14,791		59
Yue Yuen Industrial Holdings Ltd.		7,500		21
				777
Ireland – 0.4%
CRH PLC		7,517		181

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Ireland – 0.4% – continued
Eaton Corp. PLC		4,789		$330
Kerry Group PLC, Class A		1,547		94
				605
Israel – 0.0%
Delek Group Ltd.		44		14
Italy – 1.0%
Assicurazioni Generali S.p.A.		11,825		236
Atlantia S.p.A.		3,177		65
Enel Green Power S.p.A.		16,590		36
Eni S.p.A.		26,150		603
Exor S.p.A.		1,197		45
Intesa Sanpaolo S.p.A.		118,010		244
Pirelli & C. S.p.A.		2,308		30
Saipem S.p.A.		2,664		58
Snam S.p.A.		21,157		107
Tenaris S.A.		4,743		111
				1,535
Japan – 9.7%
Aeon Co. Ltd.		5,900		82
AEON Financial Service Co. Ltd.		690		22
Aeon Mall Co. Ltd.		1,180		35
Air Water, Inc.		2,000		30
Aisin Seiki Co. Ltd.		1,900		81
Ajinomoto Co., Inc.		6,000		79
Alfresa Holdings Corp.		400		21
Amada Co. Ltd.		4,000		36
ANA Holdings, Inc.		11,000		24
Asahi Glass Co. Ltd.		10,000		62
Asahi Kasei Corp.		14,000		106
Asics Corp.		1,500		26
Astellas Pharma, Inc.		4,400		225
Benesse Holdings, Inc.		700		25
Canon, Inc.		11,400		364
Casio Computer Co. Ltd.		2,300		21
Central Japan Railway Co.		1,500		193
Chiyoda Corp.		2,000		24
Chugai Pharmaceutical Co. Ltd.		2,110		43
Citizen Holdings Co. Ltd.		2,600		18
Dai Nippon Printing Co. Ltd.		6,000		64
Daicel Corp.		3,000		27
Daido Steel Co. Ltd.		3,000		18
Daikin Industries Ltd.		2,300		122
Dainippon Sumitomo Pharma Co. Ltd.		1,535		21

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Japan – 9.7% – continued
Daiwa House Industry Co. Ltd.		6,000		$113
Denso Corp.		5,100		239
Dentsu, Inc.		2,300		88
East Japan Railway Co.		3,400		293
Eisai Co. Ltd.		2,505		102
FamilyMart Co. Ltd.		600		26
Fast Retailing Co. Ltd.		500		189
Fuji Heavy Industries Ltd.		5,608		156
FUJIFILM Holdings Corp.		4,500		108
Fujitsu Ltd. *		18,000		67
Furukawa Electric Co. Ltd.		7,000		16
Hino Motors Ltd.		3,000		44
Hitachi Chemical Co. Ltd.		1,017		16
Hitachi Construction Machinery Co. Ltd.		1,000		22
Hitachi High-Technologies Corp.		543		12
Hitachi Metals Ltd.		2,000		25
Honda Motor Co. Ltd.		16,800		642
Ibiden Co. Ltd.		1,200		20
Inpex Corp.		9,200		109
Isetan Mitsukoshi Holdings Ltd.		3,300		49
Japan Steel Works (The) Ltd.		3,000		17
JFE Holdings, Inc.		5,200		136
JSR Corp.		1,800		34
JTEKT Corp.		2,200		30
Kajima Corp.		8,000		33
Kaneka Corp.		3,000		20
Kansai Paint Co. Ltd.		2,000		27
Kao Corp.		5,200		163
Kawasaki Heavy Industries Ltd.		14,000		61
KDDI Corp.		5,400		278
Keio Corp.		6,000		43
Keyence Corp.		500		190
Kikkoman Corp.		2,000		37
Kobe Steel Ltd. *		24,551		46
Komatsu Ltd.		9,700		242
Konica Minolta, Inc.		4,500		38
Kubota Corp.		11,000		160
Kuraray Co. Ltd.		3,300		40
Kurita Water Industries Ltd.		1,100		23
Kyocera Corp.		3,400		181
Kyowa Hakko Kirin Co. Ltd.		2,000		21
Lawson, Inc.		700		55
Makita Corp.		1,100		64
Marubeni Corp.		18,123		143

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Japan – 9.7% – continued
Marui Group Co. Ltd.		2,200		$21
Mazda Motor Corp. *		27,000		121
McDonald’s Holdings Co. Japan Ltd.		700		19
Miraca Holdings, Inc.		500		22
Mitsubishi Corp.		14,300		290
Mitsubishi Electric Corp.		20,000		211
Mitsubishi Motors Corp. *		4,191		47
Mitsubishi UFJ Lease & Finance Co. Ltd.		5,830		31
Mitsui Chemicals, Inc.		8,000		22
Mitsui Fudosan Co. Ltd.		9,000		304
Mitsui OSK Lines Ltd. *		11,000		50
Mizuho Financial Group, Inc.		235,973		514
Murata Manufacturing Co. Ltd.		2,015		154
Nabtesco Corp.		1,200		29
NGK Insulators Ltd.		3,000		46
NGK Spark Plug Co. Ltd.		2,000		44
Nikon Corp.		3,300		58
Nippon Meat Packers, Inc.		2,000		29
Nippon Steel & Sumitomo Metal Corp.		77,520		264
Nippon Telegraph & Telephone Corp.		4,500		234
Nippon Yusen K.K.		16,000		51
Nissan Motor Co. Ltd.		25,000		252
Nisshin Seifun Group, Inc.		2,200		22
Nissin Foods Holdings Co. Ltd.		600		25
Nitto Denko Corp.		1,700		111
NKSJ Holdings, Inc.		3,300		85
Nomura Research Institute Ltd.		1,066		37
NSK Ltd.		5,000		51
NTT Data Corp.		1,200		41
NTT DOCOMO, Inc.		15,400		250
Omron Corp.		2,000		72
Osaka Gas Co. Ltd.		18,000		77
Panasonic Corp.		22,200		215
Resona Holdings, Inc.		20,600		106
Rinnai Corp.		300		22
Santen Pharmaceutical Co. Ltd.		700		34
Secom Co. Ltd.		2,100		132
Sekisui Chemical Co. Ltd.		4,000		41
Sekisui House Ltd.		6,000		81
Seven & I Holdings Co. Ltd.		7,600		278
Sharp Corp. *		10,000		37
Shimadzu Corp.		2,000		19
Shimizu Corp.		6,000		29
Shin-Etsu Chemical Co. Ltd.		4,200		258

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Japan – 9.7% – continued
Showa Shell Sekiyu K.K.		1,900		$21
Softbank Corp.		9,700		674
Sony Corp.		10,200		219
Stanley Electric Co. Ltd.		1,333		28
Sumitomo Chemical Co. Ltd.		14,000		53
Sumitomo Electric Industries Ltd.		7,900		115
Sumitomo Heavy Industries Ltd.		5,000		23
Sumitomo Metal Mining Co. Ltd.		6,000		85
Sumitomo Mitsui Financial Group, Inc.		13,000		631
Sumitomo Rubber Industries Ltd.		1,700		26
Suruga Bank Ltd.		2,170		37
Suzuken Co. Ltd.		653		22
Suzuki Motor Corp.		3,671		88
Sysmex Corp.		771		49
T&D Holdings, Inc.		5,900		73
Taiyo Nippon Sanso Corp.		3,000		20
Takashimaya Co. Ltd.		3,000		28
Takeda Pharmaceutical Co. Ltd.		8,000		378
TDK Corp.		1,200		47
Teijin Ltd.		9,000		21
Toho Co. Ltd.		1,100		23
Toho Gas Co. Ltd.		4,000		21
Tokyo Electron Ltd.		1,700		91
Tokyo Gas Co. Ltd.		24,000		132
Tokyu Corp.		11,000		79
Toppan Printing Co. Ltd.		6,000		49
Toray Industries, Inc.		15,000		99
TOTO Ltd.		3,000		42
Toyo Seikan Group Holdings Ltd.		1,600		32
Toyo Suisan Kaisha Ltd.		1,000		29
Toyoda Gosei Co. Ltd.		700		17
Toyota Boshoku Corp.		500		7
Toyota Industries Corp.		1,600		69
Toyota Tsusho Corp.		2,100		55
Tsumura & Co.		700		21
USS Co. Ltd.		2,100		30
Yakult Honsha Co. Ltd.		900		45
Yamada Denki Co. Ltd.		8,660		26
Yamaha Corp.		1,500		22
Yamaha Motor Co. Ltd.		2,700		40
Yaskawa Electric Corp.		2,000		28
Yokogawa Electric Corp.		2,100		30
				14,648

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Netherlands – 2.2%
Aegon N.V.		17,779		$132
Akzo Nobel N.V.		2,392		157
ASML Holding N.V.		3,596		355
CNH Industrial N.V. *		8,385		107
Core Laboratories N.V.		500		85
Delta Lloyd N.V.		1,817		39
Fugro N.V. - CVA		764		47
ING Groep N.V. - CVA *		38,629		438
Koninklijke Ahold N.V.		10,490		182
Koninklijke DSM N.V.		1,535		116
Koninklijke KPN N.V. *		31,593		101
Koninklijke Philips N.V.		9,674		312
Koninklijke Vopak N.V.		657		38
LyondellBasell Industries N.V., Class A		4,345		318
Randstad Holding N.V.		1,197		67
Reed Elsevier N.V.		7,382		148
Unilever N.V. - CVA		16,754		652
Wolters Kluwer N.V.		2,964		76
				3,370
New Zealand – 0.1%
Auckland International Airport Ltd.		10,502		29
Contact Energy Ltd.		3,201		14
Fletcher Building Ltd.		6,855		54
				97
Norway – 0.3%
Aker Solutions ASA		1,622		23
DNB ASA		9,845		149
Norsk Hydro ASA		9,187		38
Orkla ASA		7,725		56
Statoil ASA		11,389		259
				525
Portugal – 0.1%
Banco Espirito Santo S.A. (Registered) *		17,501		19
EDP - Energias de Portugal S.A.		20,021		73
Galp Energia SGPS S.A.		4,099		68
Jeronimo Martins SGPS S.A.		2,443		50
				210
Singapore – 0.3%
Ascendas Real Estate Investment Trust		20,000		36
CapitaLand Ltd.		25,000		61
CapitaMall Trust		23,000		36
CapitaMalls Asia Ltd.		14,000		22
City Developments Ltd.		4,000		33

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Singapore – 0.3% – continued
Flextronics International Ltd. *		6,253		$57
Jardine Cycle & Carriage Ltd.		1,000		30
Keppel Land Ltd.		7,000		20
Singapore Airlines Ltd.		6,000		50
Singapore Press Holdings Ltd.		17,000		56
				401
Spain – 1.3%
Abertis Infraestructuras S.A.		4,052		79
Acciona S.A.		278		16
Amadeus IT Holding S.A., Class A		3,963		141
Banco Bilbao Vizcaya Argentaria S.A.		56,558		635
CaixaBank		11,503		51
Distribuidora Internacional de Alimentacion S.A.		6,015		52
Enagas S.A.		1,958		48
Ferrovial S.A.		4,029		73
Iberdrola S.A.		48,739		284
Inditex S.A.		2,190		338
Red Electrica Corp. S.A.		1,099		63
Repsol S.A.		8,672		216
				1,996
Sweden – 2.0%
Alfa Laval AB		3,021		73
Assa Abloy AB, Class B		3,411		157
Atlas Copco AB, Class A		6,869		201
Atlas Copco AB, Class B		3,820		101
Autoliv, Inc.		1,013		88
Boliden AB		2,549		38
Electrolux AB, Series B		2,420		63
Hennes & Mauritz AB, Class B		9,581		417
Industrivarden AB, Class C		1,183		22
Investment AB Kinnevik, Class B		2,441		85
Nordea Bank AB		29,419		355
Sandvik AB		10,989		152
Scania AB, Class B		3,069		66
Skandinaviska Enskilda Banken AB, Class A		16,045		170
Skanska AB, Class B		3,734		72
SKF AB, Class B		3,875		108
Svenska Cellulosa AB S.C.A., Class B		6,157		155
Swedbank AB, Class A		9,104		212
TeliaSonera AB		24,233		186
Volvo AB, Class B		16,099		241
				2,962

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
Switzerland – 3.7%
Actelion Ltd. (Registered) *		1,059		$75
Aryzta A.G. *		824		55
Coca-Cola HBC A.G. - CDI *		1,959		59
Geberit A.G. (Registered) *		388		105
Givaudan S.A. (Registered) *		88		129
Holcim Ltd. (Registered) *		2,346		175
Lindt & Spruengli A.G. (Registered)		1		47
Lindt & Spruengli A.G. (Participation Certificate)		8		33
Lonza Group A.G. (Registered) *		515		42
Noble Corp.		2,500		94
Novartis A.G. (Registered)		23,453		1,803
Pentair Ltd. (Registered)		2,079		135
Roche Holding A.G. (Genusschein)		7,166		1,933
SGS S.A. (Registered)		58		139
Sika A.G. (Bearer)		22		64
STMicroelectronics N.V. *		6,493		60
Sulzer A.G. (Registered)		237		37
Swiss Re A.G. *		3,571		295
Swisscom A.G. (Registered)		227		109
Wolseley PLC		2,894		150
				5,539
United Kingdom – 9.5%
3i Group PLC		9,530		56
Aberdeen Asset Management PLC		9,417		58
Aggreko PLC		2,704		70
AMEC PLC		2,899		50
Associated British Foods PLC		3,557		108
Aviva PLC		29,803		191
BG Group PLC		34,856		666
British Land Co. PLC		9,300		87
BT Group PLC		80,465		446
Bunzl PLC		3,655		79
Capita PLC		6,971		112
Centrica PLC		52,560		315
Delphi Automotive PLC		3,000		175
easyJet PLC		1,543		32
Fresnillo PLC		1,705		27
GKN PLC		16,046		89
GlaxoSmithKline PLC		50,281		1,264
Hammerson PLC		6,985		57
HSBC Holdings PLC		189,851		2,058
InterContinental Hotels Group PLC		2,631		77
Intertek Group PLC		1,574		84

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United Kingdom – 9.5% – continued
Intu Properties PLC		6,546		$34
Invensys PLC		6,296		51
Investec PLC		5,697		37
J Sainsbury PLC		13,050		83
Johnson Matthey PLC		2,189		100
Kingfisher PLC		24,835		155
Land Securities Group PLC		8,007		119
Legal & General Group PLC		60,560		193
Liberty Global PLC, Class A *		1,997		159
Liberty Global PLC, Series C *		1,620		122
London Stock Exchange Group PLC		1,727		43
Marks & Spencer Group PLC		16,816		135
Meggitt PLC		7,693		68
National Grid PLC		37,683		446
Next PLC		1,596		133
Old Mutual PLC		50,268		153
Pearson PLC		8,540		174
Petrofac Ltd.		2,551		58
Prudential PLC		26,303		490
Reckitt Benckiser Group PLC		6,597		483
Reed Elsevier PLC		12,388		167
Rexam PLC		7,706		60
RSA Insurance Group PLC		35,991		71
Schroders PLC		1,000		42
Segro PLC		7,168		36
Smiths Group PLC		3,858		87
SSE PLC		9,740		233
Standard Chartered PLC		24,780		594
Standard Life PLC		23,832		133
Subsea 7 S.A.		2,502		52
Tate & Lyle PLC		4,537		54
Tesco PLC		82,604		480
Travis Perkins PLC		2,402		64
Tullow Oil PLC		9,464		157
Unilever PLC		13,150		508
Vodafone Group PLC		496,077		1,749
Whitbread PLC		1,756		84
William Hill PLC		8,450		55
Willis Group Holdings PLC		1,600		69
WM Morrison Supermarkets PLC		23,136		105
WPP PLC		13,801		284
				14,421
United States – 50.2%
3M Co.		6,716		802

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
Abbott Laboratories		15,800		$524
Accenture PLC, Class A		6,700		493
ACE Ltd.		3,484		326
Adobe Systems, Inc. *		4,789		249
Advance Auto Parts, Inc.		700		58
Aetna, Inc.		3,963		254
Aflac, Inc.		4,745		294
Agilent Technologies, Inc.		3,460		177
Air Products & Chemicals, Inc.		2,122		226
Albemarle Corp.		900		57
Alcoa, Inc.		10,500		85
Alexion Pharmaceuticals, Inc. *		2,000		232
American Express Co.		10,116		764
American Tower Corp.		4,000		296
American Water Works Co., Inc.		1,900		78
AmerisourceBergen Corp.		2,300		141
AMETEK, Inc.		2,650		122
Amgen, Inc.		7,700		862
Analog Devices, Inc.		3,305		155
Annaly Capital Management, Inc.		10,000		116
Apache Corp.		3,999		340
Applied Materials, Inc.		12,191		214
Autodesk, Inc. *		2,200		91
AutoZone, Inc. *		353		149
AvalonBay Communities, Inc.		1,300		165
Avery Dennison Corp.		1,000		43
Avon Products, Inc.		4,600		95
Axis Capital Holdings Ltd.		1,100		48
Baker Hughes, Inc.		4,600		226
Ball Corp.		1,440		65
Bank of New York Mellon (The) Corp.		11,738		354
BB&T Corp.		7,240		244
Becton Dickinson and Co.		2,013		201
Bed Bath & Beyond, Inc. *		2,250		174
Berkshire Hathaway, Inc., Class B *		10,897		1,237
Best Buy Co., Inc.		2,725		102
Biogen Idec, Inc. *		2,430		585
BlackRock, Inc.		1,431		387
BorgWarner, Inc.		1,160		118
Boston Properties, Inc.		1,570		168
Bristol-Myers Squibb Co.		16,783		777
Bunge Ltd.		1,500		114
C.H. Robinson Worldwide, Inc.		1,570		93
CA, Inc.		3,100		92

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
Cablevision Systems Corp., Class A (New York Group)		1,991		$34
Calpine Corp. *		3,569		69
Cameron International Corp. *		2,500		146
Campbell Soup Co.		2,000		81
Capital One Financial Corp.		6,000		412
CarMax, Inc. *		2,300		111
CBRE Group, Inc., Class A *		2,723		63
Celanese Corp., Series A		1,600		84
CenterPoint Energy, Inc.		3,980		95
CenturyLink, Inc.		6,296		198
Cerner Corp. *		3,100		163
Charles Schwab (The) Corp.		11,613		245
Cheniere Energy, Inc. *		2,000		68
Chipotle Mexican Grill, Inc. *		294		126
Chubb (The) Corp.		2,632		235
Cigna Corp.		2,869		220
Cimarex Energy Co.		900		87
Cisco Systems, Inc.		54,456		1,275
CIT Group, Inc. *		1,900		93
Clorox (The) Co.		1,300		106
CME Group, Inc.		3,205		237
Coca-Cola Enterprises, Inc.		2,600		105
Cognizant Technology Solutions Corp., Class A *		3,030		249
Colgate-Palmolive Co.		9,528		565
Comerica, Inc.		2,000		79
ConAgra Foods, Inc.		4,400		133
Concho Resources, Inc. *		1,073		117
Consolidated Edison, Inc.		3,023		167
Continental Resources, Inc. *		457		49
Corning, Inc.		14,900		217
Crown Castle International Corp. *		2,957		216
CSX Corp.		10,280		265
Cummins, Inc.		1,859		247
Danaher Corp.		6,064		420
Darden Restaurants, Inc.		1,330		62
DaVita HealthCare Partners, Inc. *		1,800		102
Deere & Co.		3,754		306
Dell, Inc.		15,439		213
Denbury Resources, Inc. *		3,700		68
DENTSPLY International, Inc.		1,400		61
Devon Energy Corp.		3,905		226
Digital Realty Trust, Inc.		1,300		69
Discover Financial Services		4,990		252

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
Discovery Communications, Inc., Class A *		1,500		$127
Discovery Communications, Inc., Class C *		900		70
Dover Corp.		1,759		158
Dr Pepper Snapple Group, Inc.		1,989		89
Duke Energy Corp.		7,200		481
Duke Realty Corp.		3,200		49
Dun & Bradstreet (The) Corp.		423		44
Eastman Chemical Co.		1,600		125
Ecolab, Inc.		2,672		264
Edwards Lifesciences Corp. *		1,100		77
EMC Corp.		21,600		552
Emerson Electric Co.		7,255		469
Energen Corp.		700		53
Energizer Holdings, Inc.		600		55
EOG Resources, Inc.		2,789		472
EQT Corp.		1,505		134
Equifax, Inc.		1,200		72
Equity Residential		3,500		187
Estee Lauder (The) Cos., Inc., Class A		2,400		168
Expeditors International of Washington, Inc.		2,290		101
Fastenal Co.		2,828		142
Federal Realty Investment Trust		700		71
Fluor Corp.		1,700		121
FMC Technologies, Inc. *		2,400		133
Ford Motor Co.		37,700		636
Franklin Resources, Inc.		4,224		213
Frontier Communications Corp.		10,200		43
GameStop Corp., Class A		1,200		60
Gap (The), Inc.		3,075		124
General Mills, Inc.		6,560		314
Genuine Parts Co.		1,620		131
Gilead Sciences, Inc. *		15,524		976
Google, Inc., Class A *		2,765		2,422
Green Mountain Coffee Roasters, Inc. *		1,321		99
Harley-Davidson, Inc.		2,255		145
Hartford Financial Services Group, Inc.		4,500		140
Hasbro, Inc.		1,100		52
HCP, Inc.		4,600		188
Health Care REIT, Inc.		2,800		175
Henry Schein, Inc. *		933		97
Herbalife Ltd.		900		63
Hertz Global Holdings, Inc. *		3,900		86
Hess Corp.		3,246		251
Hewlett-Packard Co.		19,583		411

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
Hologic, Inc. *		2,600		$54
Hormel Foods Corp.		1,400		59
Host Hotels & Resorts, Inc.		7,429		131
Humana, Inc.		1,647		154
IHS, Inc., Class A *		625		71
Illinois Tool Works, Inc.		4,321		330
Ingersoll-Rand PLC		3,180		206
Integrys Energy Group, Inc.		800		45
Intel Corp.		50,695		1,162
IntercontinentalExchange, Inc. *		780		141
International Business Machines Corp.		10,761		1,993
International Flavors & Fragrances, Inc.		800		66
International Paper Co.		4,322		194
Intuit, Inc.		2,900		192
Invesco Ltd.		4,500		144
Iron Mountain, Inc.		1,406		38
Jacobs Engineering Group, Inc. *		1,300		76
JB Hunt Transport Services, Inc.		900		66
JM Smucker (The) Co.		1,100		116
Johnson & Johnson		28,601		2,479
Johnson Controls, Inc.		6,921		287
Joy Global, Inc.		1,034		53
Kellogg Co.		2,600		153
KeyCorp		10,019		114
Kimberly-Clark Corp.		3,935		371
Kinder Morgan Management LLC *		1,058		79
Kohl’s Corp.		2,200		114
Kraft Foods Group, Inc.		6,100		320
Kroger (The) Co.		5,000		202
Laboratory Corp. of America Holdings *		1,000		99
Lam Research Corp. *		1,600		82
Legg Mason, Inc.		1,200		40
Level 3 Communications, Inc. *		1,700		45
Liberty Interactive Corp., Class A *		5,000		117
Liberty Media Corp., Class A *		1,000		147
Liberty Property Trust		1,600		57
Life Technologies Corp. *		1,700		127
LKQ Corp. *		2,900		92
Lowe’s Cos., Inc.		11,000		524
M&T Bank Corp.		1,241		139
Macerich (The) Co.		1,400		79
Macy’s, Inc.		3,900		169
Manpowergroup, Inc.		800		58
Marathon Oil Corp.		7,100		248

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
Marathon Petroleum Corp.		3,300		$212
Marriott International, Inc., Class A		2,616		110
Marsh & McLennan Cos., Inc.		5,500		240
Masco Corp.		3,640		77
Mattel, Inc.		3,548		148
McCormick & Co., Inc. (Non Voting)		1,200		78
McDonald’s Corp.		10,202		982
MDU Resources Group, Inc.		1,800		50
Mead Johnson Nutrition Co.		2,034		151
MeadWestvaco Corp.		1,738		67
Medtronic, Inc.		10,375		552
Merck & Co., Inc.		30,700		1,462
MGM Resorts International *		3,800		78
Microchip Technology, Inc.		2,200		89
Mohawk Industries, Inc. *		665		87
Mondelez International, Inc., Class A		17,363		546
Mosaic (The) Co.		3,000		129
Motorola Solutions, Inc.		2,508		149
NASDAQ OMX Group (The), Inc.		1,100		35
National Oilwell Varco, Inc.		4,312		337
Netflix, Inc. *		500		155
New York Community Bancorp, Inc.		4,300		65
Newell Rubbermaid, Inc.		2,815		77
NextEra Energy, Inc.		4,282		343
NIKE, Inc., Class B		7,360		535
NiSource, Inc.		3,200		99
Noble Energy, Inc.		3,600		241
Nordstrom, Inc.		1,557		87
Norfolk Southern Corp.		3,207		248
Northeast Utilities		3,111		128
Northern Trust Corp. (1)(2)		2,000		109
Nucor Corp.		3,474		170
NYSE Euronext		2,442		102
Occidental Petroleum Corp.		8,200		767
Oceaneering International, Inc.		1,100		89
ONEOK, Inc.		2,100		112
Oracle Corp.		38,400		1,274
O’Reilly Automotive, Inc. *		1,100		140
Owens-Illinois, Inc. *		1,579		47
PACCAR, Inc.		3,575		199
Pall Corp.		1,100		85
Parker Hannifin Corp.		1,490		162
PartnerRe Ltd.		500		46
Patterson Cos., Inc.		881		35

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
People’s United Financial, Inc.		3,347		$48
Pepco Holdings, Inc.		2,900		54
PepsiCo, Inc.		15,728		1,250
PetSmart, Inc.		1,000		76
PG&E Corp.		4,535		186
Phillips 66		6,000		347
Pinnacle West Capital Corp.		1,100		60
Pioneer Natural Resources Co.		1,400		264
Plum Creek Timber Co., Inc.		1,600		75
PNC Financial Services Group (The), Inc.		5,429		393
Polaris Industries, Inc.		700		90
Praxair, Inc.		3,044		366
Precision Castparts Corp.		1,500		341
Principal Financial Group, Inc.		2,902		124
Procter & Gamble (The) Co.		27,868		2,107
Progressive (The) Corp.		5,771		157
Prologis, Inc.		4,995		188
Prudential Financial, Inc.		4,672		364
Public Service Enterprise Group, Inc.		5,200		171
PVH Corp.		800		95
QEP Resources, Inc.		1,849		51
QUALCOMM, Inc.		17,600		1,186
Quanta Services, Inc. *		2,100		58
Range Resources Corp.		1,700		129
RenaissanceRe Holdings Ltd.		418		38
Robert Half International, Inc.		1,400		55
Rock Tenn Co., Class A		754		76
Rockwell Automation, Inc.		1,467		157
Rockwell Collins, Inc.		1,332		90
Roper Industries, Inc.		989		131
Ross Stores, Inc.		2,202		160
Royal Caribbean Cruises Ltd.		1,500		57
Safeway, Inc.		2,500		80
Salesforce.com, Inc. *		5,700		296
SBA Communications Corp., Class A *		1,300		105
Scripps Networks Interactive, Inc., Class A		900		70
Sealed Air Corp.		1,900		52
Sempra Energy		2,327		199
Sherwin-Williams (The) Co.		900		164
Sigma-Aldrich Corp.		1,200		102
Simon Property Group, Inc.		3,141		466
Southwestern Energy Co. *		3,600		131
Spectra Energy Corp.		6,900		236
Sprint Corp. *		9,692		60

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
Staples, Inc.		6,655		$97
Starbucks Corp.		7,712		594
Starwood Hotels & Resorts Worldwide, Inc.		1,980		132
State Street Corp.		4,626		304
Superior Energy Services, Inc. *		1,578		39
Symantec Corp.		7,000		173
Sysco Corp.		6,117		195
T Rowe Price Group, Inc.		2,629		189
Target Corp.		6,171		395
TD Ameritrade Holding Corp.		2,200		58
Teradata Corp. *		1,700		94
Tesla Motors, Inc. *		800		155
Tesoro Corp.		1,400		62
Texas Instruments, Inc.		11,372		458
Thermo Fisher Scientific, Inc.		3,600		332
Tiffany & Co.		1,267		97
Time Warner Cable, Inc.		3,000		335
Time Warner, Inc.		9,400		619
TJX Cos., Inc.		7,336		414
Tractor Supply Co.		1,400		94
Travelers (The) Cos., Inc.		3,797		322
TripAdvisor, Inc. *		1,200		91
Tyco International Ltd.		4,800		168
UDR, Inc.		2,500		59
Ulta Salon Cosmetics & Fragrance, Inc. *		600		72
Under Armour, Inc., Class A *		800		64
Union Pacific Corp.		4,800		746
United Parcel Service, Inc., Class B		7,341		671
US Bancorp		18,805		688
Valeant Pharmaceuticals International, Inc. *		3,200		334
Varian Medical Systems, Inc. *		1,100		82
Ventas, Inc.		3,000		184
Vertex Pharmaceuticals, Inc. *		2,200		167
VF Corp.		911		181
Vornado Realty Trust		1,736		146
Waste Management, Inc.		4,500		186
Waters Corp. *		900		96
Weatherford International Ltd.*		7,600		116
Weyerhaeuser Co.		5,900		169
Whirlpool Corp.		860		126
Whiting Petroleum Corp. *		1,142		68
Whole Foods Market, Inc.		3,600		211
Williams (The) Cos., Inc.		6,900		251

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.3% – continued
United States – 50.2% – continued
Windstream Holdings, Inc.		5,990		$48
Wisconsin Energy Corp.		2,400		97
WW Grainger, Inc.		611		160
Xcel Energy, Inc.		5,300		146
Xerox Corp.		12,431		128
Xylem, Inc.		1,800		50
Yahoo!, Inc. *		9,800		325
				75,789
Total Common Stocks (3)
(Cost $110,975)				146,980
PREFERRED STOCKS – 0.4%
Germany – 0.4%
Bayerische Motoren Werke A.G.		532		44
Henkel A.G. & Co. KGaA		1,799		185
Volkswagen A.G.		1,497		353
				582
Total Preferred Stocks (3)
(Cost $446)				582
RIGHTS – 0.0%
Spain – 0.0%
Abertis Infraestructuras S.A. *		3,690		4
Banco Bilbao Vizcaya Argentaria S.A. *		55,544		7
				11
Total Rights (3)
(Cost $10)				11
INVESTMENT COMPANIES – 1.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (4)(5)		2,734,959		2,735
Total Investment Companies
(Cost $2,735)				2,735
Total Investments – 99.5%
(Cost $114,166)				150,308
Other Assets less Liabilities – 0.5%				744
NET ASSETS – 100.0%				$151,052

(1) At March 31, 2013, the value of the Fund’s investment in Northern Trust Corp. was approximately $109,000. There were no purchases and sales during the six months ended September 30, 2013. The change in net unrealized depreciation during the six months ended September 30, 2013, was less than $1,000.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

(2) Investment in affiliate.

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

(4) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $2,326,000 with net purchase of approximately $409,000 during the six months ended September 30, 2013.

(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 September 30, 2013, 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)		24		$2,009		Long		12/13		$1
Euro Stoxx 50 (Euro)		14		545		Long		12/13		8
FTSE 100 Index (British Pound)		3		312		Long		12/13		(5)
S&P/TSX 60 Index (Canadian Dollar)		1		142		Long		12/13		(1)
SPI 200 Index (Australian Dollar)		1		122		Long		12/13		(1)
Yen Denominated Nikkei 225 (Japanese Yen)		5		370		Long		12/13		7
Total										$9

At September 30, 2013, the Global Sustainability Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		52.2%
Euro		12.3
Japanese Yen		9.9
British Pound		9.5
All other currencies less than 5%		16.1
Total		100.0%

At September 30, 2013, the industry sectors for the Global Sustainability Index Fund were:

INUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		12.5%
Consumer Staples		9.8
Energy		7.6
Financials		21.6
Health Care		12.5
Industrials		11.6
Information Technology		11.7
Materials		5.9
Telecommunication Services		3.4
Utilities		3.4
Total		100.0%

At September 30, 2013, the Global Sustainability Index Fund had outstanding forward 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		22		United States Dollar		20		12/18/13		$– *
British Pound		19		United States Dollar		30		12/18/13		(1)
United States Dollar		50		Canadian Dollar		52		12/18/13		– *
United States Dollar		120		Euro		90		12/18/13		3
United States Dollar		60		Japanese Yen		5,922		12/18/13		– *
United States Dollar		20		Swedish Krona		131		12/18/13		– *
Total										$2

* Amount rounds to less than one thousand.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

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

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

Level 2 – Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2013 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$10,685			$7,305			$–		$17,990
Consumer Staples		7,824			6,405			–		14,229
Energy		6,218			4,985			–		11,203
Financials		13,444			18,427			–		31,871
Health Care		11,088			7,418			–		18,506
Industrials		8,394			8,790			–		17,184
Information Technology		14,290			3,016			–		17,306
Materials		2,972			5,705			–		8,677
Telecommunication Services		953			4,027			–		4,980
Utilities		2,581			2,453			–		5,034
Preferred Stocks
Consumer Discretionary		–			396			–		396
Consumer Staples		–			186			–		186
Rights
Financials		–			7			–		7
Industrials		–			4			–		4
Investment Companies		2,735			–			–		2,735
Total Investments		$81,184			$69,124			$–		$150,308
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$16			$–			$–		$16
Forward Foreign Currency Exchange Contracts		–			3			–		3
Liabilities
Futures Contracts		(7	)		–			–		(7	)
Forward Foreign Currency Exchange Contracts		–			(1	)		–		(1	)
Total Other Financial Instruments		$9			$2			$–		$11

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Consumer Discretionary		$3,048	Valuations at last trade with foreign fair value adjustments
Consumer Staples		970	Valuations at last trade with foreign fair value adjustments
Energy		1,559	Valuations at last trade with foreign fair value adjustments
Financials		4,370	Valuations at last trade with foreign fair value adjustments
Health Care		1,249	Valuations at last trade with foreign fair value adjustments
Industrials		3,026	Valuations at last trade with foreign fair value adjustments
Information Technology		1,288	Valuations at last trade with foreign fair value adjustments
Materials		2,102	Valuations at last trade with foreign fair value adjustments
Telecommunication Services		1,362	Valuations at last trade with foreign fair value adjustments
Utilities		305	Valuations at last trade with foreign fair value adjustments
Total		$19,279

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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0%
Australia – 7.8%
AGL Energy Ltd.		145,646		$2,096
ALS Ltd.		104,792		1,027
Alumina Ltd. *		626,555		602
Amcor Ltd.		320,703		3,138
AMP Ltd.		799,251		3,438
APA Group		214,738		1,196
Asciano Ltd.		267,109		1,453
ASX Ltd.		53,174		1,714
Aurizon Holdings Ltd.		538,648		2,353
Australia & New Zealand Banking Group Ltd.		735,247		21,129
Bendigo and Adelaide Bank Ltd.		107,819		1,008
BGP Holdings PLC - (Fractional Shares) *		1,085,479		–
BHP Billiton Ltd.		858,096		28,621
Boral Ltd.		214,262		960
Brambles Ltd.		414,773		3,527
Caltex Australia Ltd.		35,199		612
CFS Retail Property Trust Group		565,679		1,056
Coca-Cola Amatil Ltd.		153,732		1,759
Cochlear Ltd.		14,708		830
Commonwealth Bank of Australia		431,271		28,669
Computershare Ltd.		126,218		1,169
Crown Ltd.		104,003		1,509
CSL Ltd.		131,082		7,821
Dexus Property Group		1,289,547		1,210
Echo Entertainment Group Ltd.		228,179		590
Federation Centres Ltd.		373,085		794
Flight Centre Ltd.		13,612		614
Fortescue Metals Group Ltd.		417,556		1,853
Goodman Group		455,970		2,077
GPT Group		464,335		1,508
Harvey Norman Holdings Ltd.		141,040		419
Iluka Resources Ltd.		115,744		1,239
Incitec Pivot Ltd.		419,030		1,053
Insurance Australia Group Ltd.		556,044		3,045
James Hardie Industries PLC - CDI		121,931		1,215
Leighton Holdings Ltd.		45,047		809
Lend Lease Group		147,307		1,396
Macquarie Group Ltd.		82,165		3,676
Metcash Ltd.		248,142		742
Mirvac Group		997,911		1,620
National Australia Bank Ltd.		624,752		20,017
Newcrest Mining Ltd.		201,786		2,204
Orica Ltd.		99,016		1,853
Origin Energy Ltd.		297,141		3,909

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Australia – 7.8% – continued
Qantas Airways Ltd. *		300,334		$413
QBE Insurance Group Ltd.		319,951		4,380
Ramsay Health Care Ltd.		33,943		1,147
Rio Tinto Ltd.		116,947		6,742
Santos Ltd.		258,396		3,648
Seek Ltd.		86,104		955
Sonic Healthcare Ltd.		103,374		1,562
SP AusNet *		432,150		484
Stockland		612,548		2,212
Suncorp Group Ltd.		342,965		4,186
Sydney Airport		55,572		204
Tabcorp Holdings Ltd.		215,317		659
Tatts Group Ltd.		374,715		1,084
Telstra Corp. Ltd.		1,167,445		5,414
Toll Holdings Ltd.		191,601		1,042
Transurban Group		373,364		2,369
Treasury Wine Estates Ltd.		165,854		684
Wesfarmers Ltd. *		269,062		10,329
Westfield Group		564,469		5,798
Westfield Retail Trust		807,933		2,240
Westpac Banking Corp.		831,240		25,401
Whitehaven Coal Ltd. *		165,820		311
Woodside Petroleum Ltd.		176,392		6,308
Woolworths Ltd.		331,742		10,836
WorleyParsons Ltd.		57,688		1,310
				267,248
Austria – 0.3%
Andritz A.G.		19,987		1,177
Erste Group Bank A.G.		68,290		2,158
IMMOFINANZ A.G. *		266,527		1,163
OMV A.G.		39,694		1,962
Raiffeisen Bank International A.G.		13,191		432
Telekom Austria A.G.		58,917		495
Verbund A.G.		18,379		416
Vienna Insurance Group A.G. Wiener Versicherung Gruppe		10,207		524
Voestalpine A.G.		28,593		1,368
				9,695
Belgium – 1.1%
Ageas		61,071		2,474
Anheuser-Busch InBev N.V.		214,296		21,300
Belgacom S.A.		39,321		1,046
Colruyt S.A.		21,096		1,171
Delhaize Group S.A.		27,687		1,746

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Belgium – 1.1% – continued
Groupe Bruxelles Lambert S.A.		21,913		$1,864
KBC Groep N.V.		60,438		2,970
Solvay S.A., Class A		15,850		2,377
Telenet Group Holding N.V.		14,736		734
UCB S.A.		30,034		1,828
Umicore S.A.		31,076		1,510
				39,020
Denmark – 1.1%
A.P. Moller – Maersk A/S, Class A		145		1,254
A.P. Moller – Maersk A/S, Class B		357		3,278
Carlsberg A/S, Class B		28,301		2,915
Coloplast A/S, Class B		29,731		1,693
Danske Bank A/S *		173,114		3,726
DSV A/S		47,854		1,357
Novo Nordisk A/S, Class B		106,669		18,083
Novozymes A/S, Class B		61,800		2,364
TDC A/S		194,724		1,648
Tryg A/S		6,372		587
William Demant Holding A/S *		6,936		641
				37,546
Finland – 0.9%
Elisa OYJ		36,877		879
Fortum OYJ		118,613		2,677
Kesko OYJ, Class B		16,351		491
Kone OYJ, Class B		41,163		3,678
Metso OYJ		35,427		1,391
Neste Oil OYJ		33,014		733
Nokia OYJ *		1,011,864		6,605
Nokian Renkaat OYJ		31,098		1,579
Orion OYJ, Class B		27,999		705
Pohjola Bank PLC, Class A		35,613		592
Sampo OYJ, Class A		111,424		4,789
Stora Enso OYJ (Registered)		144,451		1,224
UPM-Kymmene OYJ		143,842		1,991
Wartsila OYJ Abp		47,289		2,134
				29,468
France – 9.5%
Accor S.A.		43,563		1,812
Aeroports de Paris		7,538		789
Air Liquide S.A.		83,368		11,614
Alstom S.A.		58,698		2,092
ArcelorMittal		272,942		3,754
Arkema S.A.		16,788		1,871

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
France – 9.5% – continued
AtoS		14,414		$1,126
AXA S.A.		481,661		11,178
BNP Paribas S.A.		265,747		17,987
Bouygues S.A.		52,501		1,917
Bureau Veritas S.A.		59,112		1,864
Cap Gemini S.A.		38,438		2,288
Carrefour S.A.		161,903		5,549
Casino Guichard Perrachon S.A.		15,343		1,582
CGG *		41,263		951
Christian Dior S.A.		14,554		2,855
Cie de St-Gobain		106,973		5,300
Cie Generale des Etablissements Michelin		49,053		5,440
CNP Assurances		43,998		793
Credit Agricole S.A. *		267,012		2,946
Danone S.A.		152,893		11,512
Dassault Systemes S.A.		16,671		2,227
Edenred		53,164		1,727
Electricite de France S.A.		62,579		1,980
Essilor International S.A.		54,299		5,842
Eurazeo S.A.		8,284		532
European Aeronautic Defence and Space Co. N.V.		154,772		9,865
Eutelsat Communications S.A.		37,983		1,201
Fonciere Des Regions		7,697		639
GDF Suez		354,026		8,898
Gecina S.A.		5,463		699
Groupe Eurotunnel S.A. (Registered)		146,062		1,331
ICADE		9,148		836
Iliad S.A.		5,937		1,385
Imerys S.A.		8,759		612
JCDecaux S.A.		17,251		636
Kering		20,363		4,566
Klepierre		27,239		1,181
Lafarge S.A.		49,264		3,431
Lagardere S.C.A.		30,099		978
Legrand S.A.		70,906		3,939
L’Oreal S.A.		64,597		11,098
LVMH Moet Hennessy Louis Vuitton S.A.		67,702		13,343
Natixis		238,010		1,140
Orange S.A.		498,886		6,258
Pernod Ricard S.A.		56,590		7,031
Publicis Groupe S.A.		48,114		3,830
Remy Cointreau S.A.		6,875		733
Renault S.A.		51,363		4,098
Rexel S.A.		55,868		1,422

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
France – 9.5% – continued
Safran S.A.		66,082		$4,072
Sanofi		318,482		32,297
Schneider Electric S.A.		140,695		11,905
SCOR S.E.		41,234		1,366
SES S.A.		82,264		2,355
Societe BIC S.A.		7,977		928
Societe Generale S.A.		187,901		9,371
Sodexo		25,262		2,359
Suez Environnement Co.		78,263		1,270
Technip S.A.		27,670		3,250
Thales S.A.		25,011		1,375
Total S.A.		574,164		33,371
Unibail-Rodamco S.E.		25,861		6,419
Vallourec S.A.		28,781		1,725
Veolia Environnement S.A.		91,262		1,559
Vinci S.A.		124,489		7,239
Vivendi S.A.		318,681		7,334
Wendel S.A.		8,473		1,149
Zodiac Aerospace		9,343		1,487
				327,509
Germany – 7.9%
Adidas A.G.		56,131		6,096
Allianz S.E. (Registered)		122,338		19,232
Axel Springer A.G.		9,977		555
BASF S.E.		246,141		23,633
Bayer A.G. (Registered)		221,476		26,115
Bayerische Motoren Werke A.G.		88,496		9,514
Beiersdorf A.G.		27,090		2,406
Brenntag A.G.		13,596		2,264
Celesio A.G.		21,869		492
Commerzbank A.G. *		257,488		2,965
Continental A.G.		29,793		5,050
Daimler A.G. (Registered)		257,522		20,073
Deutsche Bank A.G. (Registered)		272,565		12,515
Deutsche Boerse A.G.		51,331		3,863
Deutsche Lufthansa A.G. (Registered) *		59,910		1,168
Deutsche Post A.G. (Registered)		241,419		8,016
Deutsche Telekom A.G. (Registered)		749,227		10,867
E.ON S.E.		480,402		8,545
Fraport A.G. Frankfurt Airport Services Worldwide		10,570		742
Fresenius Medical Care A.G. & Co. KGaA		57,217		3,722
Fresenius S.E. & Co. KGaA		33,616		4,176
GEA Group A.G.		49,514		2,033

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Germany – 7.9% – continued
Hannover Rueck S.E.		16,781		$1,234
HeidelbergCement A.G.		37,892		2,922
Henkel A.G. & Co. KGaA		35,135		3,112
Hochtief A.G.		7,943		693
Hugo Boss A.G.		8,260		1,069
Infineon Technologies A.G.		295,026		2,951
K+S A.G. (Registered)		46,237		1,199
Kabel Deutschland Holding A.G. *		22,517		2,647
Kabel Deutschland Holding A.G.		536		68
Lanxess A.G.		22,326		1,449
Linde A.G.		49,389		9,787
MAN S.E.		9,386		1,119
Merck KGaA		17,404		2,716
Metro A.G.		33,489		1,329
Muenchener Rueckversicherungs A.G. (Registered)		47,887		9,367
OSRAM Licht A.G. *		21,150		993
ProSiebenSat.1 Media A.G. (Registered)		28,377		1,205
RWE A.G.		132,018		4,494
SAP A.G.		247,299		18,278
Siemens A.G. (Registered)		212,501		25,619
Suedzucker A.G.		21,511		634
Telefonica Deutschland Holding A.G.		74,091		585
ThyssenKrupp A.G. *		105,257		2,520
United Internet A.G. (Registered)		28,346		1,074
Volkswagen A.G.		7,688		1,744
				272,850
Greece – 0.0%
Hellenic Telecommunications Organization S.A. *		62,655		653
OPAP S.A.		58,566		655
				1,308
Hong Kong – 2.9%
AAC Technologies Holdings, Inc.		194,000		885
AIA Group Ltd.		3,213,093		15,126
ASM Pacific Technology Ltd.		63,000		640
Bank of East Asia Ltd.		335,859		1,422
BOC Hong Kong Holdings Ltd.		981,108		3,154
Cathay Pacific Airways Ltd.		327,506		643
Cheung Kong Holdings Ltd.		376,729		5,745
Cheung Kong Infrastructure Holdings Ltd.		163,353		1,133
CLP Holdings Ltd.		470,522		3,832
First Pacific Co. Ltd.		671,539		740
Galaxy Entertainment Group Ltd. *		567,148		3,988

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Hong Kong – 2.9% – continued
Hang Lung Properties Ltd.		592,501		$2,015
Hang Seng Bank Ltd.		201,279		3,285
Henderson Land Development Co. Ltd.		285,355		1,766
HKT Trust/HKT Ltd.		592,000		556
Hong Kong & China Gas Co. Ltd.		1,523,306		3,668
Hong Kong Exchanges and Clearing Ltd.		276,518		4,428
Hopewell Holdings Ltd.		141,500		474
Hutchison Whampoa Ltd.		571,698		6,857
Hysan Development Co. Ltd.		156,501		699
Kerry Properties Ltd.		176,203		753
Li & Fung Ltd.		1,571,218		2,290
Link REIT (The)		616,771		3,023
MGM China Holdings Ltd.		243,716		811
MTR Corp. Ltd.		379,981		1,505
New World Development Co. Ltd.		1,016,504		1,532
Noble Group Ltd.		1,101,944		817
NWS Holdings Ltd.		372,443		578
Orient Overseas International Ltd.		54,200		318
PCCW Ltd.		1,006,374		445
Power Assets Holdings Ltd.		375,433		3,363
Sands China Ltd.		653,541		4,048
Shangri-La Asia Ltd.		450,574		747
Sino Land Co. Ltd.		819,174		1,205
SJM Holdings Ltd.		525,572		1,481
Sun Hung Kai Properties Ltd.		427,756		5,829
Swire Pacific Ltd., Class A		178,051		2,133
Swire Properties Ltd.		327,800		917
Wharf Holdings Ltd.		397,766		3,451
Wheelock & Co. Ltd.		254,021		1,349
Wynn Macau Ltd.		422,946		1,446
Yangzijiang Shipbuilding Holdings Ltd.		574,566		502
Yue Yuen Industrial Holdings Ltd.		183,210		512
				100,111
Ireland – 0.7%
Bank of Ireland *		5,646,794		1,619
CRH PLC		1,040		25
CRH PLC (Dublin Exchange)		195,154		4,694
Elan Corp. PLC *		129,658		2,030
Experian PLC		270,488		5,152
Irish Bank Resolution Corp. Ltd. (1)*		99,788		–
Kerry Group PLC, Class A		40,017		2,439
Ryanair Holdings PLC		3,150		27
Ryanair Holdings PLC ADR		5,370		267

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Ireland – 0.7% – continued
Shire PLC		148,672		$5,953
				22,206
Israel – 0.4%
Bank Hapoalim B.M.		287,779		1,455
Bank Leumi Le-Israel B.M. *		350,691		1,305
Bezeq The Israeli Telecommunication Corp. Ltd. *		503,015		925
Delek Group Ltd.		1,153		377
Israel (The) Corp. Ltd. *		762		402
Israel Chemicals Ltd.		122,123		1,031
Mizrahi Tefahot Bank Ltd.		39,879		440
NICE Systems Ltd.		15,538		643
Teva Pharmaceutical Industries Ltd.		229,139		8,632
				15,210
Italy – 2.0%
Assicurazioni Generali S.p.A.		312,780		6,248
Atlantia S.p.A.		90,070		1,835
Banca Monte dei Paschi di Siena S.p.A. *		1,674,181		465
Enel Green Power S.p.A.		487,530		1,046
Enel S.p.A.		1,760,327		6,750
Eni S.p.A.		679,189		15,659
Exor S.p.A.		26,009		977
Fiat S.p.A. *		241,865		1,927
Finmeccanica S.p.A. *		101,948		610
Intesa Sanpaolo S.p.A.		3,096,004		6,397
Luxottica Group S.p.A.		44,876		2,387
Mediobanca S.p.A.		134,079		937
Pirelli & C. S.p.A.		62,370		812
Prysmian S.p.A.		56,575		1,385
Saipem S.p.A.		69,872		1,519
Snam S.p.A.		537,494		2,724
Telecom Italia S.p.A.		2,668,444		2,204
Telecom Italia S.p.A. (RSP)		1,686,195		1,118
Tenaris S.A.		125,111		2,932
Terna Rete Elettrica Nazionale S.p.A.		390,904		1,766
UniCredit S.p.A.		1,157,298		7,406
Unione di Banche Italiane S.c.p.A.		227,898		1,152
				68,256
Japan – 21.1%
ABC-Mart, Inc.		6,900		336
Acom Co. Ltd. *		94,800		359
Advantest Corp.		37,400		433
Aeon Co. Ltd.		159,600		2,204

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
AEON Financial Service Co. Ltd.		19,300		$608
Aeon Mall Co. Ltd.		29,980		891
Air Water, Inc.		33,569		497
Aisin Seiki Co. Ltd.		50,800		2,177
Ajinomoto Co., Inc.		163,000		2,146
Alfresa Holdings Corp.		10,900		563
Amada Co. Ltd.		101,000		914
ANA Holdings, Inc.		319,000		697
Aozora Bank Ltd.		270,000		801
Asahi Glass Co. Ltd.		270,000		1,680
Asahi Group Holdings Ltd.		104,200		2,742
Asahi Kasei Corp.		332,000		2,509
Asics Corp.		40,800		707
Astellas Pharma, Inc.		115,400		5,899
Bank of Kyoto (The) Ltd.		85,971		758
Bank of Yokohama (The) Ltd.		306,000		1,752
Benesse Holdings, Inc.		19,200		699
Bridgestone Corp.		173,700		6,358
Brother Industries Ltd.		64,200		728
Calbee, Inc.		20,000		581
Canon, Inc.		301,800		9,644
Casio Computer Co. Ltd.		55,500		515
Central Japan Railway Co.		39,100		5,021
Chiba Bank (The) Ltd.		199,000		1,457
Chiyoda Corp.		36,746		443
Chubu Electric Power Co., Inc.		172,500		2,351
Chugai Pharmaceutical Co. Ltd.		59,055		1,215
Chugoku Bank (The) Ltd.		39,000		549
Chugoku Electric Power (The) Co., Inc.		80,400		1,281
Citizen Holdings Co. Ltd.		64,900		457
Coca-Cola West Co. Ltd.		18,000		360
Cosmo Oil Co. Ltd. *		123,000		231
Credit Saison Co. Ltd.		43,400		1,180
Dai Nippon Printing Co. Ltd.		150,000		1,592
Daicel Corp.		73,000		660
Daido Steel Co. Ltd.		63,000		372
Daihatsu Motor Co. Ltd.		48,000		933
Dai-ichi Life Insurance (The) Co. Ltd.		224,300		3,215
Daiichi Sankyo Co. Ltd.		178,500		3,239
Daikin Industries Ltd.		62,300		3,312
Dainippon Sumitomo Pharma Co. Ltd.		43,900		600
Daito Trust Construction Co. Ltd.		19,100		1,913
Daiwa House Industry Co. Ltd.		158,000		2,962
Daiwa Securities Group, Inc.		443,000		3,997

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
Dena Co. Ltd.		26,900		$548
Denso Corp.		129,300		6,058
Dentsu, Inc.		56,718		2,167
Don Quijote Co. Ltd.		13,800		866
East Japan Railway Co.		90,012		7,759
Eisai Co. Ltd.		66,600		2,713
Electric Power Development Co. Ltd.		30,200		987
FamilyMart Co. Ltd.		14,200		615
FANUC Corp.		51,400		8,500
Fast Retailing Co. Ltd.		13,800		5,207
Fuji Electric Co. Ltd.		140,000		573
Fuji Heavy Industries Ltd.		159,000		4,423
FUJIFILM Holdings Corp.		123,500		2,974
Fujitsu Ltd. *		494,000		1,848
Fukuoka Financial Group, Inc.		197,000		892
Furukawa Electric Co. Ltd.		188,000		435
Gree, Inc.		23,981		187
GungHo Online Entertainment, Inc. *		909		712
Gunma Bank (The) Ltd.		96,000		563
Hachijuni Bank (The) Ltd.		115,395		720
Hakuhodo DY Holdings, Inc.		54,300		404
Hamamatsu Photonics K.K.		20,185		762
Hankyu Hanshin Holdings, Inc.		295,000		1,641
Hino Motors Ltd.		72,000		1,067
Hirose Electric Co. Ltd.		7,800		1,201
Hiroshima Bank (The) Ltd.		133,000		569
Hisamitsu Pharmaceutical Co., Inc.		16,800		939
Hitachi Chemical Co. Ltd.		29,000		467
Hitachi Construction Machinery Co. Ltd.		30,800		692
Hitachi High-Technologies Corp.		15,700		353
Hitachi Ltd.		1,297,000		8,588
Hitachi Metals Ltd.		50,000		615
Hokkaido Electric Power Co., Inc. *		51,600		697
Hokuhoku Financial Group, Inc.		308,000		649
Hokuriku Electric Power Co.		47,600		698
Honda Motor Co. Ltd.		436,800		16,692
Hoya Corp.		116,400		2,757
Hulic Co. Ltd.		73,800		1,111
Ibiden Co. Ltd.		29,300		480
Idemitsu Kosan Co. Ltd.		5,200		451
IHI Corp.		339,000		1,433
Inpex Corp.		230,500		2,725
Isetan Mitsukoshi Holdings Ltd.		98,060		1,459
Isuzu Motors Ltd.		314,000		2,082

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
ITOCHU Corp.		400,600		$4,922
Itochu Techno-Solutions Corp.		5,600		199
Iyo Bank (The) Ltd.		69,000		725
J Front Retailing Co. Ltd.		129,000		1,048
Japan Airlines Co. Ltd.		16,200		982
Japan Exchange Group, Inc.		67,300		1,497
Japan Petroleum Exploration Co.		6,100		263
Japan Prime Realty Investment Corp.		199		699
Japan Real Estate Investment Corp.		154		1,805
Japan Retail Fund Investment Corp.		557		1,146
Japan Steel Works (The) Ltd.		87,000		507
Japan Tobacco, Inc.		293,600		10,601
JFE Holdings, Inc.		130,100		3,390
JGC Corp.		57,000		2,063
Joyo Bank (The) Ltd.		187,000		1,008
JSR Corp.		49,000		913
JTEKT Corp.		52,800		727
JX Holdings, Inc.		591,797		3,078
Kajima Corp.		235,000		961
Kamigumi Co. Ltd.		56,000		477
Kaneka Corp.		66,000		432
Kansai Electric Power (The) Co., Inc. *		186,700		2,379
Kansai Paint Co. Ltd.		58,000		771
Kao Corp.		141,000		4,406
Kawasaki Heavy Industries Ltd.		377,000		1,641
KDDI Corp.		143,400		7,381
Keikyu Corp.		119,000		1,128
Keio Corp.		154,000		1,107
Keisei Electric Railway Co. Ltd.		71,000		742
Keyence Corp.		12,039		4,585
Kikkoman Corp.		44,000		807
Kinden Corp.		39,000		420
Kintetsu Corp.		431,000		1,608
Kirin Holdings Co. Ltd.		233,000		3,405
Kobe Steel Ltd. *		634,000		1,182
Koito Manufacturing Co. Ltd.		21,814		416
Komatsu Ltd.		248,200		6,196
Konami Corp.		28,900		669
Konica Minolta, Inc.		128,500		1,083
Kubota Corp.		284,000		4,124
Kuraray Co. Ltd.		92,700		1,114
Kurita Water Industries Ltd.		29,200		622
Kyocera Corp.		87,000		4,635
Kyowa Hakko Kirin Co. Ltd.		64,000		659

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
Kyushu Electric Power Co., Inc. *		116,000		$1,661
Lawson, Inc.		17,200		1,350
LIXIL Group Corp.		71,200		1,471
M3, Inc.		200		555
Mabuchi Motor Co. Ltd.		6,200		328
Makita Corp.		29,900		1,740
Marubeni Corp.		439,000		3,465
Marui Group Co. Ltd.		56,500		531
Maruichi Steel Tube Ltd.		14,200		353
Mazda Motor Corp. *		715,000		3,204
McDonald’s Holdings Co. Japan Ltd.		18,800		518
Medipal Holdings Corp.		33,800		418
MEIJI Holdings Co. Ltd.		16,663		914
Miraca Holdings, Inc.		15,441		690
Mitsubishi Chemical Holdings Corp.		360,500		1,690
Mitsubishi Corp.		372,800		7,562
Mitsubishi Electric Corp.		516,000		5,447
Mitsubishi Estate Co. Ltd.		337,000		9,999
Mitsubishi Gas Chemical Co., Inc.		107,000		902
Mitsubishi Heavy Industries Ltd.		808,000		4,650
Mitsubishi Logistics Corp.		28,000		425
Mitsubishi Materials Corp.		288,000		1,193
Mitsubishi Motors Corp. *		119,900		1,332
Mitsubishi Tanabe Pharma Corp.		57,000		801
Mitsubishi UFJ Financial Group, Inc.		3,410,095		21,875
Mitsubishi UFJ Lease & Finance Co. Ltd.		152,000		808
Mitsui & Co. Ltd.		461,400		6,723
Mitsui Chemicals, Inc.		203,000		559
Mitsui Fudosan Co. Ltd.		221,000		7,470
Mitsui OSK Lines Ltd. *		285,000		1,292
Mizuho Financial Group, Inc.		6,142,989		13,371
MS&AD Insurance Group Holdings		135,643		3,554
Murata Manufacturing Co. Ltd.		54,397		4,168
Nabtesco Corp.		29,499		721
Namco Bandai Holdings, Inc.		44,500		832
NEC Corp.		619,000		1,437
Nexon Co. Ltd.		26,700		326
NGK Insulators Ltd.		76,000		1,157
NGK Spark Plug Co. Ltd.		44,000		978
NHK Spring Co. Ltd.		44,000		453
Nidec Corp.		27,300		2,261
Nikon Corp.		89,800		1,568
Nintendo Co. Ltd.		28,500		3,238
Nippon Building Fund, Inc.		187		2,329

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
Nippon Electric Glass Co. Ltd.		94,500		$507
Nippon Express Co. Ltd.		213,000		1,071
Nippon Meat Packers, Inc.		49,000		703
Nippon Prologis REIT, Inc.		67		671
Nippon Steel & Sumitomo Metal Corp.		2,024,615		6,902
Nippon Telegraph & Telephone Corp.		115,578		5,999
Nippon Yusen K.K.		415,000		1,315
Nishi-Nippon City Bank (The) Ltd.		184,000		503
Nissan Motor Co. Ltd.		659,900		6,644
Nisshin Seifun Group, Inc.		53,750		543
Nissin Foods Holdings Co. Ltd.		14,200		584
Nitori Holdings Co. Ltd.		9,400		862
Nitto Denko Corp.		42,800		2,804
NKSJ Holdings, Inc.		88,045		2,272
NOK Corp.		27,500		430
Nomura Holdings, Inc.		973,600		7,602
Nomura Real Estate Holdings, Inc.		32,100		791
Nomura Real Estate Office Fund, Inc.		82		421
Nomura Research Institute Ltd.		27,700		965
NSK Ltd.		132,000		1,354
NTT Data Corp.		34,000		1,149
NTT DOCOMO, Inc.		405,000		6,580
NTT Urban Development Corp.		33,900		446
Obayashi Corp.		174,000		1,041
Odakyu Electric Railway Co. Ltd.		172,000		1,713
Oji Holdings Corp.		211,000		991
Olympus Corp. *		64,400		1,960
Omron Corp.		54,800		1,983
Ono Pharmaceutical Co. Ltd.		21,400		1,318
Oracle Corp. Japan		11,100		414
Oriental Land Co. Ltd.		13,400		2,218
ORIX Corp.		330,600		5,411
Osaka Gas Co. Ltd.		504,000		2,151
Otsuka Corp.		3,700		473
Otsuka Holdings Co. Ltd.		96,715		2,808
Panasonic Corp.		591,800		5,736
Park24 Co. Ltd.		27,300		486
Rakuten, Inc.		195,600		2,972
Resona Holdings, Inc.		492,710		2,523
Ricoh Co. Ltd.		178,000		2,061
Rinnai Corp.		9,600		714
Rohm Co. Ltd.		25,500		1,049
Sankyo Co. Ltd.		14,400		705
Sanrio Co. Ltd.		11,697		720

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
Santen Pharmaceutical Co. Ltd.		19,500		$947
SBI Holdings, Inc.		53,760		699
Secom Co. Ltd.		56,100		3,521
Sega Sammy Holdings, Inc.		49,400		1,431
Sekisui Chemical Co. Ltd.		112,000		1,144
Sekisui House Ltd.		149,000		2,009
Seven & I Holdings Co. Ltd.		199,800		7,318
Seven Bank Ltd.		157,200		527
Sharp Corp. *		293,000		1,082
Shikoku Electric Power Co., Inc. *		47,400		808
Shimadzu Corp.		64,000		608
Shimamura Co. Ltd.		6,600		657
Shimano, Inc.		20,800		1,861
Shimizu Corp.		144,000		706
Shin-Etsu Chemical Co. Ltd.		108,700		6,673
Shinsei Bank Ltd.		438,000		1,065
Shionogi & Co. Ltd.		81,000		1,707
Shiseido Co. Ltd.		96,000		1,729
Shizuoka Bank (The) Ltd.		157,000		1,792
Showa Denko K.K.		407,000		552
Showa Shell Sekiyu K.K.		52,300		587
SMC Corp.		14,100		3,366
Softbank Corp.		257,000		17,861
Sojitz Corp.		358,400		704
Sony Corp.		271,200		5,811
Sony Financial Holdings, Inc.		44,300		815
Stanley Electric Co. Ltd.		37,300		795
Sumco Corp.		27,200		221
Sumitomo Chemical Co. Ltd.		392,000		1,496
Sumitomo Corp.		300,000		4,052
Sumitomo Electric Industries Ltd.		198,900		2,887
Sumitomo Heavy Industries Ltd.		150,000		684
Sumitomo Metal Mining Co. Ltd.		139,000		1,971
Sumitomo Mitsui Financial Group, Inc.		340,542		16,533
Sumitomo Mitsui Trust Holdings, Inc.		888,190		4,411
Sumitomo Realty & Development Co. Ltd.		95,000		4,531
Sumitomo Rubber Industries Ltd.		42,800		663
Suntory Beverage & Food Ltd. *		33,300		1,124
Suruga Bank Ltd.		51,000		880
Suzuken Co. Ltd.		18,197		600
Suzuki Motor Corp.		99,000		2,378
Sysmex Corp.		19,649		1,259
T&D Holdings, Inc.		155,000		1,926
Taiheiyo Cement Corp.		309,000		1,354

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
Taisei Corp.		263,000		$1,298
Taisho Pharmaceutical Holdings Co. Ltd.		8,500		561
Taiyo Nippon Sanso Corp.		59,000		397
Takashimaya Co. Ltd.		73,000		686
Takeda Pharmaceutical Co. Ltd.		211,500		10,004
TDK Corp.		31,700		1,247
Teijin Ltd.		225,000		520
Terumo Corp.		40,900		2,105
THK Co. Ltd.		28,600		637
Tobu Railway Co. Ltd.		269,000		1,423
Toho Co. Ltd.		30,200		631
Toho Gas Co. Ltd.		115,000		603
Tohoku Electric Power Co., Inc. *		123,200		1,520
Tokio Marine Holdings, Inc.		183,500		6,020
Tokyo Electric Power Co., Inc. *		384,800		2,395
Tokyo Electron Ltd.		45,400		2,442
Tokyo Gas Co. Ltd.		655,000		3,600
Tokyo Tatemono Co. Ltd.		106,000		976
Tokyu Corp.		307,000		2,196
Tokyu Land Corp.		139,000		1,444
TonenGeneral Sekiyu K.K.		76,000		703
Toppan Printing Co. Ltd.		150,000		1,213
Toray Industries, Inc.		396,000		2,611
Toshiba Corp.		1,075,000		4,846
TOTO Ltd.		82,000		1,152
Toyo Seikan Group Holdings Ltd.		45,100		887
Toyo Suisan Kaisha Ltd.		22,000		647
Toyoda Gosei Co. Ltd.		15,900		393
Toyota Boshoku Corp.		13,400		180
Toyota Industries Corp.		43,200		1,871
Toyota Motor Corp.		737,600		47,303
Toyota Tsusho Corp.		55,100		1,443
Trend Micro, Inc.		26,900		1,004
Tsumura & Co.		14,000		411
Ube Industries Ltd.		260,000		492
Unicharm Corp.		29,700		1,738
United Urban Investment Corp.		596		910
USS Co. Ltd.		61,900		897
West Japan Railway Co.		45,400		1,947
Yahoo Japan Corp.		393,200		2,239
Yakult Honsha Co. Ltd.		24,000		1,205
Yamada Denki Co. Ltd.		245,590		726
Yamaguchi Financial Group, Inc.		54,000		532
Yamaha Corp.		39,400		564

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Japan – 21.1% – continued
Yamaha Motor Co. Ltd.		75,100		$1,104
Yamato Holdings Co. Ltd.		96,500		2,182
Yamato Kogyo Co. Ltd.		12,400		462
Yamazaki Baking Co. Ltd.		26,905		291
Yaskawa Electric Corp.		63,000		890
Yokogawa Electric Corp.		60,200		860
Yokohama Rubber (The) Co. Ltd.		61,000		604
				723,981
Netherlands – 4.4%
Aegon N.V.		480,671		3,559
Akzo Nobel N.V.		64,047		4,210
ASML Holding N.V.		95,873		9,456
CNH Industrial N.V. *		257,843		3,307
Corio N.V.		17,511		754
Delta Lloyd N.V.		51,619		1,097
Fugro N.V. - CVA		18,612		1,136
Gemalto N.V.		21,003		2,256
Heineken Holding N.V.		27,522		1,741
Heineken N.V.		61,771		4,374
ING Groep N.V. - CVA *		1,022,157		11,599
Koninklijke Ahold N.V.		270,900		4,694
Koninklijke Boskalis Westminster N.V.		21,409		947
Koninklijke DSM N.V.		40,966		3,092
Koninklijke KPN N.V. *		866,659		2,762
Koninklijke Philips N.V.		254,802		8,217
Koninklijke Vopak N.V.		18,816		1,077
OCI *		24,257		820
QIAGEN N.V. *		64,781		1,397
Randstad Holding N.V.		33,744		1,901
Reed Elsevier N.V.		154,074		3,096
Royal Dutch Shell PLC, Class A		1,015,654		33,549
Royal Dutch Shell PLC, Class A (Amsterdam Exchange)		20,000		660
Royal Dutch Shell PLC, Class B		665,654		23,007
TNT Express N.V.		97,581		890
Unilever N.V. - CVA		435,847		16,961
Wolters Kluwer N.V.		81,564		2,100
Ziggo N.V.		40,361		1,635
				150,294
New Zealand – 0.1%
Auckland International Airport Ltd.		274,776		757
Contact Energy Ltd.		88,562		398
Fletcher Building Ltd.		187,589		1,480
SKYCITY Entertainment Group Ltd.		148,603		494

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
New Zealand – 0.1% – continued
Telecom Corp. of New Zealand Ltd.		495,593		$957
				4,086
Norway – 0.7%
Aker Solutions ASA		42,637		599
DNB ASA		264,627		4,020
Gjensidige Forsikring ASA		51,489		778
Norsk Hydro ASA		256,911		1,065
Orkla ASA		209,177		1,524
Seadrill Ltd.		100,300		4,504
Statoil ASA		296,402		6,733
Telenor ASA		188,605		4,311
Yara International ASA		49,929		2,062
				25,596
Portugal – 0.2%
Banco Espirito Santo S.A. (Registered) *		515,547		549
EDP - Energias de Portugal S.A.		533,179		1,948
Galp Energia SGPS S.A.		91,927		1,532
Jeronimo Martins SGPS S.A.		66,944		1,375
Portugal Telecom SGPS S.A. (Registered)		158,836		716
				6,120
Singapore – 1.5%
Ascendas Real Estate Investment Trust		567,879		1,033
CapitaCommercial Trust		501,000		579
CapitaLand Ltd.		668,750		1,649
CapitaMall Trust		628,800		983
CapitaMalls Asia Ltd.		396,658		618
City Developments Ltd.		106,000		866
ComfortDelGro Corp. Ltd.		520,000		817
DBS Group Holdings Ltd.		453,626		5,941
Genting Singapore PLC		1,628,380		1,864
Global Logistic Properties Ltd.		810,939		1,870
Golden Agri-Resources Ltd.		1,908,892		792
Hutchison Port Holdings Trust, Class U		1,328,000		1,039
Jardine Cycle & Carriage Ltd.		28,446		865
Keppel Corp. Ltd.		383,550		3,186
Keppel Land Ltd.		166,473		470
Olam International Ltd.		393,479		480
Oversea-Chinese Banking Corp. Ltd.		688,944		5,658
Sembcorp Industries Ltd.		268,644		1,133
SembCorp Marine Ltd.		217,800		787
Singapore Airlines Ltd.		146,734		1,219
Singapore Exchange Ltd.		217,000		1,257
Singapore Press Holdings Ltd.		392,295		1,286

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Singapore – 1.5% – continued
Singapore Technologies Engineering Ltd.		414,000		$1,377
Singapore Telecommunications Ltd.		2,149,925		6,397
StarHub Ltd.		152,000		520
United Overseas Bank Ltd.		343,875		5,670
UOL Group Ltd.		117,739		577
Wilmar International Ltd.		518,000		1,309
				50,242
Spain – 3.1%
Abertis Infraestructuras S.A.		98,872		1,927
Acciona S.A.		7,269		416
ACS Actividades de Construccion y Servicios S.A.		40,111		1,280
Amadeus IT Holding S.A., Class A		101,369		3,597
Banco Bilbao Vizcaya Argentaria S.A.		1,476,648		16,589
Banco de Sabadell S.A.		707,482		1,782
Banco Popular Espanol S.A. *		337,019		1,825
Banco Santander S.A.		2,987,411		24,490
Bankia S.A. *		1,078,114		1,174
CaixaBank S.A.		314,493		1,381
Distribuidora Internacional de Alimentacion S.A.		166,911		1,453
Enagas S.A.		47,869		1,176
Ferrovial S.A.		110,282		1,989
Gas Natural SDG S.A.		92,453		1,938
Grifols S.A.		35,860		1,473
Grifols S.A., Class B		4,066		124
Iberdrola S.A.		1,273,095		7,423
Inditex S.A.		58,210		8,995
Mapfre S.A.		202,339		724
Red Electrica Corp. S.A.		27,002		1,542
Repsol S.A.		231,432		5,757
Telefonica S.A. *		1,100,309		17,197
Zardoya Otis S.A.		40,121		651
				104,903
Sweden – 3.2%
Alfa Laval AB		85,790		2,071
Assa Abloy AB, Class B		88,490		4,063
Atlas Copco AB, Class A		179,761		5,266
Atlas Copco AB, Class B		105,110		2,780
Boliden AB		77,852		1,167
Electrolux AB, Class B		64,966		1,688
Elekta AB, Class B		100,896		1,624
Getinge AB, Class B		52,518		1,877
Hennes & Mauritz AB, Class B		253,584		11,029

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Sweden – 3.2% – continued
Hexagon AB, Class B		64,449		$1,942
Husqvarna AB, Class B		104,601		679
Industrivarden AB, Class C		35,514		654
Investment AB Kinnevik, Class B		59,272		2,055
Investor AB, Class B		120,094		3,644
Lundin Petroleum AB *		58,527		1,263
Millicom International Cellular S.A. SDR		17,403		1,538
Nordea Bank AB		760,668		9,190
Ratos AB, Class B		48,959		456
Sandvik AB		284,637		3,934
Scania AB, Class B		86,488		1,852
Securitas AB, Class B		81,818		935
Skandinaviska Enskilda Banken AB, Class A		403,667		4,279
Skanska AB, Class B		102,444		1,971
SKF AB, Class B		103,811		2,891
Svenska Cellulosa AB S.C.A., Class B		158,176		3,991
Svenska Handelsbanken AB, Class A		132,965		5,689
Swedbank AB, Class A		240,831		5,617
Swedish Match AB		54,242		1,915
Tele2 AB, Class B *		82,187		1,051
Telefonaktiebolaget LM Ericsson, Class B		813,291		10,832
TeliaSonera AB		633,572		4,855
Volvo AB, Class B		409,156		6,130
				108,928
Switzerland – 9.5%
ABB Ltd. (Registered) *		586,373		13,852
Actelion Ltd. (Registered) *		28,202		2,002
Adecco S.A. (Registered) *		35,970		2,569
Aryzta A.G. *		19,459		1,301
Aryzta A.G. (Dublin Exchange) *		4,637		311
Baloise Holding A.G. (Registered)		12,346		1,365
Banque Cantonale Vaudoise (Registered)		748		412
Barry Callebaut A.G. (Registered) *		589		591
Cie Financiere Richemont S.A. (Registered)		137,740		13,765
Coca-Cola HBC A.G. - CDI *		1,624		49
Coca-Cola HBC A.G. ADR		48,838		1,459
Credit Suisse Group A.G. (Registered) *		402,066		12,321
EMS-Chemie Holding A.G. (Registered)		2,249		795
Geberit A.G. (Registered) *		10,441		2,820
Givaudan S.A. (Registered) *		2,239		3,275
Glencore Xstrata PLC *		2,846,090		15,525
Holcim Ltd. (Registered) *		61,450		4,575
Julius Baer Group Ltd. *		60,706		2,834

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Switzerland – 9.5% – continued
Kuehne + Nagel International A.G. (Registered)		14,514		$1,901
Lindt & Spruengli A.G. (Registered)		25		1,187
Lindt & Spruengli A.G. (Participation Certificate)		237		973
Lonza Group A.G. (Registered) *		14,735		1,206
Nestle S.A. (Registered)		862,276		60,396
Novartis A.G. (Registered)		614,739		47,252
Pargesa Holding S.A. (Bearer)		6,947		521
Partners Group Holding A.G.		4,722		1,157
Roche Holding A.G. (Genusschein)		187,835		50,670
Schindler Holding A.G. (Registered)		5,278		766
Schindler Holding A.G. (Participation Certificate)		13,270		1,995
SGS S.A. (Registered)		1,438		3,438
Sika A.G. (Bearer)		577		1,682
Sonova Holding A.G. (Registered) *		13,676		1,700
STMicroelectronics N.V. *		176,982		1,631
Sulzer A.G. (Registered)		6,665		1,032
Swatch Group (The) A.G. (Bearer)		8,238		5,314
Swatch Group (The) A.G. (Registered)		11,704		1,318
Swiss Life Holding A.G. (Registered) *		8,538		1,616
Swiss Prime Site A.G. (Registered) *		14,114		1,093
Swiss Re A.G. *		93,896		7,767
Swisscom A.G. (Registered)		6,327		3,044
Syngenta A.G. (Registered)		24,850		10,153
Transocean Ltd.		97,005		4,319
UBS A.G. (Registered) *		972,462		19,895
Wolseley PLC		73,350		3,798
Zurich Insurance Group A.G. *		39,870		10,268
				325,913
United Kingdom – 18.6%
3i Group PLC		253,307		1,492
Aberdeen Asset Management PLC		251,676		1,543
Admiral Group PLC		52,044		1,039
Aggreko PLC		72,764		1,890
AMEC PLC		76,365		1,329
Anglo American PLC		371,576		9,137
Antofagasta PLC		105,188		1,396
ARM Holdings PLC		372,181		5,959
Associated British Foods PLC		95,557		2,905
AstraZeneca PLC		334,508		17,385
Aviva PLC		795,040		5,103
Babcock International Group PLC		97,462		1,886
BAE Systems PLC		870,523		6,401

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
United Kingdom – 18.6% – continued
Barclays PLC		3,276,088		$14,095
BG Group PLC		913,053		17,454
BHP Billiton PLC		563,448		16,596
BP PLC		5,079,864		35,640
British American Tobacco PLC		514,185		27,283
British Land Co. PLC		247,000		2,312
British Sky Broadcasting Group PLC		276,510		3,897
BT Group PLC		2,102,692		11,651
Bunzl PLC		89,483		1,937
Burberry Group PLC		118,222		3,131
Capita PLC		175,533		2,829
Carnival Corp.		5,012		164
Carnival PLC		44,581		1,511
Centrica PLC		1,380,108		8,267
Cobham PLC		278,467		1,295
Compass Group PLC		481,783		6,624
Croda International PLC		35,369		1,521
Diageo PLC		671,163		21,327
Direct Line Insurance Group PLC		216,524		747
easyJet PLC		42,247		873
Fresnillo PLC		49,488		780
G4S PLC		388,684		1,601
GKN PLC		438,116		2,426
GlaxoSmithKline PLC		1,315,473		33,062
Hammerson PLC		192,145		1,559
Hargreaves Lansdown PLC		60,306		956
HSBC Holdings PLC		4,980,261		53,972
ICAP PLC		141,954		860
IMI PLC		83,428		1,966
Imperial Tobacco Group PLC		259,459		9,613
Inmarsat PLC		116,760		1,341
InterContinental Hotels Group PLC		73,009		2,134
International Consolidated Airlines Group S.A. *		241,273		1,324
Intertek Group PLC		43,098		2,305
Intu Properties PLC		180,343		938
Invensys PLC		179,897		1,453
Investec PLC		150,185		974
ITV PLC		1,002,338		2,845
J Sainsbury PLC		332,299		2,108
Johnson Matthey PLC		55,359		2,517
Kingfisher PLC		627,697		3,917
Land Securities Group PLC		209,813		3,122
Legal & General Group PLC		1,583,564		5,037
Lloyds Banking Group PLC *		12,354,818		14,740

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
United Kingdom – 18.6% – continued
London Stock Exchange Group PLC		47,143		$1,173
Marks & Spencer Group PLC		431,893		3,473
Meggitt PLC		213,302		1,895
Melrose Industries PLC		334,338		1,622
National Grid PLC		982,748		11,626
Next PLC		43,043		3,599
Old Mutual PLC		1,327,945		4,033
Pearson PLC		221,104		4,500
Persimmon PLC *		80,446		1,414
Petrofac Ltd.		69,522		1,584
Prudential PLC		687,285		12,813
Randgold Resources Ltd.		23,106		1,657
Reckitt Benckiser Group PLC		172,884		12,651
Reed Elsevier PLC		370,751		4,994
Resolution Ltd.		384,502		1,979
Rexam PLC		213,311		1,663
Rio Tinto PLC		339,333		16,619
Rolls-Royce Holdings PLC *		505,233		9,105
Royal Bank of Scotland Group PLC *		579,948		3,371
RSA Insurance Group PLC		958,904		1,877
SABMiller PLC		257,045		13,103
Sage Group (The) PLC		300,758		1,605
Schroders PLC		26,073		1,087
Segro PLC		207,734		1,043
Serco Group PLC		136,591		1,208
Severn Trent PLC		64,752		1,849
Smith & Nephew PLC		241,882		3,020
Smiths Group PLC		105,678		2,392
SSE PLC		257,460		6,149
Standard Chartered PLC		647,802		15,537
Standard Life PLC		627,051		3,507
Subsea 7 S.A.		68,877		1,432
Tate & Lyle PLC		126,893		1,513
Tesco PLC		2,159,807		12,556
Travis Perkins PLC		65,018		1,736
TUI Travel PLC		120,898		719
Tullow Oil PLC		244,957		4,064
Unilever PLC		344,163		13,292
United Utilities Group PLC		185,268		2,073
Vedanta Resources PLC		23,717		416
Vodafone Group PLC		13,015,451		45,895
Weir Group (The) PLC		58,113		2,193
Whitbread PLC		48,573		2,329
William Hill PLC		228,845		1,491

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
United Kingdom – 18.6% – continued
WM Morrison Supermarkets PLC		582,261		$2,640
WPP PLC		349,389		7,193
				639,859
Total Common Stocks (2)
(Cost $2,744,807)				3,330,349
PREFERRED STOCKS – 0.6%
Germany – 0.6%
Bayerische Motoren Werke A.G.		14,705		1,200
Fuchs Petrolub A.G.		9,471		793
Henkel A.G. & Co. KGaA		47,392		4,883
Porsche Automobil Holding S.E.		40,911		3,575
RWE A.G. (Non Voting)		9,242		303
Volkswagen A.G.		38,626		9,105
				19,859
Total Preferred Stocks (2)
(Cost $12,827)				19,859
RIGHTS – 0.0%
Austria – 0.0%
Immoeast A.G. *		63,165		–
Immoeast A.G. *		62,543		–
				–
Spain – 0.0%
Abertis Infraestructuras S.A. *		95,608		93
Banco Bilbao Vizcaya Argentaria S.A. *		1,476,648		202
Banco de Sabadell S.A. *		664,505		132
				427
United Kingdom – 0.0%
Barclays PLC *		782,168		1,021
Total Rights (2)
(Cost $1,497)				1,448

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 4.9%
iShares MSCI EAFE ETF		312,690		$19,947
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (3)(4)		146,745,379		146,745
Total Investment Companies
(Cost $166,757)				166,692
Total Investments – 102.5%
(Cost $2,925,888)				3,518,348
Liabilities less Other Assets – (2.5)%				(84,594	)
NET ASSETS – 100.0%				$3,433,754

(1) Level 3 asset that is worthless, bankrupt or has been delisted.

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

(3) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $45,426,000 with net purchases of approximately $101,319,000 during the six months ended September 30, 2013.

(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.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2013, 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)		582		$22,668		Long		12/13		$154
FTSE 100 Index (British Pound)		163		16,996		Long		12/13		(296)
Hang Seng Index (Hong Kong Dollar)		15		2,213		Long		10/13		(38)
Nikkei 225 (Japanese Yen)		28		2,069		Long		12/13		29
SPI 200 (Australian Dollar)		62		7,552		Long		12/13		(64)
Topix Index (Japanese Yen)		32		3,895		Long		12/13		17

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000s)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000s)
Yen Denominated Nikkei 225 (Japanese Yen)		97		7,172		Long		12/13		$100
Total										$(98)

At September 30, 2013, the International Equity Index Fund’s investments were denominated in the following currencies :

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
Euro		29.3%
British Pound		21.5
Japanese Yen		21.5
Swiss Franc		9.0
Australian Dollar		7.9
All other currencies less than 5%		10.8
Total		100.0%

At September 30, 2013, the industry sectors for the International Equity Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.8%
Consumer Staples		11.2
Energy		6.8
Financials		25.8
Health Care		9.9
Industrials		12.9
Information Technology		4.3
Materials		8.2
Telecommunication Services		5.4
Utilities		3.7
Total		100.0%

At September 30, 2013, the International Equity Index Fund had outstanding forward 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)
Japanese Yen		455,014	United States Dollar		4,600		12/18/13		$(31)
United States Dollar		695	Australian Dollar		756		12/18/13		7
United States Dollar		600	Australian Dollar		645		12/18/13		(2)
United States Dollar		6,043	British Pound		3,794		12/18/13		95
United States Dollar		1,600	British Pound		998		12/18/13		15
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		1,000	British Pound		625		12/18/13		$11
United States Dollar		9,055	Euro		6,773		12/18/13		110
United States Dollar		2,200	Euro		1,631		12/18/13		7
United States Dollar		1,400	Euro		1,038		12/18/13		5
United States Dollar		690	Hong Kong Dollar		5,349		12/18/13		–*
United States Dollar		8,180	Japanese Yen		807,407		12/18/13		39
United States Dollar		1,600	Japanese Yen		158,157		12/18/13		10
United States Dollar		230	Singapore Dollar		292		12/18/13		2
United States Dollar		990	Swedish Krona		6,506		12/18/13		20
United States Dollar		1,450	Swiss Franc		1,346		12/18/13		40
United States Dollar		700	Swiss Franc		637		12/18/13		5
Total									$333

* Amount rounds to less than one thousand.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

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 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 September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$163			$384,230			$–		$384,393
Consumer Staples		1,459			369,818			–		371,277
Energy		–			230,524			–		230,524
Financials		1,444			846,965			–		848,409
Health Care		–			333,413			–		333,413
Industrials		267			435,426			–		435,693
Information Technology		–			145,293			–		145,293
Materials		–			274,008			–		274,008
Telecommunication Services		–			183,506			–		183,506
Utilities		–			123,833			–		123,833
Preferred Stocks
Consumer Discretionary		–			13,879			–		13,879
Consumer Staples		–			4,883			–		4,883
Materials		–			793			–		793
Utilities		–			304			–		304
Rights
Financials		–			1,355			–		1,355
Industrials		–			93			–		93
Investment Companies		166,692			–			–		166,692
Total Investments		$170,025			$3,348,323			$–		$3,518,348
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$300			$ –			$–		$300
Forward Foreign Currency Exchange Contracts		–			366			–		366
Liabilities
Futures Contracts		(398	)		–			–		(398	)
Forward Foreign Currency Exchange Contracts		–			(33	)		–		(33	)
Total Other Financial Instruments		$(98	)		$333			$–		$235

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Consumer Discretionary		$155,153	Valuations at last trade with foreign fair value adjustments
Consumer Staples		44,891	Valuations at last trade with foreign fair value adjustments
Energy		8,037	Valuations at last trade with foreign fair value adjustments
Financials		150,284	Valuations at last trade with foreign fair value adjustments
Health Care		41,973	Valuations at last trade with foreign fair value adjustments
Industrials		142,459	Valuations at last trade with foreign fair value adjustments
Information Technology		69,414	Valuations at last trade with foreign fair value adjustments
Materials		45,729	Valuations at last trade with foreign fair value adjustments
Telecommunication Services		37,821	Valuations at last trade with foreign fair value adjustments
Utilities		21,132	Valuations at last trade with foreign fair value adjustments
Total		$716,893

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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9%
Advertising – 0.2%
Lamar Advertising Co., Class A *		52,648		$2,476
Aerospace/Defense – 1.4%
Alliant Techsystems, Inc.		25,739		2,511
B/E Aerospace, Inc. *		79,517		5,870
Esterline Technologies Corp. *		25,330		2,024
Exelis, Inc.		152,077		2,389
Triumph Group, Inc.		41,985		2,948
				15,742
Agriculture – 0.1%
Universal Corp.		18,646		950
Airlines – 0.4%
Alaska Air Group, Inc.		56,396		3,532
JetBlue Airways Corp. *		174,934		1,165
				4,697
Apparel – 1.3%
Carter’s, Inc.		47,841		3,630
Deckers Outdoor Corp. *		27,847		1,836
Hanesbrands, Inc.		79,919		4,980
Under Armour, Inc., Class A *		64,716		5,142
				15,588
Auto Manufacturers – 0.3%
Oshkosh Corp. *		70,253		3,441
Banks – 4.2%
Associated Banc-Corp.		134,206		2,079
BancorpSouth, Inc.		67,574		1,347
Bank of Hawaii Corp.		35,909		1,955
Cathay General Bancorp		59,570		1,392
City National Corp.		38,017		2,534
Commerce Bancshares, Inc.		62,197		2,725
Cullen/Frost Bankers, Inc.		42,302		2,984
East West Bancorp, Inc.		111,122		3,550
First Horizon National Corp.		194,145		2,134
FirstMerit Corp.		133,421		2,897
Fulton Financial Corp.		156,691		1,830
Hancock Holding Co.		66,259		2,079
International Bancshares Corp.		46,023		996
Prosperity Bancshares, Inc.		45,282		2,800
Signature Bank *		38,141		3,491
SVB Financial Group *		36,759		3,175
Synovus Financial Corp.		789,438		2,605
TCF Financial Corp.		132,743		1,896
Trustmark Corp.		54,258		1,389

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Banks – 4.2% – continued
Valley National Bancorp		160,956		$1,602
Webster Financial Corp.		72,862		1,860
Westamerica Bancorporation		21,621		1,075
				48,395
Beverages – 0.7%
Green Mountain Coffee Roasters, Inc. *		105,846		7,973
Biotechnology – 0.9%
Bio-Rad Laboratories, Inc., Class A *		16,199		1,904
Charles River Laboratories International, Inc. *		39,593		1,832
Cubist Pharmaceuticals, Inc. *		53,336		3,389
United Therapeutics Corp. *		37,093		2,925
				10,050
Building Materials – 1.5%
Eagle Materials, Inc.		39,994		2,901
Fortune Brands Home & Security, Inc.		133,960		5,577
Lennox International, Inc.		37,059		2,789
Louisiana-Pacific Corp. *		113,233		1,992
Martin Marietta Materials, Inc.		37,313		3,663
				16,922
Chemicals – 2.6%
Albemarle Corp.		65,689		4,135
Ashland, Inc.		58,068		5,370
Cabot Corp.		48,064		2,053
Cytec Industries, Inc.		29,444		2,396
Intrepid Potash, Inc.		44,857		703
Minerals Technologies, Inc.		27,972		1,381
NewMarket Corp.		9,237		2,659
Olin Corp.		64,732		1,493
RPM International, Inc.		107,181		3,880
Sensient Technologies Corp.		40,371		1,933
Valspar (The) Corp.		65,119		4,131
				30,134
Coal – 0.2%
Alpha Natural Resources, Inc. *		177,948		1,061
Arch Coal, Inc.		171,840		706
				1,767
Commercial Services – 6.2%
Aaron’s, Inc.		61,412		1,701
Alliance Data Systems Corp. *		39,346		8,321
Apollo Group, Inc., Class A *		80,413		1,673
Brink’s (The) Co.		38,563		1,091

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Commercial Services – 6.2% – continued
Convergys Corp.		84,336		$1,581
CoreLogic, Inc. *		77,160		2,087
Corporate Executive Board (The) Co.		27,268		1,980
Deluxe Corp.		40,819		1,701
DeVry, Inc.		45,751		1,398
FTI Consulting, Inc. *		32,877		1,243
Gartner, Inc. *		75,193		4,512
Global Payments, Inc.		60,985		3,115
HMS Holdings Corp. *		70,858		1,524
Leidos Holdings, Inc.		58,783		2,676
Lender Processing Services, Inc.		68,875		2,292
Manpowergroup, Inc.		63,174		4,595
Matthews International Corp., Class A		22,329		850
Monster Worldwide, Inc. *		91,315		404
Rent-A-Center, Inc.		43,203		1,646
Rollins, Inc.		52,289		1,386
RR Donnelley & Sons Co.		146,734		2,318
Science Applications International Corp. *		33,590		1,134
SEI Investments Co.		116,830		3,611
Service Corp. International		170,941		3,183
Sotheby’s		55,177		2,711
Towers Watson & Co., Class A		51,939		5,555
TravelCenters of America LLC - (Fractional Shares) *		80,000		–
United Rentals, Inc. *		75,444		4,398
Valassis Communications, Inc.		30,368		877
WEX, Inc. *		31,353		2,751
				72,314
Computers – 2.8%
3D Systems Corp. *		76,265		4,118
Cadence Design Systems, Inc. *		229,196		3,094
Diebold, Inc.		51,935		1,525
DST Systems, Inc.		24,313		1,833
Jack Henry & Associates, Inc.		68,639		3,542
Lexmark International, Inc., Class A		50,812		1,677
Mentor Graphics Corp.		77,708		1,816
MICROS Systems, Inc. *		61,844		3,088
NCR Corp. *		133,949		5,306
Riverbed Technology, Inc. *		132,568		1,934
Synopsys, Inc.*		124,637		4,699
				32,632
Distribution/Wholesale – 1.6%
Arrow Electronics, Inc. *		80,857		3,924
Ingram Micro, Inc., Class A*		123,277		2,842

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Distribution/Wholesale – 1.6% – continued
LKQ Corp. *		242,254		$7,718
Owens & Minor, Inc.		51,032		1,765
Watsco, Inc.		21,719		2,047
				18,296
Diversified Financial Services – 2.3%
Affiliated Managers Group, Inc. *		42,655		7,791
CBOE Holdings, Inc.		70,774		3,201
Eaton Vance Corp.		97,885		3,801
Federated Investors, Inc., Class B		76,344		2,074
Greenhill & Co., Inc.		21,194		1,057
Janus Capital Group, Inc.		120,724		1,027
Raymond James Financial, Inc.		99,327		4,139
Waddell & Reed Financial, Inc., Class A		69,138		3,559
				26,649
Electric – 3.3%
Alliant Energy Corp.		89,474		4,433
Black Hills Corp.		36,115		1,801
Cleco Corp.		48,900		2,193
Great Plains Energy, Inc.		123,975		2,752
Hawaiian Electric Industries, Inc.		79,912		2,006
IDACORP, Inc.		40,733		1,972
MDU Resources Group, Inc.		152,370		4,262
National Fuel Gas Co.		67,486		4,640
NV Energy, Inc.		190,172		4,490
OGE Energy Corp.		160,020		5,775
PNM Resources, Inc.		64,139		1,451
Westar Energy, Inc.		102,421		3,139
				38,914
Electrical Components & Equipment – 1.2%
Acuity Brands, Inc.		34,564		3,181
Energizer Holdings, Inc.		50,256		4,581
General Cable Corp.		40,311		1,280
Hubbell, Inc., Class B		43,561		4,562
				13,604
Electronics – 2.4%
Avnet, Inc.		110,696		4,617
Gentex Corp.		116,430		2,979
Itron, Inc. *		31,274		1,339
Mettler-Toledo International, Inc. *		24,168		5,803
National Instruments Corp.		78,565		2,430
Tech Data Corp. *		30,468		1,521
Trimble Navigation Ltd. *		207,204		6,156
Vishay Intertechnology, Inc. *		106,596		1,374

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 65 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Electronics – 2.4% – continued
Woodward, Inc.		48,857		$1,995
				28,214
Engineering & Construction – 0.9%
AECOM Technology Corp. *		81,361		2,544
Granite Construction, Inc.		29,053		889
KBR, Inc.		119,468		3,899
URS Corp.		60,255		3,239
				10,571
Entertainment – 0.7%
Bally Technologies, Inc. *		31,392		2,262
Cinemark Holdings, Inc.		83,792		2,659
DreamWorks Animation SKG, Inc., Class A *		57,690		1,642
International Speedway Corp., Class A		22,496		727
Scientific Games Corp., Class A *		39,130		633
				7,923
Environmental Control – 0.7%
Clean Harbors, Inc. *		44,511		2,611
Mine Safety Appliances Co.		25,477		1,315
Waste Connections, Inc.		99,643		4,525
				8,451
Food – 2.0%
Dean Foods Co. *		75,817		1,463
Flowers Foods, Inc.		141,200		3,027
Harris Teeter Supermarkets, Inc.		39,923		1,964
Hillshire Brands Co.		99,325		3,053
Ingredion, Inc.		62,577		4,141
Lancaster Colony Corp.		15,656		1,226
Post Holdings, Inc. *		26,382		1,065
SUPERVALU, Inc. *		158,670		1,306
Tootsie Roll Industries, Inc.		16,558		510
United Natural Foods, Inc. *		39,799		2,675
WhiteWave Foods Co., Class A *		139,686		2,790
				23,220
Forest Products & Paper – 0.2%
Domtar Corp.		26,345		2,092
Gas – 1.2%
Atmos Energy Corp.		73,151		3,115
Questar Corp.		141,369		3,179
UGI Corp.		92,071		3,603
Vectren Corp.		66,466		2,217

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Gas – 1.2% – continued
WGL Holdings, Inc.		41,725		$1,782
				13,896
Hand/Machine Tools – 0.8%
Kennametal, Inc.		62,914		2,869
Lincoln Electric Holdings, Inc.		66,412		4,425
Regal-Beloit Corp.		36,366		2,470
				9,764
Healthcare – Products – 3.3%
Cooper (The) Cos., Inc.		39,506		5,124
Henry Schein, Inc. *		69,798		7,238
Hill-Rom Holdings, Inc.		47,094		1,687
Hologic, Inc. *		218,267		4,507
IDEXX Laboratories, Inc. *		42,409		4,226
Masimo Corp.		41,587		1,108
ResMed, Inc.		114,653		6,056
STERIS Corp.		47,755		2,052
Techne Corp.		26,757		2,142
Teleflex, Inc.		33,194		2,731
Thoratec Corp. *		46,431		1,731
				38,602
Healthcare – Services – 2.2%
Community Health Systems, Inc.		76,508		3,175
Covance, Inc. *		45,109		3,900
Health Management Associates, Inc., Class A *		210,020		2,688
Health Net, Inc. *		64,266		2,037
LifePoint Hospitals, Inc. *		38,350		1,788
MEDNAX, Inc. *		40,850		4,102
Universal Health Services, Inc., Class B		72,107		5,408
WellCare Health Plans, Inc. *		35,146		2,451
				25,549
Home Builders – 1.0%
KB Home		66,925		1,206
MDC Holdings, Inc.		31,745		953
NVR, Inc. *		3,439		3,161
Thor Industries, Inc.		35,955		2,087
Toll Brothers, Inc. *		122,662		3,978
				11,385
Home Furnishings – 0.2%
Tempur Sealy International, Inc. *		48,898		2,150
Household Products/Wares – 1.4%
Church & Dwight Co., Inc.		111,838		6,716

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 66 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Household Products/Wares – 1.4% – continued
Jarden Corp. *		95,423		$4,619
Scotts Miracle-Gro (The) Co., Class A		35,455		1,951
Tupperware Brands Corp.		41,731		3,604
				16,890
Insurance – 4.8%
Alleghany Corp. *		13,578		5,562
American Financial Group, Inc.		57,417		3,104
Arthur J Gallagher & Co.		103,049		4,498
Aspen Insurance Holdings Ltd.		54,549		1,980
Brown & Brown, Inc.		95,869		3,077
Everest Re Group Ltd.		39,247		5,707
Fidelity National Financial, Inc., Class A		174,334		4,637
First American Financial Corp.		86,693		2,111
Hanover Insurance Group (The), Inc.		35,334		1,955
HCC Insurance Holdings, Inc.		80,749		3,538
Kemper Corp.		42,200		1,418
Mercury General Corp.		29,446		1,423
Old Republic International Corp.		194,876		3,001
Primerica, Inc.		44,108		1,779
Protective Life Corp.		63,323		2,694
Reinsurance Group of America, Inc.		57,286		3,838
StanCorp Financial Group, Inc.		35,926		1,977
WR Berkley Corp.		88,444		3,791
				56,090
Internet – 1.6%
AOL, Inc. *		61,996		2,144
Equinix, Inc. *		39,833		7,315
Rackspace Hosting, Inc. *		91,949		4,851
TIBCO Software, Inc. *		123,298		3,155
ValueClick, Inc. *		56,667		1,182
				18,647
Investment Companies – 0.1%
Apollo Investment Corp.		181,283		1,477
Iron/Steel – 1.0%
Carpenter Technology Corp.		42,670		2,479
Commercial Metals Co.		94,339		1,599
Reliance Steel & Aluminum Co.		62,127		4,552
Steel Dynamics, Inc.		178,144		2,977
				11,607
Leisure Time – 0.8%
Life Time Fitness, Inc. *		31,621		1,628
Polaris Industries, Inc.		51,698		6,678

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Leisure Time – 0.8% – continued
WMS Industries, Inc. *		44,629		$1,158
				9,464
Machinery – Construction & Mining – 0.3%
Terex Corp. *		89,826		3,018
Machinery – Diversified – 1.9%
AGCO Corp.		73,067		4,415
Graco, Inc.		49,516		3,667
IDEX Corp.		65,979		4,305
Nordson Corp.		48,722		3,588
Wabtec Corp.		77,700		4,885
Zebra Technologies Corp., Class A *		40,945		1,864
				22,724
Media – 1.0%
AMC Networks, Inc., Class A *		47,836		3,276
FactSet Research Systems, Inc.		32,546		3,551
John Wiley & Sons, Inc., Class A		37,397		1,784
Meredith Corp.		29,868		1,422
New York Times (The) Co., Class A *		101,306		1,273
Scholastic Corp.		20,427		585
				11,891
Metal Fabrication/Hardware – 0.7%
Timken Co.		64,411		3,890
Valmont Industries, Inc.		21,608		3,002
Worthington Industries, Inc.		42,873		1,476
				8,368
Mining – 0.4%
Compass Minerals International, Inc.		26,999		2,059
Royal Gold, Inc.		52,492		2,555
				4,614
Miscellaneous Manufacturing – 2.2%
Aptargroup, Inc.		53,631		3,225
Carlisle Cos., Inc.		51,486		3,619
CLARCOR, Inc.		40,244		2,235
Crane Co.		39,360		2,427
Donaldson Co., Inc.		109,120		4,161
Harsco Corp.		65,088		1,620
ITT Corp.		72,878		2,620
SPX Corp.		36,590		3,097
Trinity Industries, Inc.		63,398		2,875
				25,879

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 67 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Office Furnishings – 0.2%
Herman Miller, Inc.		47,396		$1,383
HNI Corp.		36,518		1,321
				2,704
Oil & Gas – 2.9%
Atwood Oceanics, Inc. *		46,461		2,557
Bill Barrett Corp. *		39,119		982
Cimarex Energy Co.		69,821		6,731
Energen Corp.		58,295		4,453
HollyFrontier Corp.		161,222		6,789
Murphy USA, Inc. *		35,539		1,436
Patterson-UTI Energy, Inc.		118,906		2,542
Rosetta Resources, Inc. *		49,348		2,688
SM Energy Co.		54,025		4,170
Unit Corp. *		35,384		1,645
				33,993
Oil & Gas Services – 2.2%
CARBO Ceramics, Inc.		16,020		1,588
Dresser-Rand Group, Inc. *		61,554		3,841
Dril-Quip, Inc. *		32,759		3,759
Helix Energy Solutions Group, Inc. *		79,351		2,013
Oceaneering International, Inc.		87,324		7,094
Oil States International, Inc. *		44,517		4,606
Superior Energy Services, Inc. *		128,766		3,224
				26,125
Packaging & Containers – 1.4%
Greif, Inc., Class A		24,710		1,212
Packaging Corp. of America		79,342		4,530
Rock Tenn Co., Class A		58,086		5,882
Silgan Holdings, Inc.		35,282		1,658
Sonoco Products Co.		80,709		3,143
				16,425
Pharmaceuticals – 1.4%
Endo Health Solutions, Inc. *		92,181		4,188
Mallinckrodt PLC *		46,512		2,051
Omnicare, Inc.		83,532		4,636
Salix Pharmaceuticals Ltd. *		49,775		3,329
VCA Antech, Inc. *		71,804		1,972
				16,176
Real Estate – 0.4%
Alexander & Baldwin, Inc. *		34,874		1,256
Jones Lang LaSalle, Inc.		35,858		3,131
				4,387

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Real Estate Investment Trusts – 8.7%
Alexandria Real Estate Equities, Inc.		57,659		$3,682
American Campus Communities, Inc.		84,566		2,888
BioMed Realty Trust, Inc.		155,085		2,883
BRE Properties, Inc.		62,278		3,161
Camden Property Trust		68,823		4,228
Corporate Office Properties Trust		70,458		1,628
Corrections Corp. of America		93,381		3,226
Duke Realty Corp.		262,314		4,050
Equity One, Inc.		50,950		1,114
Essex Property Trust, Inc.		30,698		4,534
Extra Space Storage, Inc.		85,614		3,917
Federal Realty Investment Trust		53,030		5,380
Highwoods Properties, Inc.		72,504		2,560
Home Properties, Inc.		45,910		2,651
Hospitality Properties Trust		112,746		3,191
Kilroy Realty Corp.		65,550		3,274
Liberty Property Trust		115,294		4,104
Mack-Cali Realty Corp.		71,008		1,558
National Retail Properties, Inc.		97,797		3,112
Omega Healthcare Investors, Inc.		94,542		2,824
Potlatch Corp.		32,759		1,300
Rayonier, Inc.		101,806		5,665
Rayonier, Inc. – (Fractional Shares) *		50,000		–
Realty Income Corp.		158,322		6,293
Regency Centers Corp.		74,470		3,601
Senior Housing Properties Trust		151,801		3,543
SL Green Realty Corp.		74,241		6,596
Taubman Centers, Inc.		51,525		3,468
UDR, Inc.		202,396		4,797
Weingarten Realty Investors		90,512		2,655
				101,883
Retail – 6.1%
Advance Auto Parts, Inc.		58,837		4,865
Aeropostale, Inc. *		62,933		592
American Eagle Outfitters, Inc.		136,944		1,916
ANN, Inc. *		37,047		1,342
Ascena Retail Group, Inc. *		102,066		2,034
Big Lots, Inc. *		47,067		1,746
Bob Evans Farms, Inc.		21,971		1,258
Brinker International, Inc.		53,468		2,167
Cabela’s, Inc. *		37,604		2,370
Cheesecake Factory (The), Inc.		40,068		1,761
Chico’s FAS, Inc.		129,306		2,154
Copart, Inc. *		90,113		2,865

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 68 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Retail – 6.1% – continued
CST Brands, Inc.		48,844		$1,456
Dick’s Sporting Goods, Inc.		82,094		4,382
Domino’s Pizza, Inc.		44,879		3,049
Foot Locker, Inc.		119,580		4,059
Guess?, Inc.		47,737		1,425
HSN, Inc.		27,054		1,451
MSC Industrial Direct Co., Inc., Class A		38,881		3,163
Office Depot, Inc. *		193,627		935
Panera Bread Co., Class A *		22,623		3,586
Regis Corp.		35,060		515
Saks, Inc. *		82,445		1,314
Signet Jewelers Ltd.		65,024		4,659
Tractor Supply Co.		112,718		7,571
Wendy’s (The) Co.		228,565		1,938
Williams-Sonoma, Inc.		71,878		4,039
World Fuel Services Corp.		58,754		2,192
				70,804
Savings & Loans – 0.9%
Astoria Financial Corp.		67,493		839
First Niagara Financial Group, Inc.		285,697		2,963
New York Community Bancorp, Inc.		355,910		5,378
Washington Federal, Inc.		83,333		1,723
				10,903
Semiconductors – 2.3%
Advanced Micro Devices, Inc. *		493,939		1,877
Atmel Corp. *		345,699		2,572
Cree, Inc. *		96,937		5,835
Cypress Semiconductor Corp. *		110,804		1,035
Fairchild Semiconductor International, Inc. *		102,984		1,431
Integrated Device Technology, Inc. *		110,017		1,036
International Rectifier Corp. *		57,095		1,414
Intersil Corp., Class A		103,016		1,157
Rovi Corp. *		81,492		1,562
Semtech Corp. *		54,921		1,647
Silicon Laboratories, Inc. *		31,710		1,354
Skyworks Solutions, Inc. *		151,382		3,760
SunEdison, Inc. *		194,489		1,550
				26,230
Shipbuilding – 0.2%
Huntington Ingalls Industries, Inc.		40,099		2,703
Software – 3.8%
ACI Worldwide, Inc. *		31,977		1,729

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Software – 3.8% – continued
Acxiom Corp. *		59,744		$1,696
Advent Software, Inc.		33,308		1,057
Allscripts Healthcare Solutions, Inc. *		127,882		1,902
ANSYS, Inc. *		74,605		6,455
Broadridge Financial Solutions, Inc.		95,779		3,041
CommVault Systems, Inc. *		35,454		3,114
Compuware Corp.		173,238		1,940
Concur Technologies, Inc. *		37,987		4,198
Fair Isaac Corp.		28,359		1,568
Informatica Corp. *		87,351		3,404
ManTech International Corp., Class A		19,475		560
MSCI, Inc. *		97,624		3,930
PTC, Inc. *		96,514		2,744
SolarWinds, Inc. *		52,953		1,857
Solera Holdings, Inc.		55,523		2,935
VeriFone Systems, Inc. *		88,165		2,015
				44,145
Telecommunications – 1.5%
ADTRAN, Inc.		46,945		1,251
Ciena Corp. *		83,248		2,080
InterDigital, Inc.		33,276		1,242
NeuStar, Inc., Class A *		51,748		2,560
Plantronics, Inc.		35,381		1,629
Polycom, Inc. *		136,584		1,492
RF Micro Devices, Inc. *		227,177		1,281
Telephone & Data Systems, Inc.		79,728		2,356
tw telecom, Inc. *		117,589		3,512
				17,403
Textiles – 0.5%
Mohawk Industries, Inc. *		49,156		6,403
Transportation – 1.9%
Con-way, Inc.		45,586		1,964
Genesee & Wyoming, Inc., Class A *		34,480		3,206
JB Hunt Transport Services, Inc.		73,702		5,375
Kirby Corp. *		45,849		3,968
Landstar System, Inc.		36,852		2,063
Matson, Inc.		34,240		898
Tidewater, Inc.		39,986		2,371
UTi Worldwide, Inc.		73,543		1,111
Werner Enterprises, Inc.		37,113		866
				21,822

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 69 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.9% – continued
Trucking & Leasing – 0.2%
GATX Corp.		37,245		$1,770
Water – 0.3%
Aqua America, Inc.		142,385		3,521
Total Common Stocks
(Cost $863,841)				1,140,427
INVESTMENT COMPANIES – 2.3%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		26,480,557		26,480
Total Investment Companies
(Cost $26,480)				26,480

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.2%
U.S. Treasury Bill, 0.08%, 10/17/13 (3)		$2,115		$2,115
Total Short-Term Investments
(Cost $2,115)				2,115
Total Investments – 100.4%
(Cost $892,436)				1,169,022
Liabilities less Other Assets – (0.4)%				(4,079	)
NET ASSETS – 100.0%				$1,164,943

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $27,001,000 with net sales of approximately $521,000 during the six months ended September 30, 2013.

(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 September 30, 2013, 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		200		$24,812		Long		12/13		$339

At September 30, 2013, the industry sectors for the Mid Cap Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		14.1%
Consumer Staples		3.8
Energy		5.7
Financials		22.6
Health Care		8.9
Industrials		16.2
Information Technology		16.3
Materials		7.0
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013.

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$1,140,427	(1)		$–		$–		$1,140,427
Investment Companies		26,480			–		–		26,480
Short-Term Investments		–			2,115		–		2,115
Total Investments		$1,166,907			$2,115		$–		$1,169,022
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$339			$–		$–		$339

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

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 70 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 71 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6%
Advertising – 0.1%
Harte-Hanks, Inc.		24,170		$213
Marchex, Inc., Class B		12,064		88
Marin Software, Inc. *		5,161		65
MDC Partners, Inc., Class A		13,973		391
Millennial Media, Inc. *		19,843		140
ValueVision Media, Inc., Class A *		22,100		96
				993
Aerospace/Defense – 1.4%
AAR Corp.		21,934		599
Aerovironment, Inc. *		10,409		240
API Technologies Corp. *		19,610		57
Astronics Corp. *		6,960		346
Cubic Corp.		10,958		588
Curtiss-Wright Corp.		26,047		1,223
Ducommun, Inc. *		5,956		171
Erickson Air-Crane, Inc. *		2,118		33
Esterline Technologies Corp. *		17,380		1,388
GenCorp, Inc. *		33,656		540
HEICO Corp.		29,547		2,002
Innovative Solutions & Support, Inc.		7,070		56
Kaman Corp.		14,976		567
Kratos Defense & Security Solutions, Inc. *		24,706		205
LMI Aerospace, Inc. *		5,829		78
M/A-COM Technology Solutions Holdings, Inc. *		5,957		101
Moog, Inc., Class A *		25,157		1,476
National Presto Industries, Inc.		2,606		184
Orbital Sciences Corp. *		33,459		709
Teledyne Technologies, Inc. *		20,729		1,761
				12,324
Agriculture – 0.3%
Alico, Inc.		1,631		67
Alliance One International, Inc. *		48,533		141
Andersons (The), Inc.		10,346		723
Griffin Land & Nurseries, Inc.		1,373		44
Limoneira Co.		5,391		139
Tejon Ranch Co. *		7,597		235
Universal Corp.		12,904		657
Vector Group Ltd.		35,037		564
				2,570
Airlines – 0.7%
Allegiant Travel Co.		8,333		878
Hawaiian Holdings, Inc. *		29,379		219

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Airlines – 0.7% – continued
JetBlue Airways Corp. *		128,769		$858
Republic Airways Holdings, Inc. *		27,151		323
SkyWest, Inc.		29,093		422
Spirit Airlines, Inc. *		33,543		1,149
US Airways Group, Inc. *		106,812		2,025
				5,874
Apparel – 1.0%
American Apparel, Inc. *		32,524		42
Columbia Sportswear Co.		7,066		426
Crocs, Inc. *		48,733		663
G-III Apparel Group Ltd. *		9,327		509
Iconix Brand Group, Inc. *		31,768		1,055
Jones Group (The), Inc.		44,249		664
Maidenform Brands, Inc. *		13,016		306
Oxford Industries, Inc.		7,542		513
Perry Ellis International, Inc.		7,016		132
Quiksilver, Inc. *		73,805		519
R.G. Barry Corp.		5,622		106
Skechers U.S.A., Inc., Class A *		21,514		669
Steven Madden Ltd. *		22,309		1,201
Unifi, Inc. *		8,491		199
Weyco Group, Inc.		3,520		100
Wolverine World Wide, Inc.		27,927		1,626
				8,730
Auto Manufacturers – 0.1%
Wabash National Corp. *		38,042		444
Auto Parts & Equipment – 1.1%
Accuride Corp. *		22,520		116
American Axle & Manufacturing Holdings, Inc. *		37,611		742
Commercial Vehicle Group, Inc. *		12,971		103
Cooper Tire & Rubber Co.		35,227		1,085
Dana Holding Corp.		81,728		1,867
Dorman Products, Inc.		13,967		692
Douglas Dynamics, Inc.		12,076		178
Federal-Mogul Corp. *		10,155		171
Fuel Systems Solutions, Inc. *		7,593		149
Gentherm, Inc. *		18,763		358
Meritor, Inc. *		54,735		430
Miller Industries, Inc.		6,287		107
Modine Manufacturing Co. *		26,070		381
Remy International, Inc.		7,853		159
Spartan Motors, Inc.		18,634		113

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 72 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Auto Parts & Equipment – 1.1% – continued
Standard Motor Products, Inc.		11,183		$360
Superior Industries International, Inc.		13,053		233
Tenneco, Inc. *		33,844		1,709
Titan International, Inc.		29,605		433
Tower International, Inc. *		3,269		65
				9,451
Banks – 6.7%
1st Source Corp.		8,599		231
1st United Bancorp, Inc.		17,547		129
Access National Corp.		4,268		61
American National Bankshares, Inc.		4,418		102
Ameris Bancorp *		13,619		250
Ames National Corp.		5,234		119
Arrow Financial Corp.		5,891		150
Bancfirst Corp.		3,892		210
Banco Latinoamericano de Comercio Exterior S.A., Class E		16,217		404
Bancorp (The), Inc. *		18,651		330
BancorpSouth, Inc.		52,856		1,054
Bank of Kentucky Financial Corp.		3,445		94
Bank of Marin Bancorp		3,106		129
Bank of the Ozarks, Inc.		17,255		828
Banner Corp.		10,733		410
Bar Harbor Bankshares		2,199		81
BBCN Bancorp, Inc.		44,223		609
BNC Bancorp		10,294		137
Boston Private Financial Holdings, Inc.		44,401		493
Bridge Bancorp, Inc.		5,171		111
Bridge Capital Holdings *		5,415		92
Bryn Mawr Bank Corp.		7,584		205
C&F Financial Corp.		1,769		86
Camden National Corp.		4,285		175
Capital Bank Financial Corp., Class A *		13,932		306
Capital City Bank Group, Inc. *		7,008		83
Cardinal Financial Corp.		17,147		283
Cascade Bancorp *		4,235		25
Cass Information Systems, Inc.		5,683		303
Cathay General Bancorp		43,671		1,021
Center Bancorp, Inc.		6,602		94
Centerstate Banks, Inc.		16,431		159
Central Pacific Financial Corp.		11,820		209
Century Bancorp, Inc., Class A		1,978		66
Chemical Financial Corp.		15,460		432
Chemung Financial Corp.		2,021		70

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Banks – 6.7% – continued
Citizens & Northern Corp.		6,705		$134
City Holding Co.		8,749		378
CNB Financial Corp.		7,119		121
CoBiz Financial, Inc.		19,289		186
Columbia Banking System, Inc.		28,344		700
Community Bank System, Inc.		22,187		757
Community Trust Bancorp, Inc.		7,747		314
CommunityOne Bancorp *		6,037		60
ConnectOne Bancorp, Inc. *		957		34
CU Bancorp *		5,272		96
Customers Bancorp, Inc. *		11,216		181
CVB Financial Corp.		50,828		687
Eagle Bancorp, Inc. *		12,573		356
Enterprise Bancorp, Inc.		4,067		77
Enterprise Financial Services Corp.		10,327		173
Farmers Capital Bank Corp. *		4,191		92
Fidelity Southern Corp.		5,809		89
Financial Institutions, Inc.		7,573		155
First BanCorp *		40,134		228
First Bancorp		11,051		160
First Bancorp, Inc.		5,359		90
First Busey Corp.		40,711		212
First Commonwealth Financial Corp.		54,789		416
First Community Bancshares, Inc.		10,041		164
First Connecticut Bancorp, Inc.		9,200		135
First Financial Bancorp		31,809		483
First Financial Bankshares, Inc.		17,494		1,029
First Financial Corp.		6,258		198
First Financial Holdings, Inc.		13,395		739
First Interstate Bancsystem, Inc.		9,917		239
First Merchants Corp.		15,862		275
First Midwest Bancorp, Inc.		41,781		631
First NBC Bank Holding Co. *		2,340		57
First of Long Island (The) Corp.		4,299		167
First Security Group, Inc. *		35,095		73
FirstMerit Corp.		92,347		2,005
FNB Corp.		80,550		977
Franklin Financial Corp.		6,047		115
German American Bancorp, Inc.		7,072		178
Glacier Bancorp, Inc.		39,958		987
Great Southern Bancorp, Inc.		5,653		160
Guaranty Bancorp		8,270		113
Hampton Roads Bankshares, Inc. *		18,964		27
Hancock Holding Co.		47,216		1,482

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 73 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Banks – 6.7% – continued
Hanmi Financial Corp.		17,792		$295
Heartland Financial USA, Inc.		8,271		230
Heritage Commerce Corp.		12,390		95
Heritage Financial Corp.		8,188		127
Heritage Oaks Bancorp *		11,307		72
Home BancShares, Inc.		25,049		761
Horizon Bancorp		4,875		114
Hudson Valley Holding Corp.		9,126		171
Iberiabank Corp.		16,512		856
Independent Bank Corp.		12,513		447
Independent Bank Group, Inc.		2,129		77
International Bancshares Corp.		29,437		637
Intervest Bancshares Corp. *		10,050		80
Lakeland Bancorp, Inc.		17,177		193
Lakeland Financial Corp.		9,085		297
LCNB Corp.		3,405		67
Macatawa Bank Corp. *		13,332		72
MainSource Financial Group, Inc.		11,328		172
MB Financial, Inc.		30,526		862
Mercantile Bank Corp.		4,773		104
Merchants Bancshares, Inc.		3,145		91
Metro Bancorp, Inc. *		7,938		167
MetroCorp Bancshares, Inc.		8,945		123
Middleburg Financial Corp.		3,126		60
MidSouth Bancorp, Inc.		4,735		73
MidWestOne Financial Group, Inc.		3,789		97
National Bankshares, Inc.		3,928		141
National Penn Bancshares, Inc.		64,770		651
NBT Bancorp, Inc.		24,024		552
NewBridge Bancorp *		14,189		103
Northrim BanCorp, Inc.		3,533		85
OFG Bancorp		25,490		413
Old National Bancorp		56,049		796
OmniAmerican Bancorp, Inc. *		6,494		159
Pacific Continental Corp.		9,647		126
PacWest Bancorp		21,300		732
Palmetto Bancshares, Inc. *		2,505		33
Park National Corp.		6,449		510
Park Sterling Corp.		24,326		156
Peapack Gladstone Financial Corp.		5,050		94
Penns Woods Bancorp, Inc.		2,274		113
Peoples Bancorp, Inc.		6,084		127
Pinnacle Financial Partners, Inc. *		19,582		584
Preferred Bank *		6,545		116

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Banks – 6.7% – continued
PrivateBancorp, Inc.		35,932		$769
Prosperity Bancshares, Inc.		33,650		2,081
Renasant Corp.		16,853		458
Republic Bancorp, Inc., Class A		5,428		150
S&T Bancorp, Inc.		16,417		398
S.Y. Bancorp, Inc.		7,841		222
Sandy Spring Bancorp, Inc.		13,898		323
Seacoast Banking Corp. of Florida *		42,760		93
Sierra Bancorp		6,679		105
Simmons First National Corp., Class A		9,257		288
Southside Bancshares, Inc.		9,959		267
Southwest Bancorp, Inc. *		10,933		162
State Bank Financial Corp.		17,839		283
StellarOne Corp.		12,762		287
Sterling Bancorp		16,884		232
Sterling Financial Corp.		19,082		547
Suffolk Bancorp *		6,494		115
Sun Bancorp, Inc. *		22,477		86
Susquehanna Bancshares, Inc.		103,676		1,301
Taylor Capital Group, Inc. *		9,710		215
Texas Capital Bancshares, Inc. *		22,675		1,042
Tompkins Financial Corp.		8,119		375
TowneBank		14,789		213
Trico Bancshares		8,932		203
Tristate Capital Holdings, Inc. *		3,682		47
TrustCo Bank Corp. NY		52,994		316
Trustmark Corp.		37,165		951
UMB Financial Corp.		19,833		1,078
Umpqua Holdings Corp.		62,057		1,007
Union First Market Bankshares Corp.		11,270		263
United Bankshares, Inc.		28,110		815
United Community Banks, Inc. *		23,894		358
Univest Corp. of Pennsylvania		9,374		177
VantageSouth Bancshares, Inc. *		6,766		36
ViewPoint Financial Group, Inc.		22,444		464
Virginia Commerce Bancorp, Inc. *		15,109		235
Walker & Dunlop, Inc. *		9,249		147
Washington Banking Co.		8,701		122
Washington Trust Bancorp, Inc.		8,048		253
Webster Financial Corp.		50,212		1,282
WesBanco, Inc.		14,481		431
West Bancorporation, Inc.		8,769		121
Westamerica Bancorporation		14,942		743
Western Alliance Bancorp *		41,266		781

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 74 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Banks – 6.7% – continued
Wilshire Bancorp, Inc.		35,165		$288
Wintrust Financial Corp.		20,554		844
Yadkin Financial Corp. *		8,074		139
				58,415
Beverages – 0.2%
Boston Beer (The) Co., Inc., Class A *		4,590		1,121
Coca-Cola Bottling Co. Consolidated		2,560		160
Craft Brew Alliance, Inc. *		5,462		74
Farmer Bros. Co. *		3,008		45
National Beverage Corp.		6,392		114
				1,514
Biotechnology – 2.7%
Acceleron Pharma, Inc. *		721		16
Acorda Therapeutics, Inc. *		22,677		777
Aegerion Pharmaceuticals, Inc. *		16,055		1,376
Alnylam Pharmaceuticals, Inc. *		32,370		2,072
AMAG Pharmaceuticals, Inc. *		12,078		259
Arena Pharmaceuticals, Inc. *		121,094		638
Arqule, Inc. *		32,735		76
Astex Pharmaceuticals, Inc. *		52,843		448
BIND Therapeutics, Inc. *		609		9
Biotime, Inc. *		21,971		84
Bluebird Bio, Inc. *		3,798		102
Cambrex Corp. *		16,756		221
Cell Therapeutics, Inc. *		63,327		104
Celldex Therapeutics, Inc. *		45,111		1,598
Cellular Dynamics International, Inc. *		2,138		39
Chelsea Therapeutics International Ltd. *		37,704		114
Coronado Biosciences, Inc. *		12,667		89
Curis, Inc. *		44,470		198
Cytokinetics, Inc. *		13,923		106
Dendreon Corp. *		87,573		257
Dynavax Technologies Corp. *		103,598		124
Emergent Biosolutions, Inc. *		15,462		295
Enzon Pharmaceuticals, Inc.		21,906		37
Epizyme, Inc. *		3,321		133
Exact Sciences Corp. *		39,501		467
Exelixis, Inc. *		103,948		605
Fibrocell Science, Inc. *		9,475		42
Foundation Medicine, Inc. *		39		2
Galena Biopharma, Inc. *		46,903		106
Geron Corp. *		70,733		237
GTx, Inc. *		14,006		28

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Biotechnology – 2.7% – continued
Halozyme Therapeutics, Inc. *		50,104		$553
Harvard Bioscience, Inc. *		14,819		78
ImmunoGen, Inc. *		47,219		804
Immunomedics, Inc. *		41,264		255
Insmed, Inc. *		19,232		300
Intercept Pharmaceuticals, Inc. *		3,528		244
InterMune, Inc. *		45,485		699
Intrexon Corp. *		6,394		151
KYTHERA Biopharmaceuticals, Inc. *		5,731		262
Lexicon Pharmaceuticals, Inc. *		127,752		303
Ligand Pharmaceuticals, Inc., Class B *		9,968		431
Marrone Bio Innovations, Inc. *		3,037		51
Medicines (The) Co. *		35,118		1,177
MEI Pharma, Inc. *		5,400		61
Merrimack Pharmaceuticals, Inc. *		51,074		194
Momenta Pharmaceuticals, Inc. *		26,809		386
Nanosphere, Inc. *		23,599		47
NeoGenomics, Inc. *		18,484		55
NewLink Genetics Corp. *		9,491		178
Novavax, Inc. *		76,068		240
NPS Pharmaceuticals, Inc. *		55,919		1,779
Omeros Corp. *		16,772		164
OncoGenex Pharmaceutical, Inc. *		8,113		75
OncoMed Pharmaceuticals, Inc. *		2,614		40
Onconova Therapeutics, Inc. *		3,303		87
OvaScience, Inc. *		5,038		50
Pacific Biosciences of California, Inc. *		25,820		143
PDL BioPharma, Inc.		78,749		628
Peregrine Pharmaceuticals, Inc. *		77,063		109
Prothena Corp. PLC *		6,673		135
PTC Therapeutics, Inc. *		5,343		115
Puma Biotechnology, Inc. *		12,447		668
Repligen Corp. *		17,838		198
Rigel Pharmaceuticals, Inc. *		47,803		171
RTI Surgical, Inc. *		30,454		114
Sangamo Biosciences, Inc. *		33,908		355
Sequenom, Inc. *		64,012		171
Spectrum Pharmaceuticals, Inc.		34,298		288
Stemline Therapeutics, Inc. *		5,142		233
Sunesis Pharmaceuticals, Inc. *		17,403		86
Verastem, Inc. *		8,110		101
Vical, Inc. *		43,759		55
XOMA Corp. *		35,179		158

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 75 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Biotechnology – 2.7% – continued
ZIOPHARM Oncology, Inc. *		37,769		$149
				23,200
Building Materials – 1.1%
AAON, Inc.		15,455		410
Apogee Enterprises, Inc.		16,148		479
Boise Cascade Co. *		6,825		184
Builders FirstSource, Inc. *		24,924		147
Comfort Systems USA, Inc.		20,627		347
Drew Industries, Inc.		12,850		585
Gibraltar Industries, Inc. *		17,125		244
Griffon Corp.		24,770		311
Headwaters, Inc. *		41,283		371
Louisiana-Pacific Corp. *		77,521		1,364
LSI Industries, Inc.		12,126		102
NCI Building Systems, Inc. *		11,662		149
Nortek, Inc. *		4,921		338
Patrick Industries, Inc. *		3,755		113
PGT, Inc. *		18,660		185
Ply Gem Holdings, Inc. *		8,892		124
Quanex Building Products Corp.		20,891		393
Simpson Manufacturing Co., Inc.		22,628		737
Stock Building Supply Holdings, Inc. *		4,475		59
Texas Industries, Inc. *		12,067		800
Trex Co., Inc. *		9,665		479
Universal Forest Products, Inc.		11,169		470
US Concrete, Inc. *		7,557		152
USG Corp. *		42,614		1,218
				9,761
Chemicals – 2.0%
A. Schulman, Inc.		16,302		480
Aceto Corp.		15,518		242
American Pacific Corp. *		3,317		182
American Vanguard Corp.		15,829		426
Axiall Corp.		38,818		1,467
Balchem Corp.		16,564		857
Chemtura Corp. *		54,726		1,258
Ferro Corp. *		40,689		371
H.B. Fuller Co.		27,918		1,262
Hawkins, Inc.		5,310		200
Innophos Holdings, Inc.		12,105		639
Innospec, Inc.		13,051		609
Intrepid Potash, Inc.		30,744		482
KMG Chemicals, Inc.		4,736		104

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Chemicals – 2.0% – continued
Kraton Performance Polymers, Inc. *		18,232		$357
Landec Corp. *		14,489		177
Minerals Technologies, Inc.		19,310		953
Oil-Dri Corp. of America		2,773		94
Olin Corp.		44,676		1,031
OM Group, Inc. *		17,629		596
OMNOVA Solutions, Inc. *		26,646		228
Penford Corp. *		5,394		77
PolyOne Corp.		55,329		1,699
Quaker Chemical Corp.		7,344		536
Rentech, Inc.		124,337		246
Sensient Technologies Corp.		27,816		1,332
Stepan Co.		10,407		601
Taminco Corp. *		8,868		180
Zep, Inc.		12,835		209
Zoltek Cos., Inc. *		15,084		252
				17,147
Coal – 0.3%
Alpha Natural Resources, Inc. *		122,563		730
Arch Coal, Inc.		117,998		485
Cloud Peak Energy, Inc. *		33,749		495
Hallador Energy Co.		4,598		34
L&L Energy, Inc. *		16,921		22
SunCoke Energy, Inc. *		38,653		657
Walter Energy, Inc.		35,169		493
Westmoreland Coal Co. *		6,233		82
				2,998
Commercial Services – 6.2%
ABM Industries, Inc.		30,337		808
Acacia Research Corp.		27,204		627
Accretive Health, Inc. *		33,056		301
Advisory Board (The) Co. *		19,737		1,174
Albany Molecular Research, Inc. *		13,072		168
American Public Education, Inc. *		9,902		374
AMN Healthcare Services, Inc. *		25,878		356
ARC Document Solutions, Inc. *		21,149		97
Ascent Capital Group, Inc., Class A *		7,796		628
AVEO Pharmaceuticals, Inc. *		29,418		61
Barrett Business Services, Inc.		3,976		268
Bridgepoint Education, Inc. *		10,328		186
Bright Horizons Family Solutions, Inc. *		6,505		233
Brink’s (The) Co.		26,597		753
Capella Education Co. *		6,216		352

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 76 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Commercial Services – 6.2% – continued
Cardtronics, Inc. *		24,929		$925
Career Education Corp. *		31,163		86
Carriage Services, Inc.		8,551		166
CBIZ, Inc. *		21,310		159
CDI Corp.		7,962		122
Cenveo, Inc. *		29,634		87
Chemed Corp.		10,458		748
Consolidated Graphics, Inc. *		4,066		228
Convergys Corp.		58,251		1,092
Corinthian Colleges, Inc. *		46,045		101
Corporate Executive Board (The) Co.		18,700		1,358
Corvel Corp. *		6,422		237
CoStar Group, Inc. *		15,869		2,664
CRA International, Inc. *		5,629		105
Cross Country Healthcare, Inc. *		14,525		88
Deluxe Corp.		28,270		1,178
Education Management Corp. *		13,322		121
Electro Rent Corp.		10,191		185
Ennis, Inc.		14,452		261
Euronet Worldwide, Inc. *		27,742		1,104
EVERTEC, Inc.		16,588		368
ExamWorks Group, Inc. *		16,722		435
ExlService Holdings, Inc. *		17,986		512
Forrester Research, Inc.		7,058		259
Franklin Covey Co. *		5,119		92
FTI Consulting, Inc. *		22,364		845
Global Cash Access Holdings, Inc. *		37,085		290
Grand Canyon Education, Inc. *		25,231		1,016
Great Lakes Dredge & Dock Corp.		32,982		245
Green Dot Corp., Class A *		14,504		382
H&E Equipment Services, Inc. *		16,689		443
Hackett Group (The), Inc.		14,827		106
Healthcare Services Group, Inc.		38,029		980
Heartland Payment Systems, Inc.		20,348		808
Heidrick & Struggles International, Inc.		9,992		190
HMS Holdings Corp. *		48,744		1,048
Huron Consulting Group, Inc. *		12,843		676
ICF International, Inc. *		10,916		387
Insperity, Inc.		12,356		465
Intersections, Inc.		5,090		45
ITT Educational Services, Inc. *		13,134		407
JTH Holding, Inc., Class A *		2,593		49
K12, Inc. *		15,137		467
Kelly Services, Inc., Class A		15,168		295

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Commercial Services – 6.2% – continued
Kforce, Inc.		14,894		$263
Korn/Ferry International *		27,036		579
Landauer, Inc.		5,324		273
LifeLock, Inc. *		34,118		506
Lincoln Educational Services Corp.		12,819		59
Live Nation Entertainment, Inc. *		78,302		1,452
Mac-Gray Corp.		6,824		99
Matthews International Corp., Class A		15,243		580
MAXIMUS, Inc.		38,001		1,712
McGrath RentCorp		13,846		494
Medifast, Inc. *		7,854		211
MoneyGram International, Inc. *		11,752		230
Monro Muffler Brake, Inc.		17,382		808
Monster Worldwide, Inc. *		65,515		290
Multi-Color Corp.		6,884		234
National Research Corp., Class A *		5,519		104
Navigant Consulting, Inc. *		28,361		438
Odyssey Marine Exploration, Inc. *		44,088		133
On Assignment, Inc. *		25,388		838
PAREXEL International Corp. *		31,629		1,589
Pendrell Corp. *		91,659		178
Performant Financial Corp. *		12,561		137
PHH Corp. *		31,558		749
PRGX Global, Inc. *		16,230		102
Providence Service (The) Corp. *		5,962		171
Quad/Graphics, Inc.		13,736		417
Rent-A-Center, Inc.		29,627		1,129
Resources Connection, Inc.		22,949		311
RPX Corp. *		18,213		319
ServiceSource International, Inc. *		34,333		415
Sotheby’s		38,000		1,867
Standard Parking Corp. *		8,625		232
Steiner Leisure Ltd. *		8,079		472
Stewart Enterprises, Inc., Class A		39,967		525
Strayer Education, Inc.		6,082		253
Swisher Hygiene, Inc. *		62,190		38
Team Health Holdings, Inc. *		38,164		1,448
Team, Inc. *		11,309		450
TeleTech Holdings, Inc. *		10,771		270
TMS International Corp., Class A		8,073		141
Tree.com, Inc.		3,485		92
TrueBlue, Inc. *		22,813		548
Universal Technical Institute, Inc.		11,925		145
Valassis Communications, Inc.		21,823		630

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 77 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Commercial Services – 6.2% – continued
Viad Corp.		11,210		$280
VistaPrint N.V. *		18,140		1,025
WEX, Inc. *		21,564		1,892
Xoom Corp. *		3,998		127
				53,466
Computers – 1.8%
Acorn Energy, Inc.		9,737		57
Agilysys, Inc. *		8,340		99
CACI International, Inc., Class A *		12,818		886
Carbonite, Inc. *		6,539		98
CIBER, Inc. *		41,455		137
Computer Task Group, Inc.		8,493		137
Cray, Inc. *		21,886		527
Datalink Corp. *		8,401		114
Digimarc Corp.		3,405		69
Electronics For Imaging, Inc. *		25,883		820
FleetMatics Group PLC *		9,186		345
Fusion-io, Inc. *		42,739		572
Hutchinson Technology, Inc. *		13,151		46
iGATE Corp. *		19,583		544
Imation Corp. *		19,716		81
Immersion Corp. *		15,343		202
Insight Enterprises, Inc. *		23,925		453
j2 Global, Inc.		25,514		1,263
KEYW Holding (The) Corp. *		17,913		241
LivePerson, Inc. *		30,094		284
Luxoft Holding, Inc. *		2,615		69
Manhattan Associates, Inc. *		10,819		1,033
Maxwell Technologies, Inc. *		15,990		145
Mentor Graphics Corp.		53,056		1,240
Mercury Systems, Inc. *		17,952		179
Mitek Systems, Inc. *		12,499		65
MTS Systems Corp.		8,714		561
Netscout Systems, Inc. *		19,933		510
Qualys, Inc. *		8,373		179
Quantum Corp. *		119,314		165
Radisys Corp. *		13,423		43
RealD, Inc. *		22,679		159
Silicon Graphics International Corp. *		18,999		309
Silver Spring Networks, Inc. *		3,330		58
Spansion, Inc., Class A *		26,005		262
Super Micro Computer, Inc. *		17,901		242
Sykes Enterprises, Inc. *		21,835		391
Synaptics, Inc. *		17,995		797

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Computers – 1.8% – continued
Syntel, Inc.		8,580		$687
Uni-Pixel, Inc. *		5,681		101
Unisys Corp. *		24,485		617
Violin Memory, Inc. *		170		1
Virtusa Corp. *		11,495		334
Vocera Communications, Inc. *		11,849		220
				15,342
Cosmetics/Personal Care – 0.1%
Elizabeth Arden, Inc. *		14,174		523
Inter Parfums, Inc.		9,303		279
Revlon, Inc., Class A *		6,267		174
				976
Distribution/Wholesale – 1.0%
Beacon Roofing Supply, Inc. *		27,064		998
BlueLinx Holdings, Inc. *		18,084		35
Core-Mark Holding Co., Inc.		6,295		418
Houston Wire & Cable Co.		10,065		136
MWI Veterinary Supply, Inc. *		7,114		1,063
Owens & Minor, Inc.		35,166		1,216
Pool Corp.		25,932		1,456
Rentrak Corp. *		5,702		186
ScanSource, Inc. *		15,304		529
Speed Commerce, Inc. *		22,516		74
Titan Machinery, Inc. *		9,516		153
United Stationers, Inc.		22,469		977
Watsco, Inc.		14,302		1,348
				8,589
Diversified Financial Services – 2.6%
Aircastle Ltd.		37,879		659
Arlington Asset Investment Corp., Class A		8,968		213
BGC Partners, Inc., Class A		71,381		403
Blackhawk Network Holdings, Inc. *		6,466		155
Calamos Asset Management, Inc., Class A		11,189		112
California First National Bancorp		1,114		19
CIFC Corp.		4,482		35
Cohen & Steers, Inc.		10,550		373
Consumer Portfolio Services, Inc. *		9,552		57
Cowen Group, Inc., Class A *		55,003		190
Credit Acceptance Corp. *		3,996		443
DFC Global Corp. *		22,771		250
Diamond Hill Investment Group, Inc.		1,624		174
Doral Financial Corp. *		3,687		70
Ellie Mae, Inc. *		14,789		473

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 78 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Diversified Financial Services – 2.6% – continued
Encore Capital Group, Inc. *		13,125		$602
Evercore Partners, Inc., Class A		17,552		864
FBR & Co. *		4,799		129
Federal Agricultural Mortgage Corp., Class C		5,642		188
Financial Engines, Inc.		27,280		1,622
First Marblehead (The) Corp. *		51,376		42
FXCM, Inc., Class A		20,547		406
Gain Capital Holdings, Inc.		6,186		78
GAMCO Investors, Inc., Class A		3,371		256
GFI Group, Inc.		37,987		150
Greenhill & Co., Inc.		15,627		779
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		8,260		94
Higher One Holdings, Inc. *		17,253		132
Home Loan Servicing Solutions Ltd.		39,418		868
Horizon Technology Finance Corp.		4,849		65
Imperial Holdings, Inc. *		9,713		62
INTL. FCStone, Inc. *		7,612		156
Investment Technology Group, Inc. *		20,890		328
Janus Capital Group, Inc.		83,793		713
JMP Group, Inc.		9,364		58
KCG Holdings, Inc., Class A *		36,078		313
Ladenburg Thalmann Financial Services, Inc. *		59,729		108
Manning & Napier, Inc.		7,583		127
MarketAxess Holdings, Inc.		20,887		1,254
Marlin Business Services Corp.		4,575		114
Medley Capital Corp.		22,309		308
Nelnet, Inc., Class A		12,863		495
NewStar Financial, Inc. *		14,389		263
Nicholas Financial, Inc.		5,534		90
Oppenheimer Holdings, Inc., Class A		5,492		98
Outerwall, Inc. *		15,611		780
PennyMac Financial Services, Inc., Class A *		7,183		135
Piper Jaffray Cos. *		8,965		307
Portfolio Recovery Associates, Inc. *		28,252		1,693
Pzena Investment Management, Inc., Class A		6,433		44
Regional Management Corp. *		2,938		93
Silvercrest Asset Management Group, Inc., Class A *		3,063		42
Stifel Financial Corp. *		35,433		1,461
SWS Group, Inc. *		15,854		88
Virtus Investment Partners, Inc. *		3,755		611

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Diversified Financial Services – 2.6% – continued
WageWorks, Inc. *		13,802		$696
Walter Investment Management Corp. *		20,478		810
Westwood Holdings Group, Inc.		3,919		188
WhiteHorse Finance, Inc.		3,665		55
WisdomTree Investments, Inc. *		55,561		645
World Acceptance Corp. *		5,228		470
ZAIS Financial Corp.		3,106		54
				22,560
Electric – 1.9%
ALLETE, Inc.		22,187		1,072
Ameresco, Inc., Class A *		10,800		108
Atlantic Power Corp.		67,795		292
Avista Corp.		33,217		877
Black Hills Corp.		24,792		1,236
Cleco Corp.		33,614		1,507
Dynegy, Inc. *		55,634		1,075
El Paso Electric Co.		22,260		744
Empire District Electric Co.		23,500		509
EnerNOC, Inc. *		14,645		220
Genie Energy Ltd., Class B *		7,269		71
IDACORP, Inc.		27,894		1,350
MGE Energy, Inc.		12,725		694
NorthWestern Corp.		21,070		946
NRG Yield, Inc., Class A *		12,515		379
Ormat Technologies, Inc.		9,843		264
Otter Tail Corp.		20,226		558
Pike Electric Corp.		14,603		165
PNM Resources, Inc.		44,110		998
PNM Resources, Inc. - (Fractional Shares) *		50,000		–
Portland General Electric Co.		42,140		1,190
UIL Holdings Corp.		28,114		1,045
Unitil Corp.		7,836		229
UNS Energy Corp.		23,048		1,075
				16,604
Electrical Components & Equipment – 1.4%
Acuity Brands, Inc.		23,842		2,194
Advanced Energy Industries, Inc. *		21,836		383
American Superconductor Corp. *		26,834		63
Belden, Inc.		24,557		1,573
Capstone Turbine Corp. *		174,445		206
Coleman Cable, Inc.		4,938		104
Encore Wire Corp.		11,595		457
EnerSys, Inc.		26,811		1,626

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 79 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Electrical Components & Equipment – 1.4% – continued
Generac Holdings, Inc.		28,714		$1,224
General Cable Corp.		27,627		877
GrafTech International Ltd. *		65,669		555
Graham Corp.		5,452		197
Insteel Industries, Inc.		10,257		165
Littelfuse, Inc.		12,287		961
Powell Industries, Inc. *		5,082		311
PowerSecure International, Inc. *		10,651		171
Revolution Lighting Technologies, Inc. *		16,674		43
SunPower Corp. *		22,738		595
Universal Display Corp. *		22,468		720
Vicor Corp. *		9,704		79
				12,504
Electronics – 2.2%
American Science & Engineering, Inc.		4,567		275
Analogic Corp.		6,796		562
Badger Meter, Inc.		7,973		371
Bel Fuse, Inc., Class B		5,777		101
Benchmark Electronics, Inc. *		30,068		688
Brady Corp., Class A		25,630		782
Checkpoint Systems, Inc. *		22,811		381
Coherent, Inc.		13,497		829
Control4 Corp. *		2,557		44
CTS Corp.		18,839		297
Electro Scientific Industries, Inc.		13,330		156
ESCO Technologies, Inc.		14,819		492
FARO Technologies, Inc. *		9,396		396
FEI Co.		23,252		2,042
Fluidigm Corp. *		14,374		315
GSI Group, Inc. *		16,867		161
II-VI, Inc. *		28,185		531
InvenSense, Inc. *		31,357		553
Itron, Inc. *		21,955		940
Kemet Corp. *		25,663		107
Measurement Specialties, Inc. *		8,540		463
Mesa Laboratories, Inc.		1,427		97
Methode Electronics, Inc.		20,496		574
Multi-Fineline Electronix, Inc. *		4,958		80
Newport Corp. *		21,992		344
NVE Corp. *		2,685		137
OSI Systems, Inc. *		11,075		825
Park Electrochemical Corp.		11,712		336
Plexus Corp. *		18,860		702
Rofin-Sinar Technologies, Inc. *		15,881		385

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Electronics – 2.2% – continued
Rogers Corp. *		9,418		$560
Sanmina Corp. *		46,080		806
Sparton Corp. *		5,742		146
Stoneridge, Inc. *		15,641		169
Taser International, Inc. *		28,180		420
TTM Technologies, Inc. *		28,999		283
Viasystems Group, Inc. *		2,155		31
Vishay Precision Group, Inc. *		6,681		97
Watts Water Technologies, Inc., Class A		15,867		894
Woodward, Inc.		38,227		1,561
Zagg, Inc. *		17,321		78
Zygo Corp. *		9,647		154
				19,165
Energy - Alternate Sources – 0.2%
Amyris, Inc. *		14,467		33
Clean Energy Fuels Corp. *		38,340		490
Enphase Energy, Inc. *		8,972		73
FuelCell Energy, Inc. *		87,225		113
FutureFuel Corp.		12,198		219
Green Plains Renewable Energy, Inc.		14,088		226
KiOR, Inc., Class A *		24,707		70
Pattern Energy Group, Inc. *		703		16
Renewable Energy Group, Inc. *		11,899		180
REX American Resources Corp. *		3,067		94
Solazyme, Inc. *		26,892		290
				1,804
Engineering & Construction – 0.8%
Aegion Corp. *		21,655		514
Argan, Inc.		7,870		173
Dycom Industries, Inc. *		18,231		510
EMCOR Group, Inc.		37,335		1,461
Engility Holdings, Inc. *		9,648		306
Exponent, Inc.		7,260		522
Granite Construction, Inc.		21,510		658
Layne Christensen Co. *		11,202		224
MasTec, Inc. *		33,103		1,003
Michael Baker Corp.		4,825		195
Mistras Group, Inc. *		8,915		151
MYR Group, Inc. *		11,573		281
National Technical Systems, Inc. *		3,850		88
Orion Marine Group, Inc. *		15,633		163
Sterling Construction Co., Inc. *		9,122		84
Tutor Perini Corp. *		20,869		445

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 80 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Engineering & Construction – 0.8% – continued
VSE Corp.		2,233		$105
				6,883
Entertainment – 0.8%
Carmike Cinemas, Inc. *		12,811		283
Churchill Downs, Inc.		7,602		658
International Speedway Corp., Class A		15,386		497
Isle of Capri Casinos, Inc. *		11,969		90
Marriott Vacations Worldwide Corp. *		16,151		711
Multimedia Games Holding Co., Inc. *		15,958		551
National CineMedia, Inc.		31,802		600
Pinnacle Entertainment, Inc. *		32,358		810
Reading International, Inc., Class A *		9,820		64
Scientific Games Corp., Class A *		26,830		434
SHFL Entertainment, Inc. *		31,333		721
Speedway Motorsports, Inc.		6,320		113
Vail Resorts, Inc.		20,004		1,388
				6,920
Environmental Control – 0.6%
Advanced Emissions Solutions, Inc. *		5,655		242
Calgon Carbon Corp. *		29,917		568
Casella Waste Systems, Inc., Class A *		20,835		120
Ceco Environmental Corp.		9,907		140
Darling International, Inc. *		65,728		1,391
Energy Recovery, Inc. *		23,790		172
GSE Holding, Inc. *		4,952		10
Heritage-Crystal Clean, Inc. *		5,040		91
Mine Safety Appliances Co.		15,704		810
Nuverra Environmental Solutions, Inc. *		79,609		182
Pure Cycle Corp. *		9,665		45
Tetra Tech, Inc. *		36,061		934
TRC Cos., Inc. *		9,108		67
US Ecology, Inc.		10,364		312
				5,084
Food – 2.1%
Annie’s, Inc. *		7,709		379
Arden Group, Inc., Class A		664		86
B&G Foods, Inc.		29,381		1,015
Boulder Brands, Inc. *		33,310		534
Calavo Growers, Inc.		6,888		208
Cal-Maine Foods, Inc.		8,366		402
Chefs’ Warehouse (The), Inc. *		7,873		182
Chiquita Brands International, Inc. *		25,969		329
Diamond Foods, Inc. *		12,333		291

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Food – 2.1% – continued
Dole Food Co., Inc. *		28,872		$393
Fairway Group Holdings Corp. *		8,831		226
Fresh Del Monte Produce, Inc.		21,176		628
Hain Celestial Group (The), Inc. *		21,366		1,648
Harris Teeter Supermarkets, Inc.		27,559		1,356
Ingles Markets, Inc., Class A		6,563		189
Inventure Foods, Inc. *		7,624		80
J&J Snack Foods Corp.		8,363		675
John B. Sanfilippo & Son, Inc.		4,830		112
Lancaster Colony Corp.		10,252		803
Lifeway Foods, Inc.		2,538		34
Nash Finch Co.		6,755		178
Pilgrim’s Pride Corp. *		34,002		571
Post Holdings, Inc. *		18,134		732
Sanderson Farms, Inc.		12,782		834
Seaboard Corp.		162		445
Seneca Foods Corp., Class A *		4,535		136
Snyders-Lance, Inc.		26,406		762
Spartan Stores, Inc.		12,432		274
SUPERVALU, Inc. *		112,739		928
Tootsie Roll Industries, Inc.		11,103		342
TreeHouse Foods, Inc. *		20,133		1,345
United Natural Foods, Inc. *		27,411		1,843
Village Super Market, Inc., Class A		3,567		136
Weis Markets, Inc.		6,123		300
				18,396
Forest Products & Paper – 0.7%
Boise, Inc.		56,077		707
Clearwater Paper Corp. *		12,250		585
Deltic Timber Corp.		6,187		403
KapStone Paper and Packaging Corp.		22,734		973
Neenah Paper, Inc.		9,018		354
Orchids Paper Products Co.		3,204		89
PH Glatfelter Co.		23,871		646
Resolute Forest Products, Inc. *		38,450		508
Schweitzer-Mauduit International, Inc.		17,449		1,056
Wausau Paper Corp.		27,703		360
Xerium Technologies, Inc. *		6,130		71
				5,752
Gas – 0.9%
Chesapeake Utilities Corp.		5,292		278
Delta Natural Gas Co., Inc.		3,862		85
Laclede Group (The), Inc.		18,130		816

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 81 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Gas – 0.9% – continued
New Jersey Resources Corp.		23,184		$1,021
Northwest Natural Gas Co.		14,785		621
Piedmont Natural Gas Co., Inc.		41,963		1,380
South Jersey Industries, Inc.		17,779		1,041
Southwest Gas Corp.		25,725		1,286
WGL Holdings, Inc.		28,686		1,225
				7,753
Hand/Machine Tools – 0.1%
Franklin Electric Co., Inc.		26,251		1,034
Hardinge, Inc.		6,528		101
				1,135
Healthcare – Products – 3.5%
Abaxis, Inc.		12,241		515
ABIOMED, Inc. *		21,767		415
Accelerate Diagnostics, Inc. *		6,209		83
Accuray, Inc. *		42,184		312
Affymetrix, Inc. *		38,889		241
Align Technology, Inc. *		40,701		1,959
Alphatec Holdings, Inc. *		34,842		69
AngioDynamics, Inc. *		14,151		187
ArthroCare Corp. *		15,596		555
AtriCure, Inc. *		11,766		129
Atrion Corp.		861		223
Biolase, Inc. *		17,925		34
Cantel Medical Corp.		18,198		580
Cardiovascular Systems, Inc. *		11,756		236
Cepheid, Inc. *		37,711		1,472
Cerus Corp. *		39,175		263
Chindex International, Inc. *		6,691		114
CONMED Corp.		15,265		519
CryoLife, Inc.		14,919		104
Cutera, Inc. *		8,245		73
Cyberonics, Inc. *		15,358		779
Cynosure, Inc., Class A *		10,763		245
DexCom, Inc. *		39,343		1,111
Endologix, Inc. *		35,296		569
Exactech, Inc. *		5,296		107
Female Health (The) Co.		12,196		120
GenMark Diagnostics, Inc. *		20,076		244
Genomic Health, Inc. *		9,415		288
Globus Medical, Inc., Class A *		30,700		536
Greatbatch, Inc. *		13,213		450
Haemonetics Corp. *		28,328		1,130

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Healthcare – Products – 3.5% – continued
Hanger, Inc. *		19,224		$649
HeartWare International, Inc. *		9,090		665
ICU Medical, Inc. *		7,276		494
Insulet Corp. *		29,735		1,078
Integra LifeSciences Holdings Corp. *		11,056		445
Invacare Corp.		18,052		312
Luminex Corp. *		20,994		420
MAKO Surgical Corp. *		23,637		698
Masimo Corp.		26,969		718
Medical Action Industries, Inc. *		8,177		54
Merge Healthcare, Inc. *		36,698		96
Meridian Bioscience, Inc.		22,950		543
Merit Medical Systems, Inc. *		23,775		288
MiMedx Group, Inc. *		47,320		197
Natus Medical, Inc. *		16,705		237
Navidea Biopharmaceuticals, Inc. *		67,229		178
NuVasive, Inc. *		24,422		598
NxStage Medical, Inc. *		33,569		442
OraSure Technologies, Inc. *		31,231		188
Orthofix International N.V. *		10,994		229
PhotoMedex, Inc. *		7,974		127
Quidel Corp. *		15,720		446
Rochester Medical Corp. *		5,937		118
Rockwell Medical, Inc. *		22,072		252
Solta Medical, Inc. *		38,808		81
Spectranetics Corp. *		22,406		376
Staar Surgical Co. *		20,566		278
STERIS Corp.		32,764		1,408
SurModics, Inc. *		8,145		194
Symmetry Medical, Inc. *		21,039		172
TearLab Corp. *		14,366		159
Thoratec Corp. *		31,875		1,189
Tornier N.V. *		14,613		282
Unilife Corp. *		50,299		167
Utah Medical Products, Inc.		1,755		104
Vascular Solutions, Inc. *		8,930		150
Volcano Corp. *		30,255		724
West Pharmaceutical Services, Inc.		38,512		1,585
Wright Medical Group, Inc. *		22,693		592
Zeltiq Aesthetics, Inc. *		10,482		95
				30,690
Healthcare – Services – 1.7%
Acadia Healthcare Co., Inc. *		19,646		775
Addus HomeCare Corp. *		3,073		89

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 82 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Healthcare – Services – 1.7% – continued
Air Methods Corp.		21,753		$927
Alliance HealthCare Services, Inc. *		2,803		78
Almost Family, Inc.		4,412		86
Amedisys, Inc. *		17,438		300
Amsurg Corp. *		17,645		701
Bio-Reference Labs, Inc. *		13,625		407
Capital Senior Living Corp. *		16,006		339
Centene Corp. *		30,275		1,936
Emeritus Corp. *		22,654		420
Ensign Group (The), Inc.		10,676		439
Five Star Quality Care, Inc. *		23,112		119
Gentiva Health Services, Inc. *		17,401		210
HealthSouth Corp.		48,447		1,670
Healthways, Inc. *		18,978		351
IPC The Hospitalist Co., Inc. *		9,226		471
Kindred Healthcare, Inc.		30,373		408
LHC Group, Inc. *		6,784		159
Magellan Health Services, Inc. *		15,030		901
Molina Healthcare, Inc. *		15,647		557
National Healthcare Corp.		6,015		284
Premier, Inc., Class A *		226		7
Select Medical Holdings Corp.		27,359		221
Skilled Healthcare Group, Inc., Class A *		11,199		49
Triple-S Management Corp., Class B *		13,317		245
U.S. Physical Therapy, Inc.		6,766		210
Universal American Corp.		21,386		163
USMD Holdings, Inc. *		609		16
Vanguard Health Systems, Inc. *		19,058		400
WellCare Health Plans, Inc. *		24,163		1,685
				14,623
Holding Companies – Diversified – 0.1%
Harbinger Group, Inc. *		18,602		193
Horizon Pharma, Inc. *		28,997		98
National Bank Holdings Corp., Class A		28,874		593
Resource America, Inc., Class A		7,096		57
				941
Home Builders – 0.7%
Beazer Homes USA, Inc. *		13,847		249
Cavco Industries, Inc. *		3,926		224
Hovnanian Enterprises, Inc., Class A *		63,643		333
KB Home		46,468		837
M/I Homes, Inc. *		13,656		282
MDC Holdings, Inc.		21,621		649

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Home Builders – 0.7% continued
Meritage Homes Corp. *		20,070		$862
Ryland Group (The), Inc.		25,639		1,039
Standard Pacific Corp. *		83,361		659
TRI Pointe Homes, Inc. *		7,985		117
UCP, Inc., Class A *		4,309		64
WCI Communities, Inc. *		3,791		65
William Lyon Homes, Class A *		7,749		158
Winnebago Industries, Inc. *		15,744		409
				5,947
Home Furnishings – 0.6%
American Woodmark Corp. *		5,518		191
Bassett Furniture Industries, Inc.		6,121		99
Daktronics, Inc.		20,469		229
DTS, Inc. *		10,084		212
Ethan Allen Interiors, Inc.		13,727		383
Flexsteel Industries, Inc.		2,601		65
Hooker Furniture Corp.		5,808		87
iRobot Corp. *		15,618		588
Kimball International, Inc., Class B		17,852		198
La-Z-Boy, Inc.		29,333		666
Select Comfort Corp. *		30,862		751
Skullcandy, Inc. *		9,226		57
TiVo, Inc. *		70,445		876
Universal Electronics, Inc. *		8,290		299
VOXX International Corp. *		10,054		138
				4,839
Household Products/Wares – 0.5%
ACCO Brands Corp. *		62,586		415
Blyth, Inc.		5,151		71
Central Garden and Pet Co., Class A *		23,549		161
Costa, Inc. *		5,139		98
CSS Industries, Inc.		4,779		115
Helen of Troy Ltd. *		17,688		782
Prestige Brands Holdings, Inc. *		28,408		856
Spectrum Brands Holdings, Inc.		11,932		786
Tumi Holdings, Inc. *		26,416		532
WD-40 Co.		8,535		554
				4,370
Housewares – 0.1%
EveryWare Global, Inc. *		5,534		63
Libbey, Inc. *		11,594		275
Lifetime Brands, Inc.		5,540		85
				423

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 83 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Insurance – 2.7%
Ambac Financial Group, Inc. *		24,827		$450
American Equity Investment Life Holding Co.		36,103		766
American Safety Insurance Holdings Ltd. *		5,418		164
AMERISAFE, Inc.		10,177		361
Amtrust Financial Services, Inc.		17,146		670
Argo Group International Holdings Ltd.		15,028		644
Baldwin & Lyons, Inc., Class B		5,303		129
Citizens, Inc. *		24,503		212
CNO Financial Group, Inc.		123,711		1,782
Crawford & Co., Class B		14,677		142
Donegal Group, Inc., Class A		4,173		58
Eastern Insurance Holdings, Inc.		3,738		91
eHealth, Inc. *		10,259		331
EMC Insurance Group, Inc.		2,548		77
Employers Holdings, Inc.		17,389		517
Enstar Group Ltd. *		5,279		721
FBL Financial Group, Inc., Class A		4,981		224
First American Financial Corp.		60,181		1,465
Fortegra Financial Corp. *		3,245		28
Global Indemnity PLC *		4,543		116
Greenlight Capital Re Ltd., Class A *		15,631		445
Hallmark Financial Services, Inc. *		7,982		71
HCI Group, Inc.		5,220		213
Health Insurance Innovations, Inc., Class A *		2,437		29
Hilltop Holdings, Inc. *		34,254		634
Horace Mann Educators Corp.		22,186		630
Independence Holding Co.		4,430		63
Infinity Property & Casualty Corp.		6,478		419
Investors Title Co.		744		56
Kansas City Life Insurance Co.		2,113		94
Maiden Holdings Ltd.		27,605		326
Meadowbrook Insurance Group, Inc.		28,467		185
MGIC Investment Corp. *		180,536		1,314
Montpelier Re Holdings Ltd.		24,447		637
National Interstate Corp.		3,719		103
National Western Life Insurance Co., Class A		1,229		248
Navigators Group (The), Inc. *		5,820		336
OneBeacon Insurance Group Ltd., Class A		12,488		184
Phoenix (The) Cos., Inc. *		3,323		129
Platinum Underwriters Holdings Ltd.		16,247		971
Primerica, Inc.		31,728		1,280
Radian Group, Inc.		96,110		1,339

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Insurance – 2.7% – continued
RLI Corp.		11,832		$1,034
Safety Insurance Group, Inc.		7,101		376
Selective Insurance Group, Inc.		30,577		749
State Auto Financial Corp.		8,230		172
Stewart Information Services Corp.		11,971		383
Symetra Financial Corp.		45,234		806
Third Point Reinsurance Ltd. *		14,099		204
Tower Group International Ltd.		32,277		226
United Fire Group, Inc.		11,409		348
Universal Insurance Holdings, Inc.		14,527		102
				23,054
Internet – 3.0%
1-800-Flowers.com, Inc., Class A *		14,563		72
Active Network (The), Inc. *		30,352		434
Angie’s List, Inc. *		23,745		534
Bankrate, Inc. *		25,420		523
Bazaarvoice, Inc. *		27,020		245
Blucora, Inc. *		22,901		526
Blue Nile, Inc. *		6,908		283
Boingo Wireless, Inc. *		10,472		73
Brightcove, Inc. *		15,814		178
BroadSoft, Inc. *		15,689		565
ChannelAdvisor Corp. *		3,373		124
Cogent Communications Group, Inc.		26,117		842
comScore, Inc. *		19,829		574
Constant Contact, Inc. *		17,292		410
Covisint Corp. *		165		2
CyrusOne, Inc.		10,854		206
Dealertrack Technologies, Inc. *		24,129		1,034
Dice Holdings, Inc. *		22,830		194
eGain Corp. *		7,352		111
ePlus, Inc.		2,098		108
FireEye, Inc. *		56		2
Global Eagle Entertainment, Inc. *		12,076		113
Global Sources Ltd. *		10,647		79
HealthStream, Inc. *		11,183		424
ICG Group, Inc. *		21,209		301
Internap Network Services Corp. *		30,103		209
IntraLinks Holdings, Inc. *		21,633		190
Limelight Networks, Inc. *		28,311		55
Lionbridge Technologies, Inc. *		33,189		122
Liquidity Services, Inc. *		13,968		469
magicJack VocalTec Ltd. *		10,433		134
Marketo, Inc. *		3,919		125

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 84 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Internet – 3.0% – continued
ModusLink Global Solutions, Inc. *		20,238		$55
Move, Inc. *		22,472		381
Net Element International, Inc. *		1,754		8
NIC, Inc.		35,985		832
Nutrisystem, Inc.		15,656		225
OpenTable, Inc. *		12,740		892
Orbitz Worldwide, Inc. *		12,956		125
Overstock.com, Inc. *		6,222		185
PC-Tel, Inc.		10,394		92
Perficient, Inc. *		18,562		341
QuinStreet, Inc. *		17,626		167
ReachLocal, Inc. *		5,757		69
RealNetworks, Inc. *		12,094		104
Reis, Inc. *		4,681		76
Responsys, Inc. *		20,746		342
RetailMeNot, Inc. *		5,221		186
RingCentral, Inc., Class A *		280		5
Safeguard Scientifics, Inc. *		11,934		187
Sapient Corp. *		61,364		955
Shutterfly, Inc. *		21,136		1,181
Shutterstock, Inc. *		4,167		303
Sourcefire, Inc. *		17,326		1,315
Spark Networks, Inc. *		9,889		82
SPS Commerce, Inc. *		8,286		555
Stamps.com, Inc. *		7,308		336
support.com, Inc. *		27,163		148
TechTarget, Inc. *		7,357		37
TeleCommunication Systems, Inc., Class A *		26,734		66
Textura Corp. *		2,919		126
Towerstream Corp. *		37,374		107
Travelzoo, Inc. *		4,460		118
Tremor Video, Inc. *		4,170		38
Trulia, Inc. *		15,278		719
United Online, Inc.		50,822		406
Unwired Planet, Inc. *		56,165		97
ValueClick, Inc. *		42,358		883
VASCO Data Security International, Inc. *		16,223		128
VirnetX Holding Corp. *		23,739		484
Vitacost.com, Inc. *		12,071		103
Vocus, Inc. *		10,174		95
Web.com Group, Inc. *		23,237		751
WebMD Health Corp. *		17,873		511
XO Group, Inc. *		14,750		191
Yelp, Inc. *		16,558		1,096

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Internet – 3.0% – continued
YuMe, Inc. *		1,428		$15
Zillow, Inc., Class A *		12,947		1,092
Zix Corp. *		35,269		172
				25,643
Investment Companies – 1.1%
Apollo Investment Corp.		125,152		1,020
BlackRock Kelso Capital Corp.		41,420		393
Capital Southwest Corp.		7,548		258
Fidus Investment Corp.		7,558		147
Fifth Street Finance Corp.		76,036		782
Firsthand Technology Value Fund, Inc. *		4,681		115
Garrison Capital, Inc.		3,339		49
Gladstone Capital Corp.		11,778		103
Gladstone Investment Corp.		14,584		103
Golub Capital BDC, Inc.		19,430		337
GSV Capital Corp. *		10,969		163
Hercules Technology Growth Capital, Inc.		34,309		523
KCAP Financial, Inc.		15,807		142
Main Street Capital Corp.		21,867		654
MCG Capital Corp.		39,326		198
Medallion Financial Corp.		10,247		152
MVC Capital, Inc.		12,745		166
New Mountain Finance Corp.		20,937		302
NGP Capital Resources Co.		11,777		88
PennantPark Floating Rate Capital Ltd.		5,738		79
PennantPark Investment Corp.		36,887		415
Prospect Capital Corp.		144,640		1,617
Solar Capital Ltd.		25,253		560
Solar Senior Capital Ltd.		6,464		117
Stellus Capital Investment Corp.		6,730		101
TCP Capital Corp.		14,540		236
THL Credit, Inc.		18,991		297
TICC Capital Corp.		29,607		289
Triangle Capital Corp.		15,391		452
				9,858
Iron/Steel – 0.2%
AK Steel Holding Corp. *		76,767		288
Commercial Metals Co.		64,738		1,097
Schnitzer Steel Industries, Inc., Class A		14,268		393
Shiloh Industries, Inc.		3,735		49
Universal Stainless & Alloy Products, Inc. *		3,990		130
				1,957

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 85 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Leisure Time – 0.7%
Arctic Cat, Inc.		7,410		$423
Black Diamond, Inc. *		12,279		149
Brunswick Corp.		50,312		2,008
Callaway Golf Co.		39,970		284
ClubCorp Holdings, Inc. *		1,410		22
Diamond Resorts International, Inc. *		9,910		186
Fox Factory Holding Corp. *		5,480		106
Interval Leisure Group, Inc.		21,714		513
Johnson Outdoors, Inc., Class A *		2,715		73
Life Time Fitness, Inc. *		23,950		1,233
Marine Products Corp.		6,320		57
Nautilus, Inc. *		17,438		126
Town Sports International Holdings, Inc.		12,960		168
WMS Industries, Inc. *		30,317		787
				6,135
Lodging – 0.2%
Boyd Gaming Corp. *		38,917		551
Caesars Entertainment Corp. *		20,394		402
Marcus Corp.		10,392		151
Monarch Casino & Resort, Inc. *		4,529		86
Morgans Hotel Group Co. *		14,972		115
Orient-Express Hotels Ltd., Class A *		53,031		688
				1,993
Machinery – Construction & Mining – 0.1%
Astec Industries, Inc.		11,182		402
Hyster-Yale Materials Handling, Inc.		5,917		531
				933
Machinery – Diversified – 1.4%
Alamo Group, Inc.		4,032		197
Albany International Corp., Class A		15,602		560
Altra Holdings, Inc.		14,984		403
Applied Industrial Technologies, Inc.		23,425		1,206
Briggs & Stratton Corp.		26,942		542
Chart Industries, Inc. *		16,872		2,076
Cognex Corp.		48,410		1,518
Columbus McKinnon Corp. *		10,655		256
DXP Enterprises, Inc. *		5,325		421
ExOne (The) Co. *		3,351		143
Flow International Corp. *		25,626		102
Global Power Equipment Group, Inc.		9,449		190
Gorman-Rupp (The) Co.		8,367		336
Hurco Cos., Inc.		3,566		92
Kadant, Inc.		6,296		211

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Machinery – Diversified – 1.4% – continued
Lindsay Corp.		7,166		$585
Manitex International, Inc. *		6,912		76
Middleby (The) Corp. *		10,454		2,184
NACCO Industries, Inc., Class A		2,788		154
Power Solutions International, Inc. *		1,081		64
Tecumseh Products Co., Class A *		10,385		93
Tennant Co.		10,336		641
Twin Disc, Inc.		4,581		120
				12,170
Media – 0.9%
AH Belo Corp., Class A		10,621		83
Beasley Broadcasting Group, Inc., Class A		2,154		19
Belo Corp., Class A		57,620		789
Central European Media Enterprises Ltd., Class A *		43,043		227
Courier Corp.		6,661		105
Crown Media Holdings, Inc., Class A *		17,721		55
Cumulus Media, Inc., Class A *		42,326		224
Daily Journal Corp. *		476		70
Demand Media, Inc. *		20,350		129
Dex Media, Inc. *		9,630		78
Digital Generation, Inc. *		13,609		176
Entercom Communications Corp., Class A *		13,259		116
Entravision Communications Corp., Class A		31,609		187
EW Scripps (The) Co., Class A *		17,732		325
Gray Television, Inc. *		28,265		222
Hemisphere Media Group, Inc. *		4,839		57
Journal Communications, Inc., Class A *		24,804		212
Martha Stewart Living Omnimedia, Inc., Class A *		17,460		40
McClatchy (The) Co., Class A *		32,427		97
Media General, Inc., Class A *		11,018		157
Meredith Corp.		19,847		945
New York Times (The) Co., Class A *		71,607		900
Nexstar Broadcasting Group, Inc., Class A		16,502		735
Saga Communications, Inc., Class A		2,749		122
Salem Communications Corp., Class A		6,043		50
Scholastic Corp.		14,859		426
Sinclair Broadcast Group, Inc., Class A		38,073		1,276
World Wrestling Entertainment, Inc., Class A		16,177		165
				7,987

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 86 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Metal Fabricate/Hardware – 0.0%
Global Brass & Copper Holdings, Inc. *		4,520		$79
Metal Fabrication/Hardware – 0.9%
A.M. Castle & Co. *		9,427		152
Ampco-Pittsburgh Corp.		4,459		80
CIRCOR International, Inc.		9,700		603
Dynamic Materials Corp.		7,472		173
Furmanite Corp. *		20,473		203
Haynes International, Inc.		6,755		306
Kaydon Corp.		17,953		638
LB Foster Co., Class A		5,709		261
Mueller Industries, Inc.		15,607		869
Mueller Water Products, Inc., Class A		88,446		707
NN, Inc.		9,429		147
Northwest Pipe Co. *		5,201		171
Olympic Steel, Inc.		4,923		137
Omega Flex, Inc.		1,590		30
RBC Bearings, Inc. *		12,753		840
Rexnord Corp. *		16,716		348
RTI International Metals, Inc. *		17,586		563
Sun Hydraulics Corp.		12,114		439
Worthington Industries, Inc.		29,313		1,009
				7,676
Mining – 0.7%
Allied Nevada Gold Corp. *		58,393		244
AMCOL International Corp.		15,301		500
Century Aluminum Co. *		28,164		227
Coeur Mining, Inc. *		56,611		682
General Moly, Inc. *		30,685		51
Globe Specialty Metals, Inc.		35,452		546
Gold Resource Corp.		18,647		124
Hecla Mining Co.		184,098		578
Horsehead Holding Corp. *		24,869		310
Kaiser Aluminum Corp.		10,460		745
Materion Corp.		11,503		369
Midway Gold Corp. *		61,480		59
Molycorp, Inc. *		69,694		457
Noranda Aluminum Holding Corp.		20,147		49
Paramount Gold and Silver Corp. *		79,637		103
Stillwater Mining Co. *		65,490		721
United States Lime & Minerals, Inc. *		1,033		60
Uranium Energy Corp. *		46,570		105
Ur-Energy, Inc. *		68,353		79

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Mining – 0.7% – continued
US Silica Holdings, Inc.		12,051		$300
				6,309
Miscellaneous Manufacturing – 1.8%
Actuant Corp., Class A		40,764		1,583
American Railcar Industries, Inc.		5,368		211
AZZ, Inc.		14,269		597
Barnes Group, Inc.		29,886		1,044
Blount International, Inc. *		26,958		326
Chase Corp.		3,710		109
CLARCOR, Inc.		27,618		1,534
EnPro Industries, Inc. *		11,605		699
Fabrinet *		15,930		268
Federal Signal Corp. *		34,386		443
FreightCar America, Inc.		6,934		143
GP Strategies Corp. *		8,161		214
Handy & Harman Ltd. *		2,911		69
Hillenbrand, Inc.		30,407		832
John Bean Technologies Corp.		16,192		403
Koppers Holdings, Inc.		11,567		493
LSB Industries, Inc. *		10,671		358
Lydall, Inc. *		9,266		159
Movado Group, Inc.		9,800		429
Myers Industries, Inc.		15,836		318
NL Industries, Inc.		3,800		43
Park-Ohio Holdings Corp. *		4,786		184
PMFG, Inc. *		11,555		86
Polypore International, Inc. *		25,955		1,063
Proto Labs, Inc. *		9,454		722
Raven Industries, Inc.		20,175		660
Smith & Wesson Holding Corp. *		36,200		398
Standex International Corp.		7,033		418
Sturm Ruger & Co., Inc.		10,817		677
Tredegar Corp.		13,485		351
Trimas Corp. *		24,979		932
				15,766
Office Furnishings – 0.4%
Compx International, Inc.		1,003		13
Herman Miller, Inc.		32,575		951
HNI Corp.		25,194		911
Interface, Inc.		33,181		658
Knoll, Inc.		26,552		450
Steelcase, Inc., Class A		46,691		776
				3,759

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 87 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Oil & Gas – 2.9%
Abraxas Petroleum Corp. *		45,237		$116
Adams Resources & Energy, Inc.		1,229		68
Alon USA Energy, Inc.		13,101		134
Apco Oil and Gas International, Inc. *		4,760		68
Approach Resources, Inc. *		19,219		505
Arabian American Development Co. *		10,861		99
Athlon Energy, Inc. *		10,095		330
Berry Petroleum Co., Class A		29,280		1,263
Bill Barrett Corp. *		27,207		683
Bonanza Creek Energy, Inc. *		16,317		787
BPZ Resources, Inc. *		66,399		130
Callon Petroleum Co. *		21,947		120
Carrizo Oil & Gas, Inc. *		22,433		837
Clayton Williams Energy, Inc. *		3,251		171
Comstock Resources, Inc.		27,211		433
Contango Oil & Gas Co.		7,214		265
Crimson Exploration, Inc. *		11,038		33
Delek US Holdings, Inc.		20,468		432
Diamondback Energy, Inc. *		10,032		428
Emerald Oil, Inc. *		20,591		148
Endeavour International Corp. *		25,655		137
Energy XXI Bermuda Ltd.		44,141		1,333
EPL Oil & Gas, Inc. *		16,524		613
Equal Energy Ltd.		20,127		95
Evolution Petroleum Corp. *		9,609		108
EXCO Resources, Inc.		74,971		505
Forest Oil Corp. *		65,994		403
FX Energy, Inc. *		29,340		101
Gastar Exploration Ltd. *		30,534		121
Goodrich Petroleum Corp. *		14,814		360
Halcon Resources Corp. *		129,733		575
Hercules Offshore, Inc. *		88,226		650
Isramco, Inc. *		504		62
Jones Energy, Inc., Class A *		4,476		73
Kodiak Oil & Gas Corp. *		147,725		1,782
Magnum Hunter Resources Corp. *		94,887		585
Matador Resources Co. *		32,346		528
Midstates Petroleum Co., Inc. *		18,700		96
Miller Energy Resources, Inc. *		16,301		118
Northern Oil and Gas, Inc. *		35,169		508
Panhandle Oil and Gas, Inc., Class A		3,951		112
Parker Drilling Co. *		66,465		379
PDC Energy, Inc. *		19,772		1,177
Penn Virginia Corp. *		30,183		201

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Oil & Gas – 2.9% – continued
PetroQuest Energy, Inc. *		32,561		$131
Quicksilver Resources, Inc. *		66,683		131
Resolute Energy Corp. *		38,110		319
Rex Energy Corp. *		25,443		567
Rosetta Resources, Inc. *		33,996		1,851
Sanchez Energy Corp. *		21,165		559
Stone Energy Corp. *		27,968		907
Swift Energy Co. *		24,461		279
Synergy Resources Corp. *		28,462		278
Triangle Petroleum Corp. *		37,797		371
Vaalco Energy, Inc. *		32,642		182
Vantage Drilling Co. *		109,840		190
W&T Offshore, Inc.		19,503		346
Warren Resources, Inc. *		39,975		117
Western Refining, Inc.		30,099		904
ZaZa Energy Corp. *		20,982		24
				24,828
Oil & Gas Services – 1.6%
Basic Energy Services, Inc. *		16,612		210
Bolt Technology Corp.		4,736		86
C&J Energy Services, Inc. *		25,189		506
Cal Dive International, Inc. *		53,588		110
CARBO Ceramics, Inc.		11,007		1,091
Dawson Geophysical Co. *		4,606		150
Edgen Group, Inc. *		9,955		76
Exterran Holdings, Inc. *		32,010		883
Flotek Industries, Inc. *		26,800		616
Forum Energy Technologies, Inc. *		21,744		587
Geospace Technologies Corp. *		7,209		608
Global Geophysical Services, Inc. *		13,453		36
Gulf Island Fabrication, Inc.		7,910		194
Helix Energy Solutions Group, Inc. *		59,003		1,497
Hornbeck Offshore Services, Inc. *		19,907		1,143
ION Geophysical Corp. *		74,813		389
Key Energy Services, Inc. *		84,130		613
Matrix Service Co. *		14,691		288
Mitcham Industries, Inc. *		6,816		104
Natural Gas Services Group, Inc. *		7,015		188
Newpark Resources, Inc. *		47,574		602
Pioneer Energy Services Corp. *		35,055		263
SEACOR Holdings, Inc.		11,177		1,011
T.G.C. Industries, Inc.		8,488		67
Targa Resources Corp.		18,375		1,341
Tesco Corp. *		17,056		283

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 88 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Oil & Gas Services – 1.6% – continued
TETRA Technologies, Inc. *		43,422		$544
Thermon Group Holdings, Inc. *		15,233		352
Willbros Group, Inc. *		22,011		202
				14,040
Packaging & Containers – 0.2%
AEP Industries, Inc. *		2,413		179
Berry Plastics Group, Inc. *		30,672		612
Graphic Packaging Holding Co. *		116,662		999
UFP Technologies, Inc. *		3,117		71
				1,861
Pharmaceuticals – 3.3%
ACADIA Pharmaceuticals, Inc. *		38,916		1,069
AcelRx Pharmaceuticals, Inc. *		11,745		126
Achillion Pharmaceuticals, Inc. *		54,264		164
Agios Pharmaceuticals, Inc. *		3,800		106
Akorn, Inc. *		32,193		634
Alimera Sciences, Inc. *		9,536		36
Amicus Therapeutics, Inc. *		17,069		40
Ampio Pharmaceuticals, Inc. *		15,440		116
Anacor Pharmaceuticals, Inc. *		14,243		151
Anika Therapeutics, Inc. *		6,581		158
Antares Pharma, Inc. *		63,356		257
Aratana Therapeutics, Inc. *		3,676		60
Array BioPharma, Inc. *		66,267		412
Auxilium Pharmaceuticals, Inc. *		27,453		500
AVANIR Pharmaceuticals, Inc., Class A *		81,581		346
BioDelivery Sciences International, Inc. *		17,151		93
BioScrip, Inc. *		32,772		288
Cadence Pharmaceuticals, Inc. *		34,650		219
Cempra, Inc. *		8,350		96
ChemoCentryx, Inc. *		13,814		77
Chimerix, Inc. *		4,770		105
Clovis Oncology, Inc. *		8,943		544
Conatus Pharmaceuticals, Inc. *		3,335		33
Corcept Therapeutics, Inc. *		30,094		48
Cornerstone Therapeutics, Inc. *		4,456		42
Cytori Therapeutics, Inc. *		33,905		79
Depomed, Inc. *		32,280		241
Derma Sciences, Inc. *		7,923		98
Durata Therapeutics, Inc. *		7,137		64
Dyax Corp. *		61,362		421
Enanta Pharmaceuticals, Inc. *		2,043		47
Endocyte, Inc. *		17,012		227

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Pharmaceuticals – 3.3% – continued
Esperion Therapeutics, Inc. *		2,545		$48
Furiex Pharmaceuticals, Inc. *		3,736		164
Hi-Tech Pharmacal Co., Inc.		6,137		265
Hyperion Therapeutics, Inc. *		4,718		123
Idenix Pharmaceuticals, Inc. *		56,073		292
Impax Laboratories, Inc. *		38,015		780
Infinity Pharmaceuticals, Inc. *		26,907		470
Insys Therapeutics, Inc. *		2,845		100
Ironwood Pharmaceuticals, Inc. *		52,298		620
Isis Pharmaceuticals, Inc. *		62,548		2,348
KaloBios Pharmaceuticals, Inc. *		4,810		22
Keryx Biopharmaceuticals, Inc. *		46,040		465
Lannett Co., Inc. *		8,873		194
Lifevantage Corp. *		63,763		152
MannKind Corp. *		83,594		476
Natural Grocers by Vitamin Cottage, Inc. *		4,984		198
Nature’s Sunshine Products, Inc.		6,152		117
Nektar Therapeutics *		64,081		670
Neogen Corp. *		13,305		808
Neurocrine Biosciences, Inc. *		37,527		425
Nutraceutical International Corp.		4,896		116
Omega Protein Corp. *		11,055		112
Omthera Pharmaceuticals, Inc. *		3,681		–
Opko Health, Inc. *		105,741		932
Optimer Pharmaceuticals, Inc. *		27,388		345
Orexigen Therapeutics, Inc. *		53,185		327
Osiris Therapeutics, Inc. *		9,034		150
Pacira Pharmaceuticals, Inc. *		15,491		745
Pernix Therapeutics Holdings *		9,870		27
PharMerica Corp. *		16,697		222
Portola Pharmaceuticals, Inc. *		5,443		146
Pozen, Inc. *		15,245		87
Progenics Pharmaceuticals, Inc. *		28,686		144
Questcor Pharmaceuticals, Inc.		28,868		1,674
Raptor Pharmaceutical Corp. *		31,156		465
Receptos, Inc. *		3,247		84
Regulus Therapeutics, Inc. *		5,021		47
Repros Therapeutics, Inc. *		12,877		345
Sagent Pharmaceuticals, Inc. *		9,385		191
Santarus, Inc. *		30,911		698
Sarepta Therapeutics, Inc. *		17,934		847
Sciclone Pharmaceuticals, Inc. *		30,431		154
SIGA Technologies, Inc. *		20,884		80
Star Scientific, Inc. *		93,563		179

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 89 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Pharmaceuticals – 3.3% – continued
Sucampo Pharmaceuticals, Inc., Class A *		7,865		$49
Supernus Pharmaceuticals, Inc. *		8,382		61
Synageva BioPharma Corp. *		9,601		608
Synergy Pharmaceuticals, Inc. *		45,278		207
Synta Pharmaceuticals Corp. *		22,958		145
Synutra International, Inc. *		9,760		52
Targacept, Inc. *		16,059		85
TESARO, Inc. *		7,518		291
Tetraphase Pharmaceuticals, Inc. *		6,462		74
TG Therapeutics, Inc. *		7,180		37
TherapeuticsMD, Inc. *		43,894		129
Threshold Pharmaceuticals, Inc. *		27,187		126
USANA Health Sciences, Inc. *		3,394		295
Vanda Pharmaceuticals, Inc. *		16,259		178
ViroPharma, Inc. *		36,370		1,429
Vivus, Inc. *		56,397		526
XenoPort, Inc. *		24,686		140
Zogenix, Inc. *		40,333		75
				28,258
Pipelines – 0.3%
Crosstex Energy, Inc.		26,281		549
Primoris Services Corp.		19,456		495
SemGroup Corp., Class A		23,407		1,335
				2,379
Real Estate – 0.3%
Alexander & Baldwin, Inc. *		23,881		860
AV Homes, Inc. *		5,378		94
Consolidated-Tomoka Land Co.		3,285		126
Forestar Group, Inc. *		19,174		413
HFF, Inc., Class A		18,445		462
Kennedy-Wilson Holdings, Inc.		31,491		585
Thomas Properties Group, Inc.		17,301		116
				2,656
Real Estate Investment Trusts – 7.4%
Acadia Realty Trust		30,400		750
AG Mortgage Investment Trust, Inc.		15,315		255
Agree Realty Corp.		7,415		224
Alexander’s, Inc.		1,143		327
Altisource Residential Corp.		14,083		324
American Assets Trust, Inc.		18,597		567
American Capital Mortgage Investment Corp.		32,734		647
American Realty Capital Properties, Inc.		85,733		1,046

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Real Estate Investment Trusts – 7.4% – continued
American Residential Properties, Inc. *		7,564		$133
AmREIT, Inc.		9,081		158
Anworth Mortgage Asset Corp.		81,603		394
Apollo Commercial Real Estate Finance, Inc.		20,696		316
Apollo Residential Mortgage, Inc.		18,101		264
Ares Commercial Real Estate Corp.		12,003		149
Armada Hoffler Properties, Inc.		10,667		106
ARMOUR Residential REIT, Inc.		209,240		879
Ashford Hospitality Trust, Inc.		34,469		425
Associated Estates Realty Corp.		32,273		481
Aviv REIT, Inc.		6,459		147
Campus Crest Communities, Inc.		35,447		383
CapLease, Inc.		48,993		416
Capstead Mortgage Corp.		52,825		622
Cedar Realty Trust, Inc.		40,588		210
Chambers Street Properties		131,241		1,152
Chatham Lodging Trust		12,635		226
Chesapeake Lodging Trust		26,934		634
Colonial Properties Trust		49,200		1,107
Colony Financial, Inc.		35,863		717
CoreSite Realty Corp.		11,679		396
Cousins Properties, Inc.		93,189		959
CubeSmart		74,166		1,323
CYS Investments, Inc.		97,699		794
DCT Industrial Trust, Inc.		161,732		1,163
DiamondRock Hospitality Co.		108,661		1,159
DuPont Fabros Technology, Inc.		34,640		893
Dynex Capital, Inc.		30,351		266
EastGroup Properties, Inc.		16,796		995
Education Realty Trust, Inc.		63,817		581
Ellington Residential Mortgage REIT		3,617		56
EPR Properties		26,143		1,274
Equity One, Inc.		33,264		727
Excel Trust, Inc.		26,588		319
FelCor Lodging Trust, Inc. *		69,393		427
First Industrial Realty Trust, Inc.		59,758		972
First Potomac Realty Trust		32,605		410
Franklin Street Properties Corp.		49,709		633
Geo Group (The), Inc.		39,856		1,325
Getty Realty Corp.		13,905		270
Gladstone Commercial Corp.		7,024		126
Glimcher Realty Trust		80,151		781
Government Properties Income Trust		30,285		725
Gramercy Property Trust, Inc. *		33,350		138

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 90 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Real Estate Investment Trusts – 7.4% – continued
Healthcare Realty Trust, Inc.		53,202		$1,230
Hersha Hospitality Trust		111,943		626
Highwoods Properties, Inc.		50,034		1,767
Hudson Pacific Properties, Inc.		23,789		463
Inland Real Estate Corp.		46,879		480
Invesco Mortgage Capital, Inc.		75,015		1,154
Investors Real Estate Trust		55,457		458
iStar Financial, Inc. *		47,606		573
JAVELIN Mortgage Investment Corp.		7,365		87
Kite Realty Group Trust		51,345		304
LaSalle Hotel Properties		53,130		1,515
Lexington Realty Trust		93,906		1,055
LTC Properties, Inc.		19,285		732
Medical Properties Trust, Inc.		89,667		1,091
Monmouth Real Estate Investment Corp., Class A		22,783		207
MPG Office Trust, Inc. *		32,200		101
National Health Investors, Inc.		13,628		775
New Residential Investment Corp.		140,599		931
New York Mortgage Trust, Inc.		35,971		225
NorthStar Realty Finance Corp.		133,137		1,236
One Liberty Properties, Inc.		6,594		134
Parkway Properties, Inc.		24,451		435
Pebblebrook Hotel Trust		34,000		976
Pennsylvania Real Estate Investment Trust		37,751		706
PennyMac Mortgage Investment Trust		39,464		895
Physicians Realty Trust *		6,534		79
Potlatch Corp.		22,492		893
PS Business Parks, Inc.		10,105		754
RAIT Financial Trust		39,534		280
Ramco-Gershenson Properties Trust		32,924		507
Redwood Trust, Inc.		45,608		898
Resource Capital Corp.		69,946		415
Retail Opportunity Investments Corp.		39,946		552
Rexford Industrial Realty, Inc. *		9,409		127
RLJ Lodging Trust		68,887		1,618
Rouse Properties, Inc.		12,292		253
Ryman Hospitality Properties, Inc.		24,494		845
Sabra Health Care REIT, Inc.		20,903		481
Saul Centers, Inc.		4,323		200
Select Income REIT		12,280		317
Silver Bay Realty Trust Corp.		8,560		134
Sovran Self Storage, Inc.		17,469		1,322
STAG Industrial, Inc.		23,485		473
Strategic Hotels & Resorts, Inc. *		100,919		876

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Real Estate Investment Trusts – 7.4% – continued
Summit Hotel Properties, Inc.		44,378		$408
Sun Communities, Inc.		19,837		845
Sunstone Hotel Investors, Inc.		90,491		1,153
Terreno Realty Corp.		14,018		249
UMH Properties, Inc.		8,155		81
Universal Health Realty Income Trust		6,544		274
Urstadt Biddle Properties, Inc., Class A		13,953		277
Washington Real Estate Investment Trust		36,778		929
Western Asset Mortgage Capital Corp.		13,656		218
Whitestone REIT		9,565		141
Winthrop Realty Trust		15,875		177
				63,703
Retail – 6.3%
Aeropostale, Inc. *		44,079		414
AFC Enterprises, Inc. *		13,414		585
America’s Car-Mart, Inc. *		4,575		206
ANN, Inc. *		26,223		950
Asbury Automotive Group, Inc. *		17,306		921
Barnes & Noble, Inc. *		22,704		294
bebe stores, Inc.		18,616		113
Big 5 Sporting Goods Corp.		9,352		150
Biglari Holdings, Inc. *		802		331
BJ’s Restaurants, Inc. *		13,637		392
Bloomin’ Brands, Inc. *		30,646		724
Bob Evans Farms, Inc.		15,464		886
Body Central Corp. *		9,563		58
Bon-Ton Stores (The), Inc.		7,594		80
Bravo Brio Restaurant Group, Inc. *		11,064		167
Brown Shoe Co., Inc.		23,890		561
Buckle (The), Inc.		15,488		837
Buffalo Wild Wings, Inc. *		10,451		1,162
Carrols Restaurant Group, Inc. *		13,309		81
Casey’s General Stores, Inc.		21,318		1,567
Cash America International, Inc.		15,805		716
Cato (The) Corp., Class A		15,173		425
CEC Entertainment, Inc.		9,988		458
Cheesecake Factory (The), Inc.		29,714		1,306
Children’s Place Retail Stores (The), Inc. *		12,790		740
Christopher & Banks Corp. *		20,382		147
Chuy’s Holdings, Inc. *		9,120		327
Citi Trends, Inc. *		8,901		156
Conn’s, Inc. *		12,422		622
Cracker Barrel Old Country Store, Inc.		10,937		1,129
Del Frisco’s Restaurant Group, Inc. *		6,009		121

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 91 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Retail – 6.3% – continued
Denny’s Corp. *		51,539		$315
Destination Maternity Corp.		7,440		237
Destination XL Group, Inc. *		23,263		150
DineEquity, Inc.		9,130		630
Diversified Restaurant Holdings, Inc. *		6,026		39
Einstein Noah Restaurant Group, Inc.		3,305		57
Express, Inc. *		47,477		1,120
Ezcorp, Inc., Class A *		28,121		475
Fiesta Restaurant Group, Inc. *		11,139		419
Fifth & Pacific Cos., Inc. *		66,782		1,678
Finish Line (The), Inc., Class A		27,189		676
First Cash Financial Services, Inc. *		16,229		940
Five Below, Inc. *		18,170		795
Francesca’s Holdings Corp. *		24,737		461
Fred’s, Inc., Class A		20,070		314
Genesco, Inc. *		13,324		874
Gordmans Stores, Inc.		4,901		55
Group 1 Automotive, Inc.		12,087		939
Haverty Furniture Cos., Inc.		10,825		266
hhgregg, Inc. *		7,208		129
Hibbett Sports, Inc. *		14,403		809
HSN, Inc.		18,796		1,008
Ignite Restaurant Group, Inc. *		3,944		61
Jack in the Box, Inc. *		24,672		987
Jamba, Inc. *		9,297		124
Jos A Bank Clothiers, Inc. *		15,494		681
Kirkland’s, Inc. *		7,572		140
Krispy Kreme Doughnuts, Inc. *		36,263		701
Lithia Motors, Inc., Class A		12,314		898
Luby’s, Inc. *		10,946		79
Lumber Liquidators Holdings, Inc. *		15,293		1,631
MarineMax, Inc. *		13,104		160
Mattress Firm Holding Corp. *		7,544		240
Men’s Wearhouse (The), Inc.		27,924		951
Nathan’s Famous, Inc. *		1,539		81
New York & Co., Inc. *		15,940		92
Noodles & Co. *		3,425		146
Office Depot, Inc. *		138,243		668
OfficeMax, Inc.		48,030		614
Pacific Sunwear of California, Inc. *		25,918		78
Pantry (The), Inc. *		12,800		142
Papa John’s International, Inc.		8,853		619
PC Connection, Inc.		5,291		80
Penske Automotive Group, Inc.		23,424		1,001

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Retail – 6.3% – continued
Pep Boys-Manny Moe & Jack (The) *		29,672		$370
PetMed Express, Inc.		10,955		178
Pier 1 Imports, Inc.		52,725		1,029
Pricesmart, Inc.		10,484		998
RadioShack Corp. *		56,794		194
Red Robin Gourmet Burgers, Inc. *		7,956		566
Regis Corp.		26,077		383
Restoration Hardware Holdings, Inc. *		9,804		621
Rite Aid Corp. *		406,352		1,934
Roundy’s, Inc.		14,167		122
Ruby Tuesday, Inc. *		34,241		257
rue21, Inc. *		8,234		332
Rush Enterprises, Inc., Class A *		19,113		507
Ruth’s Hospitality Group, Inc.		20,186		239
Saks, Inc. *		57,762		921
Sears Hometown and Outlet Stores, Inc. *		4,861		154
Shoe Carnival, Inc.		8,277		224
Sonic Automotive, Inc., Class A		21,404		509
Sonic Corp. *		31,556		560
Stage Stores, Inc.		18,422		354
Stein Mart, Inc.		15,294		210
Susser Holdings Corp. *		9,943		528
Systemax, Inc.		6,376		59
Texas Roadhouse, Inc.		34,794		914
Tile Shop Holdings, Inc. *		10,364		306
Tilly’s, Inc., Class A *		5,772		84
Trans World Entertainment Corp.		5,913		27
Tuesday Morning Corp. *		24,007		367
Vera Bradley, Inc. *		12,143		250
Vitamin Shoppe, Inc. *		16,815		736
West Marine, Inc. *		9,495		116
Wet Seal (The), Inc., Class A *		49,795		196
Winmark Corp.		1,249		92
Zale Corp. *		18,245		277
Zumiez, Inc. *		11,858		326
				54,126
Savings & Loans – 1.2%
Astoria Financial Corp.		49,344		614
Banc of California, Inc.		9,156		127
Bank Mutual Corp.		26,790		168
BankFinancial Corp.		11,884		106
BBX Capital Corp., Class A *		4,050		58
Beneficial Mutual Bancorp, Inc. *		17,969		179
Berkshire Hills Bancorp, Inc.		13,763		346

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 92 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Savings & Loans – 1.2% – continued
BofI Holding, Inc. *		6,799		$441
Brookline Bancorp, Inc.		38,351		361
Capitol Federal Financial, Inc.		82,287		1,023
Charter Financial Corp.		12,760		138
Clifton Savings Bancorp, Inc.		4,888		61
Dime Community Bancshares, Inc.		17,948		299
ESB Financial Corp.		7,212		92
ESSA Bancorp, Inc.		5,178		54
EverBank Financial Corp.		44,560		668
First Defiance Financial Corp.		5,336		125
First Federal Bancshares of Arkansas, Inc. *		1,686		16
First Financial Northwest, Inc.		8,344		87
Flagstar Bancorp, Inc. *		11,157		165
Flushing Financial Corp.		17,037		314
Fox Chase Bancorp, Inc.		6,840		119
Hingham Institution for Savings		777		54
Home Bancorp, Inc. *		3,770		68
Home Federal Bancorp, Inc.		8,545		107
HomeStreet, Inc.		7,280		140
HomeTrust Bancshares, Inc. *		11,490		190
Investors Bancorp, Inc.		24,494		536
Kearny Financial Corp. *		8,060		82
Meridian Interstate Bancorp, Inc. *		4,589		100
Meta Financial Group, Inc.		3,083		117
NASB Financial, Inc. *		2,385		65
Northfield Bancorp, Inc.		31,851		387
Northwest Bancshares, Inc.		51,929		686
OceanFirst Financial Corp.		7,745		131
Oritani Financial Corp.		25,221		415
Pacific Premier Bancorp, Inc. *		8,666		116
Provident Financial Holdings, Inc.		5,159		86
Provident Financial Services, Inc.		32,690		530
Provident New York Bancorp		24,920		271
Rockville Financial, Inc.		15,418		200
Roma Financial Corp. *		3,823		71
Territorial Bancorp, Inc.		5,966		131
United Community Financial Corp. *		22,265		87
United Financial Bancorp, Inc.		10,769		174
Waterstone Financial, Inc. *		4,584		47
Westfield Financial, Inc.		10,753		76
WSFS Financial Corp.		4,431		267
				10,695
Semiconductors – 3.1%
Aeroflex Holding Corp. *		10,810		76

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Semiconductors – 3.1% – continued
Alpha & Omega Semiconductor Ltd. *		9,649		$81
Ambarella, Inc. *		10,401		203
Amkor Technology, Inc. *		36,091		155
ANADIGICS, Inc. *		46,297		91
Applied Micro Circuits Corp. *		38,052		491
ATMI, Inc. *		17,935		476
Axcelis Technologies, Inc. *		58,124		123
Brooks Automation, Inc.		37,149		346
Cabot Microelectronics Corp. *		12,821		494
Cavium, Inc. *		28,601		1,178
Ceva, Inc. *		12,452		215
Cirrus Logic, Inc. *		35,197		798
Cohu, Inc.		14,090		154
Cypress Semiconductor Corp. *		81,774		764
Diodes, Inc. *		19,770		484
DSP Group, Inc. *		11,134		79
Emulex Corp. *		51,094		397
Entegris, Inc. *		77,600		788
Entropic Communications, Inc. *		50,209		220
Exar Corp. *		21,211		284
FormFactor, Inc. *		30,353		208
GSI Technology, Inc. *		12,100		85
GT Advanced Technologies, Inc. *		66,990		570
Hittite Microwave Corp. *		17,560		1,148
Inphi Corp. *		14,663		197
Integrated Device Technology, Inc. *		73,032		688
Integrated Silicon Solution, Inc. *		16,007		174
Intermolecular, Inc. *		10,273		57
International Rectifier Corp. *		38,662		958
Intersil Corp., Class A		70,816		795
IXYS Corp.		13,352		129
Kopin Corp. *		36,555		147
Lattice Semiconductor Corp. *		64,471		288
LTX-Credence Corp. *		26,731		176
MaxLinear, Inc., Class A *		12,463		103
Micrel, Inc.		26,241		239
Microsemi Corp. *		51,725		1,254
Mindspeed Technologies, Inc. *		24,327		74
MKS Instruments, Inc.		29,276		778
Monolithic Power Systems, Inc.		20,363		617
MoSys, Inc. *		26,452		98
Nanometrics, Inc. *		12,685		204
OmniVision Technologies, Inc. *		30,343		465
Peregrine Semiconductor Corp. *		14,864		133

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 93 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Semiconductors – 3.1% – continued
Pericom Semiconductor Corp. *		12,602		$98
Photronics, Inc. *		34,009		266
PLX Technology, Inc. *		24,912		150
PMC - Sierra, Inc. *		113,139		749
Power Integrations, Inc.		16,111		872
QLogic Corp. *		49,095		537
Rambus, Inc. *		62,390		586
Richardson Electronics Ltd.		7,221		82
Rubicon Technology, Inc. *		10,216		124
Rudolph Technologies, Inc. *		18,340		209
Semtech Corp. *		37,505		1,125
Sigma Designs, Inc. *		17,250		96
Silicon Image, Inc. *		43,025		230
SunEdison, Inc. *		148,144		1,181
Supertex, Inc.		5,545		141
Tessera Technologies, Inc.		29,269		566
TriQuint Semiconductor, Inc. *		90,522		736
Ultra Clean Holdings, Inc. *		13,454		93
Ultratech, Inc. *		15,293		463
Veeco Instruments, Inc. *		21,699		808
Volterra Semiconductor Corp. *		13,764		317
				26,911
Software – 5.0%
Accelrys, Inc. *		31,164		307
ACI Worldwide, Inc. *		22,139		1,197
Actuate Corp. *		26,392		194
Acxiom Corp. *		41,074		1,166
Advent Software, Inc.		18,346		582
American Software, Inc., Class A		13,679		117
Aspen Technology, Inc. *		52,156		1,802
athenahealth, Inc. *		20,428		2,218
Audience, Inc. *		5,408		61
AVG Technologies N.V. *		13,453		322
Avid Technology, Inc. *		16,384		98
Benefitfocus, Inc. *		55		3
Blackbaud, Inc.		25,267		986
Bottomline Technologies de, Inc. *		20,881		582
Callidus Software, Inc. *		20,666		190
CommVault Systems, Inc. *		25,850		2,270
Computer Programs & Systems, Inc.		6,187		362
Cornerstone OnDemand, Inc. *		22,458		1,155
CSG Systems International, Inc.		18,841		472
Cvent, Inc. *		3,580		126
Demandware, Inc. *		9,040		419

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Software – 5.0% – continued
Digi International, Inc. *		14,052		$141
Digital River, Inc. *		19,827		354
E2open, Inc. *		8,297		186
Ebix, Inc.		17,471		174
Envestnet, Inc. *		12,694		394
EPAM Systems, Inc. *		12,290		424
Epiq Systems, Inc.		17,203		227
Fair Isaac Corp.		19,889		1,099
Glu Mobile, Inc. *		30,001		84
Greenway Medical Technologies *		8,121		168
Guidance Software, Inc. *		9,426		85
Guidewire Software, Inc. *		23,327		1,099
Imperva, Inc. *		11,349		477
inContact, Inc. *		30,010		248
Infoblox, Inc. *		27,849		1,165
InnerWorkings, Inc. *		24,920		245
Interactive Intelligence Group, Inc. *		8,538		542
Jive Software, Inc. *		22,251		278
ManTech International Corp., Class A		13,241		381
MedAssets, Inc. *		33,803		859
Medidata Solutions, Inc. *		14,790		1,463
MicroStrategy, Inc., Class A *		4,981		517
Model N, Inc. *		4,561		45
Monotype Imaging Holdings, Inc.		21,092		605
Omnicell, Inc. *		19,289		457
PDF Solutions, Inc. *		14,203		302
Pegasystems, Inc.		9,762		389
Planet Payment, Inc. *		23,938		61
Progress Software Corp. *		30,564		791
Proofpoint, Inc. *		12,263		394
PROS Holdings, Inc. *		12,634		432
PTC, Inc. *		66,500		1,891
QAD, Inc., Class A		3,181		43
Qlik Technologies, Inc. *		48,424		1,658
Quality Systems, Inc.		22,381		486
Rally Software Development Corp. *		3,878		116
RealPage, Inc. *		25,683		595
Rocket Fuel, Inc. *		277		15
Rosetta Stone, Inc. *		6,462		105
Sapiens International Corp. N.V.		10,109		61
Schawk, Inc.		7,577		112
SciQuest, Inc. *		12,805		288
Seachange International, Inc. *		18,389		211
SS&C Technologies Holdings, Inc. *		32,408		1,235

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 94 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Software – 5.0% – continued
Synchronoss Technologies, Inc. *		16,081		$612
SYNNEX Corp. *		14,616		898
Take-Two Interactive Software, Inc. *		44,957		816
Tangoe, Inc. *		17,104		408
Tyler Technologies, Inc. *		17,539		1,534
Ultimate Software Group (The), Inc. *		15,376		2,266
Verint Systems, Inc. *		29,276		1,085
				43,150
Storage/Warehousing – 0.1%
Mobile Mini, Inc. *		21,301		726
Wesco Aircraft Holdings, Inc. *		23,138		484
				1,210
Telecommunications – 3.2%
8x8, Inc. *		39,973		403
ADTRAN, Inc.		32,972		878
Alliance Fiber Optic Products, Inc.		6,472		133
Anaren, Inc. *		6,524		166
Anixter International, Inc. *		15,100		1,324
ARRIS Group, Inc. *		64,742		1,105
Aruba Networks, Inc. *		63,368		1,054
Atlantic Tele-Network, Inc.		5,111		266
Aviat Networks, Inc. *		33,395		86
Black Box Corp.		9,071		278
CalAmp Corp. *		19,468		343
Calix, Inc. *		22,514		287
Cbeyond, Inc. *		15,713		101
Ciena Corp. *		56,457		1,410
Cincinnati Bell, Inc. *		116,920		318
Comtech Telecommunications Corp.		9,271		225
Comverse, Inc. *		12,262		392
Consolidated Communications Holdings, Inc.		22,379		386
Cyan, Inc. *		4,494		45
DigitalGlobe, Inc. *		41,444		1,310
EarthLink, Inc.		57,950		287
Extreme Networks, Inc. *		51,053		267
Fairpoint Communications, Inc. *		11,308		108
Finisar Corp. *		51,984		1,176
General Communication, Inc., Class A *		17,710		169
Gigamon, Inc. *		4,317		167
Globecomm Systems, Inc. *		13,201		185
Gogo, Inc. *		6,116		109
Harmonic, Inc. *		56,833		437
Hawaiian Telcom Holdco, Inc. *		5,518		147

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Telecommunications – 3.2% – continued
HickoryTech Corp.		7,703		$88
IDT Corp., Class B		8,750		155
Infinera Corp. *		64,311		727
Inteliquent, Inc.		17,680		171
InterDigital, Inc.		22,869		854
Iridium Communications, Inc. *		36,106		248
Ixia *		31,088		487
KVH Industries, Inc. *		8,894		123
Leap Wireless International, Inc. *		30,013		474
LogMeIn, Inc. *		13,338		414
Loral Space & Communications, Inc.		7,167		485
Lumos Networks Corp.		8,922		193
Neonode, Inc. *		13,372		86
NeoPhotonics Corp. *		11,360		84
NETGEAR, Inc. *		21,363		659
NII Holdings, Inc. *		95,144		578
NTELOS Holdings Corp.		8,727		164
Numerex Corp., Class A *		7,867		86
Oplink Communications, Inc. *		10,451		197
ORBCOMM, Inc. *		20,435		108
Parkervision, Inc. *		49,770		167
Plantronics, Inc.		24,048		1,107
Preformed Line Products Co.		1,379		99
Premiere Global Services, Inc. *		27,056		270
Primus Telecommunications Group, Inc.		6,490		22
Procera Networks, Inc. *		11,601		180
RF Micro Devices, Inc. *		157,177		886
RigNet, Inc. *		6,665		241
Ruckus Wireless, Inc. *		24,472		412
Shenandoah Telecommunications Co.		13,501		325
ShoreTel, Inc. *		33,101		200
Sonus Networks, Inc. *		120,451		407
Straight Path Communications, Inc., Class B *		4,375		23
Symmetricom, Inc. *		23,005		111
Telenav, Inc. *		10,760		63
Tellabs, Inc.		199,918		454
Tessco Technologies, Inc.		3,040		102
Ubiquiti Networks, Inc.		7,081		238
USA Mobility, Inc.		12,055		171
ViaSat, Inc. *		21,994		1,402
Vonage Holdings Corp. *		85,703		269
Vringo, Inc. *		37,706		109
West Corp.		11,970		265

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 95 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Telecommunications – 3.2% – continued
Westell Technologies, Inc., Class A *		23,237		$78
				27,544
Textiles – 0.2%
Culp, Inc.		4,744		89
G&K Services, Inc., Class A		10,800		652
UniFirst Corp.		8,119		848
				1,589
Toys, Games & Hobbies – 0.0%
JAKKS Pacific, Inc.		10,817		48
LeapFrog Enterprises, Inc. *		35,836		338
				386
Transportation – 1.6%
Air Transport Services Group, Inc. *		28,303		212
Arkansas Best Corp.		14,420		370
Atlas Air Worldwide Holdings, Inc. *		14,294		659
Bristow Group, Inc.		20,108		1,463
CAI International, Inc. *		9,647		225
Celadon Group, Inc.		11,472		214
Echo Global Logistics, Inc. *		10,005		210
Era Group, Inc. *		11,317		308
Forward Air Corp.		16,663		672
Frontline Ltd. *		27,384		73
GasLog Ltd.		14,455		216
Gulfmark Offshore, Inc., Class A		14,932		760
Heartland Express, Inc.		25,729		365
Hub Group, Inc., Class A *		20,401		800
International Shipholding Corp.		3,219		88
Knight Transportation, Inc.		32,603		539
Knightsbridge Tankers Ltd.		13,478		137
Marten Transport Ltd.		13,061		224
Matson, Inc.		23,616		619
Nordic American Tankers Ltd.		37,168		306
Pacer International, Inc. *		20,426		126
Patriot Transportation Holding, Inc. *		3,778		128
PHI, Inc. (Non Voting) *		7,074		267
Quality Distribution, Inc. *		11,538		107
Roadrunner Transportation Systems, Inc. *		9,905		280
Saia, Inc. *		13,533		422
Scorpio Tankers, Inc.		102,432		1,000
Ship Finance International Ltd.		31,385		479
Swift Transportation Co. *		46,581		940
Teekay Tankers Ltd., Class A		33,398		88
Ultrapetrol Bahamas Ltd. *		12,015		45

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 99.6% – continued
Transportation – 1.6% – continued
Universal Truckload Services, Inc.		3,156		$84
UTi Worldwide, Inc.		50,342		761
Werner Enterprises, Inc.		25,645		598
XPO Logistics, Inc. *		16,446		356
YRC Worldwide, Inc. *		5,282		89
				14,230
Trucking & Leasing – 0.2%
Greenbrier Cos., Inc. *		13,732		340
TAL International Group, Inc.		18,784		878
Textainer Group Holdings Ltd.		11,968		453
				1,671
Water – 0.3%
American States Water Co.		21,644		597
Artesian Resources Corp., Class A		4,277		95
California Water Service Group		26,179		532
Connecticut Water Service, Inc.		6,171		198
Consolidated Water Co. Ltd.		8,400		126
Middlesex Water Co.		8,838		189
PICO Holdings, Inc. *		12,510		271
SJW Corp.		8,606		241
York Water Co.		7,514		151
				2,400
Total Common Stocks
(Cost $628,460)				863,143
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%
Savings & Loans – 0.0%
CSF Holdings, Inc. (2)*		6,212		–
Total Rights
(Cost $ – )				–

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 96 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF WARRANTS		VALUE (000s)
WARRANTS – 0.0%
Mangnum Hunter Resources Corp., Exp. 10/14/13, Strike $10.50 *		3,459		$ –
Tejon Ranch Co., Exp. 8/31/16, Strike $40.00 *		1,122		3
Total Warrants
(Cost $7)				3
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 0.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (3)(4)		7,359,055		$7,359
Total Investment Companies
(Cost $7,359)				7,359
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.3%
U.S. Treasury Bill, 0.08%, 10/17/13 (5)		$2,555		$2,555
Total Short-Term Investments
(Cost $2,555)				2,555
Total Investments – 100.7%
(Cost $638,381)				873,060
Liabilities less Other Assets – (0.7)%				(6,497	)
NET ASSETS – 100.0%				$866,563

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

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

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $21,866,000 with net sales of approximately $14,507,000 during the six months ended September 30, 2013.

(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 September 30, 2013, 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		34		$3,643		Long		12/13		$91

At September 30, 2013, the industry sectors for the Small Cap Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		13.9%
Consumer Staples		4.0
Energy		5.6
Financials		22.4
Health Care		13.0
Industrials		14.4
Information Technology		18.1
Materials		4.8
Telecommunication Services		0.8
Utilities		3.0
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$863,143	(1)		$ –		$–		$863,143
Rights		–	*		–		–		–	*
Warrants		3			–		–		3
Investment Companies		7,359			–		–		7,359
Short-Term Investments		–			2,555		–		2,555
Total Investments		$870,505			$2,555		$–		$873,060
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$91			$ –		$–		$91

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

* Amount rounds to less than one thousand.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 97 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 98 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9%
Advertising – 0.2%
Interpublic Group of (The) Cos., Inc.		140,463		$2,413
Omnicom Group, Inc.		85,630		5,432
				7,845
Aerospace/Defense – 2.0%
Boeing (The) Co.		231,919		27,250
General Dynamics Corp.		111,330		9,744
L-3 Communications Holdings, Inc.		30,045		2,839
Lockheed Martin Corp.		90,035		11,484
Northrop Grumman Corp.		76,892		7,325
Raytheon Co.		107,736		8,303
Rockwell Collins, Inc.		45,325		3,076
United Technologies Corp.		282,207		30,428
				100,449
Agriculture – 1.8%
Altria Group, Inc.		669,027		22,981
Archer-Daniels-Midland Co.		219,941		8,103
Lorillard, Inc.		125,016		5,598
Philip Morris International, Inc.		540,872		46,834
Reynolds American, Inc.		106,316		5,186
				88,702
Airlines – 0.2%
Delta Air Lines, Inc.		286,659		6,762
Southwest Airlines Co.		235,967		3,436
				10,198
Apparel – 0.5%
NIKE, Inc., Class B		249,907		18,153
Ralph Lauren Corp.		20,341		3,351
VF Corp.		29,270		5,826
				27,330
Auto Manufacturers – 0.8%
Ford Motor Co.		1,316,614		22,211
General Motors Co. *		314,550		11,315
PACCAR, Inc.		118,004		6,568
				40,094
Auto Parts & Equipment – 0.4%
BorgWarner, Inc.		38,080		3,861
Delphi Automotive PLC		94,473		5,519
Goodyear Tire & Rubber (The) Co. *		81,516		1,830
Johnson Controls, Inc.		228,573		9,486
				20,696

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Banks – 7.5%
Bank of America Corp.		3,590,762		$49,552
Bank of New York Mellon (The) Corp.		385,088		11,626
BB&T Corp.		235,750		7,957
Capital One Financial Corp.		195,657		13,449
Citigroup, Inc.		1,016,414		49,306
Comerica, Inc.		62,398		2,453
Fifth Third Bancorp		296,379		5,347
Goldman Sachs Group (The), Inc.		139,666		22,097
Huntington Bancshares, Inc.		278,858		2,303
JPMorgan Chase & Co.		1,258,091		65,031
KeyCorp		303,502		3,460
M&T Bank Corp.		43,456		4,864
Morgan Stanley		464,967		12,531
Northern Trust Corp. (1)(2)		71,137		3,869
PNC Financial Services Group (The), Inc.		177,584		12,866
Regions Financial Corp.		466,684		4,321
State Street Corp.		149,267		9,814
SunTrust Banks, Inc.		179,936		5,833
US Bancorp		614,484		22,478
Wells Fargo & Co.		1,614,520		66,712
Zions Bancorporation		62,102		1,703
				377,572
Beverages – 2.2%
Beam, Inc.		54,449		3,520
Brown-Forman Corp., Class B		54,304		3,700
Coca-Cola (The) Co.		1,274,030		48,260
Coca-Cola Enterprises, Inc.		83,125		3,343
Constellation Brands, Inc., Class A *		55,457		3,183
Dr. Pepper Snapple Group, Inc.		68,130		3,054
Molson Coors Brewing Co., Class B		52,404		2,627
Monster Beverage Corp. *		45,327		2,368
PepsiCo, Inc.		515,347		40,970
				111,025
Biotechnology – 2.4%
Alexion Pharmaceuticals, Inc. *		65,552		7,614
Amgen, Inc.		251,743		28,180
Biogen Idec, Inc. *		79,418		19,121
Celgene Corp. *		137,407		21,151
Gilead Sciences, Inc. *		511,436		32,139
Regeneron Pharmaceuticals, Inc. *		26,066		8,155
Vertex Pharmaceuticals, Inc. *		77,789		5,898
				122,258

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 99 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Building Materials – 0.1%
Masco Corp.		119,044		$2,533
Vulcan Materials Co.		43,009		2,229
				4,762
Chemicals – 2.5%
Air Products & Chemicals, Inc.		70,079		7,468
Airgas, Inc.		22,040		2,337
CF Industries Holdings, Inc.		19,151		4,038
Dow Chemical (The) Co.		404,798		15,544
E.I. du Pont de Nemours & Co.		308,606		18,072
Eastman Chemical Co.		51,740		4,031
Ecolab, Inc.		90,644		8,952
FMC Corp.		45,446		3,260
International Flavors & Fragrances, Inc.		27,215		2,240
LyondellBasell Industries N.V., Class A		149,734		10,965
Monsanto Co.		178,118		18,590
Mosaic (The) Co.		113,883		4,899
PPG Industries, Inc.		47,894		8,001
Praxair, Inc.		98,687		11,863
Sherwin-Williams (The) Co.		29,176		5,315
Sigma-Aldrich Corp.		40,206		3,430
				129,005
Coal – 0.1%
CONSOL Energy, Inc.		76,306		2,568
Peabody Energy Corp.		90,311		1,558
				4,126
Commercial Services – 1.3%
ADT (The) Corp.		66,899		2,720
Automatic Data Processing, Inc.		161,340		11,678
Cintas Corp.		34,407		1,762
Equifax, Inc.		40,190		2,405
H&R Block, Inc.		90,960		2,425
Iron Mountain, Inc.		56,900		1,538
Mastercard, Inc., Class A		34,673		23,327
McGraw Hill Financial, Inc.		92,236		6,050
Moody’s Corp.		64,707		4,551
Quanta Services, Inc. *		70,746		1,946
Robert Half International, Inc.		46,867		1,829
Total System Services, Inc.		55,960		1,646
Western Union (The) Co.		183,404		3,422
				65,299
Computers – 5.8%
Accenture PLC, Class A		215,531		15,872
Apple, Inc.		303,625		144,753

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Computers – 5.8% – continued
Cognizant Technology Solutions Corp., Class A *		100,634		$8,264
Computer Sciences Corp.		49,177		2,544
Dell, Inc.		489,826		6,745
EMC Corp.		695,685		17,782
Hewlett-Packard Co.		641,236		13,453
International Business Machines Corp.		344,130		63,726
NetApp, Inc.		113,502		4,838
SanDisk Corp.		80,373		4,783
Seagate Technology PLC		103,817		4,541
Teradata Corp. *		54,513		3,022
Western Digital Corp.		70,225		4,452
				294,775
Cosmetics/Personal Care – 1.9%
Avon Products, Inc.		144,520		2,977
Colgate-Palmolive Co.		294,686		17,475
Estee Lauder (The) Cos., Inc., Class A		85,461		5,974
Procter & Gamble (The) Co.		915,334		69,190
				95,616
Distribution/Wholesale – 0.3%
Fastenal Co.		91,286		4,587
Fossil Group, Inc. *		16,793		1,952
Genuine Parts Co.		51,745		4,186
WW Grainger, Inc.		20,676		5,411
				16,136
Diversified Financial Services – 2.6%
American Express Co.		310,056		23,416
Ameriprise Financial, Inc.		66,329		6,041
BlackRock, Inc.		42,108		11,395
Charles Schwab (The) Corp.		386,701		8,175
CME Group, Inc.		105,079		7,763
Discover Financial Services		161,711		8,173
E*TRADE Financial Corp. *		96,480		1,592
Franklin Resources, Inc.		135,943		6,872
IntercontinentalExchange, Inc. *		24,279		4,405
Invesco Ltd.		148,485		4,737
Legg Mason, Inc.		36,070		1,206
NASDAQ OMX Group (The), Inc.		38,713		1,242
NYSE Euronext		81,094		3,404
SLM Corp.		145,871		3,632
T Rowe Price Group, Inc.		87,306		6,280
Visa, Inc., Class A		172,520		32,969
				131,302

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 100 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Electric – 2.8%
AES Corp.		206,523		$2,745
Ameren Corp.		80,956		2,821
American Electric Power Co., Inc.		163,243		7,077
CMS Energy Corp.		88,587		2,332
Consolidated Edison, Inc.		97,742		5,389
Dominion Resources, Inc.		193,574		12,094
DTE Energy Co.		58,751		3,876
Duke Energy Corp.		236,196		15,773
Edison International		108,700		5,007
Entergy Corp.		59,453		3,757
Exelon Corp.		287,143		8,511
FirstEnergy Corp.		139,541		5,086
Integrys Energy Group, Inc.		26,211		1,465
NextEra Energy, Inc.		142,285		11,406
Northeast Utilities		104,895		4,327
NRG Energy, Inc.		107,657		2,942
Pepco Holdings, Inc.		82,202		1,517
PG&E Corp.		149,024		6,098
Pinnacle West Capital Corp.		36,409		1,993
PPL Corp.		211,134		6,414
Public Service Enterprise Group, Inc.		168,713		5,556
SCANA Corp.		46,677		2,149
Southern (The) Co.		292,351		12,039
TECO Energy, Inc.		67,787		1,121
Wisconsin Energy Corp.		76,398		3,085
Xcel Energy, Inc.		165,949		4,582
				139,162
Electrical Components & Equipment – 0.4%
AMETEK, Inc.		81,808		3,765
Emerson Electric Co.		238,871		15,455
Molex, Inc.		45,921		1,769
				20,989
Electronics – 1.3%
Agilent Technologies, Inc.		110,566		5,666
Amphenol Corp., Class A		53,333		4,127
FLIR Systems, Inc.		47,766		1,500
Garmin Ltd.		41,211		1,862
Honeywell International, Inc.		261,971		21,754
Jabil Circuit, Inc.		61,096		1,325
PerkinElmer, Inc.		37,487		1,415
TE Connectivity Ltd.		138,617		7,178
Thermo Fisher Scientific, Inc.		120,488		11,103
Tyco International Ltd.		154,829		5,416

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Electronics – 1.3% – continued
Waters Corp. *		28,662		$3,044
				64,390
Engineering & Construction – 0.1%
Fluor Corp.		54,381		3,859
Jacobs Engineering Group, Inc. *		43,734		2,544
				6,403
Entertainment – 0.0%
International Game Technology		86,695		1,641
Environmental Control – 0.2%
Republic Services, Inc.		91,001		3,036
Stericycle, Inc. *		28,821		3,326
Waste Management, Inc.		145,390		5,996
				12,358
Food – 1.8%
Campbell Soup Co.		59,618		2,427
ConAgra Foods, Inc.		141,203		4,284
General Mills, Inc.		214,169		10,263
Hershey (The) Co.		50,055		4,630
Hormel Foods Corp.		45,456		1,915
JM Smucker (The) Co.		35,215		3,699
Kellogg Co.		86,092		5,056
Kraft Foods Group, Inc.		199,289		10,451
Kroger (The) Co.		173,597		7,003
McCormick & Co., Inc. (Non Voting)		44,075		2,852
Mondelez International, Inc., Class A		595,422		18,708
Safeway, Inc.		79,989		2,559
Sysco Corp.		196,683		6,260
Tyson Foods, Inc., Class A		93,110		2,633
Whole Foods Market, Inc.		124,511		7,284
				90,024
Forest Products & Paper – 0.2%
International Paper Co.		149,520		6,698
MeadWestvaco Corp.		59,065		2,267
				8,965
Gas – 0.3%
AGL Resources, Inc.		39,289		1,809
CenterPoint Energy, Inc.		142,997		3,428
NiSource, Inc.		104,190		3,218
Sempra Energy		75,937		6,500
				14,955

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 101 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Hand/Machine Tools – 0.1%
Snap-on, Inc.		19,463		$1,937
Stanley Black & Decker, Inc.		53,463		4,842
				6,779
Healthcare - Products – 1.8%
Baxter International, Inc.		181,546		11,926
Becton Dickinson and Co.		64,863		6,487
Boston Scientific Corp. *		450,261		5,286
CareFusion Corp. *		71,724		2,647
Covidien PLC		153,717		9,367
CR Bard, Inc.		26,480		3,050
DENTSPLY International, Inc.		47,243		2,051
Edwards Lifesciences Corp. *		37,698		2,625
Hospira, Inc. *		55,221		2,166
Intuitive Surgical, Inc. *		13,268		4,992
Life Technologies Corp. *		57,529		4,305
Medtronic, Inc.		333,347		17,751
Patterson Cos., Inc.		27,529		1,107
St. Jude Medical, Inc.		95,984		5,148
Stryker Corp.		98,500		6,658
Varian Medical Systems, Inc. *		36,188		2,704
Zimmer Holdings, Inc.		56,803		4,666
				92,936
Healthcare - Services – 1.3%
Aetna, Inc.		124,422		7,966
Cigna Corp.		94,606		7,271
DaVita HealthCare Partners, Inc. *		59,025		3,359
Humana, Inc.		52,044		4,857
Laboratory Corp. of America Holdings *		30,204		2,995
Quest Diagnostics, Inc.		50,868		3,143
Tenet Healthcare Corp. *		34,532		1,422
UnitedHealth Group, Inc.		339,676		24,324
WellPoint, Inc.		99,656		8,332
				63,669
Holding Companies - Diversified – 0.1%
Leucadia National Corp.		104,880		2,857
Home Builders - 0.1%
DR Horton, Inc.		95,117		1,848
Lennar Corp., Class A		55,110		1,951
PulteGroup, Inc.		116,977		1,930
				5,729
Home Furnishings – 0.1%
Harman International Industries, Inc.		22,779		1,509

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Home Furnishings – 0.1% – continued
Whirlpool Corp.		26,404		$3,866
				5,375
Household Products/Wares – 0.3%
Avery Dennison Corp.		32,945		1,434
Clorox (The) Co.		43,463		3,552
Kimberly-Clark Corp.		127,830		12,044
				17,030
Housewares – 0.1%
Newell Rubbermaid, Inc.		96,243		2,647
Insurance – 4.3%
ACE Ltd.		113,492		10,618
Aflac, Inc.		155,543		9,642
Allstate (The) Corp.		155,029		7,837
American International Group, Inc.		493,596		24,004
American International Group, Inc. - (Fractional Shares) *		81,909		–
Aon PLC		102,472		7,628
Assurant, Inc.		25,242		1,366
Berkshire Hathaway, Inc., Class B *		601,659		68,294
Chubb (The) Corp.		85,496		7,631
Cincinnati Financial Corp.		48,957		2,309
Genworth Financial, Inc., Class A *		164,516		2,104
Hartford Financial Services Group, Inc.		152,156		4,735
Lincoln National Corp.		88,452		3,714
Loews Corp.		102,547		4,793
Marsh & McLennan Cos., Inc.		183,698		8,000
MetLife, Inc.		374,293		17,573
Principal Financial Group, Inc.		92,036		3,941
Progressive (The) Corp.		185,147		5,042
Prudential Financial, Inc.		155,500		12,126
Torchmark Corp.		30,626		2,216
Travelers (The) Cos., Inc.		124,868		10,585
Unum Group		87,542		2,665
XL Group PLC		95,044		2,929
				219,752
Internet – 3.8%
Amazon.com, Inc. *		123,654		38,659
eBay, Inc. *		389,756		21,745
Expedia, Inc.		35,904		1,859
F5 Networks, Inc. *		26,075		2,236
Google, Inc., Class A *		93,489		81,888
Netflix, Inc. *		19,690		6,088
priceline.com, Inc. *		17,217		17,406

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 102 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Internet – 3.8% – continued
Symantec Corp.		232,694		$5,759
TripAdvisor, Inc. *		37,547		2,848
VeriSign, Inc. *		45,243		2,302
Yahoo!, Inc. *		316,310		10,489
				191,279
Iron/Steel – 0.2%
Allegheny Technologies, Inc.		35,337		1,078
Cliffs Natural Resources, Inc.		50,843		1,042
Nucor Corp.		107,136		5,252
United States Steel Corp.		47,732		983
				8,355
Leisure Time – 0.2%
Carnival Corp.		146,344		4,777
Harley-Davidson, Inc.		74,818		4,806
				9,583
Lodging – 0.3%
Marriott International, Inc., Class A		75,983		3,196
Starwood Hotels & Resorts Worldwide, Inc.		64,959		4,317
Wyndham Worldwide Corp.		44,456		2,710
Wynn Resorts Ltd.		27,024		4,270
				14,493
Machinery - Construction & Mining – 0.4%
Caterpillar, Inc.		212,707		17,734
Joy Global, Inc.		35,430		1,808
				19,542
Machinery - Diversified – 0.6%
Cummins, Inc.		58,227		7,736
Deere & Co.		128,024		10,420
Flowserve Corp.		46,964		2,930
Rockwell Automation, Inc.		46,145		4,935
Roper Industries, Inc.		33,077		4,395
Xylem, Inc.		61,484		1,717
				32,133
Media – 3.6%
Cablevision Systems Corp., Class A (New York Group)		71,772		1,209
CBS Corp., Class B (Non Voting)		188,003		10,370
Comcast Corp., Class A		874,115		39,466
DIRECTV *		170,640		10,196
Discovery Communications, Inc., Class A *		77,216		6,519
Gannett Co., Inc.		76,009		2,036

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Media – 3.6% – continued
News Corp. *		166,088		$2,667
Nielsen Holdings N.V.		71,920		2,621
Scripps Networks Interactive, Inc., Class A		36,654		2,863
Time Warner Cable, Inc.		95,519		10,660
Time Warner, Inc.		307,513		20,237
Twenty-First Century Fox, Inc.		664,343		22,256
Viacom, Inc., Class B		145,071		12,125
Walt Disney (The) Co.		555,232		35,807
Washington Post (The) Co., Class B		1,436		878
				179,910
Metal Fabrication/Hardware – 0.2%
Precision Castparts Corp.		48,618		11,048
Mining – 0.4%
Alcoa, Inc.		354,823		2,881
Freeport-McMoRan Copper & Gold, Inc.		347,326		11,489
Newmont Mining Corp.		165,759		4,658
				19,028
Miscellaneous Manufacturing – 3.4%
3M Co.		217,029		25,916
Danaher Corp.		199,976		13,862
Dover Corp.		57,089		5,128
Eaton Corp. PLC		158,594		10,918
General Electric Co.		3,403,491		81,309
Illinois Tool Works, Inc.		137,592		10,494
Ingersoll-Rand PLC		90,563		5,881
Leggett & Platt, Inc.		48,038		1,448
Pall Corp.		37,237		2,869
Parker Hannifin Corp.		49,817		5,416
Pentair Ltd. (Registered)		66,656		4,329
Textron, Inc.		94,423		2,607
				170,177
Office/Business Equipment – 0.1%
Pitney Bowes, Inc.		66,875		1,216
Xerox Corp.		387,952		3,992
				5,208
Oil & Gas – 8.2%
Anadarko Petroleum Corp.		168,087		15,630
Apache Corp.		134,990		11,493
Cabot Oil & Gas Corp.		140,696		5,251
Chesapeake Energy Corp.		169,472		4,386
Chevron Corp.		645,737		78,457
ConocoPhillips		408,866		28,420

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 103 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Oil & Gas – 8.2% – continued
Denbury Resources, Inc. *		124,698		$2,296
Devon Energy Corp.		127,663		7,374
Diamond Offshore Drilling, Inc.		23,419		1,459
Ensco PLC, Class A		77,837		4,184
EOG Resources, Inc.		91,077		15,418
EQT Corp.		50,218		4,455
Exxon Mobil Corp.		1,471,089		126,572
Helmerich & Payne, Inc.		35,575		2,453
Hess Corp.		96,484		7,462
Marathon Oil Corp.		237,913		8,298
Marathon Petroleum Corp.		104,662		6,732
Murphy Oil Corp.		58,802		3,547
Nabors Industries Ltd.		87,065		1,398
Newfield Exploration Co. *		46,014		1,259
Noble Corp.		84,605		3,196
Noble Energy, Inc.		119,888		8,034
Occidental Petroleum Corp.		269,378		25,198
Phillips 66		204,246		11,809
Pioneer Natural Resources Co.		46,308		8,743
QEP Resources, Inc.		59,403		1,645
Range Resources Corp.		54,449		4,132
Rowan Cos. PLC, Class A *		41,280		1,516
Southwestern Energy Co. *		117,373		4,270
Tesoro Corp.		45,180		1,987
Valero Energy Corp.		180,578		6,167
WPX Energy, Inc. *		66,441		1,280
				414,521
Oil & Gas Services – 1.6%
Baker Hughes, Inc.		148,543		7,293
Cameron International Corp. *		82,063		4,790
FMC Technologies, Inc. *		79,283		4,394
Halliburton Co.		282,712		13,613
National Oilwell Varco, Inc.		142,640		11,142
Schlumberger Ltd.		442,260		39,078
				80,310
Packaging & Containers – 0.1%
Ball Corp.		48,611		2,182
Bemis Co., Inc.		34,237		1,336
Owens-Illinois, Inc. *		55,008		1,651
Sealed Air Corp.		65,266		1,774
				6,943
Pharmaceuticals – 7.0%
Abbott Laboratories		518,755		17,217

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Pharmaceuticals – 7.0% – continued
AbbVie, Inc.		529,777		$23,697
Actavis, Inc. *		57,931		8,342
Allergan, Inc.		99,466		8,997
AmerisourceBergen Corp.		77,088		4,710
Bristol-Myers Squibb Co.		550,153		25,461
Cardinal Health, Inc.		113,149		5,901
Eli Lilly & Co.		331,748		16,697
Express Scripts Holding Co. *		272,414		16,830
Forest Laboratories, Inc. *		79,427		3,399
Johnson & Johnson		941,621		81,629
McKesson Corp.		76,420		9,805
Mead Johnson Nutrition Co.		67,563		5,017
Merck & Co., Inc.		977,915		46,558
Mylan, Inc. *		127,267		4,858
Perrigo Co.		31,457		3,881
Pfizer, Inc.		2,212,295		63,515
Zoetis, Inc.		166,865		5,193
				351,707
Pipelines – 0.5%
Kinder Morgan, Inc.		225,128		8,008
ONEOK, Inc.		68,809		3,669
Spectra Energy Corp.		223,365		7,646
Williams (The) Cos., Inc.		227,898		8,286
				27,609
Real Estate – 0.0%
CBRE Group, Inc., Class A *		92,976		2,150
Real Estate Investment Trusts – 1.9%
American Tower Corp.		131,978		9,783
Apartment Investment & Management Co., Class A		49,543		1,384
AvalonBay Communities, Inc.		40,598		5,160
Boston Properties, Inc.		51,107		5,463
Equity Residential		112,031		6,001
HCP, Inc.		151,713		6,213
Health Care REIT, Inc.		95,855		5,979
Host Hotels & Resorts, Inc.		251,421		4,443
Kimco Realty Corp.		136,656		2,758
Macerich (The) Co.		47,016		2,654
Plum Creek Timber Co., Inc.		54,475		2,551
Prologis, Inc.		166,398		6,260
Public Storage		48,201		7,739
Simon Property Group, Inc.		103,753		15,379
Ventas, Inc.		97,855		6,018

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 104 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Real Estate Investment Trusts – 1.9% – continued
Vornado Realty Trust		58,122		$4,886
Weyerhaeuser Co.		195,207		5,589
				98,260
Retail – 6.5%
Abercrombie & Fitch Co., Class A		25,557		904
AutoNation, Inc. *		21,506		1,122
AutoZone, Inc. *		11,870		5,018
Bed Bath & Beyond, Inc. *		72,964		5,644
Best Buy Co., Inc.		89,593		3,360
CarMax, Inc. *		74,944		3,632
Chipotle Mexican Grill, Inc. *		10,316		4,422
Coach, Inc.		93,801		5,115
Costco Wholesale Corp.		145,742		16,778
CVS Caremark Corp.		410,588		23,301
Darden Restaurants, Inc.		43,974		2,035
Dollar General Corp. *		99,486		5,617
Dollar Tree, Inc. *		74,726		4,271
Family Dollar Stores, Inc.		32,529		2,343
GameStop Corp., Class A		38,577		1,915
Gap (The), Inc.		92,210		3,714
Home Depot (The), Inc.		478,677		36,308
J.C. Penney Co., Inc. *		101,785		898
Kohl’s Corp.		68,034		3,521
L Brands, Inc.		81,383		4,972
Lowe’s Cos., Inc.		351,473		16,734
Macy’s, Inc.		125,747		5,441
McDonald’s Corp.		334,047		32,139
Nordstrom, Inc.		48,167		2,707
O’Reilly Automotive, Inc. *		36,271		4,628
PetSmart, Inc.		34,491		2,630
PVH Corp.		27,451		3,258
Ross Stores, Inc.		72,413		5,272
Staples, Inc.		221,533		3,245
Starbucks Corp.		251,095		19,327
Target Corp.		210,908		13,494
Tiffany & Co.		36,777		2,818
TJX Cos., Inc.		238,997		13,477
Urban Outfitters, Inc. *		37,138		1,365
Walgreen Co.		290,569		15,633
Wal-Mart Stores, Inc.		543,952		40,231
Yum! Brands, Inc.		149,121		10,646
				327,935

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Savings & Loans – 0.1%
Hudson City Bancorp, Inc.		158,587		$1,435
People’s United Financial, Inc.		108,249		1,557
				2,992
Semiconductors – 2.8%
Altera Corp.		106,722		3,966
Analog Devices, Inc.		104,316		4,908
Applied Materials, Inc.		400,718		7,029
Broadcom Corp., Class A		183,916		4,784
First Solar, Inc. *		23,226		934
Intel Corp.		1,665,153		38,165
KLA-Tencor Corp.		55,324		3,366
Lam Research Corp. *		54,242		2,777
Linear Technology Corp.		77,579		3,077
LSI Corp.		182,564		1,428
Microchip Technology, Inc.		65,588		2,642
Micron Technology, Inc. *		347,133		6,064
NVIDIA Corp.		192,574		2,996
QUALCOMM, Inc.		573,331		38,620
Teradyne, Inc. *		65,175		1,077
Texas Instruments, Inc.		368,244		14,829
Xilinx, Inc.		89,171		4,178
				140,840
Software – 3.7%
Adobe Systems, Inc. *		156,153		8,111
Akamai Technologies, Inc. *		59,307		3,066
Autodesk, Inc. *		75,033		3,089
CA, Inc.		108,995		3,234
Cerner Corp. *		98,644		5,184
Citrix Systems, Inc. *		62,462		4,410
Dun & Bradstreet (The) Corp.		13,008		1,351
Electronic Arts, Inc. *		102,674		2,623
Fidelity National Information Services, Inc.		97,838		4,544
Fiserv, Inc. *		43,548		4,401
Intuit, Inc.		99,292		6,584
Microsoft Corp.		2,533,333		84,385
Oracle Corp.		1,191,691		39,528
Paychex, Inc.		108,215		4,398
Red Hat, Inc. *		63,303		2,921
Salesforce.com, Inc. *		183,266		9,513
				187,342
Telecommunications – 3.6%
AT&T, Inc.		1,774,778		60,023
CenturyLink, Inc.		200,902		6,304

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 105 EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.9% – continued
Telecommunications – 3.6% – continued
Cisco Systems, Inc.		1,791,881		$41,966
Corning, Inc.		488,331		7,125
Crown Castle International Corp. *		97,811		7,143
Frontier Communications Corp.		332,369		1,386
Harris Corp.		35,789		2,122
JDS Uniphase Corp. *		80,649		1,186
Juniper Networks, Inc. *		168,960		3,356
Motorola Solutions, Inc.		79,125		4,699
Verizon Communications, Inc.		956,328		44,622
Windstream Holdings, Inc.		201,085		1,609
				181,541
Toys, Games & Hobbies – 0.1%
Hasbro, Inc.		39,025		1,839
Mattel, Inc.		115,379		4,830
				6,669
Transportation – 1.7%
C.H. Robinson Worldwide, Inc.		53,600		3,192
CSX Corp.		341,229		8,783
Expeditors International of		68,968		3,039
Washington, Inc.
FedEx Corp.		99,282		11,329
Kansas City Southern		36,815		4,026
Norfolk Southern Corp.		104,228		8,062
Ryder System, Inc.		17,533		1,047
Union Pacific Corp.		154,980		24,075
United Parcel Service, Inc., Class B		241,361		22,053
				85,606
Total Common Stocks
(Cost $3,438,491)				4,998,032
INVESTMENT COMPANIES – 0.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (3)(4)		42,911,597		42,912
Total Investment Companies
(Cost $42,912)				42,912

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.2%
U.S. Treasury Bill, 0.08%, 10/17/13 (5)		$10,505		$10,505
Total Short-Term Investments
(Cost $10,505)				10,505
Total Investments – 99.9%
(Cost $3,491,908)				5,051,449
Other Assets less Liabilities – 0.1%				3,692
NET ASSETS –100.0%				$5,055,141

(1) At March 31, 2013, the value of the Fund’s investment in Northern Trust Corp. was approximately $3,881,000. There were no purchases or sales during the six months ended September 30, 2013. The change in net unrealized depreciation during the six months ended September 30, 2013, was approximately $12,000.

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $72,982,000 with net sales of approximately $30,070,000 during the six months ended September 30, 2013.

(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 September 30, 2013, 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		682		$57,094		Long		12/13		$239

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 106 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the industry sectors for the Stock Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		12.5%
Consumer Staples		10.0
Energy		10.5
Financials		16.3
Health Care		13.0
Industrials		10.7
Information Technology		17.9
Materials		3.5
Telecommunication Services		2.4
Utilities		3.2
Total		100.0%

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$4,998,032	(1)		$–		$–		$4,998,032
Investment Companies		42,912			–		–		42,912
Short-Term Investments		–			10,505		–		10,505
Total Investments		$5,040,944			$10,505		$–		$5,051,449
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$239			$–		$–		$239

⁽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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 107 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index, International Equity Index, Mid Cap Index, Small Cap Index, and Stock Index Funds (each a “Fund” and collectively, the “Funds”) are separate, diversified investment portfolios of the Trust. Each of the Funds is presented herein.

Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.

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

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

Shares of open-end investment companies are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.

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

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 of, the Funds’ Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as

EQUITY INDEX FUNDS 108 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. The 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.

The NTGI PVC is responsible for making the final determination of the fair value of a security. In making its determination, the NTGI PVC considers factors that it deems appropriate to the determination of the fair value of a 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 transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

For each Level 3 security, if any, 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.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund may sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund may do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund may purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund may utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. A Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts in Net realized gains (losses) on futures contracts, and any unrealized gains or losses on open futures contracts, in Net change in unrealized appreciation (depreciation) on futures contracts. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

At September 30, 2013, the Mid Cap Index, Small Cap Index, and Stock Index Funds had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $2,115,000, $2,555,000 and $10,505,000, respectively. The Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index and International Equity Index Funds had entered into exchange-traded long futures contracts at September 30, 2013. The aggregate fair value of cash and foreign currencies to cover margin requirements for open positions was approximately $2,626,000, $2,418,000, $174,000 and $3,790,000 respectively. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

C) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The realized gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.

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

NORTHERN FUNDS SEMIANNUAL REPORT 109 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

recorded in Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.

Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The Funds bear the market risk from changes in forward foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

E) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available. Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are comprised of return of capital, capital gains and income. The actual character of the amounts received during the year are not known until the fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. A Fund’s characterization may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.

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

G) REDEMPTION FEES The Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index, and International Equity Index Funds charge a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Funds use a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Funds and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Funds. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Funds’ prospectus.

Redemption fees for the six months ended September 30, 2013, were approximately $1,000 and $2,000 for the Emerging Markets Equity Index and the Global Real Estate Index Funds, respectively. Redemption fees for the six months ended September 30, 2013, were less than $500 for the Global Sustainability Index and the International Equity Index Funds. Redemption fees for the fiscal year ended March 31, 2013, were approximately $10,000 and $2,000 for the Emerging Markets Equity Index and the Global Real Estate Index Funds, respectively. Redemption fees for the fiscal year ended March 31, 2013, were less than $500 for the Global Sustainability Index and the International Equity Index Funds. These amounts are included in Payments for Shares Redeemed in Note 8 — Capital Share Transactions. The impact from redemption fees paid to the Funds was less than $0.001 per share.

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

	DECLARATION AND PAYMENT FREQUENCY
Emerging Markets Equity Index		Annually
Global Real Estate Index		Quarterly
Global Sustainability Index		Annually
International Equity Index		Annually
Mid Cap Index		Annually
Small Cap Index		Annually
Stock Index		Quarterly

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts

EQUITY INDEX FUNDS 110 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. These reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to net operating losses, Section 988 currency gains and losses, Passive Foreign Investment Companies (“PFICs’’) gains and losses, recharacterization of dividends received from investments in REITs, expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the net asset values per share of the Funds. At March 31, 2013, the following reclassifications were recorded:

Amounts in thousands	ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)		ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS)		CAPITAL STOCK
Emerging Markets Equity Index		$(1,499)		$1,499		$  —
Global Real Estate Index		(2,301)		2,301		—
Global Sustainability Index		(61)		61		—
International Equity Index		(1,767)		1,516		251
Mid Cap Index		(546)		546		—
Small Cap Index		(259)		(626)		885
Stock Index		(488)		(7,311)		7,799

I) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

For the period subsequent to October 31, 2012, through the fiscal year ended March 31, 2013, the following Funds incurred net capital losses and/or Section 988 net currency losses which the Funds intend to treat as having been incurred in the following fiscal year:

Amounts in thousands
Emerging Markets Equity Index	$6,951
International Equity Index	8,415

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Capital losses incurred that will be carried forward under the provisions of the Act are as follows:

Amounts in thousands	SHORT-TERM CAPITAL LOSS CARRYFORWARD			LONG-TERM CAPITAL LOSS CARRYFORWARD
Emerging Markets Equity Index		$1,850			$20,573
Global Sustainability Index		—			620
International Equity Index		3,164	*		69,536	*
Stock Index		—			5,751	*

* Amounts include acquired capital loss carryovers which may be limited under current tax laws.

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

At March 31, 2013, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration for the Funds in the table below were as follows:

Amounts in thousands	MARCH 31, 2017			MARCH 31, 2018			MARCH 31, 2019
Emerging Markets Equity Index		$12,794			$101,299			$4,624
Global Sustainability Index		673			135			2,654
International Equity Index		63,735	*		194,512	*		11,357	*
Small Cap Index		8,652	*		643	*		—
Stock Index		12,652	*		2,774	*		3,047	*

* Amounts include acquired capital loss carryovers which may be limited under current tax laws, expiring in varying amounts through March 31, 2019.

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

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EQUITY INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

The Global Real Estate Index Fund has elected to defer net capital losses and/or Section 988 net currency losses incurred from November 1, 2012 through November 30, 2012, the Fund’s last tax year end, as having arisen on the first day of the following tax year:

Amounts in thousands
Global Real Estate Index	$841

At November 30, 2012, the Global Real Estate Index Fund’s last tax year end, capital losses incurred that will be carried forward under the provisions of the Act are as follows:

Amounts in thousands	SHORT-TERM CAPITAL LOSS CARRYFORWARD		LONG-TERM CAPITAL LOSS CARRYFORWARD
Global Real Estate Index		$  —		$3,375

At November 30, 2012, the Global Real Estate Index Fund’s last tax year end, the capital loss carryforwards for U.S. federal income tax purposes and their year of expiration for the Fund in the table below were as follows:

Amounts in thousands	NOVEMBER 30, 2016		NOVEMBER 30, 2017		NOVEMBER 30, 2018		NOVEMBER 30, 2019
Global Real Estate Index		$99,834		$496,445		$10,164		$13,694

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

At March 31, 2013, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:

	UNDISTRIBUTED
Amounts in thousands	ORDINARY     INCOME*		LONG-TERM     CAPITAL GAINS		UNREALIZED GAINS
Emerging Markets Equity Index		$2,912		$  —		$248,069
Global Sustainability Index		570		—		26,580
International Equity Index		19,919		—		246,280
Mid Cap Index		5,040		8,730		203,015
Small Cap Index		667		8,561		150,310
Stock Index		2,123		8,064		1,094,789

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

The tax components of undistributed net investment income, undistributed realized gains and unrealized losses at November 30, 2012, the Global Real Estate Index Fund’s last tax year end, were as follows:

	UNDISTRIBUTED
Amounts in thousands	ORDINARY     INCOME*		LONG-TERM     CAPITAL GAINS		UNREALIZED GAINS
Global Real Estate Index		$19,856		$  —		$82,238

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

The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY     INCOME*		LONG-TERM     CAPITAL GAINS
Emerging Markets Equity Index		$44,000		$  —
Global Sustainability Index		2,800		—
International Equity Index		53,302		—
Mid Cap Index		11,362		16,039
Small Cap Index		9,996		4,381
Stock Index		80,033		—

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

The tax character of distributions paid during the fiscal year ended March 31, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY     INCOME*		LONG-TERM     CAPITAL GAINS
Emerging Markets Equity Index		$21,001		$  —
Global Sustainability Index		1,864		—
International Equity Index		43,000		—
Mid Cap Index		4,532		—
Small Cap Index		3,120		—
Stock Index		46,242		—

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

The tax character of distributions paid during the Global Real Estate Index Fund’s tax year ended November 30, 2012 was designated for the purpose of the dividends paid deductions as follows:

	NOVEMBER 30, 2012 DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY     INCOME*		LONG-TERM     CAPITAL GAINS
Global Real Estate Index		$19,073		$  —

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EQUITY INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

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

The Global Real Estate Index Fund has a tax year end of November 30^th. Therefore, the tax character of distributions paid for the period December 1, 2012 through March 31, 2013 will be determined at the end of its tax year.

As of March 31, 2013, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns, except for the Global Real Estate Index Fund, filed for the fiscal years ended March 31, 2010 through March 31, 2012 remain subject to examination by the Internal Revenue Service. The Global Real Estate Index Fund’s federal tax returns filed for the tax years ended November 30, 2010 through November 30, 2012 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.

J) NETTING AGREEMENTS The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. As of September 30, 2013, the Funds have not invested in any portfolio securities or entered into any derivative transactions, other than the forward foreign currency exchange contracts as described above, with gross exposures on the Statement of Assets and Liabilities, that could be netted subject to netting agreements.

K) OTHER RISKS Certain Funds may invest in emerging market securities. Additional risks are involved when a Fund invests its assets in countries with emerging economies or securities markets. These countries generally are located in the Asia and Pacific regions, the Middle East, Eastern Europe, Central America, South America and Africa. Political and economic structures in many of these countries may lack the social, political and economic stability characteristics of more developed countries. In general, the securities markets of these countries are less liquid, subject to greater price volatility and have smaller market capitalizations. As a result, the risks presented by investments in these countries are heightened.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, whom are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2013.

These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2013.

4. BANK BORROWINGS

The Trust entered into a $150,000,000 senior unsecured revolving credit facility, on November 29, 2012, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds the Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears which is included in Other expenses on the Statements of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Funds did not have any outstanding loans.

When utilized, the average dollar amounts of the borrowings and the weighted average interest rates for the six months ended September 30, 2013 on these borrowings were:

Amounts in thousands	DOLLAR AMOUNT		RATE
Emerging Markets Equity Index		$2,700		1.20	%
Global Real Estate Index		1,680		1.18	%
Global Sustainability Index		100		1.19	%

No other Funds incurred any interest expenses during the six months ended September 30, 2013.

NORTHERN FUNDS SEMIANNUAL REPORT 113 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment adviser is entitled to receive an advisory fee, computed daily and payable monthly, at annual rates set forth in the table below (expressed as a percentage of each Fund’s respective average daily net assets). During the six months ended September 30, 2013, the investment adviser contractually agreed to reimburse the Funds for certain expenses (other than acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses; and interest, if any) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investments adviser as a reduction to Total Expenses in the Statements of Operations.

The annual advisory fees and the expense limitations for the six months ended September 30, 2013, for the Funds were as follows:

	CONTRACTUAL
	ANNUAL ADVISORY FEE			EXPENSE LIMITATIONS
Emerging Markets Equity Index		0.35	%		0.30	%
Global Real Estate Index		0.35	%		0.50	%
Global Sustainability Index		0.35	%		0.30	%
International Equity Index		0.25	%		0.25	%
Mid Cap Index		0.20	%		0.15	%
Small Cap Index		0.20	%		0.15	%
Stock Index		0.10	%		0.10	%

The contractual reimbursement arrangements are expected to continue until at least July 31, 2014. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders

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

For compensation as administrator, NTI is entitled to receive a fee, computed daily and payable monthly, at the annual rate of 0.15 percent of each Fund’s average daily net assets. Administration fees are reflected in the Funds’ Statements of Operations.

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.

Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statements of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

6. RELATED PARTY TRANSACTIONS

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund may invest its uninvested cash in a money market fund advised by the investment adviser or its affiliates. Accordingly, each Fund will bear

EQUITY INDEX FUNDS 114 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include advisory, administrative, transfer agency and custody fees that the money market fund pays to the investment adviser and/or its affiliates. The uninvested cash of each of the Funds currently is invested in the Northern Institutional Diversified Assets Portfolio. The aggregate annual rate of advisory, administration, transfer agency and custody fees payable to the investment adviser and/or its affiliates on any assets invested in the Northern Institutional Diversified Assets Portfolio is 0.35 percent of the average daily net assets. However, pursuant to the exemptive order, the investment adviser will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Northern Institutional Diversified Assets Portfolio. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

7. INVESTMENT TRANSACTIONS

For the six months ended September 30, 2013, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER
Emerging Markets Equity Index	$	—	$	375,115	$	—	$	268,565
Global Real Estate Index		—		172,579		—		81,392
Global Sustainability Index		—		23,070		—		15,527
International Equity Index	$	—	$	1,469,626	$	—	$	739,718
Mid Cap Index		—		182,209		—		71,345
Small Cap Index		—		113,490		—		90,170
Stock Index		—		233,548		—		317,762

The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes and the timing of income recognition on investments in REITs and PFICs.

At September 30, 2013, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation (depreciation) on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:

Amounts in thousands	UNREALIZED APPRECIATION		UNREALIZED DEPRECIATION			NET APPRECIATION (DEPRECIATION)		COST BASIS OF SECURITIES
Emerging Markets Equity Index	$	371,617	$	(198,956	)	$	172,661	$	1,965,792
Global Real Estate Index		159,785		(64,383	)		95,402		1,262,465
Global Sustainability Index		37,437		(2,301	)		35,136		115,172
International Equity Index		623,401		(139,357	)		484,044		3,034,304
Mid Cap Index		281,776		(21,590	)		260,186		908,836
Small Cap Index		264,845		(38,052	)		226,793		646,267
Stock Index		1,487,431		(55,842	)		1,431,589		3,619,860

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013, were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE/ (DECREASE) IN SHARES		NET INCREASE/ (DECREASE) IN NET ASSETS
Emerging Markets Equity Index		34,233		$377,241		—		$  —		(26,200	)		$(284,177	)		8,033		$93,064
Global Real Estate Index		29,998		286,572		281		2,522		(19,999	)		(190,361	)		10,280		98,733
Global Sustainability Index		1,089		11,626		—		—		(647	)		(6,783	)		442		4,843

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NOTES TO THE FINANCIAL STATEMENTS continued

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE/ (DECREASE) IN SHARES			NET INCREASE/ (DECREASE) IN NET ASSETS
International Equity Index		73,677		$839,337		—		$  —		(14,052	)		$(158,378	)		59,625			$680,959
Mid Cap Index		11,180		173,385		—		—		(4,969	)		(77,293	)		6,211			96,092
Small Cap Index		10,469		114,583		—		—		(10,442	)		(117,271	)		27			(2,688	)
Stock Index		30,257		615,935		430		8,713		(36,589	)		(757,475	)		(5,902	)		(132,827	)

Transactions in capital shares for the fiscal year ended March 31, 2013, were as follows:

Amounts in thousands	SHARES SOLD			PROCEEDS FROM SHARES SOLD			SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE IN SHARES		NET INCREASE IN NET ASSETS
Emerging Markets Equity Index		65,133		$	747,303			421	$	4,949		(25,732	)	$	(287,720	)		39,822	$	464,532
Global Real Estate Index		70,757			624,766			580		5,139		(19,140	)		(170,356	)		52,197		459,549
Global Sustainability Index		4,178			39,116			65		610		(3,384	)		(30,553	)		859		9,173
International Equity Index		99,682	*		1,001,874	*		937		9,671		(39,667	)		(386,875	)		60,952		624,670
Mid Cap Index		22,515			301,723			1,369		18,108		(9,314	)		(122,920	)		14,570		196,911
Small Cap Index		26,987	**		249,048	**		731		6,753		(10,371	)		(95,349	)		17,347		160,452
Stock Index		112,376	***		1,984,137	***		658		11,827		(53,210	)		(937,305	)		59,824		1,058,659

* Numbers include assets received in connection with fund reorganization of approximately 24,466,000 shares sold and $243,678,000 in proceeds from shares sold. For further information on the reorganization, see Note 13.

** Numbers include assets received in connection with fund reorganization of approximately 7,650,000 shares sold and $69,233,000 in proceeds from shares sold. For further information on the reorganization, see Note 13.

*** Numbers include assets received in connection with fund reorganization of approximately 36,026,000 shares sold and $632,618,000 in proceeds from shares sold. For further information on the reorganization, see Note 13.

9. DERIVATIVE INSTRUMENTS

None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.

Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of September 30, 2013:

Amounts in thousands		ASSETS					LIABILITIES
FUND NAME	DERIVATIVE TYPE	STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			COUNTERPARTY
Emerging Markets Equity Index	Equity contracts	Net Assets — Unrealized appreciation	$	98	*	Net Assets — Unrealized depreciation	$	(502	)*	UBS
	Forward foreign currency exchange contracts	Unrealized gain on forward foreign currency exchange contracts		78		Unrealized loss on forward foreign currency exchange contracts		—		UBS
Global Real Estate Index	Equity contracts	Net Assets — Unrealized appreciation		51	*	Net Assets — Unrealized depreciation		(327	)*	UBS
	Forward foreign currency exchange contracts	Unrealized gain on forward foreign currency exchange contracts		99		Unrealized loss on forward foreign currency exchange contracts		(74	)	Citigroup, Goldman Sachs, Morgan Stanley

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SEPTEMBER 30, 2013 (UNAUDITED)

Amounts in thousands		ASSETS					LIABILITIES
FUND NAME	DERIVATIVE TYPE	STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			COUNTERPARTY
Global Sustainability Index	Equity contracts	Net Assets — Unrealized appreciation	$	16	*	Net Assets — Unrealized depreciation	$	(7	)*	UBS
	Forward foreign currency exchange contracts	Unrealized gain on forward foreign currency exchange contracts		3		Unrealized loss on forward foreign currency exchange contracts		(1	)	Citigroup, Goldman Sachs, Morgan Stanley
International Equity Index	Equity contracts	Net Assets — Unrealized appreciation		300	*	Net Assets — Unrealized depreciation		(398	)*	UBS
	Forward foreign currency exchange contracts	Unrealized gain on forward foreign currency exchange contracts		366		Unrealized loss on forward foreign currency exchange contracts		(33	)	Citigroup, Goldman Sachs, Morgan Stanley, UBS
Mid Cap Index	Equity contracts	Net Assets — Unrealized appreciation		339	*	Net Assets — Unrealized depreciation		—		UBS
Small Cap Index	Equity contracts	Net Assets — Unrealized appreciation		91	*	Net Assets — Unrealized depreciation		—		Citigroup
Stock Index	Equity contracts	Net Assets — Unrealized appreciation		239	*	Net Assets — Unrealized depreciation		—		Citigroup

* Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments’ footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following table represents forward foreign currency exchange contracts which are subject to netting agreements, as well as the collateral delivered related to those forward foreign currency exchange contracts.

Amounts in thousands	Counterparty	Gross Amounts of Assets Presented in Statements of Assets and Liabilities		Financial Instruments			Collateral Received		Net Amount
Emerging Markets Equity Index	UBS	$	78	$	—		$	—	$	78
	Total	$	78	$	—		$	—	$	78
Global Real Estate Index	Citibank	$	62	$	(4	)	$	—	$	58
	Goldman Sachs		—		—			—		—
	Morgan Stanley		37		(37	)		—		—
	Total	$	99	$	(41	)	$	—	$	58
Global Sustainability Index	Goldman Sachs	$	1	$	—		$	—	$	1
	Morgan Stanley		2		(1	)		—		1
	Total	$	3	$	(1	)	$	—	$	2
International Equity Index	Citibank	$	49	$	—		$	—	$	49
	Goldman Sachs		21		—			—		21
	Morgan Stanley		243		—			—		243
	UBS		53		(33	)		—		20
	Total	$	366	$	(33	)	$	—	$	333

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EQUITY INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

Amounts in thousands	Counterparty	Gross Amounts of Liabilities Presented in Statements of Assets and Liabilities			Financial Instruments		Collateral Pledged		Net Amount
Emerging Markets Equity Index	UBS	$	—		$	—	$	—	$	—
	Total	$	—		$	—	$	—	$	—
Global Real Estate Index	Citibank	$	(4	)	$	4	$	—	$	—
	Goldman Sachs		(20	)		—		—		(20	)
	Morgan Stanley		(50	)		37		—	$	(13	)
	Total	$	(74	)	$	41	$	—	$	(33	)
Global Sustainability Index	Goldman Sachs	$	—		$	—	$	—	$	—
	Morgan Stanley		(1	)		1		—		—
	Total	$	(1	)	$	1	$	—	$	—
International Equity Index	Citibank	$	—		$	—	$	—	$	—
	Goldman Sachs		—			—		—		—
	Morgan Stanley		—			—		—		—
	UBS		(33	)		33		—		—
	Total	$	(33	)	$	33	$	—	$	—

The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2013:

Amounts in thousands		AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
Emerging Markets Equity Index	Equity contracts	Net realized gains (losses) on futures contracts	$	2,504
	Forward foreign currency exchange contracts	Net realized gains (losses) on foreign currency transactions		168
Global Real Estate Index	Equity contracts	Net realized gains (losses) on futures contracts		4,683
	Forward foreign currency exchange contracts	Net realized gains (losses) on foreign currency transactions		(173	)
Global Sustainability Index	Equity contracts	Net realized gains (losses) on futures contracts		191
	Forward foreign currency exchange contracts	Net realized gains (losses) on foreign currency transactions		2
International Equity Index	Equity contracts	Net realized gains (losses) on futures contracts		4,554
	Forward foreign currency exchange contracts	Net realized gains (losses) on foreign currency transactions		282
Mid Cap Index	Equity contracts	Net realized gains (losses) on futures contracts		1,708
Small Cap Index	Equity contracts	Net realized gains (losses) on futures contracts		3,569
Stock Index	Equity contracts	Net realized gains (losses) on futures contracts		15,058

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EQUITY INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

Amounts in thousands		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
Emerging Markets Equity Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	(256	)
	Forward foreign currency exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		93
Global Real Estate Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(845	)
	Forward foreign currency exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		(25	)
Global Sustainability Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(34	)
	Forward foreign currency exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		1
International Equity Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		98
	Forward foreign currency exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		273
Mid Cap Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(398	)
Small Cap Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(315	)
Stock Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(1,549	)

Volume of derivative activity for the six months ended September 30, 2013*:

	FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS				FUTURES EQUITY CONTRACTS
	NUMBER OF TRADES		AVERAGE NOTIONAL AMOUNT**		NUMBER OF TRADES		AVERAGE NOTIONAL AMOUNT**
Emerging Markets Equity Index		14		$1,988		68		$2,485
Global Real Estate Index		130		529		479		727
Global Sustainability Index		28		84		131		134
International Equity Index		115		1,071		135		1,216
Mid Cap Index		—		—		185		1,015
Small Cap Index		—		—		183		729
Stock Index		—		—		144		3,668

* Activity during the period is measured by number of trades during the period and average notional amount forward foreign currency exchange and futures equity contracts.

** Amounts in thousands.

10. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

11. NEW ACCOUNTING PRONOUNCEMENT

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining whether an entity is an investment company for which fair

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EQUITY INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for, its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it

will have to the financial statement amounts and footnote disclosures, if any.

12. LEGAL PROCEEDINGS

In December 2007, the Mid Cap Index Fund as a shareholder of Lyondell Chemical Company (“Lyondell”), participated in a cash out merger of Lyondell in which it received $48/share of merger consideration. Lyondell later filed for bankruptcy and two entities created by the Lyondell bankruptcy plan of reorganization have initiated lawsuits, based on fraudulent transfer claims, seeking to recover, or clawback, proceeds received by shareholders in the December 2007 merger.

The first action, Edward S. Weisfelner, as Trustee of the LB Creditor Trust v. Fund 1, et al. (the “Creditor Trust Action”), was initiated on October 22, 2010, in the Supreme Court of the State of New York in the County of New York, but was removed to the U.S. Bankruptcy Court for the Southern District of New York. The Creditor Trust Action asserts causes of action for intentional and constructive fraudulent transfer under state law. Briefing of motions to dismiss was completed on April 15, 2011, and oral argument was held on May 12, 2011. However, the court did not schedule further argument and has not entered an Order on the motion to dismiss. A second amended complaint was filed in the Creditor Trust Action on December 19, 2011, which expanded the identification of defendants to approximately 2,700 persons and entities, and named the Fund anonymously as a defendant (due to prior court orders, the plaintiff is precluded from disclosing the identities of most recipients of merger consideration).

The second action, Edward S. Weisfelner, as Trustee of the LB Litigation Trust v. A Holmes & H Holmes TTEE, et al. (the “Litigation Trust Action”), was initiated as a putative defendant class action on December 23, 2010, in the U.S. Bankruptcy Court for the Southern District of New York and named, among numerous other defendants, the Fund’s custodian, Northern Trust, and persons having a beneficial interest in the Lyondell shares registered with Northern Trust at the time of Lyondell’s December 2007 cash out merger. The Fund is included in the definition of the putative class of defendants. The Fund and other defendants moved to dismiss the complaint on April 7, 2011, briefing was completed on June 13, 2011, and oral argument occurred on July 12, 2011. At the July 12, 2011 hearing, the Litigation Trust voluntarily dismissed from the action its constructive fraudulent transfer claim under the U.S. Bankruptcy Code without prejudice to reinstate it. Accordingly, the intentional fraudulent transfer claim under the U.S. Bankruptcy Code is the only remaining claim in this action. The court subsequently entered an Order on October 6, 2011, which a) denied without prejudice the challenge to the Litigation Trust’s standing to pursue claims, and authorized discovery on this issue; b) confirmed the dismissal of the constructive fraudulent transfer claim; and c) stated that the other grounds for seeking dismissal remain under consideration, during which the obligation to answer the complaint remains tolled.

Both the Creditor Trust and Litigation Trust Actions attempt to recover the proceeds paid out to the holders of Lyondell shares at the time of the 2007 merger. The value of the proceeds received by the Fund was approximately $4,171,000. The Fund cannot predict the outcome of these proceedings. The Fund intends to defend vigorously the Creditor Trust and Litigation Trust Actions.

In 2007, the Stock Index Fund was a shareholder of the Tribune Company (“Tribune”). In December of 2007, as a part of a leveraged buy-out transaction (the “LBO”), Tribune was converted from a public company to a privately-held company. On December 8, 2008, Tribune filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

On December 7, 2010, Northern Funds was named as a defendant and a putative member of the proposed defendant class of shareholders named in an adversary proceeding (the “Committee Action”) brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune’s Chapter 11 bankruptcy proceeding (In re Tribune Company). The Tribune litigation trustee appointed pursuant to Tribune’s plan of reorganization (the “Litigation Trustee”) has been substituted as the named plaintiff in the Committee Action. On June 2, 2011, a second suit was initiated by certain creditors of Tribune and named Northern Funds as a defendant in the Delaware Superior Court with respect to claims related to the Tribune LBO (Niese et al. v. A.G. Edwards, Inc. et al.), which was subsequently removed to federal court in the United States District Court, District of Delaware. The indenture trustees, on behalf of certain noteholders of Tribune; filed a third suit and named Northern Funds as a defendant on June 2, 2011 in the U.S. District Court for the Northern District of Illinois (Deutsche Bank Trust Co. et al. v. Ohlson Enterprises et al.).

Each of the above proceedings to which Northern Funds is a party attempts to “clawback” the proceeds paid out in connection with the LBO. The putative defendant class is comprised of beneficial owners of shares of Tribune who received proceeds

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EQUITY INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

of the LBO. Each of the above proceedings has now been consolidated into a Multi-District Litigation (“MDL”) proceeding, pending in the Southern District of New York. Except for certain administrative and organizational matters, the cases have generally been stayed pursuant to orders of the Court. On September 7, 2012, the Court in the MDL proceeding entered an order modifying the stay and establishing a schedule and process with respect to certain of the proceedings.

The defendants jointly moved to dismiss all of the actions filed by the individual creditors, i.e. the actions commenced by the plaintiffs in Niese et al. and Deutsche Bank Trust Co. et al. The Committee Action is not subject to the motion to dismiss. On September 23, 2013, the Court entered its Memorandum and Order on the motion to dismiss the individual creditors’ actions. While the Court did not agree with all of the defendants’ arguments, the Court granted the motion to dismiss on the grounds that individual creditors do not have standing to assert claims seeking to “clawback” proceeds paid to former shareholders in the LBO while the Litigation Trustee exercises its power in the Committee Action to “clawback” the same proceeds. The individual creditors’ actions, therefore, were dismissed. The Court’s decision, however, left open the possibility that the individual creditors could pursue their “clawback” claims if the Litigation Trustee completely abandoned its “clawback” claims. The Court, therefore, ordered the parties to the Committee Action to prepare a joint letter addressed to the Court, by October 8, 2013. The Court ordered that the letter address whether the Litigation Trustee intends to proceed with its intentional fraudulent conveyance claims or amend its complaint to abandon them. If the latter, the Court requested that the parties address whether the Litigation Trustee could abandon its claims consistent with its fiduciary duties to Tribune’s creditors. The individual creditors filed a notice of appeal of the Court’s Memorandum and Order dismissing their actions on September 30, 2013. The value of the proceeds received by the Stock Index Fund in the LBO was approximately $790,000, which includes proceeds of approximately $362,000 received by the NIF Equity Index Portfolio, which was acquired by the Stock Index Fund in 2012. The Fund cannot predict the outcome of these proceedings. The complaints allege no misconduct by the Fund, and the Fund intends to vigorously defend any lawsuit.

13. REORGANIZATION

On August 9, 2012, the Board of the Trust approved a Plan of Reorganization (the “Plan”) providing for the reorganization of the series of Northern Institutional Funds (“NIF”) listed in the table below (each an “Acquired Fund”) into a corresponding series of the Trust as set forth below under the heading Acquiring Fund (each an “Acquiring Fund”). Pursuant to the Plan, all of the assets of each Acquired Fund were transferred to the corresponding Acquiring Fund, as shown in the table below, in exchange for shares of the Acquiring Fund of equal aggregate value and the corresponding Acquiring Fund’s assumption of all of the current and future liabilities of the Acquired Fund. The cost basis of the investments received from the Acquired Funds was carried forward to the corresponding Acquiring Funds for U.S. GAAP and tax purposes. Immediately following the reorganization, holders of Class A shares of each Acquired Fund held shares of the corresponding Acquiring Fund having an aggregate net asset value equal to the aggregate net asset value of the Class A shares held in the Acquired Fund immediately prior to the reorganization. The reorganization was accomplished by a tax-free exchange of shares and was completed on November 2, 2012 as set forth in the table.

	ACQUIRED FUND						ACQUIRING FUND
Amounts in thousands, except Share Conversion Ratio	NIF EQUITY INDEX PORTFOLIO		NIF INTERNATIONAL EQUITY INDEX PORTFOLIO		NIF SMALL COMPANY INDEX PORTFOLIO		NF STOCK INDEX FUND		NF INTERNATIONAL EQUITY INDEX FUND		NF SMALL CAP INDEX FUND
Share Conversion Ratio		0.7989		0.7872		2.0034		0.7989		0.7872		2.0034
Acquired Fund’s Shares		45,097		31,079		3,819		NA		NA		NA
Acquiring Fund’s Shares		NA		NA		NA		36,026		24,466		7,650
Acquiring Fund’s Unrealized Appreciation		154,241		15,549		10,245		NA		NA		NA
Net Assets Before The Reorganization		632,618		243,678		69,233		3,465,032		1,713,446		535,416
Aggregate Net Assets Immediately After The Reorganization		NA		NA		NA		4,097,650		1,957,124		604,649

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EQUITY INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued SEPTEMBER 30, 2013 (UNAUDITED)

The tables below summarize the operations of the Acquired Funds for the acquiring period from December 1, 2011 to November 2, 2012, and the Funds’ results of operations for the year ended March 31, 2013.

FOR THE PERIOD FROM DECEMBER 1, 2011 TO NOVEMBER 2, 2012 (in thousands)

FUND	NET INVESTMENT INCOME (LOSS)		NET REALIZED GAINS AND NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS		NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
NIF Equity Index Portfolio	$	14,155	$	101,788	$	115,943
NIF International Equity Index Portfolio		7,869		11,429		19,298
NIF Small Company Index Portfolio		1,120		7,443		8,563

FOR THE YEAR ENDED MARCH 31, 2013 (In thousands)

FUND	NET INVESTMENT INCOME		NET REALIZED GAINS AND NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS		NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
NF Stock Index Fund	$	81,256	$	483,670	$	564,926
NF International Equity Index Fund		55,189		169,014		224,203
NF Small Cap Index Fund		9,253		95,002		104,255

Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practical to separate the amounts of net investment income (loss), net realized gains and change in unrealized appreciation (depreciation) on investments, and net increase (decrease) in net assets resulting from operations, of the Acquired Funds that have been included in the Acquiring Funds’ Statements of Operations since November 3, 2012.

14. SUBSEQUENT EVENTS

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that, other than the item noted in Note 4 — Bank Borrowings, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

EQUITY INDEX FUNDS 122 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY INDEX FUNDS

FUND EXPENSES SEPTEMBER 30, 2013 (UNAUDITED)

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013 through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 110), if any, in the Emerging Markets Equity Index, Global Real Estate Index, Global Sustainability Index, and International Equity Index Funds. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 114), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

EMERGING MARKETS EQUITY INDEX

	EXPENSE RATIO			BEGINNING VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.30	%	$	1,000.00	$	972.40	$	1.48
Hypothetical**		0.30	%	$	1,000.00	$	1,023.56	$	1.52

GLOBAL REAL ESTATE INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.50	%	$	1,000.00	$	974.60	$	2.48
Hypothetical**		0.50	%	$	1,000.00	$	1,022.56	$	2.54

GLOBAL SUSTAINABILITY INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.30	%	$	1,000.00	$	1,084.20	$	1.57
Hypothetical**		0.30	%	$	1,000.00	$	1,023.56	$	1.52

INTERNATIONAL EQUITY INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.25	%	$	1,000.00	$	1,103.80	$	1.32
Hypothetical**		0.25	%	$	1,000.00	$	1,023.82	$	1.27

MID CAP INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.15	%	$	1,000.00	$	1,085.60	$	0.78
Hypothetical**		0.15	%	$	1,000.00	$	1,024.32	$	0.76

* Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

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EQUITY INDEX FUNDS

FUND EXPENSES continued SEPTEMBER 30, 2013 (UNAUDITED)

SMALL CAP INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.15	%	$	1,000.00	$	1,135.40	$	0.80
Hypothetical**		0.15	%	$	1,000.00	$	1,024.32	$	0.76

STOCK INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.10	%	$	1,000.00	$	1,082.50	$	0.52
Hypothetical**		0.10	%	$	1,000.00	$	1,024.57	$	0.51

* Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

EQUITY INDEX FUNDS 124 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY INDEX FUNDS

APPROVAL OF ADVISORY AGREEMENT SEPTEMBER 30, 2013 (UNAUDITED)

The Board of Trustees oversees the management of Northern Funds (the “Trust”), and reviews the investment performance and expenses of the investment funds covered by this Report (the “Funds”) at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Funds with Northern Trust Investments, Inc. (“Northern”).

The Advisory Agreement was re-approved with respect to all of the Funds by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Trust’s Governance Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Funds. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Funds in comparison to other mutual funds and benchmark indices; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Funds; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Funds; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Funds’ investment performance over different time periods in comparison to the investment performance of mutual fund peer groups and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administration) fees and the total expenses (after reimbursements) borne by the Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the investment advisory fees charged to the Funds compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (v) Northern’s staffing for the Funds and the experience of the portfolio managers and other personnel; (vi) Northern’s financial resources and its ability to attract and retain portfolio management talent; (vii) Northern’s investments in technology to benefit the Funds; (viii) the fees paid by the Funds to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (ix) the benefits received by Northern and its affiliates from their relationships with the Funds, including reports on soft dollar usage and best execution. In evaluating the Advisory Agreement for each of the Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. In this regard, they considered both the investment advisory services, and the other non-advisory services that are provided to the Funds by Northern and its affiliates. These services include acting as the Funds’ custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications with and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Funds. They noted Northern’s enhancements to the pricing and fund accounting systems made during the year, and other investments in technology, including the trade order management system used to process certain trades. The Trustees also considered the strength of Northern’s and its affiliates’ risk management processes, Northern’s compliance oversight program with respect to all of the Funds’ service providers and the continued active involvement of internal audit in reviewing operations related to the Funds. In addition, they noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Funds. The Trustees concluded that Northern was able to commit, and had committed, substantial financial and other resources to the operations of the Funds and was able to provide quality services to the Funds.

Performance

The Trustees considered the investment performance of the Funds. They first considered whether the Funds had operated within their respective investment objectives, as well as their

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EQUITY INDEX FUNDS

APPROVAL OF ADVISORY AGREEMENT continued

compliance with their investment restrictions. For Funds that had been in existence for the applicable periods, the Trustees received information on the Funds’ investment performance for one, two, three, four, five and ten years, as well as performance for the most recent quarter and year-to-date. The Trustees compared the investment performance of the Funds to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. The Trustees also reviewed the Funds’ investment performance relative to their respective performance benchmarks. The Trustees concluded, based on the information received, that the Funds were satisfactorily tracking their respective benchmarks.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Funds’ contractual management fee rates; the Funds’ total operating expense ratios; Northern’s contractual commitments to continue expense reimbursements for at least one year with respect to the Funds; and whether a consistent methodology was in place in determining the fees and expenses of the Funds. The Trustees also considered that, for those Funds that were sweeping uninvested cash into a Northern affiliated money market fund, Northern was in each case rebating back to the investing Fund all of the advisory fees that were not waived by Northern of the applicable money market fund in compliance with the Funds’ exemptive order. The Trustees also considered the additional contractual expense reimbursements that were in effect during the past year.

In addition, the Trustees considered the amount of assets in the Funds; the information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship on a Fund-by-Fund basis. The Trustees also took into account fund mergers in the past year of the Stock Index Fund, International Equity Index Fund and Small Cap Index Fund, whereby the Funds acquired corresponding portfolios of the Northern Institutional Funds, also managed by Northern. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to each Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rates paid by the Funds under the Advisory Agreement and the Funds’ total operating expense ratios compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Funds’ fee rates and total operating expense ratios were prepared by Lipper. The Trustees considered that the contractual management fee rates for the International Equity Index Fund, Small Cap Index Fund and Stock Index Fund were above, and the contractual management fee rates for the other Funds were below, their respective Lipper peer group medians. They also considered that each Fund’s total expense ratio after reimbursement of expenses was below its respective Lipper peer objective median. The Trustees reviewed information comparing the Funds’ advisory fee rates to the fee rates charged by Northern to similarly managed, private institutional accounts. They noted that Northern did not manage private institutional accounts similarly managed to the Global Sustainability Index Fund. The Trustees considered the difference in, and level of complexity of, services provided by Northern with regard to the private institutional accounts, as well as regulatory, operational and compliance differences, board and committee support and other differences. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Funds.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass, benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Funds may be sharing in economies of scale through the level at which the Funds’ advisory fees are set and through Northern’s contractual expense reimbursements that limit the expenses for the Funds to specific levels.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationship with the Funds. Those benefits included fees received by the affiliates for transfer agency, custodial and administrative functions. The Trustees also considered that many of the Funds’ shareholders had other client relationships with The Northern Trust Company. In addition, the Trustees considered that the scale of the Funds provided opportunities to Northern to obtain securities trading advantages for its other advisory clients. The Trustees also reviewed Northern’s use of the Funds’ brokerage commissions on their brokerage transactions to obtain research products and services. The Trustees determined that Northern’s use of so-called “soft-dollars” was within applicable statutory requirements and SEC guidance. The Trustees considered the extent to which Northern and its other clients, as well as the Funds, benefitted from receipt of these research products and services.

EQUITY INDEX FUNDS 126 NORTHERN FUNDS SEMIANNUAL REPORT

EQUITY INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to all of the Funds that the advisory fees paid by the Funds were reasonable in light of the services provided by Northern, its costs and the Funds’ asset levels, and that the Advisory Agreement should be approved and continued.

NORTHERN FUNDS SEMIANNUAL REPORT 127 EQUITY INDEX FUNDS

EQUITY INDEX FUNDS

FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

EQUITY INDEX FUNDS 128 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUNDS

TABLE OF CONTENTS

2	STATEMENTS OF ASSETS AND LIABILITIES
4	STATEMENTS OF OPERATIONS
6	STATEMENTS OF CHANGES IN NET ASSETS
8	FINANCIAL HIGHLIGHTS
16	SCHEDULES OF INVESTMENTS
16	CORE BOND FUND
26	FIXED INCOME FUND
39	HIGH YIELD FIXED INCOME FUND
48	SHORT BOND FUND
60	SHORT-INTERMEDIATE U.S. GOVERNMENT FUND
62	TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND
80	ULTRA-SHORT FIXED INCOME FUND
91	U.S. GOVERNMENT FUND
94	ABBREVIATIONS AND OTHER INFORMATION
95	NOTES TO THE FINANCIAL STATEMENTS
108	FUND EXPENSES
110	APPROVAL OF ADVISORY AGREEMENT
116	FOR MORE INFORMATION

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

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

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 FIXED INCOME FUNDS

FIXED INCOME FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

Amounts in thousands, except per share data	CORE BOND FUND(1)			FIXED INCOME FUND
ASSETS:
Investments, at cost		$91,938	(3)		$1,786,569	(3)
Investments, at value		$92,845	(6)		$1,801,562	(6)
Dividend income receivable		–			2
Interest income receivable		509			14,195
Receivable for foreign tax reclaimable		3			260
Receivable for securities sold		12,988			229,129
Receivable for variation margin on futures contracts		–			–
Receivable for fund shares sold		105			63
Receivable from investment adviser		8			81
Prepaid and other assets		11			10
Total Assets		106,469			2,045,302
LIABILITIES:
Payable for securities purchased		11,712			196,405
Payable for when-issued securities		5,877			178,704
Payable for variation margin on futures contracts		–			36
Payable for fund shares redeemed		454			8,441
Distributions to shareholders		35			869
Payable to affiliates:
Investment advisory fees		6			109
Administration fees		2			41
Custody and accounting fees		1			6
Shareholder servicing fees		–			7
Transfer agent fees		1			27
Trustee fees		5			23
Accrued other liabilities		14			51
Total Liabilities		18,107			384,719
Net Assets		$88,362			$1,660,583
ANALYSIS OF NET ASSETS:
Capital stock		$88,478			$1,665,785
Accumulated undistributed net investment income (loss)		(71	)		(2,080	)
Accumulated undistributed net realized gain (loss)		(952	)		(16,224	)
Net unrealized appreciation (depreciation)		907			13,102
Net Assets		$88,362			$1,660,583
Shares Outstanding ($.0001 par value, unlimited authorization)		8,668			163,633
Net Asset Value, Redemption and Offering Price Per Share		$10.19			$10.15

(1) Formerly the Core Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

(2) Formerly the Short Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

(3) Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $7,775, $134,402, $316,637, $18,341 and $4,682, respectively.

(4) Amounts include cost from the U.S. Government Portfolio of the Northern Institutional Funds of $49,503 and $6,975, respectively.

(5) Amounts include cost from the Tax-Exempt Portfolio of the Northern Institutional Funds of $19,608.

(6) Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $7,775, $134,402, $316,637, $18,341 and $4,682, respectively.

(7) Amounts include value from the U.S. Government Portfolio of the Northern Institutional Funds of $49,503 and $6,975, respectively.

(8) Amounts include value from the Tax-Exempt Portfolio of the Northern Institutional Funds of $19,608.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2013 (UNAUDITED)

HIGH YIELD FIXED INCOME FUND			SHORT BOND FUND(2)			SHORT- INTERMEDIATE U.S. GOVERNMENT FUND			TAX- ADVANTAGED ULTRA-SHORT FIXED INCOME FUND			ULTRA-SHORT FIXED INCOME FUND			U.S. GOVERNMENT FUND
	$5,407,097	(3)		$303,774	(3)		$250,211	(4)		$2,313,733	(5)		$1,296,563	(3)		$43,653	(4)
	$5,464,688	(6)		$302,623	(6)		$251,254	(7)		$2,319,264	(8)		$1,299,810	(6)		$43,905	(7)
	2			–			1			–			–			–
	102,250			1,703			91			15,415			3,790			25
	344			–			–			–			–			–
	51,235			8,371			15			22,621			11,044			–
	–			–			8			–			–			1
	4,056			5,256			319			5,336			1,807			1
	173			18			13			66			41			6
	28			4			3			22			9			4
	5,622,776			317,975			251,704			2,362,724			1,316,501			43,942
	101,907			1,348			–			64,008			14,971			–
	150,317			2,805			14,180			1,362			4,650			2,924
	–			21			3			–			–			1
	6,003			5,030			166			15,650			1,416			11
	5,143			80			10			231			155			3
	579			21			16			55			33			5
	132			8			6			57			33			1
	19			2			2			12			6			1
	230			–			3			–			–			–
	88			5			4			38			21			–
	24			5			10			5			4			5
	93			18			25			35			19			19
	264,535			9,343			14,425			81,453			21,308			2,970
	$5,358,241			$308,632			$237,279			$2,281,271			$1,295,193			$40,972
	$5,211,466			$311,817			$240,573			$2,275,214			$1,291,066			$41,966
	(852	)		(210	)		(231	)		(220	)		(15	)		62
	90,036			(1,369	)		(3,996	)		746			895			(1,282	)
	57,591			(1,606	)		933			5,531			3,247			226
	$5,358,241			$308,632			$237,279			$2,281,271			$1,295,193			$40,972
	715,222			16,221			24,162			224,857			126,837			4,268
	$7.49			$19.03			$9.82			$10.15			$10.21			$9.60

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 FIXED INCOME FUNDS

FIXED INCOME FUNDS

STATEMENTS OF OPERATIONS

Amount in thousands	CORE BOND FUND(1)			FIXED INCOME FUND
INVESTMENT INCOME:
Interest income		$1,164			$29,473
Dividend income		1	(3)		6	(3)
Total Investment Income		1,165			29,479
EXPENSES:
Investment advisory fees		170			3,400
Administration fees		64			1,283
Custody fees		20			101
Accounting fees		14			96
Transfer agent fees		43			855
Registration fees		15			18
Printing fees		18			26
Audit fees		8			14
Legal fees		8			12
Shareholder servicing fees		–			19
Trustee fees and expenses		5			16
Interest expense		–			–
Other		5			18
Total Expenses		370			5,858
Less expenses reimbursed by investment adviser		(202	)		(2,068	)
Net Expenses		168			3,790
Net Investment Income		997			25,689
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		(829	)		(20,023	)
Futures contracts		(121	)		2,816
Net change in unrealized appreciation (depreciation) on:
Investments		(1,820	)		(45,646	)
Futures contracts		(11	)		(1,367	)
Net Losses		(2,781	)		(64,220	)
Net Increase (Decrease) in Net Assets Resulting from Operations		$(1,784	)		$(38,531	)

(1) Formerly the Core Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

(2) Formerly the Short Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

(3) Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $1, $6, $1, and $1, respectively.

(4) Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of which the amount is less than $1.

(5) Amounts include dividend income from the U.S. Government Portfolio of the Northern Institutional Funds of $4 and $1, respectively.

(6) Amounts include dividend income from the Tax-Exempt Portfolio of the Northern Institutional Funds of $2.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

HIGH YIELD FIXED INCOME FUND			SHORT BOND FUND(2)			SHORT- INTERMEDIATE U.S. GOVERNMENT FUND			TAX- ADVANTAGED ULTRA-SHORT FIXED INCOME FUND			ULTRA-SHORT FIXED INCOME FUND			U.S. GOVERNMENT FUND
	$190,006			$3,108			$807			$9,613			$5,651			$209
	2,300	(4)		1	(3)		4	(5)		2	(6)		1	(3)		1	(5)
	192,306			3,109			811			9,615			5,652			210
	18,073			655			501			1,644			891			158
	4,142			246			188			1,677			891			34
	294			27			22			119			67			15
	286			26			23			122			69			13
	2,761			164			125			1,118			594			23
	32			14			16			18			23			12
	51			6			6			15			12			5
	24			8			9			14			11			8
	22			8			7			12			10			8
	453			–			7			–			–			1
	39			5			5			16			11			5
	6			–			–			–			–			–
	33			5			7			13			8			5
	26,216			1,164			916			4,768			2,587			287
	(5,323	)		(521	)		(418	)		(1,999	)		(1,107	)		(196	)
	20,893			643			498			2,769			1,480			91
	171,413			2,466			313			6,846			4,172			119
	71,985			(938	)		(2,865	)		740			521			(985	)
	–			754			(592	)		–			–			(139	)
	(196,890	)		(3,550	)		(304	)		(3,269	)		(996	)		(60	)
	–			(390	)		34			–			–			10
	(124,905	)		(4,124	)		(3,727	)		(2,529	)		(475	)		(1,174	)
	$46,508			$(1,658	)		$(3,414	)		$4,317			$3,697			$(1,055	)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 FIXED INCOME FUNDS

FIXED INCOME FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

	CORE BOND FUND(1)									FIXED INCOME FUND						HIGH YIELD FIXED INCOME FUND
Amounts in thousands	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FOUR MONTHS ENDED MARCH 31, 2013			FISCAL YEAR ENDED NOV. 30, 2012			SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013
OPERATIONS:
Net investment income		$997			$657			$2,436			$25,689			$45,962			$171,413			$408,100
Net realized gains (losses)		(950	)		99			2,460			(17,207	)		29,999			71,985			146,433
Net change in unrealized appreciation (depreciation)		(1,831	)		(1,010	)		2,178			(47,013	)		18,352			(196,890	)		139,068
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,784	)		(254	)		7,074			(38,531	)		94,313			46,508			693,601
CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets resulting Shares/Class A share transactions		13,568			(4,590	)		(9,626	)		(27,911	)		88,057			(402,361	)		238,076
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		13,568			(4,590	)		(9,626	)		(27,911	)		88,057			(402,361	)		238,076
DISTRIBUTIONS TO SHARES/CLASS A SHAREHOLDERS:
From net investment income		(1,085	)		(747	)		(2,710	)		(27,401	)		(49,731	)		(171,476	)		(406,375	)
From net realized gains		–			(2,193	)		(2,662	)		–			(36,886	)		–			–
Total Distributions to Shares/Class A Shareholders		(1,085	)		(2,940	)		(5,372	)		(27,401	)		(86,617	)		(171,476	)		(406,375	)
Total Increase (Decrease) in Net Assets		10,699			(7,784	)		(7,924	)		(93,843	)		95,753			(527,329	)		525,302
NET ASSETS:
Beginning of period		77,663			85,447			93,371			1,754,426			1,658,673			5,885,570			5,360,268
End of period		$88,362			$77,663			$85,447			$1,660,583			$1,754,426			$5,358,241			$5,885,570
Accumulated Undistributed Net Investment Income (Loss)		$(71	)		$17			$11			$(2,080	)		$(368	)		$(852	)		$(789	)

(1) Formerly the Core Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

(2) Formerly the Short Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT

SHORT BOND FUND(2)									SHORT- INTERMEDIATE U.S. GOVERNMENT FUND						TAX- ADVANTAGED ULTRA-SHORT FIXED INCOME FUND						ULTRA-SHORT FIXED INCOME FUND						U.S. GOVERNMENT FUND
SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FOUR MONTHS ENDED MARCH 31, 2013			FISCAL YEAR ENDED NOV. 30, 2012			SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013
	$2,466			$715			$2,117			$313			$958			$6,846			$10,325			$4,172			$6,365			$119			$293
	(184	)		305			1,378			(3,457	)		3,917			740			1,111			521			1,207			(1,124	)		1,302
	(3,940	)		(6	)		1,611			(270	)		212			(3,269	)		5,581			(996	)		1,771			(50	)		49
	(1,658	)		1,014			5,106			(3,414	)		5,087			4,317			17,017			3,697			9,343			(1,055	)		1,644
	2,735			147,476			35,253			(27,360	)		(46,798	)		39,564			894,368			194,525			634,600			(7,549	)		(11,320	)
	2,735			147,476			35,253			(27,360	)		(46,798	)		39,564			894,368			194,525			634,600			(7,549	)		(11,320	)
	(2,616	)		(832	)		(2,365	)		(544	)		(1,527	)		(6,846	)		(12,564	)		(4,172	)		(6,365	)		(148	)		(378	)
	–			–			–			–			(7,780	)		–			–			–			(1,112	)		–			(1,727	)
	(2,616	)		(832	)		(2,365	)		(544	)		(9,307	)		(6,846	)		(12,564	)		(4,172	)		(7,477	)		(148	)		(2,105	)
	(1,539	)		147,658			37,994			(31,318	)		(51,018	)		37,035			898,821			194,050			636,466			(8,752	)		(11,781	)
	310,171			162,513			124,519			268,597			319,615			2,244,236			1,345,415			1,101,143			464,677			49,724			61,505
	$308,632			$310,171			$162,513			$237,279			$268,597			$2,281,271			$2,244,236			$1,295,193			$1,101,143			$40,972			$49,724
	$(210	)		$(60	)		$(8	)		$(231	)		$–			$(220	)		$(220	)		$(15	)		$(15	)		$62			$91

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 FIXED INCOME FUNDS

FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS

CORE BOND FUND (1)	SHARES/CLASS A SHARES
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FOUR MONTHS ENDED MARCH 31, 2013			FISCAL YEAR ENDED NOV. 30, 2012			FISCAL YEAR ENDED NOV. 30, 2011			FISCAL YEAR ENDED NOV. 30, 2010			FISCAL YEAR ENDED NOV. 30, 2009			FISCAL YEAR ENDED NOV. 30, 2008(2)
Net Asset Value, Beginning of Period		$10.55			$10.96			$10.74			$10.64			$10.36			$9.48			$9.79
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.12			0.08			0.29			0.32			0.37			0.46			0.41
Net realized and unrealized gains (losses)		(0.35	)		(0.10	)		0.56			0.22			0.28			0.88			(0.31	)
Total from Investment Operations		(0.23	)		(0.02	)		0.85			0.54			0.65			1.34			0.10
LESS DISTRIBUTIONS PAID:
From net investment income		(0.13	)		(0.10	)		(0.32	)		(0.32	)		(0.37	)		(0.46	)		(0.41	)
From net realized gains		–			(0.29	)		(0.31	)		(0.12	)		–			–			–
Total Distributions Paid		(0.13	)		(0.39	)		(0.63	)		(0.44	)		(0.37	)		(0.46	)		(0.41	)
Net Asset Value, End of Period		$10.19			$10.55			$10.96			$10.74			$10.64			$10.36			$9.48
Total Return(3)		(1.98	)%		(0.33	)%		8.25	%		5.31	%		6.46	%		14.47	%		1.02	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$88,362			$77,663			$85,447			$93,371			$100,451			$95,028			$174,556
Ratio to average net assets of:(4)
Expenses, net of waivers, reimbursements and credits		0.40	%(5)		0.39	%(5)		0.35	%(5)		0.32	%(5)		0.36	%		0.36	%		0.36	%
Expenses, before waivers, reimbursements and credits		0.87	%		0.89	%		0.68	%		0.62	%		0.64	%		0.61	%		0.57	%
Net investment income, net of waivers, reimbursements and credits		2.33	%(5)		2.44	%(5)		2.72	%(5)		2.99	%(5)		3.43	%		4.47	%		4.19	%
Net investment income, before waivers, reimbursements and credits		1.86	%		1.94	%		2.39	%		2.69	%		3.15	%		4.22	%		3.98	%
Portfolio Turnover Rate		548.43	%		417.78	%		704.37	%		851.07	%		765.28	%		575.14	%		681.34	%

(1) Formerly the Core Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

(2) Net investment income for the year ended was calculated using the average shares outstanding method.

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $3,000, $4,000, $9,000, and $36,000, which represents 0.01, 0.01, 0.01, and 0.04 percent of average net assets, for the six months ended September 30, 2013, four months ended March 31, 2013, and fiscal years ended November 30, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			FISCAL YEAR ENDED MARCH 31, 2012			FISCAL YEAR ENDED MARCH 31, 2011			FISCAL YEAR ENDED MARCH 31, 2010			FISCAL YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.54			$10.46			$10.14			$10.25			$9.77			$9.84
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.16			0.29			0.27			0.30			0.35			0.33
Net realized and unrealized gains (losses)		(0.38	)		0.34			0.47			0.20			0.48			(0.07	)
Total from Investment Operations		(0.22	)		0.63			0.74			0.50			0.83			0.26
LESS DISTRIBUTIONS PAID:
From net investment income(1)		(0.17	)		(0.32	)		(0.28	)		(0.30	)		(0.35	)		(0.33	)
From net realized gains		–			(0.23	)		(0.14	)		(0.31	)		–			–
Total Distributions Paid		(0.17	)		(0.55	)		(0.42	)		(0.61	)		(0.35	)		(0.33	)
Net Asset Value, End of Period		$10.15			$10.54			$10.46			$10.14			$10.25			$9.77
Total Return(2)		(2.13	)%		6.02	%		7.48	%		4.82	%		8.78	%		2.68	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,660,583			$1,754,426			$1,658,673			$1,112,234			$1,080,546			$963,436
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.44	%(4)		0.43	%(4)		0.75	%(4)		0.85	%(4)		0.90	%		0.90	%
Expenses, before reimbursements and credits		0.68	%		0.80	%		0.98	%		0.99	%		0.99	%		0.99	%
Net investment income, net of reimbursements and credits		3.01	%(4)		2.75	%(4)		2.49	%(4)		2.83	%(4)		3.46	%		3.44	%
Net investment income, before reimbursements and credits		2.77	%		2.38	%		2.26	%		2.69	%		3.37	%		3.35	%
Portfolio Turnover Rate		423.45	%		1,049.21	%		699.97	%		658.14	%		616.19	%		613.60	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $45,000, $321,000, $184,000 and $551,000, which represents 0.01, 0.02, 0.01 and 0.05 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 FIXED INCOME FUNDS

FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS continued

HIGH YIELD FIXED INCOME FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			FISCAL YEAR ENDED MARCH 31, 2012			FISCAL YEAR ENDED MARCH 31, 2011			FISCAL YEAR ENDED MARCH 31, 2010			FISCAL YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$7.66			$7.31			$7.45			$7.08			$5.89			$7.29
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.24			0.51			0.53			0.56			0.61			0.55
Net realized and unrealized gains (losses)		(0.17	)		0.35			(0.14	)		0.37			1.19			(1.39	)
Total from Investment Operations		0.07			0.86			0.39			0.93			1.80			(0.84	)
LESS DISTRIBUTIONS PAID:
From net investment income(1)		(0.24	)		(0.51	)		(0.53	)		(0.56	)		(0.61	)		(0.56	)
Total Distributions Paid		(0.24	)		(0.51	)		(0.53	)		(0.56	)		(0.61	)		(0.56	)
Net Asset Value, End of Period		$7.49			$7.66			$7.31			$7.45			$7.08			$5.89
Total Return(2)		0.88	%		12.18	%		5.60	%		13.71	%		31.76	%		(11.88	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$5,358,241			$5,885,570			$5,360,268			$4,122,592			$2,960,644			$1,419,454
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.76	%(4)		0.75	%(4)		0.83	%(4)		0.86	%(4)		0.89	%		0.90	%
Expenses, before reimbursements and credits		0.95	%		0.95	%		0.95	%		0.96	%		0.99	%		1.01	%
Net investment income, net of reimbursements and credits		6.20	%(4)		6.86	%(4)		7.33	%(4)		7.75	%(4)		9.12	%		8.41	%
Net investment income, before reimbursements and credits		6.01	%		6.66	%		7.21	%		7.65	%		9.02	%		8.30	%
Portfolio Turnover Rate		48.13	%		115.51	%		88.10	%		114.25	%		176.39	%		96.79	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $59,000, $343,000, $99,000 and $335,000, which represents less than 0.005, 0.01, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013, and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

SHORT BOND FUND (1)	SHARES/CLASS A SHARES
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FOUR MONTHS ENDED MARCH 31, 2013			FISCAL YEAR ENDED NOV. 30, 2012			FISCAL YEAR ENDED NOV. 30, 2011			FISCAL YEAR ENDED NOV. 30, 2010			FISCAL YEAR ENDED NOV. 30, 2009			FISCAL YEAR ENDED NOV. 30, 2008(2)
Net Asset Value, Beginning of Period		$19.27			$19.27			$18.91			$19.05			$18.93			$18.11			$18.35
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.14			0.06			0.26			0.36			0.49			0.46			0.57
Net realized and unrealized gains (losses)		(0.23	)		–			0.40			(0.08	)		0.14			0.84			(0.23	)
Total from Investment Operations		(0.09	)		0.06			0.66			0.28			0.63			1.30			0.34
LESS DISTRIBUTIONS PAID:
From net investment income		(0.15	)		(0.06	)		(0.30	)		(0.42	)		(0.51	)		(0.48	)		(0.58	)
Total Distributions Paid		(0.15	)		(0.06	)		(0.30	)		(0.42	)		(0.51	)		(0.48	)		(0.58	)
Net Asset Value, End of Period		$19.03			$19.27			$19.27			$18.91			$19.05			$18.93			$18.11
Total Return(3)		(0.45	)%		0.34	%		3.50	%		1.47	%		3.36	%		7.24	%		1.86	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$308,632			$310,171			$162,513			$124,519			$175,313			$193,337			$115,874
Ratio to average net assets of:(4)
Expenses, net of waivers, reimbursements and credits		0.39	%(5)		0.38	%(5)		0.35	%(5)		0.34	%(5)		0.36	%		0.36	%		0.36	%
Expenses, before waivers, reimbursements and credits		0.71	%		0.74	%		0.61	%		0.57	%		0.58	%		0.59	%		0.58	%
Net investment income, net of waivers, reimbursements and credits		1.51	%(5)		0.89	%(5)		1.39	%(5)		1.86	%(5)		2.52	%		2.48	%		3.13	%
Net investment income, before waivers, reimbursements and credits		1.19	%		0.53	%		1.13	%		1.63	%		2.30	%		2.25	%		2.91	%
Portfolio Turnover Rate		213.03	%		181.67	%		517.67	%		411.73	%		432.78	%		903.45	%		508.41	%

(1) Formerly the Short Bond Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

(2) Net investment income for the year ended was calculated using the average shares outstanding method.

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $13,000, $19,000, $21,000 and $32,000, which represents 0.01, 0.02, 0.01 and 0.02 percent of average net assets for the six months ended September 30, 2013, four months ended March 31, 2013, and fiscal years ended November 30, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 FIXED INCOME FUNDS

FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS continued

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			FISCAL YEAR ENDED MARCH 31, 2012			FISCAL YEAR ENDED MARCH 31, 2011			FISCAL YEAR ENDED MARCH 31, 2010			FISCAL YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$9.97			$10.13			$10.31			$10.37			$10.62			$10.37
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.01			0.03			0.01			0.06			0.09			0.16
Net realized and unrealized gains (losses)		(0.14	)		0.15			0.28			0.18			0.08			0.34
Total from Investment Operations		(0.13	)		0.18			0.29			0.24			0.17			0.50
LESS DISTRIBUTIONS PAID:
From net investment income		(0.02	)		(0.06	)		(0.02	)		(0.05	)		(0.10	)		(0.16	)
From net realized gains		–			(0.28	)		(0.45	)		(0.25	)		(0.32	)		(0.09	)
Total Distributions Paid		(0.02	)		(0.34	)		(0.47	)		(0.30	)		(0.42	)		(0.25	)
Net Asset Value, End of Period		$9.82			$9.97			$10.13			$10.31			$10.37			$10.62
Total Return(1)		(1.29	)%		1.76	%		2.85	%		2.30	%		1.37	%		4.89	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$237,279			$268,597			$319,615			$1,052,765			$794,392			$557,526
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.40	%(3)		0.38	%(3)		0.79	%(3)		0.83	%(3)		0.90	%		0.90	%(4)
Expenses, before reimbursements and credits		0.73	%		0.85	%		0.99	%		0.99	%		0.99	%		1.00	%
Net investment income, net of reimbursements and credits		0.25	%(3)		0.34	%(3)		0.14	%(3)		0.32	%(3)		0.87	%		1.50	%
Net investment income (loss), before reimbursements and credits		(0.08	)%		(0.13	)%		(0.06	)%		0.16	%		0.78	%		1.40	%
Portfolio Turnover Rate		1,045.52	%		2,309.43	%		1,331.05	%		1,061.57	%		1,393.08	%		1,169.80	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income (loss) ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $4,000, $55,000, $297,000 and $652,000, which represents less than 0.005, 0.02, 0.04 and 0.07 percent of average net assets for the six months ended September 30, 2013, and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount.

(4) The net expense ratio includes custodian credits of approximately $29,000, which represents 0.01 percent of average net assets for the fiscal year ended March 31, 2009. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			FISCAL YEAR ENDED MARCH 31, 2012			FISCAL YEAR ENDED MARCH 31, 2011			PERIOD ENDED MARCH 31, 2010(1)
Net Asset Value, Beginning of Period		$10.16			$10.13			$10.12			$10.10			$10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.03			0.07			0.10			0.10			0.07
Net realized and unrealized gains (losses)		(0.01	)		0.04			0.02			0.03			0.10
Total from Investment Operations		0.02			0.11			0.12			0.13			0.17
LESS DISTRIBUTIONS PAID:
From net investment income		(0.03	)		(0.08	)		(0.10	)		(0.10	)		(0.07	)
From net realized gains		–			–			(0.01	)		(0.01	)		–	(2)
Total Distributions Paid		(0.03	)		(0.08	)		(0.11	)		(0.11	)		(0.07	)
Net Asset Value, End of Period		$10.15			$10.16			$10.13			$10.12			$10.10
Total Return(3)		0.21	%		1.08	%		1.18	%		1.26	%		1.71	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$2,281,271			$2,244,236			$1,345,415			$696,520			$328,663
Ratio to average net assets of:(4)
Expenses, net of reimbursements and credits		0.25	%(5)		0.20	%(5)		0.25	%(5)		0.24	%(5)		0.25	%(6)
Expenses, before reimbursements and credits		0.43	%		0.43	%		0.43	%		0.44	%		0.50	%
Net investment income, net of reimbursements and credits		0.61	%(5)		0.62	%(5)		0.95	%(5)		1.01	%(5)		0.84	%(7)
Net investment income, before reimbursements and credits		0.43	%		0.39	%		0.77	%		0.81	%		0.59	%(7)
Portfolio Turnover Rate		20.66	%		32.02	%		116.89	%		40.44	%		32.98	%

(1) Commenced investment operations on June 18, 2009.

(2) Per share amounts from distributions from net realized gains were less than $0.01 per share.

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $3,000, $17,000, $16,000 and $28,000, which represents less than 0.005, less than 0.001, less than 0.005, and 0.01 percent of average net assets for the six months ended September 30, 2013, and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(6) The net expense ratio includes custodian credits of approximately $20,000 which represents 0.01 percent of average net assets for the period from June 18, 2009 (commencement of operations) to March 31, 2010. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

(7) As the Fund commenced investment operations on June 18, 2009, annualized net investment income may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 FIXED INCOME FUNDS

FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS continued

ULTRA-SHORT FIXED INCOME FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			FISCAL YEAR ENDED MARCH 31, 2012			FISCAL YEAR ENDED MARCH 31, 2011			PERIOD ENDED MARCH 31, 2010(1)
Net Asset Value, Beginning of Period		$10.22			$10.18			$10.15			$10.11			$10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.04			0.10			0.12			0.10			0.08
Net realized and unrealized gains (losses)		(0.01	)		0.05			0.05			0.04			0.11
Total from Investment Operations		0.03			0.15			0.17			0.14			0.19
LESS DISTRIBUTIONS PAID:
From net investment income		(0.04	)		(0.10	)		(0.12	)		(0.10	)		(0.08	)
From net realized gains		–			(0.01	)		(0.02	)		–	(2)		–
Total Distributions Paid		(0.04	)		(0.11	)		(0.14	)		(0.10	)		(0.08	)
Net Asset Value, End of Period		$10.21			$10.22			$10.18			$10.15			$10.11
Total Return(3)		0.25	%		1.49	%		1.59	%		1.47	%		1.97	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,295,193			$1,101,143			$464,677			$371,411			$173,199
Ratio to average net assets of:(4)
Expenses, net of reimbursements and credits		0.25	%(5)		0.25	%(5)		0.25	%(5)		0.24	%(5)		0.25	%(6)
Expenses, before reimbursements and credits		0.44	%		0.45	%		0.44	%		0.46	%		0.55	%
Net investment income, net of reimbursements and credits		0.70	%(5)		0.90	%(5)		1.12	%(5)		1.04	%(5)		1.02	%(7)
Net investment income, before reimbursements and credits		0.51	%		0.70	%		0.93	%		0.82	%		0.72	%(7)
Portfolio Turnover Rate		20.50	%		49.42	%		45.97	%		52.01	%		26.61	%

(1) Commenced investment operations on June 18, 2009.

(2) Per share amounts from distributions from net realized gains were less than $0.01 per share.

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $8,000, $26,000, $8,000 and $22,000, which represents less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013, and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(6) The net expense ratio includes custodian credits of approximately $11,000 which represents 0.01 percent of average net assets for the period from June 18, 2009 (commencement of operations) to March 31, 2010. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

(7) As the Fund commenced investment operations on June 18, 2009, annualized net investment income may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

U.S. GOVERNMENT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			FISCAL YEAR ENDED MARCH 31, 2012			FISCAL YEAR ENDED MARCH 31, 2011			FISCAL YEAR ENDED MARCH 31, 2010			FISCAL YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$9.85			$9.97			$9.77			$10.03			$10.65			$10.26
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.03			0.06			0.05			0.11			0.17			0.20
Net realized and unrealized gains (losses)		(0.25	)		0.22			0.49			0.22			(0.14	)		0.43
Total from Investment Operations		(0.22	)		0.28			0.54			0.33			0.03			0.63
LESS DISTRIBUTIONS PAID:
From net investment income		(0.03	)		(0.07	)		(0.06	)		(0.12	)		(0.17	)		(0.21	)
From net realized gains		–			(0.33	)		(0.28	)		(0.47	)		(0.48	)		(0.03	)
Total Distributions Paid		(0.03	)		(0.40	)		(0.34	)		(0.59	)		(0.65	)		(0.24	)
Net Asset Value, End of Period		$9.60			$9.85			$9.97			$9.77			$10.03			$10.65
Total Return(1)		(2.22	)%		2.75	%		5.51	%		3.31	%		0.82	%		6.26	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$40,972			$49,724			$61,505			$74,041			$98,398			$144,338
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.40	%(3)		0.39	%(3)		0.76	%(3)		0.85	%(3)		0.90	%		0.90	%
Expenses, before reimbursements and credits		1.27	%		1.22	%		1.14	%		1.13	%		1.09	%		1.07	%
Net investment income, net of reimbursements and credits		0.53	%(3)		0.51	%(3)		0.50	%(3)		1.00	%(3)		1.55	%		1.98	%
Net investment income (loss), before reimbursements and credits		(0.34	)%		(0.32	)%		0.12	%		0.72	%		1.36	%		1.81	%
Portfolio Turnover Rate		1,122.56	%		2,761.35	%		1,609.59	%		982.00	%		1,271.78	%		1,055.57	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income (loss) ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $1,000, $11,000, $13,000 and $41,000, which represents less than 0.005, 0.02, 0.02, and 0.05 percent of average net assets for the six months ended September 30, 2013, and the fiscal years ended March 31, 2013, 2012 and 2011, respecitively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 9.5%
Automobile – 0.3%
Nissan Auto Receivables Owner Trust, Series 2012-A, Class A3, 0.73%, 5/16/16		$260		$261
Commercial Mortgage-Backed Securities – 9.2%
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.41%, 9/10/47		350		384
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class A4, 5.54%, 10/12/41		490		540
Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4, 5.90%, 6/11/40		80		90
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class A4, 5.74%, 9/11/42		455		516
Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.88%, 12/10/49		720		814
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, 5.62%, 10/15/48		665		729
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.44%, 6/12/47		265		293
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.55%, 5/12/45		527		577
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A4, 5.40%, 5/15/45		440		482
JP Morgan Chase Commercial Mortgage Trust, Series 2005-LDP1, Class A2, 4.63%, 3/15/46		61		61
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2, 6.32%, 4/15/41		170		197
Morgan Stanley Capital I Trust, Series 2007-IQ16, Class A4, 5.81%, 12/12/49		480		540
Morgan Stanley Capital I Trust, Series 2007-T27, Class A4, 5.82%, 6/11/42		405		458

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 9.5% – continued
Commercial Mortgage-Backed Securities – 9.2% – continued
Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.46%, 1/11/43		$450		$523
Morgan Stanley Capital I Trust, Series 2006-HQ9, Class A4, 5.73%, 7/12/44		597		655
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A4, 5.33%, 12/15/43		586		642
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.31%, 11/15/48		600		660
				8,161
Total Asset-Backed Securities
(Cost $8,499)				8,422
CORPORATE BONDS – 34.6%
Aerospace/Defense – 0.1%
Northrop Grumman Corp., 1.75%, 6/1/18		100		98
Agriculture – 1.4%
Altria Group, Inc., 10.20%, 2/6/39		205		313
Bunge Ltd. Finance Corp., 4.10%, 3/15/16		125		132
8.50%, 6/15/19		205		255
Lorillard Tobacco Co., 8.13%, 6/23/19		300		364
Reynolds American, Inc., 6.15%, 9/15/43		125		131
				1,195
Auto Manufacturers – 0.7%
Daimler Finance North America LLC, 1.45%, 8/1/16 (1)(2)		100		100
Ford Motor Co., 7.45%, 7/16/31		95		116
Nissan Motor Acceptance Corp., 4.50%, 1/30/15 (1)(2)		120		126
1.00%, 3/15/16 (2)		290		288
				630
Auto Parts & Equipment – 0.4%
BorgWarner, Inc., 4.63%, 9/15/20		240		254

See Notes to the Financial Statements.

FIXED INCOME FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Auto Parts & Equipment – 0.4% – continued
Johnson Controls, Inc., 1.75%, 3/1/14		$90		$90
				344
Banks – 5.6%
Bank of America Corp., 3.75%, 7/12/16		75		79
3.88%, 3/22/17		200		213
6.00%, 9/1/17		170		192
5.70%, 1/24/22		145		162
4.10%, 7/24/23		185		184
Branch Banking & Trust Co., 1.45%, 10/3/16		95		96
Capital One N.A., 1.50%, 3/22/18		105		102
Citigroup, Inc., 2.65%, 3/2/15		135		138
1.25%, 1/15/16		65		65
1.70%, 7/25/16		80		80
6.00%, 8/15/17		275		314
3.50%, 5/15/23		190		171
6.68%, 9/13/43		115		124
Discover Bank, 2.00%, 2/21/18		125		122
Goldman Sachs Group (The), Inc., 3.63%, 2/7/16		130		137
5.63%, 1/15/17		145		160
2.38%, 1/22/18		115		114
2.90%, 7/19/18		145		146
5.75%, 1/24/22		155		172
6.75%, 10/1/37		135		141
6.25%, 2/1/41		90		101
HSBC USA, Inc., 2.38%, 2/13/15		125		128
1.63%, 1/16/18		95		93
JPMorgan Chase & Co., 7.90%, 4/30/18		135		146
6.30%, 4/23/19		130		152
5.15%, 5/1/23		155		136
Morgan Stanley, 4.00%, 7/24/15		175		183
3.45%, 11/2/15		105		109
4.75%, 3/22/17		120		130
7.30%, 5/13/19		160		191
5.75%, 1/25/21		100		111

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Banks – 5.6% – continued
4.10%, 5/22/23		$195		$182
6.38%, 7/24/42		96		109
PNC Financial Services Group (The), Inc., 4.85%, 6/1/23		95		82
Wells Fargo & Co., 7.98%, 3/15/18		135		148
				4,913
Beverages – 0.6%
PepsiCo, Inc., 2.25%, 1/7/19		265		266
SABMiller Holdings, Inc., 1.85%, 1/15/15 (2)		225		228
				494
Biotechnology – 0.6%
Celgene Corp., 2.30%, 8/15/18		30		30
5.25%, 8/15/43		105		104
Genzyme Corp., 3.63%, 6/15/15		110		115
Gilead Sciences, Inc., 3.05%, 12/1/16		280		296
				545
Chemicals – 0.4%
Airgas, Inc., 1.65%, 2/15/18		140		136
Eastman Chemical Co., 2.40%, 6/1/17		150		152
Ecolab, Inc., 1.45%, 12/8/17		110		108
				396
Commercial Services – 0.3%
ERAC USA Finance LLC, 7.00%, 10/15/37 (1)(2)		220		261
Computers – 0.4%
Hewlett-Packard Co., 2.60%, 9/15/17		105		106
NetApp, Inc., 2.00%, 12/15/17		255		251
				357
Diversified Financial Services – 2.9%
American Express Credit Corp., 2.80%, 9/19/16		121		127

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Diversified Financial Services – 2.9% – continued
Countrywide Financial Corp., 6.25%, 5/15/16		$205		$227
FMR LLC, 6.45%, 11/15/39 (1)(2)		430		492
Ford Motor Credit Co. LLC, 4.38%, 8/6/23		230		230
General Electric Capital Corp., 3.35%, 10/17/16		140		148
5.63%, 5/1/18		255		293
6.25%, 12/15/22		250		252
Hyundai Capital America, 1.63%, 10/2/15 (2)		455		456
4.00%, 6/8/17 (1)(2)		90		95
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (1)(2)		180		204
SLM Corp., 3.88%, 9/10/15		55		56
				2,580
Electric – 2.1%
CMS Energy Corp., 8.75%, 6/15/19		180		231
Commonwealth Edison Co., 4.70%, 4/15/15		170		180
Exelon Corp., 5.63%, 6/15/35		170		170
Exelon Generation Co. LLC, 6.20%, 10/1/17		100		115
Jersey Central Power & Light Co., 4.70%, 4/1/24 (1)(2)		130		131
MidAmerican Energy Co., 2.40%, 3/15/19		160		163
NextEra Energy Capital Holdings, Inc., 1.34%, 9/1/15		205		206
PPL Capital Funding, Inc., 3.50%, 12/1/22		95		90
Progress Energy, Inc., 4.88%, 12/1/19		100		111
7.75%, 3/1/31		180		231
Southern (The) Co., 2.45%, 9/1/18		200		202
				1,830

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Electronics – 0.4%
Agilent Technologies, Inc., 6.50%, 11/1/17		$195		$228
Thermo Fisher Scientific, Inc., 3.20%, 3/1/16		150		156
				384
Entertainment – 0.2%
International Game Technology, 5.35%, 10/15/23		175		179
Food – 0.7%
ConAgra Foods, Inc., 2.10%, 3/15/18		135		134
Kraft Foods Group, Inc., 6.13%, 8/23/18		365		429
Unilever Capital Corp., 2.20%, 3/6/19		90		91
				654
Gas – 0.2%
CenterPoint Energy, Inc., 6.50%, 5/1/18		115		136
Healthcare - Products – 0.5%
Baxter International, Inc., 5.38%, 6/1/18		130		149
CR Bard, Inc., 1.38%, 1/15/18		75		73
Life Technologies Corp., 5.00%, 1/15/21		225		238
				460
Healthcare - Services – 0.7%
Aetna, Inc., 6.00%, 6/15/16		90		101
Cigna Corp., 2.75%, 11/15/16		100		104
Humana, Inc., 3.15%, 12/1/22		120		112
4.63%, 12/1/42		30		27
Ventas Realty LP, 5.70%, 9/30/43		80		81
WellPoint, Inc., 1.88%, 1/15/18		100		99
3.13%, 5/15/22		115		109
				633

See Notes to the Financial Statements.

FIXED INCOME FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Insurance – 2.4%
Aflac, Inc., 2.65%, 2/15/17		$90		$93
American International Group, Inc., 2.38%, 8/24/15		90		92
3.80%, 3/22/17		175		186
4.13%, 2/15/24		175		175
8.18%, 5/15/58		150		176
Liberty Mutual Group, Inc., 5.00%, 6/1/21 (1)(2)		120		127
Principal Financial Group, Inc., 1.85%, 11/15/17		60		59
Protective Life Corp., 8.45%, 10/15/39		350		441
Prudential Financial, Inc., 3.00%, 5/12/16		280		293
5.63%, 6/15/43		205		193
Reinsurance Group of America, Inc., 4.70%, 9/15/23		290		297
				2,132
Internet – 0.6%
Amazon.com, Inc., 1.20%, 11/29/17		60		59
Symantec Corp., 2.75%, 9/15/15		230		237
2.75%, 6/15/17		130		132
4.20%, 9/15/20		85		87
				515
Iron/Steel – 0.3%
Commercial Metals Co., 7.35%, 8/15/18		130		141
Nucor Corp., 4.00%, 8/1/23		100		98
				239
Lodging – 0.3%
Marriott International, Inc., 3.38%, 10/15/20		275		274
Machinery - Diversified – 0.4%
Cummins, Inc., 4.88%, 10/1/43		195		198
Roper Industries, Inc., 6.25%, 9/1/19		160		186
				384

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Media – 2.0%
CBS Corp., 1.95%, 7/1/17		$75		$75
Comcast Corp., 4.95%, 6/15/16		85		94
6.30%, 11/15/17		140		165
4.25%, 1/15/33		160		151
6.40%, 5/15/38		240		284
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 2.40%, 3/15/17		140		141
5.20%, 3/15/20		155		164
5.15%, 3/15/42		160		136
News America, Inc., 7.25%, 5/18/18		115		141
6.90%, 8/15/39		125		145
Time Warner Cable, Inc., 5.50%, 9/1/41		105		86
Time Warner, Inc., 6.10%, 7/15/40		140		150
				1,732
Mining – 0.4%
Freeport-McMoRan Copper & Gold, Inc., 1.40%, 2/13/15		90		90
3.88%, 3/15/23 (1)(2)		105		97
5.45%, 3/15/43 (1)(2)		105		94
Newmont Mining Corp., 3.50%, 3/15/22		90		79
				360
Miscellaneous Manufacturing – 0.3%
General Electric Co., 0.85%, 10/9/15		110		110
5.25%, 12/6/17		120		137
				247
Office/Business Equipment – 0.5%
Xerox Corp., 4.25%, 2/15/15		235		245
2.95%, 3/15/17		110		113
4.50%, 5/15/21		90		93
				451
Oil & Gas – 0.9%
Anadarko Petroleum Corp., 6.38%, 9/15/17		180		209

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Oil & Gas – 0.9% – continued
EQT Corp., 4.88%, 11/15/21		$145		$150
Phillips 66, 2.95%, 5/1/17		200		207
Rowan Cos., Inc., 4.88%, 6/1/22		195		201
				767
Oil & Gas Services – 0.1%
National Oilwell Varco, Inc., 1.35%, 12/1/17		125		123
Pharmaceuticals – 1.2%
Cardinal Health, Inc., 1.70%, 3/15/18		57		56
3.20%, 3/15/23		218		203
Express Scripts Holding Co., 3.13%, 5/15/16		160		167
McKesson Corp., 0.95%, 12/4/15		165		165
5.70%, 3/1/17		100		113
Medco Health Solutions, Inc., 2.75%, 9/15/15		125		129
Mylan, Inc., 1.80%, 6/24/16 (2)		125		126
Teva Pharmaceutical Finance IV LLC, 2.25%, 3/18/20		85		81
				1,040
Pipelines – 1.6%
Energy Transfer Partners L.P., 4.15%, 10/1/20		225		231
3.60%, 2/1/23		105		98
6.50%, 2/1/42		160		169
Enterprise Products Operating LLC, 6.30%, 9/15/17		195		226
6.45%, 9/1/40		220		252
Kinder Morgan Energy Partners L.P., 5.95%, 2/15/18		200		229
Williams Partners L.P., 3.80%, 2/15/15		245		254
				1,459
Real Estate Investment Trusts – 2.3%
American Tower Corp., 3.50%, 1/31/23		165		145

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Real Estate Investment Trusts – 2.3% – continued
Boston Properties L.P., 4.13%, 5/15/21		$125		$129
DDR Corp., 7.50%, 7/15/18		115		137
EPR Properties, 5.75%, 8/15/22		20		20
5.25%, 7/15/23		130		126
ERP Operating L.P., 5.25%, 9/15/14		140		146
4.63%, 12/15/21		160		169
HCP, Inc., 5.63%, 5/1/17		150		168
3.75%, 2/1/19		70		72
2.63%, 2/1/20		150		142
Host Hotels & Resorts L.P., 4.75%, 3/1/23		180		181
Kimco Realty Corp., 5.70%, 5/1/17		115		129
Realty Income Corp., 2.00%, 1/31/18		100		98
UDR, Inc., 3.70%, 10/1/20		130		131
Ventas Realty L.P./Ventas Capital Corp., 4.00%, 4/30/19		90		94
4.75%, 6/1/21		180		189
				2,076
Retail – 0.9%
CVS Caremark Corp., 5.75%, 6/1/17		100		114
5.75%, 5/15/41		150		165
Home Depot (The), Inc., 2.25%, 9/10/18		195		197
Macy’s Retail Holdings, Inc., 4.38%, 9/1/23		75		76
McDonald’s Corp., 5.80%, 10/15/17		180		209
				761
Semiconductors – 0.2%
Samsung Electronics America, Inc., 1.75%, 4/10/17 (1)(2)		160		160
Software – 0.7%
Autodesk, Inc., 1.95%, 12/15/17		215		211

See Notes to the Financial Statements.

FIXED INCOME FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 34.6% – continued
Software – 0.7% – continued
CA, Inc., 2.88%, 8/15/18		$70		$70
Fidelity National Information Services, Inc., 3.50%, 4/15/23		100		90
Oracle Corp., 1.20%, 10/15/17		245		241
				612
Telecommunications – 1.2%
AT&T, Inc., 1.40%, 12/1/17		130		127
CC Holdings GS V LLC/Crown Castle GS III Corp., 2.38%, 12/15/17		75		74
Juniper Networks, Inc., 4.60%, 3/15/21		160		163
Verizon Communications, Inc., 1.78%, 9/15/16		155		160
2.50%, 9/15/16		235		242
3.50%, 11/1/21		140		138
6.40%, 9/15/33		130		144
				1,048
Transportation – 0.1%
CSX Corp., 4.75%, 5/30/42		95		91
Total Corporate Bonds
(Cost $30,237)				30,560
FOREIGN ISSUER BONDS – 9.0%
Banks – 1.3%
Australia & New Zealand Banking Group Ltd., 0.90%, 2/12/16		170		170
ING Bank N.V., 5.80%, 9/25/23 (1)(2)		130		131
Lloyds TSB Bank PLC, 6.50%, 9/14/20 (1)(2)		315		348
Royal Bank of Canada, 1.45%, 9/9/16		205		207
1.20%, 9/19/17		300		296
				1,152
Beverages – 0.8%
Heineken N.V., 1.40%, 10/1/17 (1)(2)		75		74

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 9.0% – continued
Beverages – 0.8% continued
Pernod-Ricard S.A., 2.95%, 1/15/17 (1)(2)		$415		$431
4.45%, 1/15/22 (1)(2)		110		113
SABMiller PLC, 6.50%, 7/1/16 (1)(2)		105		119
				737
Chemicals – 0.5%
Agrium, Inc., 4.90%, 6/1/43		105		95
LyondellBasell Industries N.V., 5.00%, 4/15/19		210		231
Potash Corp. of Saskatchewan, Inc., 3.25%, 12/1/17		80		84
				410
Computers – 0.4%
Seagate HDD Cayman, 4.75%, 6/1/23 (1)(2)		380		366
Diversified Financial Services – 0.2%
Macquarie Group Ltd., 7.30%, 8/1/14 (1) (2)		165		173
Electric – 0.3%
PPL WEM Holdings PLC, 3.90%, 5/1/16 (1)(2)		225		236
Healthcare - Products – 0.2%
Covidien International Finance S.A., 1.35%, 5/29/15		200		202
Insurance – 1.0%
Allied World Assurance Co. Ltd., 7.50%, 8/1/16		255		296
5.50%, 11/15/20		190		207
XL Group PLC, 6.50%, 4/15/17		400		383
				886
Internet – 0.2%
Baidu, Inc., 3.25%, 8/6/18		210		210
Mining – 0.3%
Anglo American Capital PLC, 2.63%, 9/27/17 (1)(2)		100		98

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 9.0% – continued
Mining – 0.3% – continued
Rio Tinto Finance USA PLC, 1.63%, 8/21/17		$135		$133
				231
Miscellaneous Manufacturing – 0.2%
Pentair Finance S.A., 1.88%, 9/15/17		95		94
Tyco Electronics Group S.A., 6.55%, 10/1/17		100		115
				209
Oil & Gas – 2.4%
BP Capital Markets PLC, 1.38%, 11/6/17		215		212
1.38%, 5/10/18		75		73
Canadian Natural Resources Ltd., 5.70%, 5/15/17		145		164
CNOOC Finance 2013 Ltd., 3.00%, 5/9/23		380		341
Ensco PLC, 3.25%, 3/15/16		140		146
Lukoil International Finance B.V., 3.42%, 4/24/18 (1)(2)		105		104
Petrobras Global Finance B.V., 3.00%, 1/15/19		95		89
Petrobras International Finance Co. - Pifco, 3.50%, 2/6/17		165		168
Petro-Canada, 6.05%, 5/15/18		245		286
Petroleos Mexicanos, 5.50%, 1/21/21		205		219
Transocean, Inc., 2.50%, 10/15/17		310		311
				2,113
Oil & Gas Services – 0.4%
Weatherford International Ltd., 5.13%, 9/15/20		180		188
5.95%, 4/15/42		150		143
				331
Pipelines – 0.1%
TransCanada PipeLines Ltd., 0.88%, 3/2/15		85		85

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 9.0% – continued
Telecommunications – 0.1%
Nippon Telegraph & Telephone Corp., 1.40%, 7/18/17		$80		$80
Transportation – 0.6%
Kansas City Southern de Mexico S.A.de C.V., 2.35%, 5/15/20 (1)(2)		575		548
Total Foreign Issuer Bonds
(Cost $7,899)				7,969
U.S. GOVERNMENT AGENCIES – 25.2% (3)
Fannie Mae – 19.3%
Pool #535714, 7.50%, 1/1/31		15		17
Pool #555599, 7.00%, 4/1/33		43		52
Pool #656035, 7.50%, 9/1/32		13		15
Pool #712130, 7.00%, 6/1/33		18		21
Pool #845182, 5.50%, 11/1/35		309		336
Pool #890009, 5.50%, 9/1/36		217		238
Pool #890384, 4.50%, 10/1/41		31		34
Pool #893082, 2.67%, 9/1/36		248		264
Pool #932638, 5.00%, 3/1/40		512		561
Pool #AA7583, 4.50%, 6/1/39		27		29
Pool #AB1470, 4.50%, 9/1/40		577		616
Pool #AB2693, 4.50%, 4/1/41		662		709
Pool #AB3114, 5.00%, 6/1/41		423		460
Pool #AC9581, 5.50%, 1/1/40		296		324
Pool #AD0915, 5.50%, 12/1/38		387		422
Pool #AD6929, 5.00%, 6/1/40		402		439

See Notes to the Financial Statements.

FIXED INCOME FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 25.2% (3) – continued
Fannie Mae – 19.3% – continued
Pool #AE6415, 4.00%, 10/1/40		$566		$597
Pool #AH1166, 4.50%, 12/1/40		902		966
Pool #AH1507, 4.50%, 12/1/40		387		416
Pool #AH9109, 4.50%, 4/1/41		36		38
Pool #AJ0799, 4.00%, 9/1/41		225		237
Pool #AJ1713, 4.00%, 9/1/41		264		277
Pool #AJ4048, 4.00%, 10/1/41		593		627
Pool #AJ4467, 4.00%, 11/1/41		250		263
Pool #AJ5836, 4.00%, 11/1/41		257		271
Pool #AJ7686, 4.00%, 12/1/41		306		321
Pool #AO6996, 3.50%, 6/1/42		472		481
Pool #AP2427, 3.50%, 8/1/42		536		546
Pool #AP4514, 3.50%, 9/1/42		384		391
Pool #AP4515, 3.50%, 9/1/42		513		523
Pool #AP6598, 3.50%, 9/1/42		454		463
Pool TBA, 3.00%, 10/13/43 (4)		3,700		3,614
3.50%, 10/13/43 (4)		425		433
4.00%, 10/13/43 (4)		995		1,044
4.50%, 10/13/43 (4)		400		427
5.00%, 10/13/43 (4)		500		542
				17,014
Freddie Mac – 0.9%
Pool #1B3575, 6.22%, 9/1/37		86		90
Pool #1G2296, 6.26%, 11/1/37		307		324
Pool #1J0365, 2.67%, 4/1/37		171		182

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 25.2% (3) – continued
Freddie Mac – 0.9% – continued
Pool #1J2840, 2.52%, 9/1/37		$225		$240
				836
Freddie Mac Gold – 3.8%
Pool #A65182, 6.50%, 9/1/37		712		791
Pool #C02790, 6.50%, 4/1/37		433		483
Pool #C02838, 5.50%, 5/1/37		345		375
Pool #C03517, 4.50%, 9/1/40		318		339
Pool #C03837, 3.50%, 4/1/42		1,081		1,099
Pool #G01954, 5.00%, 11/1/35		293		316
				3,403
Government National Mortgage Association – 0.8%
Series 2012-2, Class A, 1.86%, 6/16/31		367		369
Series 2013-45, Class A, 1.45%, 10/16/40		301		297
				666
Government National Mortgage Association I – 0.0%
Pool #604183, 5.50%, 4/15/33		13		14
Pool #633627, 5.50%, 9/15/34		17		19
				33
Government National Mortgage Association II – 0.4%
Pool #82581, 4.00%, 7/20/40		308		327
Total U.S. Government Agencies
(Cost $21,795)				22,279
U.S. GOVERNMENT OBLIGATIONS – 15.7%
U.S. Treasury Bonds – 2.9%
2.88%, 5/15/43		3,020		2,563
U.S. Treasury Inflation Indexed Bonds – 0.5%
0.63%, 2/15/43		540		450
U.S. Treasury Inflation Indexed Notes – 4.0%
0.13%, 4/15/18		2,120		2,207

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 15.7% – continued
U.S. Treasury Inflation Indexed Notes – 4.0% – continued
0.38%, 7/15/23		$1,330		$1,328
				3,535
U.S. Treasury Notes – 8.3%
0.25%, 9/30/15		400		400
0.88%, 9/15/16		725		730
1.38%, 9/30/18		2,305		2,303
2.00%, 9/30/20		3,545		3,542
2.50%, 8/15/23		320		317
				7,292
Total U.S. Government Obligations
(Cost $13,733)				13,840

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 8.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (5)(6)		7,775,457		$7,775
Total Investment Companies
(Cost $7,775)				7,775

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 2.3%
U.S. Treasury Bill, 0.06%, 11/29/13		$2,000		$2,000
Total Short-Term Investments
(Cost $2,000)				2,000
Total Investments – 105.1%
(Cost $91,938)				92,845
Liabilities less Other Assets – (5.1)%				(4,483	)
NET ASSETS – 100.0%				$88,362

(1) Restricted security that has been deemed illiquid. At September 30, 2013, the value of these restricted illiquid securities amounted to approximately $4,628,000 or 5.2% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Anglo American Capital PLC, 2.63%, 9/27/17	9/20/12		$100
Daimler Finance North America LLC, 1.45%, 8/1/16	7/24/13		100
ERAC USA Finance LLC, 7.00%, 10/15/37	10/10/07		218
FMR LLC, 6.45%, 11/15/39	1/6/10-4/30/10		411
Freeport-McMoRan Copper & Gold, Inc., 3.88%, 3/15/23	2/28/13		105
Freeport-McMoRan Copper & Gold, Inc., 5.45%, 3/15/43	2/28/13		105
Heineken N.V., 1.40%, 10/1/17	10/2/12		75
Hyundai Capital America, 4.00%, 6/8/17	12/1/11		90
ING Bank N.V., 5.80%, 9/25/23	9/16/13		129
Jersey Central Power & Light Co., 4.70%, 4/1/24	8/14/13		129
Kansas City Southern de Mexico S.A. de C.V., 2.35%, 5/15/20	4/24/13-6/7/13		565
KKR Group Finance Co. LLC, 6.38%, 9/29/20	4/15/13		216
Liberty Mutual Group, Inc., 5.00%, 6/1/21	4/12/13		133
Lloyds TSB Bank PLC, 6.50%, 9/14/20	9/7/10		313
Lukoil International Finance B.V., 3.42%, 4/24/18	4/17/13		105
Macquarie Group Ltd., 7.30%, 8/1/14	12/14/10-12/15/10		180
Nissan Motor Acceptance Corp., 4.50%, 1/30/15	1/20/10		119
Pernod-Ricard S.A., 2.95%, 1/15/17	1/5/12-4/12/13		431
Pernod-Ricard S.A., 4.45%, 1/15/22	10/20/11		110
PPL WEM Holdings PLC, 3.90%, 5/1/16	4/18/11		225
SABMiller PLC, 6.50%, 7/1/16	10/28/10		126
Samsung Electronics America, Inc., 1.75%, 4/10/17	4/2/12		159
Seagate HDD Cayman, 4.75%, 6/1/23	9/26/13-9/27/13		369

See Notes to the Financial Statements.

FIXED INCOME FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $801,000 with net purchases of approximately $6,974,000 during the six months ended September 30, 2013.

Percentages shown are based on Net Assets.

At September 30, 2013, the credit quality distribution for the Core Bond Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
U.S. Treasury		18.2%
U.S. Agency		22.9
AAA		7.0
AA		4.1
A		10.4
BBB		28.4
BB		0.6
Cash Equivalents		8.4
Total		100.0%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in 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 – 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Asset-Backed Securities		$–		$8,422	(1)		$–		$8,422
Corporate Bonds		–		30,560	(1)		–		30,560
Foreign Issuer Bonds		–		7,969	(1)		–		7,969
U.S. Government Agencies		–		22,279	(1)		–		22,279
U.S. Government Obligations		–		13,840	(1)		–		13,840
Investment Companies		7,775		–			–		7,775
Short-Term Investments		–		2,000			–		2,000
Total Investments		$7,775		$85,070			$–		$92,845

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 10.0%
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		5,399
				5,479
Commercial Mortgage-Backed Securities – 9.7%
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.41%, 9/10/47		8,692		9,528
Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A2, 4.74%, 9/11/42		185		185
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class A4, 5.54%, 10/12/41		11,120		12,246
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW16, Class A4, 5.90%, 6/11/40		4,145		4,679
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class A4, 5.74%, 9/11/42		10,290		11,674
Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.88%, 12/10/49		7,861		8,890
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, 5.62%, 10/15/48		13,805		15,141
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP1, Class A2, 4.63%, 3/15/46		884		885
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.55%, 5/12/45		9,745		10,685
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A4, 5.40%, 5/15/45		3,595		3,934
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.44%, 6/12/47		7,110		7,855

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 10.0% – continued
Commercial Mortgage-Backed Securities – 9.7% – continued
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2, 6.32%, 4/15/41		$6,890		$7,966
Morgan Stanley Capital I Trust, Series 2006-HQ9, Class A4, 5.73%, 7/12/44		12,273		13,472
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A4, 5.33%, 12/15/43		13,985		15,324
Morgan Stanley Capital I Trust, Series 2007-IQ16, Class A4, 5.81%, 12/12/49		6,000		6,754
Morgan Stanley Capital I Trust, Series 2007-T27, Class A4, 5.82%, 6/11/42		7,475		8,445
Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.46%, 1/11/43		7,180		8,348
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.31%, 11/15/48		13,904		15,297
				161,308
Total Asset-Backed Securities
(Cost $168,518)				166,787
CORPORATE BONDS – 44.6%
Aerospace/Defense – 0.4%
B/E Aerospace, Inc., 5.25%, 4/1/22		4,000		3,970
Northrop Grumman Corp., 1.75%, 6/1/18		2,120		2,081
				6,051
Agriculture – 1.3%
Altria Group, Inc., 10.20%, 2/6/39		3,530		5,383
Bunge Ltd. Finance Corp., 4.10%, 3/15/16		3,071		3,243
8.50%, 6/15/19		1,975		2,459
Lorillard Tobacco Co., 8.13%, 6/23/19		6,945		8,421
Reynolds American, Inc., 6.15%, 9/15/43		2,295		2,401
				21,907

See Notes to the Financial Statements.

FIXED INCOME FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Auto Manufacturers – 0.5%
Daimler Finance North America LLC, 1.45%, 8/1/16 (1)(2)		$1,935		$1,941
Ford Motor Co., 7.45%, 7/16/31		2,005		2,447
General Motors Co., 6.25%, 10/2/43 (1)(2)		1,910		1,881
Nissan Motor Acceptance Corp., 4.50%, 1/30/15 (1)(2)		2,730		2,855
				9,124
Auto Parts & Equipment – 0.7%
BorgWarner, Inc., 4.63%, 9/15/20		3,350		3,539
Continental Rubber of America Corp., 4.50%, 9/15/19 (2)		2,200		2,306
Dana Holding Corp., 6.75%, 2/15/21		3,000		3,187
Delphi Corp., 5.88%, 5/15/19		2,390		2,536
				11,568
Banks – 6.4%
Ally Financial, Inc., 3.13%, 1/15/16		1,405		1,410
Bank of America Corp., 3.75%, 7/12/16		4,095		4,339
3.88%, 3/22/17		2,460		2,616
6.00%, 9/1/17		3,255		3,686
5.70%, 1/24/22		3,055		3,413
4.10%, 7/24/23		2,030		2,017
5.20%, 12/29/49		1,715		1,501
Branch Banking & Trust Co., 1.45%, 10/3/16		1,835		1,846
Capital One N.A., 1.50%, 3/22/18		2,625		2,548
Citigroup, Inc., 2.65%, 3/2/15		2,520		2,577
1.25%, 1/15/16		2,760		2,758
1.70%, 7/25/16		1,535		1,542
6.00%, 8/15/17		2,975		3,400
3.50%, 5/15/23		3,250		2,933
6.68%, 9/13/43		2,225		2,396
5.95%, 12/29/49		4,300		4,010
Discover Bank, 2.00%, 2/21/18		2,830		2,767

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Banks – 6.4% – continued
Goldman Sachs Group (The), Inc., 3.63%, 2/7/16		$2,455		$2,584
5.63%, 1/15/17		2,945		3,244
2.38%, 1/22/18		2,625		2,606
2.90%, 7/19/18		2,835		2,858
5.75%, 1/24/22		3,315		3,675
6.75%, 10/1/37		2,845		2,969
6.25%, 2/1/41		1,930		2,162
HSBC USA, Inc., 2.38%, 2/13/15		1,800		1,840
1.63%, 1/16/18		1,955		1,916
JPMorgan Chase & Co., 6.30%, 4/23/19		2,625		3,076
7.90%, 4/29/49		2,830		3,071
5.15%, 12/29/49		3,200		2,800
JPMorgan Chase Bank N.A., 6.00%, 10/1/17		190		217
Morgan Stanley, 4.00%, 7/24/15		3,110		3,244
3.45%, 11/2/15		2,580		2,674
4.75%, 3/22/17		2,935		3,169
7.30%, 5/13/19		3,305		3,955
5.75%, 1/25/21		2,485		2,759
4.10%, 5/22/23		4,040		3,768
6.38%, 7/24/42		2,396		2,711
PNC Financial Services Group (The), Inc., 4.85%, 5/29/49		1,925		1,656
Wells Fargo & Co., 7.98%, 3/29/49		2,820		3,102
				105,815
Beverages – 0.3%
Constellation Brands, Inc., 6.00%, 5/1/22		3,665		3,903
SABMiller Holdings, Inc., 1.85%, 1/15/15 (2)		950		962
				4,865
Biotechnology – 0.2%
Celgene Corp., 1.90%, 8/15/17		130		130
2.30%, 8/15/18		655		655
5.25%, 8/15/43		2,130		2,110
				2,895

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Chemicals – 1.1%
Airgas, Inc., 1.65%, 2/15/18		$3,215		$3,126
Ashland, Inc., 3.00%, 3/15/16		2,100		2,126
CF Industries, Inc., 6.88%, 5/1/18		4,435		5,211
Huntsman International LLC, 4.88%, 11/15/20		3,960		3,752
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., 6.50%, 4/15/21 (1)(2)		1,630		1,597
Tronox Finance LLC, 6.38%, 8/15/20		1,935		1,916
				17,728
Commercial Services – 1.7%
ADT (The) Corp., 6.25%, 10/15/21 (1)(2)		1,575		1,599
ERAC USA Finance LLC, 7.00%, 10/15/37 (1)(2)		4,605		5,456
Hertz (The) Corp., 7.50%, 10/15/18		5,450		5,872
5.88%, 10/15/20		2,635		2,714
Iron Mountain, Inc., 6.00%, 8/15/23		3,015		2,992
Service Corp. International, 4.50%, 11/15/20		1,186		1,127
5.38%, 1/15/22 (2)		1,600		1,526
United Rentals North America, Inc., 5.75%, 7/15/18		5,150		5,408
7.63%, 4/15/22		2,025		2,202
				28,896
Computers – 0.5%
Hewlett-Packard Co., 2.60%, 9/15/17		2,805		2,832
NetApp, Inc., 2.00%, 12/15/17		5,675		5,587
				8,419
Diversified Financial Services – 3.8%
American Express Credit Corp., 2.80%, 9/19/16		2,527		2,644
Capital One Bank USA N.A., 8.80%, 7/15/19		100		128

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Diversified Financial Services – 3.8% – continued
Countrywide Financial Corp., 6.25%, 5/15/16		$4,035		$4,462
FMR LLC, 6.45%, 11/15/39 (1)(2)		8,300		9,497
Ford Motor Credit Co. LLC, 7.00%, 4/15/15		1,515		1,644
4.25%, 2/3/17		1,895		2,025
4.38%, 8/6/23		570		570
Franklin Resources, Inc., 3.13%, 5/20/15		50		52
General Electric Capital Corp., 3.35%, 10/17/16		2,715		2,877
5.63%, 5/1/18		5,290		6,070
6.25%, 12/29/49		3,000		3,030
General Motors Financial Co., Inc., 4.75%, 8/15/17 (1)(2)		4,455		4,611
Hyundai Capital America, 4.00%, 6/8/17 (1)(2)		1,910		2,020
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 7.75%, 1/15/16		6,870		7,093
6.00%, 8/1/20 (1)(2)		1,560		1,560
International Lease Finance Corp., 6.25%, 5/15/19		5,395		5,665
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (1)(2)		3,655		4,152
SLM Corp., 3.88%, 9/10/15		1,095		1,117
6.00%, 1/25/17		3,295		3,492
				62,709
Electric – 2.2%
CMS Energy Corp., 6.55%, 7/17/17		1,900		2,193
5.05%, 2/15/18		4,175		4,624
8.75%, 6/15/19		3,200		4,111
Exelon Corp., 5.63%, 6/15/35		3,525		3,535
Exelon Generation Co. LLC, 6.20%, 10/1/17		2,345		2,688
IPALCO Enterprises, Inc., 5.00%, 5/1/18		3,675		3,813
Jersey Central Power & Light Co., 4.70%, 4/1/24 (1)(2)		2,445		2,475

See Notes to the Financial Statements.

FIXED INCOME FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Electric – 2.2% – continued
PPL Capital Funding, Inc., 3.50%, 12/1/22		$1,855		$1,755
Progress Energy, Inc., 4.88%, 12/1/19		1,970		2,186
7.75%, 3/1/31		3,730		4,784
Puget Energy, Inc., 5.63%, 7/15/22		4,300		4,562
				36,726
Electronics – 0.4%
Agilent Technologies, Inc., 6.50%, 11/1/17		3,405		3,982
Thermo Fisher Scientific, Inc., 3.20%, 3/1/16		2,905		3,026
				7,008
Entertainment – 0.2%
International Game Technology, 5.35%, 10/15/23		3,350		3,422
Environmental Control – 0.3%
Clean Harbors, Inc., 5.25%, 8/1/20		1,770		1,752
5.13%, 6/1/21		3,850		3,720
				5,472
Food – 0.3%
Smithfield Foods, Inc., 6.63%, 8/15/22		3,020		3,114
Unilever Capital Corp., 2.20%, 3/6/19		1,780		1,793
				4,907
Gas – 0.2%
CenterPoint Energy, Inc., 6.50%, 5/1/18		2,380		2,807
Healthcare - Products – 0.5%
Baxter International, Inc., 5.38%, 6/1/18		2,860		3,289
CR Bard, Inc., 1.38%, 1/15/18		1,250		1,211
Life Technologies Corp., 5.00%, 1/15/21		3,820		4,037
				8,537
Healthcare - Services – 1.5%
Aetna, Inc., 6.00%, 6/15/16		1,875		2,110

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Healthcare - Services – 1.5% – continued
Cigna Corp., 2.75%, 11/15/16		$315		$327
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22		4,895		4,840
Fresenius Medical Care US Finance II, Inc., 5.88%, 1/31/22 (2)		4,875		4,997
HCA, Inc., 6.50%, 2/15/20		3,435		3,723
Humana, Inc., 3.15%, 12/1/22		2,505		2,331
4.63%, 12/1/42		590		525
Ventas Realty L.P., 5.70%, 9/30/43		1,495		1,512
WellPoint, Inc., 1.88%, 1/15/18		1,985		1,968
3.13%, 5/15/22		2,510		2,383
				24,716
Home Builders – 0.3%
Lennar Corp., 4.13%, 12/1/18		4,750		4,536
Household Products/Wares – 0.3%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, 5.75%, 10/15/20		4,760		4,778
Insurance – 2.2%
Aflac, Inc., 2.65%, 2/15/17		1,810		1,876
American International Group, Inc., 2.38%, 8/24/15		1,560		1,594
3.80%, 3/22/17		3,070		3,265
4.13%, 2/15/24		3,425		3,427
8.18%, 5/15/58		3,350		3,921
ING US, Inc., 5.65%, 5/15/53		1,610		1,472
Liberty Mutual Group, Inc., 5.00%, 6/1/21 (1)(2)		2,390		2,535
Principal Financial Group, Inc., 1.85%, 11/15/17		1,300		1,289
Protective Life Corp., 7.38%, 10/15/19		85		103
8.45%, 10/15/39		7,990		10,062
Prudential Financial, Inc., 5.88%, 9/15/42		2,610		2,558

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Insurance – 2.2% – continued
5.63%, 6/15/43		$3,915		$3,687
				35,789
Internet – 0.8%
Amazon.com, Inc., 1.20%, 11/29/17		1,300		1,270
Equinix, Inc., 4.88%, 4/1/20		3,000		2,910
InterActiveCorp, 4.75%, 12/15/22		2,850		2,622
Symantec Corp., 2.75%, 6/15/17		2,505		2,545
4.20%, 9/15/20		1,930		1,987
VeriSign, Inc., 4.63%, 5/1/23 (2)		1,875		1,762
				13,096
Investment Companies – 0.1%
Prospect Capital Corp., 5.88%, 3/15/23		1,720		1,660
Iron/Steel – 0.4%
Commercial Metals Co., 7.35%, 8/15/18		2,745		2,978
Nucor Corp., 4.00%, 8/1/23		1,990		1,948
Steel Dynamics, Inc., 6.13%, 8/15/19		1,780		1,856
				6,782
Machinery - Diversified – 0.3%
CNH Capital LLC, 3.63%, 4/15/18		2,350		2,338
Roper Industries, Inc., 6.25%, 9/1/19		2,250		2,615
				4,953
Media – 3.5%
CBS Corp., 1.95%, 7/1/17		1,560		1,569
CCO Holdings LLC/CCO Holdings Capital Corp., 5.25%, 3/15/21  (1)(2)		3,815		3,662
5.13%, 2/15/23		4,355		3,996
Cequel Communications Holdings I LLC/Cequel Capital Corp., 6.38%, 9/15/20 (2)		2,850		2,907

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Media – 3.5% – continued
Comcast Corp., 4.95%, 6/15/16		$1,239		$1,368
6.30%, 11/15/17		2,820		3,323
4.25%, 1/15/33		3,405		3,211
6.40%, 5/15/38		4,805		5,696
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 2.40%, 3/15/17		2,780		2,793
5.20%, 3/15/20		3,085		3,262
5.15%, 3/15/42		3,590		3,054
McClatchy (The) Co., 9.00%, 12/15/22		3,050		3,218
Midcontinent Communications & Midcontinent Finance Corp., 6.25%, 8/1/21 (2)		2,675		2,688
News America, Inc., 7.25%, 5/18/18		2,365		2,890
6.90%, 8/15/39		2,744		3,190
Starz LLC/Starz Finance Corp., 5.00%, 9/15/19		3,110		3,079
Time Warner Cable, Inc., 5.50%, 9/1/41		2,610		2,140
Time Warner, Inc., 6.10%, 7/15/40		2,415		2,591
Univision Communications, Inc., 6.88%, 5/15/19 (1)(2)		3,005		3,215
				57,852
Mining – 0.5%
Freeport-McMoRan Copper & Gold, Inc., 1.40%, 2/13/15		2,445		2,451
3.88%, 3/15/23 (1)(2)		2,400		2,213
5.45%, 3/15/43 (1)(2)		2,400		2,151
Newmont Mining Corp., 3.50%, 3/15/22		2,465		2,156
				8,971
Miscellaneous Manufacturing – 0.2%
General Electric Co., 5.25%, 12/6/17		2,690		3,062
Office/Business Equipment – 0.3%
Xerox Corp., 2.95%, 3/15/17		1,830		1,877
4.50%, 5/15/21		2,450		2,546
				4,423

See Notes to the Financial Statements.

FIXED INCOME FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Oil & Gas – 3.8%
Anadarko Petroleum Corp., 6.38%, 9/15/17		$3,970		$4,615
Atwood Oceanics, Inc., 6.50%, 2/1/20		1,665		1,744
Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc., 6.63%, 11/15/19		4,000		4,070
Continental Resources, Inc., 5.00%, 9/15/22		3,875		3,899
Denbury Resources, Inc., 4.63%, 7/15/23		1,920		1,757
EQT Corp., 4.88%, 11/15/21		3,690		3,809
Linn Energy LLC/Linn Energy Finance Corp., 6.75%, 11/1/19  (1)(2)		6,340		5,975
Newfield Exploration Co., 7.13%, 5/15/18		3,050		3,172
6.88%, 2/1/20		3,260		3,423
5.75%, 1/30/22		3,360		3,352
Plains Exploration & Production Co., 6.13%, 6/15/19		2,475		2,653
6.75%, 2/1/22		1,835		1,964
QEP Resources, Inc., 6.88%, 3/1/21		5,000		5,313
Range Resources Corp., 5.75%, 6/1/21		3,615		3,796
Rosetta Resources, Inc., 5.63%, 5/1/21		1,430		1,358
Rowan Cos., Inc., 4.88%, 6/1/22		3,560		3,673
Tesoro Corp., 4.25%, 10/1/17		750		769
5.38%, 10/1/22		850		812
Western Refining, Inc., 6.25%, 4/1/21		3,250		3,185
WPX Energy, Inc., 6.00%, 1/15/22		3,250		3,295
				62,634
Oil & Gas Services – 0.2%
Exterran Partners L.P./EXLP Finance Corp., 6.00%, 4/1/21 (2)		3,810		3,696

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Packaging & Containers – 0.8%
Ball Corp., 5.75%, 5/15/21		$1,035		$1,092
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23  (1)(2)		5,750		5,261
Graphic Packaging International, Inc., 4.75%, 4/15/21		4,015		3,895
Plastipak Holdings, Inc., 6.50%, 10/1/21 (1)(2)(3)		1,500		1,515
Rock Tenn Co., 3.50%, 3/1/20		1,935		1,913
				13,676
Pharmaceuticals – 0.7%
Cardinal Health, Inc., 1.90%, 6/15/17		60		60
1.70%, 3/15/18		1,140		1,114
3.20%, 3/15/23		4,090		3,814
Express Scripts Holding Co., 3.13%, 5/15/16		2,005		2,099
Medco Health Solutions, Inc., 2.75%, 9/15/15		1,980		2,046
Mylan, Inc., 1.80%, 6/24/16 (2)		1,125		1,130
Teva Pharmaceutical Finance IV LLC, 2.25%, 3/18/20		1,760		1,669
				11,932
Pipelines – 1.7%
Access Midstream Partners L.P./ACMP Finance Corp., 6.13%, 7/15/22		4,000		4,110
Energy Transfer Partners L.P., 4.15%, 10/1/20		1,000		1,028
5.20%, 2/1/22		70		73
3.60%, 2/1/23		1,970		1,835
6.50%, 2/1/42		3,140		3,315
Enterprise Products Operating LLC, 6.45%, 9/1/40		1,985		2,278
Kinder Morgan Energy Partners L.P., 5.95%, 2/15/18		3,950		4,523
Kinder Morgan Finance Co. LLC, 6.00%, 1/15/18 (1)(2)		4,695		5,092

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Pipelines – 1.7% – continued
Regency Energy Partners L.P./Regency Energy Finance Corp., 6.50%, 7/15/21		$5,150		$5,407
				27,661
Real Estate Investment Trusts – 2.6%
American Tower Corp., 3.50%, 1/31/23		3,200		2,809
Boston Properties L.P., 4.13%, 5/15/21		2,270		2,335
DDR Corp., 4.63%, 7/15/22		2,640		2,688
DuPont Fabros Technology L.P., 5.88%, 9/15/21 (2)		2,325		2,325
EPR Properties, 5.75%, 8/15/22		3,905		3,940
5.25%, 7/15/23		2,655		2,578
ERP Operating L.P., 4.63%, 12/15/21		3,295		3,478
HCP, Inc., 5.63%, 5/1/17		2,705		3,022
3.75%, 2/1/19		1,225		1,269
2.63%, 2/1/20		3,245		3,079
Host Hotels & Resorts L.P., 5.88%, 6/15/19		475		513
4.75%, 3/1/23		3,000		3,014
Kimco Realty Corp., 5.70%, 5/1/17		2,280		2,560
Realty Income Corp., 2.00%, 1/31/18		2,605		2,547
UDR, Inc., 3.70%, 10/1/20		1,000		1,005
Ventas Realty L.P./Ventas Capital Corp., 4.00%, 4/30/19		1,910		2,003
4.75%, 6/1/21		3,540		3,728
				42,893
Retail – 0.4%
CVS Caremark Corp., 5.75%, 5/15/41		2,330		2,556
Macy’s Retail Holdings, Inc., 4.38%, 9/1/23		1,320		1,331
Sally Holdings LLC/Sally Capital, Inc., 5.75%, 6/1/22		2,640		2,647
				6,534

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 44.6% – continued
Semiconductors – 0.2%
Samsung Electronics America, Inc., 1.75%, 4/10/17 (1)(2)		$3,265		$3,258
Software – 0.4%
Activision Blizzard, Inc., 5.63%, 9/15/21 (1)(2)		2,325		2,328
CA, Inc., 2.88%, 8/15/18		1,325		1,337
Fidelity National Information Services, Inc., 3.50%, 4/15/23		1,985		1,785
Oracle Corp., 1.20%, 10/15/17		2,140		2,102
				7,552
Telecommunications – 2.3%
AT&T, Inc., 1.40%, 12/1/17		3,435		3,353
CC Holdings GS V LLC/Crown Castle GS III Corp., 2.38%, 12/15/17		1,575		1,553
CenturyLink, Inc., 5.80%, 3/15/22		3,475		3,266
Crown Castle International Corp., 5.25%, 1/15/23		1,350		1,242
Frontier Communications Corp., 8.25%, 4/15/17		5,845		6,634
7.63%, 4/15/24		3,440		3,440
Qwest Communications International, Inc., 7.13%, 4/1/18		6,509		6,753
SBA Communications Corp., 5.63%, 10/1/19		2,300		2,260
tw telecom holdings, Inc., 6.38%, 9/1/23 (2)		3,640		3,622
Verizon Communications, Inc., 3.50%, 11/1/21		2,730		2,685
6.40%, 9/15/33		2,240		2,488
Windstream Corp., 6.38%, 8/1/23		1,900		1,738
				39,034
Transportation – 0.1%
CSX Corp., 4.75%, 5/30/42		2,465		2,353
Total Corporate Bonds
(Cost $735,934)				740,697

See Notes to the Financial Statements.

FIXED INCOME FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.6%
Auto Parts & Equipment – 0.1%
Schaeffler Holding Finance B.V., 6.88%, 8/15/18 (2)(4)		$1,700		$1,781
Banks – 0.5%
ING Bank N.V., 2.00%, 10/18/13 (1)(2)		1,080		1,081
5.80%, 9/25/23 (1)(2)		2,510		2,535
Lloyds Bank PLC, 6.50%, 9/14/20 (1)(2)		4,240		4,680
				8,296
Beverages – 0.4%
Heineken N.V., 1.40%, 10/1/17 (1)(2)		1,590		1,563
Pernod-Ricard S.A., 4.45%, 1/15/22		2,890		2,967
SABMiller PLC, 6.50%, 7/1/16 (1)(2)		2,125		2,418
				6,948
Chemicals – 0.4%
Agrium, Inc., 4.90%, 6/1/43		2,225		2,018
INEOS Group Holdings S.A., 6.13%, 8/15/18 (1)(2)		1,075		1,051
LyondellBasell Industries N.V., 5.00%, 4/15/19		3,780		4,161
				7,230
Computers – 0.5%
Seagate HDD Cayman, 6.88%, 5/1/20		4,000		4,380
4.75%, 6/1/23 (1)(2)		3,375		3,248
				7,628
Diversified Financial Services – 0.2%
Macquarie Group Ltd., 7.30%, 8/1/14 (1)(2)		3,570		3,749
Electric – 0.2%
PPL WEM Holdings PLC, 3.90%, 5/1/16 (1)(2)		3,475		3,642
Food – 0.1%
ESAL GmbH, 6.25%, 2/5/23 (2)		1,800		1,588

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.6% – continued
Holding Companies - Diversified – 0.2%
Nielsen Co. Luxembourg SARL (The), 5.50%, 10/1/21 (1)(2)		$3,650		$3,655
Insurance – 1.2%
Allied World Assurance Co. Ltd., 7.50%, 8/1/16		6,700		7,784
5.50%, 11/15/20		2,070		2,254
XL Group PLC, 6.50%, 12/29/49		10,075		9,647
				19,685
Internet – 0.1%
Baidu, Inc., 3.25%, 8/6/18		2,145		2,144
Leisure Time – 0.4%
Royal Caribbean Cruises Ltd., 6.88%, 12/1/13		7,220		7,265
Mining – 0.4%
Anglo American Capital PLC, 2.63%, 9/27/17 (1)(2)		2,160		2,121
Rio Tinto Finance USA PLC, 1.63%, 8/21/17		2,865		2,823
Vedanta Resources PLC, 6.00%, 1/31/19 (1)(2)		2,000		1,900
				6,844
Miscellaneous Manufacturing – 0.6%
Bombardier, Inc., 5.75%, 3/15/22 (2)		4,685		4,650
Pentair Finance S.A., 1.88%, 9/15/17		2,075		2,039
Tyco Electronics Group S.A., 6.55%, 10/1/17		2,560		2,952
				9,641
Oil & Gas – 1.4%
BP Capital Markets PLC, 1.38%, 5/10/18		1,635		1,586
CNOOC Finance 2013 Ltd., 3.00%, 5/9/23		1,985		1,784
Ensco PLC, 3.25%, 3/15/16		2,815		2,938
Lukoil International Finance B.V., 3.42%, 4/24/18 (1)(2)		2,165		2,152
Petrobras Global Finance B.V., 3.00%, 1/15/19		1,990		1,871

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.6% – continued
Oil & Gas – 1.4% – continued
Petrobras International Finance Co., 3.88%, 1/27/16		$1,250		$1,290
3.50%, 2/6/17		3,030		3,077
Petro-Canada, 6.05%, 5/15/18		960		1,119
Petroleos Mexicanos, 5.50%, 1/21/21		2,910		3,114
Transocean, Inc., 2.50%, 10/15/17		4,410		4,422
				23,353
Oil & Gas Services – 0.5%
Weatherford International Ltd., 5.13%, 9/15/20		4,600		4,796
5.95%, 4/15/42		3,560		3,408
				8,204
Retail – 0.2%
Arcos Dorados Holdings, Inc., 6.63%, 9/27/23 (1)(2)		3,340		3,265
Telecommunications – 1.0%
Intelsat Jackson Holdings S.A., 7.25%, 10/15/20		7,720		8,241
Softbank Corp., 4.50%, 4/15/20 (2)		4,275		4,108
Virgin Media Secured Finance PLC, 5.38%, 4/15/21 (1)(2)		3,375		3,291
				15,640
Transportation – 0.2%
Kansas City Southern de Mexico S.A.de C.V., 2.35%, 5/15/20 (1)(2)		2,790		2,660
Total Foreign Issuer Bonds
(Cost $141,533)				143,218
U.S. GOVERNMENT AGENCIES – 25.6% (5)
Fannie Mae – 21.8%
Pool #255498, 5.50%, 12/1/34		553		603
Pool #256883, 6.00%, 9/1/37		69		75
Pool #535714, 7.50%, 1/1/31		53		61
Pool #545003, 8.00%, 5/1/31		3		3

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 25.6% (5) – continued
Fannie Mae – 21.8% – continued
Pool #545437, 7.00%, 2/1/32		$119		$138
Pool #545556, 7.00%, 4/1/32		78		90
Pool #555189, 7.00%, 12/1/32		499		579
Pool #581806, 7.00%, 7/1/31		210		248
Pool #585617, 7.00%, 5/1/31		–		–
Pool #745148, 5.00%, 1/1/36		368		398
Pool #845182, 5.50%, 11/1/35		2,551		2,775
Pool #888538, 5.50%, 1/1/37		943		1,027
Pool #890009, 5.50%, 9/1/36		3,508		3,832
Pool #890384, 4.50%, 10/1/41		680		731
Pool #893082, 2.67%, 9/1/36		2,744		2,926
Pool #919638, 5.50%, 9/1/37		2,427		2,640
Pool #929035, 6.50%, 1/1/38		1,588		1,755
Pool #932638, 5.00%, 3/1/40		9,686		10,599
Pool #955782, 6.50%, 10/1/37		387		427
Pool #990702, 6.50%, 9/1/38		3,253		3,612
Pool #AA7583, 4.50%, 6/1/39		3,871		4,160
Pool #AB1470, 4.50%, 9/1/40		4,264		4,557
Pool #AB2693, 4.50%, 4/1/41		8,906		9,536
Pool #AB3114, 5.00%, 6/1/41		5,461		5,950
Pool #AC6767, 4.50%, 1/1/40		2,978		3,202
Pool #AC9581, 5.50%, 1/1/40		7,457		8,147

See Notes to the Financial Statements.

FIXED INCOME FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 25.6% (5) – continued
Fannie Mae – 21.8% – continued
Pool #AD0915, 5.50%, 12/1/38		$365		$398
Pool #AD1645, 5.00%, 3/1/40		10,258		11,210
Pool #AD6929, 5.00%, 6/1/40		5,011		5,479
Pool #AE6415, 4.00%, 10/1/40		6,058		6,390
Pool #AH1166, 4.50%, 12/1/40		10,296		11,024
Pool #AH1507, 4.50%, 12/1/40		10,151		10,914
Pool #AH9109, 4.50%, 4/1/41		647		696
Pool #AI4294, 4.50%, 6/1/41		3,584		3,833
Pool #AJ0799, 4.00%, 9/1/41		710		746
Pool #AJ1713, 4.00%, 9/1/41		746		784
Pool #AJ4048, 4.00%, 10/1/41		7,698		8,130
Pool #AJ4467, 4.00%, 11/1/41		695		731
Pool #AJ5836, 4.00%, 11/1/41		961		1,011
Pool #AJ7686, 4.00%, 12/1/41		1,450		1,525
Pool #AO6996, 3.50%, 6/1/42		9,293		9,473
Pool #AP2427, 3.50%, 8/1/42		9,920		10,113
Pool #AP4514, 3.50%, 9/1/42		8,327		8,485
Pool #AP4515, 3.50%, 9/1/42		10,254		10,453
Pool #AP6598, 3.50%, 9/1/42		9,303		9,486
Pool TBA, 3.00%, 10/13/43 (3)		78,875		77,051
3.50%, 10/13/43 (3)		11,985		12,200
4.00%, 10/13/43 (3)		56,855		59,636

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 25.6% (5) – continued
Fannie Mae – 21.8% – continued
4.50%, 10/13/43 (3)		$19,375		$20,692
5.00%, 10/13/43 (3)		11,850		12,850
				361,381
Freddie Mac – 0.6%
Pool #1B3575, 6.22%, 9/1/37		686		722
Pool #1G2296, 6.26%, 11/1/37		2,894		3,056
Pool #1J0365, 2.67%, 4/1/37		1,726		1,839
Pool #1J2840, 2.52%, 9/1/37		1,662		1,767
Pool #848076, 5.55%, 6/1/38		1,883		2,022
Series 3730, Class PL, 4.50%, 1/15/33		233		235
				9,641
Freddie Mac Gold – 2.5%
Pool #A65182, 6.50%, 9/1/37		4,974		5,531
Pool #A92650, 5.50%, 6/1/40		435		481
Pool #C00910, 7.50%, 1/1/30		462		541
Pool #C02790, 6.50%, 4/1/37		2,998		3,343
Pool #C02838, 5.50%, 5/1/37		3,830		4,151
Pool #C03517, 4.50%, 9/1/40		4,548		4,843
Pool #C03837, 3.50%, 4/1/42		19,628		19,943
Pool #G01954, 5.00%, 11/1/35		2,515		2,717
				41,550
Government National Mortgage Association – 0.4%
Series 2012-2, Class A, 1.86%, 6/16/31		6,409		6,443

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 25.6% (5) – continued
Government National Mortgage Association II – 0.3%
Pool #82581, 4.00%, 7/20/40		$4,995		$5,303
Total U.S. Government Agencies
(Cost $416,185)				424,318
U.S. GOVERNMENT OBLIGATIONS – 10.8%
U.S. Treasury Bonds – 3.2%
2.88%, 5/15/43		61,695		52,364
U.S. Treasury Inflation Indexed Bonds – 0.5%
0.63%, 2/15/43		10,230		8,521
U.S. Treasury Inflation Indexed Notes – 1.8%
0.13%, 4/15/18		14,610		15,209
0.38%, 7/15/23		14,805		14,784
				29,993
U.S. Treasury Notes – 5.3%
0.25%, 9/30/15		2,875		2,871
0.88%, 9/15/16		7,640		7,696
1.38%, 9/30/18		25,745		25,727
2.00%, 9/30/20		46,380		46,336
2.50%, 8/15/23		5,085		5,033
				87,663
Total U.S. Government Obligations
(Cost $176,398)				178,541
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 8.1%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (6)(7)		134,401,878		$134,402
Total Investment Companies
(Cost $134,402)				134,402
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.8%
U.S. Treasury Bill, 0.06%, 11/29/13 (8)		$13,600		$13,599
Total Short-Term Investments
(Cost $13,599)				13,599
Total Investments – 108.5%
(Cost $1,786,569)				1,801,562
Liabilities less Other Assets – (8.5)%				(140,979	)
NET ASSETS – 100.0%				$1,660,583

(1) Restricted security that has been deemed illiquid. At September 30, 2013, the value of these restricted illiquid securities amounted to approximately $119,861,000 or 7.2% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Activision Blizzard, Inc., 5.63%, 9/15/21	9/12/13		$2,325
ADT (The) Corp., 6.25%, 10/15/21	9/24/13		1,575
Anglo American Capital PLC, 2.63%, 9/27/17	9/20/12-9/21/12		2,159
Arcos Dorados Holdings, Inc., 6.63%, 9/27/23	9/24/13		3,370
CCO Holdings LLC/CCO Holdings Capital Corp., 5.25%, 3/15/21	2/28/13		3,815
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23	1/3/13-4/16/13		5,729
Daimler Finance North America LLC, 1.45%, 8/1/16	7/24/13		1,933
ERAC USA Finance LLC, 7.00%, 10/15/37	10/10/07-9/29/11		4,726
FMR LLC, 6.45%, 11/15/39	1/6/10-5/24/12		8,191
Freeport-McMoRan Copper & Gold, Inc., 3.88%, 3/15/23	2/28/13		2,399
Freeport-McMoRan Copper & Gold, Inc., 5.45%, 3/15/43	2/28/13		2,389
General Motors Co., 6.25%, 10/2/43	9/24/13		1,910
General Motors Financial Co., Inc., 4.75%, 8/15/17	8/13/12		4,455
Heineken N.V., 1.40%, 10/1/17	10/2/12		1,585

See Notes to the Financial Statements.

FIXED INCOME FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Hyundai Capital America, 4.00%, 6/8/17	12/1/11		$1,902
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 6.00%, 8/1/20	7/31/13		1,560
INEOS Group Holdings S.A., 6.13%, 8/15/18	5/2/13		1,075
ING Bank N.V., 2.00%, 10/18/13	10/13/10		1,078
ING Bank N.V., 5.80%, 9/25/23	9/16/13		2,499
Jersey Central Power & Light Co., 4.70%, 4/1/24	8/14/13		2,432
Kansas City Southern de Mexico S.A. de C.V., 2.35%, 5/15/20	4/24/13-6/7/13		2,782
Kinder Morgan Finance Co. LLC, 6.00%, 1/15/18	4/14/11-9/29/11		4,810
KKR Group Finance Co. LLC, 6.38%, 9/29/20	4/15/13		4,386
Liberty Mutual Group, Inc., 5.00%, 6/1/21	4/12/13		2,645
Linn Energy LLC/Linn Energy Finance Corp., 6.75%, 11/1/19	2/28/12		6,339
Lloyds Bank PLC, 6.50%, 9/14/20	9/7/10		4,215
Lukoil International Finance B.V., 3.42%, 4/24/18	4/17/13		2,165
Macquarie Group Ltd., 7.30%, 8/1/14	12/14/10-12/15/10		3,871
Nielsen Co. Luxembourg SARL (The), 5.50%, 10/1/21	9/20/13		3,650
Nissan Motor Acceptance Corp., 4.50%, 1/30/15	1/20/10-11/16/11		2,789
Plastipak Holdings, Inc., 6.50%, 10/1/21	9/25/13		1,500
PPL WEM Holdings PLC, 3.90%, 5/1/16	4/18/11		3,471
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., 6.50%, 4/15/21	4/9/13		1,630
SABMiller PLC, 6.50%, 7/1/16	10/28/10-9/29/11		2,518
Samsung Electronics America, Inc., 1.75%, 4/10/17	4/2/12		3,253

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Seagate HDD Cayman, 4.75%, 6/1/23	9/27/13		$3,274
Univision Communications, Inc., 6.88%, 5/15/19	3/14/13-5/16/13		3,249
Vedanta Resources PLC, 6.00%, 1/31/19	5/22/13		2,000
Virgin Media Secured Finance PLC, 5.38%, 4/15/21	2/7/13		3,375

(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) When-Issued Security.

(4) Security is payment in-kind bond.

(5) 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.

(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.

(7) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $87,305,000 with net purchases of approximately $47,097,000 during the six months ended September 30, 2013.

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

Percentages shown are based on Net Assets.

At September 30, 2013, 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

(770

)

$97,321

Short

12/13

$(1,891

)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the credit quality distribution for the Fixed Income Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
U.S. Treasury		11.3%
U.S. Agency		22.9
AAA		7.2
AA		2.8
A		7.9
BBB		22.6
BB		13.2
B		4.6
CCC		0.1
Cash Equivalents		7.4
Total		100.0%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s, and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in 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 – 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Asset-Backed Securities		$ –			$166,787	(1)		$–		$166,787
Corporate Bonds		–			740,697	(1)		–		740,697
Foreign Issuer Bonds		–			143,218	(1)		–		143,218
U.S. Government Agencies		–			424,318	(1)		–		424,318
U.S. Government Obligations		–			178,541	(1)		–		178,541
Investment Companies		134,402			–			–		134,402
Short-Term Investments		–			13,599			–		13,599
Total Investments		$134,402			$1,667,160			$–		$1,801,562
OTHER FINANCIAL INSTRUMENTS
Liabilities
Futures Contracts		$(1,891	)		$ –			$–		$(1,891	)

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4%
Aerospace/Defense – 0.6%
AAR Corp., 7.25%, 1/15/22 (1)		$32,800		$34,194
Agriculture – 0.5%
Alliance One International, Inc., 9.88%, 7/15/21 (1)		27,525		25,874
Airlines – 1.0%
United Continental Holdings, Inc., 6.38%, 6/1/18		23,575		23,987
US Airways Group, Inc., 6.13%, 6/1/18		28,225		27,061
				51,048
Auto Parts & Equipment – 2.9%
Affinia Group, Inc., 7.75%, 5/1/21 (1)		28,175		28,879
American Axle & Manufacturing, Inc., 6.25%, 3/15/21		10,850		11,176
6.63%, 10/15/22		8,309		8,517
Chassix, Inc., 9.25%, 8/1/18 (1)		26,734		28,271
Pittsburgh Glass Works LLC, 8.50%, 4/15/16 (1)		29,300		30,106
Titan International, Inc., 6.88%, 10/1/20 (1)(2)		28,675		28,890
UCI International, Inc., 8.63%, 2/15/19		18,348		18,715
				154,554
Chemicals – 0.5%
JM Huber Corp., 9.88%, 11/1/19 (1)		21,601		24,517
Coal – 0.6%
SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., 7.38%, 2/1/20 (1)		13,945		14,503
SunCoke Energy, Inc., 7.63%, 8/1/19		14,755		15,825
				30,328
Commercial Services – 4.9%
ADT (The) Corp., 6.25%, 10/15/21 (1)		23,775		24,132
Allegion US Holding Co., Inc., 5.75%, 10/1/21 (1)		5,000		5,000

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Commercial Services – 4.9% – continued
Alliance Data Systems Corp., 6.38%, 4/1/20 (1)		$29,366		$30,394
APX Group, Inc., 6.38%, 12/1/19 (1)		29,350		27,736
Brickman Group Holdings, Inc., 9.13%, 11/1/18 (1)		17,674		18,911
Iron Mountain, Inc., 6.00%, 8/15/23		24,275		24,093
Lender Processing Services, Inc., 5.75%, 4/15/23		28,744		29,498
Monitronics International, Inc., 9.13%, 4/1/20		22,780		23,862
Neff Rental LLC/Neff Finance Corp., 9.63%, 5/15/16 (1)		16,753		17,842
Rent-A-Center, Inc., 4.75%, 5/1/21 (1)		30,080		27,974
Service Corp. International, 5.38%, 1/15/22 (1)		25,700		24,511
7.50%, 4/1/27		8,679		9,200
				263,153
Computers – 0.5%
SunGard Data Systems, Inc., 6.63%, 11/1/19		25,500		26,010
Cosmetics/Personal Care – 1.0%
First Quality Finance Co., Inc., 4.63%, 5/15/21 (1)		29,325		26,613
Revlon Consumer Products Corp., 5.75%, 2/15/21 (1)		27,110		26,093
				52,706
Diversified Financial Services – 4.9%
Cash America International, Inc., 5.75%, 5/15/18 (1)		33,200		32,204
CNG Holdings, Inc., 9.38%, 5/15/20 (1)		23,250		21,506
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 6.00%, 8/1/20 (1)		19,350		19,350
Nationstar Mortgage LLC/Nationstar Capital Corp., 9.63%, 5/1/19		36,645		40,768
Oxford Finance LLC/Oxford Finance Co-Issuer, Inc., 7.25%, 1/15/18 (1)		27,475		28,093

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Diversified Financial Services – 4.9% – continued
PHH Corp., 7.38%, 9/1/19		$23,500		$24,675
6.38%, 8/15/21		13,725		13,279
Prospect Capital Corp., 5.88%, 3/15/23		32,575		31,437
Prospect Holding Co. LLC / Prospect Holding Finance Co., 10.25%, 10/1/18 (1)		18,200		17,700
Speedy Cash Intermediate Holdings Corp., 10.75%, 5/15/18 (1)		19,480		20,503
Speedy Group Holdings Corp., 12.00%, 11/15/17 (1)		13,481		14,020
				263,535
Electric – 1.5%
AES Corp., 7.38%, 7/1/21		26,706		29,377
Calpine Corp., 7.88%, 1/15/23 (1)		19,507		20,531
Covanta Holding Corp., 6.38%, 10/1/22		29,418		30,135
				80,043
Electrical Components & Equipment – 0.9%
Artesyn Escrow, Inc., 9.75%, 10/15/20 (1)(2)		17,350		17,350
GrafTech International Ltd., 6.38%, 11/15/20		28,275		28,558
				45,908
Electronics – 0.5%
Sanmina Corp., 7.00%, 5/15/19 (1)		24,645		25,939
Engineering & Construction – 0.7%
MasTec, Inc., 4.88%, 3/15/23		38,150		35,766
Entertainment – 0.9%
Activision Blizzard, Inc., 5.63%, 9/15/21 (1)		10,900		10,914
6.13%, 9/15/23 (1)		8,275		8,316
National CineMedia LLC, 7.88%, 7/15/21		26,425		28,803
				48,033

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Environmental Control – 1.4%
ADS Waste Holdings, Inc., 8.25%, 10/1/20 (1)		$25,650		$27,061
Casella Waste Systems, Inc., 7.75%, 2/15/19		26,530		26,397
Clean Harbors, Inc., 5.13%, 6/1/21		23,400		22,610
				76,068
Food – 3.9%
BI-LO LLC / BI-LO Finance Corp., 8.63%, 9/15/18  (1)(3)		27,325		27,735
Chiquita Brands International, Inc./Chiquita Brands LLC, 7.88%, 2/1/21 (1)		27,035		28,725
Ingles Markets, Inc., 5.75%, 6/15/23 (1)		31,850		30,735
JBS USA LLC / JBS USA Finance, Inc., 7.25%, 6/1/21 (1)		9,100		9,009
Land O’ Lakes, Inc., 6.00%, 11/15/22 (1)		31,700		32,334
Michael Foods Holding, Inc., 8.50%, 7/15/18 (1)(3)		24,451		25,368
Tops Holding Corp./Tops Markets LLC, 8.88%, 12/15/17 (1)		3,881		4,250
Tops Holding II Corp., 8.75%, 6/15/18 (1)(3)		15,450		15,759
US Foods, Inc., 8.50%, 6/30/19		32,027		33,748
				207,663
Forest Products & Paper – 1.6%
Neenah Paper, Inc., 5.25%, 5/15/21 (1)		26,750		25,546
P.H. Glatfelter Co., 5.38%, 10/15/20		30,429		30,277
Verso Paper Holdings LLC/Verso Paper, Inc., 11.75%, 1/15/19		30,975		31,982
				87,805
Gaming – 2.4%
Isle of Capri Casinos, Inc., 8.88%, 6/15/20		26,820		27,893
Mohegan Tribal Gaming Authority, 9.75%, 9/1/21 (1)		20,150		21,057

See Notes to the Financial Statements.

FIXED INCOME FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Gaming – 2.4% – continued
Rivers Pittsburgh Borrower L.P./Rivers Pittsburgh Finance Corp., 9.50%, 6/15/19 (1)		$24,436		$26,635
ROC Finance LLC/ROC Finance 1 Corp., 12.13%, 9/1/18 (1)		23,250		25,749
Station Casinos LLC, 7.50%, 3/1/21		27,575		29,161
				130,495
Healthcare - Products – 0.4%
Biomet, Inc., 6.50%, 8/1/20		18,575		19,179
Healthcare - Services – 2.5%
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22		22,487		22,234
Healthcare Technology Intermediate, Inc., 7.38%, 9/1/18  (1)(3)		28,362		28,965
Tenet Healthcare Corp., 8.13%, 4/1/22 (1)		9,100		9,498
6.88%, 11/15/31		30,631		25,960
United Surgical Partners International, Inc., 9.00%, 4/1/20		15,491		17,001
Universal Hospital Services, Inc., 7.63%, 8/15/20		31,850		32,885
				136,543
Home Builders – 1.2%
Beazer Homes USA, Inc., 7.50%, 9/15/21 (1)		24,700		24,082
Meritage Homes Corp., 7.15%, 4/15/20		17,754		19,174
Taylor Morrison Communities, Inc./Monarch Communities, Inc., 5.25%, 4/15/21 (1)		23,650		22,054
				65,310
Household Products/Wares – 0.9%
American Greetings Corp., 7.38%, 12/1/21		25,810		25,229
Sun Products (The) Corp., 7.75%, 3/15/21 (1)		27,845		25,618
				50,847
Insurance – 3.9%
American Equity Investment Life Holding Co., 6.63%, 7/15/21		28,750		29,756

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Insurance – 3.9% – continued
A-S Co-Issuer Subsidiary, Inc./A-S Merger Sub LLC, 7.88%, 12/15/20 (1)		$30,925		$31,544
CNO Financial Group, Inc., 6.38%, 10/1/20 (1)		28,450		29,730
Fidelity & Guaranty Life Holdings, Inc., 6.38%, 4/1/21 (1)		29,027		29,462
Genworth Holdings, Inc., 6.15%, 11/15/66		30,800		26,950
Hockey Merger Sub 2, Inc., 7.88%, 10/1/21 (1)(2)		27,300		27,334
Hub International Ltd., 8.13%, 10/15/18 (1)		30,045		33,538
				208,314
Internet – 0.3%
VeriSign, Inc., 4.63%, 5/1/23 (1)		18,960		17,822
Iron/Steel – 0.5%
Ryerson, Inc. / Joseph T Ryerson & Son, Inc., 9.00%, 10/15/17		25,830		26,734
Lodging – 0.9%
Caesars Ent. Resort Prop., 8.00%, 10/1/20 (1)(2)		22,825		22,825
MGM Resorts International, 8.63%, 2/1/19		20,895		24,029
				46,854
Media – 7.0%
Cablevision Systems Corp., 8.00%, 4/15/20		9,513		10,607
CCO Holdings LLC/CCO Holdings Capital Corp., 6.63%, 1/31/22		25,751		26,137
Cequel Communications Holdings I LLC/Cequel Capital Corp., 6.38%, 9/15/20 (1)		29,325		29,912
Gray Television, Inc., 7.50%, 10/1/20		25,435		26,452
Harron Communications L.P./Harron Finance Corp., 9.13%, 4/1/20 (1)		26,710		29,381
Hughes Satellite Systems Corp., 7.63%, 6/15/21		26,097		28,120

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Media – 7.0% – continued
McClatchy (The) Co., 9.00%, 12/15/22		$39,050		$41,198
Mediacom Broadband LLC/Mediacom Broadband Corp., 6.38%, 4/1/23		20,090		20,090
Mediacom LLC/Mediacom Capital Corp., 7.25%, 2/15/22		13,594		14,206
Midcontinent Communications & Midcontinent Finance Corp., 6.25%, 8/1/21 (1)		27,700		27,838
Sinclair Television Group, Inc., 6.38%, 11/1/21 (1)(2)		29,100		29,245
Sterling Entertainment Enterprises LLC, 9.75%, 12/15/19 (4)		23,800		24,692
Townsquare Radio LLC/Townsquare Radio, Inc., 9.00%, 4/1/19 (1)		30,745		32,667
Univision Communications, Inc., 8.50%, 5/15/21 (1)		31,957		34,993
				375,538
Miscellaneous Manufacturing – 0.6%
Park-Ohio Industries, Inc., 8.13%, 4/1/21		31,250		34,063
Oil & Gas – 3.8%
Atlas Energy Holdings Operating Co. LLC/Atlas Resource Finance Corp., 7.75%, 1/15/21 (1)		24,725		22,994
BreitBurn Energy Partners L.P./BreitBurn Finance Corp., 8.63%, 10/15/20		23,490		24,782
Clayton Williams Energy, Inc., 7.75%, 4/1/19		24,699		24,576
7.75%, 4/1/19 (1)		9,200		9,154
Halcon Resources Corp., 8.88%, 5/15/21		26,325		26,983
Linn Energy LLC/Linn Energy Finance Corp., 8.63%, 4/15/20		28,942		29,919
Swift Energy Co., 7.88%, 3/1/22		31,045		30,424
WPX Energy, Inc., 6.00%, 1/15/22		32,384		32,829
				201,661

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Oil & Gas Services – 1.5%
Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc., 6.63%, 11/15/19		$24,956		$25,393
Dresser-Rand Group, Inc., 6.50%, 5/1/21		25,480		27,009
Parker Drilling Co., 7.50%, 8/1/20 (1)		26,150		26,150
				78,552
Oil Refining & Marketing – 0.5%
PBF Holding Co. LLC/PBF Finance Corp., 8.25%, 2/15/20		23,456		24,277
Packaging & Containers – 1.6%
Exopack Holding Corp., 10.00%, 6/1/18		26,980		28,464
Plastipak Holdings, Inc., 6.50%, 10/1/21 (1)(2)		24,650		24,896
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, 9.00%, 4/15/19		33,060		34,713
				88,073
Pharmaceuticals – 1.4%
Jaguar Holding Co. I, 9.38%, 10/15/17 (1)(3)		28,872		30,532
JPR Royalty Sub LLC, 14.00%, 9/1/20 (1)(4)		8,000		5,760
Par Pharmaceutical Cos., Inc., 7.38%, 10/15/20 (1)		23,740		24,541
Pinnacle Merger Sub, Inc., 9.50%, 10/1/23 (1)		12,750		13,117
				73,950
Pipelines – 4.2%
Access Midstream Partners L.P./ACMP Finance Corp., 6.13%, 7/15/22		29,551		30,364
Atlas Pipeline Partners L.P./Atlas Pipeline Finance Corp., 6.63%, 10/1/20 (1)		28,295		28,861
Crosstex Energy L.P./Crosstex Energy Finance Corp., 7.13%, 6/1/22		36,520		37,616
Energy Transfer Equity L.P., 7.50%, 10/15/20		26,935		28,820

See Notes to the Financial Statements.

FIXED INCOME FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Pipelines – 4.2% – continued
Inergy Midstream L.P./NRGM Finance Corp., 6.00%, 12/15/20 (1)		$26,742		$26,541
Martin Midstream Partners L.P./Martin Midstream Finance Corp., 8.88%, 4/1/18		26,330		27,910
7.25%, 2/15/21		9,100		9,202
Rockies Express Pipeline LLC, 6.00%, 1/15/19 (1)		27,750		24,420
Tesoro Logistics L.P. / Tesoro Logistics Finance Corp., 6.13%, 10/15/21		13,775		13,844
				227,578
Real Estate – 0.5%
Howard Hughes (The) Corp., 6.88%, 10/1/21 (1)		26,500		26,566
Real Estate Investment Trusts – 2.3%
DuPont Fabros Technology L.P., 5.88%, 9/15/21 (1)		28,100		28,100
EPR Properties, 7.75%, 7/15/20		24,550		27,762
5.75%, 8/15/22		14,175		14,302
Felcor Lodging L.P., 5.63%, 3/1/23		24,860		23,213
MPT Operating Partnership L.P./MPT Finance Corp., 6.38%, 2/15/22		16,025		16,225
Senior Housing Properties Trust, 6.75%, 12/15/21		14,218		15,584
				125,186
Retail – 7.4%
99 Cents Only Stores, 11.00%, 12/15/19		31,752		35,562
Burlington Holdings LLC/Burlington Holding Finance, Inc., 9.00%, 2/15/18 (1)(3)		29,650		30,465
CST Brands, Inc., 5.00%, 5/1/23 (1)		29,853		28,137
Jo-Ann Stores Holdings, Inc., 9.75%, 10/15/19 (1)(3)		27,020		27,763
Landry’s, Inc., 9.38%, 5/1/20 (1)		21,225		22,392
Michaels FinCo Holdings LLC/Michaels FinCo, Inc., 7.50%, 8/1/18  (1)(3)		24,750		25,059

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Retail – 7.4% – continued
Murphy Oil USA, Inc., 6.00%, 8/15/23 (1)		$24,550		$24,427
New Academy Finance Co. LLC/New Academy Finance Corp., 8.00%, 6/15/18 (1)(3)		32,980		33,805
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc., 10.50%, 1/15/20		30,310		34,553
Pantry (The), Inc., 8.38%, 8/1/20		28,345		29,904
Party City Holdings, Inc., 8.88%, 8/1/20 (1)		12,075		12,981
PC Nextco Holdings LLC/PC Nextco Finance, Inc., 8.75%, 8/15/19  (1)(3)		14,625		14,625
Penske Automotive Group, Inc., 5.75%, 10/1/22		29,500		28,910
Rite Aid Corp., 9.25%, 3/15/20		16,385		18,597
Sonic Automotive, Inc., 7.00%, 7/15/22		27,538		29,466
				396,646
Software – 1.6%
Epicor Software Corp., 8.63%, 5/1/19		24,186		25,819
Infor US, Inc., 11.50%, 7/15/18		24,432		28,219
Sophia L.P./Sophia Finance, Inc., 9.75%, 1/15/19 (1)		28,401		30,815
				84,853
Telecommunications – 4.9%
CPI International, Inc., 8.00%, 2/15/18		30,275		31,183
EarthLink, Inc., 8.88%, 5/15/19		21,500		20,694
7.38%, 6/1/20 (1)		15,100		14,722
Frontier Communications Corp., 9.00%, 8/15/31		22,350		21,903
GCI, Inc., 8.63%, 11/15/19		29,281		30,672
Level 3 Financing, Inc., 8.13%, 7/1/19		8,528		9,125
8.63%, 7/15/20		18,875		20,621

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 80.4% – continued
Telecommunications – 4.9% – continued
Qwest Capital Funding, Inc., 7.75%, 2/15/31		$27,640		$26,120
Sprint Corp., 7.88%, 9/15/23 (1)		31,900		32,538
tw telecom holdings, Inc., 6.38%, 9/1/23 (1)		23,825		23,706
Windstream Corp., 7.75%, 10/1/21 (1)		13,725		14,171
7.50%, 4/1/23		17,925		17,701
				263,156
Transportation – 1.3%
Florida East Coast Holdings Corp., 10.50%, 8/1/17 (3)		13,210		13,739
Kenan Advantage Group (The), Inc., 8.38%, 12/15/18 (1)		28,925		30,335
Quality Distribution LLC/QD Capital Corp., 9.88%, 11/1/18		24,830		27,002
				71,076
Total Corporate Bonds
(Cost $4,271,360)				4,306,417
FOREIGN ISSUER BONDS – 14 . 8%
Aerospace/Defense – 0.5%
Bombardier, Inc., 7.45%, 5/1/34 (1)		25,741		25,612
Airlines – 0.5%
Air Canada, 6.75%, 10/1/19 (1)		13,650		13,582
8.75%, 4/1/20 (1)		13,650		13,814
				27,396
Aluminum – 0.4%
Novelis, Inc., 8.75%, 12/15/20		18,829		20,665
Auto Parts & Equipment – 0.5%
Schaeffler Holding Finance BV, 6.88%, 8/15/18 (1)(3)		27,250		28,544
Banks – 1.1%
Credit Agricole S.A., 8.13%, 9/19/33 (1)		24,250		24,127
Royal Bank of Scotland Group PLC, 7.64%, 3/29/49		33,350		31,682
				55,809

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 14.8% – continued
Commercial Services – 0.6%
Nord Anglia Education UK Holdings PLC, 10.25%, 4/1/17 (1)		$12,475		$13,847
Nord Anglia Education, Inc., 8.50%, 2/15/18 (1)		17,750		17,928
				31,775
Computers – 0.6%
MMI International Ltd., 8.00%, 3/1/17 (1)		30,180		30,180
Diversified Financial Services – 0.7%
National Money Mart Co., 10.38%, 12/15/16		36,630		38,370
Food – 0.5%
ESAL GmbH, 6.25%, 2/5/23 (1)		7,000		6,178
JBS Finance II Ltd., 8.25%, 1/29/18 (1)		20,900		21,213
				27,391
Healthcare - Products – 0.5%
ConvaTec Finance International S.A., 8.25%, 1/15/19 (1)(3)		27,850		27,850
Lodging – 0.5%
MCE Finance Ltd., 5.00%, 2/15/21 (1)		26,605		25,541
Media – 0.7%
Nara Cable Funding Ltd., 8.88%, 12/1/18 (1)		36,634		38,649
Mining – 0.5%
Vedanta Resources PLC, 9.50%, 7/18/18 (1)		26,250		28,809
Oil & Gas – 0.9%
Gazprom OAO, 4.95%, 2/6/28 (1)		23,150		20,488
PetroBakken Energy Ltd., 8.63%, 2/1/20 (1)		29,000		28,130
				48,618
Oil & Gas Services – 1.2%
Offshore Group Investment Ltd., 7.50%, 11/1/19		25,485		26,823
Seadrill Ltd., 5.63%, 9/15/17 (1)		15,325		15,478

See Notes to the Financial Statements.

FIXED INCOME FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 14.8% – continued
Oil & Gas Services – 1.2% – continued
6.13%, 9/15/20 (1)		$22,775		$22,434
				64,735
Retail – 0.5%
Arcos Dorados Holdings, Inc., 6.63%, 9/27/23 (1)		26,975		26,368
Telecommunications – 3.4%
Digicel Group Ltd., 8.25%, 9/30/20 (1)		31,965		33,084
Eileme 1 AB, 14.25%, 8/15/20 (1)(3)		25,157		26,918
Eileme 2 AB, 11.63%, 1/31/20 (1)		3,975		4,611
Intelsat Luxembourg S.A., 7.75%, 6/1/21 (1)		31,660		32,768
Sable International Finance Ltd., 8.75%, 2/1/20 (1)		22,468		24,602
Telemovil Finance Co. Ltd., 8.00%, 10/1/17 (1)		25,450		26,532
Wind Acquisition Finance S.A., 11.75%, 7/15/17 (1)		31,190		33,139
				181,654
Transportation – 0.7%
Navios South American Logistics, Inc./Navios Logistics Finance US, Inc., 9.25%, 4/15/19		33,860		36,399
Trucking & Leasing – 0.5%
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (1)		28,049		28,891
Total Foreign Issuer Bonds
(Cost $771,591)				793,256
	NUMBER OF SHARES		VALUE (000s)
PREFERRED STOCKS – 0.9%
Banks – 0.5%
Santander Finance Preferred S.A.U.		1,013,100		$26,776
Diversified Financial Services – 0.4%
GMAC Capital Trust I		807,550		21,602
Total Preferred Stocks
(Cost $47,509)				48,378
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 5.9%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (5)(6)		316,637,269		$316,637
Total Investment Companies
(Cost $316,637)				316,637
Total Investments – 102.0%
(Cost $5,407,097)				5,464,688
Liabilities less Other Assets – (2.0)%				(106,447	)
NET ASSETS – 100.0%				$5,358,241

(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) When-Issued Security.

(3) Security is payment in-kind bond.

(4) Restricted security that has been deemed illiquid. At September 30, 2013, the value of these restricted illiquid securities amounted to approximately $30,452,000 or 0.6% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
JPR Royalty Sub LLC, 14.00%, 9/1/20	3/10/11		$8,000
Sterling Entertainment Enterprises LLC, 9.75%, 12/15/19	8/12/13		14,205

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $212,614,000 with net purchases of approximately $104,023,000 during the six months ended September 30, 2013.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

Percentages shown are based on Net Assets.

At September 30, 2013, the credit quality distribution for High Yield Fixed Income Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
BBB		2.5%
BB		23.5
B		39.3
CCC		26.5
Cash Equivalents		5.8
Not Rated		2.4
Total		100.0%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in 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 – 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Corporate Bonds
Media		$–			$350,846			$24,692		$375,538
Pharmaceuticals		–			68,190			5,760		73,950
All Other Industries		–			3,856,929	(1)		–		3,856,929
Foreign Issuer Bonds		–			793,256	(1)		–		793,256
Preferred Stocks		48,378	(1)		–			–		48,378
Investment Companies		316,637			–			–		316,637
Total Investments		$365,015			$5,069,221			$30,452		$5,464,688

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

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

	BALANCE AS OF 3/31/13 (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 9/30/13 (000s)
Corporate Bonds
Media (1)	$	24,276	$	–	$	–	$	416	$	–	$	–	$	–		$	–	$	–	$	24,692
Pharmaceuticals		14,448		144		–		5,687		–		–		(14,519	)		–		–		5,760
Total	$	38,724	$	144	$	–	$	6,103	$	–	$	–	$	(14,519	)	$	–	$	–	$	30,452

(1) Security was valued using a price from third party provider.

The Fund valued certain securities using prices provided by NTGI PVC or a price from a third party provider. The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at September 30, 2013 was approximately $1,821, which is included in the Statement of Operations as part of the net change in unrealized appreciation (depreciation) on investments.

	FAIR VALUE AT 9/30/13 (000s)		VALUATION TECHNIQUES	UNOBSERVABLE INPUTS
Corporate Bond		$5,760	Analytical Valuation Methodology	Discount for lack of marketability

A discount was applied to the position due to lack of marketability. Changes in the marketability of the position could result in a change to the applied discount and result in a significantly higher (lower) fair value measurement.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 10.0%
Automobile – 1.1%
Ally Auto Receivables Trust, Series 2013-1, Class A3, 0.63%, 5/15/17		$610		$608
Fifth Third Auto Trust, Series 2013-A, Class A3, 0.61%, 9/15/17		690		688
Honda Auto Receivables Owner Trust, Series 2012-1, Class A3, 0.77%, 1/15/16		260		261
Honda Auto Receivables Owner Trust, Series 2013-2, Class A3, 0.53%, 2/16/17		565		564
Nissan Auto Receivables Owner Trust, Series 2012-A, Class A3, 0.73%, 5/16/16		720		722
Toyota Auto Receivables Owner Trust, Series 2013-A, Class A3, 0.55%, 1/17/17		640		638
				3,481
Commercial Mortgage-Backed Securities – 8.4%
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.41%, 9/10/47		1,460		1,600
Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PW10, Class A4, 5.41%, 12/11/40		1,616		1,726
Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A2, 4.74%, 9/11/42		133		133
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class A4, 5.54%, 10/12/41		1,695		1,867
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, 5.62%, 10/15/48		2,475		2,715
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP1, Class A2, 4.63%, 3/15/46		102		102
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.55%, 5/12/45		1,713		1,878

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 10.0% – continued
Commercial Mortgage-Backed Securities – 8.4% – continued
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A4, 5.40%, 5/15/45		$2,625		$2,873
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A4, 5.66%, 3/15/39		1,325		1,439
LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4, 6.05%, 6/15/38		3,460		3,808
Merrill Lynch Mortgage Trust, Series 2006-C2, Class A4, 5.74%, 8/12/43		1,258		1,380
Morgan Stanley Capital I Trust, Series 2006-HQ9, Class A4, 5.73%, 7/12/44		1,140		1,252
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A4, 5.33%, 12/15/43		2,644		2,897
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.31%, 11/15/48		2,010		2,211
				25,881
Credit Card – 0.2%
Discover Card Execution Note Trust, Series 2012-A1, Class A1, 0.81%, 8/15/17		559		561
Utilities – 0.3%
CenterPoint Energy Restoration Bond Co. LLC, Series 2009-1, Class A1, 1.83%, 2/15/16		502		508
CenterPoint Energy Transition Bond Co. IV LLC, Series 2012-1, Class A1, 0.90%, 4/15/18		520		523
				1,031
Total Asset-Backed Securities
(Cost $31,514)				30,954
CORPORATE BONDS – 48.0%
Aerospace/Defense – 0.1%
B/E Aerospace, Inc., 5.25%, 4/1/22		200		199
Agriculture – 0.6%
Philip Morris International, Inc., 2.50%, 5/16/16		900		935

See Notes to the Financial Statements.

FIXED INCOME FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Agriculture – 0.6% – continued
Reynolds American, Inc., 1.05%, 10/30/15		$800		$800
				1,735
Auto Manufacturers – 1.1%
Daimler Finance North America LLC, 1.25%, 1/11/16 (1)		570		570
1.45%, 8/1/16 (1)(2)		375		376
General Motors Co., 3.50%, 10/2/18 (1)(2)		825		823
Nissan Motor Acceptance Corp., 4.50%, 1/30/15 (1)(2)		400		418
1.00%, 3/15/16 (1)		1,265		1,256
				3,443
Auto Parts & Equipment – 0.8%
Continental Rubber of America Corp., 4.50%, 9/15/19 (1)(2)		500		524
Dana Holding Corp., 6.75%, 2/15/21		500		531
Delphi Corp., 5.88%, 5/15/19		225		239
Johnson Controls, Inc., 1.75%, 3/1/14		1,230		1,236
				2,530
Banks – 7.8%
Ally Financial, Inc., 3.13%, 1/15/16		400		401
3.50%, 7/18/16		960		970
Bank of America Corp., 1.82%, 7/11/14		525		530
3.70%, 9/1/15		855		894
1.50%, 10/9/15		220		221
1.07%, 3/22/16		1,245		1,250
3.88%, 3/22/17		590		627
Branch Banking & Trust Co., 1.45%, 10/3/16		360		362
Capital One Financial Corp., 2.13%, 7/15/14		575		581
1.00%, 11/6/15		630		627
Citigroup, Inc., 2.65%, 3/2/15		1,065		1,089
1.25%, 1/15/16		360		360
1.04%, 4/1/16		1,110		1,113

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Banks – 7.8% – continued
1.70%, 7/25/16		$295		$296
6.00%, 8/15/17		720		823
Discover Bank, 2.00%, 2/21/18		415		406
Fifth Third Bank, 0.90%, 2/26/16		645		641
Goldman Sachs Group (The), Inc., 6.00%, 5/1/14		310		320
3.30%, 5/3/15		730		755
1.60%, 11/23/15		935		942
3.63%, 2/7/16		625		658
2.38%, 1/22/18		645		640
2.90%, 7/19/18		545		549
HSBC USA, Inc., 2.38%, 2/13/15		200		204
JPMorgan Chase & Co., 4.88%, 3/15/14		250		255
1.10%, 10/15/15		910		912
3.15%, 7/5/16		865		908
7.90%, 4/30/18		370		401
JPMorgan Chase Bank N.A., 6.00%, 10/1/17		675		772
Morgan Stanley, 3.45%, 11/2/15		725		751
1.51%, 2/25/16		1,000		1,009
1.75%, 2/25/16		815		819
4.75%, 3/22/17		575		621
PNC Funding Corp., 2.70%, 9/19/16		380		395
Wells Fargo & Co., 1.50%, 7/1/15		970		982
7.98%, 3/15/18		370		407
Wells Fargo Bank N.A., 0.75%, 7/20/15		560		561
				24,052
Beverages – 1.2%
Anheuser-Busch InBev Finance, Inc., 0.80%, 1/15/16		1,170		1,169
PepsiCo, Inc., 0.75%, 3/5/15		430		431
0.70%, 2/26/16		475		474
2.25%, 1/7/19		1,020		1,022

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Beverages – 1.2% – continued
SABMiller Holdings, Inc., 1.85%, 1/15/15 (1)		$455		$461
				3,557
Biotechnology – 0.6%
Celgene Corp., 1.90%, 8/15/17		315		316
Genzyme Corp., 3.63%, 6/15/15		270		283
Gilead Sciences, Inc., 2.40%, 12/1/14		615		628
3.05%, 12/1/16		515		544
				1,771
Chemicals – 1.3%
Airgas, Inc., 2.95%, 6/15/16		815		847
Ashland, Inc., 3.00%, 3/15/16		1,000		1,012
Dow Chemical (The) Co., 2.50%, 2/15/16		550		568
Eastman Chemical Co., 2.40%, 6/1/17		325		330
Ecolab, Inc., 2.38%, 12/8/14		1,000		1,019
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., 6.50%, 4/15/21 (1)(2)		290		284
				4,060
Commercial Services – 1.2%
ADT (The) Corp., 6.25%, 10/15/21 (1)(2)		250		254
ERAC USA Finance LLC, 2.25%, 1/10/14 (1)		1,073		1,078
Hertz (The) Corp., 7.50%, 10/15/18		600		646
5.88%, 10/15/20		250		257
Service Corp. International, 5.38%, 1/15/22 (1)		550		525
United Rentals North America, Inc., 5.75%, 7/15/18		500		525
7.63%, 4/15/22		495		538
				3,823

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Computers – 0.6%
Hewlett-Packard Co., 2.63%, 12/9/14		$450		$459
2.60%, 9/15/17		270		272
International Business Machines Corp., 0.45%, 5/6/16		565		560
NetApp, Inc., 2.00%, 12/15/17		475		468
				1,759
Cosmetics/Personal Care – 0.3%
Avon Products, Inc., 2.38%, 3/15/16		1,000		1,020
Diversified Financial Services – 5.7%
American Express Credit Corp., 2.80%, 9/19/16		582		609
American Honda Finance Corp., 0.64%, 5/26/16 (1)		620		621
BlackRock, Inc., 3.50%, 12/10/14		775		802
1.38%, 6/1/15		165		167
Boeing Capital Corp., 2.13%, 8/15/16		320		331
Caterpillar Financial Services Corp., 0.70%, 11/6/15		525		525
1.35%, 9/6/16		1,370		1,379
Charles Schwab (The) Corp., 0.85%, 12/4/15		555		555
Ford Motor Credit Co. LLC, 7.00%, 4/15/15		680		738
4.25%, 2/3/17		300		321
Franklin Resources, Inc., 3.13%, 5/20/15		750		778
General Electric Capital Corp., 2.25%, 11/9/15		2,230		2,289
3.35%, 10/17/16		1,515		1,606
General Motors Financial Co., Inc., 4.75%, 8/15/17 (1)(2)		400		414
Hyundai Capital America, 1.63%, 10/2/15 (1)		1,060		1,062
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 6.00%, 8/1/20 (1)(2)		300		300
International Lease Finance Corp., 2.20%, 6/15/16		1,000		995

See Notes to the Financial Statements.

FIXED INCOME FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Diversified Financial Services – 5.7% – continued
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (1)(2)		$660		$750
PACCAR Financial Corp., 0.75%, 5/16/16		935		931
SLM Corp., 3.88%, 9/10/15		160		163
6.00%, 1/25/17		290		307
TD Ameritrade Holding Corp., 4.15%, 12/1/14		700		728
Toyota Motor Credit Corp., 2.00%, 9/15/16		1,285		1,320
				17,691
Electric – 1.2%
Commonwealth Edison Co., 1.63%, 1/15/14		325		326
Duke Energy Carolinas LLC, 1.75%, 12/15/16		400		409
Exelon Generation Co. LLC, 6.20%, 10/1/17		480		550
Georgia Power Co., 0.63%, 11/15/15		180		180
IPALCO Enterprises, Inc., 5.00%, 5/1/18		1,040		1,079
NextEra Energy Capital Holdings, Inc., 1.20%, 6/1/15		475		477
1.34%, 9/1/15		800		803
				3,824
Electronics – 0.4%
Agilent Technologies, Inc., 5.50%, 9/14/15		730		791
Thermo Fisher Scientific, Inc., 3.20%, 3/1/16		560		584
				1,375
Environmental Control – 0.2%
Clean Harbors, Inc., 5.25%, 8/1/20		725		718
Food – 1.4%
ConAgra Foods, Inc., 1.35%, 9/10/15		800		806
1.30%, 1/25/16		490		490
General Mills, Inc., 0.88%, 1/29/16		625		625

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Food – 1.4% – continued
Hershey (The) Co., 1.50%, 11/1/16		$610		$616
Kellogg Co., 1.13%, 5/15/15		570		575
Sun Merger Sub, Inc., 5.25%, 8/1/18 (1)(2)		675		692
Sysco Corp., 0.55%, 6/12/15		430		430
				4,234
Gas – 0.1%
CenterPoint Energy, Inc., 6.50%, 5/1/18		260		307
Healthcare – Products – 0.5%
Baxter International, Inc., 5.38%, 6/1/18		515		592
Stryker Corp., 2.00%, 9/30/16		190		195
Zimmer Holdings, Inc., 1.40%, 11/30/14		625		630
				1,417
Healthcare – Services – 1.5%
Aetna, Inc., 6.00%, 6/15/16		1,000		1,126
Cigna Corp., 2.75%, 11/15/16		580		602
DaVita HealthCare Partners, Inc., 6.63%, 11/1/20		775		823
HCA, Inc., 6.50%, 2/15/20		615		667
UnitedHealth Group, Inc., 0.85%, 10/15/15		410		411
Ventas Realty LP, 1.55%, 9/26/16		515		516
WellPoint, Inc., 1.25%, 9/10/15		575		579
				4,724
Home Builders – 0.6%
Lennar Corp., 4.13%, 12/1/18		1,925		1,838

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Household Products/Wares – 0.4%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, 5.75%, 10/15/20		$1,200		$1,205
Insurance – 0.6%
American International Group, Inc., 2.38%, 8/24/15		145		148
4.88%, 9/15/16		310		340
Berkshire Hathaway, Inc., 0.80%, 2/11/16		505		505
ING US, Inc., 5.65%, 5/15/53		310		283
Metropolitan Life Global Funding I, 2.50%, 9/29/15 (1)(2)		450		465
Prudential Financial, Inc., 3.00%, 5/12/16		145		152
				1,893
Internet – 0.7%
Amazon.com, Inc., 0.65%, 11/27/15		600		599
Equinix, Inc., 4.88%, 4/1/20		500		485
Symantec Corp., 2.75%, 9/15/15		1,065		1,098
				2,182
Iron/Steel – 0.4%
Glencore Funding LLC, 1.63%, 1/15/19 (1)(2)		1,065		1,002
Steel Dynamics, Inc., 6.13%, 8/15/19		160		167
				1,169
Lodging – 0.3%
Wyndham Worldwide Corp., 2.50%, 3/1/18		785		777
Machinery - Diversified – 0.2%
CNH Capital LLC, 3.63%, 4/15/18		745		741
Media – 4.2%
CCO Holdings LLC/CCO Holdings Capital Corp., 5.25%, 3/15/21 (1)(2)		500		480

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Media – 4.2% – continued
Cequel Communications Holdings I LLC/Cequel Capital Corp., 6.38%, 9/15/20 (1)		$1,000		$1,020
Comcast Corp., 4.95%, 6/15/16		1,060		1,170
6.30%, 11/15/17		250		295
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 3.50%, 3/1/16		590		615
2.40%, 3/15/17		720		723
McClatchy (The) Co., 9.00%, 12/15/22		775		818
Midcontinent Communications & Midcontinent Finance Corp., 6.25%, 8/1/21 (1)		525		528
NBCUniversal Enterprise, Inc., 0.81%, 4/15/16 (1)(2)		1,300		1,306
NBCUniversal Media LLC, 2.10%, 4/1/14		165		166
3.65%, 4/30/15		1,060		1,111
News America, Inc., 5.30%, 12/15/14		1,105		1,166
Starz LLC/Starz Finance Corp., 5.00%, 9/15/19		500		495
Time Warner Cable, Inc., 3.50%, 2/1/15		820		841
Time Warner, Inc., 3.15%, 7/15/15		800		833
Univision Communications, Inc., 6.88%, 5/15/19 (1)(2)		825		883
Viacom, Inc., 2.50%, 12/15/16		575		589
				13,039
Metal Fabrication/Hardware – 0.2%
Precision Castparts Corp., 0.70%, 12/20/15		500		499
Mining – 0.2%
Freeport-McMoRan Copper & Gold, Inc., 1.40%, 2/13/15		215		216
2.38%, 3/15/18 (1)(2)		480		464
				680
Miscellaneous Manufacturing – 0.5%
Eaton Corp., 0.95%, 11/2/15 (1)		750		750

See Notes to the Financial Statements.

FIXED INCOME FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Miscellaneous Manufacturing – 0.5% – continued
General Electric Co., 0.85%, 10/9/15		$550		$551
5.25%, 12/6/17		200		228
				1,529
Office/Business Equipment – 0.2%
Xerox Corp., 4.25%, 2/15/15		580		605
Oil & Gas – 3.1%
Anadarko Petroleum Corp., 5.75%, 6/15/14		695		718
6.38%, 9/15/17		300		349
Atwood Oceanics, Inc., 6.50%, 2/1/20		250		262
Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc., 6.63%, 11/15/19		600		610
Continental Resources, Inc., 5.00%, 9/15/22		595		599
Devon Energy Corp., 1.88%, 5/15/17		655		656
Linn Energy LLC/Linn Energy Finance Corp., 6.75%, 11/1/19 (1)(2)		1,000		942
Marathon Oil Corp., 0.90%, 11/1/15		690		690
Murphy Oil Corp., 2.50%, 12/1/17		560		556
Newfield Exploration Co., 6.88%, 2/1/20		850		893
Phillips 66, 2.95%, 5/1/17		390		404
QEP Resources, Inc., 6.88%, 3/1/21		470		499
Range Resources Corp., 6.75%, 8/1/20		900		970
Rosetta Resources, Inc., 5.63%, 5/1/21		500		475
Tesoro Corp., 4.25%, 10/1/17		450		461
Western Refining, Inc., 6.25%, 4/1/21		550		539
				9,623

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Packaging & Containers – 0.4%
Ball Corp., 5.75%, 5/15/21		$500		$527
Graphic Packaging International, Inc., 4.75%, 4/15/21		500		485
Plastipak Holdings, Inc., 6.50%, 10/1/21 (1)(2)(3)		325		330
				1,342
Pharmaceuticals – 2.0%
AbbVie, Inc., 1.20%, 11/6/15		1,555		1,561
Cardinal Health, Inc., 1.90%, 6/15/17		410		411
1.70%, 3/15/18		205		200
Express Scripts Holding Co., 2.10%, 2/12/15		665		676
3.13%, 5/15/16		500		523
McKesson Corp., 0.95%, 12/4/15		355		355
5.70%, 3/1/17		190		216
Merck & Co., Inc., 0.70%, 5/18/16		950		949
Mylan, Inc., 1.80%, 6/24/16 (1)		400		402
Zoetis, Inc., 1.15%, 2/1/16 (1)		830		833
				6,126
Pipelines – 0.8%
Enterprise Products Operating LLC, 3.70%, 6/1/15		350		366
1.25%, 8/13/15		375		377
Kinder Morgan Energy Partners L.P., 5.95%, 2/15/18		310		355
Kinder Morgan Finance Co. LLC, 6.00%, 1/15/18 (1)(2)		250		271
Plains All American Pipeline L.P./PAA Finance Corp., 5.63%, 12/15/13		280		283
Williams Partners L.P., 3.80%, 2/15/15		670		695
				2,347
Real Estate Investment Trusts – 1.6%
AvalonBay Communities, Inc., 5.75%, 9/15/16		800		901

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Real Estate Investment Trusts – 1.6% – continued
DDR Corp., 7.50%, 7/15/18		$510		$607
DuPont Fabros Technology L.P., 5.88%, 9/15/21(1)		465		465
ERP Operating L.P., 5.25%, 9/15/14		765		797
Health Care REIT, Inc., 5.88%, 5/15/15		1,215		1,305
Host Hotels & Resorts L.P., 5.88%, 6/15/19		350		378
Kimco Realty Corp., 5.70%, 5/1/17		445		500
				4,953
Retail – 1.0%
CVS Caremark Corp., 5.75%, 6/1/17		680		778
Home Depot (The), Inc., 5.40%, 3/1/16		635		704
Macy’s Retail Holdings, Inc., 5.90%, 12/1/16		940		1,061
Walgreen Co., 1.00%, 3/13/15		595		597
				3,140
Semiconductors – 0.2%
Samsung Electronics America, Inc., 1.75%, 4/10/17 (1)(2)		530		529
Software – 0.8%
Activision Blizzard, Inc., 5.63%, 9/15/21 (1)(2)		465		466
Autodesk, Inc., 1.95%, 12/15/17		335		328
Fidelity National Information Services, Inc., 7.88%, 7/15/20		1,000		1,105
Oracle Corp., 5.25%, 1/15/16		545		599
				2,498
Telecommunications – 2.8%
AT&T, Inc., 1.60%, 2/15/17		660		662
Cellco Partnership/Verizon Wireless Capital LLC, 5.55%, 2/1/14		355		361

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.0% – continued
Telecommunications – 2.8% – continued
CenturyLink, Inc., 6.00%, 4/1/17		$1,000		$1,075
Cisco Systems, Inc., 1.63%, 3/14/14		320		322
3.15%, 3/14/17		460		490
Frontier Communications Corp., 8.25%, 4/15/17		650		738
Juniper Networks, Inc., 3.10%, 3/15/16		500		516
SBA Communications Corp., 5.63%, 10/1/19		1,000		983
Verizon Communications, Inc., 0.70%, 11/2/15		600		596
1.78%, 9/15/16		595		612
2.50%, 9/15/16		885		912
2.00%, 11/1/16		1,230		1,246
				8,513
Transportation – 0.2%
Ryder System, Inc., 3.15%, 3/2/15		585		603
Total Corporate Bonds
(Cost $148,433)				148,070
FOREIGN ISSUER BONDS – 10.4%
Auto Manufacturers – 0.2%
Volkswagen International Finance N.V., 1.63%, 3/22/15 (1)		465		471
Banks – 1.8%
ANZ New Zealand Int’l Ltd., 1.13%, 3/24/16 (1)(2)		255		255
Australia & New Zealand Banking Group Ltd., 0.90%, 2/12/16		540		540
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A., 0.73%, 3/18/16		1,236		1,240
ING Bank N.V., 2.00%, 10/18/13 (1)(2)		855		855
National Bank of Canada, 1.50%, 6/26/15		340		345
Royal Bank of Canada, 0.63%, 12/4/15		330		329
Sumitomo Mitsui Banking Corp., 0.90%, 1/18/16		505		503

See Notes to the Financial Statements.

FIXED INCOME FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 10.4% – continued
Banks – 1.8% – continued
Svenska Handelsbanken AB, 0.72%, 9/23/16		$660		$661
Toronto-Dominion Bank (The), 1.50%, 9/9/16		850		861
				5,589
Beverages – 0.9%
Diageo Capital PLC, 0.63%, 4/29/16		575		571
Heineken N.V., 0.80%, 10/1/15 (1)		765		763
Pernod-Ricard S.A., 2.95%, 1/15/17 (1)(2)		1,100		1,141
SABMiller PLC, 6.50%, 7/1/16 (1)(2)		320		364
				2,839
Chemicals – 0.5%
INEOS Group Holdings S.A., 6.13%, 8/15/18 (1)(2)		750		733
LyondellBasell Industries N.V., 5.00%, 4/15/19		730		804
				1,537
Computers – 0.4%
Seagate HDD Cayman, 6.88%, 5/1/20		400		438
4.75%, 6/1/23 (1)(2)		785		756
				1,194
Diversified Financial Services – 0.2%
Macquarie Group Ltd., 7.30%, 8/1/14(1)(2)		470		494
Healthcare - Products – 0.1%
Covidien International Finance S.A., 1.35%, 5/29/15		355		358
Internet – 0.1%
Baidu, Inc., 3.25%, 8/6/18		415		415
Leisure Time – 0.2%
Royal Caribbean Cruises Ltd., 6.88%, 12/1/13		685		689
Mining – 0.6%
Anglo American Capital PLC, 2.63%, 9/27/17 (1)(2)		200		197

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 10.4% – continued
Mining – 0.6% – continued
Rio Tinto Finance USA PLC, 2.00%, 3/22/17		$475		$478
1.63%, 8/21/17		315		310
Vedanta Resources PLC, 6.00%, 1/31/19 (1)(2)		400		380
Xstrata Finance Canada Ltd., 2.05%, 10/23/15 (1)		615		617
				1,982
Miscellaneous Manufacturing – 0.6%
Bombardier, Inc., 4.25%, 1/15/16 (1)(2)		1,000		1,037
Pentair Finance S.A., 1.88%, 9/15/17		180		177
Tyco Electronics Group S.A., 6.55%, 10/1/17		660		761
				1,975
Oil & Gas – 2.3%
BP Capital Markets PLC, 0.70%, 11/6/15		415		414
2.25%, 11/1/16		675		695
Canadian Natural Resources Ltd., 5.70%, 5/15/17		375		424
CNOOC Finance 2013 Ltd., 1.13%, 5/9/16		1,125		1,113
Ensco PLC, 3.25%, 3/15/16		250		261
Lukoil International Finance B.V., 3.42%, 4/24/18 (1)(2)		400		398
Noble Holding International Ltd., 2.50%, 3/15/17		485		488
Petrobras Global Finance B.V., 2.00%, 5/20/16		1,020		1,013
Petrobras International Finance Co., 2.88%, 2/6/15		510		517
Shell International Finance B.V., 0.63%, 12/4/15		490		490
Total Capital International S.A., 1.00%, 8/12/16		1,015		1,017
Transocean, Inc., 2.50%, 10/15/17		255		256
				7,086

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 10.4% – continued
Pharmaceuticals – 0.5%
Sanofi, 2.63%, 3/29/16		$600		$626
Teva Pharmaceutical Finance II B.V./Teva Pharmaceutical Finance III LLC, 3.00%, 6/15/15		750		776
				1,402
Pipelines – 0.2%
TransCanada PipeLines Ltd., 0.88%, 3/2/15		135		136
0.75%, 1/15/16		330		328
				464
Telecommunications – 1.7%
America Movil S.A.B. de C.V., 5.75%, 1/15/15		985		1,043
British Telecommunications PLC, 1.63%, 6/28/16		1,080		1,086
Intelsat Jackson Holdings S.A., 7.25%, 10/15/20		1,740		1,857
Softbank Corp., 4.50%, 4/15/20 (1)		500		480
Virgin Media Secured Finance PLC, 5.38%, 4/15/21 (1)(2)		475		463
Vodafone Group PLC, 4.15%, 6/10/14		435		446
				5,375
Transportation – 0.1%
Canadian National Railway Co., 1.45%, 12/15/16		265		267
Total Foreign Issuer Bonds
(Cost $32,166)				32,137
U.S. GOVERNMENT AGENCIES – 8.8% (4)
Fannie Mae – 3.8%
Pool #555649, 7.50%, 10/1/32		46		53
Pool #893082, 2.67%, 9/1/36		381		406
Pool #AB3114, 5.00%, 6/1/41		1,244		1,356
Pool #AD0915, 5.50%, 12/1/38		172		187
Pool #AD7061, 5.50%, 6/1/40		261		288

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 8.8% (4) – continued
Fannie Mae – 3.8% – continued
Pool #AI3471, 5.00%, 6/1/41		$505		$550
Pool #AK0501, 3.00%, 1/1/27		1,368		1,418
Pool #AO0315, 3.00%, 4/1/27		1,528		1,585
Pool #AO4482, 3.00%, 5/1/27		1,321		1,370
Pool TBA, 3.00%, 10/13/28 (3)		2,400		2,485
Series 2013-54, Class PM, 1.50%, 5/25/43		2,284		2,137
				11,835
Freddie Mac – 0.3%
Pool #1B3617, 2.93%, 10/1/37		278		295
Pool #848076, 5.55%, 6/1/38		348		373
Series 3730, Class PL, 4.50%, 1/15/33		272		275
				943
Freddie Mac Gold – 0.4%
Pool #A92650, 5.50%, 6/1/40		631		699
Pool #G13387, 5.00%, 4/1/23		325		346
				1,045
Government National Mortgage Association – 3.5%
Series 2011-49, Class A, 2.45%, 7/16/38		1,052		1,068
Series 2011-49, Class AB, 2.80%, 1/16/34		–		–
Series 2012-123, Class A, 1.04%, 7/16/46		2,944		2,770
Series 2012-2, Class A, 1.86%, 6/16/31		1,191		1,198
Series 2012-22, Class AB, 1.66%, 3/16/33		411		412
Series 2013-12, Class KA, 1.50%, 12/16/43		496		491
Series 2013-142, Class AD, 2.25%, 12/16/47		1,430		1,429

See Notes to the Financial Statements.

FIXED INCOME FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 8.8% (4) – continued
Government National Mortgage Association – 3.5% – continued
Series 2013-17, Class AF, 1.21%, 11/16/43		$1,319		$1,300
Series 2013-45, Class A, 1.45%, 10/16/40		1,612		1,590
Series 2013-92, Class AB, 2.00%, 2/16/43		607		606
				10,864
Government National Mortgage Association II – 0.8%
Pool #82581, 4.00%, 7/20/40		960		1,020
Pool #83021, 3.00%, 1/20/42		1,417		1,473
				2,493
Total U.S. Government Agencies
(Cost $27,475)				27,180
U.S. GOVERNMENT OBLIGATIONS – 14.6%
U.S. Treasury Inflation Indexed Notes – 3.2%
0.13%, 4/15/16		9,255		10,051
U.S. Treasury Notes – 11.4%
0.25%, 9/30/15		22,920		22,886
0.88%, 9/15/16		12,115		12,204
				35,090
Total U.S. Government Obligations
(Cost $45,045)				45,141

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 6.0%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (5)(6)		18,340,555		$18,341
Total Investment Companies
(Cost $18,341)				18,341

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.3%
U.S. Treasury Bill, 0.06%, 11/29/13 (7)		$800		$800
Total Short-Term Investments
(Cost $800)				800
Total Investments – 98.1%
(Cost $303,774)				302,623
Other Assets less Liabilities – 1.9%				6,009
NET ASSETS – 100.0%				$308,632

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $19,045,000 or 6.2% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Activision Blizzard, Inc., 5.63%, 9/15/21	9/12/13		$465
ADT (The) Corp., 6.25%, 10/15/21	9/24/13		250
Anglo American Capital PLC, 2.63%, 9/27/17	9/20/12		200
ANZ New Zealand Int’l Ltd., 1.13%, 3/24/16	3/20/13		255
Bombardier, Inc., 4.25%, 1/15/16	1/9/13		1,000
CCO Holdings LLC/CCO Holdings Capital Corp., 5.25%, 3/15/21	5/1/13		516
Continental Rubber of America Corp., 4.50%, 9/15/19	9/18/13		510
Daimler Finance North America LLC, 1.45%, 8/1/16	7/24/13		375
Freeport-McMoRan Copper & Gold, Inc., 2.38%, 3/15/18	2/28/13		480
General Motors Co., 3.50%, 10/2/18	9/24/13		825
General Motors Financial Co., Inc., 4.75%, 8/15/17	8/13/12		400

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Glencore Funding LLC, 1.63%, 1/15/19	5/22/13		$1,065
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 6.00%, 8/1/20	7/31/13		300
INEOS Group Holdings S.A., 6.13%, 8/15/18	5/2/13		750
ING Bank N.V., 2.00%, 10/18/13	10/13/10		853
Kinder Morgan Finance Co. LLC, 6.00%, 1/15/18	2/26/13		278
KKR Group Finance Co. LLC, 6.38%, 9/29/20	4/15/13		792
Linn Energy LLC/Linn Energy Finance Corp., 6.75%, 11/1/19	2/26/13-5/9/13		1,042
Lukoil International Finance B.V., 3.42%, 4/24/18	4/17/13		400
Macquarie Group Ltd., 7.30%, 8/1/14	12/14/10-12/15/10		513
Metropolitan Life Global Funding I, 2.50%, 9/29/15	9/22/10		450
NBCUniversal Enterprise, Inc., 0.81%, 4/15/16	3/20/13		1,301
Nissan Motor Acceptance Corp., 4.50%, 1/30/15	1/20/10		398
Pernod-Ricard S.A., 2.95%, 1/15/17	1/10/12-4/12/13		1,151
Plastipak Holdings, Inc., 6.50%, 10/1/21	9/25/13		325
Rentech Nitrogen Partners L.P./Rentech Nitrogen Finance Corp., 6.50%, 4/15/21	4/9/13		290
SABMiller PLC, 6.50%, 7/1/16	12/20/12		378
Samsung Electronics America, Inc., 1.75%, 4/10/17	4/2/12-12/20/12		531
Seagate HDD Cayman, 4.75%, 6/1/23	9/26/13-9/27/13		761
Sun Merger Sub, Inc., 5.25%, 8/1/18	7/19/13		675
Univision Communications, Inc., 6.88%, 5/15/19	3/14/13-5/16/13		895
Vedanta Resources PLC, 6.00%, 1/31/19	5/23/13		400

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Virgin Media Secured Finance PLC, 5.38%, 4/15/21	2/7/13		$475

(3) When-Issued Security.

(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.

(5) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $59,996,000 with net sales of approximately $41,655,000 during the six months ended September 30, 2013.

(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.

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

Percentages shown are based on Net Assets.

At September 30, 2013, the credit quality distribution for the Short Bond Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
U.S. Treasury		19.6%
U.S. Agency		4.6
AAA		7.6
AA		7.8
A		19.1
BBB		22.2
BB		7.8
B		5.0
CCC		0.2
Cash Equivalents		6.1
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.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the Short Bond Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000s)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000s)
Five Year U.S. Treasury Note		(300)		$36,314		Short		12/13		$(455	)

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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Asset-Backed Securities		$–			$30,954	(1)		$–		$30,954
Corporate Bonds		–			148,070	(1)		–		148,070
Foreign Issuer Bonds		–			32,137	(1)		–		32,137
U.S. Government Agencies		–			27,180	(1)		–		27,180
U.S. Government Obligations		–			45,141	(1)		–		45,141
Investment Companies		18,341			–			–		18,341
Short-Term Investments		–			800			–		800
Total Investments		$18,341			$284,282			$–		$302,623
OTHER FINANCIAL INSTRUMENTS
Liabilities
Futures Contracts		$(455	)		$–			$–		$(455	)

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 22.2% (1)
Fannie Mae – 8.9%
Pool #555649, 7.50%, 10/1/32		$90		$102
Pool #745148, 5.00%, 1/1/36		2,587		2,804
Pool #893082, 2.67%, 9/1/36		1,016		1,083
Pool #AH1166, 4.50%, 12/1/40		2,448		2,621
Pool TBA, 4.50%, 10/13/43 (2)		13,545		14,466
				21,076
Freddie Mac – 2.6%
Pool #1J0365, 2.67%, 4/1/37		669		713
Pool #1J2840, 3.02%, 9/1/37		1,456		1,548
Pool #1Q0323, 3.03%, 5/1/37		2,851		3,039
Pool #410092, 2.29%, 11/1/24		15		15
Series 3730, Class PL, 4.50%, 1/15/33		960		969
				6,284
Government National Mortgage Association – 9.3%
Series 2011-49, Class A, 2.45%, 7/16/38		2,437		2,474
Series 2012-123, Class A, 1.04%, 7/16/46		2,723		2,562
Series 2013-12, Class KA, 1.50%, 12/16/43		2,102		2,081
Series 2013-142, Class AD, 2.25%, 12/16/47		2,850		2,847
Series 2013-17, Class AF, 1.21%, 11/16/43		2,593		2,557
Series 2013-40, Class AB, 1.30%, 6/16/35		2,213		2,204
Series 2013-45, Class A, 1.45%, 10/16/40		2,535		2,499
Series 2013-92, Class AB, 2.00%, 2/16/43		4,834		4,831
				22,055

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 22.2% (1) – continued
Government National Mortgage Association II – 1.4%
Pool #82581, 4.00%, 7/20/40		$3,202		$3,400
Total U.S. Government Agencies
(Cost $52,358)				52,815
U.S. GOVERNMENT OBLIGATIONS – 61.1%
U.S. Treasury Inflation Indexed Notes – 4.0%
0.13%, 4/15/18		9,140		9,515
U.S. Treasury Notes – 57.1%
0.25%, 9/30/15		47,585		47,515
0.88%, 9/15/16		45,730		46,066
1.38%, 9/30/18		41,870		41,840
				135,421
Total U.S. Government Obligations
(Cost $144,350)				144,936

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 20.9%
Northern Institutional Funds - U.S. Government Portfolio, 0.01% (3)(4)		49,502,900		$49,503
Total Investment Companies
(Cost $49,503)				49,503

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 1.7%
U.S. Treasury Bill, 0.06%, 11/29/13 (5)		$4,000		$4,000
Total Short-Term Investments
(Cost $4,000)				4,000
Total Investments – 105.9%
(Cost $250,211)				251,254
Liabilities less Other Assets – (5.9)%				(13,975	)
NET ASSETS – 100.0%				$237,279

(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.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

(2) When-Issued Security.

(3) At March 31, 2013, the value of the Fund’s investment in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $75,146,000 with net sales of approximately $25,643,000 during the six months ended September 30, 2013.

(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.

Percentages shown are based on Net Assets.

At September 30, 2013, 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 GAINS (LOSSES) (000s)
10-Year U.S. Treasury Note		(74)		$9,353		Short		12/13		$(182)
2-Year U.S. Treasury Note		126		27,753		Long		12/13		72
Total										$(110)

At September 30, 2013, the credit quality distribution for the Short-Intermediate U.S. Government Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
U.S. Treasury		69.4%
U.S. Agency		10.9
Cash Equivalents		19.7
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.

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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
U.S. Government Agencies		$ –			$52,815	(1)		$ –		$52,815
U.S. Government Obligations		–			144,936	(1)		–		144,936
Investment Companies		49,503			–			–		49,503
Short-Term Investments		–			4,000			–		4,000
Total Investments		$49,503			$201,751			$–		$251,254
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$72			$–			$–		$72
Liabilities
Futures Contracts		(182	)		–			–		(182	)
Total Other Financial Instruments		$	(110)		$–			$–		$	(110)

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 0.9%
Credit Card – 0.9%
Citibank Credit Card Issuance Trust, 1.32%, 9/7/18		$20,000		$20,140
Total Asset-Backed Securities
(Cost $19,999)				20,140
CORPORATE BONDS – 17.6%
Agriculture – 0.1%
Bunge Ltd. Finance Corp., 5.35%, 4/15/14		2,000		2,047
Auto Manufacturers – 1.7%
Daimler Finance North America LLC, 0.86%, 3/28/14 (1)		6,000		6,016
1.05%, 4/10/14 (1)		10,000		10,032
2.30%, 1/9/15 (1)		3,000		3,047
Nissan Motor Acceptance Corp., 1.00%, 3/15/16 (1)		20,000		19,859
				38,954
Banks – 6.9%
Bank of America Corp., 1.82%, 7/11/14		5,000		5,050
1.25%, 1/11/16		7,000		6,993
1.32%, 3/22/18		2,000		2,006
Capital One Financial Corp., 2.13%, 7/15/14		2,000		2,022
2.15%, 3/23/15		4,100		4,166
0.91%, 11/6/15		9,500		9,528
Capital One N.A., 0.70%, 3/22/16		1,000		999
Citigroup, Inc., 5.50%, 10/15/14		2,221		2,327
Fifth Third Bank, 0.90%, 2/26/16		16,000		15,903
Goldman Sachs Group (The), Inc., 5.25%, 10/15/13		1,000		1,001
6.00%, 5/1/14		5,000		5,155
1.26%, 11/21/14		2,800		2,816
1.60%, 11/23/15		10,000		10,073
HSBC USA, Inc., 2.38%, 2/13/15		2,000		2,045
1.13%, 9/24/18		8,000		8,019
JPMorgan Chase & Co., 0.93%, 10/15/15		15,500		15,550
1.13%, 2/26/16		20,000		19,977

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 17.6% – continued
Banks – 6.9% – continued
Morgan Stanley, 1.87%, 1/24/14		$2,300		$2,309
1.75%, 2/25/16		14,245		14,314
1.55%, 4/25/18		4,000		4,014
SunTrust Bank, 0.55%, 4/1/15		1,831		1,819
US Bancorp, 3.44%, 2/1/16		5,000		5,225
Wells Fargo & Co., 1.25%, 2/13/15		6,000		6,050
1.17%, 6/26/15		10,500		10,618
				157,979
Beverages – 0.1%
SABMiller Holdings, Inc., 1.85%, 1/15/15 (1)		1,165		1,179
Chemicals – 0.3%
Airgas, Inc., 2.85%, 10/1/13		6,000		6,000
Computers – 0.3%
Hewlett-Packard Co., 1.80%, 9/19/14		5,000		5,050
2.63%, 12/9/14		1,000		1,019
				6,069
Diversified Financial Services – 2.2%
American Express Credit Corp., 1.10%, 6/24/14		4,495		4,519
1.36%, 6/12/15		8,000		8,115
Ford Motor Credit Co. LLC, 4.21%, 4/15/16		10,000		10,598
General Electric Capital Corp., 2.15%, 1/9/15		10,000		10,208
Hyundai Capital America, 1.63%, 10/2/15 (1)		6,000		6,010
Toyota Motor Credit Corp., 0.88%, 7/17/15		10,000		10,069
				49,519
Electric – 0.7%
Commonwealth Edison Co., 1.63%, 1/15/14		2,000		2,007
NextEra Energy Capital Holdings, Inc., 2.55%, 11/15/13		3,000		3,007
1.61%, 6/1/14		3,000		3,019

See Notes to the Financial Statements.

FIXED INCOME FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 17.6% – continued
Electric – 0.7% – continued
Xcel Energy, Inc., 0.75%, 5/9/16		$9,000		$8,937
				16,970
Food – 0.5%
ConAgra Foods, Inc., 1.30%, 1/25/16		3,600		3,604
General Mills, Inc., 0.88%, 1/29/16		3,000		2,999
Kellogg Co., 1.13%, 5/15/15		2,000		2,016
Kraft Foods Group, Inc., 1.63%, 6/4/15		2,000		2,031
				10,650
Healthcare - Services – 0.0%
Quest Diagnostics, Inc., 1.10%, 3/24/14		1,000		1,003
Insurance – 0.4%
American International Group, Inc., 3.00%, 3/20/15		9,000		9,263
Iron/Steel – 0.1%
Glencore Funding LLC, 1.70%, 5/27/16 (1)		3,000		2,956
Miscellaneous Manufacturing – 0.1%
Eaton Corp., 0.95%, 11/2/15 (1)		3,000		3,000
Office/Business Equipment – 0.1%
Xerox Corp., 1.08%, 5/16/14		2,500		2,503
Oil & Gas – 0.4%
Marathon Oil Corp., 0.90%, 11/1/15		10,000		9,999
Oil & Gas Services – 1.1%
Halliburton Co., 1.00%, 8/1/16		25,500		25,462
Pharmaceuticals – 0.8%
AbbVie, Inc., 1.20%, 11/6/15		17,000		17,062
Pipelines – 0.2%
Enterprise Products Operating LLC, 1.25%, 8/13/15		3,300		3,317

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 17.6% – continued
Retail – 0.7%
Nordstrom, Inc., 6.75%, 6/1/14		$9,000		$9,363
Walgreen Co., 0.75%, 3/13/14		7,000		7,010
				16,373
Semiconductors – 0.1%
Broadcom Corp., 1.50%, 11/1/13		2,000		2,001
Telecommunications – 0.6%
Verizon Communications, Inc., 2.50%, 9/15/16		5,660		5,834
2.00%, 9/14/18		7,850		8,254
				14,088
Transportation – 0.2%
CSX Corp., 6.25%, 4/1/15		4,000		4,322
Total Corporate Bonds
(Cost $398,597)				400,716
FOREIGN ISSUER BONDS – 16.2%
Agriculture – 0.1%
BAT International Finance PLC, 1.40%, 6/5/15 (1)		3,000		3,027
Banks – 12.0%
ABN AMRO Bank N.V., 1.38%, 1/22/16 (1)		13,000		13,001
Australia & New Zealand Banking Group Ltd., 0.90%, 2/12/16		10,000		9,992
Bank of Montreal, 0.73%, 9/11/15		3,000		3,015
Bank of Nova Scotia, 1.85%, 1/12/15		9,000		9,157
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., 1.00%, 2/26/16 (1)		20,000		19,942
0.87%, 9/9/16 (1) (2)		5,000		5,020
Barclays Bank PLC, 1.31%, 1/13/14		1,500		1,504
BNP Paribas S.A., 1.17%, 1/10/14		3,000		3,006
3.00%, 12/20/14		2,613		2,694
BPCE S.A., 1.52%, 4/25/16		10,000		10,142

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 16.2% – continued
Banks – 12.0% – continued
Commonwealth Bank of Australia, 1.95%, 3/16/15		$3,000		$3,058
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A., 4.20%, 5/13/14 (1)		7,750		7,920
Credit Agricole S.A., 1.43%, 4/15/16 (1)		19,500		19,705
1.10%, 10/3/16 (1)(2)		10,000		9,994
ING Bank N.V., 1.89%, 9/25/15 (1)		8,500		8,681
1.21%, 3/7/16 (1)		20,000		20,145
Korea Development Bank (The), 8.00%, 1/23/14		4,250		4,344
1.00%, 1/22/16		4,000		3,948
3.25%, 3/9/16		3,800		3,948
Macquarie Bank Ltd., 2.00%, 8/15/16 (1)		13,000		13,068
National Australia Bank Ltd., 0.99%, 4/11/14 (1)		12,850		12,896
1.60%, 8/7/15		10,000		10,160
Nordea Bank Finland PLC, 0.73%, 1/27/14		4,500		4,508
1.15%, 4/9/14		7,550		7,584
Oversea-Chinese Banking Corp. Ltd., 1.63%, 3/13/15 (1)		4,000		4,049
Royal Bank of Canada, 1.15%, 3/13/15		10,000		10,086
Royal Bank of Scotland Group PLC, 2.55%, 9/18/15		2,000		2,043
Societe Generale S.A., 1.33%, 10/1/18		24,000		24,038
UBS A.G., 1.26%, 1/28/14		5,000		5,016
Westpac Banking Corp., 0.98%, 3/31/14 (1)		5,000		5,019
1.01%, 9/25/15		17,000		17,172
				274,855
Healthcare - Products – 0.1%
Covidien International Finance S.A., 1.35%, 5/29/15		2,700		2,726
Leisure Time – 0.1%
Carnival Corp., 1.20%, 2/5/16		2,000		1,987

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 16.2% – continued
Mining – 0.5%
Rio Tinto Finance USA PLC, 1.13%, 3/20/15		$5,500		$5,528
Xstrata Finance Canada Ltd., 2.85%, 11/10/14 (1)		3,000		3,045
2.05%, 10/23/15 (1)		4,000		4,011
				12,584
Miscellaneous Manufacturing – 0.2%
Pentair Finance S.A., 1.35%, 12/1/15		4,000		4,015
Oil & Gas – 1.8%
BP Capital Markets PLC, 0.88%, 9/26/18		10,000		10,005
Canadian Natural Resources Ltd., 1.45%, 11/14/14		10,000		10,075
Petrobras Global Finance B.V., 1.88%, 5/20/16		18,000		17,910
Petrobras International Finance Co., 2.88%, 2/6/15		2,000		2,029
				40,019
Pharmaceuticals – 0.6%
Takeda Pharmaceutical Co. Ltd., 1.03%, 3/17/15 (1)		13,000		13,049
Sovereign – 0.3%
Republic of Korea, 5.75%, 4/16/14		6,000		6,159
Telecommunications – 0.5%
Vodafone Group PLC, 0.90%, 2/19/16		12,500		12,478
Total Foreign Issuer Bonds
(Cost $369,103)				370,899
MUNICIPAL BONDS – 60.0%
Alabama – 0.1%
Alabama State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/1/16		3,000		3,364
Alaska – 0.3%
Alaska State G.O. Unlimited Bonds, Series A, 2.75%, 8/1/14		2,505		2,559

See Notes to the Financial Statements.

FIXED INCOME FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Alaska – 0.3% – continued
Alaska State Housing Finance Corp. Mortgage Revenue Bonds, Series B-1 (G.O. of Corp. Insured), 0.80%, 12/1/13		$2,235		$2,236
Alaska State Housing Finance Corp. Revenue Bonds, Series A, State Capital Project (G.O. of Corp. Insured), 5.00%, 12/1/15		1,000		1,094
Valdez Marine Terminal Revenue Refunding Bonds, Series B, BP Pipelines Project, 5.00%, 1/1/14		2,000		2,023
				7,912
Arizona – 0.1%
Arizona State University Energy Management LLC Revenue Refunding Bonds, State University Project-Tempe, 5.00%, 7/1/14		1,500		1,552
Salt River Project Agricultural Improvement & Power District Electric Revenue Refunding Bonds, Series A, 3.00%, 12/1/13		1,000		1,005
				2,557
Arkansas – 0.2%
Arkansas State Federal Highway Grant Anticipation G.O. Unlimited Bonds, 5.00%, 4/1/15		2,600		2,782
North Little Rock School District No. 1 Construction G.O. Limited Bonds, Series B (State Aid Withholding), 5.00%, 2/1/16		1,785		1,953
				4,735
California – 5.7%
Beverly Hills Public Financing Authority Lease Revenue Refunding Bonds, Series A, Project of 2003, 3.00%, 6/1/15		2,985		3,121
Burbank Redevelopment Agency Tax Allocation Golden Bonds (FGIC Insured), Prerefunded, 5.63%, 12/1/13		1,000		1,009
California State Department of Water Supply Resources Revenue Bonds, Series L, 5.00%, 5/1/14		1,000		1,028
California State Department of Water Supply Resources Revenue Bonds, Series M, 5.00%, 5/1/14		6,300		6,476

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
California – 5.7% – continued
5.00%, 5/1/15		$5,650		$6,071
California State Floating G.O. Unlimited Refunding Bonds, Series A, 0.74%, Mandatory Put 5/1/15		2,500		2,509
California State G.O. Unlimited Refunding Bonds, 5.00%, 2/1/15		5,000		5,315
California State G.O. Unlimited Refunding Bonds, Series B, 5.00%, 9/1/16		5,635		6,334
California State Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, Series B2, J Paul Getty Trust, 0.36%, Mandatory Put 4/1/15		10,000		9,994
California State Public Works Board Lease Revenue Bonds, Series A, Various Capital Projects, 3.00%, 10/1/13		2,180		2,180
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 9/1/15		3,000		3,264
5.00%, 9/1/16		7,435		8,358
California State Various Purpose G.O. Unlimited Refunding Bonds, 4.00%, 2/1/16		10,500		11,336
California Statewide Communities Development Authority Student Housing Revenue Bonds, UCI East Apartments Irvine LLC, Prerefunded, 5.63%, 5/15/15		4,000		4,344
Contra Costa Transportation Authority Sales Tax Revenue Refunding Bonds, 0.49%, Mandatory Put 12/15/15		4,500		4,487
Los Angeles Solid Waste Resource Revenue Bonds, Series A, 5.00%, 2/1/16		700		773
Los Angeles Solid Waste Resource Revenue Refunding Bonds, Series B, 5.00%, 2/1/16		10,000		11,035
Los Angeles Unified School District G.O. Unlimited Bonds, Series I, 5.00%, 7/1/14		3,000		3,109
Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 6/1/15		5,500		5,924

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 65 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
California – 5.7% – continued
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series A2, 0.21%, Mandatory Put 5/1/15		$8,850		$8,835
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series C, 4.00%, 10/1/15		3,000		3,221
San Francisco City & County Public Utilities Commission Revenue Refunding Bonds, Series A, 3.00%, 10/1/15		3,000		3,160
4.00%, 10/1/15		2,000		2,146
San Francisco City & County Road Repaving & Street Safety G.O. Unlimited Bonds, Series C, 5.00%, 6/15/15		2,000		2,162
University of California General Revenue Bonds, Series AF, 5.00%, 5/15/15		10,000		10,777
Vale Verde Unified School District G.O. Unlimited TRANS, 2.00%, 10/1/13		3,200		3,200
				130,168
Colorado – 1.6%
Colorado State Board of Governors University Enterprise System Revenue Refunding Bonds, Series A (State Higher Education Intercept Program), 3.00%, 3/1/16		1,100		1,161
Denver City & County Airport Revenue Bonds, Series B (AMT), 4.00%, 11/15/13		5,165		5,189
Denver City & County G.O. Unlimited Refunding Bonds, Series A, Better Denver, 5.00%, 8/1/15		6,780		7,358
5.00%, 8/1/16		15,000		16,843
Longmont Sales & Use Tax Revenue Refunding Bonds, Series A, Open Space, 2.00%, 11/15/13		1,070		1,072
Platte River Power Authority Revenue Bonds, Series II, 4.00%, 6/1/14		4,000		4,101
				35,724

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Connecticut – 1.8%
Connecticut State Development Authority PCR Bonds, Series A (AMT), Connecticut Light & Power Project, 1.55%, Mandatory Put 4/1/15		$11,500		$11,616
Connecticut State G.O. Unlimited Bonds, Series A, Sifma Index, 0.36%, 5/15/14		4,000		3,996
0.29%, 3/1/16		1,000		991
0.48%, 3/1/18		1,000		987
Connecticut State G.O. Unlimited Bonds, Series C (NATL Insured), 5.00%, 4/1/14		925		947
Connecticut State G.O. Unlimited Bonds, Series D, Sifma Index, 0.75%, 8/15/18		1,500		1,496
Connecticut State G.O. Unlimited Refunding Bonds, 5.00%, 3/15/15		4,000		4,270
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series A-4, Yale University, 5.00%, Mandatory Put 2/12/15		6,810		7,246
Connecticut State Special Tax Obligation Transportation Revenue Refunding Bonds, Series B, 5.00%, 12/1/14		2,760		2,915
Connecticut State Variable G.O. Unlimited Bonds, Series D, 0.35%, 9/15/15		4,000		3,999
University of Connecticut Revenue Bonds, Series A, 4.00%, 8/15/15		2,000		2,135
				40,598
Delaware – 0.1%
University of Delaware Variable Revenue Bonds, Series C, 0.70%, Mandatory Put 5/1/16		2,000		1,988
District of Columbia – 1.2%
District of Columbia Income Tax Secured Adjustable Revenue Refunding Bonds, Series E, 0.41%, 12/1/13		4,050		4,050
District of Columbia Income Tax Secured Revenue Refunding Bonds, Series B, 0.36%, 12/1/13		1,955		1,955
District of Columbia Income Tax Secured Revenue Refunding Bonds, Series E, 0.66%, 12/1/15		16,775		16,827

See Notes to the Financial Statements.

FIXED INCOME FUNDS 66 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
District of Columbia – 1.2% – continued
Metropolitan Washington D.C. Airports Authority System Revenue Bonds, Series C (AMT), 3.00%, 10/1/13		$1,500		$1,500
Metropolitan Washington D.C. Airports Authority System Revenue Refunding Bonds, Series A (AMT) (AMBAC Insured), 5.00%, 10/1/14		3,500		3,664
				27,996
Florida – 3.7%
Citizens Property Insurance Corp. Adjustable Personal & Commercial Lines Revenue Bonds, Series S, 1.31%, 6/1/15		20,000		20,215
Citizens Property Insurance Corp. High Risk Revenue Bonds, Series A1, Senior Secured, 5.50%, 6/1/14		1,000		1,034
5.00%, 6/1/15		3,450		3,687
5.00%, 6/1/16		2,000		2,201
Citizens Property Insurance Corp. Revenue Bonds, Series A-3, Floating Senior Secured Coastal Notes (AGM Insured), 1.71%, 6/1/14		5,000		5,042
Florida State Board of Education G.O. Unlimited Refunding Bonds, Series B (State Gtd.), 5.00%, 1/1/15		2,000		2,119
Florida State Board of Education Lottery Revenue Refunding Bonds, Series A, 5.00%, 7/1/14		7,000		7,253
Florida State Board of Governors University of Central Florida Parking Facility Revenue Refunding Bonds, Series A, 5.00%, 7/1/14		1,235		1,277
Florida State Board of Governors University System Improvement Revenue Refunding Bonds, Series A, 5.00%, 7/1/15		1,000		1,080
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series A, Capital Outlay, 5.00%, 6/1/14		5,210		5,379
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series C (State Gtd.), 5.00%, 6/1/14		4,000		4,130

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Florida – 3.7% – continued
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series C, Capital Outlay, 5.00%, 6/1/15		$4,880		$5,259
Florida State Department of Environmental Protection Preservation Revenue Refunding Bonds, Series A, Florida Forever, 5.00%, 7/1/14		3,000		3,107
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 5.00%, 7/1/15		3,285		3,532
5.00%, 7/1/16		1,450		1,608
Jacksonville Special Revenue Refunding Bonds, Series C, 5.00%, 10/1/15		1,000		1,089
Jea Electric System Revenue Bonds, Subseries B, 5.00%, 10/1/14		1,000		1,047
5.00%, 10/1/15		900		980
Jea St. Johns River Power Park System Revenue Refunding Bonds, Issue Two Series 25, 4.00%, 10/1/14		13,500		14,002
Okeechobee County Solid Waste Disposal Management Landfill Variable Revenue Bonds, Series A, 2.25%, Mandatory Put 7/1/16		1,250		1,258
				85,299
Georgia – 1.1%
Albany Sales Tax G.O. Unlimited Bonds, 2.00%, 6/1/15		1,300		1,333
Atlanta Water & Wastewater Revenue Refunding Bonds, Series B, 5.00%, 11/1/15		3,000		3,282
Columbia County School District G.O. Unlimited Bonds (State Aid Withholding), 5.00%, 4/1/16		1,800		1,998
Floyd County Development Authority Revenue Bonds, Power Company Plant Hammond, 0.85%, Mandatory Put 11/19/15		3,000		2,999
Georgia State G.O. Unlimited Bonds, Series B, 5.00%, 10/1/14		4,000		4,193
Gwinnett County School District Sales Tax G.O. Unlimited Bonds, Series A, 4.00%, 10/1/14		6,500		6,748

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 67 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Georgia – 1.1% – continued
Henry County School District G.O. Unlimited Bonds (State Aid Withholding), 2.00%, 12/1/14		$1,000		$1,020
Municipal Electric Authority of Georgia Revenue Bonds, Series A, Combined Cycle Project, 4.00%, 11/1/14		1,000		1,040
Private Colleges & Universities Authority Revenue Bonds, Series A, Emory University, 4.00%, 10/1/15		1,390		1,489
				24,102
Hawaii – 0.5%
Hawaii State Airports System Revenue Refunding Bonds (AMT), 5.00%, 7/1/14		1,335		1,381
Hawaii State G.O. Unlimited Refunding Bonds, Series EC, 5.00%, 12/1/13		3,000		3,025
Hawaii State Housing Finance & Development Corp. Multi Family Revenue Bonds, Series A, Halekauwila Place, 0.70%, 12/1/15		6,000		5,999
Maui County G.O. Unlimited Refunding Bonds, 3.00%, 6/1/14		1,400		1,426
				11,831
Idaho – 0.5%
Idaho Housing & Finance Association Unemployment Compensation Revenue Bonds, 4.00%, 8/15/14		10,000		10,326
Illinois – 0.2%
Chicago O’Hare International Airport Revenue Refunding Bonds, Series B (AMT), Passenger Facility Charge, 5.00%, 1/1/14		1,650		1,669
5.00%, 1/1/15		1,250		1,317
Illinois State Unemployment Insurance Fund Building Reciepts Revenue Bonds, Series A, 5.00%, 6/15/14		1,500		1,550
				4,536

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% — continued
Iowa – 0.4%
Ankeny G.O. Unlimited Bond Anticipation Project Notes, Series C, 1.00%, 6/1/14		$7,450		$7,454
Des Moines Waterworks Revenue Refunding Bonds, Series B, 3.00%, 12/1/14		1,000		1,031
Johnston G.O. Unlimited Refunding Bonds, Series A, 4.00%, 6/1/15		1,225		1,298
				9,783
Kansas – 0.0%
Overland Park Internal Improvement G.O. Unlimited Bonds, 4.00%, 9/1/14		770		797
Kentucky – 0.1%
Kentucky State Asset Liability Commission General Receipts Revenue Bonds, Series A, University Project Notes (AMBAC Insured), 5.00%, 10/1/15		2,215		2,416
Louisiana – 1.0%
Louisiana State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 7/15/15		1,000		1,083
Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series B2, Second Lien, 0.68%, Mandatory Put 5/1/18		20,000		19,784
Louisiana State Offshore Terminal Authority Deepwater Port Variable Revenue Bonds, Series B-1, Loop LLC Project, 1.88%, Mandatory Put 10/1/40		3,000		3,000
				23,867
Maine – 0.1%
South Portland G.O. Unlimited Bonds, 4.00%, 7/15/14		1,500		1,544
Maryland – 2.1%
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series A, 3.00%, 3/15/15		1,000		1,040
Maryland State & Local Facilities Loan of 2013 G.O. Unlimited Bonds, First Series, 5.00%, 3/1/16		4,000		4,431
Maryland State Department of Transportation Revenue Bonds, 4.00%, 2/15/16		4,855		5,252

See Notes to the Financial Statements.

FIXED INCOME FUNDS 68 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Maryland – 2.1% – continued
Maryland State Health & Higher Educational Facilities Authority Variable Revenue Bonds, Series A, Johns Hopkins Health System, 0.72%, Mandatory Put 5/15/18		$15,100		$14,805
Maryland State Health & Higher Educational Facilities Authority Variable Revenue Bonds, Series B, Johns Hopkins Health System, 0.70%, Mandatory Put 5/15/18		11,000		10,776
Maryland State Housing & Community Development Administration Department Variable Revenue Bonds, Series B, 1.01%, Mandatory Put 3/1/16		1,100		1,107
Montgomery County G.O. Unlimited Bonds, Series A, 5.00%, 7/1/14		1,800		1,865
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, Series A, 5.00%, 9/15/14		2,935		3,070
Prince Georges County Consolidated Public Improvement G.O. Limited Refunding Bonds, Series B, 5.00%, 9/15/14		2,800		2,929
University System of Maryland Auxilary Facility & Tuition Revenue Refunding Bonds, Series A, 3.00%, 4/1/14		3,400		3,449
				48,724
Massachusetts – 2.0%
Boston G.O. Unlimited Refunding Bonds, Series C, 5.00%, 8/1/14		1,050		1,092
Cambridge Municipal Purpose Loan G.O. Limited Bonds, 2.00%, 2/15/15		3,175		3,251
Massachusetts Development Finance Agency Revenue Bonds, Series P, TUFTS University, 3.00%, Mandatory Put 2/16/16		1,000		1,057
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D, 4.00%, 10/1/13		4,000		4,000
Massachusetts State Development Finance Agency Variable Revenue Bonds, Series U-1, Boston University, 0.64%, Mandatory Put 3/30/17		5,000		4,993

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Massachusetts – 2.0% – continued
Massachusetts State Development Finance Agency Variable Revenue Bonds, Series U-6E, Boston University, 0.61%, Mandatory Put 9/30/16		$5,000		$4,972
Massachusetts State G.O. Limited Refunding Bonds, Series A, Sifma Index, 0.25%, 2/1/15		7,000		7,003
Massachusetts State Housing Finance Agency Revenue Bonds, Series C, Construction Loan Notes, 0.95%, 12/1/15		5,000		5,001
Massachusetts State Housing Finance Agency Revenue Bonds, Series F, Construction Loan Notes (G.O. of Agency Insured), 0.65%, 12/1/14		3,500		3,501
Massachusetts State School Building Authority Sales Tax Revenue Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 8/15/15		2,325		2,527
Nantucket G.O. Limited Refunding Bonds, 2.00%, 10/1/15		1,035		1,068
Springfield State Qualified Municipal Purpose Loan G.O. Limited Bonds (AGM Insured State Aid Withholding), 5.75%, 8/1/14		1,025		1,072
University of Massachusetts Building Authority Revenue Refunding Bonds, Senior Series 2 (AMBAC Insured), 4.00%, 11/1/15		5,000		5,347
				44,884
Michigan – 1.4%
Michigan State Finance Authority Revenue Bonds, Series A, Unemployment Obligation Assessment, 5.00%, 7/1/14		10,000		10,362
Michigan State Finance Authority Revenue Refunding Bonds, Clean Water Subordinate State Revolving Fund, 5.00%, 10/1/15		1,650		1,798
Michigan State Finance Authority Revenue Refunding Bonds, Drinking Water Subordinate State Revolving Fund, 5.00%, 10/1/15		2,275		2,479
Michigan State G.O. Unlimited Refunding Bonds, 5.50%, 12/1/15		1,075		1,187

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 69 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Michigan – 1.4% – continued
Michigan State Hospital Finance Authority Variable Revenue Bonds, Ascension Health Care Group, 0.90%, Mandatory Put 3/16/15		$3,815		$3,832
Saline Area Schools Variable G.O. Unlimited Refunding Bonds (Q-SBLF Insured), 0.61%, Mandatory Put 11/2/15		12,900		12,974
				32,632
Minnesota – 0.7%
Chaska Independent School District No. 112 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program), 2.00%, 2/1/15		1,595		1,630
Duluth EDA Health Care Facilities Revenue Bonds, Benedictine Health Systems St. Marys, Prerefunded, 5.25%, 2/15/14		1,000		1,019
Hennepin County Senior Sales Tax G.O. Unlimited Bonds, Series E, 4.00%, 12/15/13		3,045		3,069
Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B, 5.00%, 8/1/14		5,500		5,722
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		1,741
Ramsey County Capital Improvement G.O. Unlimited Refunding Bonds, Series B, 4.00%, 2/1/14		3,000		3,038
				16,219
Mississippi – 0.2%
Mississippi State Business Finance Corp. Solid Waste Disposal Variable Revenue Bonds, Waste Management, Inc. Project, 2.25%, Mandatory Put 11/3/14		4,600		4,620
Municipal States Pooled Securities – 0.5%
BB&T Municipal Trust Variable Revenue Bonds, Series B, Sifma Index (Rabobank Nederland LOC), 0.93%, 8/1/14 (1)(2)		1,762		1,761

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Municipal States Pooled Securities – 0.5% – continued
BB&T Municipal Trust Variable Revenue Bonds, Series C (Rabobank Nederland LOC), 0.56%, 12/1/15		$10,000		$9,987
				11,748
Nebraska – 0.4%
Nebraska State Public Power District General Revenue Bonds, Series B-1 (NATL Insured), 5.00%, 1/1/14		2,500		2,530
Washington County Wastewater Solid Waste Disposal Facilities Variable Revenue Refunding Bonds (AMT), Cargill, Inc. Projects, 1.38%, Mandatory Put 9/1/15		5,830		5,853
				8,383
Nevada – 1.1%
Clark County Airport System Revenue Bonds, Series C1 (AMT), Junior Sub Lien, 2.50%, 7/1/15		7,750		7,975
Clark County Highway Improvement Motor Vehicle Fuel Tax Revenue Refunding Bonds, 5.00%, 7/1/14		3,000		3,105
Clark County School District G.O. Limited Refunding Bonds, Series A (AMBAC Insured), 4.00%, 6/15/16		7,200		7,794
Washoe County School Building District G.O. Limited Refunding Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 6/1/15		5,355		5,767
				24,641
New Hampshire – 0.1%
New Hampshire State G.O. Unlimited Refunding Bonds, Series B, 4.00%, 6/1/14		1,500		1,538
New Jersey – 4.4%
Monmouth County Improvement Authority Revenue Refunding Bonds, Government Pooled Loan (County & Municipal Government Gtd.), 4.00%, 12/1/14		1,000		1,044
New Jersey Environmental Infrastructure Trust Revenue Bonds, 3.00%, 9/1/14		1,000		1,026

See Notes to the Financial Statements.

FIXED INCOME FUNDS 70 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
New Jersey – 4.4% – continued
New Jersey State EDA Cigarette TRB, Prerefunded, 5.75%, 6/15/14		$8,500		$8,832
New Jersey State EDA Revenue Bonds, Series O, School Facilities Construction, Prerefunded, 5.13%, 3/1/15		24,455		26,128
5.25%, 3/1/15		11,240		12,028
New Jersey State EDA School Facilities Construction Revenue Notes, Series G, Sifma Index, 0.64%, 2/1/15		3,000		3,001
New Jersey State Educational Facilities Authority Revenue Bonds, Series B, Princeton University, 5.00%, 7/1/14		4,000		4,145
New Jersey State Housing & Mortgage Finance Agency Revenue Bonds, Series 4 (AMT), 0.90%, 5/1/15		15,645		15,647
New Jersey State Transportation Program Trust Fund Authority Revenue Bonds, Series AA, 4.00%, 6/15/14		3,000		3,080
4.00%, 6/15/15		6,000		6,360
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A, 4.00%, 12/15/15		1,550		1,666
5.00%, 12/15/15		1,435		1,574
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, 5.00%, 6/15/14		2,000		2,068
New Jersey State Turnpike Authority Revenue Bonds, Series D, 0.74%, Mandatory Put 1/1/18		3,200		3,169
New Jersey State Turnpike Authority Variable Revenue Bonds, Series B, 0.81%, Mandatory Put 12/22/14 (1)(2)		9,000		9,015
Newark G.O. Unlimited Qualified General Improvement Refunding Bonds, Series A (State Aid Withholding), 4.00%, 7/15/14		1,905		1,959
				100,742

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
New York – 7.6%
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		$1,218
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Subseries B-2, 3.00%, 11/1/14		2,000		2,058
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Refunding Bonds, Series A, 4.00%, 11/15/14		1,500		1,562
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Refunding Bonds, Subseries B-3A, 0.29%, Mandatory Put 11/1/14		3,600		3,594
Metropolitan Transportation Authority Revenue Bonds, Series B, 3.00%, 11/15/14		1,250		1,288
Metropolitan Transportation Authority Revenue Bonds, Series B-1, 5.00%, 11/15/14		3,210		3,377
Metropolitan Transportation Authority Revenue Refunding Bonds, Series F, 5.00%, 11/15/14		24,000		25,248
New York City G.O. Unlimited Bonds, Series E, 5.00%, 8/1/16 (3)		1,220		1,367
New York City G.O. Unlimited Bonds, Series B, 3.00%, 8/1/15		2,000		2,096
New York City G.O. Unlimited Bonds, Series F2, 4.00%, 12/15/13		10,000		10,040
New York City G.O. Unlimited Bonds, Series H, 2.00%, 8/1/15		2,500		2,574
New York City G.O. Unlimited Refunding Bonds, Series B, 4.00%, 8/1/16		7,000		7,647
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E, 5.00%, 11/1/14		14,865		15,644

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 71 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
New York – 7.6% – continued
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series C, Escrowed to Maturity, 5.00%, 11/1/13		$60		$60
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series C, Unrefunded Balance, 5.00%, 11/1/13		2,940		2,952
New York City Trust for Cultural Resources Revenue Bonds, Julliard School, 2.10%, Mandatory Put 7/1/15		3,500		3,600
New York Fiscal 2008 G.O. Unlimited Bonds, Series A-1, 5.00%, 8/1/15		3,000		3,254
New York State Dormitory Authority Personal Income TRB, Series B, 5.00%, 3/15/15		6,000		6,416
New York State Dormitory Authority Supported Debt Revenue Bonds, Series A, State University Dormitory Facilities, 4.00%, 7/1/15		1,700		1,805
New York State G.O. Unlimited Bonds, Series A, 5.00%, 3/1/16		10,000		11,096
New York State Housing Finance Agency Affordable Housing Revenue Bonds, Series 4, 1.20%, 11/1/14		2,040		2,053
New York State Mortgage Agency Homeowner Revenue Bonds, Series 164, 1.00%, 4/1/14		2,000		2,004
New York State Thruway Authority General Revenue Bonds, Second Series B (NATL Insured), 5.00%, 4/1/16		10,095		11,009
New York State Thruway Authority Local Highway & Bridge Revenue Bonds, Series A, 4.00%, 4/1/14		2,500		2,548
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		4,182
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		10,494

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
New York – 7.6% – continued
Suffolk County Water Authority Revenue BANS, Series A, 4.00%, 1/15/16		$11,500		$12,408
Suffolk County Water Authority Revenue BANS, Series B, 3.00%, 1/15/15		10,000		10,346
Suffolk County Water Authority Variable Revenue BANS, Series B, 0.46%, 4/1/14		11,350		11,361
				173,301
North Carolina – 2.9%
Charlotte COPS, Series A, 5.00%, 12/1/14		3,000		3,165
Charlotte G.O. Unlimited Refunding Bonds, Series B, 5.00%, 7/1/15		2,225		2,407
Mecklenburg County COPS, Series A, 0.43%, Mandatory Put 2/1/16		10,000		9,968
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 10/1/13		7,200		7,201
5.00%, 10/1/14		3,500		3,669
North Carolina State Capital Improvement Obligation Revenue Bonds, Series C, 5.00%, 5/1/14		5,000		5,141
North Carolina State G.O. Unlimited Refunding Bonds, Series C, 3.50%, 5/1/15		4,000		4,203
North Carolina State G.O. Unlimited Refunding Bonds, Series D, 3.00%, 6/1/15		2,575		2,690
North Carolina State G.O. Unlimited Refunding Bonds, Series E, 5.00%, 5/1/15		16,075		17,272
North Carolina State Limited Obligation Revenue Bonds Series A, 5.00%, 5/1/15		6,000		6,443
North Carolina State University at Raleigh General Revenue Refunding Bonds, 3.00%, 10/1/14		1,500		1,542
Wake County Public Improvement Non Ace G.O. Unlimited Bonds, 4.00%, 3/1/14		1,000		1,016

See Notes to the Financial Statements.

FIXED INCOME FUNDS 72 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
North Carolina – 2.9% – continued
Winston Salem Limited Obligation Revenue Bonds, Series A (County Gtd.), 4.00%, 3/1/15		$1,500		$1,577
				66,294
Ohio – 2.5%
Columbus City G.O. Unlimited Bonds, Series A, 3.00%, 2/15/15		17,000		17,641
Columbus City G.O. Unlimited Refunding Bonds, Series 2012-3, 4.00%, 8/15/15		8,485		9,064
Columbus City G.O. Unlimited Refunding Bonds, Series A, 5.00%, 2/15/16		12,915		14,275
Franklin County Various Purpose G.O. Limited Tax Bonds, 3.00%, 12/1/15		1,500		1,582
Ohio State Higher Educational Facility Commission Revenue Bonds, Series A-2, Cleveland Clinic Health System Obligation, 0.53%, 1/1/18		2,000		2,001
Ohio State Housing Finance Agency Revenue Notes, Maple Park Place Apartments Project, 0.60%, 12/1/14		2,600		2,602
Ohio State Infrastructure Improvement G.O. Unlimited Refunding Bonds, Series B, 5.00%, 8/1/14		2,500		2,600
Ohio State Water Development Authority PCR Bonds, Series 2012, Various Loan Fund Notes, 0.46%, Mandatory Put 7/15/15		5,500		5,500
Ohio State Water Development Authority Solid Waste Diposal Variable Revenue Bonds, Waste Management Project, 2.25%, Mandatory Put 7/1/16		1,500		1,510
Ohio State Water Quality Development Authority PCR Bonds, Series F, Prerefunded, 5.00%, 6/1/15		1,000		1,077
				57,852
Oklahoma – 0.2%
Oklahoma City G.O. Unlimited Refunding Bonds, 4.00%, 3/1/14		3,000		3,048

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Oklahoma – 0.2% – continued
Oklahoma County Independent School District No. 12 Edmond Combined Purpose G.O. Unlimited Bonds, 2.50%, 3/1/15		$700		$720
				3,768
Oregon – 0.7%
Metro G.O. Limited Refunding Bonds, Series B, 4.00%, 6/1/14		5,500		5,640
Port of Portland International Airport Revenue Refunding Bonds, Series B (AMT), 5.00%, 7/1/15		1,550		1,668
Portland G.O. Limited Tax Revenue Refunding Bonds, Series B, Police Training, 3.00%, 6/1/14		3,000		3,056
Portland G.O. Limited TRB, Milwaukie, 3.00%, 9/1/14		1,000		1,026
4.00%, 9/1/15		1,350		1,442
Portland G.O. Unlimited Bonds, Series A, Public Safety Project, 4.00%, 6/1/14		1,485		1,522
Tri-County Metropolitan Transportation District Revenue Bonds, Series A, 3.00%, 9/1/14		1,190		1,221
				15,575
Pennsylvania – 2.5%
Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Revenue Bonds, Series A, Waste Management Project, 3.70%, Mandatory Put 5/1/15		1,500		1,541
Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Revenue Bonds, Waste Management Project, 1.75%, Mandatory Put 12/1/15		3,000		2,987
Pennsylvania State Economic Development Financing Authority Unemployment Compensation Revenue Bonds, Series A, 4.00%, 7/1/14		16,590		17,070
5.00%, 7/1/15		4,000		4,328
Pennsylvania State G.O. Unlimited Bonds, Second Series, 5.00%, 1/1/15		1,890		2,002
Pennsylvania State G.O. Unlimited Bonds, Third Series (AGM Insured), 5.00%, 9/1/14		10,000		10,444

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 73 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA -SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Pennsylvania – 2.5% – continued
Pennsylvania State G.O. Unlimited Refunding & Projects Bonds, First Series (NATL-RE Insured), 5.25%, 2/1/14		$3,000		$3,052
Pennsylvania State G.O. Unlimited Refunding Bonds, First Series, 5.00%, 7/1/14		1,700		1,762
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, First Series, Temple University, 3.00%, 4/1/14		1,000		1,014
Pennsylvania State Housing Finance Agency SFM Revenue Bonds, Series 114A (AMT), 0.80%, 4/1/14		750		751
1.05%, 4/1/15		625		625
Pennsylvania Turnpike Commission Variable Revenue Bonds, Series B, 0.46%, 12/1/15		6,000		6,005
Philadelphia G.O. Unlimited Bonds, Series A, 5.00%, 7/15/15		2,070		2,225
5.00%, 7/15/16		1,000		1,108
State Public School Building Authority Lease Revenue Bonds, School District of Philadelphia Project (State Intercept Program), 5.00%, 4/1/15		1,000		1,065
				55,979
South Carolina – 0.2%
Lexington & Richland School District No. 5 G.O. Unlimited Bonds, Series B (SCSDE Insured), 4.00%, 3/1/14		1,015		1,031
4.00%, 3/1/15		3,555		3,738
				4,769
Tennessee – 0.7%
Knox County G.O. Unlimited Bonds, 4.00%, 4/1/14		5,500		5,604
Knoxville G.O. Unlimited Bonds, 2.00%, 5/1/14		2,000		2,022
4.00%, 5/1/15		3,245		3,434
Rutherford County G.O. Unlimited Bonds, 3.00%, 4/1/14		2,315		2,348

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Tennessee – 0.7% – continued
Tennessee State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/13		$2,000		$2,000
				15,408
Texas – 5.0%
Austin Public Property Finance Contractual G.O. Limited Bonds, 3.00%, 5/1/15		1,845		1,924
Dallas County G.O. Limited Tax Notes, 3.00%, 2/15/16		4,000		4,215
Dallas G.O. Limited Refunding Bonds, Series C, Prerefunded, Escrowed to Maturity, 4.00%, 2/15/15		10		11
Dallas G.O. Limited Refunding Bonds, Series C, Unrefunded Balance, 4.00%, 2/15/15		2,875		3,021
Fort Bend Independent School District G.O. Unlimited Refunding Bonds, 3.50%, 2/15/15		1,000		1,043
Harris County G.O. Limited Refunding Bonds, Series A, 4.00%, 10/1/14		4,500		4,673
Harris County Metropolitan Transit Authority Sales & Use TRB, Series B, Contractual Obligations, 4.00%, 11/1/13		2,195		2,202
Harris County Road G.O. Unlimited Refunding Bonds, Series A, 3.00%, 10/1/13		1,000		1,000
Houston Higher Education Finance Corp. Variable Revenue Refunding Bonds, Series B, Rice University, 0.59%, Mandatory Put 11/16/17		38,500		38,514
Houston Independent School District House G.O. Limited Tax Bonds, Series B (PSF-Gtd.), 1.50%, Mandatory Put 6/1/15		10,000		10,136
Houston Independent School District Variable G.O. Limited Tax Refunding Bonds (PSF-Gtd.), 0.88%, Mandatory Put 6/1/16		16,100		16,129
Houston Utility System Combined Revenue Refunding Bonds, Series E, First Lien, 5.00%, 11/15/13		2,000		2,012
Houston Utility System Revenue Refunding Bond, Series A, Sifma Index, 0.61%, Mandatory Put 6/1/15		2,000		1,996

See Notes to the Financial Statements.

FIXED INCOME FUNDS 74 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Texas – 5.0% – continued
Lubbock G.O. Limited Refunding Bonds (NATL-RE Insured), 4.00%, 2/15/15		$4,470		$4,691
North Texas State Municipal Water District Upper Efork Waste Water Intercept Revenue Refunding & Imrpovement Bonds, 3.00%, 6/1/15		2,000		2,087
Plano Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/15		5,000		5,326
5.00%, 2/15/15		2,190		2,333
Port Arthur Independent School Building District G.O. Unlimited Bonds (NATL Insured), Prerefunded, 5.25%, 2/15/14		1,000		1,019
Sam Rayburn Municipal Power Agency Revenue Refunding Bonds, 5.00%, 10/1/14		1,000		1,042
San Antonio Electric & Gas System Variable Revenue Refunding Bonds, Series B, Junior Lien, 2.00%, Mandatory Put 12/1/15		1,500		1,542
San Antonio General Improvement G.O. Limited Refunding Bonds, 5.00%, 2/1/16		2,600		2,871
San Antonio General Improvement G.O. Limited Bonds, 4.00%, 2/1/15		2,000		2,101
University of Texas Financing System Revenue Refunding Bonds, Series A, 4.00%, 8/15/14		4,500		4,652
				114,540
Utah – 0.6%
Davis County School District G.O. Unlimited Refunding Bonds, Series C (School Board Guaranty Insured), 4.00%, 6/1/15		6,965		7,374
Intermountain Power Agency Power Supply Revenue Refunding Bonds, Subseries A, 3.00%, 7/1/15		4,000		4,180
Utah State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 7/1/14		1,000		1,036
				12,590

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Virginia – 2.6%
Charles City & County IDA Solid Waste Disposal Facility Adjustable Revenue Bonds (AMT), Waste Management, Inc. Project, 1.88%, Mandatory Put 4/1/15		$750		$750
Fairfax County Public Improvement G.O. Unlimited Bonds, Series A, (State Aid Withholding), 3.00%, 10/1/14		9,270		9,531
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A, 4.00%, 12/1/13		2,590		2,607
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), 5.00%, 12/1/14		2,000		2,112
Louisa IDA PCR Bonds, Series C, Virginia Electric & Power Co. Project, 1.50%, Mandatory Put 12/1/14		2,000		2,013
Norfolk Capital Improvement G.O. Unlimited Bonds, Series C, 5.00%, 4/1/16		1,405		1,558
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Prerefunded, 5.63%, 6/1/15		2,550		2,771
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series 2, Public Higher Educational Financing Authority (State Intercept Program), 5.00%, 9/1/15		3,105		3,378
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series A, 21st Century College & Equipment, 5.00%, 2/1/15		7,000		7,440
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series B, Public Higher Educational Financing Program (State Intercept Program), 5.00%, 9/1/15		1,000		1,088
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects, 4.00%, 5/15/14		5,000		5,120
Virginia State Commonwealth Transportation Board Revenue Refunding Bonds, Contract Route 28 Project, 3.00%, 4/1/14		1,500		1,521

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 75 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Virginia – 2.6% – continued
Virginia State Housing Development Authority Commonwealth Mortgage Revenue Bonds, Subseries A-2 (AMT) (G.O. of Authority Insured), 4.30%, 4/1/15		$4,000		$4,052
4.40%, 4/1/16		3,200		3,266
Virginia State Public School Authority Revenue Bonds, 5.00%, 4/15/15		8,035		8,612
Virginia State Public School Authority Revenue Refunding Bonds, Series B, School Financing 1997 Resolution, 5.25%, 8/1/14		1,000		1,043
Virginia State Public School Authority Special Obligation Prince William Revenue Bonds (State Aid Withholding), 5.00%, 7/15/15		3,285		3,559
				60,421
Washington – 2.1%
King County School District No. 412 Shoreline G.O. Unlimited Bonds (School Board Guaranty Insured), 3.00%, 12/1/13		1,000		1,005
Pierce County School District No. 10 Tacoma G.O. Unlimited BANS, 2.00%, 12/1/14		20,000		20,384
Port of Seattle Intermediate Revenue Refunding Bonds, Series B (AMT), 3.00%, 8/1/14		1,000		1,023
Seattle G.O. Unlimited Refunding Bonds, 3.00%, 12/1/13		1,000		1,005
Snohomish County G.O. Limited Refunding Bonds, Series A, 5.00%, 12/1/13		2,000		2,016
Tacoma Electric System Revenue Refunding Bonds, Series A, 5.00%, 1/1/16		1,750		1,920
University of Washington General Revenue Refunding Bonds, Series A, 4.00%, 10/1/13		1,000		1,000
Washington State G.O. Unlimited Bonds, Series E, 5.00%, 2/1/15		5,320		5,654
5.00%, 2/1/16		5,000		5,514
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Bonds, Series B (AGM Insured), Prerefunded, 5.00%, 7/1/15		5,010		5,416

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 60.0% – continued
Washington – 2.1% – continued
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Refunding Bonds, 5.00%, 7/1/15		$2,500		$2,702
				47,639
West Virginia – 0.1%
Marshall County Board of Education Public School G.O. Unlimited Bonds (NATL-RE Insured), 4.50%, 5/1/15		1,000		1,063
West Virginia State University Projects Revenue Bonds, Series B, 4.00%, 10/1/13		1,000		1,000
				2,063
Wisconsin – 0.6%
Madison G.O. Unlimited Promissory Notes, Series A, 5.00%, 10/1/14		4,300		4,507
Madison G.O. Unlimited Promissory Notes, Series E, 4.00%, 10/1/13		2,150		2,150
Northeast Wisconsin Technical College District G.O. Unlimited Promissory Notes, Series B, 2.00%, 4/1/15		1,100		1,126
Wisconsin State G.O. Unlimited Bonds, Series C, Prerefunded, 5.00%, 5/1/14		4,790		4,923
				12,706
Wyoming – 0.1%
Wyoming State Community Development Authority Housing Revenue Bonds, Series 1 (AMT), 4.40%, 12/1/15		2,025		2,112
Total Municipal Bonds
(Cost $1,367,407)				1,368,691
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 0.9%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (4)(5)		19,608,380		$19,608
Total Investment Companies
(Cost $19,608)				19,608

See Notes to the Financial Statements.

FIXED INCOME FUNDS 76 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT – TERM INVESTMENTS – 6.1%
Burke County Development Authority PCR VRDB, Fifth Series, Plant Vogtle Project, 2.30%, 4/1/14		$1,000		$1,009
Burke County Development Authority PCR VRDB, Fourth Series, Georgia Power Co. Plant Vogtle Project, 1.20%, 4/1/14		2,000		2,005
California State Municipal Finance Authority Solid Waste Disposal Variable Revenue VRDB, Series A, Waste Management, Inc. Project, 2.00%, 9/2/14		1,000		1,013
California State Pollution Control Finance Authority Solid Waste Disposal Variable Revenue Refunding Bonds, Series A, (AMT) Republic Services, 0.95%, 2/3/14		8,000		8,000
California State Pollution Control Finance Authority Solid Waste Disposal Variable Revenue Refunding Bonds, Series B, Republic Services, 0.70%, 2/3/14 (1)(2)		1,000		1,000
Grand Parkway Transportation Corp. System Toll Revenue VRDB, Series C, Sub Tier Toll, 2.00%, 2/15/14		18,500		18,604
Houston Independent School District Variable G.O. Limited Tax Refunding VRDB (PSF-Gtd.), 2.00%, 6/1/14		5,000		5,060
Illinois State Finance Authority Adjustable Revenue VRDB, Subseries A, Northwestern University, 0.37%, 3/3/14		2,900		2,902
Illinois State Finance Authority Adjustable Revenue VRDB, Subseries B, Northwestern University, 1.75%, 3/3/14		7,935		7,987
Illinois State Finance Authority Adjustable Revenue VRDB, Subseries C, Northwestern University, 0.37%, 3/3/14		6,950		6,955
Indiana State Finance Authority Economic Development Revenue VRDB (AMT), Republic Services, Inc. Project, 0.85%, 12/2/13		3,000		3,000
Indiana State Health Facility Financing Authority Revenue VRDB, Series A1, Ascension Health Care Group, 1.50%, 8/1/14		5,250		5,305

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT – TERM INVESTMENTS – 6.1% – continued
Indiana State Health Facility Financing Authority Revenue VRDB, Series A6, Ascension Health Sub Credit Group, 5.00%, 6/1/14		$5,600		$5,778
Kentucky State Economic Development Finance Authority Solid Waste Disposal Revenue Refunding VRDB, Series B, Republic Services, Inc. Project, 0.60%, 12/2/13		5,750		5,750
Lowell Limited Obligation Industrial Revenue Variable Revenue VRDB (AMT), Litehouse, Inc. Project (Fifth Third Bank LOC), 0.45%, 11/7/13		1,035		1,035
Metropolitan Atlanta Rapid Transit Authority Sales Tax Variable Revenue Bonds, Series A, 0.31%, 9/1/14		26,100		26,098
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Refunding VRDB, Subseries B-3B, 0.61%, 11/1/13		4,000		4,000
Michigan State Hospital Finance Authority Revenue Refunding VRDB, Series F-3, Ascension Health, 2.63%, 6/30/14		2,100		2,138
Midlothian Independent School District G.O. Unlimited VRDB, Series B (PSF-Gtd.), 2.25%, 8/1/14		4,300		4,367
Mission Economic Development Corp. Solid Waste Disposal Variable Revenue Refunding VRDB, Republic Services, Inc., 0.60%, 1/2/14		8,000		8,000
New Jersey State EDA Solid Waste Disposal Facilities Revenue VRDB, Series A (AMT), Waste Management, Inc. Project, 5.30%, 6/1/14		3,500		3,593
Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Variable Revenue VRDB (AMT), Waste Management, Inc. Project, 2.63%, 7/1/14		2,970		2,997
Rockport PCR Refunding VRDB, Series A, Michigan Power Company Project, 6.25%, 6/2/14		2,200		2,276
Triborough Bridge & Tunnel Authority General Revenue VRDB, Subseries B1 (G.O. of Authority Insured), 5.00%, 11/15/13		7,715		7,760

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 77 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX- ADVANTAGED ULTRA -SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT – TERM INVESTMENTS – 6.1% – continued
Whiting Environmental Facilities Variable Revenue VRDB, BP Products N.A., Inc., 2.80%, 6/2/14		$2,540		$2,578
Total Short-Term Investments
(Cost $139,019)				139,210
Total Investments – 101.7%
(Cost $2,313,733)				2,319,264
Liabilities less Other Assets – (1.7)%				(37,993	)
NET ASSETS – 100.0%				$2,281,271

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $26,790,000 or 1.2% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000s)
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., 0.87%, 9/9/16		9/3/13		$5,000
BB&T Municipal Trust Variable Revenue Bonds, Series B, Sifma Index (Rabobank Nederland LOC), 0.93%, 8/1/14		7/29/11		1,762
California State Pollution Control Finance Authority Solid Waste Disposal Variable Revenue Refunding Bonds, Series B, Republic Services, 0.70%, 11/1/13		7/31/13		1,000
Credit Agricole S.A., 1.10%, 10/3/16		9/26/13		10,000
New Jersey State Turnpike Authority Variable Revenue Bonds, Series B, 0.81%, 12/22/14		5/18/12-6/12/13		9,023

(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, 2013, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $31,014,000 with net sales of approximately $11,406,000 during the six months ended September 30, 2013.

Percentages shown are based on Net Assets.

At September 30, 2013, the credit quality distribution for the Tax-Advantaged Ultra-Short Fixed Income Fund as a percentage of investments including cash was:

QUALIT Y DISTRIBUTION*	% OF INVESTMENTS
AAA		18.6%
AA		36.4
A		30.8
BBB		11.0
A1 (Short Term)		0.1
Cash Equivalents		0.8
Not Rated		2.3
Total		100.0%

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

See Notes to the Financial Statements.

FIXED INCOME FUNDS 78 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Asset-Backed Securities		$–		$20,140	(1)		$–		$20,140
Corporate Bonds		–		400,716	(1)		–		400,716
Foreign Issuer Bonds		–		370,899	(1)		–		370,899
Municipal Bonds		–		1,368,691	(1)		–		1,368,691
Investment Companies		19,608		–			–		19,608
Short-Term Investments		–		139,210			–		139,210
Total Investments		$19,608		$2,299,656			$–		$2,319,264

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 79 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 12.5%
Auto Floor Plan – 0.7%
Ford Credit Floorplan Master Owner Trust, Series 2013-3, Class A1, 0.79%, 6/15/17		$2,400		$2,405
Ford Credit Floorplan Master Owner Trust, Series 2013-5, Class A2, 0.65%, 9/15/18		3,000		3,000
GE Dealer Floorplan Master Note Trust, Series 2011-1, Class A, 0.78%, 7/20/16		2,000		2,002
Mercedes-Benz Master Owner Trust, Series 2012-BA, Class A, 0.45%, 11/15/16 (1)		1,250		1,250
				8,657
Automobile – 5.0%
Ally Auto Receivables Trust, Series 2012-5, Class A2, 0.45%, 7/15/15		1,417		1,417
Ally Auto Receivables Trust, Series 2012-SN1, Class A2, 0.51%, 12/22/14		1,159		1,159
Ally Auto Receivables Trust, Series 2013-1, Class A2, 0.46%, 10/15/15		2,500		2,499
ARI Fleet Lease Trust, Series 2013-A, Class A2, 0.70%, 12/15/15 (1)		3,000		2,997
BMW Vehicle Lease Trust, Series 2012-1, Class A2, 0.59%, 6/20/14		106		106
CarMax Auto Owner Trust, Series 2012-1, Class A2, 0.59%, 3/16/15		143		143
CarMax Auto Owner Trust, Series 2013-1, Class A2, 0.42%, 3/15/16		1,255		1,254
CarMax Auto Owner Trust, Series 2013-3, Class A2, 0.59%, 8/15/16		4,600		4,603
Enterprise Fleet Financing LLC, Series 2013-1, Class A2, 0.68%, 9/20/18 (1)		3,000		2,995
Enterprise Fleet Financing LLC, Series 2013-2, Class A2, 1.06%, 3/20/19 (1)		3,000		3,002
Ford Credit Auto Lease Trust, Series 2013-A, Class A2, 0.46%, 5/15/15		4,700		4,696

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 12.5% – continued
Automobile – 5.0% – continued
Ford Credit Auto Owner Trust, Series 2012-B, Class A2, 0.57%, 1/15/15		$79		$79
Ford Credit Auto Owner Trust, Series 2013-B, Class A2, 0.38%, 2/15/16		5,000		4,997
Harley-Davidson Motorcycle Trust, Series 2012-1, Class A2, 0.50%, 8/15/15		250		250
Honda Auto Receivables Owner Trust, Series 2012-2, Class A2, 0.56%, 11/17/14		388		388
Honda Auto Receivables Owner Trust, Series 2012-4, Class A2, 0.40%, 4/20/15		3,507		3,508
Hyundai Auto Lease Securitization Trust, Series 2013-A, Class A2, 0.51%, 9/15/15 (1)		4,882		4,881
Hyundai Auto Lease Securitization Trust, Series 2013-B, Class A2, 0.75%, 3/15/16 (1)		8,000		8,004
Hyundai Auto Receivables Trust, Series 2012-B, Class A2, 0.54%, 1/15/15		545		545
Hyundai Auto Receivables Trust, Series 2013-A, Class A2, 0.40%, 12/15/15		4,635		4,634
Hyundai Auto Receivables Trust, Series 2013-B, Class A2, 0.53%, 3/15/16		3,000		3,001
Mercedes-Benz Auto Lease Trust, Series 2013-A, Class A2, 0.49%, 6/15/15		2,500		2,500
Nissan Auto Lease Trust, Series 2012-A, Class A2A, 0.68%, 7/15/14		251		251
Nissan Auto Receivables Owner Trust, Series 2013-A, Class A2, 0.37%, 9/15/15		2,627		2,627
Porsche Innovative Lease Owner Trust, Series 2012-1, Class A2, 0.44%, 2/23/15 (1)		428		428
Toyota Auto Receivables Owner Trust, Series 2012-A, Class A2, 0.57%, 10/15/14		137		137
Volkswagen Auto Lease Trust, Series 2012-A, Class A2, 0.66%, 11/20/14		313		313

See Notes to the Financial Statements.

FIXED INCOME FUNDS 80 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 12.5% – continued
Automobile – 5.0% – continued
World Omni Auto Receivables Trust, Series 2012-A, Class A2, 0.52%, 6/15/15		$711		$711
World Omni Auto Receivables Trust, Series 2012-B, Class A2, 0.43%, 11/16/15		2,281		2,280
				64,405
Credit Card – 5.3%
American Express Credit Account Master Trust, Series 2012-5, Class A, 0.59%, 5/15/18		4,400		4,392
American Express Credit Account Master Trust, Series 2013-1, Class A, 0.60%, 2/16/21		3,000		3,000
Capital One Multi-Asset Execution Trust, Series 2013-A2, Class A2, 0.36%, 2/15/19		3,000		2,995
Chase Issuance Trust, Series 2012-A3, Class A3, 0.79%, 6/15/17		2,000		2,007
Chase Issuance Trust, Series 2012-A5, Class A5, 0.59%, 8/15/17		2,000		1,999
Chase Issuance Trust, Series 2012-A8, Class A8, 0.54%, 10/16/17		5,000		4,989
Chase Issuance Trust, Series 2013-A3, Class A3, 0.46%, 4/15/20		9,000		8,932
Chase Issuance Trust, Series 2013-A6, Class A6, 0.60%, 7/15/20		5,000		4,992
Citibank Credit Card Issuance Trust, Series 2013-A3, Class A3, 1.11%, 7/23/18		5,000		5,017
Citibank Credit Card Issuance Trust, Series 2013-A6, Class A6, 1.32%, 9/7/18		10,000		10,070
Dryrock Issuance Trust, Series 2012-1, Class A, 0.33%, 8/15/17		4,500		4,491
GE Capital Credit Card Master Note Trust, Series 2011-1, Class A, 0.73%, 1/15/17		1,500		1,501
GE Capital Credit Card Master Note Trust, Series 2012-4, Class A, 0.48%, 6/15/18		2,000		1,999

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 12.5% – continued
Credit Card – 5.3% – continued
Golden Credit Card Trust, Series 2012-5A, Class A, 0.79%, 9/15/17 (1)		$3,000		$3,002
Golden Credit Card Trust, Series 2013-1A, Class A, 0.43%, 2/15/18 (1)		3,000		2,988
Master Credit Card Trust II, Series 2013-3A, Class A, 0.68%, 1/22/18 (1)(2)		3,000		3,000
Turquoise Card Backed Securities PLC, Series 2011-1A, Class A, 0.93%, 9/15/16 (1)		3,000		3,004
World Financial Network Credit Card Master Trust, Series 2013-B, Class A, 0.91%, 3/16/20		1,000		992
				69,370
Other – 1.5%
GE Dealer Floorplan Master Note Trust, Series 2012-4, Class A, 0.62%, 10/20/17		2,000		2,002
GE Dealer Floorplan Master Note Trust, Series 2013-1, Class A, 0.58%, 4/20/18		4,500		4,489
GE Equipment Midticket LLC, Series 2012-1, Class A3, 0.60%, 5/23/16		2,500		2,497
GE Equipment Small Ticket LLC, Series 2012-1A, Class A2, 0.85%, 11/21/14(1)		517		517
GE Equipment Small Ticket LLC, Series 2013-1A, Class A2, 0.73%, 1/25/16(1)		2,000		2,001
GE Equipment Transportation LLC, Series 2013-1, Class A2, 0.50%, 11/24/15		1,500		1,498
GE Equipment Transportation LLC, Series 2012-2, Class A2, 0.47%, 4/24/15		741		741
John Deere Owner Trust, Series 2013-A, Class A2, 0.41%, 9/15/15		1,000		1,000
M&T Bank Auto Receivables Trust, Series 2013-1A, Class A2, 0.66%, 2/16/16 (1)(2)		2,250		2,251

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 81 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 12.5% – continued
Other – 1.5% continued
Volvo Financial Equipment LLC, Series 2013-1A, Class A2, 0.53%, 11/16/15 (1)		$3,000		$2,999
				19,995
Total Asset-Backed Securities
(Cost $162,464)				162,427
CORPORATE BONDS – 48.4%
Agriculture – 0.9%
Bunge Ltd. Finance Corp., 5.35%, 4/15/14		4,010		4,105
Reynolds American, Inc., 1.05%, 10/30/15		6,900		6,903
				11,008
Auto Manufacturers – 0.9%
Daimler Finance North America LLC, 0.86%, 3/28/14 (1)		1,500		1,504
0.87%, 1/9/15 (1)		735		737
1.65%, 4/10/15 (1)		1,795		1,812
1.25%, 1/11/16 (1)		1,250		1,250
1.13%, 8/1/18 (1)		5,000		5,026
Nissan Motor Acceptance Corp., 1.00%, 3/15/16 (1)		1,000		993
				11,322
Banks – 7.5%
Bank of America Corp., 1.82%, 7/11/14		2,100		2,121
1.25%, 1/11/16		3,000		2,997
1.32%, 3/22/18		6,000		6,019
BB&T Corp., 1.11%, 6/15/18		2,000		2,010
Capital One Financial Corp., 1.42%, 7/15/14		1,500		1,508
2.13%, 7/15/14		2,000		2,022
2.15%, 3/23/15		2,072		2,105
1.00%, 11/6/15		3,000		2,985
Capital One N.A., 0.70%, 3/22/16		2,000		1,998
Citigroup, Inc., 5.50%, 10/15/14		445		466
2.25%, 8/7/15		900		918
1.04%, 4/1/16		5,000		5,011

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.4% – continued
Banks – 7.5% continued
Fifth Third Bank, 0.67%, 2/26/16		$5,000		$4,990
Goldman Sachs Group (The), Inc., 5.13%, 1/15/15		2,000		2,104
HSBC USA, Inc., 2.38%, 2/13/15		5,000		5,112
1.13%, 9/24/18		3,000		3,007
JPMorgan Chase & Co., 1.88%, 3/20/15		4,050		4,114
0.93%, 10/15/15		3,500		3,511
1.10%, 10/15/15		7,000		7,013
0.88%, 2/26/16		4,250		4,257
1.13%, 2/26/16		3,000		2,997
Morgan Stanley, 1.86%, 1/24/14		2,000		2,007
2.88%, 1/24/14		2,500		2,517
1.51%, 2/25/16		5,000		5,044
1.55%, 4/25/18		1,000		1,004
SunTrust Bank, 0.55%, 4/1/15		5,000		4,967
US Bancorp, 3.44%, 2/1/16		7,100		7,420
Wells Fargo & Co., 1.50%, 7/1/15		7,000		7,088
				97,312
Beverages – 1.9%
Anheuser-Busch Cos. LLC, 5.00%, 1/15/15		1,000		1,056
Anheuser-Busch InBev Worldwide, Inc., 0.63%, 7/14/14		1,900		1,904
1.50%, 7/14/14		3,000		3,026
0.80%, 7/15/15		5,640		5,666
Coca-Cola Enterprises, Inc., 1.13%, 11/12/13		2,500		2,502
PepsiCo, Inc., 0.75%, 3/5/15		8,000		8,025
SABMiller Holdings, Inc., 1.85%, 1/15/15(1)		2,000		2,025
				24,204
Biotechnology – 0.8%
Amgen, Inc., 1.88%, 11/15/14		3,500		3,549

See Notes to the Financial Statements.

FIXED INCOME FUNDS 82 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.4% – continued
Biotechnology – 0.8% – continued
Gilead Sciences, Inc., 2.40%, 12/1/14		$7,000		$7,145
				10,694
Chemicals – 0.3%
Airgas, Inc., 2.85%, 10/1/13		3,500		3,500
Commercial Services – 0.1%
ERAC USA Finance LLC, 2.25%, 1/10/14 (1)		1,500		1,506
Computers – 1.4%
Dell, Inc., 0.85%, 4/1/14		3,400		3,384
Hewlett-Packard Co., 6.13%, 3/1/14		3,387		3,461
1.80%, 9/19/14		2,000		2,020
International Business Machines Corp., 0.88%, 10/31/14		3,000		3,019
0.55%, 2/6/15		1,500		1,502
0.75%, 5/11/15		5,000		5,024
				18,410
Diversified Financial Services – 10.6%
American Express Credit Corp., 1.36%, 6/12/15		15,830		16,058
1.75%, 6/12/15		1,412		1,438
0.77%, 7/29/16		5,000		5,015
American Honda Finance Corp., 0.49%, 11/3/14 (1)		1,710		1,713
1.45%, 2/27/15 (1)		2,000		2,019
1.00%, 8/11/15 (1)		6,000		6,027
0.64%, 5/26/16 (1)		1,400		1,403
Caterpillar Financial Services Corp., 6.13%, 2/17/14		1,695		1,732
1.05%, 3/26/15		2,000		2,016
1.10%, 5/29/15		2,000		2,016
0.70%, 11/6/15		11,645		11,639
Charles Schwab (The) Corp., 0.85%, 12/4/15		4,000		3,999
Ford Motor Credit Co. LLC, 4.21%, 4/15/16		5,000		5,299
General Electric Capital Corp., 2.15%, 1/9/15		2,000		2,042
0.43%, 10/6/15		6,000		5,976
0.86%, 12/11/15		2,925		2,950

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.4% – continued
Diversified Financial Services – 10.6% – continued
0.84%, 1/8/16		$1,250		$1,255
1.00%, 1/8/16		1,700		1,699
0.92%, 7/12/16		5,000		5,018
0.96%, 4/2/18		2,621		2,636
Harley-Davidson Financial Services, Inc., 1.15%, 9/15/15 (1)		3,000		3,004
Harley-Davidson Funding Corp., 5.75%, 12/15/14 (1)		2,786		2,937
Hyundai Capital America, 1.63%, 10/2/15 (1)		2,000		2,003
1.88%, 8/9/16 (1)		5,000		5,021
John Deere Capital Corp., 0.42%, 6/16/14		3,000		3,004
0.88%, 4/17/15		2,000		2,011
0.95%, 6/29/15		7,522		7,571
0.70%, 9/4/15		7,000		7,006
PACCAR Financial Corp., 1.55%, 9/29/14		3,200		3,238
Toyota Motor Credit Corp., 1.25%, 11/17/14		6,000		6,063
0.43%, 12/5/14		10,000		10,015
0.55%, 5/17/16		4,000		4,011
				137,834
Electric – 2.3%
Alabama Power Co., 0.55%, 10/15/15		2,900		2,890
Commonwealth Edison Co., 1.63%, 1/15/14		2,000		2,007
Dominion Resources, Inc., 1.80%, 3/15/14		1,000		1,005
Duke Energy Carolinas LLC, 5.30%, 10/1/15		5,015		5,475
Duke Energy Indiana, Inc., 0.62%, 7/11/16		2,000		2,004
Georgia Power Co., 0.75%, 8/10/15		3,720		3,723
0.63%, 11/15/15		1,900		1,896
NextEra Energy Capital Holdings, Inc., 2.55%, 11/15/13		3,000		3,007
1.61%, 6/1/14		1,000		1,006
1.20%, 6/1/15		2,000		2,011
Xcel Energy, Inc., 0.75%, 5/9/16		5,000		4,965
				29,989

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 83 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.4% – continued
Electronics – 0.3%
Thermo Fisher Scientific, Inc., 3.20%, 3/1/16		$3,525		$3,672
Food – 1.6%
ConAgra Foods, Inc., 1.30%, 1/25/16		2,000		2,002
General Mills, Inc., 0.56%, 1/29/16		1,000		1,001
Kellogg Co., 0.49%, 2/13/15		2,700		2,703
1.13%, 5/15/15		2,000		2,016
Kraft Foods Group, Inc., 1.63%, 6/4/15		2,000		2,031
Sysco Corp., 0.55%, 6/12/15		2,406		2,407
Unilever Capital Corp., 0.45%, 7/30/15		8,500		8,470
				20,630
Healthcare - Products – 0.4%
Baxter International, Inc., 0.95%, 6/1/16		5,000		5,010
Healthcare -Services – 0.6%
Quest Diagnostics, Inc., 1.10%, 3/24/14		2,000		2,006
UnitedHealth Group, Inc., 0.85%, 10/15/15		2,000		2,005
Ventas Realty L.P., 1.55%, 9/26/16		2,000		2,003
WellPoint, Inc., 1.25%, 9/10/15		2,000		2,013
				8,027
Insurance – 2.7%
American International Group, Inc., 3.00%, 3/20/15		3,000		3,088
Berkshire Hathaway Finance Corp., 2.45%, 12/15/15		2,362		2,449
Berkshire Hathaway, Inc., 0.96%, 8/15/14		5,000		5,029
0.80%, 2/11/16		4,500		4,505
2.20%, 8/15/16		2,500		2,592
Metropolitan Life Global Funding I, 1.02%, 1/10/14 (1)		1,500		1,503
New York Life Global Funding, 0.75%, 7/24/15 (1)		9,305		9,317

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.4% – continued
Insurance – 2.7% – continued
0.61%, 5/23/16 (1)		$6,000		$6,016
				34,499
Internet – 1.1%
Amazon.com, Inc., 0.65%, 11/27/15		10,311		10,295
eBay, Inc., 0.70%, 7/15/15		4,250		4,263
				14,558
Iron/Steel – 0.5%
Glencore Funding LLC, 1.70%, 5/27/16 (1)		6,000		5,912
Machinery - Construction & Mining – 0.2%
Caterpillar, Inc., 0.95%, 6/26/15		2,030		2,040
Media – 1.1%
Comcast Corp., 6.50%, 1/15/15		1,645		1,768
NBCUniversal Media LLC, 2.10%, 4/1/14		3,475		3,503
Viacom, Inc., 1.25%, 2/27/15		3,000		3,008
Walt Disney (The) Co., 0.45%, 12/1/15		6,400		6,366
				14,645
Mining – 0.2%
Freeport-McMoRan Copper & Gold, Inc., 1.40%, 2/13/15		2,500		2,507
Miscellaneous Manufacturing – 0.8%
Danaher Corp., 1.30%, 6/23/14		2,000		2,014
Eaton Corp., 0.95%, 11/2/15 (1)		4,000		4,001
General Electric Co., 0.85%, 10/9/15		4,000		4,009
				10,024
Office/Business Equipment – 0.2%
Xerox Corp., 1.08%, 5/16/14		2,000		2,003
Oil & Gas – 0.5%
Chevron Corp., 0.89%, 6/24/16		1,000		1,004

See Notes to the Financial Statements.

FIXED INCOME FUNDS 84 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.4% – continued
Oil & Gas – 0.5% – continued
Marathon Oil Corp., 0.90%, 11/1/15		$1,500		$1,500
Phillips 66, 1.95%, 3/5/15		4,000		4,060
				6,564
Oil & Gas Services – 1.7%
Cameron International Corp., 1.60%, 4/30/15		2,000		2,015
Halliburton Co., 1.00%, 8/1/16		20,250		20,219
				22,234
Pharmaceuticals – 4.6%
AbbVie, Inc., 1.20%, 11/6/15		10,690		10,729
Express Scripts Holding Co., 2.10%, 2/12/15		3,000		3,048
GlaxoSmithKline Capital, Inc., 0.70%, 3/18/16		9,500		9,494
McKesson Corp., 0.95%, 12/4/15		7,600		7,607
Merck & Co., Inc., 0.62%, 5/18/18		22,782		22,866
Mylan, Inc., 1.80%, 6/24/16(1)		3,000		3,013
Zoetis, Inc., 1.15%, 2/1/16(1)		3,000		3,012
				59,769
Pipelines – 0.6%
Enterprise Products Operating LLC, 3.70%, 6/1/15		5,000		5,228
1.25%, 8/13/15		3,000		3,016
				8,244
Real Estate Investment Trusts – 0.6%
HCP, Inc., 2.70%, 2/1/14		2,000		2,013
Simon Property Group L.P., 5.75%, 12/1/15		4,062		4,444
6.10%, 5/1/16		1,675		1,869
				8,326
Retail – 1.5%
Costco Wholesale Corp., 0.65%, 12/7/15		11,645		11,647

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 48.4% – continued
Retail – 1.5% – continued
McDonald’s Corp., 0.75%, 5/29/15		$4,400		$4,416
Nordstrom, Inc., 6.75%, 6/1/14		3,500		3,641
				19,704
Semiconductors – 0.4%
Broadcom Corp., 1.50%, 11/1/13		2,000		2,001
Texas Instruments, Inc., 0.45%, 8/3/15		3,500		3,492
				5,493
Software – 0.2%
Microsoft Corp., 2.95%, 6/1/14		2,000		2,034
Telecommunications – 1.7%
AT&T, Inc., 0.80%, 12/1/15		5,000		4,985
0.65%, 2/12/16		5,700		5,689
Verizon Communications, Inc., 1.25%, 11/3/14		2,500		2,515
0.70%, 11/2/15		1,000		994
2.00%, 9/14/18		7,150		7,518
				21,701
Transportation – 0.2%
FedEx Corp., 7.38%, 1/15/14		3,094		3,153
Total Corporate Bonds
(Cost $624,775)				626,528
COVERED BONDS – 0.5%
Banks – 0.5%
Canadian Imperial Bank of Commerce, 1.50%, 12/12/14(1)		2,000		2,027
National Bank of Canada, 1.65%, 1/30/14(1)		1,500		1,507
Swedbank Hypotek AB, 0.70%, 3/28/14(1)		3,000		3,007
				6,541
Total Covered Bonds
(Cost $6,515)				6,541

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 85 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 34.9%
Agriculture – 0.1%
BAT International Finance PLC, 1.40%, 6/5/15 (1)		$1,000		$1,009
Auto Manufacturers – 0.9%
Volkswagen International Finance N.V., 0.86%, 4/1/14 (1)		1,595		1,598
1.63%, 3/22/15 (1)		9,470		9,592
				11,190
Banks – 18.9%
Abbey National Treasury Services PLC, 1.84%, 4/25/14		2,000		2,015
ABN AMRO Bank N.V., 1.38%, 1/22/16 (1)		4,500		4,500
Australia & New Zealand Banking Group Ltd., 0.90%, 2/12/16		3,000		2,998
0.82%, 5/15/18		3,500		3,497
Bank of England Euro Note, 0.50%, 3/21/16 (1)		6,000		5,982
Bank of Montreal, 0.80%, 11/6/15		5,000		5,008
0.87%, 4/9/18		5,000		5,004
Bank of Nova Scotia, 0.69%, 2/27/14		3,500		3,508
0.75%, 10/9/15		4,378		4,378
0.79%, 7/15/16		1,000		1,004
1.38%, 7/15/16		3,500		3,524
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., 0.71%, 2/26/16 (1)		6,350		6,365
0.87%, 9/9/16 (1)(2)		5,000		5,020
Barclays Bank PLC, 3.90%, 4/7/15		3,000		3,133
BNP Paribas S.A., 3.00%, 12/20/14		8,500		8,763
BPCE S.A., 1.52%, 4/25/16		9,000		9,127
Canadian Imperial Bank of Commerce, 0.79%, 7/18/16		1,000		1,005
1.35%, 7/18/16		3,000		3,024
Commonwealth Bank of Australia, 1.95%, 3/16/15		3,000		3,058
1.05%, 9/18/15 (1)		3,500		3,540
1.25%, 9/18/15		6,000		6,060

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 34.9% – continued
Banks – 18.9% – continued
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A., 0.73%, 3/18/16		$6,000		$6,021
Credit Agricole S.A., 1.43%, 4/15/16 (1)		8,000		8,084
1.10%, 10/3/16 (1)(2)		2,000		1,999
Deutsche Bank A.G., 3.45%, 3/30/15		1,000		1,040
Export-Import Bank of Korea, 1.25%, 11/20/15		8,000		8,006
1.10%, 9/17/16		4,000		4,000
HSBC Bank PLC, 3.50%, 6/28/15 (1)		1,500		1,569
0.90%, 5/15/18 (1) (2)		3,000		3,003
ING Bank N.V., 1.89%, 9/25/15 (1)		9,422		9,622
1.21%, 3/7/16 (1)		11,000		11,080
KFW, 0.24%, 7/9/15		1,000		1,000
Korea Development Bank (The), 8.00%, 1/23/14		4,500		4,600
1.00%, 1/22/16		9,000		8,883
Macquarie Bank Ltd., 2.00%, 8/15/16 (1)		6,500		6,534
National Australia Bank Ltd., 1.47%, 1/30/14		3,200		3,214
1.40%, 8/7/15		8,000		8,131
0.82%, 7/25/16		500		502
1.30%, 7/25/16		4,000		4,018
Nederlandse Waterschapsbank N.V., 0.31%, 10/27/14 (1)		1,000		1,000
0.75%, 3/29/16 (1)		3,000		2,997
Nordea Bank Finland PLC, 1.15%, 4/9/14		3,000		3,014
Oesterreichische Kontrollbank A.G., 1.13%, 7/6/15		2,000		2,024
Royal Bank of Canada, 1.45%, 10/30/14		2,000		2,023
1.15%, 3/13/15		4,000		4,034
0.85%, 3/8/16		2,500		2,492
1.13%, 7/22/16		1,500		1,502
Royal Bank of Scotland Group PLC, 2.55%, 9/18/15		3,000		3,064
Societe Generale S.A., 1.32%, 4/11/14 (1)		8,500		8,535

See Notes to the Financial Statements.

FIXED INCOME FUNDS 86 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 34.9% – continued
Banks – 18.9% – continued
1.33%, 10/1/18		$8,000		$8,013
Sumitomo Mitsui Banking Corp., 0.90%, 1/18/16		5,000		4,984
Svenska Handelsbanken, 1.07%, 7/17/14		1,700		1,702
Svenska Handelsbanken AB, 0.70%, 3/21/16		2,200		2,205
Westpac Banking Corp., 1.07%, 7/17/15 (1)		2,000		2,020
1.13%, 9/25/15		3,000		3,022
0.95%, 1/12/16		5,500		5,507
1.01%, 7/30/18		5,000		5,009
				244,966
Beverages – 0.4%
Heineken N.V., 0.80%, 10/1/15 (1)		5,000		4,989
Chemicals – 0.3%
Potash Corp. of Saskatchewan, Inc., 5.25%, 5/15/14		3,300		3,390
Food – 0.3%
Tesco PLC, 2.00%, 12/5/14 (1)		4,000		4,052
Healthcare - Products – 0.4%
Covidien International Finance S.A., 1.35%, 5/29/15		2,000		2,019
2.80%, 6/15/15		3,333		3,441
				5,460
Leisure Time – 0.2%
Carnival Corp., 1.20%, 2/5/16		2,700		2,683
Mining – 0.8%
Barrick Gold Corp., 1.75%, 5/30/14		3,000		3,011
BHP Billiton Finance USA Ltd., 1.13%, 11/21/14		3,200		3,227
1.00%, 2/24/15		1,000		1,007
Rio Tinto Finance USA PLC, 1.09%, 6/17/16		1,000		1,005
Xstrata Finance Canada Ltd., 2.85%, 11/10/14 (1)		2,000		2,030
				10,280

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 34.9% – continued
Miscellaneous Manufacturing – 0.3%
Pentair Finance S.A., 1.35%, 12/1/15		$2,000		$2,008
Tyco Electronics Group S.A., 1.60%, 2/3/15		1,500		1,511
				3,519
Multi-National – 0.2%
Inter-American Development Bank, 0.25%, 10/15/15		2,500		2,502
Oil & Gas – 6.4%
BP Capital Markets PLC, 1.70%, 12/5/14		5,000		5,076
0.70%, 11/6/15		8,900		8,881
0.88%, 9/26/18		5,000		5,003
Canadian Natural Resources Ltd., 1.45%, 11/14/14		7,000		7,052
CNOOC Finance 2013 Ltd., 1.13%, 5/9/16		6,000		5,936
CNPC General Capital Ltd., 1.45%, 4/16/16 (1)		1,000		997
Petrobras Global Finance B.V., 1.88%, 5/20/16		10,000		9,950
Petroleos Mexicanos, 2.29%, 7/18/18		5,000		5,150
Shell International Finance B.V., 3.10%, 6/28/15		5,000		5,223
0.63%, 12/4/15		5,000		5,000
Sinopec Capital 2013 Ltd., 1.25%, 4/24/16 (1)		2,800		2,784
Statoil ASA, 0.55%, 5/15/18		6,000		5,992
Total Capital Canada Ltd., 0.65%, 1/17/14		4,000		4,004
0.65%, 1/15/16		4,140		4,160
Total Capital International S.A., 1.00%, 8/12/16		3,000		3,007
0.83%, 8/10/18		2,500		2,512
Total Capital S.A., 3.13%, 10/2/15		2,000		2,094
				82,821
Oil & Gas Services – 0.2%
Schlumberger Investment S.A., 0.81%, 9/12/14 (1)		3,100		3,114

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 87 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 34.9% – continued
Pharmaceuticals – 2.2%
GlaxoSmithKline Capital PLC, 0.75%, 5/8/15		$13,455		$13,508
Sanofi, 1.20%, 9/30/14		4,131		4,168
2.63%, 3/29/16		4,877		5,089
Takeda Pharmaceutical Co. Ltd., 1.03%, 3/17/15(1)		4,750		4,768
Teva Pharmaceutical Finance III B.V., 0.75%, 3/21/14		1,350		1,352
				28,885
Pipelines – 0.5%
TransCanada PipeLines Ltd., 0.88%, 3/2/15		5,000		5,015
0.75%, 1/15/16		1,600		1,591
				6,606
Regional – 0.7%
Province of Ontario Canada, 0.40%, 4/1/15		2,000		2,002
0.31%, 8/13/15		2,790		2,788
1.00%, 7/22/16		5,000		5,012
				9,802
Sovereign – 1.9%
Japan Bank for International Cooperation, 2.25%, 7/13/16		3,000		3,113
Kommuninvest I Sverige AB, 0.27%, 3/26/15 (1)		1,000		1,000
Republic of Korea, 5.75%, 4/16/14		10,693		10,977
Svensk Exportkredit AB, 0.63%, 5/31/16		1,500		1,494
0.44%, 6/12/17		8,000		8,006
				24,590
Telecommunications – 0.2%
Vodafone Group PLC, 0.65%, 2/19/16		2,400		2,400
Total Foreign Issuer Bonds
(Cost $450,744)				452,258
U.S. GOVERNMENT AGENCIES – 1.3% (3)
Fannie Mae – 0.4%
0.52%, 12/24/15		5,000		4,993

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 1.3% (3) – continued
Federal Farm Credit Bank – 0.4%
0.43%, 1/29/16		$5,000		$4,989
Federal Home Loan Bank – 0.3%
0.75%, 6/17/16		4,000		3,983
Freddie Mac – 0.2%
0.50%, 1/28/16		3,000		2,991
Total U.S. Government Agencies
(Cost $17,005)				16,956
U.S. GOVERNMENT OBLIGATIONS – 0.3%
U.S. Treasury Notes – 0.3%
0.25%, 5/15/16		4,500		4,470
Total U.S. Government Obligations
(Cost $4,475)				4,470
MUNICIPAL BONDS – 1 .9%
California – 0.5%
Orange County Pension Obligation TRB, Series A, 0.76%, 6/30/14		7,000		7,034
Maine – 0.2%
Maine State Municipal Bond Bank Liquor Operation TRB, 1.07%, 6/1/15		2,200		2,205
New Jersey – 0.4%
Hudson County Improvement Authority Taxable Revenue Notes, Series O-2 (County Gtd.), 1.25%, 12/20/13		3,040		3,044
Hudson County Improvement Authority Taxable Revenue Pooled Notes, Series P2 (County Gtd.), 1.00%, 5/23/14		2,000		2,006
				5,050
New York – 0.4%
New York City Taxable G.O. Unlimited Bonds, Subseries D2, 1.00%, 8/1/16(4)		4,650		4,646

See Notes to the Financial Statements.

FIXED INCOME FUNDS 88 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 1.9% – continued
Pennsylvania – 0.4%
Philadelphia Authority for Industrial Development City Service Agreement TRB, 1.20%, 4/1/14		$5,000		$5,012
Total Municipal Bonds
(Cost $23,902)				23,947
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 0.4%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (5)(6)		4,682,131		$4,682
Total Investment Companies
(Cost $4,682)				4,682
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.2%
Grand Parkway Transportation Corp. System Toll Taxable VRDB, Series D, 1.00%, 2/15/14		$2,000		$2,001
Total Short-Term Investments
(Cost $2,001)				2,001
Total Investments – 100.4%
(Cost $1,296,563)				1,299,810
Liabilities less Other Assets – (0.4)%				(4,617	)
NET ASSETS – 100.0%				$1,295,193

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $15,273,000 or 1.2% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000s)
Bank of Tokyo-Mitsubishi UFJ (The) Ltd., 0.87%, 9/9/16		9/3/13		$5,000

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000s)
Credit Agricole S.A., 1.10%, 10/3/16		9/26/13		$2,000
HSBC Bank PLC, 0.90%, 5/15/18		8/22/13		3,000
M&T Bank Auto Receivables Trust, Series 2013-1A, Class A2, 0.66%, 2/16/16		9/11/13		2,250
Master Credit Card Trust II, Series 2013-3A, Class A, 0.68%, 1/22/18		7/25/13		3,000

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $6,932,000 with net sales of approximately $2,250,000 during the six months ended September 30, 2013.

Percentages shown are based on Net Assets.

At September 30, 2013, the credit quality distribution for the Ultra-Short Fixed Income Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		15.2%
AA		22.0
A		43.7
BBB		16.0
B		0.3
A1 (Short Term)		0.4
U.S. Agency		1.3
U.S. Treasury		0.3
Cash Equivalents		0.4
Not Rated		0.4
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 financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 89 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Asset-Backed Securities		$–		$162,427	(1)		$–		$162,427
Corporate Bonds		–		626,528	(1)		–		626,528
Covered Bonds		–		6,541	(1)		–		6,541
Foreign Issuer Bonds		–		452,258	(1)		–		452,258
U.S. Government Agencies		–		16,956	(1)		–		16,956
U.S. Government Obligations		–		4,470	(1)		–		4,470
Municipal Bonds		–		23,947	(1)		–		23,947
Investment Companies		4,682		–			–		4,682
Short-Term Investments		–		2,001			–		2,001
Total Investments		$4,682		$1,295,128			$–		$1,299,810

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 90 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 23.6% (1)
Fannie Mae – 10.2%
Pool #555649, 7.50%, 10/1/32		$92		$105
Pool #745148, 5.00%, 1/1/36		463		502
Pool #893082, 2.67%, 9/1/36		314		335
Pool #AH1166, 4.50%, 12/1/40		240		257
Pool TBA, 4.50%, 10/13/43 (2)		2,790		2,980
				4,179
Freddie Mac – 2.8%
Pool #1J0365, 2.67%, 4/1/37		384		410
Pool #1J2840, 3.02%, 9/1/37		616		655
Pool #410092, 2.29%, 11/1/24		40		41
Series 3730, Class PL, 4.50%, 1/15/33		62		63
				1,169
Government National Mortgage Association – 9.4%
Series 2011-49, Class A, 2.45%, 7/16/38		369		375
Series 2012-123, Class A, 1.04%, 7/16/46		505		476
Series 2013-12, Class KA, 1.50%, 12/16/43		388		384
Series 2013-142, Class AD, 2.25%, 12/16/47		495		495
Series 2013-17, Class AF, 1.21%, 11/16/43		479		472
Series 2013-40, Class AB, 1.30%, 6/16/35		408		406
Series 2013-45, Class A, 1.45%, 10/16/40		468		462
Series 2013-92, Class AB, 2.00%, 2/16/43		781		780
				3,850
Government National Mortgage Association I – 0.1%
Pool #268360, 10.00%, 4/15/19		15		17

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 23.6% (1) – continued
Government National Mortgage Association I – 0.1% – continued
Pool #270288, 10.00%, 6/15/19		$15		$15
				32
Government National Mortgage Association II – 1.1%
Pool #82581, 4.00%, 7/20/40		421		447
Total U.S. Government Agencies
(Cost $9,574)				9,677
U.S. GOVERNMENT OBLIGATIONS – 64.1%
U.S. Treasury Inflation Indexed Notes – 6.0%
0.13%, 4/15/18		1,580		1,644
0.38%, 7/15/23		830		829
				2,473
U.S. Treasury Notes – 58.1%
0.88%, 9/15/16		11,060		11,141
1.38%, 9/30/18		6,295		6,290
2.00%, 9/30/20		5,735		5,730
2.50%, 8/15/23		625		619
				23,780
Total U.S. Government Obligations
(Cost $26,104)				26,253
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 17.0%
Northern Institutional Funds - U.S. Government Portfolio, 0.01% (3)(4)		6,974,851		$6,975
Total Investment Companies
(Cost $6,975)				6,975

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 91 FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 2.5%
U.S. Treasury Bill, 0.06%, 11/29/13 (5)		$1,000		$1,000
Total Short-Term Investments
(Cost $1,000)				1,000
Total Investments – 107.2%
(Cost $43,653)				43,905
Liabilities less Other Assets – (7.2)%				(2,933	)
NET ASSETS – 100.0%				$40,972

(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, 2013, the value of the Fund’s investment in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $8,188,000 with net sales of approximately $1,213,000 during the six months ended September 30, 2013.

(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.

Percentages shown are based on Net Assets.

At September 30, 2013, the credit quality distribution for the U.S. Government Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
U.S. Treasury		71.9%
U.S. Agency		12.2
Cash Equivalents		15.9
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.

At September 30, 2013, the U.S. Government Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000s)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED LOSS (000s)
10-Year U.S. Treasury Note		(14)		$1,769		Short		12/13		$(34)
2-Year U.S. Treasury Note		15		3,304		Long		12/13		8
Total										$(26)

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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
U.S. Government Agencies		$–		$9,677	(1)		$–		$9,677
U.S. Government Obligations		–		26,253	(1)		–		26,253
Investment Companies		6,975		–			–		6,975
Short-Term Investments		–		1,000			–		1,000
Total Investments		$6,975		$36,930			$–		$43,905

See Notes to the Financial Statements.

FIXED INCOME FUNDS 92 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$8		$–		$–		$8
Liabilities
Futures Contracts		(34)		–		–		(34)
Total Other Financial Instruments		$(26)		$–		$–		$(26)

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 93 FIXED INCOME FUNDS

FIXED INCOME FUNDS

ABBREVIATIONS AND OTHER INFORMATION SEPTEMBER 30, 2013 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS
AGM	Assured Guaranty Municipal Corporation
AMBAC	American Municipal Bond Assurance Corporation
AMT	Alternative Minimum Tax
COP	Certificate of Participation
EDA	Economic Development Authority
FGIC	Financial Guaranty Insurance Corporation
G.O.	General Obligation
GTD	Guaranteed
LOC	Line of Credit
NATL-RE	National Public Finance Guarantee Corporation
PCR	Pollution Control Revenue
PSF	Permanent School Fund
Q-SBLF	Qualified School Board Loan Fund
SCSDE	South Carolina State Department of Education
SFM	Single Family Mortgage
TRB	Tax Revenue Bonds
VRDB	Variable Rate Demand Bonds

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

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 94 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (UNAUDITED)

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Core Bond, Fixed Income, High Yield Fixed Income, Short Bond, Short-Intermediate U.S. Government, Tax-Advantaged Ultra-Short Fixed Income, Ultra-Short Fixed Income and U.S. Government Funds (each a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, all of which are diversified portfolios of the Trust. Each of the Funds is presented herein.

Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

Prior to November 17, 2012, the Core Bond Fund and Short Bond Fund operated as the Core Bond Portfolio and Short Bond Portfolio (the “Predecessor Funds”), investment portfolios of the Northern Institutional Funds. The Predecessor Funds were authorized to issue three classes of shares: Class A, Class C and Class D. Each class was distinguished by the level of administrative, liaison and transfer agent services provided. Effective October 13, 2011, the Class C Share and Class D Share classes of the Predecessor Funds were closed to investment by new accounts. At the close of business on November 28, 2011, shareholders who held Class C Shares and Class D Shares of the Predecessor Funds had their shares automatically converted to Class A Shares of the same Predecessor Fund on the basis of the relative net asset value per share of the respective share classes as of the close of business on November 28, 2011. On November 16, 2012, the Predecessor Funds were reorganized into the Core Bond Fund and Short Bond Fund, pursuant to a Plan of Reorganization approved by the Predecessor Funds’ Board of Trustees on August 9, 2012 (the “Reorganization”). At the time of Reorganization, each Predecessor Fund transferred all of its assets to the corresponding Fund in exchange for shares of the corresponding Fund and the Fund’s assumption of all the liabilities of the Predecessor Fund. Upon closing of the Reorganization, holders of each Predecessor Fund’s Class A shares received shares of the corresponding Fund. The Reorganization was tax-free.

Prior to the Reorganization, the Core Bond Fund and Short Bond Fund had no net assets or operations and therefore, activity shown in the Statements of Operations, Statements of Changes in Net Assets and Financial Highlights prior to the Reorganization represents the operations, changes in net assets and financial highlights of the Predecessor Funds. The cost basis of the investments transferred from each Predecessor Fund was carried forward to the corresponding Fund for accounting and tax purposes.

The Core Bond Fund and Short Bond Funds’ fiscal year end and tax year end changed from November 30 to March 31.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.

A) VALUATION OF SECURITIES AND DERIVATIVE CONTRACTS Securities are valued at their fair value. Equity securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities.

The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated

NORTHERN FUNDS SEMIANNUAL REPORT 95 FIXED INCOME FUNDS

FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities.

Shares of open-end investment companies are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided prices, as are swaps, caps, collars and floors. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.

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

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 of, the Funds’ Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. The 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.

The NTGI PVC is responsible for making the final determination of the fair value of a security. In making its determination, the NTGI PVC considers factors that it deems appropriate to the determination of the fair value of a 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 transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

For each Level 3 security, if any, 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.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund may sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund may do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund may purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund may utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. A Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses on closed futures contracts in Net realized gains (losses) on futures contracts and any unrealized gains or losses on open futures contracts in Net change in unrealized appreciation (depreciation) on futures contracts. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

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SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the Fixed Income Fund and Short Bond Fund had entered into exchange-traded short futures contracts and the Short-Intermediate U.S. Government Fund and U.S. Government Fund had both entered into exchange-traded long and short futures contracts. The aggregate market value of assets pledged to cover margin requirements for open positions was approximately $13,599,000, $800,000, $4,000,000 and $1,000,000, respectively. Further information on the impact of these positions, if any, on the Funds’ financial statements can be found in Note 9.

C) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE at generally 3:00 P.M. Central time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rates on the NYSE at generally 3:00 P.M. Central time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The realized gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.

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

Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A Fund bears the market risk from changes in foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. No forward foreign currency exchange contracts were held by the Funds during the six months ended September 30, 2013.

E) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to a Fund until settlement takes place. At the time a Fund enters into this type of transaction, it is required to segregate collateral or designate on its books and records cash or liquid assets having a fair value at least equal to the amount of the commitment. The Funds identify securities as segregated with a value that meets or exceeds the value of the commitments. When-issued securities at September 30, 2013, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.

F) MORTGAGE DOLLAR ROLLS Certain Funds enter into mortgage “dollar rolls” in which a Fund sells securities for delivery in the future (generally within 30 days) and simultaneously contracts with the same counterparty to repurchase other mortgage securities on a specified future date. During the roll period, a Fund loses the right to receive principal and interest paid on the securities sold. However, a Fund would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase.

For financial reporting and tax purposes, the Funds treat mortgage dollar rolls as two separate transactions; one involving the purchase of a security and a separate transaction involving a sale.

G) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent 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. Cost of investments includes amortization of premiums and accretion of discounts, if

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NOTES TO THE FINANCIAL STATEMENTS continued

any. Dividend income is recognized on the ex-dividend date. The Funds’ income may be subject to certain state and local taxes.

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

I) REDEMPTION FEES The High Yield Fixed Income Fund charges a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. Prior to October 1, 2013, the Tax-Advantaged Ultra-Short Fixed Income and Ultra-Short Fixed Income Funds charged a 1 percent redemption fee on the redemption of shares (including by exchange) held for 90 days or less. For the purpose of applying the fee, the Funds use a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Funds and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Funds. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Funds’ prospectuses.

Redemption fees for the six months ended September 30, 2013, were approximately $55,000, $43,000 and $1,500 for the High Yield Fixed Income, Tax-Advantaged Ultra-Short Fixed Income and Ultra-Short Fixed Income Funds, respectively. Redemption fees for the fiscal year ended March 31, 2013, were approximately $118,000 and $6,000 for the High Yield Fixed Income and Tax-Advantaged Ultra-Short Fixed Income Funds, respectively. The Ultra-Short Fixed Income Fund did not have any redemption fees for the fiscal year ended March 31, 2013. This amount is included in “Payments for Shares Redeemed” in Note 8 — Capital Share Transactions. The impact from redemption fees paid to the Fund was less than $0.001 per share.

J) FUND SECURITIES LOANED The Predecessor Funds participated in Northern Trust’s securities lending program and loaned a portion of their investment portfolios to securities lending borrowers (e.g. brokers approved by Northern Trust). Northern Trust received collateral for the Predecessor Funds, generally consisting of cash, government securities and letters of credit from the borrowers on behalf of the participating Predecessor Funds in connection with such loans. Pursuant to an exemptive order granted by the Securities and Exchange Commission (“SEC”), the Predecessor Funds held invested cash collateral in Northern Institutional Funds Liquid Assets Portfolio, an affiliated money market fund. Non-cash collateral was held in custody for the Predecessor Funds. The Predecessor Funds did not exercise effective control over the non-cash collateral received. The value of the collateral was monitored daily to ensure the value of such collateral met or exceeded the value of the securities loaned. However, in the event of default or bankruptcy by the borrowing party under the securities lending agreements, realization and/or retention of the collateral might have been subject to legal proceedings.

The Predecessor Funds earned income on portfolio securities loaned, and received compensation for lending their securities in the form of income earned on invested cash collateral and fees paid on non-cash collateral. Income earned by the Predecessor Funds from securities lending was based on the amount and type of securities loaned, the length of the borrowing period and other factors. The Predecessor Funds paid fees to Northern Trust for administering the securities lending program. The fees were typically based on a percentage of the revenue generated from the lending activities. Income from securities lending (net of fees) is disclosed as investment income in each Predecessor Fund’s Statement of Operations.

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

	DECLARATION FREQUENCY		PAYMENT FREQUENCY
Core Bond		Daily		Monthly
Fixed Income		Daily		Monthly
High Yield Fixed Income		Daily		Monthly
Short Bond		Daily		Monthly
Short-Intermediate U.S. Government		Daily		Monthly
Tax-Advantaged Ultra-Short Fixed Income		Daily		Monthly
Ultra-Short Fixed Income		Daily		Monthly
U.S. Government		Daily		Monthly

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. The reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications relate to net operating losses, Section 988

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SEPTEMBER 30, 2013 (UNAUDITED)

currency gains and losses, and paydowns. These reclassifications have no impact on the net assets or the net asset values per share of the Funds. At March 31, 2013, the following reclassifications were recorded:

Amounts in thousands	UNDISTRIBUTED NET INVESTMENT INCOME			ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS (LOSSES)			CAPITAL STOCK
Core Bond		$96			$(96	)		$  —
Fixed Income		3,411			(3,438	)		27
High Yield Fixed Income		(2,070	)		2,070			—
Short Bond		65			(65	)		—
Short-Intermediate U.S. Government		569			(574	)		5
Tax-Advantaged Ultra-Short Fixed Income		2,019			(658	)		(1,361	)
U.S. Government		(26	)		26			—

L) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

For the period subsequent to October 31, 2012 through the fiscal year end, the following Funds incurred net capital losses and/or net currency losses for which each Fund intends to treat as having been incurred in the following fiscal year (in thousands):

Fixed Income	$6,066
Short-Intermediate U.S. Government	370
U.S. Government	110

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012 and for the Predecessor Funds, the fiscal year ended November 30, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 or November 30, 2012, as applicable, with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

At March 31, 2013, the capital loss carryforwards for U.S. Federal income tax purposes and their respective years of expiration are as follows (in thousands):

Fund	MARCH 31, 2015		MARCH 31, 2016
Short Bond		$308		$932

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

At March 31, 2013, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains (losses) were as follows:

Amounts in thousands	UNDISTRIBUTED
	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAINS (LOSSES)
Core Bond		$  —		$55		$107		$2,628
Fixed Income		—		1,551		8,113		58,198
High Yield Fixed Income		—		5,240		20,854		251,679
Short Bond		—		5		—		2,390
Short-Intermediate U.S. Government		—		28		—		1,035
Tax-Advantaged Ultra-Short Fixed Income		—		6		—		8,800
Ultra-Short Fixed Income		—		234		250		4,243
U.S. Government		—		100		—		228

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

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NOTES TO THE FINANCIAL STATEMENTS continued

The tax character of distributions paid during the fiscal year and period ended March 31, 2013, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Core Bond		$  —		$2,184		$749
Fixed Income		—		79,197		7,036
High Yield Fixed Income		—		405,683		—
Short Bond		—		798		—
Short-Intermediate U.S. Government		—		8,408		898
Tax-Advantaged Ultra-Short Fixed Income		6,803		5,708		—
Ultra-Short Fixed Income		—		6,667		766
U.S. Government		—		2,073		31

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

The tax character of distributions paid during the fiscal year ended March 31, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Fixed Income		$  —		$52,090		$5,637
High Yield Fixed Income		—		334,562		—
Short-Intermediate U.S. Government		—		17,199		1,323
Tax-Advantaged Ultra-Short Fixed Income		6,296		3,545		1,000
Ultra-Short Fixed Income		—		5,080		457
U.S. Government		—		1,565		707

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

The tax character of distributions paid during the fiscal year ended November 30, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Core Bond		$  —		$4,801		$543
Short Bond		—		2,339		—

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

The tax character of distributions paid by the Predecessor Funds during the fiscal year ended November 30, 2011 was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Core Bond		$  —		$3,541		$641
Short Bond		—		3,450		—

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

As of March 31, 2013, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2010 through March 31, 2012, or November 30, 2010 through November 30, 2012, as applicable, remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.

M) NETTING AGREEMENTS The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. As of September 30, 2013, the Funds had not invested in any portfolio securities or entered into any derivative transactions, other than the futures contracts as described above, with gross exposures shown on the Statements of Assets and Liabilities, that could be netted subject to netting agreements.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2013.

These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2013.

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4. BANK BORROWINGS

The Trust entered into a $150,000,000 senior unsecured revolving credit facility on December 1, 2011, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one-month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Funds did not have any outstanding loans.

When utilized, the average dollar amount of the High Yield Fixed Income Fund’s borrowings was $42,875,000 and the weighted average interest rate on these borrowings was 1.19 percent for the six months ended September 30, 2013. No other Funds incurred any interest expenses during the six months ended September 30, 2013.

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment adviser is entitled to receive an advisory fee, computed daily and payable monthly, at annual rates set forth in the tables below (expressed as a percentage of each Fund’s respective average daily net assets). During the six months ended September 30, 2013, the investment adviser contractually agreed to reimburse a portion of each Fund’s expenses (other than acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; and extraordinary expenses and interest, if any) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by administrator and/or adviser as a reduction to Total Expenses in the Statements of Operations. The contractual reimbursement arrangement is expected to continue until at least July 31, 2014. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by the investment adviser or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangement at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.

The advisory fees for the Funds for the six months ended September 30, 2013, were based on the following annual rates as set forth in the table below. The table below also sets forth the expense limitations for the six months ended September 30, 2013 for the Funds.

	CONTRACTUAL ANNUAL ADVISORY FEE						CONTRACTUAL
	FIRST $1.5 BILLION		NEXT $1 BILLION		OVER $2.5 BILLION		EXPENSE LIMITATION
Core Bond		0.40%		0.38%		0.36%		0.40%
Fixed Income		0.40%		0.38%		0.36%		0.45%
High Yield Fixed Income		0.70%		0.66%		0.63%		0.80%
Short Bond		0.40%		0.38%		0.36%		0.40%
Short-Intermediate U.S. Government		0.40%		0.38%		0.36%		0.40%
Tax-Advantaged Ultra-Short Fixed Income		0.15%		0.141%		0.135%		0.25%
Ultra-Short Fixed Income		0.15%		0.141%		0.135%		0.25%
U.S. Government		0.70%		0.66%		0.63%		0.40%

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

For compensation as administrator, NTI is entitled to receive an administration fee, accrued daily and payable monthly, at the annual rate of 0.15 percent of each Fund’s average daily net assets. The administration fees are reflected in the Funds’ Statements of Operations.

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NOTES TO THE FINANCIAL STATEMENTS continued

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

NTI also acted as administrator to the Predecessor Funds and NTI was entitled to an administration fee from the Predecessor Funds at the annual rate of 0.10 percent of the average daily net assets of each Predecessor Fund. Under the administration agreement with Northern Institutional Funds, NTI, as administrator, had agreed to reimburse expenses (including fees payable to NTI for its services as administrator, but excluding management fees, transfer agency fees, service agent fees, taxes, interest, indemnification expenses, acquired fund fees and expenses, each Predecessor Fund’s proportionate share of the increase in compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries effective January 1, 2012, expenses related to third-party consultants engaged by the Board of Trustees, membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum and other extraordinary expenses) that exceeded on an annualized basis 0.10 percent of the Predecessor Fund’s average daily net assets.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.

Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statements of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

6. RELATED PARTY TRANSACTIONS

The Funds currently invest uninvested cash in the Diversified Assets Portfolio, the U.S. Government Portfolio or the Tax Exempt Portfolio (the “Portfolios”) of Northern Institutional Funds, an investment company which is advised by NTI, pursuant to the terms of an exemptive order issued by the SEC. The Core Bond, Fixed Income, High Yield Fixed Income, Short Bond and Ultra-Short Fixed Income Funds currently invest uninvested cash in the Diversified Assets Portfolio, the Short-Intermediate U.S. Government and U.S. Government Funds currently invest uninvested cash in the U.S. Government Portfolio, and the Tax-Advantaged Ultra-Short Fixed Income Fund currently invests uninvested cash in the Tax Exempt Portfolio. Accordingly, each Fund bears indirectly a proportionate share of the Portfolio’s operating expenses. These operating expenses include the advisory, administrative, transfer agency and custody fees that the Portfolios pay to NTI and/or its affiliates. Currently, the aggregate annual rate of advisory, administration, transfer agency and custody fees payable to the investment advisers and/or their affiliates on any assets invested in the Diversified Assets Portfolio, U.S. Government Portfolio or the Tax Exempt Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, the investment adviser will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in an affiliated money market fund. This reimbursement is included in Less Expenses reimbursed by administrator and/or adviser as a reduction to Total Expenses in the Statements of Operations. This reimbursement’s impact on each Fund’s net expense and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

FIXED INCOME FUNDS 102 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

7. INVESTMENT TRANSACTIONS

For the six months ended September 30, 2013, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER
Core Bond		$402,200		$26,297		$403,653		$19,811
Fixed Income		6,516,442		438,570		6,743,113		423,224
High Yield Fixed Income		—		2,545,644		—		2,918,799
Short Bond		485,199		102,051		494,656		112,146
Short-Intermediate U.S. Government		2,089,305		—		2,173,842		—
Tax-Advantaged Ultra-Short Fixed Income		9,973		334,315		10,010		354,862
Ultra-Short Fixed Income		21,457		231,597		100,254		65,033
U.S. Government		441,976		—		467,518		—

The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes, and the timing of income recognition on investments in real estate investment trusts and Passive Foreign Investment Companies.

At September 30, 2013, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation (depreciation) on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:

Amounts in thousands	UNREALIZED APPRECIATION		UNREALIZED DEPRECIATION			NET APPRECIATION (DEPRECIATION)			COST BASIS OF SECURITIES
Core Bond		$1,782		$(958)			$824			$92,021
Fixed Income		36,504		(23,742	)		12,762			1,788,800
High Yield Fixed Income		127,152		(72,877	)		54,275			5,410,413
Short Bond		1,399		(2,553	)		(1,154	)		303,777
Short-Intermediate U.S. Government		1,491		(460	)		1,031			250,223
Tax-Advantaged Ultra-Short Fixed Income		7,335		(1,804	)		5,531			2,313,733
Ultra-Short Fixed Income		4,202		(955	)		3,247			1,296,563
U.S. Government		327		(78	)		249			43,656

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013 were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Core Bond		1,960		$20,490		76		$782		(731	)		($7,704	)		1,305			$13,568
Fixed Income		18,413		189,145		372		3,822		(21,544	)		(220,878	)		(2,759	)		(27,911	)
High Yield Fixed Income		94,947		719,641		2,358		17,896		(150,203	)		(1,139,898	)		(52,898	)		(402,361	)
Short Bond		6,591		126,156		68		1,301		(6,531	)		(124,722	)		128			2,735
Short-Intermediate U.S. Government		1,929		18,973		20		198		(4,719	)		(46,531	)		(2,770	)		(27,360	)
Tax-Advantaged Ultra-Short Fixed Income		80,070		812,224		116		1,172		(76,275	)		(773,832	)		3,911			39,564
Ultra-Short Fixed Income		49,188		501,876		121		1,236		(30,233	)		(308,587	)		19,076			194,525
U.S. Government		134		1,301		6		54		(921	)		(8,904	)		(781	)		(7,549	)

NORTHERN FUNDS SEMIANNUAL REPORT 103 FIXED INCOME FUNDS

FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

Transactions in capital shares for the fiscal year or period ended March 31, 2013 were as follows:

Amounts in thousands	SHARES SOLD			PROCEEDS FROM SHARES SOLD			SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Core Bond		817			$8,649			216		$2,292		(1,467	)		$(15,531	)		(434	)		$(4,590	)
Fixed Income		43,400	*		465,632	*		3,414		36,243		(38,921	)		(413,818	)		7,893			88,057
High Yield Fixed Income		237,747			1,751,741			5,892		43,829		(208,840	)		(1,557,494	)		34,799			238,076
Short Bond		8,371			161,223			27		513		(740	)		(14,260	)		7,658			147,476
Short-Intermediate U.S. Government		10,124	**		103,401	**		729		7,298		(15,469	)		(157,497	)		(4,616	)		(46,798	)
Tax-Advantaged Ultra-Short Fixed Income		198,095			2,009,648			235		2,389		(110,201	)		(1,117,669	)		88,129			894,368
Ultra-Short Fixed Income		97,221			993,145			295		3,010		(35,410	)		(361,555	)		62,106			634,600
U.S. Government		651			6,533			173		1,710		(1,946	)		(19,563	)		(1,122	)		(11,320	)

* Numbers include assets received in connection with fund reorganization of approximately 13,687,000 in shares sold and $148,529,000 in proceeds from shares sold. For further information on the reorganization, see Note 12.

** Numbers include assets received in connection with fund reorganization of approximately 5,685,000 in shares sold and $58,385,000 in proceeds from shares sold. For further information on the reorganization, see Note 12.

Transactions in capital shares/Class A shares for the fiscal year ended November 30, 2012 for the Core Bond and Short Bond Funds were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Core Bond		8,841		$96,855		407		$4,316		(10,141	)		$(110,797	)		(893	)		$(9,626	)
Short Bond		14,940		287,272		70		1,332		(13,159	)		(253,351	)		1,851			35,253

9. DERIVATIVE INSTRUMENTS

None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.

Below are the types of derivatives by primary risk exposure as presented in the Statement of Assets and Liabilities as of September 30, 2013:

Amounts in thousands		ASSETS			LIABILITIES
FUND NAME	DERIVATIVE TYPE	STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE		STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE		COUNTERPARTY
Fixed Income	Interest rate contracts	Net Assets — Unrealized appreciation		$  —*	Net unrealized depreciation		$(1,891)*	Credit Suisse
Short Bond	Interest rate contracts	Net Assets — Unrealized appreciation		—*	Net unrealized depreciation		(455)*	Credit Suisse
Short-Intermediate U.S. Government	Interest rate contracts	Net Assets — Unrealized appreciation		72*	Net unrealized depreciation		(182)*	Credit Suisse
U.S. Government	Interest rate contracts	Net Assets — Unrealized appreciation		8*	Net unrealized depreciation		(34)*	Credit Suisse

* Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported in the Statements of Assets and Liabilities.

FIXED INCOME FUNDS 104 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2013:

Amounts in thousands		AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
Core Bond	Interest rate contracts	Net realized gains (losses) on futures contracts		$(121	)
Fixed Income	Interest rate contracts	Net realized gains (losses) on futures contracts		2,816
Short Bond	Interest rate contracts	Net realized gains (losses) on futures contracts		754
Short-Intermediate U.S. Government	Interest rate contracts	Net realized gains (losses) on futures contracts		(592	)
U.S. Government	Interest rate contracts	Net realized gains (losses) on futures contracts		(139	)
Amounts in thousands		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
Core Bond	Interest rate contracts	Net change in unrealized appreciation (depreciation) on futures contracts		$(11	)
Fixed Income	Interest rate contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(1,367	)
Short Bond	Interest rate contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(390	)
Short-Intermediate U.S. Government	Interest rate contracts	Net change in unrealized appreciation (depreciation) on futures contracts		34
U.S. Government	Interest rate contracts	Net change in unrealized appreciation (depreciation) on futures contracts		10

Volume of derivative activity for the six months ended September 30, 2013*:

	FUTURES INTEREST RATE CONTRACTS
	NUMBER OF TRADES		AVERAGE NOTIONAL AMOUNT**
Core Bond		4		$2,014
Fixed Income		6		87,946
Short Bond		5		19,596
Short-Intermediate U.S. Government		4		40,222
U.S. Government		5		4,173

* Activity during the period is measured by number of trades during the period and average notional amount for futures interest rate contracts.

** Amounts in thousands.

10. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

11. NEW ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining

NORTHERN FUNDS SEMIANNUAL REPORT 105 FIXED INCOME FUNDS

FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

whether an entity is an investment company for which fair value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for, its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have to the financial statement amounts and footnote disclosures, if any.

12. REORGANIZATION

On August 9, 2012, the Board of the Trust approved a Plan of Reorganization (the “Plan”) providing for the reorganization of the series of Northern Institutional Funds (“NIF”) listed in the table below (each an “Acquired Fund”) into a corresponding series of the Trust as set forth below under the heading Acquiring Fund (each an “Acquiring Fund”). Pursuant to the Plan, all of the assets of each Acquired Fund were transferred to the corresponding Acquiring Fund, as shown in the table below, in exchange for shares of the Acquiring Fund of equal aggregate value and the corresponding Acquiring Fund’s assumption of all of the current and future liabilities of the Acquired Fund. The cost basis of the investments received from the Acquired Funds was carried forward to the corresponding Acquiring Funds for U.S. GAAP and tax purposes. Immediately following the reorganization, holders of Class A shares of each Acquired Fund held shares of the corresponding Acquiring Fund having an aggregate net asset value equal to the aggregate net asset value of the Class A shares held in the Acquired Fund immediately prior to the reorganization. The reorganization was accomplished by a tax-free exchange of shares and was completed on October 26, 2012 and October 29, 2012 as set forth in the table.

	ACQUIRED FUND				ACQUIRING FUND
Amounts in thousands except Share Conversion Ratio	NIF Bond Portfolio*		NIF U.S. Government Securities Portfolio*		NF Fixed Income Fund		NF Short-Intermediate U.S. Government Fund
SHARE CONVERSION RATIO		2.00010		1.950058		2.00010		1.950058
ACQUIRED FUND’S SHARES		5,707		2,915		NA		NA
ACQUIRING FUND’S SHARES		NA		NA		11,414		5,685
ACQUIRING FUND’S UNREALIZED APPRECIATION		7,531		173		NA		NA
NET ASSETS BEFORE THE REORGANIZATION		123,838		58,385		1,615,305		242,476
AGGREGATE NET ASSETS IMMEDIATELY AFTER THE REORGANIZATION		NA		NA		1,739,143		300,861

	ACQUIRED FUND		ACQUIRING FUND
Amounts in thousands except Share Conversion Ratio	NIF Intermediate Bond Portfolio**		NF Fixed Income Fund
SHARE CONVERSION RATIO		1.936114		1.936114
ACQUIRED FUND’S SHARES		1,174		N/A
ACQUIRING FUND’S SHARES		N/A		2,274
ACQUIRING FUND’S UNREALIZED APPRECIATION		705		NA
NET ASSETS BEFORE THE REORGANIZATION		24,692		1,741,371
AGGREGATE NET ASSETS IMMEDIATELY AFTER THE REORGANIZATION		N/A		1,766,063

FIXED INCOME FUNDS 106 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

The tables below summarize the operations of the Acquired Funds for the period from December 1, 2011 to October 26 and October 29, 2012, as applicable, and the combined Funds’ results of operations for the year ended March 31, 2013.

For the period from December 1, 2011 to reorganization date (in thousands)

FUND	NET INVESTMENT INCOME (LOSS)		NET REALIZED GAINS AND NET CHANGE IN UNREALIZED APPRECIATION/ (DEPRECIATION) ON INVESTMENTS		NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
NIF Bond Portfolio*		$6,959		$11,363		$18,322
NIF Intermediate Bond Portfolio**		718		1,393		2,111
NIF U.S. Government Securities Portfolio*		164		873		1,037

* Reorganization completed on October 26, 2012.

** Reorganization completed on October 29, 2012.

For the year ended March 31, 2013 (In thousands)

FUND	NET INVESTMENT INCOME (LOSS)		NET REALIZED GAINS AND NET CHANGE IN UNREALIZED APPRECIATION/ (DEPRECIATION) ON INVESTMENTS		NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
NF Fixed Income Fund		$45,962		$48,351		$94,313
NF Short-Intermediate U.S. Government Fund		958		4,129		5,087

Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practical to separate the amounts of net investment income (loss), net realized gains and change in unrealized appreciation (depreciation) on investments, and net increase (decrease) in net assets resulting from operations, of the Acquired Funds that have been included in the Acquiring Funds’ Statements of Operations since October 26, 2012 and October 29, 2012, as applicable.

13. SUBSEQUENT EVENTS

Effective October 1, 2013, redemption fees have been eliminated on the Tax-Advantaged Ultra-Short Fixed Income and Ultra-Short Fixed Income Funds. As of such effective date, redemption fees will not be charged to these two Funds regardless of when shares were purchased.

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that other than the items noted above and in Note 4 – Bank Borrowings, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

NORTHERN FUNDS SEMIANNUAL REPORT 107 FIXED INCOME FUNDS

FIXED INCOME FUNDS

FUND EXPENSES

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the High Yield Fixed Income, Tax-Advantaged Ultra-Short Fixed Income and Ultra-Short Fixed Income Funds; and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013 through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 98), if any, in the High Yield Fixed Income, Tax-Advantaged Ultra-Short Fixed Income and Ultra-Short Fixed Income Funds. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 102), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

CORE BOND

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.40	%	$	1,000.00	$	980.20	$	1.99
Hypothetical**		0.40	%	$	1,000.00	$	1,023.06	$	2.03

FIXED INCOME

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.45	%	$	1,000.00	$	978.70	$	2.23
Hypothetical**		0.45	%	$	1,000.00	$	1,022.81	$	2.28

HIGH YIELD FIXED INCOME

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.76	%	$	1,000.00	$	1,008.80	$	3.83
Hypothetical**		0.76	%	$	1,000.00	$	1,021.26	$	3.85

SHORT BOND

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.40	%	$	1,000.00	$	995.50	$	2.00
Hypothetical**		0.40	%	$	1,000.00	$	1,023.06	$	2.03

SHORT-INTERMEDIATE U.S. GOVERNMENT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.40	%	$	1,000.00	$	987.10	$	1.99
Hypothetical**		0.40	%	$	1,000.00	$	1,023.06	$	2.03

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.25	%	$	1,000.00	$	1,002.10	$	1.25
Hypothetical**		0.25	%	$	1,000.00	$	1,023.82	$	1.27

ULTRA-SHORT FIXED INCOME

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.25	%	$	1,000.00	$	1,002.50	$	1.25
Hypothetical**		0.25	%	$	1,000.00	$	1,023.82	$	1.27

FIXED INCOME FUNDS 108 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

U.S. GOVERNMENT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.41	%	$	1,000.00	$	977.80	$	2.03
Hypothetical**		0.41	%	$	1,000.00	$	1,023.01	$	2.08

* Expenses are calculated using the Funds' annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

NORTHERN FUNDS SEMIANNUAL REPORT 109 FIXED INCOME FUNDS

FIXED INCOME FUNDS

APPROVAL OF ADVISORY AGREEMENT

The Board of Trustees oversees the management of Northern Funds (the “Trust”), and reviews the investment performance and expenses of the investment funds covered by this Report (the “Funds”) at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Funds with Northern Trust Investments, Inc. (“Northern”).

The Advisory Agreement was re-approved with respect to all of the Funds by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Trust’s Governance Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Funds. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Funds in comparison to other mutual funds and benchmark indices; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Funds; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Funds; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Funds’ investment performance over different time periods in comparison to the investment performance of mutual fund peer groups and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administrative) fees and the total expenses (after reimbursements) borne by the Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the investment advisory fees charged to the Funds compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (v) Northern’s staffing for the Funds and the experience of the portfolio managers, credit research and other personnel; (vi) Northern’s financial resources and its ability to attract and retain portfolio management talent; (vii) Northern’s investments in technology to benefit the Funds; (viii) the fees paid by the Funds to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (ix) the benefits received by Northern and its affiliates from their relationships with the Funds. In evaluating the Advisory Agreement for each of the Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. In this regard, they considered both the investment advisory services, and the other non-advisory services that are provided to the Funds by Northern and its affiliates. These services include acting as the Funds’ custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications with and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Funds. They noted Northern’s enhancements to the pricing and fund accounting systems made during the year, and other investments in technology, including the trade order management system used to process certain trades. The Trustees also considered the strength of Northern’s and its affiliates’ risk management processes, Northern’s compliance oversight program with respect to all of the Funds’ service providers and the continued active involvement of internal audit in reviewing operations related to the Funds. They noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Funds. The Trustees concluded that Northern was able to commit, and had committed, substantial financial and other resources to the operations of the Funds and was able to provide quality services to the Funds.

Performance

The Trustees considered the investment performance of the Funds. They first considered whether the Funds had operated within their respective investment objectives, as well as their

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SEPTEMBER 30, 2013 (UNAUDITED)

compliance with their investment restrictions. For Funds that had been in existence for the applicable periods, the Trustees received information on the Funds’ investment performance for one, two, three, four, five and ten years, as well as performance for the most recent quarter and year-to-date. The Trustees compared the investment performance of the Funds to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. The Trustees also reviewed the Funds’ investment performance relative to their respective performance benchmarks. The Trustees considered that the investment performance of each Fund, other than the Fixed Income Fund, High Yield Fixed Income Fund, Short-Intermediate U.S. Government Fund and U.S. Government Fund, was above its respective Lipper peer medians for the three- and five-year periods (as applicable), and each Fund, except the High Yield Fixed Income Fund, Short-Intermediate U.S. Government Fund and U.S. Government Fund, exceeded its performance benchmark for the same time periods. The Trustees placed more emphasis on recent performance for the High Yield Fixed Income Fund, which had been subject to in-depth performance reviews. They took into account that the High Yield Fixed Income Fund’s investment performance was above its Lipper peer median for the one- and three-year periods. They also noted that the investment performance for the Fixed Income Fund, Short-Intermediate U.S. Government Fund and U.S. Government Fund was above their respective Lipper peer group medians for the one-year period. The Trustees took into account Northern’s explanations for the performance rankings and comparisons.

The Trustees considered the potential impact of the relative risk parameters of the different Funds. In particular, they considered that with respect to fixed income securities, Northern had an investment style that seeks out securities with higher credit parameters than other fixed-income investment advisers. They took into consideration that Northern’s more risk averse investment strategies may cause the Funds to underperform against their peers during certain market environments. The Trustees also took into consideration the extreme market volatility in recent years and the effects of these events on the Funds’ longer term performance. In addition, the Trustees reviewed the consistency of Northern’s investment approach for the Funds and processes to address performance issues. In this regard, the Trustees believed that the in-depth performance reviews on High Yield Fixed Income Fund, as requested by the Trustees and provided by the Northern, assisted them in evaluating performance issues with respect to that Fund and resulted in improved performance for the High Yield Fixed Income Fund. The Trustees determined, based on the information received, that Northern was appropriately monitoring the underperforming Funds. Overall, the Trustees concluded that Northern had devoted appropriate resources to improving the investment performance and addressing underperformance of the Funds.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Funds’ contractual management fee rates; the Funds’ total operating expense ratios; Northern’s contractual commitments to continue expense reimbursements for at least one year with respect to the Funds; and whether a consistent methodology was in place in determining the fees and expenses of the Funds. They noted that certain voluntary expense reimbursements being made by Northern to certain Funds could be terminated at any time. The Trustees also considered that, for those Funds that were sweeping uninvested cash into a Northern affiliated money market fund, Northern was in each case rebating back to the investing Fund all of the advisory fees that were not waived by Northern of the applicable money market fund in compliance with the Funds’ exemptive order. The Trustees also considered the additional contractual expense reimbursements that were in effect during the past year.

In addition, the Trustees considered the amount of assets in the Funds; the information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship on a Fund-by-Fund basis. The Trustees also took into account fund mergers in the past year of the Fixed Income Fund and Short-Intermediate U.S. Government Fund, whereby the Funds acquired corresponding portfolios of the Northern Institutional Funds, also managed by Northern, and the related increase in assets and reduction in the contractual advisory fee rates for those Funds. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to each Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rates paid by the Funds under the Advisory Agreement and the Funds’ total operating expense ratios compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Funds’ fee rates and total operating expense ratios were prepared by Lipper. The Trustees considered that each Fund’s total expense ratio after reimbursement of expenses was below its respective Lipper peer objective median, although the contractual management fee rate for each Fund,

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APPROVAL OF ADVISORY AGREEMENT continued SEPTEMBER 30, 2013 (UNAUDITED)

other than the Ultra-Short Fixed Income Fund and Tax-Advantaged Ultra-Short Fixed Income Fund, was above its respective Lipper peer group median. The Trustees also considered information comparing the Funds’ advisory fee rates to the fee rates charged by Northern to similarly managed, private institutional accounts. They considered the difference in, and level of complexity of, services provided by Northern with regard to these private institutional accounts, as well as regulatory, operational and compliance differences, board and committee support and other differences. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Funds.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass, benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Funds may be sharing in economies of scale through the level at which the Funds’ advisory fees are set and through Northern’s contractual expense reimbursements that limit the expenses for the Funds to specific levels. In addition, the Trustees considered that each of the Funds’ advisory fees were subject to breakpoints, thus ensuring that as a Fund’s assets grew, its shareholders would receive reduced fee rates.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationship with the Funds. Those benefits included fees received by the affiliates for transfer agency, custodial and administrative functions. The Trustees also considered that many of the Funds’ shareholders had other client relationships with The Northern Trust Company. In addition, the Trustees considered that the scale of the Funds provided opportunities to Northern to obtain securities trading advantages for its other advisory clients. The Trustees also considered the extent to which Northern and its other clients, as well as the Funds, benefited from receipt of the research products and services generated by the Trust’s equity investment portfolios.

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to all of the Funds that the advisory fees paid by the Funds were reasonable in light of the services provided by Northern, its costs and the Funds’ asset levels, and that the Advisory Agreement should be approved and continued.

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FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

FIXED INCOME FUNDS 116 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME INDEX FUNDS

TABLE OF CONTENTS

2	STATEMENTS OF ASSETS AND LIABILITIES
3	STATEMENTS OF OPERATIONS
4	STATEMENTS OF CHANGES IN NET ASSETS
5	FINANCIAL HIGHLIGHTS
7	SCHEDULES OF INVESTMENTS
7	BOND INDEX FUND
71	U.S. TREASURY INDEX FUND
74	ABBREVIATIONS AND OTHER INFORMATION
75	NOTES TO THE FINANCIAL STATEMENTS
84	FUND EXPENSES
85	APPROVAL OF ADVISORY AGREEMENT
88	FOR MORE INFORMATION

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

The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, Northern Funds’ performance may be subject to substantial short-term changes.

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

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 2013 (UNAUDITED)

Amounts in thousands, except per share data	BOND INDEX FUND			U.S. TREASURY INDEX FUND(1)
ASSETS:
Investments, at cost		$2,472,154	(2)		$128,332	(3)
Investments, at value		$2,530,685	(4)		$128,434	(5)
Interest income receivable		13,890			465
Dividend income receivable		1			–
Receivable for securities sold		19,035			3,191
Receivable for variation margin on futures contracts		–			2
Receivable for fund shares sold		2,393			154
Receivable from affiliated administrator		143			13
Prepaid and other assets		24			6
Total Assets		2,566,171			132,265
LIABILITIES:
Payable for securities purchased		2,157			2,967
Payable for when-issued securities		127,564			–
Payable for fund shares redeemed		1,626			3,362
Disributions payable to shareholders		1,082			25
Payable to affiliates:
Investment advisory fees		61			6
Administration fees		60			3
Custody and accounting fees		8			1
Shareholder servicing fees		6			–
Transfer agent fees		40			2
Trustee fees		11			5
Accrued other liabilities		28			14
Total Liabilities		132,643			6,385
Net Assets		$2,433,528			$125,880
ANALYSIS OF NET ASSETS:
Capital stock		$2,385,383			$124,517
Accumulated undistributed net investment loss		(4,105	)		(3	)
Accumulated undistributed net realized gain (loss)		(6,281	)		1,210
Net unrealized appreciation		58,531			156
Net Assets		$2,433,528			$125,880
Shares Outstanding ($.0001 par value, unlimited authorization)		231,320			5,802
Net Asset Value, Redemption and Offering Price Per Share		$10.52			$21.70

⁽¹⁾  Formerly the U.S. Treasury Index Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

⁽²⁾  Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $104,724.

⁽³⁾  Amounts include cost from the U.S. Government Portfolio of the Northern Institutional Funds of $4,710.

⁽⁴⁾  Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $104,724.

⁽⁵⁾  Amounts include value from the U.S. Government Portfolio of the Northern Institutional Funds of $4,710.

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME INDEX FUNDS

STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 2013  (UNAUDITED) 

Amounts in thousands	BOND INDEX FUND			U.S. TREASURY INDEX FUND(1)
INVESTMENT INCOME:
Interest income		$31,422			$842
Dividend income		10	(2)		–
Total Investment Income		31,432			842
EXPENSES:
Investment advisory fees		1,923			195
Administration fees		1,923			97
Custody fees		142			13
Accounting fees		138			17
Transfer agent fees		1,282			65
Blue sky fees		18			12
SEC fees		5			2
Printing fees		30			9
Professional fees		26			16
Shareholder servicing fees		44			–
Trustee fees		16			5
Other		16			5
Total Expenses		5,563			436
Less expenses reimbursed by investment adviser		(3,712	)		(338	)
Net Expenses		1,851			98
Net Investment Income		29,581			744
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		(4,432	)		422
Futures contracts		–			(136	)
Net change in unrealized appreciation (depreciation) on:
Investments		(77,248	)		(3,608	)
Futures contracts		–			54
Net Losses		(81,680	)		(3,268	)
Net Decrease in Net Assets Resulting from Operations		$(52,099	)		$(2,524	)

⁽¹⁾  Formerly the U.S. Treasury Index Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

⁽²⁾  Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $8.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

	BOND INDEX FUND						U.S. TREASURY INDEX FUND (1)
Amounts in thousands	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FOUR MONTHS ENDED MARCH 31, 2013			FISCAL YEAR ENDED NOV. 30, 2012
OPERATIONS:
Net investment income		$29,581			$61,895			$744			$542			$1,978
Net realized gains (losses)		(4,432	)		20,678			286			970			4,716
Net change in unrealized appreciation (depreciation)		(77,248	)		5,476			(3,554	)		(2,430	)		(2,442	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(52,099	)		88,049			(2,524	)		(918	)		4,252
CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets resulting from Shares/Class A share transactions		(116,866	)		145,975			(3,012	)		(1,231	)		3,325
Net increase (decrease) in Net Assets Resulting from Capital Share Transactions		(116,866	)		145,975			(3,012	)		(1,231	)		3,325
DISTRIBUTIONS TO SHARES/ CLASS A SHARE HOLDERS:
From net investment income		(33,685	)		(67,842	)		(744	)		(541	)		(2,040	)
From net realized gains		–			(20,352	)		–			(4,729	)		(2,761	)
Total Distributions to Shares/Class A Shareholders		(33,685	)		(88,194	)		(744	)		(5,270	)		(4,801	)
Total Increase (Decrease) in Net Assets		(202,650	)		145,830			(6,280	)		(7,419	)		2,776
NET ASSETS :
Beginning of period		2,636,178			2,490,348			132,160			139,579			136,803
End of period		$2,433,528			$2,636,178			$125,880			$132,160			$139,579
Accumulated Undistributed Net Investment Income (Loss)		$(4,105	)		$(1	)		$(3	)		$(3	)		$(4	)

⁽¹⁾  Formerly the U.S. Treasury Index Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME INDEX FUNDS

FINANCIAL HIGHLIGHTS

BOND INDEX FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FISCAL YEAR ENDED MARCH 31, 2013			FISCAL YEAR ENDED MARCH 31, 2012			FISCAL YEAR ENDED MARCH 31, 2011			FISCAL YEAR ENDED MARCH 31, 2010			FISCAL YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.87			$10.86			$10.46			$10.39			$10.14			$10.24
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.12			0.27			0.31			0.34			0.36			0.42
Net realized and unrealized gains (losses)		(0.33	)		0.12			0.48			0.15			0.28			(0.10	)
Total from Investment Operations		(0.21	)		0.39			0.79			0.49			0.64			0.32
LESS DISTRIBUTIONS PAID:
From net investment income		(0.14	)		(0.29	)		(0.32	)		(0.35	)		(0.37	)		(0.42	)
From net realized gains		–			(0.09	)		(0.07	)		(0.07	)		(0.02	)		–
Total Distributions Paid		(0.14	)		(0.38	)		(0.39	)		(0.42	)		(0.39	)		(0.42	)
Net Asset Value, End of Period		$10.52			$10.87			$10.86			$10.46			$10.39			$10.14
Total Return(1)		(1.93	)%		3.62	%		7.65	%		4.73	%		6.33	%		3.24	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of Period		$2,433,528			$2,636,178			$2,490,348			$1,960,060			$1,822,915			$1,293,254
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.14	%(3)		0.14	%(3)		0.21	%(3)		0.23	%(3)		0.25	%		0.25	%
Expenses, before reimbursements and credits		0.43	%		0.44	%		0.44	%		0.44	%		0.43	%		0.44	%
Net investment income, net of reimbursements and credits		2.31	%(3)		2.45	%(3)		2.86	%(3)		3.14	%(3)		3.50	%		4.16	%
Net investment income, before reimbursements and credits		2.02	%		2.15	%		2.63	%		2.93	%		3.32	%		3.97	%
Portfolio Turnover Rate		53.65	%		100.20	%		129.27	%		121.58	%		123.18	%		93.94	%

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

⁽²⁾  Annualized for periods less than one year.

⁽³⁾  The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affliliated money market funds of approximately $75,000, $296,000, $169,000 and $479,000, which represents less than 0.005, 0.01, 0.01 and 0.02 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

FINANCIAL HIGHLIGHTS

U.S. TREASURY INDEX FUND(1)	SHARES/CLASS A SHARES
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			FOUR MONTHS ENDED MARCH 31, 2013			FISCAL YEAR ENDED NOV. 30, 2012			FISCAL YEAR ENDED NOV. 30, 2011			FISCAL YEAR ENDED NOV. 30, 2010(2)			FISCAL YEAR ENDED NOV. 30, 2009(2)			FISCAL YEAR ENDED NOV. 30, 2008(2)
Net Asset Value, Beginning of Period		$22.25			$23.29			$23.38			$22.84			$22.92			$23.15			$21.79
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.13			0.09			0.33			0.49			0.59			0.72			0.79
Net realized and unrealized gains (losses)		(0.55	)		(0.24	)		0.39			0.95			0.44			(0.18	)		1.35
Total from Investment Operations		(0.42	)		(0.15	)		0.72			1.44			1.03			0.54			2.14
LESS DISTRIBUTIONS PAID:
From net investment income		(0.13	)		(0.09	)		(0.34	)		(0.49	)		(0.59	)		(0.76	)		(0.78	)
From net realized gains		–			(0.80	)		(0.47	)		(0.41	)		(0.52	)		(0.01	)		–
Total Distributions Paid		(0.13	)		(0.89	)		(0.81	)		(0.90	)		(1.11	)		(0.77	)		(0.78	)
Net Asset Value, End of Period		$21.70			$22.25			$23.29			$23.38			$22.84			$22.92			$23.15
Total Return(3)		(1.87	)%		(0.70	)%		3.17	%		6.60	%		4.74	%		2.39	%		10.10	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$125,880			$132,160			$139,579			$136,803			$141,733			$135,324			$216,204
Ratio to average net assets of:(4)
Expenses, net of waivers, reimbursements and credits		0.15	%(5)		0.15	%(5)		0.26	%(5)		0.26	%(5)		0.26	%		0.26	%		0.26	%
Expenses, before waivers, reimbursements and credits		0.67	%		0.68	%		0.52	%		0.48	%		0.48	%		0.47	%		0.47	%
Net investment income, net of waivers, reimbursements and credits		1.15	%(5)		1.20	%(5)		1.43	%(5)		2.17	%(5)		2.60	%		3.13	%		3.57	%
Net investment income, before waivers, reimbursements and credits		0.63	%		0.67	%		1.17	%		1.95	%		2.38	%		2.92	%		3.36	%
Portfolio Turnover Rate		35.21	%		21.88	%		74.49	%		64.52	%		47.05	%		44.72	%		33.07	%

⁽¹⁾  Formerly the U.S. Treasury Index Portfolio of the Northern Institutional Funds. See Note 1 to the Financial Statements.

⁽²⁾  Net investment income for the year ended was calculated using the average shares outstanding method.

⁽³⁾  Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

⁽⁴⁾  Annualized for periods less than one year.

⁽⁵⁾  The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately less than $1,000, $1,000, $1,000 and less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013, four months ended March 31, 2013 and fiscal years ended November 30, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

BOND INDEX FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2. 2%
Automobile – 0.2%
Ally Auto Receivables Trust, Series 2011-5, Class A4, 1.32%, 7/15/16		$50		$50
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
Ally Auto Receivables Trust, Series 2013-1, Class A3, 0.63%, 5/15/17		100		100
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
AmeriCredit Automobile Receivables Trust, Series 2013-1, Class A3, 0.61%, 10/10/17		175		174
AmeriCredit Automobile Receivables Trust, Series 2013-2, Class A3, 0.65%, 12/8/17		50		50
AmeriCredit Automobile Receivables Trust, Series 2013-2, Class B, 1.19%, 5/8/18		25		25
AmeriCredit Automobile Receivables Trust, Series 2013-2, Class C, 1.79%, 3/8/19		25		25
AmeriCredit Automobile Receivables Trust, Series 2013-2, Class D, 2.42%, 5/8/19		25		24
Capital Auto Receivables Asset Trust, Series 2013-1, Class A2, 0.62%, 7/20/16		150		150
Capital Auto Receivables Asset Trust, Series 2013-3, Class A3, 1.31%, 12/20/17		200		201
CarMax Auto Owner Trust, Series 2013-2, Class A3, 0.64%, 1/16/18		100		100
CarMax Auto Owner Trust, Series 2013-3, Class A3, 0.97%, 4/16/18		100		100
CarMax Auto Owner Trust, Series 2013-3, Class A4, 1.49%, 1/15/19		200		201

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Automobile – 0.2% – continued
Fifth Third Auto Trust, Series 2013-A, Class A3, 0.61%, 9/15/17		$100		$100
Fifth Third Auto, Series 2013-1, Class A3, 0.88%, 10/16/17		100		100
Fifth Third Auto, Series 2013-1, Class A4, 1.30%, 2/18/20		200		201
Ford Credit Auto Owner Trust, Series 2011-B, Class A4, 1.35%, 12/15/16		100		101
Ford Credit Auto Owner Trust, Series 2012-A, Class A4, 1.15%, 6/15/17		125		126
Ford Credit Auto Owner Trust, Series 2012-D, Class A3, 0.51%, 4/15/17		100		100
Ford Credit Auto Owner Trust, Series 2013-A, Class A3, 0.55%, 7/15/17		100		100
Ford Credit Auto Owner Trust, Series 2013-B, Class A4, 0.76%, 8/15/18		100		99
Ford Credit Auto Owner Trust, Series 2013-B, Class B, 1.11%, 10/15/18		100		98
Ford Credit Auto Owner Trust, Series 2013-C, Class A3, 0.82%, 12/15/17		100		100
Honda Auto Receivables Owner Trust, Series 2012-1, Class A4, 0.97%, 4/16/18		200		201
Honda Auto Receivables Owner Trust, Series 2013-1, Class A3, 0.48%, 11/21/16		150		150
Honda Auto Receivables Owner Trust, Series 2013-2, Class A3, 0.53%, 2/16/17		100		100
Hyundai Auto Receivables Trust, Series 2012-C, Class A3, 0.53%, 4/17/17		125		125
Hyundai Auto Receivables Trust, Series 2013-A, Class A3, 0.56%, 7/17/17		100		100
Hyundai Auto Receivables Trust, Series 2013-B, Class A3, 0.71%, 9/15/17		125		125

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Automobile – 0.2% – continued
Hyundai Auto Receivables Trust, Series 2013-B, Class A4, 1.01%, 2/15/19		$75		$75
Hyundai Auto Receivables Trust, Series 2013-B, Class C, 1.71%, 2/15/19		65		65
Hyundai Auto Receivables Trust, Series 2013-C, Class A3, 1.01%, 2/15/18		100		100
Nissan Auto Receivables Owner Trust, Series 2011-B, Class A4, 1.24%, 1/16/18		50		50
Nissan Auto Receivables Owner Trust, Series 2012-B, Class A3, 0.46%, 10/17/16		100		100
Nissan Auto Receivables Owner Trust, Series 2013-A, Class A4, 0.75%, 7/15/19		100		99
Nissan Auto Receivables Owner Trust, Series 2013-B , Class A3, 0.84%, 11/15/17		200		200
Nissan Auto Receivables Owner Trust, Series 2013-B , Class A4, 1.31%, 10/15/19		100		100
Santander Drive Auto Receivables Trust, Series 2013-1, Class A3, 0.62%, 6/15/17		125		124
Santander Drive Auto Receivables Trust, Series 2013-2, Class A3, 0.70%, 9/15/17		100		100
Toyota Auto Receivables Owner Trust, Series 2012-B, Class A3, 0.46%, 7/15/16		100		100
Toyota Auto Receivables Owner Trust, Series 2012-B, Class A4, 0.61%, 1/16/18		200		199
Volkswagen Auto Loan Enhanced Trust, Series 2012-2, Class A3, 0.46%, 1/20/17		250		249
Volkswagen Auto Loan Enhanced Trust, Series 2013-1, Class A3, 0.56%, 8/21/17		150		149
World Omni Auto Receivables Trust, Series 2012-B, Class A3, 0.61%, 6/15/17		100		100

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Automobile – 0.2% – continued
World Omni Auto Receivables Trust, Series 2013-A, Class A3, 0.64%, 4/16/18		$100		$100
				5,536
Commercial Mortgage-Backed Securities – 1.8%
Banc of America Commercial Mortgage Trust, Series 2006-2, Class A4, 5.92%, 5/10/45		200		219
Banc of America Commercial Mortgage Trust, Series 2006-4, Class A4, 5.63%, 7/10/46		400		439
Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.68%, 7/10/46		400		439
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.41%, 9/10/47		250		274
Banc of America Commercial Mortgage Trust, Series 2007-1, Class A4, 5.45%, 1/15/49		450		495
Banc of America Commercial Mortgage Trust, Series 2008-1, Class A4, 6.40%, 2/10/51		500		572
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-6, Class AJ, 5.36%, 9/10/47		325		346
Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4A, 4.87%, 9/11/42		400		423
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW13, Class A4, 5.54%, 9/11/41		660		724
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW14, Class A4, 5.20%, 12/11/38		500		549
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T24, Class A4, 5.54%, 10/12/41		250		275
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW16, Class A4, 5.90%, 6/11/40		750		847

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.70%, 6/11/50		$250		$282
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T26, Class A4, 5.47%, 1/12/45		500		558
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class A4, 5.74%, 9/11/42		1,050		1,191
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.84%, 9/11/42		250		277
CD Commercial Mortgage Trust, Series 2005-CD1, Class A4, 5.39%, 7/15/44		500		533
CD Commercial Mortgage Trust, Series 2006-CD3, Class A5, 5.62%, 10/15/48		700		768
CD Commercial Mortgage Trust, Series 2007-CD5, Class A4, 5.89%, 11/15/44		490		552
CFCRE Commercial Mortgage Trust, Series 2011-C2, Class A2, 3.06%, 12/15/47		200		208
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3, 5.95%, 3/15/49		600		656
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4, 5.43%, 10/15/49		500		550
Citigroup Commercial Mortgage Trust, Series 2012-GC8, Class A4, 3.02%, 9/10/45		200		192
Citigroup Commercial Mortgage Trust, Series 2013-GC11, Class A2, 1.99%, 4/10/46		100		100
Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class A4, 4.37%, 9/10/46		100		100
Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class AS, 4.65%, 9/10/46		100		103
COBALT CMBS Commercial Mortgage Trust, Series 2006-C1, Class A4, 5.22%, 8/15/48		250		271

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
COBALT CMBS Commercial Mortgage Trust, Series 2007-C2, Class A3, 5.48%, 4/15/47		$150		$167
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, 6.21%, 12/10/49		130		146
Commercial Mortgage Pass-Through Certificates, Series 2012-CR3, Class A3,
2.82%, 11/15/45		175		165
Commercial Mortgage Pass-Through Certificates, Series 2012-CR5, Class A4, 2.77%, 12/10/45		100		94
Commercial Mortgage Trust, Series 2005-C6, Class A5A, 5.12%, 6/10/44		1,000		1,060
Commercial Mortgage Trust, Series 2006-C8, Class A4, 5.31%, 12/10/46		500		548
Commercial Mortgage Trust, Series 2006-GG7, Class A4, 6.06%, 7/10/38		275		302
Commercial Mortgage Trust, Series 2007-GG11, Class A4, 5.74%, 12/10/49		400		449
Commercial Mortgage Trust, Series 2007-GG9, Class A4, 5.44%, 3/10/39		400		443
Commercial Mortgage Trust, Series 2012-CR2, Class A4, 3.15%, 8/15/45		100		97
Commercial Mortgage Trust, Series 2012-CR4, Class A3, 2.85%, 10/15/45		150		142
Commercial Mortgage Trust, Series 2012-LC4, Class A4, 3.29%, 12/10/44		100		99
Commercial Mortgage Trust, Series 2013-CR10, Class A4, 4.21%, 8/10/46		100		104
Commercial Mortgage Trust, Series 2013-CR9, Class A4, 4.38%, 7/10/45		200		209
Commercial Mortgage Trust, Series 2013-LC6, Class A4, 2.94%, 1/10/46		150		142
Credit Suisse Commercial Mortgage Trust, Series 2006-C1, Class A4, 5.57%, 2/15/39		500		542

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
Credit Suisse Commercial Mortgage Trust, Series 2006-C4, Class A3, 5.47%, 9/15/39		$716		$782
Credit Suisse Commercial Mortgage Trust, Series 2006-C5, Class A3, 5.31%, 12/15/39		500		546
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C5, Class A4, 5.10%, 8/15/38		600		635
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C6, Class AJ, 5.23%, 12/15/40		390		414
DBUBS Mortgage Trust, Series 2011-LC3A, Class A2, 3.64%, 8/10/44		175		185
GE Capital Commercial Mortgage Corp., Series 2005-C2, Class A4, 4.98%, 5/10/43		700		735
GE Capital Commercial Mortgage Trust Corp., Series 2007-C1, Class A4, 5.54%, 12/10/49		300		330
GS Mortgage Securities Corp. II, Series 2012-GCJ9, Class A3, 2.77%, 11/10/45		175		164
GS Mortgage Securities Corp. II, Series 2013-GC10, Class A5, 2.94%, 2/10/46		100		94
GS Mortgage Securities Trust, Series 2006-GG6, Class A4, 5.55%, 4/10/38		300		325
GS Mortgage Securities Trust, Series 2007-GG10, Class A4, 5.99%, 8/10/45		525		582
GS Mortgage Securities Trust, Series 2011-GC5, Class A2, 3.00%, 8/10/44		125		130
GS Mortgage Securities Trust, Series 2011-GC5, Class A4, 3.71%, 8/10/44		150		154
GS Mortgage Securities Trust, Series 2012-GC6, Class A3, 3.48%, 1/10/45		200		201
GS Mortgage Securities Trust, Series 2013-GC14, Class A5, 4.24%, 8/10/46		150		156

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
GS Mortgage Securities Trust, Series 2013-GCJ12, Class A4, 3.14%, 6/10/46		$100		$95
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB12, Class A4, 4.90%, 9/12/37		300		316
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-CB13, Class A4, 5.42%, 1/12/43		400		428
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP2, Class A4, 4.74%, 7/15/42		300		315
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP3, Class A4A, 4.94%, 8/15/42		200		212
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class AJ, 5.49%, 12/15/44		370		395
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB14, Class A4, 5.48%, 12/12/44		150		161
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A4, 6.06%, 4/15/45		400		439
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9, Class A3, 5.34%, 5/15/47		500		550
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.44%, 6/12/47		600		663
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB19, Class A4, 5.90%, 2/12/49		700		783
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-LD11, Class A4, 6.00%, 6/15/49		378		425

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-LD12, Class A4, 5.88%, 2/15/51		$215		$242
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.42%, 1/15/49		500		553
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C5, Class A3, 4.17%, 8/15/46		200		211
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-C6, Class A3, 3.51%, 5/15/45		200		200
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-CBX, Class A4, 3.48%, 6/15/45		125		124
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class A5, 3.14%, 12/15/47		150		144
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS, 3.37%, 12/15/47		50		47
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C13, Class A4, 3.99%, 1/15/46		100		102
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A4, 5.66%, 3/15/39		200		217
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class AM, 5.71%, 3/15/39		185		200
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4, 5.37%, 9/15/39		800		880
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3, 5.43%, 2/15/40		415		457
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2, 6.32%, 4/15/41		500		578

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A4, 6.04%, 6/12/50		$650		$729
ML-CFC Commercial Mortgage Trust, Series 2006-2, Class A4, 6.09%, 6/12/46		400		440
ML-CFC Commercial Mortgage Trust, Series 2007-6, Class A4, 5.49%, 3/12/51		150		166
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 6.09%, 8/12/49		500		564
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2012-C6, Class A4, 2.86%, 11/15/45		200		190
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class A4, 4.37%, 8/15/46		100		104
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C7, Class A4, 2.92%, 2/15/46		175		166
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C9, Class A4, 3.10%, 5/15/46		200		191
Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A4, 6.11%, 6/11/49		300		336
Morgan Stanley Capital I Trust, Series 2007-T27, Class A4, 5.82%, 6/11/42		500		565
Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.46%, 1/11/43		230		267
Morgan Stanley Capital I Trust, Series 2005-HQ10, Class A4, 5.33%, 11/12/41		100		110
Morgan Stanley Capital I Trust, Series 2005-HQ7, Class A4, 5.38%, 11/14/42		520		553
Morgan Stanley Capital I Trust, Series 2006-IQ11, Class A4, 5.85%, 10/15/42		444		479
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A4, 5.33%, 12/15/43		505		553
Morgan Stanley Capital I Trust, Series 2006-T21, Class A4, 5.16%, 10/12/52		500		536

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, 5.99%, 8/12/41		$500		$553
Morgan Stanley Capital I Trust, Series 2011-C3, Class A2, 3.22%, 7/15/49		400		419
Morgan Stanley Capital I Trust, Series 2012-C4, Class A4, 3.24%, 3/15/45		150		148
UBS Commercial Mortgage Trust, Series 2012-C1, Class A3, 3.40%, 5/10/45		175		173
UBS-Barclays Commercial Mortgage Trust, Series 2012-C3, Class A4, 3.09%, 8/10/49		125		120
UBS-Barclays Commercial Mortgage Trust, Series 2012-C4, Class A5, 2.85%, 12/10/45		100		93
UBS-Barclays Commercial Mortgage Trust, Series 2013-C5, Class A4, 3.18%, 3/10/46		100		96
UBS-Barclays Commercial Mortgage Trust, Series 2013-C6, Class A4, 3.24%, 4/10/46		100		96
UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1, Class A3, 3.60%, 1/10/45		150		151
Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class A7, 5.12%, 7/15/42		200		212
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class AM, 5.52%, 12/15/44		250		266
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4, 5.42%, 1/15/45		182		195
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class AM, 5.47%, 1/15/45		500		542
Wachovia Bank Commercial Mortgage Trust, Series 2006-C24, Class AM, 5.61%, 3/15/45		125		135
Wachovia Bank Commercial Mortgage Trust, Series 2006-C26, Class AM, 6.17%, 6/15/45		450		491
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.57%, 10/15/48		500		549

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Commercial Mortgage-Backed Securities – 1.8% – continued
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.31%, 11/15/48		$200		$220
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A4, 5.51%, 4/15/47		250		274
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A3, 5.94%, 6/15/49		200		223
Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class A3, 2.92%, 10/15/45		150		142
WF-RBS Commercial Mortgage Trust, Series 2012-C10, Class A3, 2.88%, 12/15/45		100		94
WF-RBS Commercial Mortgage Trust, Series 2012-C6, Class A4, 3.44%, 4/15/45		175		175
WF-RBS Commercial Mortgage Trust, Series 2013-C12, Class A4, 3.20%, 3/15/48		100		96
WF-RBS Commercial Mortgage Trust, Series 2013-C12, Class AS, 3.56%, 3/15/48		50		48
WF-RBS Commercial Mortgage Trust, Series 2013-C14, Class A5, 3.34%, 6/15/46		150		145
WF-RBS Commercial Mortgage Trust, Series 2013-C16, Class A2, 3.22%, 7/15/46		100		100
WF-RBS Commercial Mortgage Trust, Series 2013-C16, Class A5, 4.42%, 7/15/46		250		250
				42,777
Credit Card – 0.2%
American Express Credit Account Master Trust, Series 2012-2, Class A, 0.68%, 3/15/18		300		300
American Express Credit Account Master Trust, Series 2012-5, Class A, 0.59%, 5/15/18		150		150
BA Credit Card Trust, Series 2007-A1, Class A1, 5.17%, 6/15/19		185		209
Capital One Multi-Asset Execution Trust, Series 2013-A1, Class A1, 0.63%, 11/15/18		100		100

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Credit Card – 0.2% – continued
Chase Issuance Trust, Series 2012-A3, Class A3, 0.79%, 6/15/17		$275		$276
Chase Issuance Trust, Series 2012-A4, Class A4, 1.58%, 8/16/21		250		240
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		138
Chase Issuance Trust, Series 2012-A8, Class A8, 0.54%, 10/16/17		300		299
Citibank Credit Card Issuance Trust, Series 2005-A5, Class A5, 4.55%, 6/20/17		250		267
Citibank Credit Card Issuance Trust, Series 2005-A9, Class A9, 5.10%, 11/20/17		170		186
Citibank Credit Card Issuance Trust, Series 2006-A3, Class A3, 5.30%, 3/15/18		200		221
Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.15%, 6/15/39		100		115
Citibank Credit Card Issuance Trust, Series 2012-A1, Class A1, 0.55%, 10/10/17		150		150
Citibank Credit Card Issuance Trust, Series 2013-A6, Class A6, 1.32%, 9/7/18		150		151
Discover Card Execution Note Trust, Series 2007-A1, Class A1, 5.65%, 3/16/20		300		348
Discover Card Execution Note Trust, Series 2012-A3, Class A3, 0.86%, 11/15/17		200		201
Discover Card Execution Note Trust, Series 2012-A6, Class A6, 1.67%, 1/18/22		350		338
GE Capital Credit Card Master Note Trust, Series 2012-6, Class A, 1.36%, 8/17/20		150		148
GE Capital Credit Card Master Note Trust, Series 2012-7, Class A, 1.76%, 9/15/22		100		96

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.2% – continued
Credit Card – 0.2% – continued
GE Capital Credit Card Master Note Trust, Series 2013-1, Class A, 1.35%, 3/15/21		$200		$194
World Financial Network Credit Card Master Trust, Series 2013-B, Class A, 0.91%, 3/16/20		200		198
				4,575
Utilities – 0.0%
AEP Texas Central Transition Funding lll LLC, Series 2012-1, Class A3, 2.84%, 3/1/26		100		96
CenterPoint Energy Restoration Bond Co. LLC, Series 2009-1, Class A2, 3.46%, 8/15/19		200		214
CenterPoint Energy Restoration Bond Co. LLC, Series 2009-1, Class A3, 4.24%, 8/15/23		100		110
CenterPoint Energy Transition Bond Co. IV LLC, Series 2012-1, Class A1, 0.90%, 4/15/18		100		100
Entergy Texas Restoration Funding LLC, Series 2009-A, Class A3, 4.38%, 11/1/23		100		110
				630
Total Asset-Backed Securities
(Cost $51,228)				53,518
CORPORATE BONDS – 18.7%
Advertising – 0.0%
Interpublic Group of (The) Cos., Inc., 2.25%, 11/15/17		135		132
Omnicom Group, Inc., 6.25%, 7/15/19		300		349
3.63%, 5/1/22		496		476
				957
Aerospace/Defense – 0.4%
Boeing (The) Co., 3.75%, 11/20/16		400		433
0.95%, 5/15/18		200		192
6.13%, 2/15/33		135		161
6.63%, 2/15/38		100		127
5.88%, 2/15/40		75		91
General Dynamics Corp., 2.25%, 7/15/16		150		155

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Aerospace/Defense – 0.4% – continued
1.00%, 11/15/17		$100		$97
3.88%, 7/15/21		250		260
3.60%, 11/15/42		155		129
L-3 Communications Corp., 3.95%, 11/15/16		150		160
5.20%, 10/15/19		250		272
4.95%, 2/15/21		40		42
Lockheed Martin Corp., 7.65%, 5/1/16		100		117
2.13%, 9/15/16		65		67
4.25%, 11/15/19		500		543
4.07%, 12/15/42		418		367
Northrop Grumman Corp., 1.75%, 6/1/18		125		123
5.05%, 8/1/19		170		191
5.05%, 11/15/40		250		248
4.75%, 6/1/43		250		236
Raytheon Co.,
4.40%, 2/15/20		510		550
2.50%, 12/15/22		150		137
4.70%, 12/15/41		100		99
United Technologies Corp., 4.88%, 5/1/15		275		294
1.80%, 6/1/17		500		509
5.38%, 12/15/17		390		448
4.50%, 4/15/20		450		498
3.10%, 6/1/22		795		782
7.50%, 9/15/29		100		134
6.05%, 6/1/36		100		118
6.13%, 7/15/38		175		211
4.50%, 6/1/42		700		680
				8,471
Agriculture – 0.3%
Altria Group, Inc., 9.70%, 11/10/18		521		689
9.25%, 8/6/19		85		112
4.75%, 5/5/21		725		769
2.85%, 8/9/22		100		92
2.95%, 5/2/23		100		91
9.95%, 11/10/38		150		224
10.20%, 2/6/39		100		152
4.25%, 8/9/42		135		112
4.50%, 5/2/43		250		216

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Agriculture – 0.3% – continued
Archer-Daniels-Midland Co., 5.45%, 3/15/18		$175		$202
4.48%, 3/1/21		150		161
5.38%, 9/15/35		175		187
5.77%, 3/1/41		130		146
4.02%, 4/16/43		56		49
Bunge Ltd. Finance Corp., 4.10%, 3/15/16		140		148
3.20%, 6/15/17		250		259
8.50%, 6/15/19		60		75
Lorillard Tobacco Co., 2.30%, 8/21/17		100		99
Philip Morris International, Inc., 2.50%, 5/16/16		100		104
1.63%, 3/20/17		500		502
5.65%, 5/16/18		625		723
4.50%, 3/26/20		250		274
4.13%, 5/17/21		250		263
2.90%, 11/15/21		300		291
2.63%, 3/6/23		100		92
6.38%, 5/16/38		280		333
3.88%, 8/21/42		150		127
4.13%, 3/4/43		100		88
Reynolds American, Inc., 7.63%, 6/1/16		150		176
3.25%, 11/1/22		175		161
4.75%, 11/1/42		205		179
6.15%, 9/15/43		65		68
				7,164
Airlines – 0.0%
Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.25%, 11/10/19		319		361
Apparel – 0.0%
NIKE, Inc., 3.63%, 5/1/43		75		65
VF Corp., 3.50%, 9/1/21		150		151
6.00%, 10/15/33		100		112
6.45%, 11/1/37		30		34
				362

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Auto Manufacturers – 0.0%
Daimler Finance North America LLC, 8.50%, 1/18/31		$175		$251
Ford Motor Co., 7.45%, 7/16/31		350		427
4.75%, 1/15/43		500		447
				1,125
Auto Parts & Equipment – 0.0%
Johnson Controls, Inc., 2.60%, 12/1/16		75		78
5.00%, 3/30/20		155		170
5.70%, 3/1/41		250		264
				512
Banks – 3.0%
American Express Centurion Bank, 0.88%, 11/13/15		75		75
Bank of America Corp., 4.50%, 4/1/15		65		68
4.75%, 8/1/15		325		346
1.50%, 10/9/15		165		166
3.63%, 3/17/16		185		195
6.50%, 8/1/16		1,000		1,133
5.75%, 8/15/16		100		110
5.63%, 10/14/16		200		223
3.88%, 3/22/17		150		160
6.00%, 9/1/17		250		283
5.75%, 12/1/17		865		976
2.00%, 1/11/18		1,155		1,136
5.65%, 5/1/18		450		508
7.63%, 6/1/19		540		662
5.63%, 7/1/20		1,000		1,120
5.88%, 1/5/21		440		499
5.00%, 5/13/21		400		430
5.70%, 1/24/22		1,665		1,860
4.10%, 7/24/23		100		99
5.88%, 2/7/42		250		278
Bank of America N.A., 6.00%, 10/15/36		250		280
Bank of New York Mellon (The) Corp., 2.95%, 6/18/15		200		208
2.30%, 7/28/16		150		155
5.50%, 12/1/17		100		111
1.30%, 1/25/18		500		489
1.35%, 3/6/18		150		146

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Banks – 3.0% – continued
5.45%, 5/15/19		$75		$86
3.55%, 9/23/21		955		978
Bank One Corp., 7.75%, 7/15/25		54		68
BB&T Corp., 5.20%, 12/23/15		600		651
3.95%, 4/29/16		250		267
2.15%, 3/22/17		250		254
1.60%, 8/15/17		50		50
1.45%, 1/12/18		80		78
2.05%, 6/19/18		100		100
Capital One Financial Corp., 2.15%, 3/23/15		180		183
5.50%, 6/1/15		250		268
1.00%, 11/6/15		100		100
3.15%, 7/15/16		195		204
Capital One N.A., 1.50%, 3/22/18		250		243
Citigroup, Inc., 2.65%, 3/2/15		150		153
2.25%, 8/7/15		125		127
5.30%, 1/7/16		800		868
1.25%, 1/15/16		250		250
1.30%, 4/1/16		150		150
3.95%, 6/15/16		1,000		1,065
4.45%, 1/10/17		250		271
5.50%, 2/15/17		225		246
6.00%, 8/15/17		100		114
6.13%, 11/21/17		1,075		1,236
1.75%, 5/1/18		150		145
6.13%, 5/15/18		350		405
5.38%, 8/9/20		500		559
4.50%, 1/14/22		735		770
4.05%, 7/30/22		90		87
3.38%, 3/1/23		150		143
3.50%, 5/15/23		190		171
6.63%, 6/15/32		100		108
6.00%, 10/31/33		350		353
8.13%, 7/15/39		1,180		1,639
5.88%, 1/30/42		30		33
6.68%, 9/13/43		125		135
Fifth Third Bancorp, 5.45%, 1/15/17		75		83

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Banks – 3.0% – continued
3.50%, 3/15/22		$200		$198
8.25%, 3/1/38		275		356
Fifth Third Bank, 0.90%, 2/26/16		250		248
Goldman Sachs Group (The), Inc., 5.50%, 11/15/14		150		158
5.13%, 1/15/15		500		526
3.30%, 5/3/15		100		103
1.60%, 11/23/15		250		252
3.63%, 2/7/16		220		232
5.75%, 10/1/16		250		279
5.63%, 1/15/17		300		330
6.25%, 9/1/17		1,300		1,483
5.95%, 1/18/18		1,935		2,187
6.15%, 4/1/18		815		932
5.38%, 3/15/20		1,295		1,426
5.25%, 7/27/21		540		583
5.75%, 1/24/22		750		832
3.63%, 1/22/23		1,000		956
5.95%, 1/15/27		150		158
6.75%, 10/1/37		1,165		1,216
6.25%, 2/1/41		300		336
HSBC Bank USA N.A., 4.88%, 8/24/20		300		323
7.00%, 1/15/39		350		420
HSBC USA, Inc., 2.38%, 2/13/15		150		153
1.63%, 1/16/18		180		176
2.63%, 9/24/18		80		81
JPMorgan Chase & Co., 5.25%, 5/1/15		350		372
5.15%, 10/1/15		1,050		1,130
1.10%, 10/15/15		250		250
3.15%, 7/5/16		935		981
6.13%, 6/27/17		100		114
2.00%, 8/15/17		125		125
6.00%, 1/15/18		1,610		1,849
1.80%, 1/25/18		1,000		986
1.63%, 5/15/18		200		194
6.30%, 4/23/19		500		586
4.95%, 3/25/20		375		410
4.40%, 7/22/20		300		318
4.63%, 5/10/21		250		266

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Banks – 3.0% – continued
4.35%, 8/15/21		$615		$637
3.25%, 9/23/22		210		198
6.40%, 5/15/38		554		653
5.60%, 7/15/41		405		437
5.40%, 1/6/42		100		105
5.63%, 8/16/43		150		149
JPMorgan Chase Bank N.A., 5.88%, 6/13/16		200		223
6.00%, 10/1/17		650		744
KeyBank N.A., 5.45%, 3/3/16		100		110
KeyCorp, 3.75%, 8/13/15		250		263
5.10%, 3/24/21		25		28
Manufacturers & Traders Trust Co., 6.63%, 12/4/17		250		294
Mellon Funding Corp., 5.00%, 12/1/14		100		104
Morgan Stanley, 4.20%, 11/20/14		280		290
4.10%, 1/26/15		500		518
6.00%, 4/28/15		2,025		2,173
5.38%, 10/15/15		200		215
1.75%, 2/25/16		135		136
3.80%, 4/29/16		150		158
5.45%, 1/9/17		325		358
6.25%, 8/28/17		350		398
5.95%, 12/28/17		175		198
6.63%, 4/1/18		1,435		1,666
7.30%, 5/13/19		645		772
5.63%, 9/23/19		475		530
5.50%, 7/28/21		565		618
4.88%, 11/1/22		450		450
3.75%, 2/25/23		700		675
4.10%, 5/22/23		300		280
6.25%, 8/9/26		100		112
6.38%, 7/24/42		300		340
National City Corp., 4.90%, 1/15/15		200		210
PNC Bank N.A., 4.88%, 9/21/17		100		111
2.70%, 11/1/22		250		228
2.95%, 1/30/23		250		231
3.80%, 7/25/23		250		245

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Banks – 3.0% – continued
PNC Financial Services Group (The), Inc., 2.85%, 11/9/22		$100		$92
PNC Funding Corp., 4.25%, 9/21/15		250		266
2.70%, 9/19/16		60		62
6.70%, 6/10/19		600		724
4.38%, 8/11/20		500		537
3.30%, 3/8/22		150		147
State Street Corp., 3.10%, 5/15/23		225		210
SunTrust Bank, 7.25%, 3/15/18		125		149
2.75%, 5/1/23		350		318
SunTrust Banks, Inc., 3.60%, 4/15/16		100		106
Union Bank N.A., 2.63%, 9/26/18		250		252
UnionBanCal Corp., 3.50%, 6/18/22		150		147
US Bancorp, 3.15%, 3/4/15		215		223
2.45%, 7/27/15		70		72
2.20%, 11/15/16		75		77
1.65%, 5/15/17		200		201
4.13%, 5/24/21		200		212
3.00%, 3/15/22		115		112
2.95%, 7/15/22		200		188
US Bank N.A., 4.95%, 10/30/14		250		262
4.80%, 4/15/15		100		106
Wachovia Bank N.A., 5.85%, 2/1/37		250		279
6.60%, 1/15/38		300		363
Wachovia Corp., 5.63%, 10/15/16		550		616
5.75%, 6/15/17		350		403
5.75%, 2/1/18		600		693
Wells Fargo & Co., 5.00%, 11/15/14		100		105
1.25%, 2/13/15		500		504
3.63%, 4/15/15		250		261
1.50%, 7/1/15		250		253
5.13%, 9/15/16		475		525

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Banks – 3.0% – continued
2.63%, 12/15/16		$250		$260
2.10%, 5/8/17		250		255
5.63%, 12/11/17		445		511
1.50%, 1/16/18		1,180		1,161
4.60%, 4/1/21		500		543
3.50%, 3/8/22		1,000		1,001
3.45%, 2/13/23		125		117
4.13%, 8/15/23		200		196
5.38%, 2/7/35		425		454
Wells Fargo Capital X, 5.95%, 12/15/36		100		95
				73,797
Beverages – 0.4%
Anheuser-Busch Cos. LLC, 5.50%, 1/15/18		375		431
5.95%, 1/15/33		100		115
5.75%, 4/1/36		100		112
6.45%, 9/1/37		50		61
Anheuser-Busch InBev Finance, Inc., 1.25%, 1/17/18		360		353
4.00%, 1/17/43		150		135
Anheuser-Busch InBev Worldwide, Inc., 4.13%, 1/15/15		250		262
2.88%, 2/15/16		75		78
1.38%, 7/15/17		500		498
5.38%, 1/15/20		450		517
2.50%, 7/15/22		60		55
8.20%, 1/15/39		1,000		1,471
3.75%, 7/15/42		65		56
Beam, Inc., 5.38%, 1/15/16		86		94
1.88%, 5/15/17		65		65
1.75%, 6/15/18		250		245
Bottling Group LLC, 5.50%, 4/1/16		675		752
Brown-Forman Corp., 1.00%, 1/15/18		65		63
3.75%, 1/15/43		50		43
Coca-Cola (The)Co., 0.75%, 3/13/15		150		151
1.80%, 9/1/16		65		67
1.65%, 3/14/18		125		125
1.15%, 4/1/18		250		244
3.15%, 11/15/20		1,115		1,147

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Beverages – 0.4% – continued
3.30%, 9/1/21		$250		$256
Dr Pepper Snapple Group, Inc., 2.90%, 1/15/16		135		140
2.60%, 1/15/19		80		81
2.00%, 1/15/20		90		85
Molson Coors Brewing Co., 2.00%, 5/1/17		60		61
5.00%, 5/1/42		100		97
PepsiAmericas, Inc., 4.88%, 1/15/15		50		53
PepsiCo, Inc., 3.10%, 1/15/15		450		464
0.75%, 3/5/15		60		60
0.70%, 8/13/15		150		150
0.70%, 2/26/16		150		150
2.50%, 5/10/16		200		208
5.00%, 6/1/18		650		736
4.50%, 1/15/20		300		331
2.75%, 3/5/22		385		367
4.88%, 11/1/40		165		167
4.00%, 3/5/42		50		45
3.60%, 8/13/42		50		42
				10,633
Biotechnology – 0.2%
Amgen, Inc., 4.85%, 11/18/14		175		183
2.30%, 6/15/16		100		103
2.50%, 11/15/16		250		260
5.85%, 6/1/17		375		428
4.10%, 6/15/21		165		171
3.88%, 11/15/21		250		253
6.38%, 6/1/37		100		112
6.40%, 2/1/39		100		112
5.75%, 3/15/40		500		520
5.15%, 11/15/41		500		485
5.65%, 6/15/42		100		104
5.38%, 5/15/43		200		199
Celgene Corp., 2.30%, 8/15/18		35		35
5.25%, 8/15/43		85		84
Genentech, Inc., 4.75%, 7/15/15		150		161
Gilead Sciences, Inc., 3.05%, 12/1/16		100		106

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Biotechnology – 0.2% – continued
4.50%, 4/1/21		$200		$215
5.65%, 12/1/41		330		365
				3,896
Building Materials – 0.0%
CRH America, Inc., 6.00%, 9/30/16		100		113
Martin Marietta Materials, Inc., 6.60%, 4/15/18		100		113
Owens Corning, Inc., 4.20%, 12/15/22		190		185
				411
Chemicals – 0.4%
Air Products & Chemicals, Inc., 2.00%, 8/2/16		145		148
1.20%, 10/15/17		250		244
2.75%, 2/3/23		250		236
Airgas, Inc., 1.65%, 2/15/18		250		243
2.90%, 11/15/22		150		139
Cabot Corp., 5.00%, 10/1/16		250		273
2.55%, 1/15/18		300		301
CF Industries, Inc., 6.88%, 5/1/18		300		352
3.45%, 6/1/23		110		102
Dow Chemical (The) Co., 5.70%, 5/15/18		100		115
4.13%, 11/15/21		200		204
3.00%, 11/15/22		100		92
7.38%, 11/1/29		100		126
9.40%, 5/15/39		300		438
5.25%, 11/15/41		400		392
E.I. du Pont de Nemours & Co., 3.25%, 1/15/15		350		362
5.25%, 12/15/16		400		451
6.00%, 7/15/18		615		727
2.80%, 2/15/23		200		188
6.50%, 1/15/28		100		120
Eastman Chemical Co., 2.40%, 6/1/17		560		568
4.80%, 9/1/42		200		189
Ecolab, Inc., 1.00%, 8/9/15		75		75

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Chemicals – 0.4% – continued
3.00%, 12/8/16		$175		$184
1.45%, 12/8/17		100		98
4.35%, 12/8/21		250		263
5.50%, 12/8/41		105		113
Lubrizol Corp., 6.50%, 10/1/34		50		61
Monsanto Co., 2.75%, 4/15/16		50		52
5.13%, 4/15/18		240		273
2.20%, 7/15/22		65		60
5.50%, 8/15/25		50		58
5.88%, 4/15/38		506		590
Mosaic (The) Co., 4.88%, 11/15/41		100		92
PPG Industries, Inc., 1.90%, 1/15/16		50		51
6.65%, 3/15/18		220		259
2.70%, 8/15/22		60		56
7.70%, 3/15/38		200		261
Praxair, Inc., 1.05%, 11/7/17		85		83
1.25%, 11/7/18		150		145
4.50%, 8/15/19		400		452
4.05%, 3/15/21		100		105
2.45%, 2/15/22		250		235
2.20%, 8/15/22		150		137
3.55%, 11/7/42		125		104
Rohm & Haas Co., 6.00%, 9/15/17		250		287
Sherwin-Williams (The)Co., 3.13%, 12/15/14		300		309
1.35%, 12/15/17		100		98
Westlake Chemical Corp., 3.60%, 7/15/22		65		62
				10,573
Commercial Services – 0.1%
Board of Trustees of The Leland Stanford Junior University (The), 4.75%, 5/1/19		200		227
California Institute of Technology, 4.70%, 11/1/11 (1)		110		98
Catholic Health Initiatives, 1.60%, 11/1/17		85		83

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Commercial Services – 0.1% – continued
Equifax, Inc., 3.30%, 12/15/22		$365		$342
George Washington University (The), 3.49%, 9/15/22		50		49
Johns Hopkins University, 4.08%, 7/1/53		100		90
Leidos Holdings, Inc., 5.95%, 12/1/40		200		197
Massachusetts Institute of Technology, 5.60%, 7/1/11 (1)		190		223
McGraw Hill Financial, Inc., 5.90%, 11/15/17		75		81
Moody’s Corp., 4.88%, 2/15/24		250		251
Princeton University, 4.95%, 3/1/19		100		115
Trustees of Dartmouth College, 4.75%, 6/1/19		170		193
University of Pennsylvania, 4.67%, 9/1/12 (2)		100		89
Vanderbilt University, 5.25%, 4/1/19		100		115
Western Union (The) Co., 5.93%, 10/1/16		355		395
6.20%, 11/17/36		50		49
6.20%, 6/21/40		70		68
				2,665
Computers – 0.3%
Apple, Inc., 0.45%, 5/3/16		360		357
2.40%, 5/3/23		500		453
3.85%, 5/4/43		230		193
Computer Sciences Corp., 2.50%, 9/15/15		65		66
EMC Corp., 1.88%, 6/1/18		375		374
Hewlett-Packard Co., 2.13%, 9/13/15		450		456
2.65%, 6/1/16		250		256
2.60%, 9/15/17		250		252
4.38%, 9/15/21		540		524
6.00%, 9/15/41		500		461
International Business Machines Corp., 0.75%, 5/11/15		100		100

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Computers – 0.3% – continued
1.95%, 7/22/16		$500		$515
1.25%, 2/6/17		250		251
5.70%, 9/14/17		1,450		1,679
1.25%, 2/8/18		115		113
8.38%, 11/1/19		50		67
1.63%, 5/15/20		300		282
2.90%, 11/1/21		200		196
1.88%, 8/1/22		200		178
3.38%, 8/1/23		250		247
6.50%, 1/15/28		100		125
5.60%, 11/30/39		275		312
NetApp, Inc., 3.25%, 12/15/22		150		138
				7,595
Cosmetics/Personal Care – 0.1%
Colgate-Palmolive Co., 1.30%, 1/15/17		250		252
0.90%, 5/1/18		250		242
2.30%, 5/3/22		165		155
1.95%, 2/1/23		250		225
Estee Lauder (The) Cos., Inc., 2.35%, 8/15/22		50		46
6.00%, 5/15/37		100		111
Procter & Gamble (The) Co., 4.85%, 12/15/15		1,208		1,320
1.45%, 8/15/16		50		51
4.70%, 2/15/19		200		227
2.30%, 2/6/22		215		205
3.10%, 8/15/23		250		247
5.80%, 8/15/34		100		119
5.55%, 3/5/37		50		58
				3,258
Distribution/Wholesale – 0.0%
Arrow Electronics, Inc., 3.00%, 3/1/18		85		86
Diversified Financial Services – 1.8%
American Express Co., 6.15%, 8/28/17		800		933
7.00%, 3/19/18		300		361
2.65%, 12/2/22		632		580
8.15%, 3/19/38		170		238
American Express Credit Corp., 1.75%, 6/12/15		350		356

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Diversified Financial Services – 1.8% – continued
1.30%, 7/29/16		$145		$146
2.80%, 9/19/16		1,250		1,308
2.38%, 3/24/17		250		258
Ameriprise Financial, Inc., 7.30%, 6/28/19		75		94
5.30%, 3/15/20		95		108
4.00%, 10/15/23		250		253
Bear Stearns (The) Cos. LLC, 5.30%, 10/30/15		850		920
5.55%, 1/22/17		50		55
6.40%, 10/2/17		150		175
7.25%, 2/1/18		535		641
BlackRock, Inc., 3.50%, 12/10/14		275		285
1.38%, 6/1/15		170		172
5.00%, 12/10/19		130		147
4.25%, 5/24/21		150		160
3.38%, 6/1/22		250		249
Boeing Capital Corp., 2.13%, 8/15/16		275		284
Caterpillar Financial Services Corp., 4.75%, 2/17/15		275		291
1.10%, 5/29/15		40		40
2.65%, 4/1/16		150		156
2.05%, 8/1/16		150		154
1.75%, 3/24/17		100		100
5.85%, 9/1/17		592		683
1.30%, 3/1/18		40		39
5.45%, 4/15/18		300		345
Charles Schwab (The) Corp., 0.85%, 12/4/15		90		90
2.20%, 7/25/18		35		35
4.45%, 7/22/20		250		273
CME Group, Inc., 5.30%, 9/15/43		125		129
Credit Suisse USA, Inc., 4.88%, 1/15/15		375		396
Ford Motor Credit Co. LLC, 2.50%, 1/15/16		500		510
4.21%, 4/15/16		1,000		1,060
4.25%, 2/3/17		1,500		1,603
3.00%, 6/12/17		640		658
2.88%, 10/1/18		200		200

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Diversified Financial Services – 1.8% – continued
5.88%, 8/2/21		$500		$556
4.25%, 9/20/22		300		300
General Electric Capital Corp., 3.75%, 11/14/14		750		778
4.88%, 3/4/15		350		370
1.63%, 7/2/15		150		152
5.00%, 1/8/16		100		109
2.95%, 5/9/16		200		209
2.90%, 1/9/17		750		785
2.30%, 4/27/17		250		256
5.63%, 9/15/17		1,175		1,339
1.60%, 11/20/17		135		134
1.63%, 4/2/18		250		246
5.63%, 5/1/18		2,575		2,955
2.10%, 12/11/19		125		123
5.50%, 1/8/20		200		227
4.63%, 1/7/21		1,400		1,502
4.65%, 10/17/21		1,750		1,865
3.15%, 9/7/22		750		709
3.10%, 1/9/23		500		468
6.75%, 3/15/32		150		179
6.15%, 8/7/37		150		170
5.88%, 1/14/38		600		662
6.88%, 1/10/39		550		674
6.38%, 11/15/67		250		267
HSBC Finance Corp., 5.50%, 1/19/16		650		711
6.68%, 1/15/21		500		571
Jefferies Group LLC, 8.50%, 7/15/19		50		61
5.13%, 1/20/23		315		317
John Deere Capital Corp., 2.95%, 3/9/15		350		362
0.88%, 4/17/15		150		151
0.95%, 6/29/15		150		151
0.75%, 1/22/16		25		25
2.25%, 6/7/16		250		259
1.85%, 9/15/16		200		205
2.00%, 1/13/17		115		118
1.40%, 3/15/17		250		249
1.20%, 10/10/17		250		246
1.30%, 3/12/18		250		245
5.75%, 9/10/18		200		234

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Diversified Financial Services – 1.8% – continued
1.70%, 1/15/20		$150		$142
3.15%, 10/15/21		250		249
2.80%, 1/27/23		150		142
Merrill Lynch & Co., Inc., 6.05%, 5/16/16		600		661
6.40%, 8/28/17		200		230
6.88%, 4/25/18		505		595
6.88%, 11/15/18		275		327
6.11%, 1/29/37		150		154
7.75%, 5/14/38		275		340
National Rural Utilities Cooperative Finance Corp., 1.90%, 11/1/15		250		257
5.45%, 4/10/17		300		339
3.05%, 2/15/22		35		34
8.00%, 3/1/32		50		68
PACCAR Financial Corp., 0.70%, 11/16/15		130		130
0.80%, 2/8/16		70		70
1.15%, 8/16/16		65		65
1.60%, 3/15/17		90		90
Private Export Funding Corp., 1.45%, 8/15/19		2,000		1,913
Toyota Motor Credit Corp., 1.25%, 11/17/14		150		152
1.00%, 2/17/15		500		504
0.88%, 7/17/15		150		151
2.80%, 1/11/16		300		314
2.00%, 9/15/16		165		170
2.05%, 1/12/17		750		767
1.75%, 5/22/17		150		151
1.25%, 10/5/17		250		246
1.38%, 1/10/18		500		494
4.50%, 6/17/20		300		328
				42,508
Electric – 1.6%
Alabama Power Co., 0.55%, 10/15/15		60		60
6.13%, 5/15/38		50		59
5.50%, 3/15/41		150		167
4.10%, 1/15/42		75		68
3.85%, 12/1/42		60		52
Ameren Illinois Co., 2.70%, 9/1/22		250		238

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electric – 1.6% – continued
American Electric Power Co., Inc., 1.65%, 12/15/17		$40		$39
Appalachian Power Co., 4.60%, 3/30/21		250		268
7.00%, 4/1/38		75		90
Arizona Public Service Co., 4.50%, 4/1/42		230		219
Baltimore Gas & Electric Co., 5.90%, 10/1/16		50		57
3.50%, 11/15/21		275		278
CenterPoint Energy Houston Electric LLC, 2.25%, 8/1/22		105		97
Cleveland Electric Illuminating (The) Co., 5.70%, 4/1/17		130		143
CMS Energy Corp., 6.25%, 2/1/20		200		230
4.70%, 3/31/43		40		37
Commonwealth Edison Co., 5.95%, 8/15/16		125		141
1.95%, 9/1/16		100		102
6.15%, 9/15/17		225		263
5.80%, 3/15/18		300		350
4.00%, 8/1/20		410		437
6.45%, 1/15/38		200		247
3.80%, 10/1/42		90		78
4.60%, 8/15/43		100		98
Connecticut Light & Power (The) Co., 2.50%, 1/15/23		420		391
Consolidated Edison Co. of New York, Inc., 4.45%, 6/15/20		250		275
5.30%, 3/1/35		150		164
5.85%, 3/15/36		100		116
6.20%, 6/15/36		200		238
6.75%, 4/1/38		100		128
5.50%, 12/1/39		85		95
5.70%, 6/15/40		100		115
Constellation Energy Group, Inc., 4.55%, 6/15/15		100		106
7.60%, 4/1/32		100		119
Consumers Energy Co., 5.50%, 8/15/16		125		140
6.13%, 3/15/19		200		239
2.85%, 5/15/22		545		530

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electric – 1.6% – continued
Delmarva Power & Light Co., 4.00%, 6/1/42		$200		$182
Dominion Resources, Inc., 5.15%, 7/15/15		50		54
1.95%, 8/15/16		200		204
1.40%, 9/15/17		150		148
6.00%, 11/30/17		100		115
6.40%, 6/15/18		20		24
5.25%, 8/1/33		250		270
5.95%, 6/15/35		250		279
7.00%, 6/15/38		20		25
4.90%, 8/1/41		35		35
4.05%, 9/15/42		100		86
DTE Electric Co., 5.60%, 6/15/18		125		145
5.70%, 10/1/37		50		57
3.95%, 6/15/42		100		90
DTE Energy Co., 6.38%, 4/15/33		50		58
Duke Energy Carolinas LLC, 5.30%, 10/1/15		100		109
1.75%, 12/15/16		70		72
5.25%, 1/15/18		200		229
5.10%, 4/15/18		65		74
3.90%, 6/15/21		50		53
6.45%, 10/15/32		106		127
6.10%, 6/1/37		150		173
6.00%, 1/15/38		35		41
6.05%, 4/15/38		175		207
5.30%, 2/15/40		400		438
Duke Energy Corp., 1.63%, 8/15/17		100		100
6.25%, 6/15/18		100		118
Duke Energy Florida, Inc., 0.65%, 11/15/15		100		100
5.80%, 9/15/17		50		58
5.65%, 6/15/18		225		262
3.10%, 8/15/21		25		25
6.35%, 9/15/37		50		61
6.40%, 6/15/38		285		347
Duke Energy Indiana, Inc., 6.45%, 4/1/39		250		308
4.20%, 3/15/42		100		93

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electric – 1.6% – continued
Duke Energy Ohio, Inc., 3.80%, 9/1/23		$130		$133
Duke Energy Progress, Inc., 5.30%, 1/15/19		150		173
3.00%, 9/15/21		150		149
2.80%, 5/15/22		100		96
4.10%, 3/15/43		200		182
Entergy Corp., 4.70%, 1/15/17		125		134
Entergy Louisiana LLC, 1.88%, 12/15/14		85		86
6.50%, 9/1/18		100		119
5.40%, 11/1/24		150		171
Entergy Texas, Inc., 7.13%, 2/1/19		250		296
Exelon Corp., 5.63%, 6/15/35		75		75
Exelon Generation Co. LLC, 5.20%, 10/1/19		225		246
4.25%, 6/15/22		250		246
Florida Power & Light Co., 5.55%, 11/1/17		225		260
5.65%, 2/1/37		350		398
5.95%, 2/1/38		150		180
5.69%, 3/1/40		400		466
4.13%, 2/1/42		250		234
4.05%, 6/1/42		100		92
Georgia Power Co., 0.75%, 8/10/15		100		100
0.63%, 11/15/15		65		65
4.25%, 12/1/19		500		549
2.85%, 5/15/22		100		95
4.30%, 3/15/42		60		54
4.30%, 3/15/43		100		90
Kansas City Power & Light Co., 3.15%, 3/15/23		500		473
5.30%, 10/1/41		50		50
MidAmerican Energy Co., 5.30%, 3/15/18		500		573
4.80%, 9/15/43		100		102
MidAmerican Energy Holdings Co., 6.13%, 4/1/36		600		671
6.50%, 9/15/37		200		236

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electric – 1.6% – continued
Midamerican Funding LLC, 6.93%, 3/1/29		$50		$61
Mississippi Power Co., 4.25%, 3/15/42		100		88
National Fuel Gas Co., 4.90%, 12/1/21		150		158
3.75%, 3/1/23		250		240
Nevada Power Co., 6.65%, 4/1/36		100		124
5.45%, 5/15/41		35		38
NextEra Energy Capital Holdings, Inc., 1.20%, 6/1/15		50		50
6.65%, 6/15/67		25		25
Nisource Finance Corp., 5.25%, 9/15/17		450		501
5.45%, 9/15/20		200		220
4.45%, 12/1/21		165		170
5.95%, 6/15/41		100		106
5.25%, 2/15/43		100		96
4.80%, 2/15/44		80		72
Northeast Utilities, 1.45%, 5/1/18		90		88
Northern States Power Co., 5.25%, 3/1/18		125		143
6.25%, 6/1/36		100		123
5.35%, 11/1/39		65		73
NSTAR Electric Co., 2.38%, 10/15/22		100		92
Oglethorpe Power Corp., 5.38%, 11/1/40		150		154
4.20%, 12/1/42		100		87
Ohio Power Co., 6.60%, 2/15/33		100		117
Oncor Electric Delivery Co. LLC, 6.80%, 9/1/18		225		270
4.10%, 6/1/22		250		258
7.25%, 1/15/33		200		254
7.50%, 9/1/38		145		190
Pacific Gas & Electric Co., 5.63%, 11/30/17		660		758
4.25%, 5/15/21		150		158
3.25%, 9/15/21		45		44
2.45%, 8/15/22		100		90
6.05%, 3/1/34		550		612

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electric – 1.6% – continued
5.80%, 3/1/37		$100		$108
5.40%, 1/15/40		160		165
3.75%, 8/15/42		50		41
4.60%, 6/15/43		125		117
PacifiCorp, 2.95%, 2/1/22		100		98
5.25%, 6/15/35		50		54
6.10%, 8/1/36		200		237
6.25%, 10/15/37		275		333
6.00%, 1/15/39		60		71
Peco Energy Co., 5.35%, 3/1/18		25		29
4.80%, 10/15/43		100		102
Pennsylvania Electric Co., 6.05%, 9/1/17		300		338
PPL Capital Funding, Inc., 4.20%, 6/15/22		50		50
3.50%, 12/1/22		35		33
PPL Electric Utilities Corp., 3.00%, 9/15/21		250		248
2.50%, 9/1/22		50		47
6.25%, 5/15/39		275		337
5.20%, 7/15/41		35		38
PPL Energy Supply LLC, 6.50%, 5/1/18		100		113
Progress Energy, Inc., 3.15%, 4/1/22		160		153
7.75%, 3/1/31		50		64
6.00%, 12/1/39		450		502
PSEG Power LLC, 5.50%, 12/1/15		175		191
2.75%, 9/15/16		35		36
Public Service Co. of Colorado, 3.20%, 11/15/20		1,000		1,021
2.25%, 9/15/22		100		92
2.50%, 3/15/23		150		139
Public Service Co. of Oklahoma, 4.40%, 2/1/21		50		53
6.63%, 11/15/37		125		148
Public Service Electric & Gas Co., 5.30%, 5/1/18		575		658
2.30%, 9/15/18		165		168
5.38%, 11/1/39		250		280

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electric – 1.6% – continued
3.95%, 5/1/42		$50		$45
3.65%, 9/1/42		30		26
Puget Sound Energy, Inc., 5.48%, 6/1/35		25		28
6.27%, 3/15/37		75		91
5.80%, 3/15/40		250		288
5.64%, 4/15/41		80		91
San Diego Gas & Electric Co., 3.00%, 8/15/21		65		65
3.60%, 9/1/23		200		204
6.13%, 9/15/37		50		62
4.50%, 8/15/40		150		150
3.95%, 11/15/41		100		92
4.30%, 4/1/42		150		146
SCANA Corp., 4.75%, 5/15/21		75		76
4.13%, 2/1/22		135		132
Sierra Pacific Power Co., 6.00%, 5/15/16		250		282
3.38%, 8/15/23		160		158
South Carolina Electric & Gas Co., 5.25%, 11/1/18		116		133
6.05%, 1/15/38		265		309
4.35%, 2/1/42		115		107
Southern (The) Co., 2.38%, 9/15/15		250		257
1.95%, 9/1/16		200		204
2.45%, 9/1/18		35		35
Southern California Edison Co., 5.50%, 8/15/18		100		116
3.88%, 6/1/21		150		159
6.65%, 4/1/29		300		365
6.00%, 1/15/34		100		119
5.55%, 1/15/37		275		308
5.95%, 2/1/38		100		117
6.05%, 3/15/39		50		60
5.50%, 3/15/40		150		169
3.90%, 3/15/43		150		133
Southern Power Co., 4.88%, 7/15/15		150		160
5.25%, 7/15/43		60		60
Southwestern Electric Power Co., 5.88%, 3/1/18		400		454

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electric – 1.6% – continued
3.55%, 2/15/22		$150		$146
6.20%, 3/15/40		200		222
Southwestern Public Service Co., 6.00%, 10/1/36		100		113
System Energy Resources, Inc., 4.10%, 4/1/23		160		159
Tampa Electric Co., 2.60%, 9/15/22		220		207
4.10%, 6/15/42		50		45
Union Electric Co., 6.40%, 6/15/17		400		466
3.90%, 9/15/42		50		44
Virginia Electric and Power Co., 1.20%, 1/15/18		75		73
5.40%, 4/30/18		425		489
2.95%, 1/15/22		95		93
6.00%, 1/15/36		50		59
8.88%, 11/15/38		300		465
4.65%, 8/15/43		150		149
Westar Energy, Inc., 4.13%, 3/1/42		215		198
4.10%, 4/1/43		60		55
4.63%, 9/1/43		150		150
Western Massachusetts Electric Co., 3.50%, 9/15/21		85		86
Wisconsin Electric Power Co., 5.70%, 12/1/36		150		173
Wisconsin Power & Light Co., 2.25%, 11/15/22		300		274
Xcel Energy, Inc., 4.70%, 5/15/20		100		110
6.50%, 7/1/36		100		121
				38,657
Electrical Components & Equipment – 0.0%
Emerson Electric Co., 4.75%, 10/15/15		100		108
5.38%, 10/15/17		100		115
5.25%, 10/15/18		325		371
2.63%, 2/15/23		85		81
6.00%, 8/15/32		25		29
6.13%, 4/15/39		50		60
				764

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Electronics – 0.1%
Agilent Technologies, Inc., 5.50%, 9/14/15		$700		$759
3.20%, 10/1/22		225		209
3.88%, 7/15/23		250		243
Honeywell International, Inc., 5.30%, 3/15/17		200		226
5.30%, 3/1/18		290		332
5.70%, 3/15/36		720		825
5.70%, 3/15/37		125		144
Thermo Fisher Scientific, Inc., 3.20%, 5/1/15		320		330
2.25%, 8/15/16		100		102
1.85%, 1/15/18		115		113
3.60%, 8/15/21		250		246
				3,529
Engineering & Construction – 0.0%
ABB Finance USA, Inc., 1.63%, 5/8/17		90		90
Environmental Control – 0.1%
Republic Services, Inc., 3.80%, 5/15/18		165		176
5.50%, 9/15/19		220		249
5.00%, 3/1/20		400		436
5.25%, 11/15/21		500		548
3.55%, 6/1/22		100		98
Waste Management, Inc., 2.60%, 9/1/16		35		36
6.10%, 3/15/18		250		291
2.90%, 9/15/22		110		103
7.10%, 8/1/26		125		154
6.13%, 11/30/39		400		457
				2,548
Food – 0.5%
Campbell Soup Co., 4.25%, 4/15/21		150		157
2.50%, 8/2/22		55		50
3.80%, 8/2/42		40		32
ConAgra Foods, Inc., 1.30%, 1/25/16		130		130
7.00%, 4/15/19		300		360
3.25%, 9/15/22		55		53
3.20%, 1/25/23		150		140
7.00%, 10/1/28		100		122

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Food – 0.5% – continued
4.65%, 1/25/43		$215		$195
General Mills, Inc., 5.20%, 3/17/15		500		533
0.88%, 1/29/16		25		25
3.15%, 12/15/21		500		493
5.40%, 6/15/40		70		76
Hershey (The) Co., 1.50%, 11/1/16		250		253
Ingredion, Inc., 1.80%, 9/25/17		155		153
Kellogg Co., 1.88%, 11/17/16		55		56
1.75%, 5/17/17		75		75
3.25%, 5/21/18		130		138
2.75%, 3/1/23		350		324
7.45%, 4/1/31		300		383
Kraft Foods Group, Inc., 1.63%, 6/4/15		100		102
3.50%, 6/6/22		1,130		1,116
5.00%, 6/4/42		205		203
Kroger (The) Co., 3.90%, 10/1/15		80		84
2.20%, 1/15/17		190		193
6.15%, 1/15/20		25		29
3.40%, 4/15/22		400		389
7.50%, 4/1/31		200		246
6.90%, 4/15/38		100		117
Mondelez International, Inc., 4.13%, 2/9/16		500		534
6.50%, 8/11/17		150		175
6.13%, 8/23/18		50		58
5.38%, 2/10/20		250		282
6.50%, 11/1/31		150		173
7.00%, 8/11/37		100		122
6.88%, 2/1/38		100		121
6.88%, 1/26/39		100		121
6.50%, 2/9/40		500		587
Safeway, Inc., 3.40%, 12/1/16		165		170
6.35%, 8/15/17		275		309
5.00%, 8/15/19		385		402
3.95%, 8/15/20		350		344
Sysco Corp., 2.60%, 6/12/22		95		90

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Food – 0.5% – continued
6.63%, 3/17/39		$200		$250
Tyson Foods, Inc., 4.50%, 6/15/22		300		311
Unilever Capital Corp., 0.45%, 7/30/15		500		498
4.25%, 2/10/21		250		271
5.90%, 11/15/32		125		154
				11,199
Forest Products & Paper – 0.1%
Georgia-Pacific LLC, 7.75%, 11/15/29		500		633
International Paper Co., 5.30%, 4/1/15		100		106
7.95%, 6/15/18		325		403
7.50%, 8/15/21		350		431
4.75%, 2/15/22		125		132
7.30%, 11/15/39		45		55
6.00%, 11/15/41		250		267
Westvaco Corp., 7.95%, 2/15/31		100		115
				2,142
Gas – 0.1%
AGL Capital Corp., 3.50%, 9/15/21		150		152
5.88%, 3/15/41		100		112
Atmos Energy Corp., 4.15%, 1/15/43		250		222
CenterPoint Energy, Inc., 6.50%, 5/1/18		40		47
KeySpan Corp., 5.80%, 4/1/35		175		186
Sempra Energy, 2.30%, 4/1/17		80		82
6.15%, 6/15/18		400		467
2.88%, 10/1/22		60		56
6.00%, 10/15/39		250		276
Southern California Gas Co., 5.75%, 11/15/35		150		178
3.75%, 9/15/42		75		66
Southern Union Co., 8.25%, 11/15/29		25		30
				1,874

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Hand/Machine Tools – 0.0%
Kennametal, Inc., 2.65%, 11/1/19		$100		$96
Stanley Black & Decker, Inc., 3.40%, 12/1/21		265		263
2.90%, 11/1/22		65		61
				420
Healthcare – Products – 0.3%
Baxter International, Inc., 4.63%, 3/15/15		100		106
0.95%, 6/1/16		110		110
1.85%, 1/15/17		100		102
5.38%, 6/1/18		225		259
2.40%, 8/15/22		200		185
6.25%, 12/1/37		30		36
3.65%, 8/15/42		30		25
4.50%, 6/15/43		125		123
Becton Dickinson and Co., 1.75%, 11/8/16		250		255
3.25%, 11/12/20		430		437
3.13%, 11/8/21		150		149
6.00%, 5/15/39		290		338
5.00%, 11/12/40		400		413
Boston Scientific Corp., 2.65%, 10/1/18		80		80
7.38%, 1/15/40		100		123
CareFusion Corp., 6.38%, 8/1/19		125		143
3.30%, 3/1/23 (3)(4)		130		122
CR Bard, Inc., 1.38%, 1/15/18		160		155
Life Technologies Corp., 3.50%, 1/15/16		250		260
6.00%, 3/1/20		500		563
Medtronic, Inc., 3.00%, 3/15/15		250		259
4.75%, 9/15/15		200		215
4.13%, 3/15/21		500		532
3.13%, 3/15/22		150		148
2.75%, 4/1/23		80		75
6.50%, 3/15/39		100		124
5.55%, 3/15/40		200		224
4.50%, 3/15/42		100		97
St Jude Medical, Inc., 2.50%, 1/15/16		150		154

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Healthcare – Products – 0.3% – continued
3.25%, 4/15/23		$140		$133
4.75%, 4/15/43		150		142
Stryker Corp., 2.00%, 9/30/16		125		128
4.10%, 4/1/43		50		45
Zimmer Holdings, Inc., 3.38%, 11/30/21		250		244
5.75%, 11/30/39		100		111
				6,615
Healthcare – Services – 0.3%
Aetna, Inc., 1.75%, 5/15/17		50		50
1.50%, 11/15/17		100		98
3.95%, 9/1/20		375		391
4.13%, 6/1/21		250		262
6.75%, 12/15/37		150		183
4.50%, 5/15/42		100		92
Cigna Corp., 4.50%, 3/15/21		320		342
6.15%, 11/15/36		45		52
5.38%, 2/15/42		110		115
Humana, Inc., 3.15%, 12/1/22		85		79
8.15%, 6/15/38		200		265
4.63%, 12/1/42		100		89
Memorial Sloan-Kettering Cancer Center, 4.13%, 7/1/52		100		83
Quest Diagnostics, Inc., 5.45%, 11/1/15		250		271
6.40%, 7/1/17		100		114
4.75%, 1/30/20		340		363
5.75%, 1/30/40		185		183
UnitedHealth Group, Inc., 1.88%, 11/15/16		125		128
1.40%, 10/15/17		85		84
1.63%, 3/15/19		210		202
4.70%, 2/15/21		300		328
2.88%, 3/15/22		800		760
5.80%, 3/15/36		250		276
6.63%, 11/15/37		350		428
6.88%, 2/15/38		100		126
5.70%, 10/15/40		135		150
4.38%, 3/15/42		100		92

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Healthcare - Services – 0.3% – continued
Ventas Realty L.P., 5.70%, 9/30/43		$100		$101
WellPoint, Inc., 5.25%, 1/15/16		550		601
2.38%, 2/15/17		200		203
5.88%, 6/15/17		350		398
1.88%, 1/15/18		205		203
2.30%, 7/15/18		165		165
3.13%, 5/15/22		100		95
3.30%, 1/15/23		300		283
5.85%, 1/15/36		600		646
				8,301
Home Furnishings – 0.0%
Whirlpool Corp., 4.85%, 6/15/21		100		106
4.70%, 6/1/22		250		261
3.70%, 3/1/23		100		97
				464
Household Products/Wares – 0.1%
Clorox (The) Co., 5.00%, 1/15/15		75		79
5.95%, 10/15/17		25		29
3.05%, 9/15/22		250		238
Kimberly-Clark Corp., 6.13%, 8/1/17		50		59
6.25%, 7/15/18		150		179
2.40%, 3/1/22		50		48
6.63%, 8/1/37		350		452
3.70%, 6/1/43		100		87
				1,171
Housewares – 0.0%
Newell Rubbermaid, Inc., 2.00%, 6/15/15		50		51
4.70%, 8/15/20		350		373
				424
Insurance – 0.9%
ACE INA Holdings, Inc., 5.80%, 3/15/18		300		348
5.90%, 6/15/19		355		420
6.70%, 5/15/36		50		64
4.15%, 3/13/43		100		92
Aflac, Inc., 8.50%, 5/15/19		500		646

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Insurance – 0.9% – continued
6.90%, 12/17/39		$80		$99
6.45%, 8/15/40		55		65
Alleghany Corp., 4.95%, 6/27/22		55		58
Allstate (The) Corp., 5.55%, 5/9/35		50		56
6.13%, 5/15/37		100		104
5.20%, 1/15/42		225		236
6.50%, 5/15/57		225		230
American International Group, Inc., 3.80%, 3/22/17		60		64
5.45%, 5/18/17		625		699
5.85%, 1/16/18		225		256
8.25%, 8/15/18		150		187
3.38%, 8/15/20		300		300
4.88%, 6/1/22		700		751
4.13%, 2/15/24		165		165
6.25%, 5/1/36		350		400
8.18%, 5/15/58		440		515
Assurant, Inc., 2.50%, 3/15/18		50		49
Berkshire Hathaway Finance Corp., 4.85%, 1/15/15		575		607
1.30%, 5/15/18		65		63
5.40%, 5/15/18		300		346
5.75%, 1/15/40		255		283
4.40%, 5/15/42		100		92
4.30%, 5/15/43		125		113
Berkshire Hathaway, Inc., 3.20%, 2/11/15		500		518
0.80%, 2/11/16		40		40
1.90%, 1/31/17		125		127
4.50%, 2/11/43		300		280
Chubb (The) Corp., 5.75%, 5/15/18		325		378
6.00%, 5/11/37		50		59
6.50%, 5/15/38		85		106
CNA Financial Corp., 5.85%, 12/15/14		290		307
7.35%, 11/15/19		250		304
Genworth Holdings, Inc., 6.52%, 5/22/18		50		57
7.20%, 2/15/21		600		691

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Insurance – 0.9% – continued
Hartford Financial Services Group, Inc., 5.50%, 3/30/20		$250		$282
5.13%, 4/15/22		145		159
5.95%, 10/15/36		285		318
Infinity Property & Casualty Corp., 5.00%, 9/19/22		115		113
ING US, Inc., 2.90%, 2/15/18		50		50
Lincoln National Corp., 4.20%, 3/15/22		165		169
4.00%, 9/1/23		100		100
6.15%, 4/7/36		150		170
6.30%, 10/9/37		100		115
7.00%, 5/17/66		500		506
Loews Corp., 2.63%, 5/15/23		250		229
4.13%, 5/15/43		75		65
Markel Corp., 4.90%, 7/1/22		150		157
Marsh & McLennan Cos., Inc., 5.75%, 9/15/15		236		257
2.55%, 10/15/18		45		45
MetLife, Inc., 5.00%, 6/15/15		825		883
6.75%, 6/1/16		170		195
3.05%, 12/15/22		200		191
4.37%, 9/15/23		150		157
6.38%, 6/15/34		150		181
5.70%, 6/15/35		700		775
6.40%, 12/15/36		150		152
Primerica, Inc., 4.75%, 7/15/22		100		105
Principal Financial Group, Inc., 1.85%, 11/15/17		65		64
6.05%, 10/15/36		60		69
4.63%, 9/15/42		40		38
Progressive (The) Corp., 3.75%, 8/23/21		330		341
Protective Life Corp., 7.38%, 10/15/19		300		363
8.45%, 10/15/39		425		535
Prudential Financial, Inc., 3.88%, 1/14/15		200		208

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Insurance – 0.9% – continued
6.00%, 12/1/17		$425		$493
7.38%, 6/15/19		500		619
5.38%, 6/21/20		175		197
5.75%, 7/15/33		50		54
6.63%, 12/1/37		200		239
8.88%, 6/15/38		50		61
5.63%, 6/15/43		200		188
Reinsurance Group of America, Inc., 6.45%, 11/15/19		500		584
Torchmark Corp., 3.80%, 9/15/22		420		415
Transatlantic Holdings, Inc., 8.00%, 11/30/39		70		86
Travelers (The) Cos., Inc., 5.50%, 12/1/15		150		165
5.80%, 5/15/18		375		438
6.25%, 6/15/37		375		457
5.35%, 11/1/40		25		27
4.60%, 8/1/43		75		74
				21,264
Internet – 0.1%
Amazon.com, Inc., 1.20%, 11/29/17		315		308
eBay, Inc., 0.70%, 7/15/15		75		75
1.63%, 10/15/15		250		255
4.00%, 7/15/42		235		199
Google, Inc., 3.63%, 5/19/21		250		262
Symantec Corp., 2.75%, 6/15/17		410		416
4.20%, 9/15/20		200		206
				1,721
Iron/Steel – 0.0%
Allegheny Technologies, Inc., 5.95%, 1/15/21		125		131
Cliffs Natural Resources, Inc., 6.25%, 10/1/40		200		167
Nucor Corp., 5.85%, 6/1/18		200		230
4.00%, 8/1/23		250		245
6.40%, 12/1/37		150		167

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Iron/Steel – 0.0% – continued
5.20%, 8/1/43		$125		$119
				1,059
Lodging – 0.1%
Hyatt Hotels Corp., 3.38%, 7/15/23		105		98
Marriott International, Inc., 3.00%, 3/1/19		250		253
3.38%, 10/15/20		125		125
3.25%, 9/15/22		50		47
Starwood Hotels & Resorts Worldwide, Inc., 6.75%, 5/15/18		200		236
3.13%, 2/15/23		150		137
Wyndham Worldwide Corp., 2.95%, 3/1/17		185		190
2.50%, 3/1/18		20		20
4.25%, 3/1/22		100		98
				1,204
Machinery – Construction & Mining – 0.1%
Caterpillar, Inc., 0.95%, 6/26/15		95		96
5.70%, 8/15/16		50		56
3.90%, 5/27/21		500		523
2.60%, 6/26/22		150		141
5.20%, 5/27/41		450		479
3.80%, 8/15/42		102		87
				1,382
Machinery – Diversified – 0.0%
Cummins, Inc., 4.88%, 10/1/43		40		40
Deere & Co., 2.60%, 6/8/22		125		118
8.10%, 5/15/30		100		140
IDEX Corp., 4.20%, 12/15/21		200		202
Rockwell Automation, Inc., 6.25%, 12/1/37		150		179
Roper Industries, Inc., 1.85%, 11/15/17		160		159
2.05%, 10/1/18		120		118
				956
Media – 1.1%
CBS Corp., 4.63%, 5/15/18		25		27

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Media – 1.1% – continued
5.75%, 4/15/20		$250		$279
4.30%, 2/15/21		500		513
3.38%, 3/1/22		100		96
Comcast Corp., 5.85%, 11/15/15		450		497
4.95%, 6/15/16		250		276
6.50%, 1/15/17		1,500		1,741
5.70%, 5/15/18		400		466
4.25%, 1/15/33		250		236
6.45%, 3/15/37		520		621
6.95%, 8/15/37		450		566
6.40%, 5/15/38		600		711
6.40%, 3/1/40		175		209
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 3.55%, 3/15/15		400		414
1.75%, 1/15/18		55		53
5.88%, 10/1/19		720		804
5.00%, 3/1/21		735		752
6.00%, 8/15/40		520		493
Discovery Communications LLC, 3.70%, 6/1/15		250		261
4.38%, 6/15/21		800		838
3.25%, 4/1/23		60		56
6.35%, 6/1/40		125		137
4.95%, 5/15/42		50		46
4.88%, 4/1/43		35		32
Historic TW, Inc., 6.88%, 6/15/18		250		300
NBCUniversal Media LLC, 3.65%, 4/30/15		115		121
2.88%, 4/1/16		500		524
5.15%, 4/30/20		300		340
4.38%, 4/1/21		650		700
2.88%, 1/15/23		150		143
6.40%, 4/30/40		115		136
News America, Inc., 5.30%, 12/15/14		450		475
6.90%, 3/1/19		300		361
4.50%, 2/15/21		450		478
3.00%, 9/15/22		200		187
6.40%, 12/15/35		125		138
6.65%, 11/15/37		550		625
7.85%, 3/1/39		100		126
6.90%, 8/15/39		310		360

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Media – 1.1% – continued
Scripps Networks Interactive, Inc., 2.70%, 12/15/16		$100		$104
Time Warner Cable, Inc., 5.85%, 5/1/17		1,325		1,441
6.75%, 7/1/18		450		503
8.75%, 2/14/19		300		353
5.00%, 2/1/20		365		370
7.30%, 7/1/38		350		348
6.75%, 6/15/39		130		121
5.88%, 11/15/40		200		170
5.50%, 9/1/41		140		115
Time Warner Entertainment Co. L.P., 8.38%, 3/15/23		75		87
8.38%, 7/15/33		215		234
Time Warner, Inc., 5.88%, 11/15/16		1,150		1,302
4.88%, 3/15/20		160		174
4.75%, 3/29/21		350		375
3.40%, 6/15/22		50		49
6.50%, 11/15/36		850		946
6.20%, 3/15/40		55		60
6.10%, 7/15/40		200		215
5.38%, 10/15/41		500		499
Viacom, Inc., 1.25%, 2/27/15		40		40
2.50%, 12/15/16		65		67
6.13%, 10/5/17		125		143
2.50%, 9/1/18		45		45
5.63%, 9/15/19		310		352
6.88%, 4/30/36		600		668
4.50%, 2/27/42		300		250
Walt Disney (The) Co., 0.88%, 12/1/14		500		503
1.35%, 8/16/16		150		152
1.13%, 2/15/17		250		249
1.10%, 12/1/17		25		25
5.88%, 12/15/17		300		350
5.50%, 3/15/19		400		463
3.75%, 6/1/21		300		315
3.70%, 12/1/42		130		112
				26,338
Metal Fabricate/Hardware – 0.0%
Precision Castparts Corp., 1.25%, 1/15/18		210		205

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Metal Fabricate/Hardware – 0.0% – continued
3.90%, 1/15/43		$100		$88
				293
Mining – 0.2%
Alcoa, Inc., 5.55%, 2/1/17		475		510
6.75%, 7/15/18		80		88
5.40%, 4/15/21		75		74
5.90%, 2/1/27		75		72
5.95%, 2/1/37		600		533
Barrick North America Finance LLC, 6.80%, 9/15/18		175		200
4.40%, 5/30/21		500		464
7.50%, 9/15/38		100		98

Freeport-McMoRan Copper & Gold, Inc., 2.38%, 3/15/18 (3)(4)	245	237
3.55%, 3/1/22	250	230
5.45%, 3/15/43 (3)(4)	145	130
Newmont Mining Corp., 5.13%, 10/1/19	315	331
3.50%, 3/15/22	250	219
5.88%, 4/1/35	100	90
4.88%, 3/15/42	150	114
Southern Copper Corp., 7.50%, 7/27/35	300	315
6.75%, 4/16/40	90	88
		3,793
Miscellaneous Manufacturing – 0.2%
3M Co., 1.00%, 6/26/17	150	147
5.70%, 3/15/37	350	408
Danaher Corp., 5.63%, 1/15/18	200	230
3.90%, 6/23/21	250	266
Dover Corp., 4.30%, 3/1/21	60	64
Eaton Corp., 1.50%, 11/2/17 (3)(4)	215	212
2.75%, 11/2/22 (3)(4)	1,000	932
General Electric Co., 0.85%, 10/9/15	210	210
5.25%, 12/6/17	750	854
2.70%, 10/9/22	1,080	1,019

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Miscellaneous Manufacturing – 0.2% – continued
Illinois Tool Works, Inc., 3.38%, 9/15/21		$250		$254
3.90%, 9/1/42		200		173
Textron, Inc., 5.60%, 12/1/17		125		138
				4,907
Office/Business Equipment – 0.1%
Xerox Corp., 6.75%, 2/1/17		500		572
2.95%, 3/15/17		80		82
6.35%, 5/15/18		700		804
5.63%, 12/15/19		120		133
4.50%, 5/15/21		30		31
6.75%, 12/15/39		60		66
				1,688
Oil & Gas – 0.8%
Anadarko Petroleum Corp., 6.95%, 6/15/19		500		603
Apache Corp., 5.63%, 1/15/17		250		282
3.63%, 2/1/21		200		205
2.63%, 1/15/23		200		183
6.00%, 1/15/37		505		557
5.10%, 9/1/40		250		247
4.75%, 4/15/43		125		118
Chevron Corp., 0.89%, 6/24/16		120		121
1.10%, 12/5/17		200		197
4.95%, 3/3/19		300		344
2.43%, 6/24/20		625		618
ConocoPhillips, 4.60%, 1/15/15		420		441
6.65%, 7/15/18		100		121
5.75%, 2/1/19		1,150		1,341
5.90%, 10/15/32		250		290
5.90%, 5/15/38		100		117
ConocoPhillips Co., 1.05%, 12/15/17		250		243
ConocoPhillips Holding Co., 6.95%, 4/15/29		585		739
Devon Energy Corp., 2.40%, 7/15/16		80		82

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Oil & Gas – 0.8% – continued
6.30%, 1/15/19		$600		$701
4.00%, 7/15/21		200		204
3.25%, 5/15/22		235		225
7.95%, 4/15/32		100		130
Devon Financing Corp. LLC, 7.88%, 9/30/31		310		399
EOG Resources, Inc., 2.95%, 6/1/15		250		260
5.63%, 6/1/19		215		251
4.10%, 2/1/21		500		529
EQT Corp., 8.13%, 6/1/19		325		394
Hess Corp., 7.88%, 10/1/29		620		778
7.13%, 3/15/33		75		89
Kerr-McGee Corp., 7.88%, 9/15/31		115		145
Marathon Oil Corp., 6.00%, 10/1/17		485		557
5.90%, 3/15/18		150		173
6.80%, 3/15/32		280		331
Marathon Petroleum Corp., 3.50%, 3/1/16		200		210
5.13%, 3/1/21		75		81
6.50%, 3/1/41		260		283
Murphy Oil Corp., 4.00%, 6/1/22		100		96
7.05%, 5/1/29		300		325
Nabors Industries, Inc., 2.35%, 9/15/16 (3)(4)		35		35
5.00%, 9/15/20		250		261
4.63%, 9/15/21		300		302
Noble Energy, Inc., 4.15%, 12/15/21		250		260
Occidental Petroleum Corp., 1.75%, 2/15/17		250		252
1.50%, 2/15/18		50		49
4.10%, 2/1/21		750		785
3.13%, 2/15/22		100		97
Pemex Project Funding Master Trust, 5.75%, 3/1/18		190		210
6.63%, 6/15/35		200		211
Phillips 66, 2.95%, 5/1/17		150		155

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Oil & Gas – 0.8% – continued
Pioneer Natural Resources Co., 6.65%, 3/15/17		$150		$173
6.88%, 5/1/18		100		118
3.95%, 7/15/22		85		85
7.20%, 1/15/28		100		120
Pride International, Inc., 6.88%, 8/15/20		1,000		1,192
Rowan Cos., Inc., 5.00%, 9/1/17		200		217
4.88%, 6/1/22		100		103
5.40%, 12/1/42		75		68
Southwestern Energy Co., 4.10%, 3/15/22		100		100
Valero Energy Corp., 4.50%, 2/1/15		230		241
9.38%, 3/15/19		100		130
7.50%, 4/15/32		765		893
10.50%, 3/15/39		325		478
				19,545
Oil & Gas Services – 0.2%
Baker Hughes, Inc., 7.50%, 11/15/18		1,000		1,255
3.20%, 8/15/21		100		101
5.13%, 9/15/40		375		400
Cameron International Corp., 1.60%, 4/30/15		150		151
4.50%, 6/1/21		125		134
Halliburton Co., 5.90%, 9/15/18		350		412
3.25%, 11/15/21		595		596
6.70%, 9/15/38		75		93
7.45%, 9/15/39		350		468
4.75%, 8/1/43		380		376
Weatherford International, Inc., 6.35%, 6/15/17		100		112
				4,098
Packaging & Containers – 0.0%
Sonoco Products Co., 4.38%, 11/1/21		25		26
5.75%, 11/1/40		150		157
				183

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Pharmaceuticals – 0.8%
AbbVie, Inc., 1.20%, 11/6/15		$500		$502
1.75%, 11/6/17		265		263
2.90%, 11/6/22		1,000		935
4.40%, 11/6/42		415		376
Allergan, Inc., 1.35%, 3/15/18		100		98
Bristol-Myers Squibb Co., 5.45%, 5/1/18		190		221
2.00%, 8/1/22		600		540
5.88%, 11/15/36		23		27
6.13%, 5/1/38		5		6
Cardinal Health, Inc., 5.80%, 10/15/16		100		113
1.90%, 6/15/17		65		65
1.70%, 3/15/18		25		24
3.20%, 6/15/22		150		143
4.60%, 3/15/43		35		32
Eli Lilly & Co., 5.20%, 3/15/17		525		590
5.55%, 3/15/37		250		279
Express Scripts Holding Co., 3.13%, 5/15/16		100		105
2.65%, 2/15/17		725		747
7.25%, 6/15/19		440		538
4.75%, 11/15/21		500		535
GlaxoSmithKline Capital, Inc., 0.70%, 3/18/16		300		300
5.65%, 5/15/18		800		931
5.38%, 4/15/34		150		166
6.38%, 5/15/38		380		474
4.20%, 3/18/43		20		19
Johnson & Johnson, 5.55%, 8/15/17		350		405
5.15%, 7/15/18		200		232
3.55%, 5/15/21		250		262
6.95%, 9/1/29		100		135
5.95%, 8/15/37		100		122
4.85%, 5/15/41		400		428
McKesson Corp., 5.70%, 3/1/17		275		312
1.40%, 3/15/18		80		78
2.70%, 12/15/22		120		112
6.00%, 3/1/41		250		290

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Pharmaceuticals – 0.8% – continued
Mead Johnson Nutrition Co., 4.90%, 11/1/19		$250		$277
5.90%, 11/1/39		50		55
Medco Health Solutions, Inc., 7.13%, 3/15/18		300		362
Merck & Co., Inc., 6.00%, 9/15/17		350		407
2.80%, 5/18/23		300		284
3.60%, 9/15/42		25		21
4.15%, 5/18/43		60		56
Merck Sharp & Dohme Corp., 4.75%, 3/1/15		375		397
5.00%, 6/30/19		725		827
5.75%, 11/15/36		50		57
5.85%, 6/30/39		575		683
Mylan, Inc., 1.80%, 6/24/16 (3)		95		95
Novartis Capital Corp., 4.40%, 4/24/20		185		203
2.40%, 9/21/22		40		37
Pfizer, Inc., 5.35%, 3/15/15		335		358
6.20%, 3/15/19		1,000		1,204
7.20%, 3/15/39		700		949
Pharmacia Corp., 6.60%, 12/1/28		125		157
Teva Pharmaceutical Finance Co. LLC, 6.15%, 2/1/36		45		52
Wyeth LLC, 5.50%, 2/15/16		425		472
5.95%, 4/1/37		225		263
Zoetis, Inc., 1.88%, 2/1/18 (3)(4)		40		40
3.25%, 2/1/23 (3)(4)		500		476
4.70%, 2/1/43 (3)(4)		40		37
				18,174
Pipelines – 0.6%
Buckeye Partners L.P., 6.05%, 1/15/18		85		96
CenterPoint Energy Resources Corp., 6.00%, 5/15/18		85		98
6.63%, 11/1/37		50		62
5.85%, 1/15/41		50		58

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Pipelines – 0.6% – continued
DCP Midstream Operating L.P., 2.50%, 12/1/17		$50		$50
3.88%, 3/15/23		50		46
El Paso Natural Gas Co. LLC, 5.95%, 4/15/17		350		394
8.38%, 6/15/32		100		130
El Paso Pipeline Partners Operating Co. LLC, 4.70%, 11/1/42		155		135
Enbridge Energy Partners L.P., 5.20%, 3/15/20		95		103
4.20%, 9/15/21		250		253
7.50%, 4/15/38		50		59
Energy Transfer Partners L.P., 6.13%, 2/15/17		350		396
9.00%, 4/15/19		187		236
4.15%, 10/1/20		150		154
7.50%, 7/1/38		200		231
6.50%, 2/1/42		650		686
5.15%, 2/1/43		150		134
5.95%, 10/1/43		100		99
Enterprise Products Operating LLC, 5.60%, 10/15/14		250		263
3.20%, 2/1/16		200		210
6.30%, 9/15/17		335		388
5.25%, 1/31/20		300		333
4.05%, 2/15/22		1,000		1,016
6.88%, 3/1/33		50		59
7.55%, 4/15/38		200		255
4.85%, 8/15/42		315		295
4.45%, 2/15/43		40		35
Kinder Morgan Energy Partners L.P., 5.13%, 11/15/14		250		262
5.95%, 2/15/18		495		567
6.85%, 2/15/20		70		83
5.80%, 3/1/21		300		337
4.15%, 3/1/22		175		176
3.50%, 9/1/23		25		23
7.40%, 3/15/31		350		412
7.30%, 8/15/33		100		117
6.95%, 1/15/38		150		169
6.55%, 9/15/40		100		109
6.38%, 3/1/41		135		146
5.63%, 9/1/41		100		100
5.00%, 3/1/43		335		303

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Pipelines – 0.6% – continued
Magellan Midstream Partners L.P., 4.25%, 2/1/21		$200		$210
ONEOK Partners L.P., 3.25%, 2/1/16		135		141
6.15%, 10/1/16		200		226
2.00%, 10/1/17		75		74
3.20%, 9/15/18		85		87
8.63%, 3/1/19		350		441
6.20%, 9/15/43		100		103
ONEOK, Inc., 5.20%, 6/15/15		200		212
4.25%, 2/1/22		250		234
Panhandle Eastern Pipe Line Co. L.P., 6.20%, 11/1/17		100		115
Plains All American Pipeline L.P./PAA Finance Corp., 6.13%, 1/15/17		200		227
6.50%, 5/1/18		300		354
5.75%, 1/15/20		200		227
5.00%, 2/1/21		100		109
3.85%, 10/15/23		250		246
5.15%, 6/1/42		150		150
4.30%, 1/31/43		100		88
Spectra Energy Capital LLC, 6.20%, 4/15/18		350		402
3.30%, 3/15/23		200		179
7.50%, 9/15/38		50		60
Spectra Energy Partners L.P., 2.95%, 9/25/18		55		56
5.95%, 9/25/43		100		105
Sunoco Logistics Partners Operations L.P., 4.65%, 2/15/22		165		170
Tennessee Gas Pipeline Co. LLC, 7.00%, 10/15/28		50		61
Transcontinental Gas Pipe Line Co. LLC, 5.40%, 8/15/41		130		133
Williams (The) Cos., Inc., 7.50%, 1/15/31		200		221
8.75%, 3/15/32		192		234
Williams Partners L.P., 5.25%, 3/15/20		180		194
4.13%, 11/15/20		300		304
3.35%, 8/15/22		250		231
6.30%, 4/15/40		130		137

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Pipelines – 0.6% – continued
Williams Partners L.P./Williams Partners Finance Corp., 7.25%, 2/1/17		$100		$116
				14,925
Real Estate – 0.0%
Regency Centers L.P., 5.88%, 6/15/17		25		28
Real Estate Investment Trusts – 0.6%
Alexandria Real Estate Equities, Inc., 4.60%, 4/1/22		100		101
American Tower Corp., 4.70%, 3/15/22		305		296
AvalonBay Communities, Inc., 6.10%, 3/15/20		150		173
3.63%, 10/1/20		75		76
2.95%, 9/15/22		50		46
BioMed Realty L.P., 3.85%, 4/15/16		100		105
Boston Properties L.P., 5.63%, 4/15/15		100		107
5.88%, 10/15/19		500		576
3.85%, 2/1/23		150		146
3.13%, 9/1/23		35		32
Brandywine Operating Partnership L.P., 5.70%, 5/1/17		150		165
BRE Properties, Inc., 5.20%, 3/15/21		200		216
Camden Property Trust, 2.95%, 12/15/22		150		137
CommonWealth REIT, 6.25%, 6/15/17		75		80
DDR Corp., 4.63%, 7/15/22		100		102
Digital Realty Trust L.P., 3.63%, 10/1/22		250		232
Duke Realty L.P., 5.95%, 2/15/17		1,000		1,115
4.38%, 6/15/22		100		99
EPR Properties, 7.75%, 7/15/20		50		57
5.75%, 8/15/22		100		101
Equity One, Inc., 3.75%, 11/15/22		100		94

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Real Estate Investment Trusts – 0.6% – continued
ERP Operating L.P., 4.75%, 7/15/20		$335		$362
4.63%, 12/15/21		185		195
Federal Realty Investment Trust, 3.00%, 8/1/22		25		23
HCP, Inc., 6.00%, 1/30/17		150		169
3.75%, 2/1/19		100		104
2.63%, 2/1/20		50		47
5.38%, 2/1/21		960		1,045
3.15%, 8/1/22		100		92
Health Care REIT, Inc., 3.63%, 3/15/16		500		524
2.25%, 3/15/18		25		25
4.13%, 4/1/19		150		158
5.13%, 3/15/43		150		134
Healthcare Realty Trust, Inc., 5.75%, 1/15/21		200		217
Highwoods Realty L.P., 3.63%, 1/15/23		100		93
Hospitality Properties Trust, 5.63%, 3/15/17		500		544
6.70%, 1/15/18		75		84
5.00%, 8/15/22		300		300
Kimco Realty Corp., 6.88%, 10/1/19		200		241
Liberty Property L.P., 5.13%, 3/2/15		100		105
6.63%, 10/1/17		50		57
4.13%, 6/15/22		250		248
4.40%, 2/15/24		80		80
Mack-Cali Realty L.P., 4.50%, 4/18/22		100		99
National Retail Properties, Inc., 3.80%, 10/15/22		100		95
3.30%, 4/15/23		100		91
ProLogis L.P., 4.50%, 8/15/17		85		92
6.63%, 5/15/18		350		409
6.88%, 3/15/20		37		44
Realty Income Corp., 2.00%, 1/31/18		250		244
4.65%, 8/1/23		85		86

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Real Estate Investment Trusts – 0.6% – continued
Simon Property Group L.P., 4.20%, 2/1/15		$85		$88
5.10%, 6/15/15		250		268
5.25%, 12/1/16		400		446
2.15%, 9/15/17		225		228
6.13%, 5/30/18		870		1,020
4.38%, 3/1/21		250		266
2.75%, 2/1/23		100		92
UDR, Inc., 4.63%, 1/10/22		165		171
Ventas Realty L.P./Ventas Capital Corp., 2.00%, 2/15/18		250		245
4.00%, 4/30/19		200		210
4.75%, 6/1/21		50		53
4.25%, 3/1/22		85		86
Vornado Realty L.P., 5.00%, 1/15/22		250		262
Weyerhaeuser Co., 4.63%, 9/15/23		185		189
				13,687
Retail – 0.8%
AutoZone, Inc., 4.00%, 11/15/20		250		256
3.70%, 4/15/22		55		54
3.13%, 7/15/23		135		125
Costco Wholesale Corp., 5.50%, 3/15/17		250		285
1.13%, 12/15/17		400		393
CVS Caremark Corp., 5.75%, 6/1/17		341		390
4.75%, 5/18/20		250		277
4.13%, 5/15/21		100		105
2.75%, 12/1/22		350		323
6.25%, 6/1/27		250		297
6.13%, 9/15/39		175		200
Darden Restaurants, Inc., 3.35%, 11/1/22		160		145
Home Depot (The), Inc., 5.40%, 3/1/16		800		887
2.25%, 9/10/18		65		66
4.40%, 4/1/21		250		274
2.70%, 4/1/23		125		117
5.88%, 12/16/36		350		400

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Retail – 0.8% – continued
5.95%, 4/1/41		$250		$293
4.88%, 2/15/44		100		101
Kohl’s Corp., 4.00%, 11/1/21		85		85
3.25%, 2/1/23		100		92
4.75%, 12/15/23		250		258
6.00%, 1/15/33		100		100
6.88%, 12/15/37		150		167
Lowe’s Cos., Inc., 5.00%, 10/15/15		325		353
1.63%, 4/15/17		50		50
4.63%, 4/15/20		100		111
3.12%, 4/15/22		500		487
3.88%, 9/15/23		150		152
5.80%, 10/15/36		100		110
5.80%, 4/15/40		350		387
4.65%, 4/15/42		50		48
5.00%, 9/15/43		50		50
Macy’s Retail Holdings, Inc., 5.90%, 12/1/16		213		240
3.88%, 1/15/22		30		30
2.88%, 2/15/23		150		135
6.90%, 4/1/29		305		349
6.90%, 1/15/32		250		283
5.13%, 1/15/42		40		38
McDonald’s Corp., 5.80%, 10/15/17		750		873
5.35%, 3/1/18		100		115
3.63%, 5/20/21		100		104
6.30%, 10/15/37		75		93
3.70%, 2/15/42		100		87
Nordstrom, Inc., 6.25%, 1/15/18		325		378
4.00%, 10/15/21		150		157
7.00%, 1/15/38		50		64
Staples, Inc., 2.75%, 1/12/18		125		126
Starbucks Corp., 3.85%, 10/1/23		200		203
Target Corp., 5.38%, 5/1/17		575		655
3.88%, 7/15/20		195		209
2.90%, 1/15/22		1,015		991

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Retail – 0.8% – continued
6.50%, 10/15/37		$125		$154
7.00%, 1/15/38		325		419
TJX Cos., Inc., 2.50%, 5/15/23		205		190
Walgreen Co., 5.25%, 1/15/19		525		592
Wal-Mart Stores, Inc., 2.88%, 4/1/15		225		234
1.13%, 4/11/18		350		342
3.63%, 7/8/20		200		212
4.25%, 4/15/21		1,600		1,738
5.88%, 4/5/27		250		302
5.25%, 9/1/35		175		188
6.50%, 8/15/37		250		310
6.20%, 4/15/38		275		330
5.63%, 4/1/40		155		174
4.88%, 7/8/40		90		91
5.00%, 10/25/40		350		361
5.63%, 4/15/41		775		873
4.00%, 4/11/43		170		152
4.75%, 10/2/43		100		99
Yum! Brands, Inc., 6.25%, 4/15/16		150		168
3.75%, 11/1/21		35		35
6.88%, 11/15/37		550		638
				20,170
Savings & Loans – 0.0%
Santander Holdings USA, Inc., 4.63%, 4/19/16		30		32
Semiconductors – 0.1%
Altera Corp., 1.75%, 5/15/17		35		35
Applied Materials, Inc., 4.30%, 6/15/21		255		267
5.85%, 6/15/41		100		104
Broadcom Corp., 2.70%, 11/1/18		250		257
2.50%, 8/15/22		100		91
Intel Corp., 1.95%, 10/1/16		300		308
1.35%, 12/15/17		450		444
2.70%, 12/15/22		450		418
4.00%, 12/15/32		150		138
4.80%, 10/1/41		250		239

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Semiconductors – 0.1% – continued
Maxim Integrated Products, Inc., 3.38%, 3/15/23		$50		$47
Texas Instruments, Inc., 0.45%, 8/3/15		135		135
1.00%, 5/1/18		300		289
				2,772
Software – 0.3%
Adobe Systems, Inc., 3.25%, 2/1/15		350		361
Autodesk, Inc., 1.95%, 12/15/17		75		74
CA, Inc., 2.88%, 8/15/18		80		81
5.38%, 12/1/19		250		277
Fidelity National Information Services, Inc., 2.00%, 4/15/18		40		39
5.00%, 3/15/22		200		203
Fiserv, Inc., 3.13%, 10/1/15		250		259
3.13%, 6/15/16		170		177
4.63%, 10/1/20		250		262
3.50%, 10/1/22		100		95
Intuit, Inc., 5.75%, 3/15/17		100		111
Microsoft Corp., 0.88%, 11/15/17		125		123
1.00%, 5/1/18		100		97
4.20%, 6/1/19		250		276
3.00%, 10/1/20		330		336
5.20%, 6/1/39		200		211
4.50%, 10/1/40		700		669
5.30%, 2/8/41		190		203
Oracle Corp., 1.20%, 10/15/17		380		373
5.75%, 4/15/18		15		18
2.38%, 1/15/19		535		538
5.00%, 7/8/19		530		602
3.88%, 7/15/20		300		319
2.50%, 10/15/22		950		876
6.50%, 4/15/38		550		678
6.13%, 7/8/39		100		119
				7,377

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Telecommunications – 1.1%
Alltel Corp., 7.88%, 7/1/32		$100		$130
AT&T Corp., 8.00%, 11/15/31		165		225
AT&T, Inc., 2.50%, 8/15/15		200		206
2.95%, 5/15/16		500		523
2.40%, 8/15/16		285		294
5.80%, 2/15/19		1,075		1,238
2.63%, 12/1/22		250		224
6.15%, 9/15/34		125		134
6.80%, 5/15/36		50		57
6.50%, 9/1/37		600		663
6.30%, 1/15/38		325		351
6.40%, 5/15/38		990		1,084
6.55%, 2/15/39		85		94
5.35%, 9/1/40		500		485
Bellsouth Capital Funding Corp., 7.88%, 2/15/30		225		271
BellSouth Corp., 5.20%, 12/15/16		1,300		1,451
6.88%, 10/15/31		45		50
6.55%, 6/15/34		80		86
6.00%, 11/15/34		110		112
BellSouth Telecommunications, Inc., 6.38%, 6/1/28		225		245
CC Holdings GS V LLC/Crown Castle GS III Corp., 2.38%, 12/15/17		100		99
Cellco Partnership/Verizon Wireless Capital LLC, 8.50%, 11/15/18		1,300		1,666
Cisco Systems, Inc., 5.50%, 2/22/16		850		945
3.15%, 3/14/17		100		107
4.45%, 1/15/20		335		369
5.90%, 2/15/39		500		580
5.50%, 1/15/40		195		217
Corning, Inc., 4.25%, 8/15/20		250		270
5.75%, 8/15/40		170		188
Embarq Corp., 8.00%, 6/1/36		265		270
GTE Corp., 8.75%, 11/1/21		860		1,107

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Telecommunications – 1.1% – continued
6.94%, 4/15/28		$150		$172
Harris Corp., 6.38%, 6/15/19		50		57
Juniper Networks, Inc., 4.60%, 3/15/21		100		102
5.95%, 3/15/41		100		103
Motorola Solutions, Inc., 6.00%, 11/15/17		200		228
3.75%, 5/15/22		250		239
3.50%, 3/1/23		100		93
New Cingular Wireless Services, Inc., 8.75%, 3/1/31		400		552
Qwest Corp., 6.88%, 9/15/33		125		121
Verizon Communications, Inc., 5.55%, 2/15/16		1,300		1,429
3.00%, 4/1/16		100		104
6.10%, 4/15/18		235		272
6.35%, 4/1/19		1,125		1,320
4.60%, 4/1/21		1,225		1,302
3.50%, 11/1/21		100		98
7.75%, 12/1/30		500		615
7.75%, 6/15/32		140		172
6.40%, 9/15/33		1,000		1,111
6.25%, 4/1/37		400		431
6.40%, 2/15/38		1,500		1,652
8.95%, 3/1/39		650		918
7.35%, 4/1/39		590		721
6.00%, 4/1/41		180		189
4.75%, 11/1/41		410		366
6.55%, 9/15/43		560		632
Verizon New York, Inc., 7.38%, 4/1/32		150		172
				26,912
Toys, Games & Hobbies – 0.0%
Hasbro, Inc., 6.35%, 3/15/40		250		271
Mattel, Inc., 2.50%, 11/1/16		85		88
1.70%, 3/15/18		35		34
6.20%, 10/1/40		50		56
				449

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Transportation – 0.4%
Burlington Northern Santa Fe LLC, 5.65%, 5/1/17		$500		$568
5.75%, 3/15/18		100		115
4.10%, 6/1/21		20		21
3.45%, 9/15/21		50		50
6.20%, 8/15/36		520		593
6.15%, 5/1/37		470		534
4.95%, 9/15/41		250		244
4.40%, 3/15/42		215		195
CSX Corp., 6.25%, 4/1/15		250		270
4.25%, 6/1/21		100		106
6.00%, 10/1/36		100		112
6.15%, 5/1/37		190		217
6.22%, 4/30/40		350		402
4.75%, 5/30/42		50		48
4.10%, 3/15/44		15		13
FedEx Corp., 8.00%, 1/15/19		290		365
2.63%, 8/1/22		100		92
2.70%, 4/15/23		35		32
3.88%, 8/1/42		50		42
4.10%, 4/15/43		50		43
Norfolk Southern Corp., 5.90%, 6/15/19		320		375
3.25%, 12/1/21		250		248
3.00%, 4/1/22		450		434
7.25%, 2/15/31		500		629
3.95%, 10/1/42		150		127
4.80%, 8/15/43		65		63
Ryder System, Inc., 3.60%, 3/1/16		85		89
2.50%, 3/1/17		200		202
3.50%, 6/1/17		45		47
2.50%, 3/1/18		100		100
Union Pacific Corp., 2.75%, 4/15/23		100		94
3.65%, 2/15/24(3)(4)		879		883
4.75%, 9/15/41		100		100
4.30%, 6/15/42		200		188
United Parcel Service of America, Inc., 8.38%, 4/1/20		50		65
United Parcel Service, Inc., 5.50%, 1/15/18		775		890

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 18.7% – continued
Transportation – 0.4% – continued
3.13%, 1/15/21		$250		$253
6.20%, 1/15/38		150		184
3.63%, 10/1/42		115		99
				9,132
Trucking & Leasing – 0.0%
GATX Corp., 2.38%, 7/30/18		35		35
Water – 0.0%
American Water Capital Corp., 6.09%, 10/15/17		400		462
6.59%, 10/15/37		125		152
4.30%, 12/1/42		75		68
				682
Total Corporate Bonds
(Cost $436,360)				455,378
FOREIGN ISSUER BONDS – 8.7%
Advertising – 0.0%
WPP Finance 2010, 3.63%, 9/7/22		100		95
Banks – 2.1%
Abbey National Treasury Services PLC, 4.00%, 4/27/16		145		154
3.05%, 8/23/18		200		203
Australia & New Zealand Banking Group Ltd., 0.90%, 2/12/16		250		250
Bank of Montreal, 1.30%, 7/15/16		150		151
2.50%, 1/11/17		500		516
1.40%, 9/11/17		250		246
1.45%, 4/9/18		250		244
2.38%, 1/25/19		35		35
2.55%, 11/6/22		300		278
Bank of Nova Scotia, 3.40%, 1/22/15		500		518
2.05%, 10/7/15		100		102
0.75%, 10/9/15		250		250
0.95%, 3/15/16		150		150
1.38%, 7/15/16		250		252
2.55%, 1/12/17		500		518
1.38%, 12/18/17		250		245
4.38%, 1/13/21		250		270

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Banks – 2.1% – continued
Barclays Bank PLC, 2.75%, 2/23/15		$1,250		$1,283
5.14%, 10/14/20		500		522
BNP Paribas S.A., 2.38%, 9/14/17		625		633
5.00%, 1/15/21		1,000		1,082
3.25%, 3/3/23		250		234
Canadian Imperial Bank of Commerce, 0.90%, 10/1/15		315		316
1.35%, 7/18/16		250		252
1.55%, 1/23/18		150		147
Commonwealth Bank of Australia, 2.50%, 9/20/18		250		253
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A., 1.70%, 3/19/18		125		123
4.50%, 1/11/21		1,000		1,068
3.88%, 2/8/22		750		751
3.95%, 11/9/22		250		240
Credit Suisse, 3.50%, 3/23/15		250		260
5.30%, 8/13/19		1,000		1,130
Deutsche Bank A.G., 3.45%, 3/30/15		500		520
3.25%, 1/11/16		150		157
6.00%, 9/1/17		1,225		1,406
Export-Import Bank of Korea, 4.00%, 1/11/17		200		213
4.00%, 1/29/21		1,000		1,024
HSBC Holdings PLC, 5.10%, 4/5/21		1,100		1,212
4.88%, 1/14/22		500		539
4.00%, 3/30/22		500		509
6.50%, 9/15/37		300		340
6.80%, 6/1/38		150		177
KFW, 4.13%, 10/15/14		500		520
1.00%, 1/12/15		3,000		3,027
0.63%, 4/24/15		3,000		3,014
0.50%, 4/19/16		800		798
2.00%, 6/1/16		500		518
4.88%, 1/17/17		200		225
1.25%, 2/15/17		500		505
4.38%, 3/15/18		375		423
4.00%, 1/27/20		1,500		1,662

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Banks – 2.1% – continued
2.75%, 9/8/20		$500		$512
2.75%, 10/1/20		1,000		1,021
2.63%, 1/25/22		900		892
2.00%, 10/4/22		250		233
2.13%, 1/17/23		1,000		935
2.69%, 6/29/37 (5)		500		188
Korea Development Bank (The), 4.38%, 8/10/15		245		259
1.00%, 1/22/16		200		197
3.50%, 8/22/17		850		892
3.00%, 3/17/19		200		201
3.00%, 9/14/22		215		203
Korea Finance Corp., 2.25%, 8/7/17		300		300
Landwirtschaftliche Rentenbank, 3.13%, 7/15/15		525		550
2.13%, 7/15/16		250		260
5.13%, 2/1/17		900		1,023
1.88%, 9/17/18		200		202
1.38%, 10/23/19		140		134
National Australia Bank Ltd., 1.60%, 8/7/15		350		356
0.90%, 1/20/16		250		250
1.30%, 7/25/16		250		251
2.75%, 3/9/17		250		259
National Bank of Canada, 1.45%, 11/7/17		250		245
Oesterreichische Kontrollbank A.G., 4.50%, 3/9/15		650		688
1.13%, 7/6/15		225		228
5.00%, 4/25/17		100		114
Royal Bank of Canada, 1.45%, 10/30/14		165		167
1.15%, 3/13/15		500		504
0.80%, 10/30/15		200		200
0.63%, 12/4/15		240		239
2.63%, 12/15/15		180		187
0.85%, 3/8/16		150		150
2.88%, 4/19/16		200		209
2.30%, 7/20/16		250		258
1.45%, 9/9/16		100		101
1.20%, 9/19/17		400		395
2.20%, 7/27/18		350		351

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Banks – 2.1% – continued
Royal Bank of Scotland (The) PLC, 4.38%, 3/16/16		$175		$187
Royal Bank of Scotland Group PLC, 2.55%, 9/18/15		1,200		1,226
6.40%, 10/21/19		200		229
Societe Generale S.A., 2.75%, 10/12/17		250		256
2.63%, 10/1/18		250		251
Sumitomo Mitsui Banking Corp., 1.80%, 7/18/17		250		250
2.50%, 7/19/18		250		253
3.00%, 1/18/23		210		197
Svenska Handelsbanken AB, 1.63%, 3/21/18		900		883
2.50%, 1/25/19		250		251
Toronto-Dominion Bank (The), 2.50%, 7/14/16		150		156
2.38%, 10/19/16		565		584
1.40%, 4/30/18		165		161
2.63%, 9/10/18		200		205
UBS A.G., 5.88%, 7/15/16		450		498
5.88%, 12/20/17		372		429
5.75%, 4/25/18		125		144
4.88%, 8/4/20		400		447
Westpac Banking Corp., 3.00%, 8/4/15		250		261
3.00%, 12/9/15		200		209
0.95%, 1/12/16		500		501
2.00%, 8/14/17		300		304
2.25%, 7/30/18		250		251
4.88%, 11/19/19		1,000		1,119
				51,871
Beverages - 0.1%
Diageo Capital PLC, 5.50%, 9/30/16		150		169
1.50%, 5/11/17		235		235
5.75%, 10/23/17		850		977
1.13%, 4/29/18		275		266
3.88%, 4/29/43		75		65
				1,712

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Chemicals – 0.1%
Agrium, Inc., 3.15%, 10/1/22		$200		$186
7.13%, 5/23/36		100		117
6.13%, 1/15/41		100		107
LYB International Finance B.V., 4.00%, 7/15/23		185		183
Potash Corp. of Saskatchewan, Inc., 3.75%, 9/30/15		300		316
6.50%, 5/15/19		135		160
5.88%, 12/1/36		50		55
5.63%, 12/1/40		250		264
				1,388
Diversified Financial Services – 0.0%
Nomura Holdings, Inc., 5.00%, 3/4/15		235		247
Electric – 0.1%
Hydro-Quebec, 2.00%, 6/30/16		75		77
1.38%, 6/19/17		250		250
9.40%, 2/1/21		200		276
Scottish Power Ltd., 5.38%, 3/15/15		300		317
TransAlta Corp., 4.75%, 1/15/15		370		386
				1,306
Electronics – 0.0%
Koninklijke Philips N.V., 3.75%, 3/15/22		250		249
6.88%, 3/11/38		225		274
5.00%, 3/15/42		100		98
				621
Food – 0.0%
Delhaize Group S.A., 4.13%, 4/10/19		35		36
5.70%, 10/1/40		1,000		977
				1,013
Healthcare - Products – 0.1%
Covidien International Finance S.A., 1.35%, 5/29/15		500		505
6.00%, 10/15/17		800		925
2.95%, 6/15/23		100		94

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Healthcare - Products – 0.1% – continued
6.55%, 10/15/37		$25		$31
				1,555
Insurance – 0.1%
Allied World Assurance Co. Ltd., 7.50%, 8/1/16		100		116
AXA S.A., 8.60%, 12/15/30		75		91
Endurance Specialty Holdings Ltd., 7.00%, 7/15/34		100		108
Trinity Acquisition PLC, 6.13%, 8/15/43		75		73
Willis Group Holdings PLC, 5.75%, 3/15/21		450		486
XL Group PLC, 6.25%, 5/15/27		50		56
XLIT Ltd., 5.75%, 10/1/21		200		228
				1,158
Internet – 0.0%
Baidu, Inc., 3.25%, 8/6/18		210		210
3.50%, 11/28/22		200		183
				393
Iron/Steel – 0.1%
Vale Overseas Ltd., 4.63%, 9/15/20		1,830		1,852
4.38%, 1/11/22		155		149
6.88%, 11/21/36		900		913
				2,914
Leisure Time – 0.0%
Carnival Corp., 1.20%, 2/5/16		55		55
Media – 0.0%
Grupo Televisa S.A.B., 6.63%, 1/15/40		570		615
Thomson Reuters Corp., 3.95%, 9/30/21		200		203
5.50%, 8/15/35		150		152
				970
Mining – 0.4%
Barrick Gold Corp., 2.90%, 5/30/16		200		202

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Mining – 0.4% – continued
2.50%, 5/1/18		$175		$167
6.95%, 4/1/19		300		342
3.85%, 4/1/22		1,175		1,039
BHP Billiton Finance USA Ltd., 5.25%, 12/15/15		250		273
1.88%, 11/21/16		100		102
1.63%, 2/24/17		600		604
5.40%, 3/29/17		100		113
2.05%, 9/30/18		200		200
6.50%, 4/1/19		200		239
3.25%, 11/21/21		250		248
4.13%, 2/24/42		600		540
Goldcorp, Inc., 2.13%, 3/15/18		200		195
Rio Tinto Alcan, Inc., 6.13%, 12/15/33		100		113
Rio Tinto Finance USA Ltd., 2.50%, 5/20/16		155		160
2.25%, 9/20/16		150		154
6.50%, 7/15/18		675		796
9.00%, 5/1/19		575		746
3.75%, 9/20/21		500		493
Rio Tinto Finance USA PLC, 1.38%, 6/17/16		180		180
2.00%, 3/22/17		150		151
1.63%, 8/21/17		85		84
2.88%, 8/21/22		175		161
4.75%, 3/22/42		150		139
4.13%, 8/21/42		300		253
Teck Resources Ltd., 3.85%, 8/15/17		35		37
3.00%, 3/1/19		85		84
6.00%, 8/15/40		195		181
6.25%, 7/15/41		350		339
5.20%, 3/1/42		125		106
5.40%, 2/1/43		130		114
				8,555
Miscellaneous Manufacturing – 0.0%
Pentair Finance S.A., 1.35%, 12/1/15		155		156
Tyco Electronics Group S.A., 6.55%, 10/1/17		50		58
3.50%, 2/3/22		125		120
7.13%, 10/1/37		50		59

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Miscellaneous Manufacturing – 0.0% – continued
Tyco International Finance S.A., 3.38%, 10/15/15		$11		$11
				404
Multi-National – 1.4%
African Development Bank, 2.50%, 3/15/16		500		523
1.25%, 9/2/16		40		41
1.13%, 3/15/17		500		502
0.88%, 3/15/18		250		244
Asian Development Bank, 2.50%, 3/15/16		500		523
0.50%, 6/20/16		200		199
5.50%, 6/27/16		600		678
1.13%, 3/15/17		355		357
5.59%, 7/16/18		50		59
1.75%, 9/11/18		150		151
1.75%, 3/21/19		1,500		1,498
1.38%, 3/23/20		250		239
Corp. Andina de Fomento, 4.38%, 6/15/22		613		611
Council Of Europe Development Bank, 1.50%, 1/15/15		150		152
2.63%, 2/16/16		350		366
1.25%, 9/22/16		150		152
1.50%, 6/19/17		200		202
European Bank for Reconstruction & Development, 1.63%, 9/3/15		500		511
2.50%, 3/15/16		300		313
1.38%, 10/20/16		150		152
1.00%, 2/16/17		500		500
0.75%, 9/1/17		300		295
European Bank for Reconstruction & Development, 1.00%, 6/15/18		150		147
1.50%, 3/16/20		250		241
European Investment Bank, 2.88%, 1/15/15		850		878
2.75%, 3/23/15		500		518
1.13%, 4/15/15		500		506
1.00%, 7/15/15		400		404
1.63%, 9/1/15		500		512
1.38%, 10/20/15		500		509
2.25%, 3/15/16		400		416

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Multi-National – 1.4% – continued
1.13%, 12/15/16		$1,000		$1,006
4.88%, 1/17/17		800		899
1.75%, 3/15/17		1,000		1,022
5.13%, 5/30/17		350		399
1.63%, 6/15/17		250		254
1.00%, 12/15/17		1,000		980
1.00%, 3/15/18		2,000		1,953
1.00%, 6/15/18		2,650		2,571
2.88%, 9/15/20		500		509
4.88%, 2/15/36		200		221
Inter-American Development Bank, 0.50%, 8/17/15		500		501
0.88%, 11/15/16		250		250
1.13%, 3/15/17		1,000		1,006
0.88%, 3/15/18		500		490
1.75%, 8/24/18		250		253
4.25%, 9/10/18		400		452
1.13%, 9/12/19		200		191
3.88%, 9/17/19		600		664
3.88%, 2/14/20		500		552
3.88%, 10/28/41		200		189
International Bank for Reconstruction & Development, 2.38%, 5/26/15		375		388
2.13%, 3/15/16		1,000		1,037
5.00%, 4/1/16		450		498
0.50%, 4/15/16		450		448
1.00%, 9/15/16		500		504
0.88%, 4/17/17		1,000		998
9.25%, 7/15/17		100		129
4.75%, 2/15/35		25		28
International Finance Corp., 0.50%, 5/16/16		375		373
1.13%, 11/23/16		500		504
1.00%, 4/24/17		890		889
0.88%, 6/15/18		500		485
Nordic Investment Bank, 2.50%, 7/15/15		900		932
0.50%, 4/14/16		250		250
5.00%, 2/1/17		100		113
				34,337
Oil & Gas – 1.3%
Alberta Energy Co. Ltd., 7.38%, 11/1/31		75		88

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Oil & Gas – 1.3% – continued
Anadarko Finance Co., 7.50%, 5/1/31		$75		$93
BP Capital Markets PLC, 3.88%, 3/10/15		100		105
3.13%, 10/1/15		100		105
1.85%, 5/5/17		250		252
1.38%, 11/6/17		150		148
1.38%, 5/10/18		250		243
2.24%, 9/26/18		100		100
4.75%, 3/10/19		1,200		1,327
4.50%, 10/1/20		600		648
4.74%, 3/11/21		450		488
3.99%, 9/26/23		120		121
Burlington Resources Finance Co., 7.20%, 8/15/31		200		262
Canadian Natural Resources Ltd., 1.45%, 11/14/14		125		126
5.70%, 5/15/17		225		254
5.90%, 2/1/18		250		288
6.25%, 3/15/38		150		167
6.75%, 2/1/39		50		59
Cenovus Energy, Inc., 3.00%, 8/15/22		55		52
6.75%, 11/15/39		590		699
CNOOC Finance 2013 Ltd., 3.00%, 5/9/23		250		225
Encana Corp., 5.90%, 12/1/17		725		832
6.50%, 5/15/19		75		88
3.90%, 11/15/21		250		251
6.50%, 8/15/34		100		108
6.63%, 8/15/37		330		366
Husky Energy, Inc., 6.20%, 9/15/17		600		691
7.25%, 12/15/19		200		245
3.95%, 4/15/22		100		100
Nexen, Inc., 6.20%, 7/30/19		60		70
7.88%, 3/15/32		75		93
7.50%, 7/30/39		330		405
Noble Holding International Ltd., 3.45%, 8/1/15		200		208
6.05%, 3/1/41		70		70
5.25%, 3/15/42		100		91

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Oil & Gas – 1.3% – continued
Petrobras Global Finance B.V., 2.00%, 5/20/16		$100		$99
3.00%, 1/15/19		400		376
5.63%, 5/20/43		25		21
Petrobras International Finance Co. – Pifco, 3.50%, 2/6/17		320		325
8.38%, 12/10/18		585		700
7.88%, 3/15/19		395		455
5.75%, 1/20/20		665		691
5.38%, 1/27/21		1,490		1,497
6.88%, 1/20/40		395		388
6.75%, 1/27/41		140		135
Petro-Canada, 6.05%, 5/15/18		50		58
5.95%, 5/15/35		100		109
6.80%, 5/15/38		180		214
Petroleos Mexicanos, 3.50%, 7/18/18		85		86
6.00%, 3/5/20		550		610
5.50%, 1/21/21		1,810		1,937
4.88%, 1/24/22		2,000		2,040
3.50%, 1/30/23		75		68
6.50%, 6/2/41		190		197
Shell International Finance B.V., 3.10%, 6/28/15		400		418
0.63%, 12/4/15		200		200
1.13%, 8/21/17		65		65
4.30%, 9/22/19		1,450		1,601
6.38%, 12/15/38		660		824
4.55%, 8/12/43		250		246
Statoil ASA, 1.80%, 11/23/16		100		103
3.13%, 8/17/17		550		585
1.15%, 5/15/18		200		194
5.25%, 4/15/19		850		976
3.15%, 1/23/22		125		123
7.75%, 6/15/23		100		131
7.15%, 1/15/29		250		324
4.25%, 11/23/41		350		322
Suncor Energy, Inc., 6.10%, 6/1/18		480		562
7.15%, 2/1/32		200		248
5.95%, 12/1/34		50		55
6.50%, 6/15/38		285		332

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Oil & Gas – 1.3% – continued
Talisman Energy, Inc., 7.75%, 6/1/19		$175		$212
7.25%, 10/15/27		400		462
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		126
3.70%, 1/15/24		125		126
Total Capital S.A., 3.00%, 6/24/15		250		260
2.30%, 3/15/16		500		517
4.25%, 12/15/21		200		214
Transocean, Inc., 5.05%, 12/15/16		165		181
6.50%, 11/15/20		200		223
6.38%, 12/15/21		815		906
6.80%, 3/15/38		200		212
				30,826
Oil & Gas Services – 0.1%
Weatherford International Ltd., 5.50%, 2/15/16		200		217
6.00%, 3/15/18		725		813
6.50%, 8/1/36		125		125
				1,155
Pharmaceuticals – 0.2%
Actavis, Inc., 1.88%, 10/1/17		20		20
3.25%, 10/1/22		500		469
4.63%, 10/1/42		60		53
AstraZeneca PLC, 5.90%, 9/15/17		325		378
1.95%, 9/18/19		475		465
6.45%, 9/15/37		300		366
4.00%, 9/18/42		250		222
GlaxoSmithKline Capital PLC, 1.50%, 5/8/17		250		252
Novartis Securities Investment Ltd., 5.13%, 2/10/19		850		974
Sanofi, 2.63%, 3/29/16		250		261
1.25%, 4/10/18		40		39
4.00%, 3/29/21		500		530

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Pharmaceuticals – 0.2% – continued
Teva Pharmaceutical Finance Co. B.V., 2.40%, 11/10/16		$200		$206
3.65%, 11/10/21		250		248
2.95%, 12/18/22		350		324
Teva Pharmaceutical Finance II B.V./Teva Pharmaceutical Finance III LLC, 3.00%, 6/15/15		345		357
Teva Pharmaceutical Finance IV B.V., 3.65%, 11/10/21		250		248
				5,412
Pipelines – 0.1%
Enbridge, Inc., 4.90%, 3/1/15		250		264
4.00%, 10/1/23		150		150
TransCanada PipeLines Ltd., 0.88%, 3/2/15		250		251
0.75%, 1/15/16		250		248
6.50%, 8/15/18		465		555
9.88%, 1/1/21		175		241
5.85%, 3/15/36		275		305
6.20%, 10/15/37		50		58
7.63%, 1/15/39		945		1,252
6.35%, 5/15/67		100		103
				3,427
Regional – 0.5%
Japan Finance Organization for Municipalities, 4.00%, 1/13/21		500		538
Province of British Columbia, 2.85%, 6/15/15		200		208
2.10%, 5/18/16		185		192
2.65%, 9/22/21		150		149
2.00%, 10/23/22		300		274
7.25%, 9/1/36		175		247
Province of Manitoba Canada, 2.63%, 7/15/15		120		125
4.90%, 12/6/16		200		225
1.30%, 4/3/17		165		166
1.75%, 5/30/19		100		98
9.25%, 4/1/20		150		202
2.10%, 9/6/22		100		92
Province of Nova Scotia Canada, 8.25%, 7/30/22		350		470

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Regional – 0.5% – continued
Province of Ontario Canada, 2.95%, 2/5/15		$400		$414
4.75%, 1/19/16		200		218
5.45%, 4/27/16		350		391
2.30%, 5/10/16		1,000		1,038
4.95%, 11/28/16		650		728
1.10%, 10/25/17		625		615
1.20%, 2/14/18		250		246
1.65%, 9/27/19		250		241
4.00%, 10/7/19		835		909
4.40%, 4/14/20		500		554
2.45%, 6/29/22		500		468
Province of Quebec Canada, 5.13%, 11/14/16		250		281
4.63%, 5/14/18		350		395
2.75%, 8/25/21		100		98
2.63%, 2/13/23		875		814
7.50%, 7/15/23		300		392
7.13%, 2/9/24		100		128
7.50%, 9/15/29		375		508
Province of Saskatchewan Canada, 8.50%, 7/15/22		200		275
				11,699
Sovereign – 1.5%
Brazilian Government International Bond, 6.00%, 1/17/17		1,250		1,398
8.00%, 1/15/18		200		225
8.88%, 10/14/19		1,075		1,400
4.88%, 1/22/21		1,000		1,074
8.88%, 4/15/24		600		818
10.13%, 5/15/27		500		760
7.13%, 1/20/37		250		294
11.00%, 8/17/40		835		976
5.63%, 1/7/41		635		633
Canada Government International Bond, 0.88%, 2/14/17		545		545
Chile Government International Bond, 3.25%, 9/14/21		400		396
3.63%, 10/30/42		200		162
Colombia Government International Bond, 7.38%, 1/27/17		500		582
7.38%, 3/18/19		250		303
4.38%, 7/12/21		1,000		1,033

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Sovereign – 1.5% – continued
7.38%, 9/18/37		$350		$437
6.13%, 1/18/41		250		272
Export Development Canada, 0.50%, 9/15/15		150		150
1.50%, 10/3/18		250		250
Israel Government International Bond, 5.50%, 11/9/16		225		254
5.13%, 3/26/19		250		284
4.00%, 6/30/22		250		259
4.50%, 1/30/43		200		179
Italy Government International Bond, 5.25%, 9/20/16		1,000		1,079
5.38%, 6/12/17		1,675		1,826
5.38%, 6/15/33		175		177
Japan Bank for International Cooperation, 2.88%, 2/2/15		500		516
1.88%, 9/24/15		250		256
2.50%, 5/18/16		300		313
1.13%, 7/19/17		750		745
Mexico Government International Bond, 6.63%, 3/3/15		500		540
5.63%, 1/15/17		770		859
5.95%, 3/19/19		500		578
5.13%, 1/15/20		1,360		1,516
4.00%, 10/2/23 (6)		150		149
7.50%, 4/8/33		100		127
6.75%, 9/27/34		750		889
6.05%, 1/11/40		820		897
4.75%, 3/8/44		1,000		905
Panama Government International Bond, 7.25%, 3/15/15		1,250		1,356
6.70%, 1/26/36		550		628
Peruvian Government International Bond, 8.38%, 5/3/16		350		404
7.35%, 7/21/25		250		319
6.55%, 3/14/37		500		591
5.63%, 11/18/50		350		361
Philippine Government International Bond, 10.63%, 3/16/25		500		758
5.50%, 3/30/26		200		223
6.38%, 10/23/34		500		589
5.00%, 1/13/37		500		544
Poland Government International Bond, 3.88%, 7/16/15		110		115

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Sovereign – 1.5% – continued
5.00%, 10/19/15		$475		$511
6.38%, 7/15/19		400		467
5.13%, 4/21/21		150		163
3.00%, 3/17/23		1,000		916
Republic of Korea, 5.13%, 12/7/16		125		139
7.13%, 4/16/19		150		186
South Africa Government International Bond, 6.88%, 5/27/19		275		316
Svensk Exportkredit AB, 5.13%, 3/1/17		500		568
1.75%, 5/30/17		250		255
Turkey Government International Bond, 3.25%, 3/23/23		250		216
6.88%, 3/17/36		500		531
6.00%, 1/14/41		1,500		1,448
Uruguay Government International Bond, 7.63%, 3/21/36		250		315
4.13%, 11/20/45		400		317
				36,292
Telecommunications – 0.5%
America Movil S.A.B. de C.V., 5.75%, 1/15/15		400		423
2.38%, 9/8/16		700		712
3.13%, 7/16/22		295		271
6.13%, 11/15/37		315		329
6.13%, 3/30/40		185		193
British Telecommunications PLC, 2.00%, 6/22/15		200		204
5.95%, 1/15/18		575		659
9.63%, 12/15/30		100		148
Deutsche Telekom International Finance B.V., 5.75%, 3/23/16		525		580
8.75%, 6/15/30		400		554
Nippon Telegraph & Telephone Corp., 1.40%, 7/18/17		150		149
Orange S.A., 2.13%, 9/16/15		125		127
5.38%, 7/8/19		600		664
8.75%, 3/1/31		610		812
Rogers Communications, Inc., 6.80%, 8/15/18		700		836
3.00%, 3/15/23		80		74
5.45%, 10/1/43		100		99

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.7% – continued
Telecommunications – 0.5% – continued
Telecom Italia Capital S.A., 6.38%, 11/15/33		$50		$43
7.72%, 6/4/38		450		433
Telefonaktiebolaget LM Ericsson, 4.13%, 5/15/22		150		147
Telefonica Emisiones S.A.U., 4.95%, 1/15/15		335		349
6.42%, 6/20/16		900		989
5.46%, 2/16/21		370		379
7.05%, 6/20/36		200		212
Telefonos de Mexico S.A.B. de C.V., 5.50%, 1/27/15		125		132
5.50%, 11/15/19		305		335
Vodafone Group PLC, 5.00%, 9/15/15		450		485
5.63%, 2/27/17		325		365
1.63%, 3/20/17		250		249
1.25%, 9/26/17		300		292
2.95%, 2/19/23		500		459
7.88%, 2/15/30		200		254
6.15%, 2/27/37		375		410
4.38%, 2/19/43		305		265
				12,632
Transportation – 0.0%
Canadian National Railway Co., 5.55%, 3/1/19		500		580
2.85%, 12/15/21		85		83
6.90%, 7/15/28		25		32
6.20%, 6/1/36		25		30
6.38%, 11/15/37		50		62
3.50%, 11/15/42		150		122
Canadian Pacific Railway Co., 6.50%, 5/15/18		50		59
5.95%, 5/15/37		50		55
				1,023
Total Foreign Issuer Bonds
(Cost $206,968)				211,060
U.S. GOVERNMENT AGENCIES – 34.3% (7)
Fannie Mae – 16.2%
4.63%, 10/15/14		2,750		2,877
0.75%, 12/19/14		3,000		3,020
0.38%, 3/16/15		4,500		4,508

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
0.50%, 5/27/15		$2,250		$2,257
0.50%, 7/2/15		3,000		3,008
0.50%, 9/28/15		4,000		4,007
1.63%, 10/26/15		1,000		1,024
0.38%, 12/21/15		2,000		1,995
0.50%, 1/29/16		5,000		4,993
2.25%, 3/15/16		2,500		2,600
0.50%, 3/30/16		2,000		1,995
2.38%, 4/11/16		3,000		3,131
0.52%, 5/20/16		2,000		1,989
1.25%, 9/28/16		3,700		3,754
1.38%, 11/15/16		2,000		2,033
4.88%, 12/15/16		4,200		4,731
1.25%, 1/30/17		2,000		2,022
5.00%, 5/11/17		1,000		1,139
5.38%, 6/12/17		1,000		1,154
1.13%, 9/12/17		1,000		990
1.88%, 9/18/18		1,000		1,011
7.13%, 1/15/30		1,500		2,084
6.63%, 11/15/30		200		267
5.63%, 7/15/37		1,000		1,217
Pool #255376, 6.00%, 8/1/19		66		71
Pool #255695, 2.63%, 3/1/35		26		28
Pool #256675, 5.00%, 4/1/27		77		84
Pool #256677, 6.00%, 4/1/27		77		84
Pool #256792, 6.50%, 6/1/22		102		113
Pool #256925, 6.00%, 10/1/37		118		128
Pool #256959, 6.00%, 11/1/37		546		596
Pool #256985, 7.00%, 11/1/37		146		161
Pool #257042, 6.50%, 1/1/38		870		962
Pool #257057, 5.00%, 1/1/28		280		304
Pool #257106, 4.50%, 1/1/28		21		23

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #257237, 4.50%, 6/1/28		$124		$134
Pool #257239, 5.50%, 6/1/28		159		173
Pool #257243, 7.00%, 6/1/38		468		528
Pool #257367, 5.50%, 9/1/28		279		305
Pool #357630, 5.00%, 10/1/19		61		65
Pool #707791, 5.00%, 6/1/33		425		462
Pool #709239, 5.00%, 7/1/18		388		413
Pool #720049, 5.50%, 7/1/33		107		117
Pool #722424, 2.39%, 7/1/33		50		53
Pool #725185, 5.00%, 2/1/19		92		98
Pool #725425, 5.50%, 4/1/34		158		174
Pool #730811, 4.50%, 8/1/33		295		316
Pool #735222, 5.00%, 2/1/35		93		101
Pool #735358, 5.50%, 2/1/35		421		460
Pool #735502, 6.00%, 4/1/35		55		61
Pool #737853, 5.00%, 9/1/33		641		696
Pool #745336, 5.00%, 3/1/36		2,046		2,219
Pool #745418, 5.50%, 4/1/36		161		176
Pool #745754, 5.00%, 9/1/34		917		998
Pool #745826, 6.00%, 7/1/36		627		684
Pool #746272, 4.00%, 10/1/18		298		316
Pool #747383, 5.50%, 10/1/33		289		316

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #753678, 2.55%, 12/1/33		$199		$212
Pool #755632, 5.00%, 4/1/34		359		390
Pool #766083, 2.50%, 2/1/34		77
Pool #772730, 5.00%, 4/1/34		312		339
Pool #773287, 2.49%, 3/1/35		200		213
Pool #790406, 6.00%, 9/1/34		216		239
Pool #793666, 5.50%, 9/1/34		194		211
Pool #796250, 5.50%, 11/1/34		99		108
Pool #800471, 5.50%, 10/1/34		811		884
Pool #807701, 4.50%, 12/1/19		59		63
Pool #811944, 4.50%, 1/1/20		62		65
Pool #815639, 2.35%, 6/1/35		40		43
Pool #817795, 6.00%, 8/1/36		96		105
Pool #821912, 2.09%, 6/1/35		386		406
Pool #822455, 2.69%, 4/1/35		91		95
Pool #826057, 5.00%, 7/1/35		238		260
Pool #826368, 2.41%, 7/1/35		145		155
Pool #826585, 5.00%, 8/1/35		491		532
Pool #828523, 5.00%, 7/1/35		153		166
Pool #831676, 6.50%, 8/1/36		67		74
Pool #832628, 5.50%, 9/1/20		90		98
Pool #833067, 5.50%, 9/1/35		627		682

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #833163, 5.00%, 9/1/35		$381		$413
Pool #835517, 4.94%, 8/1/35		42		45
Pool #840577, 5.00%, 10/1/20		62		66
Pool #844909, 4.50%, 10/1/20		22		24
Pool #845425, 6.00%, 2/1/36		627		684
Pool #846600, 2.74%, 1/1/36		388		417
Pool #847921, 5.50%, 11/1/20		262		283
Pool #850614, 2.77%, 1/1/36		55		58
Pool #863759, 4.00%, 12/1/20		46		49
Pool #864435, 4.50%, 12/1/20		150		160
Pool #866109, 2.67%, 12/1/35		30		32
Pool #868435, 6.00%, 4/1/36		491		539
Pool #869217, 2.61%, 2/1/36		135		144
Pool #869710, 6.00%, 4/1/36		230		252
Pool #871135, 6.00%, 1/1/37		144		157
Pool #880505, 6.00%, 8/1/21		37		40
Pool #881818, 6.50%, 8/1/36		438		484
Pool #882055, 2.02%, 6/1/36		114		118
Pool #884776, 2.65%, 10/1/36		165		174
Pool #885769, 6.00%, 6/1/36		66		73
Pool #885866, 6.00%, 6/1/36		167		182
Pool #887019, 2.35%, 6/1/36		138		146

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #887111, 5.50%, 5/1/20		$65		$69
Pool #888100, 5.50%, 9/1/36		580		634
Pool #888152, 5.00%, 5/1/21		158		168
Pool #888205, 6.50%, 2/1/37		162		179
Pool #888318, 2.53%, 2/1/37		88		93
Pool #888447, 4.00%, 5/1/21		83		88
Pool #889224, 5.50%, 1/1/37		764		833
Pool #889390, 6.00%, 3/1/23		122		135
Pool #889401, 6.00%, 3/1/38		414		451
Pool #889415, 6.00%, 5/1/37		1,652		1,825
Pool #889579, 6.00%, 5/1/38		964		1,052
Pool #889630, 6.50%, 3/1/38		114		126
Pool #889886, 7.00%, 12/1/37		163		178
Pool #889970, 5.00%, 12/1/36		553		600
Pool #890234, 6.00%, 10/1/38		406		444
Pool #890329, 4.00%, 4/1/26		5,797		6,207
Pool #890339, 5.00%, 9/1/20		683		727
Pool #892536, 6.50%, 9/1/36		60		67
Pool #892968, 6.50%, 8/1/21		18		20
Pool #893363, 5.00%, 6/1/36		155		168
Pool #893366, 5.00%, 4/1/35		242		263
Pool #894453, 5.95%, 9/1/36		165		177

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #898089, 5.50%, 7/1/26		$243		$269
Pool #898417, 6.00%, 10/1/36		107		117
Pool #899079, 5.00%, 3/1/37		194		210
Pool #902188, 2.81%, 11/1/36		16		17
Pool #902414, 5.50%, 11/1/36		425		462
Pool #905090, 5.50%, 10/1/21		107		113
Pool #905759, 2.63%, 12/1/36		51		54
Pool #906090, 5.50%, 1/1/37		482		524
Pool #906237, 2.74%, 1/1/37		85		91
Pool #907818, 2.86%, 1/1/37		25		26
Pool #910147, 5.00%, 3/1/22		171		183
Pool #910338, 2.59%, 3/1/37		42		45
Pool #912414, 4.50%, 1/1/22		107		114
Pool #914522, 2.63%, 3/1/37		15		16
Pool #915499, 5.00%, 3/1/37		238		258
Pool #915870, 7.00%, 4/1/37		57		68
Pool #918515, 5.00%, 6/1/37		286		310
Pool #919461, 5.79%, 4/1/37		37		40
Pool #920457, 3.14%, 8/1/36		14		14
Pool #920988, 2.12%, 11/1/36		13		13
Pool #923023, 2.38%, 1/1/37		378		394
Pool #923123, 5.00%, 4/1/36		42		45

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #923166, 7.50%, 1/1/37		$62		$73
Pool #928261, 4.50%, 3/1/36		152		163
Pool #928584, 6.50%, 8/1/37		648		717
Pool #928909, 6.00%, 12/1/37		5		6
Pool #928915, 6.00%, 11/1/37		45		49
Pool #930606, 4.00%, 2/1/39		1,456		1,528
Pool #931195, 4.50%, 5/1/24		454		482
Pool #931665, 4.50%, 7/1/24		1,397		1,484
Pool #932023, 5.00%, 1/1/38		294		318
Pool #932741, 4.50%, 4/1/40		898		967
Pool #934466, 5.50%, 9/1/23		285		310
Pool #940623, 5.50%, 8/1/37		149		162
Pool #943388, 6.00%, 6/1/37		608		665
Pool #943617, 6.00%, 8/1/37		406		444
Pool #945876, 5.50%, 8/1/37		57		62
Pool #946527, 7.00%, 9/1/37		117		132
Pool #947216, 6.00%, 10/1/37		193		212
Pool #949391, 5.50%, 8/1/22		28		30
Pool #953018, 6.50%, 10/1/37		342		378
Pool #953910, 6.00%, 11/1/37		255		279
Pool #955771, 6.50%, 10/1/37		320		354
Pool #959604, 6.50%, 11/1/37		48		53

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #959880, 5.50%, 11/1/37		$141		$153
Pool #962687, 5.00%, 4/1/38		502		543
Pool #963735, 4.50%, 6/1/23		205		218
Pool #965389, 6.00%, 10/1/23		185		198
Pool #966660, 6.00%, 12/1/37		8		9
Pool #968037, 6.00%, 1/1/38		407		444
Pool #969632, 6.50%, 1/1/38		131		144
Pool #970013, 4.50%, 6/1/38		256		273
Pool #971734, 4.50%, 4/1/37		43		46
Pool #972452, 5.50%, 3/1/38		646		703
Pool #975365, 5.00%, 6/1/23		117		126
Pool #976699, 5.00%, 4/1/28		76		83
Pool #976963, 5.50%, 2/1/38		5,189		5,658
Pool #981704, 5.00%, 6/1/23		398		427
Pool #981823, 2.60%, 6/1/38		57		59
Pool #981854, 5.50%, 7/1/38		443		482
Pool #984075, 4.50%, 6/1/23		129		137
Pool #986760, 5.50%, 7/1/38		1,388		1,514
Pool #987114, 5.50%, 9/1/23		86		94
Pool #987115, 5.50%, 9/1/23		111		117
Pool #992472, 6.00%, 10/1/38		141		154
Pool #992491, 4.50%, 10/1/23		93		99

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #993055, 5.50%, 12/1/38		$147		$160
Pool #995018, 5.50%, 6/1/38		303		330
Pool #995203, 5.00%, 7/1/35		1,522		1,653
Pool #995266, 5.00%, 12/1/23		1,283		1,375
Pool #995297, 5.00%, 2/1/38		3,431		3,720
Pool #995737, 5.00%, 2/1/38		2,859		3,102
Pool #995879, 6.00%, 4/1/39		459		502
Pool #AA0451, 6.00%, 12/1/23		18		18
Pool #AA0649, 5.00%, 12/1/38		972		1,059
Pool #AA2939, 4.50%, 4/1/39		1,255		1,353
Pool #AA4482, 4.00%, 4/1/39		1,207		1,268
Pool #AA4562, 4.50%, 9/1/39		1,103		1,190
Pool #AA8978, 4.50%, 7/1/39		276		297
Pool #AA9357, 4.50%, 8/1/39		1,484		1,584
Pool #AB1048, 4.50%, 5/1/40		1,743		1,870
Pool #AB2067, 3.50%, 1/1/41		1,780		1,814
Pool #AB2092, 4.00%, 1/1/41		768		807
Pool #AB2272, 4.50%, 2/1/41		1,357		1,466
Pool #AB2693, 4.50%, 4/1/41		763		817
Pool #AB2768, 4.50%, 4/1/41		1,203		1,293
Pool #AB3246, 5.00%, 7/1/41		753		823
Pool #AB4057, 4.00%, 12/1/41		3,489		3,661

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #AB4293, 3.50%, 1/1/42		$2,155		$2,196
Pool #AB5049, 4.00%, 4/1/42		4,206		4,413
Pool #AB6016, 3.50%, 8/1/42		1,631		1,661
Pool #AB6293, 3.50%, 9/1/27		3,392		3,582
Pool #AB7076, 3.00%, 11/1/42		4,285		4,190
Pool #AB8823, 3.00%, 3/1/43		6,383		6,241
Pool #AB9990, 3.00%, 7/1/33		395		396
Pool #AC2947, 5.50%, 9/1/39		1,644		1,800
Pool #AC2969, 5.00%, 9/1/39		4,489		4,907
Pool #AC3263, 4.50%, 9/1/29		519		564
Pool #AC3312, 4.50%, 10/1/39		2,307		2,462
Pool #AC4861, 4.50%, 11/1/24		930		996
Pool #AC5040, 4.00%, 10/1/24		623		662
Pool #AC6118, 4.50%, 11/1/39		695		742
Pool #AC6742, 4.50%, 1/1/40		2,324		2,502
Pool #AC8518, 5.00%, 12/1/39		1,481		1,632
Pool #AC9581, 5.50%, 1/1/40		2,741		2,995
Pool #AD0119, 6.00%, 7/1/38		1,682		1,836
Pool #AD0585, 4.50%, 12/1/39		1,095		1,184
Pool #AD0639, 6.00%, 12/1/38		391		427
Pool #AD0969, 5.50%, 8/1/37		1,339		1,460
Pool #AD5241, 4.50%, 7/1/40		1,121		1,197

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #AD5525, 5.00%, 6/1/40		$1,178		$1,286
Pool #AD5556, 4.00%, 6/1/25		469		497
Pool #AD7859, 5.00%, 6/1/40		794		870
Pool #AE0289, 3.62%, 5/1/40		407		433
Pool #AE0891, 3.66%, 1/1/41		541		571
Pool #AE0949, 4.00%, 2/1/41		2,457		2,578
Pool #AE0971, 4.00%, 5/1/25		373		396
Pool #AE0981, 3.50%, 3/1/41		1,791		1,825
Pool #AE1807, 4.00%, 10/1/40		3,442		3,612
Pool #AE3873, 4.50%, 10/1/40		563		602
Pool #AE5436, 4.50%, 10/1/40		662		708
Pool #AE5767, 3.54%, 5/1/41		299		315
Pool #AH0525, 4.00%, 12/1/40		2,549		2,675
Pool #AH1295, 3.50%, 1/1/26		952		1,006
Pool #AH2488, 3.26%, 2/1/41		293		306
Pool #AH3226, 5.00%, 2/1/41		381		415
Pool #AH4158, 4.00%, 1/1/41		468		491
Pool #AH5573, 4.00%, 2/1/41		1,879		1,977
Pool #AH5614, 3.50%, 2/1/26		1,014		1,071
Pool #AH8854, 4.50%, 4/1/41		645		691
Pool #AI1247, 4.00%, 4/1/26		567		602
Pool #AI3470, 4.50%, 6/1/41		1,106		1,186

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #AI4361, 3.05%, 9/1/41		$260		$272
Pool #AI4380, 3.00%, 11/1/41		203		212
Pool #AI5539, 3.50%, 6/1/41		252		264
Pool #AI5603, 4.50%, 7/1/41		579		620
Pool #AI7743, 4.00%, 8/1/41		866		909
Pool #AI9137, 2.50%, 11/1/27		2,846		2,865
Pool #AI9555, 4.00%, 9/1/41		1,523		1,598
Pool #AI9828, 2.87%, 11/1/41		305		316
Pool #AJ2001, 3.08%, 10/1/41		215		224
Pool #AJ4093, 3.50%, 10/1/26		283		299
Pool #AJ4408, 4.50%, 10/1/41		459		490
Pool #AJ6086, 3.00%, 12/1/26		662		686
Pool #AJ9152, 3.50%, 12/1/26		3,137		3,312
Pool #AJ9218, 4.00%, 2/1/42		1,681		1,764
Pool #AJ9326, 3.50%, 1/1/42		2,278		2,323
Pool #AJ9355, 3.00%, 1/1/27		1,570		1,627
Pool #AK4524, 4.50%, 3/1/42		4,607		4,942
Pool #AK4945, 3.50%, 2/1/42		1,240		1,263
Pool #AK7766, 2.50%, 3/1/27		1,768		1,780
Pool #AK9444, 4.00%, 3/1/42		767		812
Pool #AL0354, 5.24%, 7/1/36		529		570
Pool #AL0442, 5.50%, 6/1/40		374		407

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #AL0659, 4.50%, 7/1/41		$2,797		$2,991
Pool #AL0766, 4.00%, 9/1/41		2,713		2,853
Pool #AL1449, 4.00%, 1/1/42		2,634		2,765
Pool #AL1849, 6.00%, 2/1/39		1,450		1,587
Pool #AL1939, 3.50%, 6/1/42		2,672		2,723
Pool #AL2243, 4.00%, 3/1/42		3,199		3,357
Pool #AL2303, 4.50%, 6/1/26		1,439		1,531
Pool #AL2326, 4.50%, 4/1/42		6,001		6,430
Pool #AL2397, 2.71%, 8/1/42		395		407
Pool #AL3396, 2.50%, 3/1/28		1,512		1,523
Pool #AL3846, 2.46%, 2/1/43		388		384
Pool #AL3950, 1.77%, 8/1/43		197		197
Pool #AO0752, 3.00%, 4/1/42		1,263		1,235
Pool #AO0800, 3.00%, 4/1/27		1,390		1,441
Pool #AO2973, 3.50%, 5/1/42		2,871		2,931
Pool #AO4136, 3.50%, 6/1/42		2,097		2,136
Pool #AO7970, 2.50%, 6/1/27		892		898
Pool #AO8629, 3.50%, 7/1/42		871		888
Pool #AP6273, 3.00%, 10/1/42		1,350		1,320
Pool #AR1706, 2.50%, 1/1/28		6,945		6,990
Pool #AR3792, 3.00%, 2/1/43		1,278		1,250
Pool #AR8151, 3.00%, 3/1/43		2,057		2,011

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #AR9582, 3.00%, 3/1/43		$732		$716
Pool #AS0018, 3.00%, 7/1/43		4,570		4,468
Pool #AS0275, 3.00%, 8/1/33 (6)		497		496
Pool #AT2720, 3.00%, 5/1/43		2,170		2,122
Pool #AT3180, 3.00%, 5/1/43		4,047		3,957
Pool #AT5026, 3.00%, 5/1/43		3,898		3,812
Pool #AU1657, 2.50%, 7/1/28		1,086		1,094
Pool #AU1808, 3.00%, 8/1/43		3,380		3,305
Pool #AU3164, 3.00%, 8/1/33		398		399
Pool #AU4336, 2.26%, 8/1/43		971		972
Pool #AU5918, 3.00%, 9/1/43		2,992		2,926
Pool #AU5919, 3.50%, 9/1/43		2,993		3,049
Pool #MA0361, 4.00%, 3/1/30		559		591
Pool #MA0667, 4.00%, 3/1/31		1,145		1,222
Pool #MA0706, 4.50%, 4/1/31		1,699		1,835
Pool #MA0711, 3.50%, 4/1/31		619		631
Pool #MA0720, 5.00%, 4/1/31		661		720
Pool #MA0804, 4.00%, 7/1/31		788		840
Pool #MA0976, 3.50%, 2/1/32		1,381		1,434
Pool #MA1107, 3.50%, 7/1/32		1,678		1,741
Pool #MA1138, 3.50%, 8/1/32		896		930
Pool #MA1141, 3.00%, 8/1/32		428		428

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Fannie Mae – 16.2% – continued
Pool #MA1200, 3.00%, 10/1/32		$2,276		$2,277
Pool #MA1432, 3.00%, 5/1/33		2,153		2,155
Pool #MA1511, 2.50%, 7/1/33		593		573
Pool TBA, 2.00%, 10/13/28 (6)		3,000		2,926
2.50%, 10/13/28 (6)		4,100		4,123
3.00%, 10/13/28 (6)		8,900		9,214
2.50%, 10/13/43 (6)		2,300		2,137
3.00%, 10/13/43 (6)		12,500		12,211
3.50%, 10/13/43 (6)		24,900		25,347
				393,922
Federal Home Loan Bank – 0.7%
0.25%, 2/20/15		4,500		4,499
0.50%, 11/20/15		5,000		5,000
5.13%, 10/19/16		5,450		6,156
5.50%, 7/15/36		500		591
				16,246
Freddie Mac – 3.1%
0.75%, 11/25/14		3,000		3,020
2.88%, 2/9/15		2,000		2,071
0.50%, 4/17/15		3,500		3,512
4.38%, 7/17/15		900		965
5.25%, 4/18/16		500		559
2.50%, 5/27/16		4,000		4,192
2.00%, 8/25/16		5,675		5,880
5.00%, 2/16/17		500		567
1.00%, 3/8/17		2,500		2,508
5.13%, 11/17/17		500		577
0.75%, 1/12/18		2,000		1,949
4.88%, 6/13/18		2,600		2,989
3.75%, 3/27/19		1,000		1,100
1.25%, 10/2/19		1,000		956
2.38%, 1/13/22		3,000		2,920
6.75%, 3/15/31		1,200		1,627
1.00%, 9/27/17		3,000		2,964
0.88%, 3/7/18		1,000		977
Pool #1B2125, 2.50%, 3/1/35		327		346
Pool #1B2934, 2.57%, 3/1/36		402		425

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac – 3.1% – continued
Pool #1B3264, 6.10%, 2/1/37		$92		$99
Pool #1B7328, 3.06%, 4/1/37		53		57
Pool #1B7359, 6.05%, 5/1/37		24		25
Pool #1G0321, 2.83%, 9/1/35		92		96
Pool #1G0911, 2.53%, 4/1/36		224		237
Pool #1G1506, 5.46%, 1/1/37		27		29
Pool #1G1623, 5.75%, 4/1/37		56		59
Pool #1G1763, 2.76%, 11/1/35		30		32
Pool #1G1790, 3.16%, 11/1/35		60		63
Pool #1G2620, 2.65%, 11/1/36		13		13
Pool #1G2675, 5.73%, 2/1/38		223		239
Pool #1G3611, 2.25%, 4/1/37		38		41
Pool #1H1348, 3.47%, 10/1/36		19		20
Pool #1H2569, 2.49%, 9/1/35		487		517
Pool #1H2605, 2.38%, 4/1/36		131		137
Pool #1J0345, 2.69%, 3/1/37		23		25
Pool #1J0355, 2.74%, 3/1/37		17		18
Pool #1J0365, 2.67%, 4/1/37		109		116
Pool #1J1390, 5.98%, 12/1/36		25		26
Pool #1J1634, 2.72%, 12/1/36		221		237
Pool #1L0078, 2.38%, 6/1/35		30		32
Pool #1L1214, 2.38%, 12/1/35		1,180		1,245

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac – 3.1% – continued
Pool #1L1480, 2.08%, 12/1/33		$70		$71
Pool #1N0243, 2.62%, 8/1/36		15		16
Pool #1N1746, 2.27%, 9/1/37		103		109
Pool #2B1466, 2.02%, 7/1/43		198		196
Pool #781274, 2.45%, 2/1/34		17		18
Pool #782905, 4.90%, 12/1/34		15		16
Pool #847755, 2.57%, 5/1/37		77		82
Pool #848626, 3.39%, 6/1/41		215		226
Pool #848639, 3.22%, 9/1/41		259		270
Pool TBA, 2.00%, 10/13/28 (6)		1,900		1,852
2.50%, 10/13/28 (6)		3,000		3,017
3.00%, 10/13/28 (6)		4,000		4,134
2.50%, 10/13/43 (6)		1,000		923
3.00%, 10/13/43 (6)		10,600		10,315
3.50%, 10/13/43 (6)		11,600		11,774
				76,486
Freddie Mac Gold – 6.5%
Pool #A16753, 5.00%, 11/1/33		117		128
Pool #A17665, 5.00%, 1/1/34		198		215
Pool #A27950, 5.50%, 11/1/34		720		780
Pool #A31136, 5.50%, 1/1/35		293		322
Pool #A39306, 5.50%, 11/1/35		764		827
Pool #A46224, 5.00%, 7/1/35		84		91
Pool #A48104, 5.00%, 1/1/36		177		190
Pool #A51296, 6.00%, 8/1/36		149		164

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #A54897, 6.50%, 8/1/36		$129		$146
Pool #A56110, 5.50%, 12/1/36		271		293
Pool #A57604, 5.00%, 3/1/37		756		814
Pool #A58690, 6.00%, 3/1/37		22		24
Pool #A58718, 5.50%, 3/1/37		45		49
Pool #A59081, 5.50%, 4/1/37		651		703
Pool #A60942, 5.00%, 5/1/37		177		190
Pool #A61560, 5.50%, 10/1/36		1,063		1,160
Pool #A61573, 5.00%, 9/1/34		1,510		1,646
Pool #A61597, 5.50%, 12/1/35		109		118
Pool #A64474, 5.50%, 9/1/37		66		72
Pool #A67116, 7.00%, 10/1/37		36		43
Pool #A68761, 5.50%, 9/1/37		224		242
Pool #A69169, 4.50%, 12/1/37		331		352
Pool #A69303, 6.00%, 11/1/37		101		110
Pool #A73778, 5.00%, 2/1/38		281		303
Pool #A74134, 7.00%, 2/1/38		60		68
Pool #A78507, 5.00%, 6/1/38		1,264		1,369
Pool #A81606, 6.00%, 9/1/38		130		142
Pool #A81856, 7.00%, 9/1/38		30		34
Pool #A83008, 5.50%, 11/1/38		1,294		1,404
Pool #A84432, 4.50%, 2/1/39		192		204

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #A88476, 4.50%, 9/1/39		$3,445		$3,691
Pool #A88566, 5.00%, 9/1/39		1,874		2,036
Pool #A89346, 4.50%, 10/1/39		2,296		2,443
Pool #A90749, 4.50%, 1/1/40		1,530		1,638
Pool #A91541, 5.00%, 3/1/40		560		608
Pool #A91626, 4.50%, 3/1/40		1,064		1,144
Pool #A91942, 4.50%, 4/1/40		772		821
Pool #A94672, 4.50%, 10/1/40		1,228		1,308
Pool #A96296, 4.00%, 1/1/41		1,140		1,195
Pool #A96310, 4.00%, 1/1/41		779		815
Pool #A96995, 4.00%, 2/1/41		2,040		2,133
Pool #A97443, 4.50%, 3/1/41		935		998
Pool #B10630, 4.50%, 11/1/18		245		259
Pool #B17658, 4.50%, 1/1/20		10		10
Pool #B18502, 5.50%, 6/1/20		23		24
Pool #B18931, 4.50%, 3/1/20		30		32
Pool #C03457, 4.50%, 2/1/40		738		786
Pool #C03821, 3.50%, 4/1/42		2,931		2,977
Pool #C09004, 3.50%, 7/1/42		819		832
Pool #C09042, 3.50%, 5/1/43		1,078		1,095
Pool #C91009, 5.00%, 11/1/26		44		47
Pool #C91020, 5.50%, 3/1/27		78		84

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #C91247, 5.00%, 4/1/29		$317		$337
Pool #C91354, 4.00%, 1/1/31		1,136		1,198
Pool #C91370, 4.50%, 5/1/31		693		753
Pool #C91388, 3.50%, 2/1/32		596		619
Pool #C91402, 4.00%, 10/1/31		1,003		1,059
Pool #C91408, 3.50%, 11/1/31		632		655
Pool #C91485, 3.50%, 8/1/32		898		936
Pool #D97197, 5.00%, 2/1/27		10		11
Pool #D97498, 6.00%, 12/1/27		351		383
Pool #D97524, 5.50%, 1/1/28		196		213
Pool #D97564, 5.00%, 1/1/28		212		229
Pool #D98301, 4.50%, 7/1/29		202		215
Pool #E03033, 3.00%, 2/1/27		1,428		1,477
Pool #E04044, 3.50%, 8/1/27		2,296		2,419
Pool #E99030, 4.50%, 9/1/18		328		346
Pool #G01907, 4.50%, 8/1/34		105		112
Pool #G01974, 5.00%, 12/1/35		1,046		1,129
Pool #G02064, 5.00%, 2/1/36		481		519
Pool #G02069, 5.50%, 3/1/36		93		101
Pool #G02386, 6.00%, 11/1/36		1,003		1,099
Pool #G02391, 6.00%, 11/1/36		29		31
Pool #G02540, 5.00%, 11/1/34		175		191

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #G02649, 6.00%, 1/1/37		$41		$45
Pool #G02702, 6.50%, 1/1/37		122		135
Pool #G02789, 6.00%, 4/1/37		2,996		3,262
Pool #G02911, 6.00%, 4/1/37		61		67
Pool #G02973, 6.00%, 6/1/37		118		129
Pool #G03121, 5.00%, 6/1/36		481		519
Pool #G03134, 5.50%, 8/1/36		208		225
Pool #G03176, 5.00%, 8/1/37		177		191
Pool #G03218, 6.00%, 9/1/37		139		151
Pool #G03351, 6.00%, 9/1/37		236		257
Pool #G03513, 6.00%, 11/1/37		306		334
Pool #G03600, 7.00%, 11/1/37		122		133
Pool #G03737, 6.50%, 11/1/37		2,014		2,228
Pool #G03992, 6.00%, 3/1/38		339		369
Pool #G04287, 5.00%, 5/1/38		460		495
Pool #G04459, 5.50%, 6/1/38		433		468
Pool #G04611, 6.00%, 7/1/38		844		920
Pool #G04650, 6.50%, 9/1/38		759		839
Pool #G04817, 5.00%, 9/1/38		276		297
Pool #G05082, 5.00%, 3/1/38		584		630
Pool #G05167, 4.50%, 2/1/39		677		720
Pool #G05457, 4.50%, 5/1/39		3,006		3,200

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #G05725, 4.50%, 11/1/39		$970		$1,044
Pool #G05733, 5.00%, 11/1/39		913		992
Pool #G05870, 4.50%, 4/1/40		1,146		1,227
Pool #G05876, 4.50%, 4/1/40		2,877		3,103
Pool #G05971, 5.50%, 8/1/40		3,112		3,385
Pool #G06020, 5.50%, 12/1/39		3,294		3,562
Pool #G06767, 5.00%, 10/1/41		1,888		2,062
Pool #G06947, 6.00%, 5/1/40		866		943
Pool #G07030, 4.00%, 6/1/42		4,652		4,879
Pool #G07098, 3.50%, 7/1/42		1,756		1,783
Pool #G07152, 4.00%, 6/1/42		4,089		4,276
Pool #G07171, 4.00%, 8/1/42		2,018		2,114
Pool #G08189, 7.00%, 3/1/37		40		46
Pool #G08192, 5.50%, 4/1/37		195		210
Pool #G08341, 5.00%, 4/1/39		3,189		3,434
Pool #G08477, 3.50%, 2/1/42		1,530		1,554
Pool #G11776, 4.50%, 9/1/20		61		65
Pool #G12571, 4.00%, 1/1/22		194		206
Pool #G12673, 5.00%, 9/1/21		148		157
Pool #G12837, 4.50%, 4/1/22		208		220
Pool #G12868, 5.00%, 11/1/22		275		297
Pool #G12869, 5.00%, 9/1/22		253		273

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #G13136, 4.50%, 5/1/23		$285		$301
Pool #G13151, 6.00%, 3/1/23		278		306
Pool #G13201, 4.50%, 7/1/23		162		171
Pool #G13433, 5.50%, 1/1/24		216		234
Pool #G14168, 5.50%, 12/1/24		429		459
Pool #G14239, 4.00%, 9/1/26		4,499		4,767
Pool #G14554, 4.50%, 7/1/26		623		660
Pool #G18220, 6.00%, 11/1/22		31		34
Pool #G18438, 2.50%, 6/1/27		785		790
Pool #G18442, 3.50%, 8/1/27		1,619		1,703
Pool #G30327, 4.50%, 1/1/27		39		43
Pool #J00991, 4.00%, 1/1/21		84		89
Pool #J02541, 4.00%, 9/1/20		56		59
Pool #J03041, 6.00%, 7/1/21		99		108
Pool #J03736, 5.50%, 11/1/21		89		96
Pool #J05307, 4.50%, 8/1/22		32		34
Pool #J06175, 5.00%, 5/1/21		44		47
Pool #J06465, 6.00%, 11/1/22		26		28
Pool #J06476, 5.50%, 11/1/22		60		65
Pool #J08098, 5.50%, 6/1/23		51		54
Pool #J08202, 5.00%, 7/1/23		82		87
Pool #J08454, 5.00%, 8/1/23		155		164

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #J08913, 5.50%, 10/1/23		$72		$78
Pool #J09148, 5.00%, 12/1/23		175		186
Pool #J09305, 5.00%, 2/1/24		274		296
Pool #J09463, 5.00%, 3/1/24		128		136
Pool #J11136, 4.00%, 11/1/24		161		171
Pool #J12098, 4.50%, 4/1/25		1,328		1,404
Pool #J14808, 3.50%, 3/1/26		1,526		1,607
Pool #J17055, 3.00%, 11/1/26		735		760
Pool #J17232, 3.00%, 11/1/26		791		819
Pool #J17932, 3.00%, 3/1/27		1,367		1,415
Pool #J20834, 2.50%, 10/1/27		1,369		1,379
Pool #J21601, 2.50%, 12/1/27		5,149		5,187
Pool #J22986, 2.50%, 3/1/28		2,605		2,626
Pool #K90071, 3.00%, 2/1/33		2,123		2,125
Pool #K90641, 3.50%, 6/1/33		297		308
Pool #K90791, 3.00%, 7/1/33		793		799
Pool #Q02211, 4.50%, 7/1/41		1,059		1,134
Pool #Q02605, 4.50%, 8/1/41		2,891		3,087
Pool #Q03085, 4.00%, 9/1/41		643		672
Pool #Q04649, 3.50%, 11/1/41		618		627
Pool #Q08894, 3.50%, 6/1/42		1,385		1,408
Pool #Q09009, 4.00%, 6/1/42		3,635		3,808

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Freddie Mac Gold – 6.5% – continued
Pool #Q14324, 3.00%, 1/1/43		$2,127		$2,072
Pool #Q14676, 3.00%, 1/1/43		1,431		1,394
Pool #Q15843, 3.00%, 2/1/43		684		667
Pool #Q18339, 3.00%, 5/1/43		661		644
Pool #Q19697, 3.00%, 6/1/43		1,481		1,443
Pool #Q19909, 3.00%, 7/1/43		1,294		1,260
Pool #Q20550, 3.00%, 8/1/43		1,989		1,938
Pool #Q21320, 3.50%, 8/1/43		1,094		1,111
Pool #V80003, 3.00%, 4/1/43		2,916		2,842
Pool #V80004, 3.00%, 4/1/43		801		781
Pool #V80058, 3.00%, 5/1/43		1,313		1,279
				158,419
Government National Mortgage Association – 1.6%
Pool TBA, 3.00%, 10/13/43 (6)		6,625		6,547
3.00%, 10/13/43 (6)		3,000		2,957
3.50%, 10/13/43 (6)		10,500		10,831
3.50%, 10/13/43 (6)		4,500		4,626
4.00%, 10/13/43 (6)		814		862
4.50%, 10/13/43 (6)		12,500		13,473
				39,296
Government National Mortgage Association I – 2.2%
Pool #510835, 5.50%, 2/15/35		91		101
Pool #597889, 5.50%, 6/15/33		449		498
Pool #614169, 5.00%, 7/15/33		146		160
Pool #616879, 3.50%, 2/15/42		1,086		1,120
Pool #617739, 6.00%, 10/15/37		56		62

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Government National Mortgage Association I – 2.2% – continued
Pool #634431, 6.00%, 9/15/34		$44		$50
Pool #641416, 5.50%, 4/15/35		269		296
Pool #646341, 6.00%, 11/15/36		87		97
Pool #648538, 5.00%, 12/15/35		270		293
Pool #651753, 5.50%, 3/15/36		54		59
Pool #658560, 6.50%, 8/15/36		348		408
Pool #661917, 7.00%, 4/15/37		40		46
Pool #670114, 6.50%, 7/15/37		59		66
Pool #675211, 6.50%, 3/15/38		121		136
Pool #675484, 5.50%, 6/15/38		356		389
Pool #676360, 6.50%, 10/15/37		42		47
Pool #682899, 6.00%, 9/15/40		592		655
Pool #687824, 5.50%, 8/15/38		464		507
Pool #687900, 5.00%, 9/15/38		250		272
Pool #687901, 5.00%, 9/15/38		318		346
Pool #688461, 6.00%, 5/15/38		443		489
Pool #692309, 6.00%, 1/15/39		196		216
Pool #697645, 5.50%, 10/15/38		181		198
Pool #698236, 5.00%, 6/15/39		1,106		1,203
Pool #698336, 4.50%, 5/15/39		1,406		1,511
Pool #699277, 6.00%, 9/15/38		173		191
Pool #700918, 5.50%, 11/15/38		645		706

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Government National Mortgage Association I – 2.2% – continued
Pool #700972, 5.50%, 11/15/38		$194		$212
Pool #701196, 6.00%, 10/15/38		278		307
Pool #703677, 5.50%, 6/15/39		413		452
Pool #704185, 5.50%, 1/15/39		204		224
Pool #710130, 7.00%, 1/15/39		129		141
Pool #717175, 4.50%, 6/15/39		1,327		1,440
Pool #719262, 5.00%, 8/15/40		495		546
Pool #720202, 4.50%, 7/15/39		848		920
Pool #723231, 4.00%, 10/15/39		603		637
Pool #723339, 5.00%, 9/15/39		513		565
Pool #726085, 4.00%, 11/15/24		471		500
Pool #728629, 4.50%, 1/15/40		1,820		1,975
Pool #733663, 4.50%, 5/15/40		3,426		3,694
Pool #737286, 4.50%, 5/15/40		1,358		1,473
Pool #737416, 3.50%, 9/15/25		374		395
Pool #738134, 3.50%, 4/15/26		616		650
Pool #738247, 4.50%, 4/15/41		800		864
Pool #745215, 4.00%, 7/15/25		378		402
Pool #747643, 4.50%, 8/15/40		3,226		3,464
Pool #760874, 3.50%, 2/15/26		476		505
Pool #768800, 4.50%, 6/15/41		413		447
Pool #773939, 4.00%, 11/15/41		1,427		1,520

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Government National Mortgage Association I – 2.2% – continued
Pool #778957, 3.50%, 3/15/42		$1,342		$1,384
Pool #781939, 6.00%, 7/15/34		630		702
Pool #782131, 5.50%, 12/15/36		195		215
Pool #782150, 5.50%, 4/15/37		215		237
Pool #782259, 5.00%, 2/15/36		335		366
Pool #782272, 5.50%, 2/15/38		418		459
Pool #782498, 6.00%, 12/15/38		236		260
Pool #782565, 5.00%, 2/15/39		4,349		4,757
Pool #782584, 5.00%, 3/15/39		407		443
Pool #782675, 4.50%, 6/15/24		314		335
Pool #782696, 5.00%, 6/15/39		1,004		1,106
Pool #782831, 6.00%, 12/15/39		154		170
Pool #783176, 4.00%, 11/15/40		1,780		1,893
Pool #783467, 4.00%, 10/15/41		6,159		6,540
Pool #AA6089, 3.00%, 2/15/43		794		784
Pool #AB2891, 3.00%, 9/15/42		592		585
Pool #AD8781, 3.00%, 3/15/43		691		683
Pool #AD9016, 3.00%, 4/15/43		987		974
				53,348
Government National Mortgage Association II – 3.9%
Pool #3570, 6.00%, 6/20/34		135		153
Pool #3665, 5.50%, 1/20/35		402		446
Pool #3852, 6.00%, 5/20/36		76		83

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Government National Mortgage Association II – 3.9% – continued
Pool #3879, 6.00%, 7/20/36		$251		$277
Pool #3910, 6.00%, 10/20/36		130		144
Pool #3994, 5.00%, 6/20/37		88		96
Pool #4018, 6.50%, 8/20/37		284		317
Pool #4026, 5.00%, 9/20/37		147		160
Pool #4027, 5.50%, 9/20/37		74		82
Pool #4040, 6.50%, 10/20/37		61		68
Pool #4098, 5.50%, 3/20/38		410		450
Pool #4116, 6.50%, 4/20/38		133		148
Pool #4170, 6.00%, 6/20/38		322		357
Pool #4194, 5.50%, 7/20/38		819		901
Pool #4243, 5.00%, 9/20/38		226		246
Pool #4244, 5.50%, 9/20/38		220		242
Pool #4245, 6.00%, 9/20/38		134		148
Pool #4269, 6.50%, 10/20/38		155		173
Pool #4290, 5.50%, 11/20/38		159		175
Pool #4344, 6.00%, 1/20/39		265		291
Pool #4345, 6.50%, 1/20/39		173		194
Pool #4425, 5.50%, 4/20/39		415		458
Pool #4559, 5.00%, 10/20/39		1,010		1,106
Pool #4561, 6.00%, 10/20/39		515		568
Pool #4617, 4.50%, 1/20/40		271		295

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Government National Mortgage Association II – 3.9% – continued
Pool #4619, 5.50%, 1/20/40		$943		$1,043
Pool #4713, 4.50%, 6/20/40		836		904
Pool #4747, 5.00%, 7/20/40		742		814
Pool #4881, 3.50%, 12/20/40		2,428		2,513
Pool #4882, 4.00%, 12/20/40		5,961		6,337
Pool #4923, 4.50%, 1/20/41		607		657
Pool #5050, 4.00%, 5/20/26		591		628
Pool #5081, 4.00%, 6/20/41		1,102		1,172
Pool #5082, 4.50%, 6/20/41		1,134		1,224
Pool #5083, 5.00%, 6/20/41		4,661		5,102
Pool #5114, 4.00%, 7/20/41		4,290		4,564
Pool #5141, 5.00%, 8/20/41		667		731
Pool #5175, 4.50%, 9/20/41		586		633
Pool #5176, 5.00%, 9/20/41		3,236		3,523
Pool #5202, 3.50%, 10/20/41		1,410		1,456
Pool #5203, 4.00%, 10/20/41		975		1,036
Pool #5232, 3.50%, 11/20/41		785		811
Pool #5264, 5.50%, 12/20/41		89		98
Pool #5280, 4.00%, 1/20/42		1,065		1,130
Pool #5304, 3.50%, 2/20/42		972		1,004
Pool #5317, 5.50%, 2/20/42		608		668
Pool #5326, 3.00%, 3/20/27		1,460		1,515

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Government National Mortgage Association II – 3.9% – continued
Pool #5331, 3.50%, 3/20/42		$1,580		$1,632
Pool #654804, 6.00%, 5/20/36		196		216
Pool #737602, 4.00%, 11/20/40		803		853
Pool #752757, 4.50%, 11/20/40		1,221		1,338
Pool #755677, 4.00%, 12/20/40		765		811
Pool #782433, 6.00%, 10/20/38		484		533
Pool #82579, 3.50%, 7/20/40		560		589
Pool #82737, 3.00%, 2/20/41		644		670
Pool #82793, 2.50%, 4/20/41		624		650
Pool #82857, 3.00%, 6/20/41		320		334
Pool #82960, 3.50%, 10/20/41		293		307
Pool #AA5970, 3.00%, 1/20/43		2,537		2,511
Pool #AA6054, 3.00%, 2/20/43		3,540		3,505
Pool #AA6149, 3.00%, 3/20/43		2,468		2,443
Pool #AB9443, 3.50%, 11/20/42		1,841		1,903
Pool #AD1755, 3.50%, 2/20/43		1,555		1,608
Pool #MA0022, 3.50%, 4/20/42		1,607		1,660
Pool #MA0088, 3.50%, 5/20/42		3,557		3,675
Pool #MA0220, 3.50%, 7/20/42 (6)		1,801		1,846
Pool #MA0318, 3.50%, 8/20/42		3,249		3,356
Pool #MA0321, 5.00%, 8/20/42		1,396		1,532
Pool #MA0391, 3.00%, 9/20/42		5,945		5,885

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 34.3% (7) – continued
Government National Mortgage Association II – 3.9% – continued
Pool #MA0392, 3.50%, 9/20/42		$1,353		$1,398
Pool #MA0933, 3.00%, 4/20/43		2,454		2,430
Pool #MA0934, 3.50%, 4/20/43		983		1,016
Pool #MA1011, 3.00%, 5/20/43		2,368		2,344
Pool #MA1064, 2.50%, 6/20/28		1,472		1,485
Pool #MA1089, 3.00%, 6/20/43		2,480		2,455
Pool #MA1242, 2.00%, 8/20/43		698		708
				94,834
Tennessee Valley Authority – 0.1%
5.50%, 7/18/17		600		693
5.25%, 9/15/39		1,650		1,798
				2,491
Total U.S. Government Agencies
(Cost $824,053)				835,042
U.S. GOVERNMENT OBLIGATIONS – 34.9%
U.S. Treasury Bonds – 6.2%
8.75%, 8/15/20		450		650
7.88%, 2/15/21		1,550		2,174
8.00%, 11/15/21		1,125		1,610
7.13%, 2/15/23		2,000		2,784
6.25%, 8/15/23		11,550		15,286
7.63%, 2/15/25		165		244
6.00%, 2/15/26		11,750		15,539
6.13%, 11/15/27		9,000		12,149
6.25%, 5/15/30		6,000		8,331
5.38%, 2/15/31		4,000		5,101
4.50%, 2/15/36		475		549
4.75%, 2/15/37		6,335		7,570
5.00%, 5/15/37		4,575		5,653
4.38%, 2/15/38		6,890		7,802
4.50%, 5/15/38		1,700		1,961
3.50%, 2/15/39		6,000		5,886
4.25%, 5/15/39		9,250		10,273
4.50%, 8/15/39		8,000		9,236
4.38%, 11/15/39		7,000		7,925

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 34.9% – continued
U.S. Treasury Bonds – 6.2% – continued
4.63%, 2/15/40		$7,250		$8,527
4.38%, 5/15/40		1,000		1,131
3.88%, 8/15/40		9,000		9,378
3.75%, 8/15/41		4,000		4,066
3.13%, 2/15/42		2,000		1,801
2.75%, 8/15/42		5,000		4,144
3.13%, 2/15/43		1,000		896
				150,666
U.S. Treasury Notes – 28.7%
2.38%, 8/31/14		2,500		2,551
2.38%, 9/30/14		17,000		17,381
2.38%, 10/31/14		30,000		30,721
2.13%, 11/30/14		5,000		5,114
0.13%, 12/31/14		10,000		9,995
2.63%, 12/31/14		25,000		25,765
2.25%, 1/31/15		8,000		8,219
4.00%, 2/15/15		12,000		12,623
2.50%, 3/31/15		39,000		40,325
0.25%, 7/15/15		10,000		9,993
1.75%, 7/31/15		10,000		10,264
0.38%, 11/15/15		50,000		50,004
4.50%, 11/15/15		2,000		2,175
0.25%, 12/15/15		25,000		24,928
2.13%, 12/31/15		5,000		5,194
2.13%, 2/29/16		5,000		5,203
0.38%, 3/15/16		25,000		24,953
5.13%, 5/15/16		3,000		3,362
3.25%, 6/30/16		10,000		10,734
0.63%, 7/15/16		10,000		10,013
1.50%, 7/31/16		5,000		5,127
1.00%, 8/31/16		10,000		10,106
1.00%, 9/30/16		25,000		25,258
1.00%, 10/31/16		5,000		5,047
4.63%, 11/15/16		2,600		2,914
0.88%, 11/30/16		30,000		30,134
0.88%, 1/31/17		20,000		20,048
4.63%, 2/15/17		500		563
1.00%, 3/31/17		12,000		12,055
3.13%, 4/30/17		7,000		7,553
4.50%, 5/15/17		1,850		2,087
0.63%, 5/31/17		15,000		14,831
4.75%, 8/15/17		2,400		2,744
0.63%, 8/31/17		5,000		4,922
0.63%, 9/30/17		7,000		6,880

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 34.9% – continued
U.S. Treasury Notes – 28.7% – continued
4.25%, 11/15/17		$2,950		$3,326
0.75%, 12/31/17		10,000		9,830
0.88%, 1/31/18		10,000		9,869
3.50%, 2/15/18		6,250		6,866
0.75%, 2/28/18		5,000		4,903
3.88%, 5/15/18		3,300		3,690
1.38%, 7/31/18		10,000		10,018
4.00%, 8/15/18		10,290		11,604
1.50%, 8/31/18		11,500		11,576
3.75%, 11/15/18		2,300		2,566
2.75%, 2/15/19		18,000		19,153
1.38%, 2/28/19		4,000		3,969
0.88%, 7/31/19		2,000		1,909
3.63%, 8/15/19		18,000		19,980
3.38%, 11/15/19		16,000		17,550
3.63%, 2/15/20		5,000		5,555
1.13%, 4/30/20		4,000		3,803
3.50%, 5/15/20		5,000		5,514
1.38%, 5/31/20		15,000		14,474
2.63%, 8/15/20		3,000		3,131
2.63%, 11/15/20		3,000		3,120
3.63%, 2/15/21		12,000		13,278
2.13%, 8/15/21		36,000		35,708
1.63%, 8/15/22		19,000		17,700
				698,878
Total U.S. Government Obligations
(Cost $829,094)				849,544
MUNICIPAL BONDS – 0.9%
Arizona – 0.0%
Phoenix Taxable G.O. Unlimited Bonds, Series A, Build America Bonds, 5.27%, 7/1/34		100		104
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Build America Bonds, 4.84%, 1/1/41		110		115
				219
California – 0.3%
Bay Area Toll Authority Bridge Revenue Bonds, Series F-2, Build America Bonds, 6.26%, 4/1/49		425		512
Bay Area Toll Authority Bridge Revenue Bonds, Series S1, Build America Bonds, 7.04%, 4/1/50		150		183

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 0.9% – continued
California – 0.3% – continued
Bay Area Toll Authority Bridge TRB, Series S3, Build America Bonds, 6.91%, 10/1/50		$150		$184
California State G.O. Unlimited Bonds, Build America Bonds, 7.70%, 11/1/30		135		158
7.60%, 11/1/40		400		523
California State Public Works Board Lease Revenue Bonds, Series G-2, Build America Bonds, 8.36%, 10/1/34		50		61
California State Taxable G.O. Unlimited Bonds, Build America Bonds, 7.63%, 3/1/40		405		530
California State Taxable Pension G.O. Unlimited Refunding Bonds, Series A, Build America Bonds, 7.30%, 10/1/39		920		1,160
California State Various Purpose Taxable G.O. Unlimited Bonds, 6.20%, 3/1/19		200		233
California State Various Purpose Taxable G.O. Unlimited Bonds, Build America Bonds, 7.55%, 4/1/39		585		759
East Bay Municipal Utility District Water System Revenue Bonds, Build America Bonds, 5.87%, 6/1/40		300		344
Los Angeles Community College District G.O. Unlimited Bonds, Build America Bonds, 6.75%, 8/1/49		150		186
Los Angeles Department of Airports Direct Pay TRB, Build America Bonds, 6.58%, 5/15/39		250		296
Los Angeles Unified School District G.O. Unlimited Bonds, Build America Bonds, 6.76%, 7/1/34		290		354
Los Angeles Unified School District Taxable G.O. Unlimited Bonds, Series KR, Build America Bonds, 5.75%, 7/1/34		335		370
Metropolitan Water District of Southern California TRB, Issuer Subseries A, Build America Bonds, 6.95%, 7/1/40		100		112

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 65 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 0.9% – continued
California – 0.3% – continued
San Diego County Water Authority Financing Agency Revenue Bonds, Series B, Build America Bonds, 6.14%, 5/1/49		$100		$115
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Build America Bonds, 6.95%, 11/1/50		75		92
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series B, Build America Bonds, 6.00%, 11/1/40		300		335
University of California Revenue Bonds, Build America Bonds, 5.95%, 5/15/45		150		166
University of California Revenue Bonds, Build America Bonds, Regents University, 6.27%, 5/15/31		200		218
				6,891
Colorado – 0.0%
Denver City & County G.O. Unlimited Bonds, Build America Bonds, 5.65%, 8/1/30		250		288
Denver City & County School District No. 1 Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (State Aid Withholding), 5.66%, 12/1/33		50		53
				341
Connecticut – 0.0%
Connecticut State G.O. Unlimited Bonds, Build America Bonds, 5.63%, 12/1/29		165		181
Connecticut State G.O. Unlimited Bonds, Series A, 5.85%, 3/15/32		300		334
				515
District of Columbia – 0.0%
District of Columbia Income Tax Secured Revenue Bonds, Series E, Build America Bonds, 5.59%, 12/1/34		30		34
Florida – 0.0%
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 2.11%, 7/1/18		500		488

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 0.9% – continued
Georgia – 0.0%
Municipal Electric Authority of Georgia Plant Vogtle Units TRB, Build America Bonds, 6.64%, 4/1/57		$70		$72
6.66%, 4/1/57		100		102
7.06%, 4/1/57		300		301
				475
Illinois – 0.1%
Chicago Board of Education G.O. Unlimited Bonds, Qualified School Construction Bonds, 6.32%, 11/1/29		160		164
Chicago Taxable G.O. Unlimited Bonds, Project C1, 7.78%, 1/1/35		100		109
Chicago Transit Authority Sales & Transfer Tax Receipts Pension Funding TRB, Series A, 6.90%, 12/1/40		300		337
Chicago Transit Authority Sales Tax Receipts Revenue Bonds, Series B, Build America Bonds, 6.20%, 12/1/40		140		147
Illinois State Taxable G.O. Unlimited Bonds, Build America Bonds, 6.63%, 2/1/35		750		745
Illinois State Taxable G.O. Unlimited Bonds, 4.42%, 1/1/15		100		103
5.67%, 3/1/18		300		327
Illinois State Taxable Pension G.O. Unlimited Bonds, 5.10%, 6/1/33		705		623
				2,555
Massachusetts – 0.0%
Massachusetts State G.O. Limited Bonds, Series D, Build America Bonds, 4.50%, 8/1/31		250		245
Massachusetts State School Building Authority Sales TRB, Build America Bonds, 5.72%, 8/15/39		100		113
				358
Mississippi – 0.0%
Mississippi State Taxable G.O. Unlimited Bonds, Series F, Build America Bonds, 5.25%, 11/1/34		100		105

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 66 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (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		$383
Clark County Airport System TRB, Series C, Build America Bonds, 6.82%, 7/1/45		200		245
				628
New Jersey – 0.1%
New Jersey State EDA Lease Revenue Bonds, Series A (NATL-RE Insured), 7.43%, 2/15/29		100		123
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, Build America Bonds, 6.56%, 12/15/40		200		232
New Jersey State Transportation Trust Fund Authority TRB, Series C, Build America Bonds, 6.10%, 12/15/28		300		323
New Jersey State Turnpike Authority TRB, Series A, Build America Bonds, 7.10%, 1/1/41		425		534
New Jersey State Turnpike Authority TRB, Series F, Build America Bonds, 7.41%, 1/1/40		125		163
Rutgers State University TRB, Series H, Build America Bonds (G.O. of University Insured), 5.67%, 5/1/40		145		156
				1,531
New York – 0.1%
Metropolitan Transportation Authority Dedicated Fund TRB, Build America Bonds, 7.34%, 11/15/39		75		99
Metropolitan Transportation Authority TRB, Build America Bonds, 6.69%, 11/15/40		100		118
Metropolitan Transportation Authority TRB, Series E, Build America Bonds, 6.81%, 11/15/40		60		72
New York City G.O. Unlimited Bonds, Build America Bonds, 5.52%, 10/1/37		100		106
New York City G.O. Unlimited Bonds, Series H-1, Build America Bonds, 5.85%, 6/1/40		85		97

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 0.9% – continued
New York – 0.1% – continued
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Build America Bonds, 5.75%, 6/15/41		$200		$225
5.72%, 6/15/42		250		280
New York City Taxable G.O. Unlimited Bonds, Series F-1, Build America Bonds, 6.65%, 12/1/31		225		259
New York City Transitional Finance Authority TRB, Build America Bonds, Future Tax Secured, 5.77%, 8/1/36		300		340
New York State Dormitory Authority Personal Income TRB, Build America Bonds, 5.60%, 3/15/40		250		271
New York State Dormitory Authority Personal Income TRB, Series F, Build America Bonds, 5.63%, 3/15/39		75		81
New York State Urban Development Corp. TRB, Build America Bonds, 5.77%, 3/15/39		100		109
Port Authority of New York & New Jersey Consolidated 160th TRB (G.O. of Authority Insured), 5.65%, 11/1/40		200		217
Port Authority of New York & New Jersey Consolidated 164th TRB (G.O. of Authority Insured), 5.65%, 11/1/40		350		381
Port Authority of New York & New Jersey Consolidated 168th Revenue Bonds (G.O. of Authority Insured), 4.93%, 10/1/51		250		239
				2,894
Ohio – 0.1%
American Municipal Power-Ohio, Inc. Revenue Bonds, Issuer Subseries B, Build America Bonds, 6.45%, 2/15/44		200		214
American Municipal Power-Ohio, Inc. TRB, Series B, Combined Hydroelectric Projects, 8.08%, 2/15/50		300		389
North East Regional Sewer District Improvement TRB, Build America Bonds, 6.04%, 11/15/40		145		155

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 67 FIXED INCOME INDEX 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 A, 4.80%, 6/1/11(1)		$200		$174
Ohio State University TRB, Series C, Build America Bonds, 4.91%, 6/1/40		190		193
Ohio State Water Quality Development Authority Pollution Control TRB, Series B-2, Loan Fund, 4.88%, 12/1/34		90		91
				1,216
Oregon – 0.0%
Oregon State Department of Transportation Highway User TRB, Series A, Sub Lien, Build America Bonds, 5.83%, 11/15/34		200		232
Pennsylvania – 0.0%
State Public School Building Authority TRB, Series A, Qualified School Construction Bonds, 5.00%, 9/15/27		200		206
Puerto Rico – 0.0%
Puerto Rico Commonwealth Government Development Bank TRB, Series B, Senior Notes, 3.67%, 5/1/14		150		148
4.70%, 5/1/16		100		83
				231
Tennessee – 0.0%
Metropolitan Government of Nashville & Davidson County Convention Center Authority Subordinate TRB, Series B, Build America Bonds, 6.73%, 7/1/43		100		111
Texas – 0.1%
Dallas Area Rapid Transit Sales TRB, Build America Bonds, 5.02%, 12/1/48		180		185
Dallas Independent School District Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (PSF Gtd.), 6.45%, 2/15/35		200		225
Houston Taxable G.O. Limited Refunding Bonds, Series A, Pension Obligation, 6.29%, 3/1/32		300		340

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 0.9% – continued
Texas – 0.1% – continued
North Texas Tollway Authority TRB, Series B, Build America Bonds, 6.72%, 1/1/49		$125		$151
San Antonio Electric & Gas Revenue Bonds, Build America Bonds, 5.99%, 2/1/39		200		235
Texas State Transportation Commission Taxable G.O. Unlimited Bonds, Build America Bonds, 5.52%, 4/1/39		200		226
Texas State Transportation Commission TRB, Series B, First Tier, 5.18%, 4/1/30		300		330
University of Texas Revenue Bonds, Series C, Build America Bonds, 4.79%, 8/15/46		100		101
University of Texas Revenue Bonds, Series D, Build America Bonds, 5.13%, 8/15/42		190		201
				1,994
Utah – 0.0%
Utah State G.O. Unlimited Bonds, Series B, Build America Bonds, 3.54%, 7/1/25		95		95
Washington – 0.0%
Central Puget Sound Regional Transportation Authority Sales & Use TRB, Build America Bonds, 5.49%, 11/1/39		80		87
Washington State Convention Center Public Facilities District Revenue Bonds, Build America Bonds, 6.79%, 7/1/40		100		108
Washington State G.O. Unlimited Bonds, Series F, Build America Bonds, 5.14%, 8/1/40		100		105
				300
Total Municipal Bonds
(Cost $19,688)				21,419

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 68 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
OTHER – 0.0% (8)
Escrow Lehman Brothers Holdings Capital Trust VII (9)		50,000		$–
Total Other
(Cost $39)				–
INVESTMENT COMPANIES – 4.3%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (10)(11)		104,723,860		$104,724
Total Investment Companies
(Cost $104,724)				104,724
Total Investments – 104.0%
(Cost $2,472,154)				2,530,685
Liabilities less Other Assets – (4.0)%				(97,157	)
NET ASSETS – 100.0%				$2,433,528

(1) Century bond maturing in 2111.

(2) Century bond maturing in 2112.

(3) 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.

(4) Restricted security that has been deemed illiquid. At September 30, 2013, the value of these restricted illiquid securities amounted to approximately $3,104,000 or 0.1% of net assets. Additional information on the restricted illiquid securities is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
CareFusion Corp., 3.30%, 3/1/23	3/6/13		$130
Eaton Corp., 1.50%, 11/2/17	11/14/12		215
Eaton Corp., 2.75%, 11/2/22	12/28/12-1/7/13		997
Freeport-McMoRan Copper & Gold, Inc., 2.38%, 3/15/18	2/28/13		245
Freeport-McMoRan Copper & Gold, Inc., 5.45%, 3/15/43	2/28/13		144
Nabors Industries, Inc., 2.35%, 9/15/16	9/4/13		35
Union Pacific Corp., 3.65%, 2/15/24	3/14/07-7/20/10		729

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Zoetis, Inc., 1.88%, 2/1/18	1/16/13		$40
Zoetis, Inc., 3.25%, 2/1/23	1/29/13		499
Zoetis, Inc., 4.70%, 2/1/43	1/16/13		40

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

(6) When-Issued Security.

(7) 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.

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

(9) Issuer has defaulted on terms of debt obligation.

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

(11) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $187,561,000 with net sales of approximately $82,837,000 during the six months ended September 30, 2013.

Percentages shown are based on Net Assets.

At September 30, 2013, the credit quality distribution for the Bond Index Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION *	% OF INVESTMENTS
U.S. Agency		25.5%
U.S. Treasury		40.8
AAA		3.9
AA		4.4
A		10.8
BBB		9.9
Cash Equivalents		4.7
Total		100.0%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 69 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

* 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 – 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. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Asset-Backed Securities		$–		$53,518	(1)		$–		$53,518
Corporate Bonds		–		455,378	(1)		–		455,378
Foreign Issuer Bonds		–		211,060	(1)		–		211,060
U.S. Government Agencies		–		835,042	(1)		–		835,042
U.S. Government Obligations		–		849,544	(1)		–		849,544
Municipal Bonds		–		21,419	(1)		–		21,419
Investment Companies		104,724		–			–		104,724
Total Investments		$104,724		$2,425,961			$–		$2,530,685

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 70 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

U.S.TREASURY INDEX FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 97.9%
U.S. Treasury Bonds – 11.0%
6.88%, 8/15/25		$200		$282
6.00%, 2/15/26		275		364
6.50%, 11/15/26		75		104
6.38%, 8/15/27		115		158
6.13%, 11/15/27		275		371
5.50%, 8/15/28		150		192
5.25%, 11/15/28		175		219
5.25%, 2/15/29		225		281
6.25%, 5/15/30		225		312
5.38%, 2/15/31		300		383
4.50%, 2/15/36		275		318
4.75%, 2/15/37		175		209
5.00%, 5/15/37		100		124
4.38%, 2/15/38		150		170
4.50%, 5/15/38		255		294
3.50%, 2/15/39		350		343
4.25%, 5/15/39		300		333
4.50%, 8/15/39		325		375
4.38%, 11/15/39		450		509
4.63%, 2/15/40		350		412
4.38%, 5/15/40		615		696
3.88%, 8/15/40		400		417
4.25%, 11/15/40		325		360
4.75%, 2/15/41		425		509
4.38%, 5/15/41		450		509
3.75%, 8/15/41		500		508
3.13%, 11/15/41		700		631
3.13%, 2/15/42		700		630
3.00%, 5/15/42		485		425
2.75%, 8/15/42		850		705
2.75%, 11/15/42		775		641
3.13%, 2/15/43		830		744
2.88%, 5/15/43		875		743
3.63%, 8/15/43		600		593
				13,864
U.S. Treasury Notes – 86.9%
0.50%, 10/15/14		1,950		1,957
0.38%, 11/15/14		2,400		2,406
0.25%, 11/30/14		2,500		2,503
0.13%, 12/31/14		2,550		2,549
0.25%, 1/31/15		1,250		1,251
4.00%, 2/15/15		1,650		1,736
0.25%, 2/28/15		750		750

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 97.9% – continued
U.S. Treasury Notes – 86.9% – continued
2.38%, 2/28/15		$1,100		$1,134
0.38%, 3/15/15		250		251
0.25%, 3/31/15		600		600
2.50%, 3/31/15		750		775
0.13%, 4/30/15		750		749
0.25%, 5/15/15		1,700		1,700
0.25%, 5/31/15		1,350		1,350
2.13%, 5/31/15		1,250		1,289
0.38%, 6/30/15		1,000		1,002
1.88%, 6/30/15		750		771
0.25%, 7/15/15		750		749
0.25%, 7/31/15		1,000		999
1.75%, 7/31/15		550		565
0.25%, 8/15/15		750		749
4.25%, 8/15/15		1,000		1,074
0.38%, 8/31/15		1,000		1,001
1.25%, 8/31/15		1,000		1,018
0.25%, 9/30/15		1,000		998
1.25%, 9/30/15		2,075		2,113
0.38%, 11/15/15		150		150
1.38%, 11/30/15		2,000		2,043
0.25%, 12/15/15		500		499
0.38%, 1/15/16		1,800		1,799
2.00%, 1/31/16		1,450		1,503
0.38%, 2/15/16		750		749
2.13%, 2/29/16		500		520
0.38%, 3/15/16		1,000		998
2.25%, 3/31/16		950		992
0.25%, 4/15/16		700		696
0.25%, 5/15/16		1,700		1,689
1.75%, 5/31/16		1,150		1,187
0.50%, 6/15/16		500		499
3.25%, 6/30/16		1,250		1,342
0.63%, 7/15/16		1,000		1,001
1.50%, 7/31/16		650		666
0.63%, 8/15/16		1,000		1,001
4.88%, 8/15/16		900		1,009
1.00%, 8/31/16		250		253
3.00%, 8/31/16		300		321
0.88%, 9/15/16		500		504
1.00%, 9/30/16		825		833
3.00%, 9/30/16		700		749
1.00%, 10/31/16		250		252
3.13%, 10/31/16		1,200		1,289

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 71 FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

U.S. TREASURY INDEX FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 97.9% – continued
U.S. Treasury Notes – 86.9% – continued
0.88%, 11/30/16		$600		$603
2.75%, 11/30/16		900		957
0.88%, 12/31/16		600		602
0.88%, 1/31/17		250		251
3.13%, 1/31/17		1,300		1,400
4.63%, 2/15/17		500		563
3.00%, 2/28/17		1,250		1,342
1.00%, 3/31/17		1,300		1,306
0.88%, 4/30/17		500		500
0.63%, 5/31/17		1,250		1,236
2.75%, 5/31/17		450		480
2.50%, 6/30/17		950		1,004
2.38%, 7/31/17		1,600		1,682
0.63%, 8/31/17		150		148
0.63%, 9/30/17		350		344
0.75%, 10/31/17		500		493
0.63%, 11/30/17		1,150		1,127
0.88%, 1/31/18		1,250		1,234
3.50%, 2/15/18		650		714
0.75%, 2/28/18		500		490
0.75%, 3/31/18		500		489
2.88%, 3/31/18		750		804
0.63%, 4/30/18		250		243
2.63%, 4/30/18		650		690
3.88%, 5/15/18		200		224
1.00%, 5/31/18		1,000		987
1.38%, 6/30/18		1,000		1,003
1.38%, 7/31/18		1,000		1,002
4.00%, 8/15/18		500		564
1.50%, 8/31/18		1,500		1,510
1.38%, 9/30/18		1,500		1,499
3.75%, 11/15/18		300		335
1.38%, 11/30/18		500		498
2.75%, 2/15/19		1,800		1,915
3.13%, 5/15/19		750		813
1.13%, 5/31/19		900		875
3.63%, 8/15/19		1,000		1,110
1.00%, 8/31/19		475		456
1.00%, 9/30/19		750		718
1.25%, 10/31/19		750		728
3.38%, 11/15/19		650		713
1.13%, 12/31/19		950		911
1.38%, 1/31/20		650		632
3.63%, 2/15/20		1,000		1,111

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 97.9% – continued
U.S. Treasury Notes – 86.9% – continued
1.25%, 2/29/20		$600		$577
1.13%, 3/31/20		500		476
1.13%, 4/30/20		500		475
3.50%, 5/15/20		750		827
1.38%, 5/31/20		950		917
1.88%, 6/30/20		750		747
2.00%, 7/31/20		1,000		1,002
2.13%, 8/31/20		1,250		1,261
2.00%, 9/30/20		400		400
2.63%, 11/15/20		1,325		1,378
3.63%, 2/15/21		500		553
3.13%, 5/15/21		725		775
2.13%, 8/15/21		1,000		992
2.00%, 11/15/21		750		733
2.00%, 2/15/22		675		656
1.75%, 5/15/22		900		852
1.63%, 8/15/22		900		838
1.63%, 11/15/22		1,250		1,157
2.00%, 2/15/23		1,525		1,452
1.75%, 5/15/23		1,525		1,413
2.50%, 8/15/23		1,000		990
				109,360
Total U.S. Government Obligations
(Cost $123,122)				123,224
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 3.7%
Northern Institutional Funds - U.S. Government Portfolio, 0.01% (1)(2)		4,709,582		$4,710
Total Investment Companies
(Cost $4,710)				4,710

See Notes to the Financial Statements.

FIXED INCOME INDEX FUNDS 72 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.4%
U.S. Treasury Bill, 0.08%, 10/17/13 (3)		$500		$500
Total Short-Term Investments
(Cost $500)				500
Total Investments – 102.0%
(Cost $128,332)				128,434
Liabilities less Other Assets – (2.0)%				(2,554	)
NET ASSETS – 100.0%				$125,880

(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, 2013, the value of the Fund’s investment in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $367,000 with net purchases of approximately $4,343,000 during the six months ended September 30, 2013.

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

Percentages shown are based on Net Assets.

At September 30, 2013, the U.S. Treasury Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000s)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000s)
5-Year U.S. Treasury Note		36		$4,358		Long		12/13		$54

At September 30, 2013, the credit quality distribution for the U.S. Treasury Index Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION *	% OF INVESTMENTS
U.S. Treasury		96.3%
Cash Equivalents		3.7
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 – 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
U.S. Government Obligations		$–		$123,224	(1)		$–		$123,224
Investment Companies		4,710		–			–		4,710
Short-Term Investments		–		500			–		500
Total Investments		$4,710		$123,724			$–		$128,434
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$54		$–			$–		$54

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

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ABBREVIATIONS AND OTHER INFORMATION SEPTEMBER 30, 2013 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS
CMBS	Commercial Mortgage-Backed Securities
EDA	Economic Development Authority
G.O.	General Obligation
NATL-RE	National Public Finance Guarantee Corporation
PSF	Permanent School Fund
TRB	Tax Revenue Bonds

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

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 INDEX FUNDS 74 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (UNAUDITED)

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Bond Index and U.S. Treasury Index Funds (each a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, both of which are diversified portfolios of the Trust. Each of the Funds is presented herein.

Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

Prior to November 17, 2012, the U.S. Treasury Index Fund operated as the U.S. Treasury Index Portfolio (the “Predecessor Fund”), an investment portfolio of the Northern Institutional Funds. The Predecessor Fund was authorized to issue three classes of shares: Class A, Class C and Class D. Each class was distinguished by the level of administrative, liaison and transfer agent services provided. Effective October 13, 2011, the Class C Share and Class D Share classes of the Predecessor Fund were closed to investment by new accounts. At the close of business on November 28, 2011, shareholders who held Class C Shares and Class D Shares of the Predecessor Fund had their shares automatically converted to Class A Shares of the same Predecessor Fund on the basis of the relative net asset value per share of the respective share classes as of the close of business on November 28, 2011. On November 16, 2012, the Predecessor Fund was reorganized into the U.S. Treasury Index Fund, pursuant to a Plan of Reorganization approved by the Predecessor Fund’s Board of Trustees on August 9, 2012 (the “Reorganization”). At the time of Reorganization, the Predecessor Fund transferred all of its assets to the U.S. Treasury Index Fund in exchange for shares of the U.S. Treasury Index Fund and the U.S. Treasury Index Fund’s assumption of all the liabilities of the Predecessor Fund. Upon closing of the Reorganization, holders of the Predecessor Fund’s Class A shares received shares of the U.S. Treasury Index Fund. The Reorganization was tax-free.

Prior to the Reorganization, the U.S. Treasury Index Fund had no net assets or operations and therefore, activity shown in the Statements of Operations, Statements of Changes in Net Assets and Financial Highlights prior to the Reorganization represents the operations and changes in net assets of the Predecessor Fund. The cost basis of the investments transferred from the Predecessor Fund was carried forward to the Fund for accounting and tax purposes.

The U.S. Treasury Index Fund’s fiscal year end and tax year end changed from November 30 to March 31.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time on each day the NYSE is open for trading.

A) VALUATION OF SECURITIES AND DERIVATIVE CONTRACTS Securities are valued at their fair value. Equity securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities.

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

Shares of open-end investment companies are valued at their NAV. Short-term investments with a maturity of 60 days or less

NORTHERN FUNDS SEMIANNUAL REPORT 75 FIXED INCOME INDEX FUNDS

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NOTES TO THE FINANCIAL STATEMENTS continued

are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.

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

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 of, the Funds’ Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. The 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.

The NTGI PVC is responsible for making the final determination of the fair value of a security. In making its determination, the NTGI PVC considers factors that it deems appropriate to the determination of the fair value of a 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 transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

For each Level 3 security, if any, 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.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) FUTURES CONTRACTS The Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund will sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund will do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund will purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund will utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. A Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts, in Net realized gains (losses) on futures contracts, and any unrealized gains or losses on open futures contracts in Net change in unrealized appreciation (depreciation) on futures contracts. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

At September 30, 2013, the U.S. Treasury Index Fund had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $500,000. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

C) WHEN-ISSUED/DELAYED DELIVERY SECURITIES The Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to a Fund until settlement takes place. At the time a Fund enters into this type of transaction, it is required to segregate collateral or designate on its books and

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FIXED INCOME INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

records cash or liquid assets having a fair value at least equal to the amount of the commitment. The Funds identify securities as segregated with a value that meets or exceeds the value of the commitments. When-issued securities at September 30, 2013, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.

D) MORTGAGE DOLLAR ROLLS The Funds enter into mortgage “dollar rolls” in which a Fund sells securities for delivery in the future (generally within 30 days) and simultaneously contracts with the same counterparty to repurchase other mortgage securities on a specified future date. During the roll period, a Fund loses the right to receive principal and interest paid on the securities sold. However, a Fund would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase.

For financial reporting and tax purposes, the Funds treat mortgage dollar rolls as two separate transactions; one involving the purchase of a security and a separate transaction involving a sale.

E) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. The Funds’ income may be subject to certain state and local taxes.

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

G) FUND SECURITIES LOANED The Predecessor Fund participated in Northern Trust’s securities lending program and loaned a portion of its investment portfolio to securities lending borrowers (e.g. brokers approved by Northern Trust). Northern Trust received collateral for the Predecessor Fund, generally consisting of cash, government securities and letters of credit from the borrowers on behalf of the participating Predecessor Fund in connection with such loans. Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Predecessor Fund held invested cash collateral in Northern Institutional Funds – Liquid Assets Portfolio, an affiliated money market fund. Non-cash collateral was held in custody for the Predecessor Fund. The Predecessor Fund did not exercise effective control over the non-cash collateral received. The value of the collateral was monitored daily to ensure the value of such collateral met or exceeded the value of the securities loaned. However, in the event of default or bankruptcy by the borrowing party under the securities lending agreements, realization and/or retention of the collateral might have been subject to legal proceedings.

The Predecessor Fund earned income on portfolio securities loaned, and received compensation for lending its securities in the form of income earned on invested cash collateral and fees paid on non-cash collateral. Income earned by the Predecessor Fund from securities lending was based on the amount and type of securities loaned, the length of the borrowing period and other factors. The Predecessor Fund paid fees to Northern Trust for administering the securities lending program. The fees were typically based on a percentage of the revenue generated from the lending activities. Income from securities lending (net of fees) is disclosed as investment income in the Predecessor Fund’s Statement of Operations.

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

	DECLARATION FREQUENCY		PAYMENT FREQUENCY
Bond Index		Daily		Monthly
U.S. Treasury Index		Daily		Monthly

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. The reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications relate to paydowns. These reclassifications have no

NORTHERN FUNDS SEMIANNUAL REPORT 77 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

impact on the net assets or the net asset values per share of the Funds. At March 31, 2013, the following reclassifications were recorded:

Amounts in thousands	UNDISTRIBUTED NET INVESTMENT INCOME		ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS (LOSSES)
Bond Index		$5,933		$(5,933)

I) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

For the period subsequent to October 31, 2012 through the fiscal year ended March 31, 2013, the following Fund incurred net capital losses and/or net currency losses for which the Fund intends to treat as having been incurred in the following fiscal year:

Amounts in thousands
Bond Index	$3,743

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012, and for the Predecessor Fund, for the fiscal year ended November 30, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 or November 30, 2012, as applicable, with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 or November 30, 2012, as applicable, without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

There were no unused capital loss carryforwards in the Funds as of March 31, 2013.

At March 31, 2013, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains (losses) were as follows:

	UNDISTRIBUTED
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAIN (LOSSES)
Bond Index		$1,123		$1,946		$135,727
U.S. Treasury Index		35		954		3,672

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

The tax character of distributions paid during the fiscal year ended March 31, 2013, for the Bond Index Fund was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Bond Index		$  —		$75,771		$12,285

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

The tax character of distributions paid during the fiscal year ended March 31, 2012, for the Bond Index Fund was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Bond Index		$  —		$74,729		$4,483

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

The tax character of distributions paid during the four months ended March 31, 2013 for the U.S. Treasury Index Fund was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
U.S. Treasury Index		$  —		$987		$4,277

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

The tax character of distributions paid during the fiscal year ended November 30, 2012 for the U.S. Treasury Index Fund was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
U.S. Treasury Index		$  —		$2,022		$2,761

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

FIXED INCOME INDEX FUNDS 78 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

The tax character of distributions paid by the Predecessor Fund during the fiscal year ended November 30, 2011 was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Predecessor		$  —		$2,975		$2,357

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

As of March 31, 2013, neither Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2010 through March 31, 2012 or November 30, 2010 through November 30, 2012 as applicable, remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2013.

These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2013.

4. BANK BORROWINGS

The Trust entered into a $150,000,000 senior unsecured revolving credit facility, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one-month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Funds did not have any outstanding borrowings. The Funds did not have any borrowings or incur any interest expense for six months ended September 30, 2013.

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment adviser is entitled to receive an advisory fee, computed daily and payable monthly, at annual rates set forth in the tables below (expressed as a percentage of each Fund’s respective average daily net assets). For the six months ended September 30, 2013, the investment adviser contractually agreed to reimburse a portion of each Fund’s expenses (other than acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; and extraordinary expenses and interest, if any) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by administrator and/or adviser as a reduction to Total Expenses in the Statements of Operations.

The contractual reimbursement arrangement is expected to continue until at least July 31, 2014. The contractual reimbursement arrangement will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by the investment adviser or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangement at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.

NORTHERN FUNDS SEMIANNUAL REPORT 79 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

The advisory fees for the Bond Index and U.S. Treasury Index Funds for the six months ended September 30, 2013 were based on the following annual rates as set forth in the table below. The table below also sets forth the expense limitations for the six months ended September 30, 2013 for the Funds.

	CONTRACTUAL
	ANNUAL ADVISORY FEE		EXPENSE LIMITATION
Bond Index		0.15%		0.15%
U.S. Treasury Index		0.30%		0.15%

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

For compensation as administrator, NTI is entitled to receive an administration fee, accrued daily and payable monthly, at the annual rate of 0.15 percent of each Fund’s average daily net assets. The administration fees are reflected in each Fund’s Statement of Operations.

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.

Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statements of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

6. RELATED PARTY TRANSACTIONS

The Bond Index and U.S. Treasury Index Funds currently invest uninvested cash in the Diversified Assets Portfolio or the U.S. Government Portfolio (the “Portfolios”) of Northern Institutional Funds, respectively, an investment company which is advised by NTI, pursuant to the terms of an exemptive order issued by the Securities and Exchange Commission (“SEC”). Accordingly, each Fund bears indirectly a proportionate share of the Portfolio’s operating expenses. These operating expenses include the advisory, administrative, transfer agency and custody fees that the Portfolios pay to NTI and/or its affiliates. Currently, the aggregate annual rate of advisory, administration, transfer agency and custody fees payable to NTI and/or its affiliates on any assets invested in the Diversified Assets Portfolio, or the U.S. Government Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, the investment adviser will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in an affiliated money market fund. This reimbursement is included in Less expenses reimbursed by administrator and/or adviser as a reduction to Total Expenses in the Statements of Operations. This reimbursement’s impact on each Fund’s net expense and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

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FIXED INCOME INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

7. INVESTMENT TRANSACTIONS

For the six months ended September 30, 2013, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT			OTHER
Bond Index	$	970,710	$	304,982	$	(1,337,837	)	$	(37,983	)
U.S. Treasury Index		44,361		—		(49,328	)		—

The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes, and the timing of income recognition on investments in REITs and PFICs.

At September 30, 2013, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation (depreciation) on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:

Amounts in thousands	UNREALIZED APPRECIATION		UNREALIZED DEPRECIATION			NET APPRECIATION		COST BASIS OF SECURITIES
Bond Index	$	84,629	$	(26,152	)	$	58,477	$	2,472,208
U.S. Treasury Index		1,498		(1,456	)		42		128,392

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013 were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Bond Index		33,750	$	359,474		604	$	6,408		(45,512	)	$	(482,748	)		(11,158	)	$	(116,866	)
U.S. Treasury Index		1,249		27,472		30		646		(1,418	)		(31,130	)		(139	)		(3,012	)

Transactions in capital shares for the fiscal year or period ended March 31, 2013 were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Bond Index		68,727	$	756,141		2,649	$	29,051		(58,196	)	$	(639,217	)		13,180		$	145,975
U.S. Treasury Index		798		17,751		202		4,508		(1,053	)		(23,490	)		(53	)		(1,231	)

Transactions in capital shares/Class A shares for the fiscal year ended November 30, 2012 for the U.S. Treasury Index Fund were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES		NET INCREASE (DECREASE) IN NET ASSETS
U.S. Treasury Index		8,321	$	193,695		183	$	4,224		(8,361	)	$	(194,594	)		143	$	3,325

NORTHERN FUNDS SEMIANNUAL REPORT 81 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

9. DERIVATIVE INSTRUMENTS

None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.

Below are the types of derivatives by primary risk exposure as presented in the Statement of Assets and Liabilities as of September 30, 2013:

Amounts in thousands		ASSETS				LIABILITIES
FUND NAME	DERIVATIVE TYPE	STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			COUNTERPARTY
U.S. Treasury Index	Equity contracts	Net Assets —Unrealized appreciation	$	54	*	Net Assets — Unrealized depreciation	$	—	*	Credit Suisse

* Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2013:

Amounts in thousands		AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
U.S. Treasury Index	Equity contracts	Net realized gains (losses) on futures contracts	$	(136	)

Amounts in thousands		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
U.S. Treasury Index	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts	$	54

Volume of derivative activity for the six months ended September 30, 2013*:

	FUTURES EQUITY CONTRACTS
	NUMBER OF TRADES		AVERAGE NOTIONAL AMOUNT**
U.S. Treasury Index		4		$3,487

* Activity during the period is measured by number of trades during the period and average notional amount for futures equity contracts.

** Amounts in thousands.

10. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

11. NEW ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining whether an entity is an investment company for which fair value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for,

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FIXED INCOME INDEX FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have to the financial statement amounts and footnote disclosures, if any.

12. SUBSEQUENT EVENTS

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that, other than the item noted in Note 4 - Bank Borrowings, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

NORTHERN FUNDS SEMIANNUAL REPORT 83 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

FUND EXPENSES SEPTEMBER 30, 2013 (UNAUDITED)

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013 through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 80), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

BOND INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.15	%	$	1,000.00	$	980.70	$	0.74
Hypothetical**		0.15	%	$	1,000.00	$	1,024.32	$	0.76

U.S. TREASURY INDEX

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.15	%	$	1,000.00	$	981.30	$	0.75
Hypothetical**		0.15	%	$	1,000.00	$	1,024.32	$	0.76

* Expenses are calculated using the Funds' annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds' actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

FIXED INCOME INDEX FUNDS 84 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME INDEX FUNDS

APPROVAL OF ADVISORY AGREEMENT SEPTEMBER 30, 2013 (UNAUDITED)

The Board of Trustees oversees the management of Northern Funds (the “Trust”), and reviews the investment performance and expenses of the investment funds covered by this Report (the “Funds”) at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Funds with Northern Trust Investments, Inc. (“Northern”).

The Advisory Agreement was re-approved with respect to all of the Funds by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Trust’s Governance Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Funds. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Funds in comparison to other mutual funds and benchmark indices; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Funds; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Funds; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Funds’ investment performance over different time periods in comparison to the investment performance of mutual fund peer groups and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administrative) fees and the total expenses (after reimbursements) borne by the Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the investment advisory fees charged to the Funds compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (v) Northern’s staffing for the Funds and the experience of the portfolio managers and other personnel; (vi) Northern’s financial resources and its ability to attract and retain portfolio management talent; (vii) Northern’s investments in technology to benefit the Funds; (viii) the fees paid by the Funds to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (ix) the benefits received by Northern and its affiliates from their relationships with the Funds. In evaluating the Advisory Agreement for each of the Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. In this regard, they considered both the investment advisory services, and the other non-advisory services that are provided to the Funds by Northern and its affiliates. These services include acting as the Funds’ custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications with and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Funds. They noted Northern’s enhancements to the pricing and fund accounting systems made during the year and other investments in technology, including the trade order management system used to process certain trades. The Trustees also considered the strength of Northern’s and its affiliates’ risk management processes, Northern’s compliance oversight program with respect to all of the Funds’ service providers and the continued active involvement of internal audit in reviewing operations related to the Funds. In addition, they noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Funds. The Trustees concluded that Northern was able to commit, and had committed, substantial financial and other resources to the operations of the Funds and was able to provide quality services to the Funds.

Performance

The Trustees considered the investment performance of the Funds. They first considered whether the Funds had operated within their respective investment objectives, as well as their compliance with their investment restrictions. For Funds that had been in existence for the applicable periods, the Trustees received information on the Funds’ investment performance for

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FIXED INCOME INDEX FUNDS

APPROVAL OF ADVISORY AGREEMENT continued

SEPTEMBER 30, 2013 (UNAUDITED)

one, two, three, four, five and ten years, as well as performance for the most recent quarter and year-to-date. The Trustees compared the investment performance of the Funds to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. The Trustees also reviewed the Funds’ investment performance relative to their respective performance benchmarks. The Trustees concluded based on the information received, that the Funds were satisfactorily tracking their respective benchmarks.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Funds’ contractual management fee rates; the Funds’ total operating expense ratios; Northern’s contractual commitments to continue expense reimbursements for at least one year with respect to the Funds; and whether a consistent methodology was in place in determining the fees and expenses of the Funds. The Trustees also considered that, for those Funds that were sweeping uninvested cash into a Northern affiliated money market fund, Northern was in each case rebating back to the investing Fund all of the advisory fees that were not waived by Northern of the applicable money market fund in compliance with the Funds’ exemptive order. The Trustees also considered the additional contractual expense reimbursements that were in effect during the past year.

In addition, the Trustees considered the amount of assets in the Funds; the information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship on a Fund-by-Fund basis. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to each Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rates paid by the Funds under the Advisory Agreement and the Funds’ total operating expense ratios compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Funds’ fee rates and total operating expense ratios were prepared by Lipper. The Trustees considered that each of the Funds’ total operating expense ratios after reimbursement of expenses was below its respective Lipper peer objective median, although the Funds’ contractual management fee rates were higher than their respective Lipper peer group medians. The Trustees reviewed information comparing the Bond Index Fund’s advisory fee rate to the fee rates charged by Northern to similarly managed, private institutional accounts. They noted that Northern did not manage private institutional accounts similarly managed to the U.S. Treasury Index Fund. The Trustees considered the difference in, and level of complexity of, services provided by Northern with regard to the private institutional accounts, as well as regulatory, operational and compliance differences, board and committee support and other differences. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Funds.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass, benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Funds may be sharing in economies of scale through the level at which the Funds’ advisory fees are set and through Northern’s contractual expense reimbursements that limit the expenses for the Funds to specific levels.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationship with the Funds. Those benefits included fees received by the affiliates for transfer agency, custodial and administrative functions. The Trustees also considered that many of the Funds’ shareholders had other client relationships with The Northern Trust Company. In addition, the Trustees considered that the scale of the Funds provided opportunities to Northern to obtain securities trading advantages for its other advisory clients. The Trustees also considered the extent to which Northern and its other clients, as well as the Funds, benefited from receipt of the research products and services generated by the Trust’s equity investment portfolios.

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to all of the Funds that the advisory fees paid by the Funds were reasonable in light of the services provided by Northern, its costs and the Funds’ asset levels, and that the Advisory Agreement should be approved and continued.

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FIXED INCOME INDEX FUNDS

THIS PAGE INTENTIONALLY LEFT BLANK

NORTHERN FUNDS SEMIANNUAL REPORT 87 FIXED INCOME INDEX FUNDS

FIXED INCOME INDEX FUNDS

FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

FIXED INCOME INDEX FUNDS 88 NORTHERN FUNDS SEMIANNUAL REPORT

TAX-EXEMPT FIXED INCOME FUNDS

TABLE OF CONTENTS

2	STATEMENTS OF ASSETS AND LIABILITIES
4	STATEMENTS OF OPERATIONS
6	STATEMENTS OF CHANGES IN NET ASSETS
8	FINANCIAL HIGHLIGHTS
15	SCHEDULES OF INVESTMENTS
15	ARIZONA TAX-EXEMPT FUND
19	CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
26	CALIFORNIA TAX-EXEMPT FUND
30	HIGH YIELD MUNICIPAL FUND
35	INTERMEDIATE TAX-EXEMPT FUND
51	SHORT-INTERMEDIATE TAX-EXEMPT FUND
77	TAX-EXEMPT FUND
86	ABBREVIATIONS AND OTHER INFORMATION
87	NOTES TO THE FINANCIAL STATEMENTS
94	FUND EXPENSES
96	APPROVAL OF ADVISORY AGREEMENT
100	FOR MORE INFORMATION

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

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

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

Amounts in thousands, except per share data	ARIZONA TAX-EXEMPT FUND			CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
ASSETS:
Investments, at cost		$86,500	(1)		$357,049	(2)
Investments, at value		$90,319	(3)		$367,676	(4)
Dividend income receivable		–			–
Interest income receivable		899			3,970
Receivable for securities sold		301			5,587
Receivable for fund shares sold		10			264
Receivable from investment adviser		9			24
Prepaid and other assets		7			6
Total Assets		91,545			377,527
LIABILITIES:
Payable for securities purchased		–			9,577
Payable for when-issued securities		2,312			6,153
Payable for fund shares redeemed		45			650
Distributions to shareholders		51			186
Payable to affiliates:
Investment advisory fees		8			33
Administration fees		2			9
Custody and accounting fees		2			1
Shareholder servicing fees		1			–
Transfer agent fees		2			6
Trustee fees		5			5
Accrued other liabilities		14			26
Total Liabilities		2,442			16,646
Net Assets		$89,103			$360,881
ANALYSIS OF NET ASSETS:
Capital stock		$85,667			$356,268
Accumulated undistributed net investment loss		(10	)		(4	)
Accumulated undistributed net realized loss		(373	)		(6,010	)
Net unrealized appreciation		3,819			10,627
Net Assets		$89,103			$360,881
Shares Outstanding ($.0001 par value, unlimited authorization)		8,491			34,774
Net Asset Value, Redemption and Offering Price Per Share		$10.49			$10.38

(1) Amounts include cost from the Tax-Exempt Portfolio of the Northern Institutional Funds of $2,402, $1,953, $307,757, $94,931 and $41,839, respectively.

(2) Amounts include cost from the California Municipal Money Market Fund of the Northern Funds of $5,292 and $5,826, respectively.

(3) Amounts include value from the Tax-Exempt Portfolio of the Northern Institutional Funds of $2,402, $1,953, $307,757, $94,931 and $41,839, respectively.

(4) Amounts include value from the California Municipal Money Market Fund of the Northern Funds of $5,292 and $5,826, respectively.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2013 (UNAUDITED)

CALIFORNIA TAX-EXEMPT FUND			HIGH YIELD MUNICIPAL FUND			INTERMEDIATE TAX-EXEMPT FUND			SHORT- INTERMEDIATE TAX-EXEMPT FUND			TAX-EXEMPT FUND
	$127,020	(2)		$241,605	(1)		$2,522,604	(1)		$1,201,535	(1)		$922,659	(1)
	$133,799	(4)		$252,921	(3)		$2,539,298	(3)		$1,225,109	(3)		$937,848	(3)
	–			–			2			1			–
	1,434			4,280			24,840			13,309			11,528
	3,507			5,013			22,440			–			8,652
	21			15			1,408			1,994			1,489
	12			8			166			69			62
	5			3			15			26			7
	138,778			262,240			2,588,169			1,240,508			959,586
	4,931			–			40,470			–			24,800
	4,110			–			16,774			8,510			5,569
	376			584			3,889			390			1,185
	83			213			984			290			569
	12			28			223			101			84
	3			6			62			30			23
	2			3			9			6			4
	22			8			207			–			29
	2			4			42			20			15
	5			5			14			7			10
	19			21			45			29			33
	9,565			872			62,719			9,383			32,321
	$129,213			$261,368			$2,525,450			$1,231,125			$927,265
	$123,227			$285,887			$2,518,496			$1,208,987			$923,903
	(1	)		–			(200	)		(289	)		(260	)
	(792	)		(35,835	)		(9,540	)		(1,147	)		(11,567	)
	6,779			11,316			16,694			23,574			15,189
	$129,213			$261,368			$2,525,450			$1,231,125			$927,265
	11,621			31,378			244,461			117,750			89,800
	$11.12			$8.33			$10.33			$10.46			$10.33

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

STATEMENTS OF OPERATIONS

Amounts in thousands	ARIZONA TAX-EXEMPT FUND			CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
INVESTMENT INCOME:
Interest income		$2,119			$6,654
Dividend income		–			2	(1)
Total Investment Income		2,119			6,656
EXPENSES:
Investment advisory fees		317			1,132
Administration fees		86			309
Custody and accounting fees		27			57
Transfer agent fees		58			206
Registration fees		7			7
Printing fees		15			14
Professional fees		16			16
Shareholder servicing fees		9			8
Trustee fees		5			5
Other		5			5
Total Expenses		545			1,759
Less expenses reimbursed by investment adviser		(285	)		(833	)
Net Expenses		260			926
Net Investment Income		1,859			5,730
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		(681	)		(6,512	)
Net change in unrealized appreciation (depreciation)
Investments		(5,358	)		(11,664	)
Net Losses		(6,039	)		(18,176	)
Net Decrease in Net Assets Resulting from Operations		$(4,180	)		$(12,446	)

(1) Amounts include dividend income from the California Municipal Money Market Fund of the Northern Funds of $2 and $1, respectively.

(2) Amounts include dividend income from the Tax-Exempt Portfolio of the Northern Institutional Funds of $12, $5 and $3, respectively.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

CALIFORNIA TAX-EXEMPT FUND			HIGH YIELD MUNICIPAL FUND			INTERMEDIATE TAX-EXEMPT FUND			SHORT- INTERMEDIATE TAX-EXEMPT FUND			TAX-EXEMPT FUND
	$2,750			$8,105			$32,675			$11,405			$20,247
	1	(1)		—			12	(2)		5	(2)		3	(2)
	2,751			8,105			32,687			11,410			20,250
	409			966			6,769			3,006			2,943
	112			223			1,888			902			803
	32			46			270			138			125
	74			149			1,259			601			535
	6			12			17			16			15
	7			6			19			11			14
	16			16			26			21			21
	69			24			433			30			101
	5			5			17			11			11
	5			5			16			10			10
	735			1,452			10,714			4,746			4,578
	(400	)		(262	)		(5,212	)		(2,050	)		(2,180	)
	335			1,190			5,502			2,696			2,398
	2,416			6,915			27,185			8,714			17,852
	(3,043	)		2,702			(19,830	)		(863	)		(22,972	)
	(6,048	)		(26,882	)		(70,450	)		(13,322	)		(44,334	)
	(9,091	)		(24,180	)		(90,280	)		(14,185	)		(67,306	)
	$(6,675	)		$(17,265	)		$(63,095	)		$(5,471	)		$(49,454	)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

	ARIZONA TAX-EXEMPT FUND						CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
Amounts in thousands	SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
OPERATIONS:
Net investment income		$1,859			$3,731			$5,730			$10,666
Net realized gains (losses)		(681	)		874			(6,512	)		4,581
Net change in unrealized appreciation (depreciation)		(5,358	)		1,802			(11,664	)		2,345
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,180	)		6,407			(12,446	)		17,592
CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets resulting from capital share transactions		(25,697	)		2,997			(32,765	)		64,007
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(25,697	)		2,997			(32,765	)		64,007
DISTRIBUTIONS PAID:
From net investment income		(1,859	)		(3,741	)		(5,730	)		(10,885	)
From net realized gains		–			(1,440	)		–			(4,283	)
Total Distributions Paid		(1,859	)		(5,181	)		(5,730	)		(15,168	)
Total Increase (Decrease) in Net Assets		(31,736	)		4,223			(50,941	)		66,431
NET ASSETS:
Beginning of period		120,839			116,616			411,822			345,391
End of period		$89,103			$120,839			$360,881			$411,822
Accumulated Undistributed Net Investment Loss		$(10	)		$(10	)		$(4	)		$(4	)

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED) OR THE FISCAL YEAR ENDED MARCH 31, 2013

CALIFORNIA TAX-EXEMPT FUND						HIGH YIELD MUNICIPAL FUND						INTERMEDIATE TAX-EXEMPT FUND						SHORT- INTERMEDIATE TAX-EXEMPT FUND						TAX-EXEMPT FUND
SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
	$2,416			$4,755			$6,915			$16,489			$27,185			$49,885			$8,714			$17,051			$17,852			$33,999
	(3,043	)		4,658			2,702			8,022			(19,830	)		40,432			(863	)		2,968			(22,972	)		33,813
	(6,048	)		2,365			(26,882	)		9,030			(70,450	)		6,887			(13,322	)		(6,335	)		(44,334	)		(438	)
	(6,675	)		11,778			(17,265	)		33,541			(63,095	)		97,204			(5,471	)		13,684			(49,454	)		67,374
	(25,809	)		12,218			(41,773	)		(88,587	)		78,387			244,868			67,271			72,316			(180,027	)		17,489
	(25,809	)		12,218			(41,773	)		(88,587	)		78,387			244,868			67,271			72,316			(180,027	)		17,489
	(2,416	)		(4,756	)		(6,915	)		(16,489	)		(27,184	)		(50,163	)		(8,714	)		(18,806	)		(17,852	)		(34,192	)
	–			(4,379	)		–			–			–			(49,200	)		(284	)		(1,859	)		–			(30,438	)
	(2,416	)		(9,135	)		(6,915	)		(16,489	)		(27,184	)		(99,363	)		(8,998	)		(20,665	)		(17,852	)		(64,630	)
	(34,900	)		14,861			(65,953	)		(71,535	)		(11,892	)		242,709			52,802			65,335			(247,333	)		20,233
	164,113			149,252			327,321			398,856			2,537,342			2,294,633			1,178,323			1,112,988			1,174,598			1,154,365
	$129,213			$164,113			$261,368			$327,321			$2,525,450			$2,537,342			$1,231,125			$1,178,323			$927,265			$1,174,598
	$(1	)		$(1	)		$–			$–			$(200	)		$(201	)		$(289	)		$(289	)		$(260	)		$(260	)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS

ARIZONA TAX-EXEMPT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$11.03			$10.91			$10.08			$10.34			$9.92			$10.01
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.17			0.35			0.36			0.36			0.38			0.40
Net realized and unrealized gains (losses)		(0.54	)		0.26			0.87			(0.23	)		0.42			(0.09	)
Total from Investment Operations		(0.37	)		0.61			1.23			0.13			0.80			0.31
LESS DISTRIBUTIONS PAID:
From net investment income		(0.17	)		(0.35	)		(0.36	)		(0.36	)		(0.38	)		(0.40	)
From net realized gains		–			(0.14	)		(0.04	)		(0.03	)		–			–
Total Distributions Paid		(0.17	)		(0.49	)		(0.40	)		(0.39	)		(0.38	)		(0.40	)
Net Asset Value, End of Period		$10.49			$11.03			$10.91			$10.08			$10.34			$9.92
Total Return(1)		(3.33	)%		5.63	%		12.30	%		1.23	%		8.11	%		3.17	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$89,103			$120,839			$116,616			$101,318			$102,059			$84,461
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.45	%(3)		0.45	%(3)		0.67	%(3)		0.74	%(3)		0.75	%		0.75	%
Expenses, before reimbursements and credits		0.95	%		0.93	%		0.94	%		0.94	%		0.93	%		0.95	%
Net investment income, net of reimbursements and credits		3.23	%(3)		3.16	%(3)		3.34	%(3)		3.49	%(3)		3.66	%		4.03	%
Net investment income, before reimbursements and credits		2.73	%		2.68	%		3.07	%		3.29	%		3.48	%		3.83	%
Portfolio Turnover Rate		10.03	%		34.54	%		50.48	%		48.37	%		31.71	%		47.59	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of less than $1,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2013, and approximately $2,000, $2,000 and $7,000, which represents less than 0.005, less than 0.005 and 0.01 percent of average net assets for the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.84			$10.74			$10.04			$10.15			$9.79			$9.94
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.15			0.32			0.34			0.32			0.32			0.33
Net realized and unrealized gains (losses)		(0.46	)		0.23			0.70			(0.07	)		0.36			(0.15	)
Total from Investment Operations		(0.31	)		0.55			1.04			0.25			0.68			0.18
LESS DISTRIBUTIONS PAID:
From net investment income		(0.15	)		(0.33	)		(0.34	)		(0.32	)		(0.32	)		(0.33	)
From net realized gains		–			(0.12	)		–			(0.04	)		–			–
Total Distributions Paid		(0.15	)		(0.45	)		(0.34	)		(0.36	)		(0.32	)		(0.33	)
Net Asset Value, End of Period		$10.38			$10.84			$10.74			$10.04			$10.15			$9.79
Total Return(1)		(2.89	)%		5.17	%		10.56	%		2.36	%		7.01	%		1.88	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$360,881			$411,822			$345,391			$290,815			$265,784			$187,964
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.45	%(3)		0.45	%(3)		0.67	%(3)		0.74	%(3)(4)		0.75	%		0.75	%
Expenses, before reimbursements and credits		0.85	%		0.86	%		0.85	%		0.86	%		0.86	%		0.88	%
Net investment income, net of reimbursements and credits		2.78	%(3)		2.92	%(3)		3.20	%(3)		3.11	%(3)		3.17	%		3.39	%
Net investment income, before reimbursements and credits		2.38	%		2.51	%		3.02	%		2.99	%		3.06	%		3.26	%
Portfolio Turnover Rate		49.53	%		55.59	%		53.21	%		54.12	%		33.12	%		30.72	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $2,000, $6,000, $3,000 and $16,000, which represents less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(4) The net expense ratio includes custodian credits of approximately $1,000, which represents less than 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS continued

CALIFORNIA TAX-EXEMPT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$11.78			$11.57			$10.35			$10.80			$10.19			$10.51
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.18			0.35			0.37			0.43			0.43			0.43
Net realized and unrealized gains (losses)		(0.66	)		0.53			1.31			(0.27	)		0.61			(0.32	)
Total from Investment Operations		(0.48	)		0.88			1.68			0.16			1.04			0.11
LESS DISTRIBUTIONS PAID:
From net investment income		(0.18	)		(0.35	)		(0.37	)		(0.43	)		(0.43	)		(0.43	)
From net realized gains		–			(0.32	)		(0.09	)		(0.18	)		–	(1)		–
Total Distributions Paid		(0.18	)		(0.67	)		(0.46	)		(0.61	)		(0.43	)		(0.43	)
Net Asset Value, End of Period		$11.12			$11.78			$11.57			$10.35			$10.80			$10.19
Total Return(2)		(4.02	)%		7.73	%		16.38	%		1.44	%		10.38	%		1.07	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period(3)		$129,213			$164,113			$149,252			$114,389			$156,222			$135,296
Ratio to average net assets of:
Expenses, net of reimbursements and credits		0.45	%(4)		0.45	%(4)		0.66	%(4)		0.74	%(4)(5)		0.75	%		0.75	%
Expenses, before reimbursements and credits		0.99	%		0.97	%		0.99	%		0.97	%		0.93	%		0.90	%
Net investment income, net of reimbursements and credits		3.25	%(4)		2.93	%(4)		3.25	%(4)		3.94	%(4)		4.06	%		4.16	%
Net investment income, before reimbursements and credits		2.71	%		2.41	%		2.92	%		3.71	%		3.88	%		4.01	%
Portfolio Turnover Rate		75.80	%		145.22	%		201.67	%		144.16	%		91.62	%		53.88	%

(1) Per share amounts from distributions from net realized gains were less than $0.01 per share.

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $1,000, $6,000, $3,000 and $8,000, which represents less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(5) The net expense ratio includes custodian credits of approximately $1,000, which represents less than 0.01 percent of average net assets for the fiscal year ended March 31, 2011. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

HIGH YIELD MUNICIPAL FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$9.04			$8.66			$7.77			$8.10			$7.23			$8.89
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.20			0.40			0.37			0.35			0.34			0.42
Net realized and unrealized gains (losses)		(0.71	)		0.38			0.89			(0.33	)		0.87			(1.66	)
Total from Investment Operations		(0.51	)		0.78			1.26			0.02			1.21			(1.24	)
LESS DISTRIBUTIONS PAID:
From net investment income		(0.20	)		(0.40	)		(0.37	)		(0.35	)		(0.34	)		(0.42	)
Total Distributions Paid		(0.20	)		(0.40	)		(0.37	)		(0.35	)		(0.34	)		(0.42	)
Net Asset Value, End of Period		$8.33			$9.04			$8.66			$7.77			$8.10			$7.23
Total Return(1)		(5.65	)%		9.10	%		16.57	%		0.10	%		16.90	%		(14.29	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$261,368			$327,321			$398,856			$826,418			$799,779			$330,393
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.80	%(3)		0.80	%(3)		0.84	%(3)		0.84	%(3)		0.85	%		0.85	%
Expenses, before reimbursements and credits		0.98	%		0.97	%		0.94	%		0.94	%		0.95	%		0.96	%
Net investment income, net of reimbursements and credits		4.66	%(3)		4.42	%(3)		4.50	%(3)		4.25	%(3)		4.24	%		5.12	%
Net investment income, before reimbursements and credits		4.48	%		4.25	%		4.40	%		4.15	%		4.14	%		5.01	%
Portfolio Turnover Rate		6.99	%		6.29	%		9.19	%		25.00	%		12.45	%		33.97	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of less than $1,000, which represent less than 0.005 percent of average net assets for the six months ended September 30, 2013, and approximately $2,000, $18,000 and $102,000, which represents less than 0.005, less than 0.005 and 0.01 percent of average net assets for the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS continued

INTERMEDIATE TAX-EXEMPT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.70			$10.69			$9.95			$10.30			$10.01			$10.05
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.11			0.23			0.25			0.28			0.31			0.35
Net realized and unrealized gains (losses)		(0.37	)		0.23			0.76			(0.18	)		0.37			(0.04	)
Total from Investment Operations		(0.26	)		0.46			1.01			0.10			0.68			0.31
LESS DISTRIBUTIONS PAID:
From net investment income		(0.11	)		(0.23	)		(0.25	)		(0.28	)		(0.31	)		(0.35	)
From net realized gains		–			(0.22	)		(0.02	)		(0.17	)		(0.08	)		–
Total Distributions Paid		(0.11	)		(0.45	)		(0.27	)		(0.45	)		(0.39	)		(0.35	)
Net Asset Value, End of Period		$10.33			$10.70			$10.69			$9.95			$10.30			$10.01
Total Return(1)		(2.40	)%		4.33	%		10.26	%		0.98	%		6.94	%		3.02	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$2,525,450			$2,537,342			$2,294,633			$1,691,614			$1,646,105			$1,200,669
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.44	%(3)		0.43	%(3)		0.64	%(3)		0.72	%(3)		0.75	%		0.75	%
Expenses, before reimbursements and credits		0.85	%		0.86	%		0.85	%		0.86	%		0.86	%		0.84	%
Net investment income, net of reimbursements and credits		2.16	%(3)		2.10	%(3)		2.40	%(3)		2.70	%(3)		2.98	%		3.49	%
Net investment income, before reimbursements and credits		1.75	%		1.67	%		2.19	%		2.56	%		2.87	%		3.40	%
Portfolio Turnover Rate		50.59	%		109.82	%		135.53	%		105.88	%		111.53	%		135.72	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $36,000, $170,000, $242,000 and $522,000, which represents less than 0.005, 0.01, 0.01 and 0.03 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

SHORT-INTERMEDIATE TAX-EXEMPT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.58			$10.65			$10.48			$10.49			$10.33			$10.17
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.08			0.17			0.16			0.14			0.18			0.27
Net realized and unrealized gains (losses)		(0.12	)		(0.03	)		0.17			(0.01	)		0.16			0.16
Total from Investment Operations		(0.04	)		0.14			0.33			0.13			0.34			0.43
LESS DISTRIBUTIONS PAID:
From net investment income		(0.08	)		(0.19	)		(0.16	)		(0.14	)		(0.18	)		(0.27	)
From net realized gains		–	(1)		(0.02	)		–			–	(1)		–	(1)		–
Total Distributions Paid		(0.08	)		(0.21	)		(0.16	)		(0.14	)		(0.18	)		(0.27	)
Net Asset Value, End of Period		$10.46			$10.58			$10.65			$10.48			$10.49			$10.33
Total Return(2)		(0.39	)%		1.27	%		3.18	%		1.21	%		3.29	%		4.31	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,231,125			$1,178,323			$1,112,988			$1,413,570			$1,319,330			$736,270
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		0.45	%(4)		0.45	%(4)		0.64	%(4)		0.66	%(4)		0.70	%		0.70	%
Expenses, before reimbursements and credits		0.79	%		0.79	%		0.79	%		0.79	%		0.79	%		0.80	%
Net investment income, net of reimbursements and credits		1.45	%(4)		1.58	%(4)		1.50	%(4)		1.28	%(4)		1.63	%		2.63	%
Net investment income, before reimbursements and credits		1.11	%		1.24	%		1.35	%		1.15	%		1.54	%		2.53	%
Portfolio Turnover Rate		11.59	%		16.14	%		16.47	%		17.72	%		10.07	%		25.93	%

(1) Per share amounts from distributions from net realized gains were less than $0.01 per share.

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $12,000, $28,000, $117,000 and $547,000, which represents less than 0.005, less than 0.005, 0.01 and 0.04 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

FINANCIAL HIGHLIGHTS continued

TAX-EXEMPT FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period	$	10.95		$	10.92		$	9.95		$	10.55		$	10.03		$	10.16
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.18			0.32			0.36			0.39			0.40			0.40
Net realized and unrealized gains (losses)		(0.62	)		0.31			0.97			(0.41	)		0.53			(0.13	)
Total from Investment Operations		(0.44	)		0.63			1.33			(0.02	)		0.93			0.27
LESS DISTRIBUTIONS PAID:
From net investment income		(0.18	)		(0.32	)		(0.36	)		(0.39	)		(0.40	)		(0.40	)
From net realized gains		—			(0.28	)		—			(0.19	)		(0.01	)		—
Total Distributions Paid		(0.18	)		(0.60	)		(0.36	)		(0.58	)		(0.41	)		(0.40	)
Net Asset Value, End of Period	$	10.33		$	10.95		$	10.92		$	9.95		$	10.55		$	10.03
Total Return(1)		(4.04	)%		5.85	%		13.55	%		(0.26	)%		9.38	%		2.73	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period	$	927,265		$	1,174,598		$	1,154,365		$	932,820		$	1,069,787		$	891,908
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		0.45	%(3)		0.45	%(3)		0.66	%(3)		0.74	%(3)		0.75	%		0.75	%
Expenses, before reimbursements and credits		0.86	%		0.85	%		0.85	%		0.86	%		0.85	%		0.85	%
Net investment income, net of reimbursements and credits		3.33	%(3)		2.85	%(3)		3.40	%(3)		3.70	%(3)		3.83	%		4.00	%
Net investment income, before reimbursements and credits		2.92	%		2.45	%		3.21	%		3.58	%		3.73	%		3.90	%
Portfolio Turnover Rate		69.82	%		167.86	%		174.06	%		116.83	%		122.57	%		166.83	%

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

(2) Annualized for periods less than one year.

(3) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $13,000, $63,000, $67,000 and $115,000, which represents less than 0.005, 0.01, 0.01 and 0.01 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 98.7%
Arizona – 98.7%
Arizona Board of Regents University System Revenue Bonds, Series A, 5.00%, 6/1/21		$500		$566
Arizona State School Facilities Board COPS, 5.25%, 9/1/23		2,000		2,186
Arizona State Transportation Board Highway Revenue Bonds, Series B, 5.00%, 7/1/30		1,000		1,079
Arizona State University Research Infrastructure COPS (AMBAC Insured), Prerefunded, 5.00%, 9/1/14		600		626
Arizona State University Research Infrastructure COPS (AMBAC Insured), Unrefunded Balance, 5.00%, 9/1/30		1,400		1,434
Arizona State University System Revenue Refunding Bonds (AMBAC Insured), 5.00%, 7/1/27		1,450		1,523
Bullhead City Municipal Property Corp. Excise TRB (NATL-RE Insured), 5.00%, 7/1/23		1,000		1,058
Coconino & Yavapai Counties Joint Unified School District No. 9 G.O. Unlimited Bonds, Series B, School Improvement Project of 2007 (Assured Guaranty Insured), 5.00%, 7/1/22		1,345		1,496
Gilbert Public Facilities Municipal Property Corp. Revenue Bonds, 5.50%, 7/1/28		1,000		1,077
Gilbert Public Facilities Municipal Property Corp. Revenue Refunding Bonds, 4.00%, 7/1/19		1,915		2,098
Glendale Water & Sewer Revenue Bonds, Sub Lien (AGM Insured), 5.00%, 7/1/25		2,000		2,211
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, 6.00%, 7/1/31		1,000		1,113
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, Series A (NATL-RE Insured), 5.00%, 7/1/22		1,000		1,122
Goodyear Water & Sewer Revenue Bonds, Sub Lien Obligations (AGM Insured), 5.25%, 7/1/31		1,000		1,052

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 98.7% – continued
Arizona – 98.7% – continued
Greater Development Authority Infrastructure Revenue Bonds, Series 2, Santa Cruz County Jail, 5.00%, 8/1/28		$2,000		$2,056
5.25%, 8/1/31		1,005		1,036
Marana Municipal Property Corp. Facilities Revenue Bonds, Series A, 5.25%, 7/1/23		1,970		2,225
Maricopa County Community College District G.O. Unlimited Bonds, Series C, 5.00%, 7/1/20		510		591
Maricopa County Elementary School District No. 1 Phoenix G.O. Unlimited Bonds, Series B, School Improvement Project of 2006, 4.50%, 7/1/21		1,190		1,302
Maricopa County Elementary School District No. 8 Osborn G.O. Limited Refunding Bonds (NATL-RE FGIC Insured), 4.70%, 7/1/14		1,000		1,028
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		731
Maricopa County High School District No. 210 Phoenix G.O. Unlimited Refunding Bonds (AGM Insured), 5.25%, 7/1/18		225		263
5.25%, 7/1/20		1,000		1,188
Maricopa County School District No. 6 Washington Elementary G.O. Unlimited Bonds, Series B, 3.00%, 7/1/24		1,000		966
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		1,103
Maricopa County Unified School District No. 41 Gilbert G.O. Limited Refunding Bonds, 5.00%, 7/1/21		1,500		1,746
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		1,076

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 98.7% – continued
Arizona – 98.7% – continued
Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, School Improvement, 5.00%, 7/1/23		$175		$197
Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, Series A-1, School Improvement Project of 2010, 4.00%, 7/1/22		1,040		1,126
Maricopa County Unified School District No. 89 Dysart G.O. Unlimited Bonds, Series B, School Improvement Project of 2006 (AMBAC Insured), 5.00%, 7/1/27		500		530
Mesa G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/18		150		173
Mesa Street & Highway Revenue Refunding Bonds (AGM Insured), 5.00%, 7/1/23		1,000		1,154
Mesa Utility System Revenue Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/18		1,000		1,151
5.00%, 7/1/19		1,510		1,751
Mohave County Unified School District No. 20 Kingman G.O. Unlimited Bonds, Series C, School Improvement Project of 2006 (Assured Guaranty Insured), 5.50%, 7/1/21		1,000		1,174
5.00%, 7/1/23		1,000		1,139
Northern University Refunding COPS, 5.00%, 9/1/25		1,910		2,083
5.00%, 9/1/26		1,365		1,472
Northern University Research Projects COPS (AMBAC Insured), 5.00%, 9/1/26		400		408
Northern University Revenue Bonds (AGM Insured), 3.38%, 6/1/28		385		356
3.50%, 6/1/29		415		383
3.63%, 6/1/30		640		593
3.75%, 6/1/31		540		504
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series B (AMT), Senior Lien, 5.25%, 7/1/16		1,000		1,117
Phoenix Civic Improvement Corp. Wastewater System Revenue Bonds, Junior Lien (NATL-RE Insured), 5.00%, 7/1/29		1,010		1,036

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 98.7% – continued
Arizona – 98.7% – continued
Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Senior Lien, 5.50%, 7/1/20		$1,690		$1,980
5.50%, 7/1/21		1,080		1,262
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Series A, Junior Lien, 5.00%, 7/1/20		1,280		1,486
5.00%, 7/1/39		530		550
Pima County Sewer Revenue Bonds, Series B, 5.00%, 7/1/25		1,000		1,105
Pima County Sewer System Revenue Bonds (AGM Insured), 5.00%, 7/1/23		1,350		1,524
Pima County Street & Highway Revenue Bonds, 4.00%, 7/1/22		1,970		2,104
Pima County Unified School District No. 1 Tucson G.O. Unlimited Refunding Bonds, 5.00%, 7/1/21		1,000		1,158
Pima County Unified School District No. 10 G.O. Unlimited Bonds, Series D, School Improvement Project of 2007, 5.00%, 7/1/24 (1)		1,005		1,133
5.00%, 7/1/25 (1)		625		695
5.00%, 7/1/26 (1)		525		575
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		1,109
Pinal County Unified School District No. 43 Apache Junction G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 7/1/22		1,000		1,163
Prescott Valley Municipal Property Corp. Facilities Revenue Refunding Bonds, 5.00%, 1/1/24		1,835		2,019
Rio Nuevo Multi-purpose Facilities District Excise TRB, Sub Lien (Assured Guaranty Insured), 5.25%, 7/15/16		1,000		1,107
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Series A, 5.00%, 1/1/37		1,000		1,036
5.00%, 1/1/39		1,225		1,272

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 98.7% – continued
Arizona – 98.7% – continued
Scottsdale Municipal Property Corp. Excise Tax Revenue Refunding Bonds, 5.00%, 7/1/30		$2,675		$2,982
5.00%, 7/1/34		1,480		1,609
Tempe G.O. Unlimited Bonds, 5.00%, 7/1/21		795		887
Tucson Airport Authority, Inc. Revenue Bonds (AMT), Sub Lien (NATL-RE Insured), 5.00%, 12/1/23		1,135		1,228
Tucson COPS (Assured Guaranty Insured), 5.00%, 7/1/26		1,000		1,069
5.00%, 7/1/29		1,000		1,046
Tucson Water System Revenue Bonds, 5.00%, 7/1/25		1,825		2,022
Tucson Water System Revenue Bonds, Series 2005-B (AGM Insured), 5.00%, 7/1/25		1,590		1,772
Tucson Water System Revenue Refunding Bonds, Series A, 5.00%, 7/1/23		500		581
Yuma County Library District G.O. Unlimited Bonds (XLCA Insured), 5.00%, 7/1/23		1,000		1,102
5.00%, 7/1/28		1,945		2,042
				87,917
Total Municipal Bonds
(Cost $84,098)				87,917
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 2.7%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (2)(3)		2,402,393		$2,402
Total Investment Companies
(Cost $2,402)				2,402
Total Investments – 101.4%
(Cost $86,500)				90,319
Liabilities less Other Assets – (1.4)%				(1,216	)
NET ASSETS – 100.0%				$89,103

(1) When-Issued Security.

(2) At March 31, 2013, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $1,006,000 with net purchases of approximately $1,396,000 during the six months ended September 30, 2013.

(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.

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the Arizona Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Facilities		8.0%
General		22.4
General Obligation		5.3
Higher Education		8.3
School District		23.1
Utilities		6.1
Water		15.5
All other sectors less than 5%		11.3
Total		100.0%

At September 30, 2013, the credit quality distribution for the Arizona Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		6.7%
AA		58.7
A		31.9
Cash and Equivalents		2.7
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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND continued SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Municipal Bonds		$ –		$87,917	(1)		$–		$87,917
Investment Companies		2,402		–			–		2,402
Total Investments		$2,402		$87,917			$–		$90,319

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7%
California – 99.7%
Alameda County Joint Powers Authority Lease Revenue Bonds, Series A, Multiple Capital Projects, 4.00%, 12/1/24 (1)		$1,000		$1,035
5.25%, 12/1/28 (1)		2,500		2,720
Anaheim Public Financing Authority Electric System Distribution Facilities Revenue Bonds (NATL-RE Insured), 4.75%, 10/1/27		4,000		4,121
Bay Area Government Association Infrastructure Finance Authority Revenue Bonds, State Payment Acceleration Notes (NATL Insured), 5.00%, 8/1/17		2,630		2,718
5.00%, 8/1/17		485		489
Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, 5.00%, 4/1/34		2,000		2,087
5.13%, 4/1/39		1,000		1,045
Brentwood Union School District G.O. Unlimited Refunding Bonds, 3.38%, 8/1/25		1,000		962
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, 5.00%, 8/1/27		1,500		1,539
California State Department of Water Resources Supply Revenue Bonds, Series L, 5.00%, 5/1/19		5,000		5,896
California State Department of Water Resources System Revenue Bonds, Series AM, Center Valley Project, 5.00%, 12/1/22		5,780		6,964
California State Economic Recovery G.O. Unlimited Refunding Bonds, Series A, 5.00%, 7/1/19		5,000		5,905
California State Educational Facilities Authority Revenue Bonds, University Southern California, 4.75%, 10/1/28		3,000		3,131
California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance (FGIC Insured), Partially Prerefunded, 5.38%, 6/1/26		2,220		2,238
California State G.O. Unlimited Bonds, Series 2013, Unrefunded Balance, 5.00%, 2/1/24		1,160		1,161

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
California State G.O. Unlimited Bonds, Unrefunded Balance (NATL Insured), 4.75%, 2/1/19		$85		$85
California State G.O. Unlimited Refunding Bonds, 4.50%, 10/1/29		2,000		2,024
California State Health Facilities Financing Authority Revenue Bonds, Series A, Memorial Health Services, 4.00%, 10/1/21		1,000		1,086
California State Health Facilities Financing Authority Revenue Bonds, Series A, St. Joseph Health System, 5.00%, 7/1/24		1,500		1,683
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Broad Museum Project, 5.00%, 6/1/21		4,610		5,490
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, Departmentof 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		1,121
California State Public Works Board Lease Revenue Bonds, Subseries I-1, Various Capital Projects, 6.38%, 11/1/34		2,500		2,874
California State Public Works Board Lease Revenue Refunding Bonds, Series A, Department of Corrections State Prisons (AMBAC Insured), 5.25%, 12/1/13		615		620
California State Public Works Board Lease Revenue Refunding Bonds, Series A, Trustees California State University, 5.25%, 10/1/14		3,545		3,560
California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation, 5.00%, 6/1/19		2,000		2,144

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
California State Public Works Board Lease Revenue Refunding Bonds, Series J, Department of Corrections & Rehabilitation (AMBAC Insured), 5.00%, 1/1/19		$1,300		$1,414
California State University Systemwide Revenue Bonds, Series A, 5.00%, 11/1/21		6,000		7,141
California State University Systemwide Revenue Bonds, Series C (NATL-RE Insured), 5.00%, 11/1/28		1,175		1,247
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 9/1/18		2,980		3,473
5.50%, 4/1/19		1,000		1,196
5.00%, 9/1/19		4,720		5,562
5.00%, 10/1/19		2,990		3,528
5.00%, 9/1/20		1,690		2,007
5.00%, 10/1/20		6,000		7,128
5.50%, 4/1/21		2,000		2,338
4.75%, 6/1/22		2,500		2,621
5.25%, 3/1/30		1,500		1,610
5.00%, 8/1/33		1,100		1,122
5.00%, 8/1/35		3,225		3,283
California State Various Purpose G.O. Unlimited Refunding Bonds, 5.00%, 9/1/23		2,750		3,182
California Statewide Communities Development Authority PCR Refunding Bonds, Southern California Edison Co., 1.90%, Mandatory Put 4/1/20		4,075		3,867
Carlsbad Unified School District G.O. Unlimited CABS, 3.79%, 5/1/19 (2)		1,250		1,080
Chabot-Las Positas Community College District G.O. Unlimited Refunding Bonds, 2016 Crossover, 5.00%, 8/1/26		2,500		2,817
3.13%, 8/1/28		3,500		3,047
Chula Vista Industrial Development Revenue Refunding Bonds, Series A, San Diego Gas & Electric, 1.65%, 7/1/18		7,825		7,821
Contra Costa Community College District G.O. Unlimited Refunding Bonds, 5.00%, 8/1/21		1,250		1,497

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
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		$1,043
East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series B, 4.00%, 6/1/21		5,000		5,616
5.00%, 6/1/22		1,745		2,097
East Side Union High School District Santa Clara County G.O. Unlimited Refunding Bonds, 5.00%, 8/1/26		900		980
Eastern Municipal District Water & Sewer COPS, Series H, 5.00%, 7/1/33		2,000		2,071
El Camino Community College District G.O. Unlimited CABS, Series C, Election of 2002, 3.03%, 8/1/23 (2)		9,940		7,017
El Dorado Irrigation District COPS, Series A (Assured Guaranty Insured), 4.00%, 8/1/18		1,915		2,108
6.25%, 8/1/29		3,500		3,622
Foothill Eastern Transportation Corridor Agency Toll Road Capital Appreciation Revenue Bonds, Series A, Senior Lien, Escrowed to Maturity, 3.25%, 1/1/20 (2)		2,150		1,882
Fremont Unified School District Alameda County G.O. Unlimited Refunding Bonds, 4.25%, 8/1/25		2,000		2,149
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election of 2008, 5.38%, 8/1/44		1,500		1,611
Glendale Electric Works Revenue Refunding Bonds, 5.00%, 2/1/25		1,265		1,440
Long Beach Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.00%, 8/1/20		1,075		1,267
Los Altos School District G.O. Unlimited Refunding Bonds (AMBAC Insured), Prerefunded, 5.00%, 8/1/19		840		945

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
Los Altos School District G.O. Unlimited Refunding Bonds (AMBAC Insured), Unrefunded Balance, 5.00%, 8/1/19		$1,160		$1,288
Los Angeles Community College District G.O. Unlimited Refunding Bonds, 5.00%, 8/1/21		1,890		2,264
Los Angeles County Public Works Financing Authority Lease Revenue Bonds, Multiple Capital Projects II, 5.00%, 8/1/21		500		581
Los Angeles Department of International Airports Revenue Bonds, Series D, 5.25%, 5/15/29		5,000		5,366
5.00%, 5/15/40		3,500		3,577
Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1, 5.25%, 7/1/38		2,825		2,978
Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series C (NATL-RE Insured), Prerefunded, 5.00%, 7/1/29		1,000		1,036
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/21		5,000		5,220
Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), 5.00%, 8/1/19		1,500		1,736
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A, 2.00%, 7/1/21		2,000		1,935
Los Angeles Unified School District Refunding COPS, Series A, Headquarters Building Projects, 5.00%, 10/1/21		3,820		4,371
Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL Insured), 6.00%, 6/1/21		1,185		1,500
Los Angeles Wastewater System Revenue Refunding Bonds, Subseries C, 5.00%, 6/1/23		1,935		2,290
Marin County COPS, 3.00%, 8/1/21		1,595		1,642
4.00%, 8/1/23		1,140		1,213
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series C, 5.00%, 10/1/27		1,000		1,175

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
Metropolitan Water District of Southern California State Authorization Revenue Bonds, Series B-2 (NATL Insured), Prerefunded, 5.00%, 10/1/26		$2,000		$2,000
Midpeninsula Regional Open Space District Revenue Bonds, 5.25%, 9/1/34		2,000		2,068
Modesto Irrigation District Electric Revenue Refunding Bonds, Series A, 4.00%, 7/1/19		1,230		1,361
5.00%, 7/1/21		750		872
Modesto Irrigation District Financing Authority Revenue Refunding Bonds, Series G, Domestic Water Project (AGM Insured), 5.00%, 9/1/20		1,000		1,165
5.00%, 9/1/22		1,445		1,673
Modesto Wastewater Revenue Refunding Bonds, Series A (AGM Insured), 5.25%, 11/1/18		1,000		1,090
Mojave Water Agency COPS, Series A, 5.00%, 6/1/23		665		735
Northern California Power Agency Revenue Bonds, Series A, 5.00%, 7/1/18		1,500		1,736
Orange County Transportation Authority Toll Road Revenue Refunding Bonds, Senior Lien, 91 Express Lanes, 5.00%, 8/15/20		1,000		1,167
Pasadena Unified School District G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 11/1/18		2,500		2,766
5.00%, 11/1/19		2,275		2,525
Placentia-Yorba Linda Unified School District G.O. Unlimited Refunding Bonds, 5.00%, 8/1/24		1,150		1,316
Pomona Valley Educational Joint Powers Authority Lease Revenue Refunding Bonds (BAM Insured), 5.00%, 8/1/20		1,000		1,136
5.00%, 8/1/21		1,010		1,138
Poway Unified School District No. 07-1 Improvement G.O. Unlimited Bonds, Election of 2008, Series A, 3.81%, 8/1/20 (2)		3,280		2,683

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
Redlands Unified School District G.O. Unlimited Bonds, Election of 2008 (AGM Insured), 5.00%, 7/1/28		$150		$160
5.00%, 7/1/29		1,000		1,061
Rescue Union School District COPS (Assured Guaranty Insured), Escrowed to Maturity, 4.38%, 10/1/13		2,775		2,775
Riverside County Asset Leasing Corp. Revenue Bonds, Series A, Pub Defender & Probation Building, 5.25%, 11/1/24		800		892
Riverside County Transportation Commission Sales TRB, Series A, Limited Tax, 5.25%, 6/1/24		2,255		2,699
Riverside Public Financing Authority Local Measure A Sales Tax Revenue COPS, Riverside Payment Rehabilitation (AGM Insured), 5.25%, 6/1/24		615		687
Ross Elementary School District G.O. Unlimited Bonds, Election of 2006 (NATL-RE Insured), 5.25%, 8/1/27		455		473
Sacramento City Financing Authority Lease Revenue Refunding Bonds, Series A, California EPA Building, 5.00%, 5/1/19		2,250		2,579
5.00%, 5/1/20		3,000		3,430
Sacramento County Airport System Senior Revenue Bonds, 5.00%, 7/1/28		1,500		1,592
Sacramento Municipal Utility District Revenue Bonds, Series U (AGM Insured), 5.00%, 8/15/19		1,000		1,149
5.00%, 8/15/25		2,000		2,181
Sacramento Municipal Utility District Revenue Refunding Bonds, Series X, 5.00%, 8/15/20		1,950		2,300
San Bernardino City Unified School District G.O. Unlimited Bonds, Series A, Election of 2012 (AGM Insured), 4.00%, 8/1/33		1,250		1,118
San Diego County Regional Airport Authority Revenue Bonds, Senior Series B (AMT), 5.00%, 7/1/21		600		683
5.00%, 7/1/22		550		624

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
San Diego Public Facilities Financing Authority Lease Revenue Refunding Bonds, Series A, Master Refunding Project, 4.00%, 3/1/19		$1,150		$1,248
4.25%, 3/1/20		1,130		1,233
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, 4.00%, 5/15/20		1,495		1,650
San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds, Senior Series B, 5.00%, 5/15/20		5,000		5,802
San Diego Regional Building Authority Revenue Bonds, Series A, County Operations Center & Annex, 4.00%, 2/1/19		3,615		3,977
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		1,785
San Dieguito Union High School District G.O. Unlimited Bonds, Series A-2, Election of 2012, 4.00%, 8/1/38		2,000		1,818
San Francisco City & County Airports Commission Revenue Refunding Bonds, Second Series C (FSA Insured), 4.00%, 5/1/18		1,875		2,095
San Francisco City & County Common International Airports Revenue Bonds, Second Series A (AMT), 5.50%, 5/1/27		3,705		3,988
San Francisco City & County G.O. Unlimited Refunding Bonds, Series R1, 5.00%, 6/15/20		3,000		3,590
San Francisco City & County International Airports Commission Revenue Refunding Bonds, Second Series D, 3.25%, 5/1/26		7,440		6,977
3.38%, 5/1/27		1,475		1,374
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Subseries A, 5.00%, 11/1/20		2,000		2,392

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
San Francisco City & County Unified School District Property G.O. Unlimited Bonds, Series E, Election of 2006, 5.00%, 6/15/22		$2,615		$3,018
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, 5.75%, 3/1/28		2,000		2,254
San Jose Unified School District Santa Clara County G.O. Unlimited Refunding Bonds, 5.00%, 8/1/23		1,000		1,160
San Mateo County Transit District Tax Revenue Refunding Bonds, Series A (NATL-RE Insured), 4.75%, 6/1/28		3,785		3,951
San Mateo Union High School District G.O. Unlimited Capital Appreciation BANS, 1.30%, 2/15/15 (2)		1,000		993
San Ramon Valley Unified School District G.O. Unlimited Refunding Bonds, 4.00%, 8/1/20		1,000		1,129
Santa Ana Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.50%, 8/1/30		2,000		2,203
Santa Clara Unified School District G.O. Unlimited Bonds, Election of 2010, 3.00%, 7/1/20		1,000		1,064
4.50%, 7/1/32		2,000		2,055
Santa Clara Unified School District G.O. Unlimited Bonds, Series A, Election of 2004, 5.00%, 7/1/29		1,500		1,610
5.00%, 7/1/30		4,040		4,319
5.00%, 7/1/34		1,000		1,054
Santa Clara Valley Water District Refunding & Improvement COPS, Series A, 4.00%, 2/1/21		1,500		1,689
Santa Rosa Wastewater Revenue Bonds, Series A (AGM Insured), 5.25%, 9/1/27		1,255		1,354
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, 6.00%, 7/1/43		2,000		2,250

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
South Orange County Public Financing Authority Special Tax Refunding Bonds, Series A, Foothill Area (NATL Insured), 5.25%, 8/15/14		$1,295		$1,345
5.25%, 8/15/18		2,500		2,601
Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Phase, 5.25%, 7/1/23		3,075		3,562
Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Project 1, 5.00%, 7/1/24		1,240		1,398
Southern California Public Power Authority Revenue Bonds, Series A, 5.00%, 7/1/29		1,765		1,893
Southern California Public Power Authority Revenue Bonds, Windy Point/Windy Flats Project 1, 5.00%, 7/1/30		2,500		2,673
Southern California State Public Power Authority Capital Appreciation Subordinate Revenue Refunding Bonds, Southern Transmission Project, 3.77%, 7/1/14 (2)		1,000		997
University of California General Revenue Bonds, General Series AK, 5.00%, Mandatory Put 5/15/23		7,000		8,175
University of California General Revenue Bonds, General Series J (AGM Insured), 4.50%, 5/15/31 (1)		3,250		3,278
University of California Regents Medical Center Pooled Revenue Bonds, Series A (NATL-RE Insured), 4.50%, 5/15/37		1,500		1,421
Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.25%, 8/1/27		2,125		2,327
Ventura County Community College District Capital Appreciation G.O. Unlimited Bonds, Series C, Election of 2002, 4.25%, 8/1/17 (2)		1,615		1,497
4.28%, 8/1/18 (2)		1,635		1,459
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, 5.50%, 8/1/33		1,000		1,109

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 99.7% – continued
California – 99.7% – continued
West Valley-Mission Community College District Capital Appreciation G.O. Unlimited Bonds, Series B, 3.43%, 8/1/16 (2)		$1,115		$1,082
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		1,729
William S Hart Union High School District G.O. Unlimited Bonds, Series C, Election of 2008, 4.00%, 8/1/38		2,000		1,766
				359,884
Total Municipal Bonds
(Cost $349,257)				359,884
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 1.5%
Northern Funds - California Municipal Money Market Fund, 0.01% (3)(4)		5,291,587		$5,292
Total Investment Companies
(Cost $5,292)				5,292
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.7%
California State School Cash Reserve Program Authority Revenue Notes VRDB, Series BB, 2.00%, 10/1/13		$2,500		$2,500
Total Short-Term Investments
(Cost $2,500)				2,500
Total Investments – 101.9%
(Cost $357,049)				367,676
Liabilities less Other Assets – (1.9)%				(6,795	)
NET ASSETS – 100.0%				$360,881

(1) When-Issued Security.

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

(3) Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the California Municipal Money Market Fund.

(4) During the six months ended September 30, 2013, the Fund had net purchases of approximately $5,292,000 in the California Municipal Money Market Fund of the Northern Funds.

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the California Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Airport		7.1%
General		9.9
General Obligation		18.0
Higher Education		11.1
Power		8.1
School District		14.4
Water		10.6
All other sectors less than 5%		20.8
Total		100.0%

At September 30, 2013, the credit quality distribution for the California Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		0.5%
AA		62.4
A		34.7
Cash and Equivalents		1.4
SP1+/MIG1		0.3
SP1/MIG1		0.7
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.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Municipal Bonds		$–		$359,884	(1)		$–		$359,884
Investment Companies		5,292		–			–		5,292
Short-Term Investments		–		2,500			–		2,500
Total Investments		$5,292		$362,384			$–		$367,676

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 95.9%
California – 95.9%
Alameda County Joint Powers Authority Lease Revenue Bonds, Series A, Multiple Capital Projects, 4.00%, 12/1/24 (1)		$1,500		$1,552
Alameda County Water District Financing Authority System Revenue Refunding Bonds, 3.25%, 6/1/33		1,050		880
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		1,074
Anaheim Public Financing Authority Revenue Bonds, Electric System Distribution Facilities (NATL-RE Insured), 4.75%, 10/1/27		1,000		1,030
Bay Area Toll Authority Bridge Revenue Bonds, Series F-1, San Francisco Bay Area, 5.00%, 4/1/34		3,650		3,808
5.13%, 4/1/39		1,500		1,567
Brentwood Infrastructure Financing Authority Water Revenue Bonds, 5.75%, 7/1/38		3,595		3,804
Burlingame Financing Authority Storm Drainage Revenue Bonds, 3.00%, 7/1/32		500		392
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, 5.00%, 8/1/27		1,500		1,539
California State G.O. Unlimited Refunding Bonds, 5.00%, 9/1/20		5,000		5,937
4.50%, 10/1/29		2,000		2,023
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, 5.75%, 7/1/30		250		251
California State Public Works Board Lease Revenue Bonds, Series A, Department of General Services-Buildings 8 & 9, 6.00%, 4/1/25		1,400		1,634
California State Public Works Board Lease Revenue Refunding Bonds, Series B, Various Community College Project (AMBAC Insured), 5.63%, 3/1/16		940		944

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 95.9% – continued
California – 95.9% – continued
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 10/1/20		$5,000		$5,940
5.25%, 3/1/30		3,500		3,756
5.00%, 8/1/35		1,000		1,018
5.50%, 3/1/40		2,865		3,038
California Statewide Communities Development Authority Pollution Control Revenue Refunding Bonds, Southern California Edison Co., 1.90%, Mandatory Put 4/1/20		1,700		1,613
Chabot-Las Positas Community College District G.O. Unlimited Bonds, Series B, Election 2004 (AMBAC Insured), 5.00%, 8/1/30		850		940
Chabot-Las Positas Community College District G.O. Unlimited Refunding Bonds, 2016 Crossover, 4.00%, 8/1/23		2,600		2,825
5.00%, 8/1/26		1,000		1,127
Corona-Norco Unified School District G.O. Unlimited Bonds, Series C, Election 2006 (AGM Insured), 5.50%, 8/1/39		500		544
East Side Union High School District Santa Clara County G.O. Unlimited Refunding Bonds, 5.00%, 8/1/27		2,000		2,151
El Dorado Irrigation District COPS, Series A (Assured Guaranty Insured), 6.25%, 8/1/29		1,500		1,552
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election 2008, 5.38%, 8/1/44		3,500		3,760
Huntington Beach Union High School District G.O. Unlimited Bonds, Election 2004 (AGM Insured), Prerefunded, 5.00%, 8/1/14		750		779
Los Angeles Department of International Airports Revenue Bonds, Series D, 5.00%, 5/15/40		1,500		1,533
Los Angeles Department of International Airports Senior Revenue Bonds, Series A (AMT), Private Activity, 5.00%, 5/15/29		1,100		1,151
Los Angeles Harbor Department Revenue Bonds, Escrowed to Maturity, 7.60%, 10/1/18		25		29

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 95.9% – continued
California – 95.9% – continued
Marin County COPS, 4.25%, 8/1/34		$1,575		$1,537
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series C, 5.00%, 10/1/27		1,250		1,468
Midpeninsula Regional Open Space District Revenue Bonds, 5.25%, 9/1/34		600		620
5.50%, 9/1/41		2,500		2,602
Modesto Irrigation District Capital Improvements COPS, Series A, 5.75%, 10/1/29		1,500		1,649
6.00%, 10/1/39		2,000		2,173
Morgan Hill Unified School District G.O. Unlimited Bonds, Series A, Election of 2012, 4.00%, 8/1/42		1,000		869
Newport Mesa Unified School District G.O. Unlimited CABS, Election 2005, 3.42%, 8/1/33 (2)		10,000		3,776
Palomar Pomerado Health G.O. Unlimited Convertible CABS, Series A, Election of 2004 (Assured Guaranty Insured), 1.73%, 8/1/38 (2)		5,000		3,919
Placentia-Yorba Linda Unified School District G.O. Unlimited Bonds, Series B, Election 2002, Prerefunded, 5.50%, 8/1/14		1,500		1,566
Rio Hondo Community College District G.O. Unlimited Bonds, Series B, Election 2009, 5.50%, 8/1/30		1,605		1,791
Riverside County Transportation Commission Sales Limited TRB, Series A, 5.25%, 6/1/27		1,000		1,142
5.25%, 6/1/39		1,000		1,065
Riverside Public Financing Authority Local Measure A Sales Tax Revenue COPS, Riverside Pavement Rehabilitation Project (AGM Insured), 5.00%, 6/1/22		850		953
5.00%, 6/1/23		845		943
Ross Elementary School District G.O. Unlimited Bonds, Election 2006 (NATL-RE Insured), 5.25%, 8/1/27		850		883

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 95.9% – continued
California – 95.9% – continued
Sacramento Municipal Utility District Revenue Bonds, Series A, 5.00%, 8/15/37		$55		$57
San Bernardino City Unified School District G.O. Unlimited Bonds, Series A, Election of 2012 (AGM Insured), 4.00%, 8/1/33		1,000		895
4.00%, 8/1/35		1,000		875
4.00%, 8/1/36		1,000		866
San Diego County Water Authority COPS, Series 2008 A (AGM Insured), 5.00%, 5/1/38		2,000		2,081
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, 5.00%, 5/15/28		1,500		1,596
San Dieguito Union High School District G.O. Unlimited Bonds, Series A-2, Election of 2012, 4.00%, 8/1/38		1,000		909
San Francisco City & County International Airports Commission Revenue Refunding Bonds, Second Series D, 3.38%, 5/1/27		400		373
San Francisco State Building Authority Lease Revenue Bonds, Series A, Department of General Services Lease, 5.00%, 10/1/13		935		935
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, 5.25%, 3/1/31		2,075		2,234
San Mateo County Transit District Tax Revenue Refunding Bonds, Series A (NATL-RE Insured), 4.75%, 6/1/28		1,000		1,044
Santa Barbara Unified School District G.O. Unlimited Bonds, Series B, Election of 2010, Elementary School, 5.00%, 8/1/38		2,000		2,058
Santa Clara Electric Revenue Refunding Bonds, Series A, 6.00%, 7/1/31		1,195		1,336
Santa Rosa Wastewater Revenue Refunding Bonds, Series A, 5.25%, 9/1/16		25		27

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 95.9% – continued
California – 95.9% – continued
Sequoia Union High School District G.O. Unlimited Bonds , Series C-1, Election 2008, 6.00%, 7/1/43		$2,025		$2,278
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, 6.00%, 7/1/27		2,520		2,939
Torrance Hospital Revenue Bonds, Series A, Torrance Memorial Medical Center, 6.00%, 6/1/22		500		502
University of California General Revenue Bonds, Series AK, 5.00%, Mandatory Put 5/15/23		3,000		3,504
University of California General Revenue Bonds, Series J (AGM Insured), 4.50%, 5/15/31 (1)		1,750		1,765
University of California Regents Medical Center Pooled Revenue Bonds, Series A (NATL-RE Insured), 4.50%, 5/15/37		1,500		1,420
Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election 2008, 5.25%, 8/1/27		2,500		2,737
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002, 5.50%, 8/1/33		4,065		4,510
Western Riverside County Trust & Wastewater Finance Authority Revenue Bonds, Municipal Water District Improvement Project (Assured Guaranty Insured), 5.13%, 9/1/29		2,000		2,102
William S. Hart Union High School District G.O. Unlimited Bonds, Series C, Election 2008, 4.00%, 8/1/38		2,000		1,767
				123,957
Total Municipal Bonds
(Cost $117,179)				123,957
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 4.5%
Northern Funds - California Municipal Money Market Fund, 0.01% (3)(4)		5,825,573		$5,826
Total Investment Companies
(Cost $5,826)				5,826
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 3.1%
California School Cash Reserve Program Authority Revenue Notes VRDB, Series DD, 2.00%, 12/31/13		$2,000		$2,008
California School Cash Reserve Program Authority Revenue Notes VRDB, Series EE, 2.00%, 12/31/13		2,000		2,008
Total Short-Term Investments
(Cost $4,015)				4,016
Total Investments – 103.5%
(Cost $127,020)				133,799
Liabilities less Other Assets – (3.5)%				(4,586	)
NET ASSETS – 100.0%				$129,213

(1) When-Issued Security.

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

(3) At March 31, 2013, the value of the Fund’s investment in the California Municipal Money Market Fund of the Northern Funds was approximately $939,000 with the net purchases of approximately $4,887,000 during the six months ended September 30, 2013.

(4) Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to the California Municipal Money Market Fund.

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the California Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General		15.2%
General Obligation		25.7
Higher Education		7.6
School District		20.8
Water		6.1
All other sectors less than 5%		24.6
Total		100.0%

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the credit quality distribution for the California Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AA		55.3%
A		37.3
Cash and Equivalents		4.4
SP1/MIG1		3.0
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Municipal Bonds		$–		$123,957	(1)		$–		$123,957
Investment Companies		5,826		–			–		5,826
Short-Term Investments		–		4,016			–		4,016
Total Investments		$5,826		$127,973			$–		$133,799

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0%
Alabama – 2.1%
Alabama State Port Authority Docks Facilities Revenue Bonds, 6.00%, 10/1/40		$5,000		$5,525
Arizona – 2.8%
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		4,306
Pima County IDA Revenue Bonds, Tucson Electric Power Co., 5.75%, 9/1/29		3,000		3,035
				7,341
California – 9.2%
California State Municipal Finance Authority COPS Revenue Bonds, Community Hospitals of Central California, 5.50%, 2/1/39		4,000		3,862
California State Municipal Finance Authority Revenue Bonds, Series A, University of La Verne, 6.13%, 6/1/30		3,300		3,570
6.25%, 6/1/40		1,000		1,077
California Statewide Communities Development Authority Revenue Bonds, California Baptist University, 7.25%, 11/1/31		2,000		2,256
California Statewide Communities Development Authority Revenue Bonds, Series A, California Baptist University, 5.50%, 11/1/38		2,000		1,840
Golden State Tobacco Securitization Corp. Tobacco Settlement Asset Backed Revenue Bonds, Senior Series A-1, 5.13%, 6/1/47		2,000		1,391
5.75%, 6/1/47		2,000		1,531
San Francisco City & County Airports Commission Revenue Bonds, Series E, 6.00%, 5/1/39		5,000		5,609
Tobacco Securitization Authority of Southern California Tobacco Settlement Revenue Bonds, Senior Series A1, 5.00%, 6/1/37		4,000		3,003
				24,139

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0% – continued
Colorado – 4.8%
Denver City & County Airport System Revenue Bonds, Series A, 5.25%, 11/15/36		$5,000		$5,158
Prairie Center Metropolitan District No. 3 Limited Property Tax Supported G.O. Limited Bonds, Series A, 5.40%, 12/15/31		4,000		3,416
Regional Transportation District Private Activity Revenue Bonds, Denver Transportation Partners, 6.00%, 1/15/41		4,000		4,028
				12,602
Connecticut – 1.0%
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series G, Sacred Heart University, 5.13%, 7/1/26		1,250		1,280
5.38%, 7/1/31		1,250		1,286
				2,566
Delaware – 0.8%
Delaware State EDA Gas Facilities Revenue Refunding Bonds, Delmarva Power, 5.40%, 2/1/31		2,000		2,112
District of Columbia – 3.1%
District of Columbia Revenue Bonds, Cesar Chavez Charter Schools, 7.88%, 11/15/40		5,265		5,940
District of Columbia Student Dormitory Revenue Bonds, Provident Group - Howard Properties LLC, 5.00%, 10/1/45		2,500		2,140
				8,080
Florida – 4.3%
Broward County Airport Exempt Facility Revenue Bonds (AMT), Learjet, Inc. Project, 7.50%, 11/1/20		5,430		5,798
Capital Trust Agency Air Cargo Revenue Refunding Bonds, Series A, Aero Miami FX, 5.35%, 7/1/29		3,775		3,860
Jacksonville Economic Development Commission Health Care Facilities Revenue Refunding Bonds, Series A, Proton Therapy Institute, 6.00%, 9/1/17		1,555		1,679

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0% – continued
Florida – 4.3% – continued
Sterling Hill Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B, 5.50%, 11/1/10 (1)		$155		$ –
				11,337
Georgia – 2.1%
Atlanta Water & Wastewater Revenue Bonds, Series A, 6.25%, 11/1/39		5,000		5,562
Illinois – 5.9%
Illinois State Finance Authority Revenue Bonds, Series A, Provena Health, 7.75%, 8/15/34		3,500		4,208
Illinois State Finance Authority Revenue Bonds, Series A, Three Crowns Park Plaza, 5.88%, 2/15/38		4,000		3,804
Illinois State Finance Authority Revenue Bonds, Silver Cross & Medical Centers, 6.88%, 8/15/38		1,000		1,079
7.00%, 8/15/44		2,000		2,165
Railsplitter Tobacco Settlement Authority Revenue Bonds, 5.50%, 6/1/23		1,000		1,083
6.00%, 6/1/28		3,000		3,195
				15,534
Indiana – 5.2%
Indiana State Finance Authority Educational Facilities Revenue Bonds, Marian University Project, 6.50%, 9/15/30		3,000		3,132
6.38%, 9/15/41		2,000		2,038
Indiana State Finance Authority Environmental Variable Revenue Bonds, Series B, Duke Energy Project, 6.00%, 8/1/39		2,000		2,139
Indiana State Municipal Power Agency Revenue Bonds, Series B, 6.00%, 1/1/39		2,000		2,224
North Manchester Revenue Bonds, Series A, Peabody Retirement Community Project, 7.25%, 7/1/33 (2)		750		210
Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., 5.70%, 9/1/37 (3)(4)		1,000		1,001

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0% – continued
Indiana – 5.2% – continued
8.00%, 9/1/41		$2,500		$2,865
				13,609
Louisiana – 5.4%
Louisiana State Gas & Fuels TRB, Series B, Second Lien, 5.00%, 5/1/39		5,000		5,193
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Westlake Chemical Corp., 6.50%, 8/1/29		2,000		2,197
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Woman’s Hospital Foundation, 5.88%, 10/1/40		3,000		3,128
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A-1, Westlake Chemical Corp., 6.50%, 11/1/35		2,000		2,135
Louisiana State Public Facilities Authority Revenue Bonds, Belle Chasse Educational Foundation Project, 6.75%, 5/1/41		1,250		1,342
				13,995
Maine – 2.1%
Maine State Health & Higher Educational Facilities Authority Revenue Bonds, Maine General Medical Center, 7.50%, 7/1/32		2,000		2,279
6.75%, 7/1/41		3,000		3,230
				5,509
Maryland – 3.2%
Anne Arundel County Special Obligation Tax Allocation Bonds, National Business Park-North Project, 6.10%, 7/1/40		4,335		4,512
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Adventist Healthcare, 6.25%, 1/1/31		1,500		1,658
6.13%, 1/1/36		2,000		2,161
				8,331

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0% – continued
Massachusetts – 2.2%
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series A, 5.00%, 7/1/28		$5,000		$5,648
Michigan – 1.5%
Royal Oak Hospital Finance Authority Revenue Bonds, William Beaumont Hospital, 8.25%, 9/1/39		2,000		2,402
Royal Oak Hospital Finance Authority Revenue Refunding Bonds, Series W, William Beaumont Hospital, 6.00%, 8/1/39		1,500		1,578
				3,980
Minnesota – 1.2%
Rochester Health Care & Housing Revenue Refunding Bonds, Series A, Samaritan Bethany, 7.38%, 12/1/41		3,000		3,179
Mississippi – 1.0%
Warren County Gulf Opportunity Zone Revenue Bonds, Series A, International Paper Co., 5.80%, 5/1/34		2,530		2,596
Missouri – 2.9%
Grundy County IDA Health Facilities Revenue Bonds, Wright Memorial Hospital, 6.45%, 9/1/29		2,530		2,705
6.75%, 9/1/34		1,750		1,853
St. Louis County IDA Senior Living Facilities Revenue Bonds, Series A, St. Andrews Resources for Seniors, 6.38%, 12/1/41		3,005		3,007
				7,565
New Jersey – 3.6%
New Jersey State EDA Revenue Bonds, MSU Student Housing Project - Provident Group, 5.88%, 6/1/42		3,000		3,145
New Jersey State EDA Revenue Bonds, Cigarette Tax, Prerefunded, 5.75%, 6/15/14		3,000		3,117
New Jersey State Health Care Facilities Financing Authority Revenue Bonds, St. Joseph’s Healthcare System, 6.63%, 7/1/38		3,000		3,002
				9,264

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0% – continued
New York – 0.0%
New York State Liberty Development Corp. Revenue Bonds, Series A, National Sports Museum Project, 6.13%, 2/15/19 (1)		$2,200		$–
North Carolina – 2.8%
North Carolina State Capital Facilities Finance Agency Revenue Bonds, Series B, Duke University Project, 5.00%, 10/1/38		5,000		5,210
North Carolina State Medical Care Commission Health Care Facilities First Mortgage Revenue Bonds, Series A, Deerfield Community, 6.13%, 11/1/38		2,000		2,075
				7,285
Ohio – 8.4%
Lucas County Health Care Facilities Revenue Refunding & Improvement Bonds, Series A, Lutheran Homes, 7.00%, 11/1/45		5,000		5,217
Ohio State Air Quality Development Authority Revenue Bonds, Series E, Ohio Valley Electric Corp., 5.63%, 10/1/19		3,000		3,252
Ohio State Air Quality Development Authority Revenue Refunding Bonds, Series B, Columbus Southern Power Co., 5.80%, 12/1/38		2,000		2,070
Ohio State Fresh Water Development Authority Revenue Bonds, Series A, 5.00%, 12/1/21		5,690		6,748
Toledo-Lucas County Port Authority Revenue Refunding Bonds, CSX Transportation, Inc. Project, 6.45%, 12/15/21		4,000		4,747
				22,034
Pennsylvania – 4.2%
Allegheny County Redevelopment Authority Tax Allocation Bonds, Pittsburgh Mills Project, 5.60%, 7/1/23		2,000		1,943
Butler County Hospital Authority Revenue Bonds, Butler Health System Project, 7.13%, 7/1/29		3,000		3,531
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Edinboro University Foundation, 5.88%, 7/1/38		1,000		971
6.00%, 7/1/43		2,500		2,432

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0% – continued
Pennsylvania – 4.2% – continued
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Shippensburg University, 6.25%, 10/1/43		$2,000		$2,117
				10,994
Puerto Rico – 1.0%
Puerto Rico Sales Tax Financing Corp., Revenue Bonds, Series C, 5.00%, 8/1/40		3,000		2,535
Rhode Island – 1.2%
Tobacco Settlement Financing Corp. Asset Backed Revenue Bonds, Series A, 6.25%, 6/1/42		3,000		2,997
Tennessee – 0.0%
Sumner County Health Educational & Housing Facilities Board Hospital Revenue Refunding & Improvement Bonds, Series A, Regional Health Systems, Inc., 5.50%, 11/1/37 (2)		107		1
Texas – 11.4%
Dallas County Flood Control District G.O. Unlimited Refunding Bonds, 7.25%, 4/1/32		1,000		1,002
HFDC of Central Texas, Inc. Retirement Facilities Revenue Bonds, Series A, 5.75%, 11/1/36		3,000		3,005
San Antonio Electric & Gas Revenue Bonds, Junior Lien, 5.00%, 2/1/43		3,000		3,113
Texas State PFA Charter School Finance Corp. Education Revenue Bonds, Series A, Cosmos Foundation, Inc., 6.20%, 2/15/40		3,500		3,562
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, LBJ Infrastructure, 7.00%, 6/30/40		5,000		5,473
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, NTE Mobility, 6.88%, 12/31/39		4,000		4,344
Travis County Health Facilities Development Corp. Revenue Bonds, Westminster Manor Project, 7.00%, 11/1/30		1,000		1,097
7.13%, 11/1/40		2,000		2,173

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.0% – continued
Texas – 11.4% – continued
University of Texas Permanent University Fund Revenue Refunding Bonds, Series B, 5.25%, 7/1/28		$5,000		$5,975
				29,744
Washington – 2.6%
Pend Oreille County Public Utility District No. 1 Box Canyon Revenue Bonds, 5.25%, 1/1/41		2,500		2,538
Washington State Health Care Facilities Authority Revenue Bonds, Central Washington Health Services, 7.00%, 7/1/39		4,000		4,366
				6,904
Total Municipal Bonds
(Cost $239,652)				250,968
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 0.8%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (5)(6)		1,952,837		$1,953
Total Investment Companies
(Cost $1,953)				1,953
Total Investments – 96.8%
(Cost $241,605)				252,921
Other Assets less Liabilities – 3.2%				8,447
NET ASSETS – 100.0%				$261,368

(1) Level 3 asset that is worthless, bankrupt or has been delisted.

(2) Issuer has defaulted on terms of debt obligation.

(3) Restricted security that has been deemed illiquid. At September 30, 2013, the value of this restricted illiquid security amounted to approximately $1,001,000 or 0.4% of net assets. Additional information on the restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., 5.70%, 9/1/37	7/25/08		$861

(4) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

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.

(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, 2013, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $3,106,000 with net sales of approximately $1,153,000 during the six months ended September 30, 2013.

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the High Yield Municipal Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Medical		17.1%
Development		13.7
Higher Education		13.5
General		10.4
Transportation		7.7
Nursing Homes		7.4
Airport		6.6
Education		5.3
Tobacco		5.3
All other sectors less than 5%		13.0
Total		100.0%

At September 30, 2013, the credit quality distribution for the High Yield Municipal Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		6.3%
AA		8.6
A		10.8
BBB		46.4
BB		11.5
B		2.3
Not rated		13.3
Cash and Equivalents		0.8
Total		100.0%

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

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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Municipal Bonds		$–		$250,968	(1)		$–		$250,968
Investment Companies		1,953		–			–		1,953
Total Investments		$1,953		$250,968			$–		$252,921

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9%
Alabama – 0.6%
University of Alabama General Revenue Refunding Bonds, Series A, 5.00%, 7/1/22		$5,875		$6,996
5.00%, 7/1/25		7,615		8,701
				15,697
Arizona – 4.0%
Arizona State School Facilities Board COPS, 5.25%, 9/1/23		10,000		10,931
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area, 5.00%, 7/1/15		5,000		5,406
5.25%, 7/1/20		10,000		11,790
Arizona State Transportation Board Highway Revenue Bonds, Subseries A, 5.00%, 7/1/28		10,000		11,058
Arizona State Water Infrastructure Finance Authority Revenue Refunding Bonds, Series A, 5.00%, 10/1/22		6,750		8,067
Maricopa County Unified School District No. 48 Scottsdale G.O. Unlimited Refunding Bonds, 5.00%, 7/1/21		5,000		5,923
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		4,757
Mesa Street & Highway Revenue Refunding Bonds, 5.00%, 7/1/24		3,500		3,977
Mesa Utility System Revenue Refunding Bonds (NATL Insured), 5.00%, 7/1/19		6,500		7,538
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien, 5.00%, 7/1/22		3,000		3,389
Phoenix Civic Improvement Corp. Transportation Excise TRB, 3.00%, 7/1/19		5,000		5,290
Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds, Junior Lien, 5.00%, 7/1/25		5,000		5,656
Phoenix Civic Plaza Improvement Corp. Excise TRB, Subseries A (BHAC-CR FGIC Insured), 5.00%, 7/1/41		5,000		5,052

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Arizona – 4.0% – continued
Scottsdale Preservation Authority Excise Tax Revenue Refunding Bonds, 5.25%, 7/1/24		$5,990		$6,773
Tucson G.O. Unlimited Bonds, Series A, 4.00%, 7/1/25		5,000		5,194
				100,801
California – 5.4%
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, 5.00%, 8/1/27		5,000		5,131
California State Educational Facilities Authority Revenue Bonds, Stanford University, 5.25%, 4/1/40		3,180		3,768
California State G.O. Unlimited Bonds, Series 2007 (AMBAC Insured), Unrefunded Balance, 5.00%, 10/1/18		75		75
California State G.O. Unlimited Refunding Bonds, 5.00%, 9/1/20		1,000		1,188
5.00%, 10/1/22		10,000		11,764
5.25%, 9/1/25		5,000		5,682
5.00%, 10/1/27		5,000		5,508
6.25%, 11/1/34		5,000		5,846
California State Health Facilities Financing Authority Revenue Bonds, Series A, St. Joseph Health System, 5.00%, 7/1/28		5,000		5,297
California State Various G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, 5.75%, 5/1/30		80		80
California State Various Purpose G.O. Unlimited Refunding Bonds, 5.00%, 9/1/31		10,000		10,643
Carlsbad Unified School District G.O. Unlimited Convertible CABS, Series C, Election 2006, 2.59%, 8/1/35 (1)		11,850		6,421
Contra Costa Transportation Authority Sales TRB, Series B, 5.00%, 3/1/25		1,750		1,994
East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series B, 5.00%, 6/1/22		5,000		6,009

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
California – 5.4% – continued
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), 5.00%, 5/15/21		$1,000		$1,062
Los Angeles County Sanitation Districts Financing Authority Revenue Bonds, Series A, Capital Project (AGM Insured), Prerefunded, 5.00%, 10/1/13		4,000		4,001
Los Angeles Department of Airports Revenue Bonds, Series A, 5.25%, 5/15/22		5,000		5,672
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/14		6,205		6,478
Los Angeles G.O. Unlimited Refunding Bonds, Series B, 5.00%, 9/1/20		2,555		3,044
Metropolitan Water District of Southern California State Revenue Bonds, Series A, 5.00%, 7/1/32		5,000		5,314
San Diego Community College District G.O. Unlimited CABS, Election of 2006, 3.73%, 8/1/28 (1)		4,145		1,875
San Francisco City & County Airports Commission Revenue Bonds, Series E, 5.25%, 5/1/32		2,500		2,676
San Francisco City & County Common International Airport Revenue Bonds, Second Series A (AMT), 5.50%, 5/1/27		2,000		2,153
San Mateo Union High School District G.O. Unlimited Capital Appreciation BANS, 1.30%, 2/15/15 (1)		3,250		3,227
Sequoia Union High School District G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 7/1/22		1,100		1,160
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, 6.00%, 7/1/27		5,000		5,831
University of California General Revenue Bonds, Series AF, 5.00%, 5/15/29		5,000		5,509

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
California – 5.4% – continued
University of California General Revenue Bonds, Series AK, 5.00%, Mandatory Put 5/15/23		$7,000		$8,175
University of California General Revenue Bonds, Series J (AGM Insured), 4.50%, 5/15/31 (2)		2,700		2,723
University of California General Revenue Bonds, Series Q, 5.25%, 5/15/27		2,500		2,796
University of California General Revenue Bonds, Series U, 5.00%, 5/15/22		5,000		5,829
				136,931
Colorado – 1.4%
Colorado State Board of Governors University Enterprise System Revenue Refunding Bonds, Series A (State Higher Education Intercept Program), 5.00%, 3/1/43		5,000		5,189
Denver City & County Airport System Revenue Bonds, Series B, 5.00%, 11/15/25		5,000		5,489
Denver City & County Airport System Revenue Bonds, Subseries B, 5.25%, 11/15/28		1,500		1,617
5.25%, 11/15/29		1,740		1,859
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 6.00%, 9/1/23		6,550		7,694
Denver City & County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (NATL Insured State Aid Withholding), 5.50%, 12/1/22		5,000		6,118
Metro Wastewater Reclamation District Sewer Revenue Bonds, Series A, 5.00%, 4/1/21		2,500		2,974
Regional Transportation District Sales Tax Revenue Refunding Bonds, Series A, Fastracks Project, 5.00%, 11/1/28		5,000		5,721
				36,661
Connecticut – 2.0%
Connecticut State G.O. Unlimited Bonds, Series B, 5.00%, 5/15/22		2,000		2,329

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Connecticut – 2.0% – continued
Connecticut State G.O. Unlimited Bonds, Series D, 5.00%, 11/1/23		$5,000		$5,771
5.00%, 11/1/25		10,000		11,422
Connecticut State G.O. Unlimited Refunding Bonds, Series B (NATL-RE Insured), 5.00%, 6/1/15		5,000		5,165
Connecticut State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 6/1/21		2,500		2,959
Connecticut State General Revenue Refunding Bonds, Series B, State Revolving Fund, 5.00%, 7/1/24		1,920		2,246
Connecticut State Housing Mortgage Finance Authority Program Revenue Bonds, Subseries D-1, 0.75%, 5/15/14		6,350		6,364
Connecticut State Special Tax Obligation Revenue Bonds, Transportation Infrastructure, 5.00%, 1/1/29		10,000		10,977
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series B, 3.00%, 12/1/22		2,725		2,757
				49,990
Delaware – 0.5%
Delaware State G.O. Unlimited Bonds, 5.00%, 7/1/19		5,000		5,940
5.00%, 7/1/23		5,530		6,410
				12,350
District of Columbia – 1.2%
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, 5.25%, 10/1/29		1,000		1,097
6.00%, 10/1/35		5,000		5,577
5.50%, 10/1/39		10,500		11,211
Metropolitan Washington Airports Authority System Revenue Bonds, Series C (AMT), 5.00%, 10/1/20		3,000		3,469
5.00%, 10/1/26		1,500		1,604

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
District of Columbia – 1.2% – continued
Metropolitan Washington Airports Authority System Revenue Refunding Bonds, Series A (AMT), 5.00%, 10/1/28		$3,000		$3,162
5.00%, 10/1/29		4,085		4,275
				30,395
Florida – 3.7%
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/24		1,000		1,104
5.00%, 9/1/25		1,000		1,091
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), 5.00%, 9/1/23		2,500		2,687
Florida State Board of Public Education G.O. Unlimited Bonds, Series A, Capital Outlay, 5.25%, 6/1/28		11,135		12,405
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series C, Capital Outlay, 5.00%, 6/1/22		10,000		11,932
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series D, 5.00%, 6/1/24		5,000		5,750
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, 5.25%, 7/1/37		12,475		13,525
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 5.00%, 7/1/15		1,000		1,075
Florida State Ports Financing Commission Revenue Refunding Bonds, Series B (AMT), State Transportation Trust Fund, 5.38%, 10/1/29		3,395		3,690
Florida State Turnpike Authority Revenue Bonds, Series B, 5.00%, 7/1/22		3,000		3,545
Gainesville Utilities System Revenue Bonds, Series A, Prerefunded, 5.25%, 10/1/13		1,120		1,120
5.25%, 10/1/13		1,065		1,065
Greater Orlando Aviation Authority Airport Facilities Revenue Refunding Bonds, Series A (AMT) (AGM Insured), 5.00%, 10/1/16		400		447

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Florida – 3.7% – continued
Hillsborough County Aviation Authority Revenue Refunding Bonds, Series A (AMT), Tampa International Airport (NATL-RE Insured), 5.00%, 10/1/23		$4,245		$4,559
JEA Electric System Revenue Bonds, Subseries) D, 4.00%, 10/1/25		1,000		1,010
Marco Island Utility System Revenue Bonds (NATL-RE Insured), Prerefunded, 5.25%, 10/1/13		2,520		2,520
Miami-Dade County Expressway Authority Toll System Revenue Bonds, Series B (NATL Insured), Prerefunded, 5.25%, 7/1/14		2,525		2,621
Miami-Dade County Water & Sewer System Revenue Refunding Bonds, Series B (AGM Insured), 5.25%, 10/1/20		3,000		3,529
5.25%, 10/1/22		2,500		2,928
Palm Coast Utility System Revenue Bonds (NATL-RE Insured), Prerefunded, 5.25%, 10/1/13		1,000		1,000
Reedy Creek Improvement District G.O. Limited Bonds, Series A, 5.25%, 6/1/29		5,000		5,476
5.25%, 6/1/30		5,000		5,434
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15		5,815		5,998
				94,511
Georgia – 3.2%
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, 5.50%, 1/1/38		10,000		10,950
Georgia State G.O. Unlimited Bonds, Series) A, 5.00%, 7/1/22		5,125		6,189
Georgia State G.O. Unlimited Bonds, Series D, 5.00%, 2/1/25		1,320		1,557
5.00%, 2/1/26		10,000		11,640
Georgia State G.O. Unlimited Bonds, Series) I, 4.00%, 11/1/25		5,000		5,358
Georgia State G.O. Unlimited Refunding Bonds, Series C, 4.00%, 10/1/22		5,000		5,618

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Georgia – 3.2% – continued
Georgia State G.O. Unlimited Refunding Bonds, Series E-2, 5.00%, 9/1/21		$12,725		$15,329
Georgia State G.O. Unlimited Refunding Bonds, Series I, 5.00%, 7/1/20		13,500		16,193
5.00%, 7/1/21		1,100		1,324
Georgia State G.O. Unlimited Refunding Bonds, Series J-2, 4.50%, 11/1/22		5,870		6,742
				80,900
Hawaii – 0.3%
Hawaii State Airports System Revenue Bonds, Series A, 5.25%, 7/1/29		2,000		2,122
Hawaii State G.O. Unlimited Refunding Bonds, Series EF, 5.00%, 11/1/21		5,500		6,538
				8,660
Idaho – 0.1%
Idaho State Bond Bank Authority Revenue Bonds, Series B, 5.00%, 9/15/38		1,255		1,335
Illinois – 2.3%
Chicago Midway Airport Revenue Bonds, Series B (AGM Insured), 5.38%, 1/1/18		2,625		2,635
5.38%, 1/1/19		2,765		2,776
5.25%, 1/1/20		2,915		2,926
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 B (AMT), Passenger Facilities Charge, 5.00%, 1/1/26		2,500		2,596
Chicago Sales TRB, Series A, 5.25%, 1/1/38		6,100		6,339
Illinois State Build Sales TRB, 5.00%, 6/15/19		5,000		5,732
Illinois State Educational Facilities Authority Adjustable Medium Term Revenue Bonds, Field Museum, 4.60%, Mandatory Put 11/1/15		4,250		4,543
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 5.25%, 3/1/40		2,500		2,571

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Illinois – 2.3% – continued
Illinois State Municipal Electric Agency Power Supply Revenue Bonds (NATL Insured), 5.00%, 2/1/25		$2,000		$2,149
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL-RE-IBC FGIC Insured), 5.25%, 2/1/27		1,830		1,951
Illinois State Toll Highway Authority Senior Priority Revenue Bonds, Series A (AGM Insured), Prerefunded, 5.00%, 7/1/15		5,000		5,407
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series B, 5.00%, 6/15/19		2,540		2,713
Lake County Community Consolidated School District No. 46 Grayslake G.O. Unlimited Bonds (AGM Insured), Prerefunded, 5.13%, 11/1/15		805		884
Lake County Community Consolidated School District No. 46 Grayslake G.O. Unlimited Bonds (AGM Insured), Unrefunded Balance, 5.13%, 11/1/24		195		209
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series A, McCormick Place Expansion (NATL Insured), 5.50%, 6/15/29		2,000		2,209
Winnebago County Public Safety Sales Tax G.O. Unlimited Refunding Bonds, Series A, 5.00%, 12/30/20		2,700		3,124
5.00%, 12/30/24		6,040		6,755
				57,524
Indiana – 1.2%
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority, 5.25%, 10/1/31		5,750		6,201
5.25%, 10/1/38		5,980		6,258
Indiana State Municipal Power Agency Revenue Bonds, Series A, Power Supply System (AMBAC Insured), 5.00%, 1/1/24		13,060		14,093
Merrillville Multi School Building Corp. First Mortgage Revenue Bonds (State Aid Withholding), 5.25%, 7/15/26		1,000		1,116

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Indiana – 1.2% – continued
Porter County Jail Building Corp. First Mortgage Revenue Refunding Bonds (AGM Insured), 5.50%, 7/10/21		$1,500		$1,723
5.50%, 1/10/24		1,135		1,287
				30,678
Iowa – 0.1%
Ankeny G.O. Unlimited Bond Anticipation Project Notes, Series C, 1.00%, 6/1/14		2,000		2,001
Kansas – 0.5%
Johnson County Unified School District No. 512 Shawnee Mission G.O. Unlimited Refunding Bonds, Series A, 3.00%, 10/1/15		4,145		4,354
Kansas State Department of Transportation Highway Revenue Refunding Bonds, Series B, 5.00%, 9/1/22		2,500		3,002
Wichita G.O. Unlimited Sales Tax Revenue Refunding Bonds, Series E, 4.00%, 10/1/16		1,505		1,652
Wichita Water & Sewer Utility Revenue Bonds (NATL Insured), Prerefunded, 5.25%, 10/1/13		4,000		4,001
				13,009
Louisiana – 0.8%
Bossier Parishwide School District G.O. Unlimited Bonds, 3.00%, 3/1/30		1,695		1,418
Louisiana State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 7/15/21		10,000		11,871
Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series A-1, 5.00%, 5/1/25		5,000		5,723
				19,012
Maryland – 4.9%
Frederick County Public Facilities G.O. Unlimited Bonds, Series A, 5.00%, 8/1/20		2,300		2,741
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series, 5.00%, 3/1/15		1,500		1,601
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series B, 4.00%, 3/15/21		10,000		11,078

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Maryland – 4.9% – continued
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series A, 5.00%, 8/1/20		$10,000		$12,005
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Series 2013-1, 5.00%, 3/1/22		5,000		5,925
5.00%, 3/1/24		10,000		11,583
Maryland State & Local Facilities Loan G.O. Unlimited Refunding Bonds, Second Series, 4.50%, 8/1/20		10,000		11,609
Maryland State Department of Transportation Consolidated Revenue Bonds, 5.00%, 6/1/21		8,630		10,201
Maryland State G.O. Unlimited Bonds, First Series B, 4.50%, 3/15/24		10,000		11,164
Maryland State G.O. Unlimited Bonds, Series B, 5.00%, 8/1/21		10,000		11,683
Maryland State G.O. Unlimited Refunding Bonds, First Series B, 4.50%, 8/1/21		10,000		11,587
Montgomery County G.O. Unlimited Bonds, Series A, Consolidated Public Improvement, 5.00%, 11/1/21		5,750		6,734
4.00%, 11/1/22		5,000		5,514
Washington Suburban Sanitary Consolidated Public Improvement G.O. Unlimited Bonds, 5.00%, 6/1/21		6,500		7,817
Washington Suburban Sanitary District Public Improvement G.O. Unlimited Refunding Bonds, 2.25%, 6/1/26		2,500		2,143
				123,385
Massachusetts – 6.0%
Massachusetts Bay Transportation Assessment Authority Revenue Bonds, Series A, 5.25%, 7/1/34		500		543
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series A, 5.00%, 7/1/31		4,580		5,065
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D, 5.00%, 10/1/23		10,000		11,667

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Massachusetts – 6.0% – continued
Massachusetts State Development Finance Agency Revenue Bonds, Series B-1, Harvard University, 5.00%, 10/15/28		$10,000		$11,255
Massachusetts State G.O. Limited Bonds, Series A, 5.00%, 4/1/29		8,750		9,549
Massachusetts State G.O. Limited Refunding Bonds, Series B, 5.25%, 8/1/21		2,500		3,016
5.00%, 8/1/23		2,855		3,403
Massachusetts State G.O. Limited Refunding Bonds, Series B (AGM Insured), 5.25%, 9/1/25		500		601
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series J1, Partners Healthcare System, 5.25%, 7/1/29		5,000		5,297
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series M, Tufts University, 5.25%, 2/15/26		1,250		1,459
Massachusetts State School Building Authority Sales Tax Revenue Refunding Bonds, Senior Series A, 5.00%, 8/15/21		20,000		23,751
5.00%, 8/15/22		5,000		5,946
Massachusetts State School Building Authority Sales Tax Revenue Refunding Bonds, Senior Series B, 5.00%, 8/15/29		15,000		16,535
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, 5.00%, 8/15/15		10,000		10,867
5.00%, 8/15/15		1,290		1,402
Massachusetts State School Building Authority Sales TRB, Series A (AMBAC Insured), 5.00%, 8/15/37		5,000		5,184
Massachusetts State School Building Authority Sales TRB, Series A-2012-2 (AGM Insured), Prerefunded, 5.00%, 8/15/15		8,395		9,123
Massachusetts State Special Obligation Revenue Bonds, Series A, Consolidated Loan (AGM Insured), 5.50%, 6/1/18		500		591
5.50%, 6/1/21		500		609

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Massachusetts – 6.0% – continued
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Subseries A, New Bedford Program (NATL Insured), 4.75%, 2/1/26		$1,555		$1,560
Massachusetts State Water Resources Authority General Revenue Bonds, Series J (AGM G.O. of Authority Insured), 5.50%, 8/1/22		3,300		4,053
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (AGM Insured), 5.25%, 8/1/29		7,250		8,278
5.25%, 8/1/30		2,695		3,058
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (G.O. of Authority Insured), 5.00%, 8/1/26		5,000		5,642
Massachusetts State Water Resources Authority Revenue Bonds, Series A (G.O. of Authority Insured) Escrowed to Maturity, 6.50%, 7/15/19		1,670		1,929
				150,383
Michigan – 1.8%
Caledonia Community Schools G.O. Unlimited Refunding Bonds (NATL-RE Q-SBLF Insured), 5.00%, 5/1/20		1,140		1,200
Grand Rapids Sanitary Sewer System Revenue Refunding Bonds, 5.00%, 1/1/34		2,335		2,475
Michigan State Building Authority Revenue Refunding Bonds, Series II-A, Facilities Program, 5.00%, 10/15/27		10,000		10,502
Michigan State Environmental Program G.O. Unlimited Refunding Bonds, 5.00%, 11/1/19		5,000		5,818
3.00%, 11/1/20		10,000		10,385
Michigan State Finance Authority Revenue Refunding Bonds, State Revolving Fund, 5.00%, 10/1/21		3,035		3,568
5.00%, 10/1/25		3,970		4,453
Michigan State Municipal Bond Authority Revenue Bonds, Clean Water Fund Prerefunded, 4.75%, 10/1/14		4,440		4,641

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Michigan – 1.8% – continued
Michigan State Municipal Bond Authority Revenue Bonds, Clean Water Fund Unrefunded Balance, 4.75%, 10/1/23		$345		$358
Michigan State Trunk Line Revenue Refunding Bonds, 5.00%, 11/15/21		2,500		2,880
				46,280
Minnesota – 0.6%
Minneapolis-St. Paul Metropolitan Airports Commission Revenue Refunding Bonds, Senior Series B (AMT), 5.00%, 1/1/22		2,500		2,761
Minnesota State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/20		5,000		5,991
Minnesota State Various Purpose G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		5,545		6,592
				15,344
Mississippi – 0.7%
Mississippi State G.O. Unlimited Bonds, Series F, 5.25%, 10/1/23		5,090		6,141
Mississippi State G.O. Unlimited Refunding Bonds, Series F, 5.00%, 11/1/21		8,705		10,347
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), 5.40%, 6/1/38		20		20
				16,508
Missouri – 0.5%
Metropolitan St. Louis Sewer District Wastewater System Refunding Revenue Bonds, Series B, 5.00%, 5/1/29		5,000		5,544
Missouri State Board of Public Buildings Special Obligation Revenue Refunding Bonds, Series A, 2.00%, 10/1/22		500		465
Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, Series A, State Revolving Funds, 5.00%, 1/1/22		5,060		5,848
				11,857

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Nebraska – 0.3%
Lincoln Electric System Revenue Bonds, Prerefunded, 5.00%, 9/1/15		$5,500		$5,982
Nebraska State Public Power District General Revenue Bonds, Series B, 5.00%, 1/1/23		1,000		1,158
				7,140
Nevada – 0.6%
Nevada State Capital Improvement & Cultural Affairs G.O. Limited Bonds, Series C, 5.00%, 6/1/21		8,000		8,905
Washoe County Highway Motor Vehicle Fuel TRB, 4.75%, 2/1/21		3,400		3,739
Washoe County School District G.O. Limited Bonds, Series C, 4.00%, 4/1/23		1,905		2,019
				14,663
New Hampshire – 0.5%
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, Health University System, 5.25%, 6/1/39		5,000		5,400
New Hampshire State Municipal Bond Bank Revenue Refunding Bonds, Series A, 5.00%, 8/15/20		2,800		3,307
5.00%, 8/15/21		2,970		3,506
				12,213
New Jersey-1.4%
New Jersey State Economic Development Authority Revenue Refunding Bonds, Series II, 5.00%, 3/1/27		5,000		5,379
New Jersey State Economic Development Authority School Facilities Construction Revenue Refunding Bonds, Series NN, 5.00%, 3/1/25		5,000		5,589
5.00%, 3/1/30		2,460		2,585
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A, 5.75%, 6/15/20		5,000		6,012
New Jersey State Turnpike Authority Revenue Bonds, Series B, 5.00%, 1/1/25		5,000		5,588

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
New Jersey – 1.4% – continued
5.00%, 1/1/30		$10,000		$10,568
				35,721
New Mexico – 0.1%
New Mexico State Finance Authority Revenue Bonds, Series C, 5.00%, 6/1/23		2,770		3,224
New York – 16.6%
Long Island Power Authority Revenue Bonds, Series A, 6.25%, 4/1/33		5,000		5,677
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series B, 5.00%, 11/15/34		5,000		5,208
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.25%, 11/15/26		5,000		5,452
Metropolitan Transportation Authority Revenue Refunding Bonds, Series D, 5.00%, 11/15/23		5,000		5,438
5.00%, 11/15/24		5,000		5,402
Metropolitan Transportation Authority Revenue Refunding Bonds, Series F, 5.00%, 11/15/30		5,000		5,258
New York G.O. Unlimited Bonds, Series E, Prerefunded, 5.00%, 11/1/14		4,680		4,922
New York City Transitional Finance Authority Building Aid Revenue Bonds, Subseries S-1A (State Aid Withholding), 5.00%, 7/15/26		10,000		11,081
New York City Transitional Finance Authority Future Tax Recovery Revenue Bonds, Subseries 13, 5.00%, 11/1/21		10,000		11,848
New York City Transitional Finance Authority Future Tax Revenue Refunding Bonds, Subseries B, 5.00%, 11/1/25		3,775		4,318
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A, 5.00%, 11/1/21		1,000		1,185
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B, 5.00%, 11/1/21		5,000		5,773
5.00%, 2/1/22		2,000		2,334

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
New York – 16.6% – continued
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B, Escrowed to Maturity, 5.00%, 11/1/17		$1,690		$1,965
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries D, Unrefunded Balance, 5.00%, 11/1/13		495		497
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E-1, 5.00%, 2/1/23		10,380		12,119
5.00%, 2/1/35		5,155		5,446
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries H, 5.00%, 11/1/27		11,000		12,343
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series B, 5.00%, 11/1/25		1,000		1,130
New York City Transitional Finance Authority Future TRB, Subseries C-1, 5.00%, 11/1/27		1,000		1,121
New York City Transitional Finance Authority Future TRB, Subseries F-1, 5.00%, 2/1/27		12,445		13,931
5.00%, 2/1/28		10,000		11,076
New York City Water & Sewer System Municipal Finance Authority Revenue Bonds, Series DD, 5.00%, 6/15/35		10,500		11,164
New York G.O. Unlimited Bonds, Series A-1, 5.00%, 8/1/22		10,000		11,551
New York G.O. Unlimited Bonds, Series H, 5.00%, 8/1/21		5,000		5,852
New York G.O. Unlimited Bonds, Series J, 5.00%, 8/1/21		10,000		11,704
New York G.O. Unlimited Bonds, Series D, 5.00%, 8/1/23		5,000		5,819
New York G.O. Unlimited Bonds, Series D, Prerefunded, 5.25%, 10/15/13		5,000		5,011
New York G.O. Unlimited Bonds, Series E, 5.00%, 8/1/32 (2)		5,000		5,361

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
New York – 16.6% – continued
New York G.O. Unlimited Bonds, Series E, Unrefunded Balance, 5.00%, 11/1/25		$5,320		$5,579
New York G.O. Unlimited Bonds, Series H, 5.00%, 8/1/22		3,000		3,518
New York G.O. Unlimited Bonds, Subseries C-1, Fiscal 2008, 5.00%, 10/1/22		10,000		11,286
New York G.O. Unlimited Bonds, Subseries D-1, Fiscal 2014, 5.00%, 8/1/31(2)		3,000		3,234
New York G.O. Unlimited Bonds, Subseries F-1, 5.00%, 3/1/26		6,715		7,506
New York State Dormitory Authority General Purpose Personal Income Tax Revenue Refunding Bonds, Series A, 5.00%, 12/15/20		20,000		23,740
5.00%, 12/15/23		5,000		5,854
New York State Dormitory Authority General Purpose Personal Income TRB, Series A, 5.00%, 3/15/20		10,000		11,778
5.00%, 2/15/29		10,000		10,972
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		5,626
New York State Dormitory Authority Personal Income TRB, Series E, 5.00%, 8/15/20		10,000		11,832
New York State Dormitory Education Authority Personal Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), 5.50%, 3/15/30		10,040		11,816
New York State Dormitory Education Authority Personal Income TRB, Series B, 5.75%, 3/15/36		16,000		17,892
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		5,360

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
New York – 16.6% – continued
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Subseries A, 4.00%, 6/15/25		$5,000		$5,282
New York State Environmental Facilities Corp. Clean Water & Drinking Water Revenue Bonds, Municipal Water Project Revolving Funds, 5.00%, 6/15/36		5,000		5,291
New York State Environmental Facilities Corp. Personal Income TRB, Series A, 5.25%, 12/15/26		10,000		11,439
New York State G.O. Unlimited Bonds, Series A, 5.00%, 3/1/25		5,960		6,924
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series E (AGM-CR G.O. of Corp. Insured), 5.00%, 4/1/21		7,505		8,870
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		4,942
New York State Thruway Transportation Authority Personal Income TRB, Series A, 5.25%, 3/15/21		5,000		5,720
5.00%, 3/15/25		10,000		11,215
New York State Urban Development Corp. Personal Income TRB, Series A-1, 5.00%, 3/15/27		5,000		5,604
New York State Urban Development Corp. Personal Income TRB, Series D, 5.00%, 3/15/25		5,310		6,104
New York State Urban Development Corp. Revenue Refunding Bonds, Series D, 5.38%, 1/1/22		1,850		2,085
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (AMBAC Insured), 5.25%, 10/15/27		3,995		4,171
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 10/15/19		5,100		5,352
5.00%, 10/15/24		2,000		2,093

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
New York – 16.6% – continued
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Series B-1C, 5.50%, 6/1/19		$1,950		$1,967
Triborough Bridge & Tunnel Authority Revenue Refunding Bonds (NATL-RE Insured), 5.50%, 11/15/21		5,000		6,022
				419,060
North Carolina – 3.7%
Charlotte COPS, Series B, 3.00%, 6/1/22		10,000		10,058
Charlotte G.O. Unlimited Refunding Bonds, Series A, 5.00%, 7/1/21		4,410		5,307
Charlotte G.O. Unlimited Refunding Bonds, Series B, 5.00%, 7/1/27		3,500		4,005
Charlotte Mecklenburg Hospital Authority Carolinas Healthcare System Revenue Refunding Bonds, Series A, 3.50%, 1/15/32		5,000		4,045
Mecklenburg County G.O. Unlimited Refunding Bonds, 5.00%, 2/1/19		10,000		11,799
Mecklenburg County G.O. Unlimited Refunding Bonds, Series A, 5.00%, 12/1/20		5,495		6,618
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series B, 5.00%, 3/1/22		3,000		3,615
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series A, Prerefunded, 4.50%, 1/1/22		3,465		3,998
North Carolina State G.O. Unlimited Refunding Bonds, Series B, 5.00%, 6/1/20		5,000		5,992
North Carolina State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 5/1/21		5,000		6,010
North Carolina State G.O. Unlimited Refunding Bonds, Series D, 3.00%, 6/1/19		5,000		5,375
North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series A, 5.25%, 1/1/20		2,000		2,239

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
North Carolina – 3.7% – continued
North Carolina State Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 5/1/21		$5,000		$5,996
North Carolina State University at Raleigh General Revenue Bonds, Series A, 5.00%, 10/1/29		5,000		5,597
Raleigh Combined Enterprise System Revenue Refunding Bonds, Series A, 5.00%, 3/1/26		5,250		6,055
5.00%, 3/1/27		7,000		7,973
				94,682
Ohio – 2.2%
Akron Income TRB, Series A, Community Learning Centers (NATL-RE FGIC Insured), Prerefunded, 5.00%, 12/1/13		3,000		3,025
Cincinnati G.O. Unlimited Bonds, Series A, 5.00%, 12/1/24		1,000		1,131
Columbus G.O. Unlimited Refunding Bonds, Series 1, 5.00%, 7/1/23		3,000		3,584
Columbus Various Purpose G.O. Unlimited Bonds, Series A, 5.00%, 8/15/24		3,000		3,554
5.00%, 8/15/25		7,250		8,477
Ohio State Common Schools G.O. Unlimited Bonds, Series B, 5.00%, 6/15/22		5,000		5,941
5.00%, 9/15/25		10,000		11,318
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/1/22		5,000		5,945
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B, 5.00%, 8/1/22		2,500		2,972
Ohio State Water & Fresh Water Development Authority Revenue Bonds, Series A, 5.00%, 6/1/20		5,000		5,936
Ohio State Water Development Authority PCR Refunding Bonds, Series B, Loan Fund, Prerefunded, 5.00%, 6/1/15		1,000		1,077
University of Cincinnati General Receipts Revenue Bonds, Series G (NATL-RE Insured), 5.00%, 6/1/28		2,075		2,225
				55,185

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Oregon – 2.4%
Multnomah County School District No 1J Portland G.O. Unlimited Bonds, Series A (School Building Guaranty Insured), 5.00%, 6/15/14		$10,200		$10,548
Oregon State Board of Education G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		4,480		5,139
Oregon State Department of Administrative Services G.O. Unlimited Refunding Bonds, Series F, Oregon Opportunity, 5.00%, 12/1/20		1,000		1,177
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series A, 5.00%, 11/15/22		5,000		6,023
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series C, Senior Lien, 5.00%, 11/15/20		10,000		11,447
Oregon State G.O. Unlimited Refunding Bonds, Series A, Oregon University System, 5.00%, 8/1/24		1,000		1,167
5.00%, 8/1/27		2,100		2,370
Oregon State G.O. Unlimited Refunding Bonds, Series F, 5.00%, 5/1/25		1,000		1,166
Oregon State G.O. Unlimited Refunding Bonds, Series N, 5.00%, 12/1/23		3,000		3,493
Tri-County Metropolitan Transportation District Payroll Tax & Grant Receipt Revenue Bonds, 5.00%, 11/1/18		5,000		5,656
3.00%, 11/1/19		5,825		6,118
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		5,600
				59,904
Pennsylvania – 0.2%
Pennsylvania State Turnpike Commission Oil Franchise Tax Revenue Refunding Bonds, Series A (AMBAC Insured), 5.00%, 12/1/19		5,075		5,681

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Rhode Island – 0.5%
Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series A, Consolidated Capital Development Loan, 5.50%, 8/1/25		$5,000		$5,731
Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series B, Consolidated Capital Development Loan, 5.00%, 10/15/27		2,630		2,866
Rhode Island State & Providence Plantations G.O. Unlimited Refunding Bonds, Series A, Consolidated Capital Development Loan, 5.00%, 8/1/21		1,000		1,167
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Subseries A, 5.00%, 10/1/21		2,880		3,382
				13,146
South Carolina – 1.3%
Charleston County Sales Tax G.O. Unlimited Bonds, 4.50%, 11/1/26		3,760		4,019
Piedmont Municipal Power Agency Electric Revenue Bonds, Series 2004 (BHAC-CR MBIA Insured), Unrefunded Balance, 5.38%, 1/1/25		5,000		5,877
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper Project, 5.50%, 1/1/38		12,000		12,670
South Carolina State Transportation Infrastructure Bank Revenue Refunding Bonds, Series A (BHAC-CR AMBAC Insured), 5.00%, 10/1/22		10,000		10,855
				33,421
Tennessee – 1.5%
Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding & Improvement Bonds, Series A, 5.00%, 7/1/24		10,275		11,735
Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding Bonds, 5.00%, 7/1/21		5,000		5,938

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Tennessee – 1.5% – continued
Metropolitan Government of Nashville & Davidson County Water & Sewer Revenue Bonds, 5.00%, 7/1/40		$3,685		$3,864
Tennessee State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/1/21		11,825		14,209
Tennessee State Housing Development Agency Revenue Bonds, Series 1A (AMT), Home Ownership Program (G.O. of Agency Insured), 3.75%, 1/1/19		465		478
4.05%, 7/1/20		470		488
4.13%, 7/1/21		1,630		1,672
				38,384
Texas – 7.6%
Austin Water & Wastewater System Revenue Refunding Bonds, Series A, 5.00%, 11/15/28		2,500		2,765
Brownsville Independent School District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), 5.00%, 2/15/22		6,975		8,351
Corpus Christi General Improvement G.O. Lmited Bonds, 5.00%, 3/1/23		1,945		2,283
Dallas-Fort Worth International Airport Joint Revenue Bonds, Series A (AMT) (NATL-RE Insured), Partially Prerefunded, 5.50%, 11/1/20		1,000		1,004
Denton County Permanent Improvement G.O. Limited Refunding Bonds, 5.00%, 7/15/22		2,000		2,329
Garland Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/24		10,000		11,475
Harris County G.O. Unlimited Refunding Bonds, Series A, 5.00%, 10/1/23		5,000		5,733
Houston Independent School District Variable G.O. Limited Tax Refunding Bonds (PSF-Gtd.), 2.00%, Mandatory Put 6/1/14		5,000		5,060
Houston Independent Schoolhouse & District Variable G.O. Limited Tax Bonds, Series B (PSF-Gtd.), 1.00%, Mandatory Put 6/1/14		10,000		10,043

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Texas – 7.6% – continued
Houston Independent Schoolhouse District G.O. Limited Bonds (PSF-Gtd.), 5.00%, 2/15/25		$10,000		$11,204
Houston Public Improvement G.O. Limited Refunding Bonds, Series D (AGM Insured) Prerefunded, 5.00%, 3/1/16		1,590		1,760
Houston Public Improvement G.O. Limited Refunding Bonds, Series D (AGM Insured), Unrefunded Balance, 5.00%, 3/1/17		10		11
Humble Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 2/15/29		10,000		10,807
Judson Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 2/1/39		5,000		5,250
Lamar Consolidated Independent Schoolhouse District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), 5.00%, 2/15/21		1,500		1,786
Leander Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 8/15/32		5,000		5,010
Lower Colorado River Authority Revenue Bonds, Series 2012-1, Unrefunded Balance, 5.50%, 5/15/33		1,910		2,053
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, 6.50%, 5/15/37		10,000		10,622
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		96
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-1, Prerefunded, 5.50%, 5/15/19		5		6
Mansfield Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.) Prerefunded, 5.00%, 2/15/14		12,400		12,624

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Texas – 7.6% – continued
North East Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.25%, 2/1/28		$10,000		$11,736
North Texas State Municipal Water District System Revenue Refunding & Improvement Bonds, 5.25%, 9/1/22		5,000		6,006
Northside Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 4.00%, 8/15/21		3,365		3,788
5.00%, 8/15/22		5,000		5,914
Panhandle Regional Housing Finance Agency Revenue Bonds, Series A (Collateralized by GNMA Securities), 6.50%, 7/20/21		397		413
Spring Independent Schoolhouse District G.O. Unlimited Bonds (FGIC Insured), 5.00%, 8/15/25		4,680		4,857
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds, Methodist Hospital of Dallas, 5.00%, 10/1/28		10,875		11,398
Texas State A&M University Financing System Revenue Bonds, Series D, 5.00%, 5/15/27 (2)		5,000		5,705
Texas State G.O. Unlimited Refunding Bonds, Series C, Water Financial Assistance, 5.00%, 8/1/21		5,560		6,619
Texas State PFA G.O. Unlimited Refunding Bonds, 5.00%, 10/1/20		10,000		11,931
Tyler Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 2/15/38		2,500		2,656
University of Houston Consolidated Revenue Refunding Bonds, Series A, 5.00%, 2/15/27		2,500		2,740
University of Texas Permanent University Fund Revenue Refunding Bonds, Series B, 5.25%, 7/1/22		5,000		6,079
Wylie Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.), 4.00%, 8/15/21		2,345		2,612
				192,732

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Utah – 0.8%
Nebo School District Building G.O. Unlimited Bonds (School Building Guaranty Insured), 4.00%, 7/1/22		$1,320		$1,462
Utah State G.O. Unlimited Bonds, 5.00%, 7/1/23		5,000		5,966
Utah State G.O. Unlimited Bonds, Series A, 5.00%, 7/1/20		10,000		11,994
				19,422
Virginia – 1.4%
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), 5.00%, 12/1/22		1,435		1,706
5.00%, 12/1/23		8,095		9,670
Norfolk Water Revenue Refunding Bonds, 5.00%, 11/1/21		1,500		1,783
Richmond G.O. Unlimited Bonds, Series A (State Aid Withholding), 5.00%, 3/1/24		8,820		10,427
Richmond Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), 5.00%, 3/1/29		4,510		4,989
Virginia State Housing Development Authority Homeownership Mortgage Revenue Bonds, Series A, 3.65%, 3/1/18		2,200		2,341
3.70%, 9/1/18		4,280		4,567
				35,483
Washington – 3.7%
King County School District No. 405 Bellevue G.O. Unlimited Bonds (AGM Insured) Prerefunded, 4.20%, 12/1/15		5,000		5,410
Port of Seattle Revenue Refunding Bonds, Series C (AMT), Intermediate Lien, 5.00%, 2/1/18		1,000		1,139
Washington State G.O. Unlimited Refunding Bonds, Series R-2013A, 5.00%, 7/1/22		5,000		5,925
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Bonds, Series B, 5.00%, 8/1/28		11,460		12,859
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Refunding Bonds, 5.00%, 7/1/24		8,785		10,195

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 86.9% – continued
Washington – 3.7% – continued
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Refunding Bonds, Series D, 5.00%, 7/1/25		$5,225		$6,062
Washington State Various Purpose G.O. Unlimited Bonds, Series A, 5.00%, 8/1/27		13,075		14,809
Washington State Various Purpose G.O. Unlimited Bonds, Series D, 5.00%, 2/1/23		11,655		13,635
Washington State Various Purpose G.O. Unlimited Refunding Bonds, Series R-2011B, 5.00%, 7/1/21		11,000		12,706
Washington State Various Purpose G.O. Unlimited Refunding Bonds, Series R-C, 5.00%, 7/1/22		10,000		11,851
				94,591
Wisconsin – 0.3%
Wisconsin State G.O. Unlimited Refunding Bonds, Series 2, 5.00%, 11/1/22		6,250		7,402
Total Municipal Bonds
(Cost $2,179,572)				2,196,266
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 12.2%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (3)(4)		307,756,571		$307,757
Total Investment Companies
(Cost $307,757)				307,757
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVES TMENTS – 1 .4%
Massachusetts State Health & Educational Facilities Authority Variable Revenue Bonds, Series Y, Harvard University Issue, 0.03%, 10/10/13		$10,000		$10,000

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 1 .4% – continued
Oregon State G.O. Limited VRDB TANS, Series A, 1.50%, 7/31/14		$25,000		$25,275
Total Short-Term Investments
(Cost $35,275)				35,275
Total Investments – 100.5%
(Cost $2,522,604)				2,539,298
Liabilities less Other Assets – (0.5)%				(13,848	)
NET ASSETS – 100.0%				$2,525,450

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

(2) When-Issued Security.

(3) At March 31, 2013, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $325,779,000 with net sales of approximately $18,022,000 during the six months ended September 30, 2013.

(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 September 30, 2013, the industry sectors for the Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General Obligation		33.4%
General		16.7
Financials		12.1
Water		7.7
School District		7.6
Transportation		6.2
All other sectors less than 5%		16.3
Total		100.0%

At September 30, 2013, the credit quality distribution for the Intermediate Tax- Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		26.8%
AA		49.2
A		10.5
Not Rated		1.2
SP1+/MIG1		0.1
SP1/MIG1		0.1
Cash and Equivalents		12.1
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).

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Municipal Bonds		$–		$2,196,266	(1)		$–		$2,196,266
Investment Companies		307,757		–			–		307,757
Short-Term Investments		–		35,275			–		35,275
Total Investments		$307,757		$2,231,541			$–		$2,539,298

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

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7%
Alabama – 0.5%
Alabama State Public School & College Authority Capital Improvement Revenue Refunding Bonds, Series B, 5.00%, 5/1/14		$5,825		$5,990
Alaska – 0.4%
Anchorage G.O. Unlimited Bonds, Series C, 2.00%, 4/1/14		150		151
Matanuska-Susitna Borough Lease Revenue Bonds, Goose Creek Correctional Center (Assured Guaranty Insured), 5.00%, 9/1/14		4,285		4,471
				4,622
Arizona – 4.6%
Arizona State Department of Administration Refunding COPS, Series B, 4.00%, 10/1/15		400		424
5.00%, 10/1/18		300		340
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road, 5.00%, 7/1/15		5,000		5,406
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road Fund, 5.00%, 7/1/14		100		103
Arizona State Transportation Board Grant Anticipation Revenue Bonds, Series B (AMBAC Insured), Prerefunded, 5.00%, 7/1/14		135		140
Arizona State Transportation Board Highway Revenue Bonds, Series B, 5.00%, 7/1/14		200		207
Arizona State Transportation Board Highway Revenue Bonds, Subseries B, Prerefunded, 5.00%, 7/1/14		300		311
Arizona State Water Quality Infrastructure Finance Authority Revenue Bonds, Series A, 4.00%, 10/1/14		755		784
Casa Grande Excise TRB (AMBAC Insured), Prerefunded, 5.00%, 4/1/14		300		307
Gilbert Public Facilities Municipal Property Corp. Revenue Bonds, 4.00%, 7/1/14		1,910		1,963

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Arizona – 4.6% – continued
Maricopa County Community College District G.O. Unlimited Bonds, Series C, 4.00%, 7/1/15		$1,000		$1,062
4.00%, 7/1/16		1,000		1,089
Maricopa County Community College District G.O. Unlimited Refunding Bonds, 2.00%, 7/1/15		5,000		5,137
2.50%, 7/1/19		1,750		1,810
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		3,603
Maricopa County Unified School District No. 69 Paradise Valley G.O. Limited Refunding Bonds, Series A, Certificates of Ownership (NATL FGIC Insured), 5.25%, 7/1/14		465		482
Maricopa County Unified School District No. 97 Deer Valley G.O. Unlimited Bonds, Series A, School Improvement Project of 2008 (AGM Insured), 2.50%, 7/1/14		225		229
4.25%, 7/1/14		5,000		5,150
Maricopa County Unified School Improvement District No. 11 Peoria G.O. Unlimited Bonds,, 5.00%, 7/1/16		4,250		4,723
Mesa Utility System Revenue Bonds (NATL-RE Insured), Prerefunded, 5.00%, 7/1/14		250		259
Peoria G.O. Unlimited Bonds, Series A, Projects of 2000 & 2005, 3.00%, 7/1/15		200		208
Phoenix Civic Improvement Corp. Excise Tax Revenue Refunding Bonds, Senior Lien, 5.00%, 7/1/14		350		362
Phoenix Civic Improvement Corp. Transportation Excise TRB, 4.00%, 7/1/16		3,500		3,808
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (NATL-RE Insured), 5.00%, 7/1/19		8,500		9,101
Phoenix G.O. Unlimited Bonds, Prerefunded, 4.50%, 7/1/14		370		382

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Arizona – 4.6% – continued
Phoenix G.O. Unlimited Bonds, Series B, 5.00%, 7/1/16		$5,000		$5,381
Pima County Street & Highway Revenue Refunding Bonds, 4.00%, 7/1/14		520		535
Pima County Unified School District No. 10 Ampitheater G.O. Unlimited Bonds, Series D, School Improvement Project of 2007, 2.00%, 7/1/16 (1)		425		438
Pinal County Obligation Revenue Refunding Bonds, 3.00%, 8/1/15		1,820		1,895
Tucson Water System Revenue Bonds, 5.00%, 7/1/16		1,275		1,420
				57,059
California – 5.3%
Burbank Public Financing Authority Tax Allocation Revenue Bonds, Series A, Golden State Redevelopment (AMBAC Insured), Prerefunded, 5.25%, 12/1/13		250		252
California State Department of Water Resources Revenue Bonds, Series W (AGM-CR Insured), Partially Escrowed to Maturity, 5.50%, 12/1/13		350		353
California State Department of Water Resources Supply Revenue Bonds, Series L, 5.00%, 5/1/15		10,000		10,745
California State G.O. Unlimited Refunding Bonds, 3.00%, 2/1/14		525		530
5.00%, 2/1/14		725		737
5.00%, 5/1/14		290		298
5.00%, 6/1/14		150		155
5.00%, 8/1/14		200		208
4.00%, 9/1/14		100		104
5.00%, 11/1/14		545		574
California State G.O. Unlimited Bonds, 5.00%, 10/1/13		100		100
4.00%, 8/1/14		105		108
California State G.O. Unlimited Bonds, Prerefunded, 5.30%, 4/1/14		50		51

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
California – 5.3% – continued
California State Health Facilities Financing Authority Revenue Bonds, Series C, Providence Health & Services, 5.00%, 10/1/14		$500		$523
California State University Systemwide Revenue Bonds, Series A, 4.00%, 11/1/14		120		125
5.00%, 11/1/14		350		368
California State Various Purpose G.O. Unlimited Bonds, 3.00%, 3/1/14		335		339
5.00%, 3/1/14		125		128
5.00%, 12/1/14		250		264
5.00%, 10/1/18		10,000		11,668
California State Various Purpose G.O. Unlimited Refunding Bonds, 4.00%, 9/1/14		10,500		10,868
East Side Union High School District Santa Clara County G.O. Unlimited Refunding Bonds, 2012 Crossover (AGM Insured), 5.00%, 9/1/14		250		260
Fairfield-Suisun Unified School District G.O. Unlimited Refunding Bonds, 4.00%, 8/1/17		2,065		2,296
4.00%, 8/1/18		1,405		1,576
Los Angeles Department of Water & Power System Revenue Bonds, Series A, 5.00%, 7/1/19		5,000		5,943
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/14		100		104
Los Angeles G.O. Unlimited Refunding Bonds, Series A (NATL FGIC Insured), 5.25%, 9/1/14		225		236
Los Angeles Unified School District G.O. Unlimited Bonds, Series C, Election of 2002 (AGM Insured), 4.00%, 7/1/15		200		213
Los Angeles Unified School District G.O. Unlimited Bonds, Series I, 5.00%, 7/1/15		5,000		5,410
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, 3.25%, 5/15/14		150		153

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
California – 5.3% – continued
San Francisco Bay Area Toll Authority Bridge Variable Revenue Bonds, Series C3, 1.45%, Mandatory Put 8/1/17		$6,725		$6,676
San Francisco City & County Road Repaving & Street Safety G.O. Unlimited Bonds, Series C, 5.00%, 6/15/18		1,385		1,625
San Juan Unified School District G.O. Unlimited Bonds, 5.00%, 8/1/20		1,125		1,333
University of California Revenue Bonds, Series E, Limited Project, 3.00%, 5/15/14		100		102
University of California Revenue Bonds, Series O, 5.00%, 5/15/15		195		210
				64,635
Colorado – 1.0%
Colorado State Board for Community Colleges & Occupational Education Systemwide Revenue Refunding Bonds, Series A (State Higher Education Intercept Program), 2.00%, 11/1/14		200		203
Colorado State Refunding COPS, Series A, UCDHSC Fitzsimons Academic Projects, 5.00%, 11/1/17		1,875		2,159
Denver City & County Excise Tax Revenue Refunding Bonds (AGM Insured), 5.25%, 11/1/14		100		100
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 6.00%, 9/1/21		5,000		5,873
Denver City & County School District No. 1 G.O. Unlimited Refunding Bonds (State Aid Withholding), 4.00%, 12/1/14		350		365
Douglas County School District No. Re-1 Douglas & Elbert Counties Improvement G.O. Unlimited Bonds, Series B (AGM Insured State Aid Withholding), Prerefunded, 5.00%, 12/15/14		100		106
Jefferson County School District No. R-001 G.O. Unlimited Refunding Bonds (AGM Insured Aid Withholding), 5.00%, 12/15/13		1,085		1,096

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Colorado – 1.0% – continued
Regional Transportation District Transit Vehicles COPS, Series A, (AMBAC Insured), 5.00%, 12/1/16		$1,590		$1,784
				11,686
Connecticut – 1.8%
Connecticut State Economic Recovery G.O. Unlimited Bonds, Series D, 5.00%, 1/1/14		10,000		10,123
Connecticut State G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 3/1/14		565		576
Connecticut State G.O. Unlimited Bonds, Series C, 5.00%, 11/1/14		500		526
Connecticut State G.O. Unlimited Bonds, Series D, 5.00%, 12/1/13		125		126
Connecticut State G.O. Unlimited Bonds, Series F (NATL-RE Insured), Prerefunded, 5.25%, 10/15/13		100		100
Connecticut State G.O. Unlimited Refunding Bonds, Series B, 5.00%, 5/1/14		150		154
5.00%, 5/1/17		5,520		6,316
Connecticut State Housing Finance Authority Mortgage Finance Program Revenue Bonds, Series A, 0.55%, 5/15/14		750		752
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Bonds, Series A, 3.00%, 12/1/13		100		101
5.00%, 12/1/13		100		101
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series 1, Second Lien, 2.50%, 2/1/14		100		101
5.00%, 2/1/17		2,500		2,835
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series B, 5.00%, 12/1/14		100		106
Norwalk G.O. Unlimited Refunding Bonds, Series B, 2.50%, 7/1/15		50		52

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Connecticut – 1.8% – continued
Stamford Water Pollution Control System & Facility Revenue Bonds, Series A, Escrowed to Maturity, 3.50%, 11/15/13		$315		$316
University of Connecticut Revenue Bonds, Series A (G.O. of University Insured), 3.00%, 2/15/14		100		101
3.60%, 4/1/14		250		254
				22,640
Delaware – 1.5%
Delaware State G.O. Unlimited Bonds, Series 2009C, 5.00%, 10/1/15		15,000		16,384
Delaware State Transportation Authority System Senior Revenue Bonds (NATL-RE Insured), 5.00%, 7/1/14		175		181
University of Delaware Revenue Refunding Bonds, Series B, 4.00%, 11/1/14		1,250		1,301
5.00%, 11/1/15		1,000		1,095
				18,961
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		310
District of Columbia Income Tax Secured Revenue Bonds, Series A, 4.00%, 12/1/13		200		201
District of Columbia Income Tax Secured Revenue Refunding Bonds, Series C, 5.00%, 12/1/13		200		202
				713
Florida – 5.9%
Cape Coral Water & Sewer Revenue Refunding Bonds, Series A (AGM Insured), 3.00%, 10/1/13		250		250
Citizens Property Insurance Corp. High Risk Account Senior Secured Revenue Bonds, Series A-1, 5.00%, 6/1/14		1,100		1,134
5.50%, 6/1/14		75		78
Citizens Property Insurance Corp. Senior Secured High Account Revenue Bonds, Series A-1, 5.00%, 6/1/14		100		103

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Florida – 5.9% – continued
Clay County Infrastructure Sales Surtax Revenue Bonds (Assured Guaranty Insured), 5.25%, 10/1/17		$4,600		$5,190
Florida State Board of Education Lottery Revenue Bonds, Series A (AMBAC Insured), 5.25%, 7/1/14		150		156
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series A, 5.00%, 6/1/15		5,430		5,851
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series C, 5.00%, 6/1/17		10,100		11,574
Florida State Department of Transportation Right of Way G.O. Unlimited Refunding Bonds, Series B,, 6.38%, 7/1/14		1,500		1,570
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 5.00%, 7/1/14		130		135
5.00%, 7/1/15		10,000		10,752
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.00%, 10/1/16		4,000		4,473
Florida State Municipal Power Agency Revenue Bonds, Series A, Stanton II Project, 2.00%, 10/1/13		205		205
Florida State Turnpike Authority Department of Transportation Revenue Refunding Bonds, Series A, 5.00%, 7/1/14		250		259
Florida State Water Pollution Control Financing Corp. Revenue Bonds, Series A, 5.00%, 7/15/14		300		311
Jacksonville Better Sales TRB (NATL-RE Insured), Prerefunded, 5.00%, 10/1/13		300		300
Jacksonville Local Government Sales Tax Revenue Refunding Bonds (NATL FGIC Insured), 5.50%, 10/1/13		150		150
Jacksonville Special Revenue Bonds, Series B-1A, 5.00%, 10/1/14		390		408

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Florida – 5.9% – continued
Jacksonville Special Revenue Bonds, Series C-1, 5.00%, 10/1/13		$150		$150
JEA Electric System Revenue Bonds, Series Three A, 5.00%, 10/1/17		940		1,081
JEA Electric System Revenue Bonds, Series Three D-1, 4.00%, 10/1/15		250		268
Jea St. Johns River Power Park System Revenue Refunding Bonds, Series 24, Issue 2, 3.00%, 10/1/13		200		200
Manatee County Public Utilities Revenue Refunding & Improvement Bonds (NATL-RE Insured), Prerefunded, 4.70%, 10/1/13		100		100
Miami-Dade County G.O. Unlimited Bonds, Series B, Building Better Communities Program, 5.00%, 7/1/15		5,000		5,394
Miami-Dade County Transit Sales Surtax Revenue Bonds, Series A, 4.00%, 7/1/14		450		463
Miami-Dade County Water & Sewer Revenue Refunding Bonds (NATL-RE Insured), 5.00%, 10/1/13		3,500		3,500
Palm Beach County School Board Refunding COPS, Series E (AMBAC Insured), 5.38%, 8/1/15		5,000		5,431
Reedy Creek Improvement District G.O.limited Bonds, Series A, 5.00%, 6/1/20		1,250		1,453
Reedy Creek Improvement District Utilities Revenue Refunding Bonds, Series 2 (AMBAC Insured), 5.00%, 10/1/15		5,730		6,175
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series A, 5.00%, 10/1/16		1,500		1,665
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series B, 5.00%, 10/1/14		2,535		2,646
Tallahassee Blueprint 2000 Intergovernmental Agency Sales TRB (NATL-RE Insured), 5.00%, 10/1/14		500		522

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Florida – 5.9% – continued
Tampa Bay Water Utility System Revenue Refunding & Improvement Bonds (NATL FGIC Insured), 5.25%, 10/1/13		$200		$200
				72,147
Georgia – 3.0%
Clayton County Water Authority & Sewage Revenue Refunding Bonds, 4.00%, 5/1/16		500		542
Forsyth County School District G.O. Unlimited Refunding Bonds, 5.00%, 2/1/19		4,215		4,933
Fulton County Facilities Corp. COPS, Public Purpose Project, 5.00%, 11/1/15		2,250		2,444
5.00%, 11/1/16		2,280		2,544
5.00%, 11/1/18		2,505		2,867
Georgia State G.O. Unlimited Bonds, Series D, Prerefunded, 4.50%, 12/1/13		100		101
Georgia State G.O. Unlimited Bonds, Series F, 5.00%, 11/1/14		5,000		5,261
Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A, 5.00%, 6/1/18		5,000		5,782
Georgia State Road & Tollway Authority Revenue Bonds (State Gtd.), Prerefunded, 5.00%, 10/1/13		120		120
Gwinnett County Development Authority COPS, Public Schools Project (NATL-RE Insured), Prerefunded, 5.25%, 1/1/14		115		116
Henry County School District G.O. Unlimited Refunding Bonds (State Aid Withholding), 5.00%, 8/1/19		5,270		6,181
Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Refunding Bonds, Series A, Third Indenture (AMBAC Insured), 5.00%, 7/1/14		700		725
Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Refunding Bonds, Series A, Third Indenture (NATL FGIC Insured), 5.00%, 7/1/15		4,000		4,316

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Georgia – 3.0% – continued
Municipal Electric Authority of Georgia Revenue Bonds, Subseries D, Project One, 5.00%, 1/1/14		$1,045		$1,058
				36,990
Hawaii – 0.8%
Hawaii State G.O. Unlimited Bonds, Series CH (NATL-RE-IBC Insured), 4.75%, 11/1/13		300		301
Hawaii State G.O. Unlimited Bonds, Series DQ, 4.00%, 6/1/14		100		103
Hawaii State G.O. Unlimited Bonds, Series DJ (AMBAC Insured), 5.00%, 4/1/14		100		102
Hawaii State G.O. Unlimited Refunding Bonds, Series DW, 4.00%, 11/1/13		150		151
Hawaii State G.O. Unlimited Refunding Bonds, Series EF, 5.00%, 11/1/21		5,000		5,943
Honolulu City & County Board of Water Supply Revenue Bonds, Series A (NATL FGIC Insured), 4.00%, 7/1/14		245		252
Honolulu City & County G.O. Unlimited Bonds, Series A (NATL-RE Insured), 5.00%, 7/1/14		305		316
Honolulu City & County G.O. Unlimited Bonds, Series B (AGM Insured), 5.25%, 7/1/15		240		261
Honolulu City & County G.O. Unlimited Bonds, Series C (NATL-RE Insured), Prerefunded, 5.00%, 7/1/15		175		189
Honolulu City & County G.O. Unlimited Bonds, Series F, 5.00%, 9/1/15		2,000		2,176
Honolulu City & County G.O. Unlimited Prerefunded Bonds, Series B, Escrowed to Maturity, 5.00%, 10/1/13		140		140
Honolulu City & County Wastewater System Revenue Bonds, Senior Series B, First Bond Resolution, 3.00%, 7/1/14		255		260
				10,194

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Illinois – 2.9%
Central Lake County Joint Action Water Agency Revenue Refunding Bonds, 4.00%, 5/1/20		$5,350		$5,861
Chicago Wastewater Transmission Revenue Bonds, Second Lien, 3.00%, 1/1/14		350		352
Cook County Community Consolidated School District No. 59 Elk Grove G.O. Limited Bonds, 3.00%, 3/1/14		750		757
Cook County Forest Preservation District G.O. Unlimited Bonds (AGM-CR AMBAC Insured), Prerefunded, 5.00%, 11/15/14		250		263
Cook Kane Lake & McHenry County’s Community College District No. 512 G.O. Unlimited Refunding Bonds, William Rainey Harper College Project, 5.00%, 12/1/13		500		504
Du Page County Community High School District No. 108 G.O. Unlimited Refunding Bonds, 4.00%, 1/1/19		1,000		1,100
DuPage County Forest Preserve District G.O. Unlimited Bonds, 4.25%, 11/1/13		100		100
Grundy & Will Counties Community Unit School District No. 1 G.O. Unlimited Bonds, 5.88%, 2/1/16		1,120		1,242
Illinois Finance Authority Revenue Bonds, Series A-1, Advocate Health Care, 5.00%, Mandatory Put 1/15/20		1,295		1,453
Illinois State Development Finance Authority Variable Revenue Bonds, St. Vincents De Paul, 1.88%, Mandatory Put 3/1/19		2,000		1,944
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 5.00%, 3/1/15		4,000		4,241
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series A (AGM Insured), 5.50%, 1/1/14		315		319
Illinois State Toll Highway Authority Senior Revenue Refunding Bonds, Series B, 5.00%, 12/1/17		3,000		3,423
5.00%, 12/1/18		1,000		1,146

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Illinois – 2.9% – continued
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series B, 5.00%, 12/15/19		$3,500		$3,744
Lake & McHenry Counties Community Unit School District No. 118 G.O. Unlimited Bonds, Series A (AGM Insured), Prerefunded, 5.00%, 1/1/15		560		593
Lake County Forest Preservation District Revenue Debt Certificates, Series C, 3.25%, 12/15/13		100		101
Schaumburg G.O. Unlimited Bonds, Series B (NATL FGIC Insured), Prerefunded, 5.00%, 12/1/14		750		791
5.25%, 12/1/14		225		238
Schaumburg Park District G.O. Limited Bonds, Series A, 2.00%, 12/15/13		2,900		2,909
Tinley Park G.O. Unlimited Bonds, 3.00%, 12/1/14		405		416
4.00%, 12/1/15		425		454
4.00%, 12/1/17		470		514
Will County Community High School Building District No. 210 Lincoln-Way G.O. Unlimited Bonds (NATL FGIC Insured), 4.00%, 1/1/14		500		505
Winnebago County Public Safety G.O. Unlimited Sales Tax Revenue Refunding Bonds, 3.00%, 12/30/18		2,165		2,271
Winnebago County Public Safety Sales Tax G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 6/30/15		300		324
				35,565
Indiana – 1.0%
Hamilton Southeastern Consolidated School Building Corp. First Mortgage Revenue Bonds, Series B (AGM Insured), Prerefunded, 5.00%, 7/15/14		100		104
Indiana Finance CWA Authority Wastewater Utility Revenue Bonds, Series A, First Lien, 4.00%, 10/1/14		1,380		1,430

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Indiana – 1.0% – continued
Indiana State Finance Authority Facilities Revenue Refunding Bonds, 5.00%, 7/1/14		$3,485		$3,609
Indiana State Finance Authority Highway Revenue Refunding Bonds, Series A, 4.00%, 12/1/14		100		105
Indiana State Finance Authority Revenue Bonds, Series A, Revolving Fund Program, 5.00%, 2/1/14		325		330
Indiana State Transportation Finance Authority Revenue Bonds, Series A (FGIC Insured), Prerefunded, 5.13%, 6/1/14		3,350		3,460
5.25%, 6/1/14		150		155
Indiana University Student Fee Revenue Bonds, Series U, 5.00%, 8/1/14		470		489
Noblesville Multi School Building Corp. First Mortgage Revenue Refunding Bonds (AGM Insured State Aid Withholding), 5.00%, 1/15/14		460		466
Pike Township Multi-School Building Corp. First Mortgage Revenue Bonds (State Aid Withholding), 4.00%, 1/15/14		1,805		1,825
Purdue University Revenue Bonds, Series A, 5.00%, 7/1/14		250		259
Purdue University Student Fee Revenue Bonds, Series Z-1, 5.00%, 7/1/14		150		155
				12,387
Iowa – 0.0%
Des Moines Metropolitan Wastewater Reclamation Authority Sewer Revenue Bonds, Series B (NATL-RE Insured), Prerefunded, 5.00%, 6/1/14		300		309
Kansas – 0.4%
Johnson County International Improvement G.O. Unlimited Refunding Bonds, Series C, 3.00%, 9/1/14		140		144
Kansas State Department of Transportation Highway Revenue Bonds, Series A, Prerefunded, 5.00%, 3/1/14		100		102

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Kansas – 0.4% – continued
Kansas State Development Finance Authority Revenue Bonds, Series K, Department of Commerce Impact Program, 5.00%, 12/1/14		$250		$262
Olathe G.O. Unlimited Bonds, Series 210, 4.00%, 10/1/14		185		192
Wichita G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/1/18		2,230		2,610
Wichita Water & Sewer Utility Revenue Bonds (NATL FGIC Insured), Prerefunded, 5.00%, 10/1/13		2,000		2,000
				5,310
Kentucky – 1.0%
Kentucky State Property & Buildings Commission Revenue Bonds, Series A, Project No. 95, 5.00%, 8/1/15		5,805		6,282
Kentucky State Turnpike Authority Economic Development Road Revenue Refunding Bonds, Series B, Revitalization Projects (AGM Insured), 5.25%, 7/1/14		190		197
Kentucky Turnpike Authority Economic Development Road Revenue Bonds, Series A, Revitalization Projects, 5.00%, 7/1/18 (1)		4,500		5,195
				11,674
Louisiana – 0.0%
Lafayette Utilities Revenue Bonds (NATL-RE Insured), 5.25%, 11/1/14		250		263
Maine – 0.0%
Maine State Municipal Bond Bank Revenue Bonds, Series A (G.O. of Bond Bank Insured), 5.00%, 11/1/13		400		402
Maryland – 4.9%
Anne Arundel County Consolidated General Improvement G.O. Limited Bonds, 5.00%, 4/1/14		200		205
5.00%, 3/1/15		380		405
5.00%, 4/1/18		2,915		3,392

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Maryland – 4.9% – continued
Anne Arundel County Consolidated Improvements G.O. limited Bonds, 5.00%, 4/1/15		$150		$161
Baltimore Consolidated Public Improvement G.O. Unlimited Bonds, Series A, 3.00%, 10/15/13		175		175
4.00%, 10/15/13		125		125
4.00%, 10/15/14		250		260
Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds, 5.00%, 8/1/19		5,000		5,944
Baltimore County Public Improvement G.O. Unlimited Bonds, 5.00%, 2/1/19		5,000		5,900
Charles County Consolidated Public Improvement G.O. Unlimited Bonds, 5.00%, 7/15/17		1,470		1,689
Charles County G.O. Unlimited Refunding Bonds, Unrefunded Balance, Prerefunded, 4.25%, 3/1/15		165		174
Frederick County G.O. Unlimited Refunding Bonds, Series C, 4.00%, 12/1/15		6,375		6,861
Frederick County Public Facilities G.O. Unlimited Refunding Bonds, 4.00%, 8/1/20		5,220		5,872
Howard County Consolidated Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 4/15/14		100		103
Howard County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series A, 5.00%, 2/15/19		3,735		4,401
Howard County Consolidated Public Improvement Project G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/15/14		450		469
Maryland State & Local Facilities Loan Capital Improvement G.O. Unlimited Bonds, Series A, 5.50%, 3/1/14		725		741
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series, Prerefunded, 5.00%, 3/15/17		150		171

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Maryland – 4.9% – continued
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series B, 5.00%, 8/1/16		$15,000		$16,847
Maryland State & Local Facilities Loan G.O. Unlimited Refunding Bonds, Second Series, 4.50%, 8/1/20		5,000		5,804
Maryland State Department of Transportation Consolidated Revenue Bonds, Prerefunded, 5.00%, 5/1/14		150		154
Maryland State Department of Transportation Consolidated Revenue Bonds, Second Issue, 4.00%, 9/1/15		200		214
Maryland State Water Quality Financing Administration Revolving Loan Fund Revenue Bonds, Series A,, 5.00%, 3/1/14		145		148
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, 5.50%, 10/1/13		150		150
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, Series A, 5.00%, 7/15/14		100		104
				60,469
Massachusetts – 2.0%
Boston G.O. Unlimited Refunding Bonds, Series C, 5.00%, 8/1/14		100		104
Cambridge Municipal Purpose Loan G.O. Limited Bonds, 3.00%, 2/15/20		4,575		4,894
Massachusetts Bay Transportation Assessment Authority Revenue Bonds, Series A, Prerefunded, 4.25%, 7/1/14		50		52
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series B, 5.00%, 7/1/14		130		135
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series C, 5.25%, 7/1/14		275		286
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series A, 5.00%, 8/1/16		310		347
5.00%, 4/1/19		3,500		4,100

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Massachusetts – 2.0% – continued
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series C (NATL FGIC G.O. of Commonwealth Insured), 5.50%, 11/1/13		$515		$517
5.50%, 11/1/14		525		555
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D (NATL-RE Insured), 6.00%, 11/1/13		325		327
Massachusetts State Consolidated Loan G.O. Unlimited Bonds, Series A, 5.00%, 8/1/14		250		260
Massachusetts State Department of Transportation Metropolitan Highway System Revenue Bonds, Senior Series B, 5.00%, 1/1/15		3,500		3,698
Massachusetts State G.O. Limited Refunding Bonds, series B, 5.00%, 8/1/18		4,200		4,902
5.00%, 8/1/19		1,000		1,176
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series A, Harvard University (G.O.of Institution Insured), 3.00%, 12/15/13		150		151
Massachusetts State School Building Authority Sales TRB, Senior Series B, 5.00%, 10/15/15		1,000		1,093
Massachusetts State Special Obligation Revenue Refunding Bonds, Series A, Senior Federal Highway Grant Anticipation Notes, 5.00%, 12/15/13		245		247
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Pool Program, 5.00%, 8/1/16		540		606
Peabody Massachusetts G.O. Limited Refunding Bonds, Series B (NATL-RE Insured), 5.00%, 7/15/14		400		415
Wayland Municipal Purpose Loan G.O. Limited Bonds, 4.00%, 2/1/14		150		152
				24,017
Michigan – 2.3%
Dearborn School District G.O. Unlimited Refunding Bonds (Q-SBLF Insured), 4.00%, 5/1/14		925		943

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Michigan – 2.3% – continued
Eaton Rapids Public Schools G.O. Unlimited Refunding Bonds (Q-SBLF Insured), 5.00%, 5/1/20		$800		$902
Grand Rapids Public School Building & Site G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 5/1/14		4,875		5,012
Kentwood Public Schools G.O. Unlimited Refunding Bonds, 4.00%, 5/1/18		2,340		2,562
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I-A, 5.00%, 10/15/17		1,100		1,235
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II (NATL-RE Insured), Escrowed to Maturity, 5.25%, 10/15/13		250		250
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II (NATL-RE Insured), Prerefunded, 5.00%, 10/15/13		5,000		5,010
Michigan State Finance Authority Clean Water Revolving Fund Revenue Refunding Bonds, 5.00%, 10/1/20		2,805		3,301
Michigan State Finance Authority Revenue Refunding Bonds, State Revolving Fund, 5.00%, 10/1/19		2,755		3,222
Michigan State Finance Authority Unemployment Obligation Assessment Revenue Refunding Bonds, Series B, 5.00%, 7/1/22		1,850		2,002
Michigan State Municipal Bond Authority Clean Water Revolving Fund Revenue Bonds, 5.00%, 10/1/19		1,635		1,906
Michigan State Trunk Line Fund Revenue Bonds (FGIC Insured), Prerefunded, 5.00%, 9/1/14		100		104
Michigan State University General Revenue Bonds, Series A (AMBAC Insured), 5.00%, 2/15/14		100		102
University of Michigan General Revenue Bonds, Series C, 3.00%, 4/1/14		250		253

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Michigan – 2.3% – continued
Western Michigan University General Revenue Refunding Bonds, 5.00%, 11/15/19 (1)		$850		$968
Zeeland Public Schools Building & Site G.O. Unlimited Bonds (NATL-RE Insured), Prerefunded, 5.25%, 5/1/14		165		170
				27,942
Minnesota – 2.3%
Buffalo Independent School District No. 877 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program Insured), 3.00%, 2/1/17		825		880
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		4,982
Minnesota State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/13		250		250
Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B, 5.00%, 10/1/21		2,030		2,437
Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series D, 5.00%, 8/1/15		500		543
Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series F, 4.00%, 8/1/15		10,000		10,670
Northern Municipal Power Agency Electric System Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 5.00%, 1/1/14		2,320		2,348
Rochester Wastewater G.O. Unlimited Refunding Bonds, Series A, 5.00%, 2/1/19		1,810		2,127
St. Paul Metropolitan Area Council Minneapolis Transit G.O. Unlimited Refunding Bonds, Series C, 5.00%, 2/1/14		250		254
St. Paul Metropolitan Area Council Minneapolis Wastewater G.O. Unlimited Refunding Bonds, Series E, 5.00%, 9/1/21		3,350		4,019
				28,510

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Mississippi – 0.2%
Mississippi State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/13		$2,620		$2,620
Missouri – 0.1%
Curators of the University of Missouri System Facilities Revenue Bonds, Series A, Prerefunded, 5.00%, 11/1/13		550		552
Kansas City Water Revenue Refunding & Improvement Bonds, Series A, 5.00%, 12/1/14		100		106
Missouri State Highways & Transit Commission Road Revenue Refunding Bonds, Senior Lien, 4.00%, 2/1/14		200		203
St. Louis Board of Education G.O. Unlimited Refunding Bonds (NATL-RE Insured State Aid Direct Deposit Program), 5.25%, 4/1/15		455		488
				1,349
Nebraska – 0.2%
Lancaster County Public School District No. 1 G.O. Limited Bonds, 4.00%, 1/15/15		150		157
Lincoln Highway Allocation Fund G.O. Unlimited Bonds, Prerefunded, 5.00%, 5/15/14		125		129
Nebraska State Public Power District General Revenue Bonds, Series A, 4.00%, 1/1/14		125		126
Nebraska State Public Power District General Revenue Bonds, Series B, 5.00%, 1/1/14		1,730		1,751
Omaha Public Power District Revenue Bonds, Series C, 4.00%, 2/1/14		130		132
				2,295
Nevada – 1.0%
Clark County School District Building G.O. Limited Bonds, Series B (AMBAC Insured), 5.00%, 6/15/15		2,000		2,151
Clark County School District G.O. Limited Bonds, Series C (AGM Insured), 5.00%, 6/15/18		2,000		2,173

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Nevada – 1.0% – continued
Clark County School District G.O. Limited Refunding Bonds (AGM Insured), 5.50%, 6/15/14		$400		$415
Clark County School District G.O. Limited Tax Bonds, Series B, 5.00%, 6/15/15		110		118
Clark County School District G.O. Limited Tax Refunding Bonds, Series A, 5.00%, 6/15/14		100		103
Clark County Transportation G.O. Limited Refunding Bonds, Series A (AMBAC Insured), 5.00%, 12/1/15		3,000		3,155
Clark County Transportation G.O. Limited Refunding Bonds, Series B (AMBAC Insured), 5.00%, 12/1/13		490		494
Las Vegas Valley Water District G.O. Limited Tax Refunding Bonds, Series D, 5.00%, 6/1/15		750		806
Nevada State Capital Improvement G.O. Limited Refunding Bonds, Series A, 5.00%, 2/1/14		100		102
Washoe County School District G.O. Limited Bonds, Series C, 3.00%, 4/1/14		400		406
Washoe County School District G.O. Limited Tax Refunding Bonds, Series A, 4.00%, 6/1/19		1,825		2,014
				11,937
New Hampshire – 0.3%
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Series A, University System, 5.00%, 7/1/14		3,000		3,106
New Jersey – 4.4%
Bergen County G.O. Unlimited Bonds, Series A, 2.50%, 11/1/13		105		105
Elizabeth G.O. Unlimited Bonds, 2.00%, 4/1/17		1,620		1,661
2.00%, 4/1/18		1,600		1,616
Garden State Preservation Trust Open Space & Farmland Revenue Bonds, Series A (AGM Insured), 5.50%, 11/1/13		500		502

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New Jersey – 4.4% – continued
Garden State Preservation Trust Open Space & Farmland Revenue Bonds, Series B (NATL-RE Insured), 6.38%, 11/1/13		$150		$151
Mercer County G.O. Unlimited Refunding Bonds, 4.50%, 5/1/14		200		205
Monmouth County G.O. Unlimited Bonds, 4.00%, 1/15/19		3,515		3,938
New Jersey Environmental Infrastructure Trust Revenue Bonds, 5.00%, 9/1/20		2,280		2,723
New Jersey State EDA School Facilities Construction Revenue Bonds, Series J-3 (AGM Insured), Prerefunded, 5.00%, Mandatory Put 9/1/14		2,625		2,738
New Jersey State EDA School Facilities Construction Revenue Bonds, Series I, Prerefunded, 5.25%, 9/1/14		100		105
New Jersey State EDA School Facilities Construction Revenue Bonds, Series J-4 (AGM Insured), 4.00%, 9/1/14		125		129
New Jersey State EDA School Facilities Construction Revenue Bonds, Series O, Prerefunded, 5.13%, 3/1/15		375		401
New Jersey State EDA School Facilities Construction Revenue Refunding Bonds, Series EE, 5.00%, 9/1/18		10,600		12,125
New Jersey State G.O. Unlimited Refunding Bonds, 5.00%, 8/1/15		3,200		3,472
New Jersey State Transit Corp. COPS, Series A (AMBAC Insured), 5.25%, 9/15/14		2,000		2,089
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A (FGIC Insured), Prerefunded, 5.25%, 6/15/14		100		104
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 12/15/13		595		601

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New Jersey – 4.4% – continued
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series B, Transportation System (NATL-RE Insured), 5.25%, 12/15/14		$315		$334
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series C (AGM Insured), Escrowed To Maturity, 5.75%, 12/15/14		225		240
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series C (NATL-RE FGIC Insured), Prerefunded, 5.25%, 6/15/15		4,710		5,104
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, 5.00%, 6/15/19		2,250		2,590
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series D (AMBAC Insured), Unrefunded Balance, Prerefunded, 5.00%, 6/15/15		4,000		4,316
New Jersey State Turnpike Authority Revenue Refunding Bonds, Series A (NATL-RE Insured), Escrowed To Maturity, 6.00%, 1/1/14		100		101
New Jersey State Various Purpose G.O. Unlimited Bonds (AMBAC Insured), Prerefunded, 4.50%, 4/1/14		300		306
Ocean County General Improvement G.O. Unlimited Bonds, 2.00%, 8/1/14		230		233
Union County G.O. Unlimited Bonds, 3.00%, 3/1/19		4,315		4,602
Union County G.O. Unlimited Bonds, Series B (School Board Resource Fund Insured), 3.00%, 3/1/20		2,987		3,163
Union County Vocational Technology School G.O. Unlimited Bonds (School Board Resource Fund Insured), 3.00%, 3/1/18		460		493
				54,147

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New Mexico – 2.2%
Albuquerque Bernalillo County Water Utility Authority Joint Water & Sewer Revenue Refunding Bonds, Series B, 5.00%, 7/1/21 (1)		$1,675		$1,977
Albuquerque G.O. Unlimited Bonds, Series A, 3.00%, 7/1/15		1,590		1,663
Albuquerque General Purpose G.O. Unlimited Bonds, Series A, 4.00%, 7/1/17		5,050		5,608
Los Alamos County, Inc. Gross Receipts Tax Improvemnet Revenue Bonds, 5.75%, 6/1/14		200		207
New Mexico State Severance Tax Revenue Refunding Bonds, Series D, 5.00%, 7/1/17		10,000		11,484
New Mexico State University Improvement Refunding Revenue Bonds, Series B, 5.00%, 4/1/18		2,615		3,024
New Mexico State University Revenue Refunding & Improvement Bonds, Series B, 5.00%, 4/1/19		2,710		3,169
				27,132
New York – 6.0%
Long Beach City School District G.O. Unlimited Bonds (State Aid Withholding), 3.00%, 5/1/18		4,015		4,294
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series C (AMBAC Insured), 5.00%, 11/15/13		100		101
Metropolitan Transportation Authority Revenue Bonds, Series A, 5.00%, 11/15/18		1,000		1,146
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.00%, 11/15/17		2,235		2,556
Metropolitan Transportation Authority Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 11/15/14		450		476
Metropolitan Transportation Authority Revenue Refunding Bonds, Series F, 2.00%, 11/15/14		150		153

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New York – 6.0% – continued
Monroe County Industrial Development Agency School Facilities Revenue Bonds, Rochester Schools Modernization (State Aid Withholding), 5.00%, 5/1/17		$705		$799
5.00%, 5/1/18		1,000		1,148
Nassau County Interim Finance Authority Sales Tax Secured Revenue Bonds, Series A, 5.00%, 11/15/13		170		171
Nassau County Interim Finance Authority Sales Tax Secured Revenue Bonds, Series D (NATL-RE Insured), 5.00%, 11/15/13		500		503
Nassau County Interim Finance Authority Sales Tax Secured Revenue Refunding Bonds, Series B (AMBAC Insured), 5.00%, 11/15/13		500		503
New York City G.O. Unlimited Bonds, Series A, (NATL-RE-IBC Insured), Partially Escrowed to Maturity, 5.00%, 8/1/14		200		208
New York City G.O. Unlimited Bonds, Series A-1, 4.00%, 8/15/14		100		103
New York City G.O. Unlimited Bonds, Series B, 3.00%, 8/1/14		250		256
New York City G.O. Unlimited Bonds, Series C, 4.00%, 8/1/14		100		103
5.00%, 8/1/14		250		260
New York City G.O. Unlimited Bonds, Series D, Prerefunded, 5.00%, 10/15/13		150		150
New York City G.O. Unlimited Bonds, Series E, 4.00%, 8/1/14		545		562
5.00%, 8/1/14		250		260
5.00%, 8/1/14		170		177
New York City G.O. Unlimited Bonds, Series G, 5.00%, 8/1/14		460		478
5.00%, 8/1/14		300		312
5.00%, 8/1/14		150		156
5.00%, 8/1/15		350		380
New York City G.O. Unlimited Bonds, Series I (NATL-RE-IBC Insured), 5.00%, 8/1/14		100		104

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New York – 6.0% – continued
New York City G.O. Unlimited Bonds, Series K, 4.00%, 8/1/14		$100		$103
New York City G.O. Unlimited Bonds, Subseries F-1, Unrefunded Balance, 5.25%, 9/1/14		140		146
New York City G.O. Unlimited Bonds, Subseries F-1,Prerefunded, Escrowed to Maturity, 5.25%, 9/1/14		10		10
New York City G.O. Unlimited Bonds, Series E-1, 4.25%, 10/15/13		100		100
New York City G.O. Unlimited Bonds, Series H-1, 5.00%, 3/1/16		5,000		5,520
New York City G.O. Unlimited Bonds, Subseries G-3, 3.00%, 8/1/14		490		501
New York City G.O. Unlimited Refunding Bonds, Series F, 4.00%, 8/1/14		150		155
New York City Transitional Finance Authority Building Aid Revenue Bonds, Series S-2, Fiscal 2009 (State Aid Withholding), 5.00%, 7/15/14		205		213
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series A, Prerefunded, Escrowed to Maturity, 5.00%, 11/1/15		3,935		4,289
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series A, Unrefunded Balance, 5.00%, 11/1/15		1,065		1,168
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series B, Prerefunded, Escrowed to Maturity, 4.00%, 11/1/13		115		115
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series D, Fiscal 2011, 5.00%, 2/1/14		135		137

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New York – 6.0% – continued
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A-3, Escrowed to Maturity, 4.00%, 8/1/14		$200		$206
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B-3, 5.00%, 11/1/14		225		237
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B3, Escrowed to Maturity, 4.00%, 11/1/13		265		266
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries C-1, 4.00%, 11/1/14		210		219
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E, 5.00%, 11/1/15		300		329
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Subseries D-2, 5.00%, 11/1/13		350		351
5.00%, 11/1/14		350		360
New York City Transitional Finance Authority Future TRB, Series A, Unrefunded Balance, 5.00%, 11/1/14		95		100
New York City Transitional Finance Authority Future TRB, Series A, Prerefunded, Escrowed to Maturity, 5.00%, 11/1/14		75		79
New York City Transitional Finance Authority Recovery Revenue Bonds, Subseries 3B-1, 5.00%, 11/1/14		190		200
New York City Transitional Finance Authority Subordinated Future Tax Secured Revenue Bonds, Series B, Escrowed to Maturity, 5.00%, 11/1/15		2,470		2,699
New York City Transitional Finance Authority Subordinated Future Tax Secured Revenue Bonds, Series B, Unrefunded Balance, 5.00%, 11/1/15		5,930		6,502

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New York – 6.0% – continued
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		$2,130
5.00%, 10/1/17		2,880		3,287
New York State Dormitory Authority Personal Income Tax General Purpose Revenue Bonds, Series C, 4.00%, 3/15/14		185		188
New York State Dormitory Authority Revenue Bonds, Series A, Columbia University, 5.00%, 7/1/14		150		155
New York State Dormitory Authority Supported Debt Mental Health Services Facilities Revenue Bonds (State Appropriation Insured),Unrefunded Balance, 5.00%, 8/15/15		300		325
New York State Dormitory Authority Supported Debt Revenue Bonds, Series B, City University Consolidated Fifth General Resolution, 5.00%, 7/1/14		1,370		1,419
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		2,860
New York State Dormitory Authority Supported Debt University Educational Facilities Third General Revenue Bonds, Series A (NATL FGIC Insured), 5.00%, 5/15/14		100		103
New York State Dormitory Economic Development & Housing Authority Personal Income TRB, Series A, 5.00%, 12/15/13		230		232
4.00%, 12/15/14		100		105
New York State Dormitory Education Authority Personal Income TRB, Series A, 5.00%, 3/15/14		100		102
5.00%, 3/15/16		1,265		1,401
New York State Dormitory Education Authority Personal Income TRB, Series B, 4.00%, 3/15/14		350		356

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New York – 6.0% – continued
New York State Dormitory Education Personal Income TRB, Series F (AGM Insured), 5.00%, 3/15/14		$100		$102
New York State Dormitory Healthcare Authority Personal Income TRB, Series A, 4.00%, 3/15/14		150		153
New York State Economic Development & Housing Finance Agency Personal Income TRB, Series A, 4.00%, 3/15/15		100		106
New York State Environmental Facilities Corp. Clean Municipal Water & Drinking Revolving Funds Revenue Bonds, Series E, 5.00%, 6/15/14		250		259
New York State Environmental Facilities Corp. Clean Water & Drinking Revolving Funds Revenue Bonds, Subseries B, Municipal Water Finance Authority Project, 4.00%, 6/15/14		250		257
New York State Environmental Facilities Corp. Personal Income TRB, Series A, 5.00%, 12/15/13		120		121
4.00%, 12/15/14		350		366
4.00%, 12/15/14		100		105
New York State Environmental Facilities Corp. Revenue Bonds, Series C, 4.00%, 10/15/13		175		175
New York State Environmental Facilities Corp. Revenue Bonds, Series C, State Revolving Funds, 4.00%, 5/15/14		210		215
New York State Facilities Urban Development Corp. Personal Income TRB, Series A-1 (NATL FGIC Insured), 5.00%, 3/15/14		715		731
New York State Facilities Urban Development Corp. Revenue Bonds, Series A-1 (NATL FGIC Insured), Prerefunded, 5.00%, 3/15/14		485		496
New York State G.O. Unlimited Bonds, Series A, 3.50%, 3/1/14		200		203

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 65 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New York – 6.0% – continued
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series A, Senior Lien, 5.00%, 4/1/14		$100		$102
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series A, Sub Lien (G.O.of Corp. Insured), 5.00%, 4/1/14		430		441
New York State Thruway Authority Local Highway & Bridge Revenue Bonds, 5.00%, 4/1/15		4,500		4,814
New York State Thruway Authority Personal Income Tax Revenue Refunding Bonds, Series A, 5.00%, 3/15/14		100		102
New York State Thruway Authority Revenue Refunding Bonds, Bridge Service Contract, 5.00%, 4/1/14		300		307
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series A, 5.00%, 4/1/14		1,000		1,024
5.00%, 4/1/14		265		271
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series B, 5.00%, 4/1/14		3,000		3,073
New York State Thruway Transportation Authority Personal Income TRB, Series A, 4.00%, 3/15/14		175		178
4.00%, 3/15/14		150		153
New York State Thruway Transportation Authority Personal Income TRB, Series A, Escrowed to Maturity, 5.00%, 3/15/14		150		153
New York State University Dormitory Facilities Authority Supported Debt Revenue Bonds, Series B (NATL-RE Insured), 5.00%, 7/1/14		120		124
New York State Urban Development Corp. Personal Income TRB, Series A-1, 5.00%, 12/15/13		250		253
5.00%, 12/15/13		200		202
New York State Urban Development Corp. Personal Income TRB, Series C, 5.00%, 3/15/14		300		307

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
New York – 6.0% – continued
New York State Urban Development Corp. Personal Income TRB, Series D, 5.00%, 3/15/20		$2,850		$3,357
New York State Urban Development Corp. Revenue Refunding Bonds, Series D, 5.00%, 1/1/16		3,000		3,288
New York State Urban Development Corp. Service Contract Revenue Refunding Bonds (AGM Insured), 5.00%, 1/1/14		180		182
Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A (G.O.of Authority Insured), 5.00%, 11/15/13		335		337
Triborough Bridge & Tunnel Authority General Revenue Refunding Bonds, Series B (NATL FGIC-TCRS G.O. of Authority Insured), 5.25%, 11/15/13		100		101
				74,085
North Carolina – 3.2%
Charlotte COPS, Series B, 3.00%, 6/1/22		6,075		6,111
Mecklenburg County G.O. Unlimited Refunding Bonds, Series A, 4.00%, 8/1/14		100		103
Mecklenburg County G.O. Unlimited Refunding Bonds, Series C, 5.00%, 3/1/16		10,000		11,078
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series A, 4.00%, 2/1/14		100		101
New Hanover County Community College G.O. Unlimited Bonds, Series A, 5.00%, 6/1/17		2,500		2,875
North Carolina State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 3/1/14		350		357
North Carolina State G.O. Unlimited Refunding Bonds, Series C, 4.00%, 5/1/20		10,000		11,321
North Carolina State Public Improvement G.O. Unlimited Bonds, Series A, 5.50%, 3/1/14		500		511
University of North Carolina System Pool Revenue Bonds, Series A (Assured Guaranty Insured), 4.00%, 10/1/14		500		518

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 66 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
North Carolina – 3.2% – continued
Wake County G.O. Unlimited Refunding Bonds, Series D, 4.00%, 2/1/14		$500		$506
Wake County School G.O. Unlimited Bonds, Series A, 5.00%, 2/1/18		5,100		5,928
				39,409
North Dakota – 0.0%
North Dakota State PFA Revenue Bonds, Series A, State Revolving Fund Program, 4.00%, 10/1/14		200		208
Ohio – 4.6%
Cincinnati Various Purpose G.O. Unlimited Refunding Bonds, Series C, 5.00%, 12/1/14		150		158
Cincinnati Various Purpose G.O. Unlimited Bonds, Series A, 4.00%, 12/1/13		100		101
Cleveland State University Revenue Bonds (NATL FGIC Insured), Prerefunded, 5.00%, 6/1/14		115		119
Columbus G.O. Unlimited Refunding Bonds, Series 1, 5.00%, 7/1/19		5,000		5,910
Columbus Various Purpose G.O. Unlimited Bonds, Series A, 5.00%, 8/15/19		2,000		2,368
Franklin County G.O. Limited Refunding Bonds, 3.50%, 12/1/13		300		302
Hamilton County Sewer System Revenue Refunding Bonds, Series A, 5.00%, 12/1/17		1,150		1,332
Hamilton County Sewer System Revenue Refunding Bonds, Series A (NATL-RE Insured), 5.00%, 12/1/13		125		126
Miami University Receipts Revenue Refunding Bonds (AMBAC Insured), 3.63%, 9/1/14		100		103
Northeast Regional Sewer District Improvement Revenue Bonds (NATL-RE Insured), 5.00%, 11/15/13		100		101
Ohio State Building Authority Facilities Revenue Bonds, Series A, Juvenile Correction Building, 3.70%, 10/1/14		200		207

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Ohio – 4.6% – continued
Ohio State Building Authority Revenue Bonds, Series C, 4.00%, 10/1/14		$100		$104
5.00%, 10/1/15		200		218
Ohio State Building Facilities Authority Revenue Refunding Bonds, Series A, Administrative Building Project (AGM Insured), Prerefunded, 5.00%, 4/1/14		135		138
Ohio State Common Schools G.O. Unlimited Bonds, Series B, 5.00%, 6/15/19		5,000		5,897
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series A, 5.00%, 9/15/15		6,000		6,534
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/15/14		2,500		2,614
Ohio State Fresh Water Development Authority Revenue Bonds, Series A, 5.00%, 6/1/14		125		129
5.00%, 6/1/19		2,000		2,354
Ohio State Fresh Water Development Authority Revenue Refunding Bonds, Series B (AGM Insured), 5.50%, 6/1/14		150		155
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series C, 5.00%, 8/1/14		7,500		7,800
Ohio State Higher Educational Facility Commission Revenue Bonds, University Dayton Project (AMBAC Insured), Prerefunded, 5.00%, 12/1/14		600		633
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 2007-1 (AGM Insured), 4.00%, 6/15/14		200		205
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 2008-1, 5.50%, 6/15/14		120		125
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 2010-1, 5.00%, 6/15/14		125		129
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 3, 5.00%, 12/15/14		130		137

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 67 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Ohio – 4.6% – continued
Ohio State Mental Health Capital Facilities Revenue Bonds, Series II-B (State Appropriation Insured), Prerefunded, 5.25%, 6/1/14		$150		$155
Ohio State Natural Resources G.O. Unlimited Refunding Bonds, Series J, 5.00%, 10/1/13		100		100
Ohio State Parks & Recreation Capital Facilities Revenue Bonds, Series II-A (NATL-RE Insured), 4.00%, 12/1/14		100		104
Ohio State Third Frontier Research & Development G.O. Unlimited Bonds, Series A, 3.00%, 5/1/19		5,000		5,337
Ohio State University Revenue Bonds, Series A, Prerefunded, Escrowed to Maturity, 5.00%, 12/1/14		280		296
Ohio State University Revenue Bonds, Series A, Unrefunded Balance, 5.00%, 12/1/14		4,720		4,983
Ohio State Water Development Authority Revenue Bonds, Series B, 4.00%, 6/1/14		150		154
Ohio State Water Quality Development Authority PCR Refunding Bonds, 5.00%, 12/1/13		250		252
5.00%, 12/1/14		2,250		2,376
University of Akron Receipts Revenue Bonds, Series A (AGM Insured), 5.00%, 1/1/15		2,500		2,643
University of Cincinnati Receipts Revenue Bonds, Series C (Assured Guaranty Insured), 5.00%, 6/1/14		1,795		1,852
University of Cincinnati Receipts Revenue Bonds, Series D (AMBAC Insured), Prerefunded, 4.75%, 6/1/14		150		155
				56,406
Oklahoma – 0.2%
Oklahoma City G.O. Unlimited Bonds, 2.00%, 3/1/14		200		202
Oklahoma State Municipal Power Authority Revenue Bonds, Series A, 5.00%, 1/1/15		1,575		1,663

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Oklahoma – 0.2% – continued
Tulsa County Independent School District No. 1 Combined Purpose G.O. Unlimited Bonds, Series A, 2.00%, 6/1/14		$270		$273
Tulsa G.O. Unlimited Bonds, 4.00%, 3/1/14		200		203
				2,341
Oregon – 1.9%
Clackamas County Service District No. 1 Sewer System Revenue Bonds, Series B, 5.00%, 12/1/13		100		101
Oregon State Board Higher Education G.O. Unlimited Bonds, Series A, 5.00%, 8/1/17		2,380		2,748
Oregon State Department of Administrative Services COPS, Series A (AGM Insured), Prerefunded, 5.00%, 5/1/15		500		537
Oregon State Department of Administrative Services COPS, Series C, 5.00%, 11/1/14		2,895		3,047
Oregon State Department of Administrative Services Lottery Revenue Bonds, Series B (Moral Obligation Insured), 4.00%, 4/1/14		100		102
Oregon State Department of Administrative Services Lottery Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 4/1/14		100		102
Oregon State Department of Administrative Services Refunding COPS, Series D, 5.00%, 11/1/14		5,670		5,967
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series B, 5.00%, 11/15/13		150		151
Oregon State University System G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/1/20		2,020		2,408
Salem-Keizer Marion & Polk Counties School District No. 24J G.O. Unlimited Refunding Bonds (AGM School Board Guaranty Insured), 5.00%, 6/15/14		400		413
Tri-County Metropolitan Transportation District Payroll Tax & Grant Receipt Revenue Bonds, 4.00%, 11/1/17		5,000		5,371

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 68 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Oregon – 1.9% – continued
Washington County Clean Water Services Sewer Revenue Bonds, Series A, Senior Lien, 4.00%, 10/1/15		$2,435		$2,605
				23,552
Pennsylvania – 2.4%
Central Bucks School District G.O. Unlimited Bonds (AGM Insured State Aid Withholding), 5.00%, 5/15/15		100		108
Delaware County G.O. Unlimited Bonds, Series A, 3.00%, 10/1/13		115		115
Hempfield School District Lancaster County G.O. Unlimited Bonds, Series A (State Aid Withholding), 3.00%, 10/15/18		300		317
Pennsylvania State G.O. Unlimited Refunding & Projects Bonds, First Series (NATL-RE Insured), Prerefunded, 4.50%, 2/1/14		100		101
Pennsylvania State G.O. Unlimited Refunding Bonds, Second Series, 5.00%, 7/1/15		15,000		16,218
Pennsylvania State G.O. Unlimited Refunding Bonds, Third Series 2004, 5.25%, 7/1/14		150		156
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, University of Pennsylvania, 5.00%, 9/1/17		5,000		5,765
Philadelphia Water & Wastewater Revenue Bonds, Series A, 4.00%, 1/1/17		500		547
Trinity Area School District G.O. Unlimited Bonds (NATL FGIC Insured State Aid Withholding), Prerefunded, 4.00%, 11/1/13		100		100
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		6,275
				29,702

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Rhode Island – 0.0%
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Subseries A, 5.00%, 10/1/14		$150		$157
South Carolina – 1.7%
Charleston G.O. Unlimited Bonds (State Aid Withholding), 3.00%, 3/1/14		300		304
Horry County School District G.O. Unlimited Refunding Bonds (SCSDE Insured), 5.00%, 3/1/18		5,705		6,571
Lancaster Educational Assistance Program, Inc. Installment Purchase Revenue Bonds, School District Lancaster County Project, Prerefunded, 5.25%, 12/1/14		645		682
Lexington County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (SCSDE Insured), 5.00%, 3/1/19		2,120		2,487
South Carolina State Capital Improvements G.O. Unlimited Bonds, 5.00%, 3/1/15		10,000		10,671
South Carolina State University Infrastructure G.O. Unlimited Bonds, Series B (State Aid Withholding), 5.00%, 11/1/14		200		210
				20,925
Tennessee – 1.6%
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		5,485
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		225
Metropolitan Government Nashville & Davidson County Water & Sewer Revenue Refunding Bonds, Sub Lien, 5.00%, 7/1/20		1,500		1,749
Shelby County G.O. Unlimited Refunding Bonds, Series A, Prerefunded, Escrowed to Maturity, 5.00%, 4/1/15		995		1,065

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 69 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Tennessee – 1.6% – continued
Shelby County G.O. Unlimited Refunding Bonds, Series A, Unrefunded Balance, 5.00%, 4/1/15		$4,005		$4,287
Tennessee State G.O. Unlimited Bonds, Series A, 5.00%, 5/1/15		5,000		5,372
Tennessee State School Bond Authority Higher Educational Facilities Revenue Bonds, Series B, 2nd Program (State Intercept Program), 4.00%, 5/1/14		1,030		1,053
Williamson County G.O. Unlimited Refunding Bonds, 5.00%, 4/1/14		100		103
				19,339
Texas – 5.2%
Alamo Community College District Combined Fee Revenue Refunding Bonds (AMBAC Insured), Escrowed to Maturity, 4.00%, 11/1/14		100		104
Alamo Community College District G.O. Limited Tax Bonds, Series A (NATL-RE Insured), 5.00%, 8/15/14		170		177
Austin Electric Utility System Revenue Refunding Bonds (AGM Insured), 5.50%, 11/15/13		250		252
5.00%, 11/15/14		150		158
Austin Electric Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.00%, 11/15/13		150		151
Austin Public Property Finance Contractual G.O. Limited Bonds, 2.00%, 11/1/13		1,305		1,307
Austin Water & Wastewater System Revenue Refunding Bonds (NATL-RE Insured), 5.00%, 11/15/13		100		101
Austin Water & Wastewater System Revenue Refunding Bonds, Series A, 5.00%, 11/15/13		450		453
Brazosport Independent School District G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, 5.25%, 2/15/14		100		102

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Texas – 5.2% – continued
Bryan Independent School District G.O. Unlimited Bonds, Series B (PSF-Gtd.), 5.25%, 2/15/15		$200		$214
Carrollton G.O. Limited Refunding & Improvement Bonds, 2.00%, 8/15/14		555		563
Channelview Independent School District Building G.O. Unlimited Bonds, Series B (PSF-Gtd.), Prerefunded, 5.00%, 8/15/14		100		104
Comal Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, 5.00%, 2/1/14		100		102
5.00%, 2/1/14		100		102
Conroe Independent School District G.O. Unlimited Refunding & Schoolhouse Bonds (PSF-Gtd.), 5.50%, 2/15/14		200		204
Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series 2005-2 (PSF-Gtd.), 3.13%, 2/15/17		7,140		7,684
Cypress-Fairbanks Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 3.25%, 2/15/17		7,000		7,562
Dallas Area Rapid Transit Sales Tax Revenue Refunding Bonds, Senior Lien (AMBAC Insured), 5.00%, 12/1/14		700		739
Dallas County Schools Public Property Financial Contractual G.O. Limited Bonds, 3.00%, 12/1/13		250		251
Dallas Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.), 5.50%, 2/15/17		10,000		11,551
Dallas Waterworks & Sewer System Revenue Refunding Bonds, 5.00%, 10/1/15		250		273
Dallas Waterworks & Sewer System Revenue Refunding Bonds (AMBAC Insured), 5.00%, 10/1/13		250		250
Denton County Permanent Improvement G.O. Limited Refunding Bonds (NATL-RE Insured), Prerefunded, 4.50%, 7/15/15		200		215

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 70 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Texas – 5.2% – continued
El Paso Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/14		$200		$204
Fort Worth Water & Sewer Revenue Refunding Bonds, 5.00%, 2/15/17		1,120		1,271
Frisco G.O. Limited Refunding & Improvement Bonds (NATL-RE Insured), 5.25%, 2/15/14		100		102
5.25%, 2/15/15		100		107
Frisco Independent School District G.O. Unlimited Bonds (PSF-Gtd.), 5.25%, 8/15/15		210		229
Goose Creek Consolidated Independent School District House G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/14		115		117
Goose Creek Consolidated Independent School District Schoolhouse G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 2/15/16		500		551
Grapevine-Colleyville Independent School Building District G.O. Unlimited Refunding Bonds, Series A (NATL FGIC Insured), 4.25%, 8/15/14		200		207
Harris County Flood Control District G.O. Limited Tax Refunding Bonds, Series A, 4.13%, 10/1/13		250		250
Harris County Permanent Improvement G.O. Limited Refunding Bonds, Series A, 5.00%, 10/1/13		100		100
Houston Combined Utility System Revenue Refunding Bonds, Series C, First Lien, 5.00%, 11/15/13		300		302
Houston Higher Education Finance Corp. Revenue Bonds, Series A , Rice University Project, 4.00%, 5/15/14		250		256
Houston Independent School District G.O. Limited Refunding Bonds, Series A (PSF-Gtd.), 6.30%, 8/15/14		325		342
Houston Public Improvement G.O. Limited Bonds, Series E (AMBAC Insured), Prerefunded, 5.00%, 3/1/15		3,000		3,199
Houston Public Improvement G.O. Limited Refunding Bonds, Series A, 5.00%, 3/1/17		5,000		5,689

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Texas – 5.2% – continued
Houston Utility System Combined Revenue Refunding Bonds, Series A, First Lien (Assured Guaranty Insured), 3.50%, 11/15/15		$500		$532
Humble Independent School District Building G.O. Unlimited Bonds (NATL FGIC Insured), 5.00%, 2/15/14		500		509
Irving G.O. Limited Refunding & Improvement Bonds, Series A, Unrefunded Balance, 5.00%, 11/15/13		865		870
Klein Independent School District G.O. Unlimited Bonds (PSF-Gtd.), 5.50%, 8/1/15		295		323
La Joya Independent School District G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, 5.00%, 2/15/14		100		102
Lake Travis Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/14		100		102
Laredo G.O. Limited Refunding Bonds (AMBAC Insured), 5.00%, 8/15/14		125		130
Lewisville Water & Sewer System Revenue Refunding & Improvement Bonds, 4.00%, 2/15/14		125		127
Lower Colorado River Authority Revenue Refunding Bonds, Prerefunded, Escrowed to Maturity, 5.00%, 5/15/15		5		5
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Prerefunded, 5.75%, 5/15/15		270		294
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Prerefunded, Escrowed to Maturity, 5.00%, 5/15/15		65		70
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-2, Prerefunded, Escrowed to Maturity, 5.00%, 5/15/15		1,250		1,343
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-2, Unrefunded Balance, 5.00%, 5/15/15		260		279

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 71 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Texas – 5.2% – continued
Lubbock Certificates Obligation Waterworks G.O. Limited Bonds, Series A, 4.00%, 2/15/15		$220		$231
Lubbock Waterworks System G.O. Limited Certificates, 5.00%, 2/15/14		180		183
North Texas State Municipal Water District System Revenue Refunding & Improvement Bonds, 4.00%, 9/1/14		100		103
Northeast Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 8/1/15		150		163
Northside Independent School District Building G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 8/15/18		650		742
Nueces County G.O. Limited Certificates (AMBAC Insured), Prerefunded, 5.00%, 2/15/14		400		407
Pasadena G.O. Limited Bonds (NATL-RE Insured), Prerefunded, 4.50%, 2/15/14		105		107
Pearland G.O. Limited Certificates (AMBAC Insured), Prerefunded, 4.63%, 3/1/14		100		102
Port Houston Authority G.O. Unlimited Refunding Bonds, Series B (NATL-RE Insured), 5.00%, 10/1/13		500		500
Port Neches-Groves Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), 3.75%, 2/15/14		100		101
Richardson G.O. Limited Refunding Bonds, 4.00%, 2/15/18		1,000		1,113
Richardson Independent School District Building G.O. Unlimited Refunding Bonds, 5.00%, 2/15/14		100		102
San Antonio Electric & Gas System Revenue Bonds, Series A, 5.00%, 2/1/14		445		452
Southlake G.O. Limited Refunding Bonds, 4.00%, 2/15/15		100		105
Tarrant County G.O. Limited Tax Bonds, 4.13%, 7/15/14		150		155

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Texas – 5.2% – continued
Texas State PFA G.O. Unlimited Refunding Bonds, Series A, 5.00%, 10/1/15		$7,000		$7,645
Texas State PFA Revenue Bonds, Building & Procurement Commission (NATL-RE Insured), 4.50%, 8/1/14		135		140
Texas State PFA Unemployment Compensation Revenue Bonds, Series A, 5.00%, 7/1/14		615		637
Texas State Transportation Commission Revenue Bonds, First Tier, 5.00%, 4/1/15		155		166
University of Houston Consolidated Revenue Refunding Bonds (AGM Insured), 5.00%, 2/15/14		350		356
University of Texas Financing System Revenue Bonds, Series A, 5.00%, 8/15/14		175		182
Weatherford Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 4.00%, 2/15/15		150		158
Williamson County Road G.O. Unlimited Bonds (AMBAC Insured), 5.00%, 2/15/15		150		159
				64,240
Utah – 2.5%
Alpine School District Building G.O. Unlimited Refunding Bonds, Series B (School Board Guaranty Program), 5.00%, 3/15/18		2,800		3,252
Davis County School District G.O. Unlimited Refunding Bonds, Series C (School Board Guaranty Program), 5.00%, 6/1/18		7,540		8,793
Nebo School District G.O. Unlimited Refunding Bonds, Series A (School Board Guaranty Program), 3.00%, 7/1/14		130		133
2.00%, 7/1/20		7,050		6,923
Uintah County Municipal Building Authority Lease Revenue Bonds, 4.50%, 6/1/14		650		668
Utah State G.O. Unlimited Bonds, Series A, 5.00%, 7/1/15		10,160		10,990

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 72 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Utah – 2.5% – continued
Utah State G.O. Unlimited Bonds, Series B, Prerefunded, 5.00%, 7/1/14		$400		$414
				31,173
Virginia – 6.2%
Arlington County G.O. Unlimited Refunding Bonds, Series D, 4.00%, 8/1/15		3,235		3,453
Fairfax County G.O. Unlimited Refunding & Improvement Bonds, Series A (State Aid Withholding), Prerefunded, 4.50%, 4/1/14		745		761
Fairfax County Public Improvement G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding), 5.00%, 10/1/15		10,235		11,180
Loudoun County G.O. Unlimited Bonds, Series B, 5.00%, 11/1/17		10,000		11,611
Loudoun County Public Improvement G.O. Unlimited Bonds, Series B (State Aid Withholding), 5.00%, 12/1/13		1,000		1,008
Loudoun County Public Improvement G.O. Unlimited Refunding Bonds, Series A (State Aid Withholding), 4.00%, 12/1/17		3,010		3,377
Norfolk Capital Improvement G.O. Unlimited Bonds, Series A, 2.25%, 11/1/13		675		676
Suffolk Public Improvement G.O. Unlimited Bonds (NATL-RE Insured), Prerefunded, 4.13%, 8/1/14		120		124
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series B, Public Higher Educational Financing Program (State Intercept Program), 5.00%, 9/1/14		350		366
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series C, 21st Century College (State Intercept Program), 4.00%, 2/1/15		100		105
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects, 5.00%, 5/15/18		3,465		4,026

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Virginia – 6.2% – continued
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects (State Appropriation Insured), 5.00%, 5/15/17		$2,725		$3,117
Virginia State Commonwealth Transportation Board Revenue Bonds, Series A-1, Capital Projects (State Appropriation Insured), 5.00%, 5/15/14		100		103
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects, 5.00%, 5/15/20		8,170		9,685
Virginia State G.O. Unlimited Bonds, Series A, Prerefunded, 4.50%, 6/1/15		250		267
Virginia State Polytechnic Institute & State University Revenue Refunding Bonds, Series C, General University Services System (AMBAC Insured), 4.00%, 6/1/14		250		256
Virginia State Public Building Authority Facilities Revenue Bonds, Series A, 5.00%, 8/1/14		260		271
Virginia State Public School Authority Revenue Bonds, Series B-1, School Financing 1997 (State Aid Withholding), 5.00%, 8/1/16		1,000		1,121
Virginia State Public School Financing Authority Revenue Refunding Bonds, Series C, (State Aid Withholding), 5.00%, 8/1/19		10,000		11,771
Virginia State Resources Authority Clean Water Revenue Refunding Bonds, Revolving Fund, 5.00%, 10/1/20		3,500		4,186
Virginia State Resources Authority Infrastructure Non Ace Revenue Bonds, Senior Series A, Pooled Financing, 5.00%, 11/1/15		4,025		4,405
Virginia State Resources Authority Infrastructure Revenue Bonds, Series A, Pooled Financing, 5.00%, 11/1/20		1,930		2,300
Virginia State Resources Authority Infrastructure Revenue Bonds, Subseries A, 5.00%, 11/1/13		250		251

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 73 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Virginia – 6.2% – continued
Virginia State Resources Authority Infrastructure Revenue Bonds, Series A, Pooled Financing, 3.00%, 11/1/13		$115		$115
Virginia State Resources Authority Infrastructure Senior Revenue Bonds, Unrefunded Balance, 3.00%, 11/1/13		130		130
Virginia State Resources Authority Sub-Clean Water State Revolving Fund Revenue Bonds, Prerefunded, 5.00%, 10/1/17		1,750		2,026
				76,691
Washington – 4.7%
Central Puget Sound Regional Transportation Authority Sales & Use TRB, Series A (AMBAC Insured), 3.63%, 11/1/13		100		100
Energy Northwest Electric Revenue Refunding Bonds, Series A, Project 3, 5.00%, 7/1/15		5,000		5,404
Energy Northwest Electric Revenue Refunding Bonds, Series A, Project No. 1, 5.00%, 7/1/14		3,500		3,627
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project No. 1, 5.50%, 7/1/14		1,600		1,664
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project No. 3, 5.00%, 7/1/14		225		233
5.00%, 7/1/18		10,000		11,640
King & Snohomish Counties School District No. 417 Northshore G.O. Unlimited Refunding Bonds (School Board Guaranty Program), 4.00%, 12/1/18		2,500		2,778
5.00%, 12/1/20		2,000		2,348
King County G.O. Limited Refunding Bonds, Series A, Prerefunded, 5.25%, 12/1/13		120		121
King County School District No. 1 Seattle G.O. Limited Refunding Bonds, 2.00%, 12/1/13		100		100

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Washington – 4.7% – continued
King County School District No. 415 Kent G.O. Unlimited Refunding Bonds, Series B (AGM School Board Guaranty Insured), 5.50%, 6/1/14		$70		$73
King County Sewer Revenue Refunding Bonds, Series B, 5.00%, 1/1/14		200		202
Lewis County Public Utility District No. 1 Cowlitz Falls Hydroelectric Project Revenue Refunding Bonds, 5.00%, 10/1/17		600		687
Redmond G.O. Limited Bonds, 3.50%, 12/1/13		100		101
Seattle Water System Revenue Refunding & Improvement Bonds, 5.00%, 2/1/14		150		152
Snohomish County G.O. Limited Bonds, Unrefunded Balance (NATL-RE Insured), 5.00%, 12/1/13		280		282
Snohomish County Public Utility District No. 1 Electric Revenue Refunding Bonds (AGM Insured), 5.00%, 12/1/17		3,000		3,274
Snohomish County Public Utility District No. 1 Generation System Revenue Refunding Bonds, 4.00%, 12/1/13		200		201
Snohomish County Public Utility System District No. 1 Electric Revenue Refunding Bonds, 2.00%, 12/1/13		100		100
Snohomish County School District No. 16 Arlington G.O. Unlimited Refunding Bonds (NATL FGIC School Board Guaranty Insured), Prerefunded, 5.25%, 12/1/14		250		265
Tacoma G.O. Limited Tax Refunding Bonds, 5.00%, 12/1/18		600		693
Thurston County G.O. Limited Tax Refunding Bonds (AMBAC Insured), 5.00%, 11/1/13		100		100
Washington Federal Highway Grant Anticipation Revenue Bonds, Series C, Senior 520 Corridor Program, 5.00%, 9/1/18		4,750		5,492
Washington State G.O. Unlimited Refunding Bonds, Series R-2011-A, 5.00%, 1/1/18		5,200		5,996

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 74 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Washington – 4.7% – continued
Washington State Various Purpose G.O. Unlimited Bonds, Series D, 5.00%, 2/1/21		$9,795		$11,566
Washington State Various Purpose G.O. Unlimited Bonds, Series D (AMBAC Insured), Prerefunded, 5.00%, 1/1/14		250		253
Washington State Various Purpose G.O. Unlimited Bonds, Series F, 4.50%, 7/1/15		250		268
				57,720
West Virginia – 0.0%
West Virginia State Infrastructure G.O. Unlimited Refunding Bonds (NATL FGIC Insured), 5.00%, 11/1/13		100		100
Wisconsin – 1.4%
Madison Area Technical College G.O. Unlimited Promissory Notes, Series B, 2.00%, 3/1/14		150		151
Madison G.O. Unlimited Bonds, Series A, Promissory Notes, 3.75%, 10/1/13		100		100
Madison Metropolitan School District G.O. Unlimited Refunding Bonds, 2.00%, 3/1/14		100		101
Milwaukee County G.O. Unlimited Refunding Bonds, Series A, 3.40%, 8/1/14		5,000		5,132
Milwaukee County G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured), 5.00%, 10/1/13		200		200
Milwaukee G.O. Unlimited Bonds, Series N1, Promissory Notes, 5.00%, 2/15/16		4,300		4,745
Milwaukee G.O. Unlimited Promissory & Corporate Notes, 5.00%, 5/1/20		1,175		1,389
Northland Pines School District G.O. Unlimited Refunding Bonds (AGM Insured), Prerefunded, 5.25%, 4/1/14		120		123
Racine County Law Enforcement Center G.O. Unlimited Bonds (AMBAC Insured), 4.00%, 3/1/14		100		102

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 91.7% – continued
Wisconsin – 1.4% – continued
Wisconsin State G.O. Unlimited Bonds, Series D, 5.00%, 5/1/15		$4,625		$4,967
Wisconsin State Transportation Revenue Bonds, Series A (NATL FGIC Insured), Prerefunded, 4.50%, 7/1/15		250		268
				17,278
Total Municipal Bonds
(Cost $1,104,823)				1,128,397
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 7.7%
AIM Tax-Free Cash Reserve Portfolio		96,018		$96
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (2)(3)		94,930,783		94,931
Total Investment Companies
(Cost $95,027)				95,027
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.1%
New York State Dormitory Non State Supported Debt VRDB, Series I, School Districts Financing Program (State Aid Withholding), 2.00%, 10/1/13		$1,685		$1,685
Total Short-Term Investments
(Cost $1,685)				1,685
Total Investments – 99.5%
(Cost $1,201,535)				1,225,109
Other Assets less Liabilities – 0.5%				6,016
NET ASSETS – 100.0%				$1,231,125

(1) When-Issued Security.

(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, 2013, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $91,114,000 with net purchase of approximately $3,817,000 during the six months ended September 30, 2013.

Percentages shown are based on Net Assets.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 75 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the industry sectors for the Short-Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Financials		7.8%
General		14.7
General Obligations		37.3
School District		13.6
Transportation		5.2
Water		5.1
All other sectors less than 5%		16.3
Total		100.0%

At September 30, 2013, the credit quality distribution for the Short-Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		26.7%
AA		53.9
A		10.8
Not Rated		0.6
SP1/MIG1		0.2
Cash and Equivalents		7.8
Total		100.0%

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

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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Municipal Bonds		$–		$1,128,397	(1)		$–		$1,128,397
Investment Companies		95,027		–			–		95,027
Short-Term Investments		–		1,685			–		1,685
Total Investments		$95,027		$1,130,082			$–		$1,225,109

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 76 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6%
Alabama – 0.1%
Birmingham Convertible G.O. Unlimited CABS, Series A, 0.43%, 3/1/27 (1)		$1,000		$907
Alaska – 1.5%
Alaska State General Housing Finance Corp. Revenue Bonds, Series B (NATL-RE G.O. of Corp. Insured), 5.25%, 12/1/25		3,000		3,198
Alaska State Municipal Bond Bank Authority Revenue Bonds, Series 1, 5.00%, 2/1/43		10,000		10,331
				13,529
Arizona – 1.8%
Arizona State Transportation Board Highway Revenue Bonds, Series B, 5.00%, 7/1/24		5,000		5,666
Arizona State Transportation Board Highway Revenue Bonds, Subseries A, 5.00%, 7/1/26		5,245		5,901
Phoenix Civic Plaza Improvement Corp. Excise TRB, Subseries A (BHAC-CR FGIC Insured), 5.00%, 7/1/41		5,000		5,052
				16,619
California – 13.4%
Bay Area Toll Authority Toll Bridge Revenue Bonds, Series F-1, 5.00%, 4/1/34		5,000		5,216
Brentwood Infrastructure Financing Authority Water Revenue Bonds, 5.75%, 7/1/38		1,500		1,587
California State Educational Facilities Authority Revenue Bonds, University Southern California, 4.75%, 10/1/28		10,000		10,437
California State Educational Facilities Authority Revenue Bonds, Stanford University, 5.25%, 4/1/40		16,860		19,976
California State G.O. Unlimited Refunding Bonds, 6.25%, 11/1/34		2,830		3,309
California State Various G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, 5.75%, 5/1/30		75		75

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
California – 13.4% – continued
California State Various Purpose G.O. Unlimited Bonds, 4.75%, 6/1/35		$5,000		$4,973
Carlsbad Unified School District Convertible Election G.O. Unlimited CABS, Series B, 1.78%, 5/1/34 (1)		2,500		1,914
Long Beach Community College District Convertible G.O. Unlimited CABS, Series B, Election of 2008, 1.64%, 8/1/49 (1)		5,000		1,462
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), 5.00%, 5/15/21		1,000		1,062
Los Angeles County Sanitation Districts Financing Authority Revenue Bonds, Series A, Capital Project (AGM Insured), Prerefunded, 5.00%, 10/1/13		1,000		1,000
Los Angeles Wastewater System Revenue Bonds, Series A, 5.00%, 6/1/43		2,955		3,086
Los Angeles Wastewater System Revenue Refunding Bonds, Subseries B, 5.00%, 6/1/29		7,250		7,910
Metropolitan Water District of Southern California State Revenue Bonds, Series A, 5.00%, 7/1/32		6,105		6,489
Modesto Irrigation District Capital Improvements COPS, Series A, 5.75%, 10/1/29		7,020		7,716
Mount San Antonio Community College District Convertible G.O. Unlimited CABS, Series A, Election of 2008, 2.72%, 8/1/28 (1)		3,000		1,992
Mount San Antonio Community College District G.O. Unlimited CABS, Series A, Election of 2008, 3.77%, 8/1/29 (1)		1,855		748
Riverside County Transportation Commission Sales Limited TRB, Series A, 5.25%, 6/1/39		1,000		1,065
Sacramento County Airport System Senior Revenue Bonds, 5.00%, 7/1/28		1,280		1,359
San Diego Community College District G.O. Unlimited CABS, Election of 2006, 3.73%, 8/1/27 (1)		4,000		1,958

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 77 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
California – 13.4% – continued
San Francisco City & County Airports Commission Revenue Bonds, Series E, 5.25%, 5/1/32		$5,000		$5,351
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, 6.00%, 7/1/43		1,100		1,238
University of California General Revenue Bonds, Series AF, 5.00%, 5/15/29		5,000		5,509
University of California General Revenue Bonds, Series AI, 5.00%, 5/15/38		7,500		7,904
University of California General Revenue Bonds, Series AK, 5.00%, Mandatory Put 5/15/23		5,000		5,839
University of California General Revenue Bonds, Series Q, 5.25%, 5/15/27		2,500		2,796
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, 5.50%, 8/1/33		7,000		7,766
William S. Hart Union High School District G.O. Unlimited Bonds, Series C, Elecion of 2008, 4.00%, 8/1/38		5,000		4,416
				124,153
Colorado – 2.4%
Colorado State Board of Governors University Enterprise System Revenue Refunding Bonds, Series A (State Higher Education Intercept Program), 5.00%, 3/1/43		10,000		10,378
Denver City & County Airport System Revenue Bonds, Series A, 5.25%, 11/15/29		3,000		3,168
Denver City & County Special Facilities Airport Revenue Bonds, Series A (AMT), Rental Car Project (NATL-RE Insured), 6.00%, 1/1/14		2,275		2,286
Regional Transportation District Sales Tax Revenue Refunding Bonds, Series A, FasTracks Project, 5.00%, 11/1/29		5,630		6,379
				22,211

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Connecticut – 0.1%
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		$645		$679
Delaware – 0.6%
Delaware State G.O. Unlimited Bonds, 5.00%, 7/1/19		3,665		4,354
Delaware State Housing Authority Senior SFM Revenue Bonds, Series A (AMT) (AGM Insured), 5.80%, 7/1/35		865		903
				5,257
District of Columbia – 2.6%
District of Columbia Income Tax Secured Revenue Bonds, Series C, 5.00%, 12/1/32		2,000		2,163
District of Columbia University Revenue Bonds, Series D, Georgetown University (BHAC-CR Insured), 5.50%, 4/1/36		1,010		1,098
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, 5.50%, 10/1/39		20,000		21,355
				24,616
Florida – 4.3%
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/24		1,235		1,364
5.00%, 9/1/25		1,000		1,091
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), 5.00%, 9/1/23		2,500		2,687
Florida State Board of Education G.O. Unlimited Refunded Bonds, Escrowed to Maturity, 9.13%, 6/1/14		285		302
Florida State Broward County G.O. Unlimited Bonds, Escrowed to Maturity, 10.00%, 7/1/14		3,105		3,333
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, 5.25%, 7/1/37		10,000		10,841

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 78 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Florida – 4.3% – continued
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 6.25%, 10/1/31		$3,000		$3,419
Florida State Municipal Power Agency Revenue Refunding Bonds, Stanton Project, 5.50%, 10/1/19		500		594
Miami-Dade County Aviation International Airport Revenue Bonds, Series A, 5.50%, 10/1/29		2,500		2,678
Miami-Dade County Aviation Revenue Refunding Bonds, Series B, 5.00%, 10/1/24		1,820		1,995
Orlando Utilities Commission Revenue Refunding Bonds, Subseries D, Escrowed to Maturity, 6.75%, 10/1/17		5,845		6,520
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15		4,830		4,982
				39,806
Georgia – 2.3%
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, 5.50%, 1/1/38		7,500		8,213
Georgia State G.O. Unlimited Bonds, Series D, 5.00%, 2/1/26		4,110		4,784
Georgia State G.O. Unlimited Refunding Bonds, Series C, 4.00%, 10/1/22		5,000		5,618
Georgia State Municipal Electric Authority Revenue Bonds, Series B, Non-Callable Certificates (FGIC-TCRS Insured), 6.38%, 1/1/16		2,300		2,499
				21,114
Hawaii – 2.9%
Hawaii State Airports System Revenue Bonds, Series A, 5.25%, 7/1/29		5,000		5,305
Honolulu City & County G.O. Unlimited Bonds, Series D, 5.25%, 9/1/34		1,000		1,108
Honolulu City & County Wastewater System Revenue Bonds, Senior Series A (NATL Insured), 5.00%, 7/1/35		15,000		15,629

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Hawaii – 2.9% – continued
University of Hawaii Revenue Bonds, Series A, 5.25%, 10/1/34		$5,000		$5,337
				27,379
Illinois – 10.5%
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		5,182
Chicago O’Hare International Airport Revenue Refunding Bonds, Series B (AMT), Passenger Facilities Charge, 5.00%, 1/1/26		2,500		2,596
Cook County Sales TRB, 5.00%, 11/15/37		10,000		10,198
Illinois State Educational Facilities Authority Revenue Bonds, Northwestern University, 5.00%, 12/1/38		5,505		5,533
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 6.00%, 3/1/38		4,850		5,132
5.25%, 3/1/40		2,500		2,571
Illinois State Finance Authority Revenue Bonds, Series A, Depaul University, 6.13%, 10/1/40		5,000		5,487
Illinois State Finance Authority Revenue Bonds, Series B, University of Chicago, 5.75%, 7/1/33		3,200		3,500
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL Insured), 5.25%, 2/1/27		5,000		5,331
Illinois State Toll Highway Authority Revenue Bonds, Series A, 5.00%, 1/1/38		10,000		9,985
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B, 5.50%, 1/1/33		10,500		11,327
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B (BHAC-CR Insured), 5.50%, 1/1/33		5,000		5,418

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 79 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Illinois – 10.5% – continued
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series B, McCormick Place Project (AGM Insured), 5.00%, 6/15/50		$12,500		$12,384
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series B-2, McCormick Project, 5.00%, 6/15/50		5,000		4,884
Regional Transportation Authority Revenue Bonds, Series A (AGM G.O. of Authority Insured), 5.75%, 6/1/34		2,900		3,267
Springfield Water Revenue Bonds, 5.50%, 3/1/32		2,300		2,491
				97,291
Indiana – 1.1%
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority, 5.25%, 10/1/38		2,500		2,616
Indiana State Office Building Commission Revenue Bonds, Series B (NATL-RE Insured), Escrowed to Maturity, 7.40%, 7/1/15		3,880		4,171
Indianapolis Gas Utility Revenue Refunding Bonds, Series B (NATL Insured), 3.50%, 6/1/18		3,280		3,503
				10,290
Louisiana – 1.8%
East Baton Rouge Parish Sewer Commission Revenue Bonds, Series A, 5.25%, 2/1/39		5,000		5,278
Louisiana State G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		10,000		11,793
				17,071
Maryland – 2.0%
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series B, 5.00%, 8/1/16		5,355		6,014
Maryland State G.O. Unlimited Bonds, Series B, 5.00%, 8/1/21		5,610		6,554

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Maryland – 2.0% – continued
Maryland State G.O. Unlimited Refunding Bonds, First Series B, 4.50%, 8/1/21		$5,000		$5,794
				18,362
Massachusetts – 4.8%
Massachusetts State Bay Transportation Authority Sales Tax Revenue Refunding Bonds, Senior Series A-1, 5.25%, 7/1/33		5,000		5,620
Massachusetts State G.O. Limited Refunding Bonds, Series B, 5.25%, 8/1/21		2,500		3,016
5.00%, 8/1/23		2,500		2,980
Massachusetts State Health & Educational Facilities Authority Partners Healthcare Revenue Bonds, Series J1, 5.25%, 7/1/29		5,000		5,297
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series N, Massachusetts Institute of Technology (G.O. of University Insured), 5.00%, 7/1/19		5,000		5,704
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, 5.00%, 8/15/15		645		701
Massachusetts State School Building Authority Sales TRB, Series A-2012-2 (AGM Insured), Prerefunded, 5.00%, 8/15/15		3,000		3,260
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 14, State Revolving Fund, 5.00%, 8/1/27		10,000		11,253
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Subseries A, MWRA Program, 6.00%, 8/1/19		3,000		3,699
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (AGM Insured), 5.25%, 8/1/36		2,520		2,823
				44,353
Michigan – 2.4%
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I-A, 5.50%, 10/15/45		2,565		2,627

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 80 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Michigan – 2.4% – continued
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II-A, 5.38%, 10/15/36		$5,000		$5,101
Michigan State Hospital Finance Authority Revenue Bonds, Series B, Trinity Health Credit Group, 5.00%, 12/1/48		5,000		4,857
Michigan State University General Revenue Bonds, Series A, 5.00%, 8/15/41		9,150		9,459
				22,044
Minnesota – 0.6%
Farmington Independent School District No. 192 G.O. Unlimited Bonds, Series B, School Building Project (AGM Insured School District Credit Program), 5.00%, 2/1/26		5,000		5,256
Mississippi – 0.0%
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), 5.40%, 6/1/38		20		20
Missouri – 0.6%
Bi-State Development Agency of the Missouri-Illinois Metropolitan District Mass Transit Refunding Sales TRB, Series A, Combined Lien, 5.00%, 10/1/28		5,000		5,338
Nebraska – 1.4%
Omaha Public Power District Revenue Bonds, Series B, 5.00%, 2/1/28		5,355		5,863
5.00%, 2/1/29		4,500		4,885
Omaha Public Power District System Revenue Bonds, Series A, 5.50%, 2/1/39		2,500		2,725
				13,473
Nevada – 0.2%
Clark County Airport System Revenue Bonds, Series C, Sub Lien (AGM Insured), 5.00%, 7/1/26		1,670		1,792

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
New Hampshire – 1.2%
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, Health University System, 5.25%, 6/1/39		$10,000		$10,799
New Jersey – 0.5%
New Jersey State Turnpike Authority Growth & Income Securities Revenue Bonds, Series B (AMBAC Insured), 1.33%, 1/1/35 (1)		5,000		4,697
New Mexico – 0.2%
New Mexico State Mortgage Finance Authority SFM Revenue Bonds, Series I-C-2 (Collateralized by GNMA/ FNMA/FHLMC Securities), 5.00%, 9/1/26		2,155		2,246
New York – 17.5%
Long Island Power Authority General Revenue Bonds, Series A, 6.00%, 5/1/33		5,000		5,655
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A, 5.50%, 11/15/39		10,000		10,709
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 11/15/16		5,000		5,670
Metropolitan Transportation Authority Dedicated TRB, Series B, 5.00%, 11/15/34		5,000		5,208
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.25%, 11/15/26		5,000		5,452
New York City G.O. Unlimited Bonds, Subseries F-1, 5.00%, 3/1/37		5,000		5,233
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Series A, Fiscal 2009, 5.75%, 6/15/40		10,000		11,091
New York City Transitional Finance Authority Future TRB (NATL-RE FGIC Insured), Unrefunded Balance, 5.25%, 2/1/17		120		121
New York City Transitional Finance Authority Future TRB, Subseries F-1, 5.00%, 2/1/27		5,000		5,597
5.00%, 2/1/36		5,000		5,270

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 81 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
New York – 17.5% – continued
New York G.O. Unlimited Bonds, Series H, 5.00%, 8/1/22		$2,255		$2,644
New York State Dormitory Authority General Purpose Personal Income Tax Revenue Refunding Bonds, Series A, 5.00%, 12/15/23		5,000		5,854
New York State Dormitory Authority General Purpose Personal Income TRB, Series A, 5.00%, 2/15/29		6,440		7,066
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		5,625
New York State Dormitory Authority Personal Income TRB, Series B, 5.00%, 3/15/42		2,000		2,078
New York State Dormitory Authority Revenue Bonds, Series A, Court Facilities Lease Issue (AMBAC Insured State Intercept Program), 5.50%, 5/15/28		5,000		5,830
New York State Dormitory Education Authority Personal Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), 5.50%, 3/15/30		5,000		5,885
New York State Dormitory Education Authority Personal Income TRB, Series B, 5.75%, 3/15/36		11,980		13,397
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series B, Municipal Water Revolving Funds, 5.00%, 6/15/41		10,000		10,508
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		5,884
New York State G.O. Unlimited Bonds, Series E, 5.00%, 12/15/30		5,000		5,445
New York State Thruway Transportation Authority Personal Income TRB, Series A, 5.25%, 3/15/21		5,000		5,720

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
New York – 17.5% – continued
New York State University Dormitory Authority Non State Supported Debt Revenue Bonds, Series A, 5.00%, 7/1/43 (2)		$2,500		$2,596
New York State Urban Development Corp. Personal Income TRB, Series D, 5.00%, 3/15/25		5,000		5,748
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 10/15/19		5,000		5,247
5.00%, 10/15/24		10,000		10,467
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Series B-1C, 5.50%, 6/1/19		1,945		1,962
				161,962
North Carolina – 2.4%
Charlotte COPS, Series B, 3.00%, 6/1/22		10,000		10,059
Charlotte Mecklenburg Hospital Authority Carolinas Healthcare System Revenue Refunding Bonds, Series A, 3.50%, 1/15/32		2,145		1,735
North Carolina State Eastern Municipal Power Agency System Revenue Bonds, Series A, Escrowed to Maturity, 6.50%, 1/1/18		2,655		3,244
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series B (NATL-RE-IBC Insured), 6.00%, 1/1/22		6,015		7,330
				22,368
Ohio – 1.0%
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B, 5.00%, 8/1/22		2,500		2,972
Ohio State Infrastructure Improvement G.O. Unlimited Refunding Bonds, Series B, 5.00%, 9/1/21		5,000		5,939
				8,911
Oregon – 0.3%
Oregon State G.O. Unlimited Refunding Bonds, Series N, 5.00%, 12/1/23		2,845		3,313

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 82 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Pennsylvania – 0.7%
Pennsylvania State Financing EDA Revenue Bonds, Series A, University of Pittsburgh Medical Center, 5.00%, 7/1/43 (2)		$3,000		$2,963
Philadelphia Water & Wastewater Revenue Bonds, Series A, 5.00%, 1/1/23		3,500		4,004
				6,967
Rhode Island – 0.2%
Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series B, Consolidated Capital Development Loan, 5.00%, 10/15/28		1,800		1,940
South Carolina – 2.2%
Piedmont Municipal Power Agency Electric Revenue Bonds, Series 2004 (BHAC-CR MBIA Insured), Unrefunded Balance, 5.38%, 1/1/25		5,995		7,047
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper Project, 5.50%, 1/1/38		13,000		13,725
				20,772
Tennessee – 1.3%
Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding Bonds, 5.00%, 7/1/21		5,000		5,938
Metropolitan Government of Nashville & Davidson County Water & Sewer Revenue Bonds, 5.00%, 7/1/40		6,315		6,623
				12,561
Texas – 6.2%
Dallas Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), 6.38%, 2/15/34		5,000		5,806
Dallas-Fort Worth International Airport Joint Revenue Bonds, Series A (AMT) (NATL-RE Insured), Partially Prerefunded, 5.50%, 11/1/20		835		838
Denton County Permanent Improvement G.O. Limited Refunding Bonds, 5.00%, 7/15/22		1,780		2,072

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Texas – 6.2% – continued
Frisco Independent School District Building G.O. Unlimited Bonds, Series A (PSF-Gtd.), 6.00%, 8/15/38		$5,000		$5,680
Grand Prairie Independent School District G.O. Unlimited Refunding CABS, 3.68%, 8/15/29(1)		12,505		4,960
Houston Community College G.O. Limited Bonds, 5.00%, 2/15/36		5,625		5,865
Leander Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 8/15/32		5,000		5,010
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, 6.25%, 5/15/31		10,000		11,215
Socorro Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 8/15/38		5,000		5,325
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds, Methodist Hospital of Dallas, 5.25%, 10/1/29		5,000		5,312
Tyler Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 2/15/38		2,500		2,656
University of Houston Consolidated Revenue Refunding Bonds, Series A, 5.00%, 2/15/27		2,500		2,740
				57,479
Utah – 0.6%
University of Utah General Revenue Bonds, Series A, 5.00%, 8/1/43		5,000		5,229
Virginia – 2.4%
Norfolk Water Revenue Refunding Bonds, 5.00%, 11/1/21		1,500		1,783
Richmond Public Utility Revenue Refunding Bonds, Series A, 5.00%, 1/15/38		5,000		5,285
5.00%, 1/15/43		8,500		8,918

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 83 TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL BONDS – 96.6% – continued
Virginia – 2.4% – continued
Virginia State College Building Authority Education Facilities Revenue Bonds, Series A, 21st Century College and Equipment, 5.00%, 2/1/27		$5,440		$6,163
				22,149
Washington – 1.3%
Washington State G.O. Unlimited Bonds, Series B & AT-7, 6.40%, 6/1/17		5,200		5,809
Washington State Various Purpose G.O. Unlimited Refunding Bonds, Series R-2012C, 5.00%, 7/1/26		5,395		6,109
				11,918
West Virginia – 0.6%
West Virginia State University Project Revenue Bonds, Series A, 5.00%, 10/1/35		5,000		5,217
Wisconsin – 0.6%
Wisconsin State G.O. Unlimited Refunding Bonds, Series 2, 5.00%, 11/1/22		5,000		5,921
Total Municipal Bonds
(Cost $880,820)				896,009
	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 4.5%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (3)(4)		41,838,965		$41,839
Total Investment Companies
(Cost $41,839)				41,839
Total Investments – 101.1%
(Cost $922,659)				937,848
Liabilities less Other Assets – (1.1)%				(10,583	)
NET ASSETS – 100.0%				$927,265

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

(2) When-Issued Security.

(3) At March 31, 2013, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $152,662,000 with net sales of approximately $110,823,000 during the six months ended September 30, 2013.

(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 September 30, 2013, the industry sectors for the Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General		18.3%
General Obligation		15.1
Higher Education		14.8
Water		14.2
Transportation		8.0
Power		6.4
All other sectors less than 5%		23.2
Total		100.0%

At September 30, 2013, the credit quality distribution for the Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		16.4%
AA		62.5
A		16.6
Cash and Equivalents		4.5
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).

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 84 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Municipal Bonds		$–		$896,009	(1)		$–		$896,009
Investment Companies		41,839		–			–		41,839
Total Investments		$41,839		$896,009			$–		$937,848

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 85 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

ABBREVIATIONS AND OTHER INFORMATION SEPTEMBER 30, 2013 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS
AGM	Assured Guaranty Municipal Corporation	NATL-RE	National Public Finance Guarantee Corporation
AMBAC	American Municipal Bond Assurance Corporation	MBIA	Municipal Bond Insurance Association
AMT	Alternative Minimum Tax	MWRA	Massachusetts Water Resources Authority
BAM	Build America Mutual	PCR	Pollution Control Revenue
BANS	Bond Anticipation Notes	PFA	Public Finance Authority
BHAC	Berkshire Hathaway Assurance Corporation	PSF	Permanent School Fund
CABS	Capital Appreciation Bonds	Q-SBLF	Qualified School Bond Loan Fund
COPS	Certificates of Participation	SCSDE	South Carolina School District Enhancement
CR	Custody Receipt	SFM	Single Family Mortgage
EDA	Economic Development Agency	TCRS	Transferable Custodial Receipts
FGIC	Financial Guaranty Insurance Corporation	TRB	Tax Revenue Bonds
FHLMC	Federal Home Loan Mortgage Corporation	XLCA	XL Capital Assurance
FNMA	Federal National Mortgage Association
FSA	Financial Security Assurance
GNMA	Government National Mortgage Association
G.O.	General Obligation
Gtd.	Guaranteed
HFDC	Health Facilities Development Corp.
IBC	Insured Bond Certificates

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 86 NORTHERN FUNDS SEMIANNUAL REPORT

TAX-EXEMPT FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (UNAUDITED)

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Arizona Tax-Exempt, California Intermediate Tax-Exempt, California Tax-Exempt, High Yield Municipal, Intermediate Tax-Exempt, Short-Intermediate Tax-Exempt, and Tax-Exempt Funds (each, a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, all of which are diversified portfolios except for the Arizona Tax-Exempt, California Intermediate Tax-Exempt and California Tax-Exempt Funds, which are non-diversified portfolios of the Trust. Non-diversified portfolios may invest a relatively high percentage of their net assets in obligations of a limited number of issuers. Each of the Funds is presented herein.

Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.

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

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

Shares of open-end investment companies are valued at their NAV. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.

Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by NTI under the supervision of the Board. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of fair values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and U.S. GAAP.

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 of, the Funds’ Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. The 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.

NORTHERN FUNDS SEMIANNUAL REPORT 87 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

The NTGI PVC is responsible for making the final determination of the fair value of a security. In making its determination, the NTGI PVC considers factors that it deems appropriate to the determination of the fair value of a 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 transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

For each Level 3 security, if any, 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.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) CREDIT ENHANCEMENTS Certain investments owned by the Funds are covered by insurance issued by private insurers, are backed by an escrow or trust containing U.S. Government securities or U.S. Government agency securities, or are otherwise supported by letters of credit, standby purchase agreements or other liquidity facilities. Such enhancements may ensure the timely payment of the security’s principal and interest or may shorten the security’s maturity. However, such enhancements do not guarantee the fair value of the securities or the value of a Fund’s shares. Additionally, there is no guarantee that an insurer will meet its obligations. For example, the insurers’ exposure to securities involving sub-prime mortgages may cause a municipal bond insurer’s rating to be downgraded or may cause the bond insurer to become insolvent, which may affect the prices and liquidity of municipal obligations insured by the insurer.

C) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to a Fund until settlement takes place. At the time a Fund enters into this type of transaction, it is required to segregate collateral or designate on its books and records cash or other liquid assets having a fair value at least equal to the amount of the commitment. When-issued securities at September 30, 2013, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.

D) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. 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. Certain Funds received dividend income from investments in investment companies during the six months ended September 30, 2013. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. The Funds’ income may be subject to certain state and local taxes and, depending on an individual shareholder’s tax status, the federal alternative minimum tax.

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

F) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income are declared and paid as follows:

	DECLARATION FREQUENCY		PAYMENT FREQUENCY
Arizona Tax-Exempt		Daily		Monthly
California Intermediate Tax-Exempt		Daily		Monthly
California Tax-Exempt		Daily		Monthly
High Yield Municipal		Daily		Monthly
Intermediate Tax-Exempt		Daily		Monthly
Short-Intermediate Tax-Exempt		Daily		Monthly
Tax-Exempt		Daily		Monthly

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The timing and character of distributions determined in accordance with federal income tax regulations may differ from financial statement amounts determined in accordance with U.S. GAAP due to differences in

TAX-EXEMPT FIXED INCOME FUNDS 88 NORTHERN FUNDS SEMIANNUAL REPORT

TAX-EXEMPT FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

the treatment and recognition of investment income and realized gains and losses. These differences are primarily related to the deferral of certain realized losses and capital loss carryforwards. Inherent differences in the recognition of income and capital gains for federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds’ capital accounts. These reclassifications have no impact on the net assets or the net asset value per share of the Funds.

At March 31, 2013, the following reclassifications were recorded:

Amounts in thousands	UNDISTRIBUTED NET INVESTMENT INCOME		ACCUMULATED UNDISTRIBUTED NET REALIZED LOSSES			CAPITAL STOCK
California Intermediate Tax-Exempt		$215		($215	)		$ —
Short-Intermediate Tax-Exempt		1,466		(1,220	)		(246	)

G) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

At March 31, 2013, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:

Amount in thousands	MAR 31, 2017		MAR 31, 2018		MAR 31, 2019
High Yield Municipal		$1,839		$24,430		$12,268

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

At March 31, 2013, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains (losses) were as follows:

	UNDISTRIBUTED
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAINS/ (LOSSES)
Arizona Tax-Exempt		$57		$193		$127		$9,166
California Intermediate Tax-Exempt		198		295		230		22,269
California Tax-Exempt		83		1,919		333		12,827
High Yield Municipal		242		3		—		38,198
Intermediate Tax-Exempt		613		6,842		3,515		87,077
Short-Intermediate Tax-Exempt		—		—		—		36,896
Tax-Exempt		284		8,983		2,483		59,463

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

The tax character of distributions paid during the fiscal year ended March 31, 2013 was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Arizona Tax-Exempt		$3,723		$609		$840
California Intermediate Tax-Exempt		10,579		3,016		1,528
California Tax-Exempt		4,696		4,055		361
High Yield Municipal		16,260		236		—
Intermediate Tax-Exempt		50,051		31,266		17,945
Short-Intermediate Tax-Exempt		16,659		317		3,682
Tax-Exempt		34,113		21,218		9,235

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

NORTHERN FUNDS SEMIANNUAL REPORT 89 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

The tax character of distributions paid during the fiscal year ended March 31, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Arizona Tax-Exempt		$3,685		$8		$404
California Intermediate Tax-Exempt		10,164		41		—
California Tax-Exempt		4,322		972		187
High Yield Municipal		30,657		268		—
Intermediate Tax-Exempt		46,846		429		3,616
Short-Intermediate Tax-Exempt		19,125		—		—
Tax-Exempt		34,530		29		—

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

As of March 31, 2013, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2010 through March 31, 2012 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2013.

These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended

September 30, 2013.

4. BANK BORROWINGS

The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 29, 2012, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one-month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Funds did not have any outstanding borrowings.

The Funds did not have any borrowings or incur any interest expense during the six months ended September 30, 2013.

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment adviser is entitled to receive an advisory fee, computed daily and payable monthly, at annual rates set forth in the tables below (expressed as a percentage of each Fund’s respective average daily net assets). During the six months ended September 30, 2013, the investment adviser contractually agreed to reimburse a portion of each Fund’s expenses (other than acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses; and interest, if any) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.

TAX-EXEMPT FIXED INCOME FUNDS 90 NORTHERN FUNDS SEMIANNUAL REPORT

TAX-EXEMPT FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

The annual advisory fees and the expense limitations for the six months ended September 30, 2013, for the Funds were as follows:

	CONTRACTUAL ANNUAL ADVISORY FEES
	FIRST $1.5 BILLION			NEXT $1 BILLION			OVER $2.5 BILLION			CONTRACTUAL EXPENSE LIMITATIONS
Arizona Tax-Exempt		0.55	%		0.52	%		0.50	%		0.45	%
California Intermediate Tax-Exempt		0.55	%		0.52	%		0.50	%		0.45	%
California Tax-Exempt		0.55	%		0.52	%		0.50	%		0.45	%
High Yield Municipal		0.65	%		0.61	%		0.59	%		0.80	%
Intermediate Tax-Exempt		0.55	%		0.52	%		0.50	%		0.45	%
Short-Intermediate Tax-Exempt		0.50	%		0.47	%		0.45	%		0.45	%
Tax-Exempt		0.55	%		0.52	%		0.50	%		0.45	%

Prior to September 11, 2013, the Short-Intermediate Tax-Exempt Fund’s contractual annual advisory fee was 0.50% (expressed as a percentage of the Fund’s average daily net assets).

The contractual reimbursement arrangement is expected to continue until at least July 31, 2014. The contractual reimbursement arrangement will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangement at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.

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

For compensation as administrator, NTI is entitled to receive a fee, accrued daily and payable monthly, at the annual rate of 0.15 percent of each Fund’s average daily net assets. Administration fees are reflected as Administration fees in the Funds’ Statements of Operations.

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.

Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statements of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

6. RELATED PARTY TRANSACTIONS

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund invests its uninvested cash in a money market fund advised by the investment adviser or its affiliates. Accordingly, each Fund will bear indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include the advisory, administrative, transfer agency and custody fees that the money market fund pays to the investment adviser and/or its affiliates.

NORTHERN FUNDS SEMIANNUAL REPORT 91 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

The uninvested cash of the Arizona Tax-Exempt, High Yield Municipal, Intermediate Tax-Exempt, Short-Intermediate Tax-Exempt and Tax-Exempt Funds is invested in the Northern Institutional Tax-Exempt Portfolio and the uninvested cash of the California Intermediate Tax-Exempt and California Tax-Exempt Funds is invested in the Northern California Municipal Money Market Fund. The aggregate annual rate of advisory, administration, transfer agency and custody fees payable to the investment adviser and/or its affiliates on any assets invested in the Northern Institutional Tax-Exempt Portfolio and Northern California Municipal Money Market Fund is 0.35 and 0.45 percent, respectively, of average daily net assets. However, pursuant to the exemptive order, the investment adviser will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Northern Institutional Tax-Exempt Portfolio or Northern California Municipal Money Market Fund. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

7. INVESTMENT TRANSACTIONS

For the six months ended September 30, 2013, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER
Arizona Tax-Exempt		$—		$10,992		$—		$35,969
California Intermediate Tax-Exempt		—		187,905		—		197,374
California Tax-Exempt		—		98,585		—		110,558
High Yield Municipal		—		19,991		—		62,623
Intermediate Tax-Exempt		—		1,344,935		—		1,106,763
Short-Intermediate Tax-Exempt		—		236,282		—		125,178
Tax-Exempt		—		680,049		—		704,547

The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

At September 30, 2013, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation (depreciation) on investments and the cost basis of securities were as follows:

Amounts in thousands	UNREALIZED APPRECIATION		UNREALIZED DEPRECIATION			NET APPRECIATION (DEPRECIATION)		COST BASIS OF SECURITIES
Arizona Tax-Exempt		$4,670		$(863)			$3,807		$86,512
California Intermediate Tax-Exempt		13,728		(3,123	)		10,605		357,071
California Tax-Exempt		8,254		(1,475	)		6,779		127,020
High Yield Municipal		15,562		(4,246	)		11,316		241,605
Intermediate Tax-Exempt		50,271		(34,110	)		16,161		2,523,137
Short-Intermediate Tax-Exempt		27,236		(3,662	)		23,574		1,201,535
Tax-Exempt		33,316		(18,481	)		14,835		923,013

TAX-EXEMPT FIXED INCOME FUNDS 92 NORTHERN FUNDS SEMIANNUAL REPORT

TAX-EXEMPT FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013, were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Arizona Tax-Exempt		1,235		$13,123		33		$346		(3,731	)		$(39,166	)		(2,463	)		$(25,697	)
California Intermediate Tax-Exempt		8,625		90,225		53		550		(11,899	)		(123,540	)		(3,221	)		(32,765	)
California Tax-Exempt		1,284		14,694		98		1,094		(3,694	)		(41,597	)		(2,312	)		(25,809	)
High Yield Municipal		3,203		27,942		92		788		(8,140	)		(70,503	)		(4,845	)		(41,773	)
Intermediate Tax-Exempt		44,039		458,017		460		4,762		(37,109	)		(384,392	)		7,390			78,387
Short-Intermediate Tax-Exempt		29,395		308,408		86		908		(23,058	)		(242,045	)		6,423			67,271
Tax-Exempt		6,364		67,614		268		2,793		(24,060	)		(250,434	)		(17,428	)		(180,027	)

Transactions in capital shares for the fiscal year ended March 31, 2013, were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Arizona Tax-Exempt		2,557		$28,493		152		$1,682		(2,444	)		$(27,178	)		265			$2,997
California Intermediate Tax-Exempt		12,831		140,618		233		2,531		(7,242	)		(79,142	)		5,822			64,007
California Tax-Exempt		4,592		54,664		421		4,981		(3,980	)		(47,427	)		1,033			12,218
High Yield Municipal		5,452		49,126		186		1,671		(15,488	)		(139,384	)		(9,850	)		(88,587	)
Intermediate Tax-Exempt		68,829		747,543		4,753		51,028		(51,087	)		(553,703	)		22,495			244,868
Short-Intermediate Tax-Exempt		47,619		506,296		285		3,020		(41,047	)		(437,000	)		6,857			72,316
Tax-Exempt		22,547		251,446		2,811		30,973		(23,829	)		(264,930	)		1,529			17,489

9. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

10. NEW ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining whether an entity is an investment company for which fair value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for, its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have to the financial statement amounts and footnote disclosures, if any.

11. SUBSEQUENT EVENTS

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that, other than the item noted in Note 4 — Bank Borrowings, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

NORTHERN FUNDS SEMIANNUAL REPORT 93 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

FUND EXPENSES

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any; and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013 through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. If these fees were included, your costs would have been higher. The information does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on pages 91 and 92), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

ARIZONA TAX-EXEMPT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.45	%	$	1,000.00		$966.70	$	2.22
Hypothetical**		0.45	%	$	1,000.00	$	1,022.81	$	2.28

CALIFORNIA INTERMEDIATE TAX-EXEMPT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.45	%	$	1,000.00		$971.10	$	2.22
Hypothetical**		0.45	%	$	1,000.00	$	1,022.81	$	2.28

CALIFORNIA TAX-EXEMPT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.45	%	$	1,000.00		$959.80	$	2.21
Hypothetical**		0.45	%	$	1,000.00	$	1,022.81	$	2.28

HIGH YIELD MUNICIPAL

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.80	%	$	1,000.00		$943.50	$	3.90
Hypothetical**		0.80	%	$	1,000.00	$	1,021.06	$	4.05

INTERMEDIATE TAX-EXEMPT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.44	%	$	1,000.00		$976.00	$	2.18
Hypothetical**		0.44	%	$	1,000.00	$	1,022.86	$	2.23

SHORT-INTERMEDIATE TAX-EXEMPT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.45	%	$	1,000.00		$996.10	$	2.25
Hypothetical**		0.45	%	$	1,000.00	$	1,022.81	$	2.28

TAX-EXEMPT

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.45	%	$	1,000.00		$959.60	$	2.21
Hypothetical**		0.45	%	$	1,000.00	$	1,022.81	$	2.28

TAX-EXEMPT FIXED INCOME FUNDS 94 NORTHERN FUNDS SEMIANNUAL REPORT

TAX-EXEMPT FIXED INCOME FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

* Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

NORTHERN FUNDS SEMIANNUAL REPORT 95 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

APPROVAL OF ADVISORY AGREEMENT

The Board of Trustees oversees the management of Northern Funds (the “Trust”), and reviews the investment performance and expenses of the investment funds covered by this Report (the “Funds”) at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Funds with Northern Trust Investments, Inc. (“Northern”).

The Advisory Agreement was re-approved with respect to all of the Funds by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Trust’s Governance Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Funds. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Funds in comparison to other mutual funds and benchmark indices; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Funds; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Funds; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Funds’ investment performance over different time periods in comparison to the investment performance of mutual fund peer groups and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administrative) fees and the total expenses (after reimbursements) borne by the Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the investment advisory fees charged to the Funds compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (v) Northern’s staffing for the Funds and the experience of the portfolio managers, credit research and other personnel; (vi) Northern’s financial resources and its ability to attract and retain portfolio management talent; (vii) Northern’s investments in technology to benefit the Funds; (viii) the fees paid by the Funds to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (ix) the benefits received by Northern and its affiliates from their relationships with the Funds. In evaluating the Advisory Agreement for each of the Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. In this regard, they considered both the investment advisory services, and the other non-advisory services that are provided to the Funds by Northern and its affiliates. These services include acting as the Funds’ custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications with and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Funds. They noted Northern’s enhancements to the pricing and fund accounting systems made during the year, and other investments in technology, including the trade order management system used to process certain trades. The Trustees also considered the strength of Northern’s and its affiliates’ risk management processes, Northern’s compliance oversight program with respect to all of the Funds’ service providers and the continued active involvement of internal audit in reviewing operations related to the Funds. In addition, they noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Funds. The Trustees concluded that Northern was able to commit, and had committed, substantial financial and other resources to the operations of the Funds and was able to provide quality services to the Funds.

Performance

The Trustees considered the investment performance of the Funds. They first considered whether the Funds had operated within their respective investment objectives, as well as their compliance with their investment restrictions. For Funds that had been in existence for the applicable periods, the Trustees

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SEPTEMBER 30, 2013 (UNAUDITED)

received information on the Funds’ investment performance for one, two, three, four, five and ten years, as well as performance for the most recent quarter and year-to-date. The Trustees compared the investment performance of the Funds to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. They also reviewed the Funds’ investment performance relative to their respective performance benchmarks. The Trustees considered that the investment performance of the Arizona Tax-Exempt Fund, the California Intermediate Tax-Exempt Fund and the California Tax-Exempt Fund was above, and the investment performance of the High Yield Municipal Fund and the Short-Intermediate Tax-Exempt Fund was below its respective Lipper peer group medians for the three- and five-year periods and, the investment performance for the Intermediate Tax-Exempt Fund and Tax-Exempt Fund was mixed for those time periods. They also considered that each Fund, other than the California Tax Exempt Fund and the Tax Exempt Fund, lagged its performance benchmark for the same time periods. The Trustees took into account Northern’s explanations for the performance rankings and comparisons.

The Trustees considered the potential impact of the relative risk parameters of the different Funds. In particular, they considered that with respect to fixed income securities, Northern had an investment style that seeks out securities with higher credit parameters than other fixed-income investment advisers. They took into consideration that Northern’s more risk averse investment strategies may cause the Funds to underperform against their peers during certain market environments. The Trustees also took into consideration the extreme market volatility in recent years and the effects of these events on the Funds’ longer term performance. In addition, the Trustees reviewed the consistency of Northern’s investment approach for the Funds and processes to address performance issues.

The Trustees believed, based on the information received, that Northern was appropriately monitoring the underperforming Funds. Overall, the Trustees concluded that Northern had devoted appropriate resources to improving the investment performance and addressing underperformance of the Funds.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Funds’ contractual management fee rates; the Funds’ total operating expense ratios; Northern’s contractual commitments to continue expense reimbursements for at least one year with respect to the Funds; and whether a consistent methodology was in place in determining the fees and expenses of the Funds. They noted that certain voluntary expense reimbursements being made by Northern to certain Funds could be terminated at any time. The Trustees also considered that, for those Funds that were sweeping uninvested cash into a Northern affiliated money market fund, Northern was in each case rebating back to the investing Fund all of the advisory fees that were not waived by Northern of the applicable money market fund in compliance with the Funds’ exemptive order. The Trustees also considered the additional contractual expense reimbursements that were in effect during the past year.

In addition, the Trustees considered the amount of assets in the Funds; the information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship on a Fund-by-Fund basis. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to each Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rates paid by the Funds under the Advisory Agreement and the Funds’ total operating expense ratios compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Funds’ fee rates and total operating expense ratios were prepared by Lipper. The Trustees considered that each Fund’s total expense ratio after reimbursement of expenses was below its respective Lipper peer objective median, although the Funds’ contractual management fees were all above their respective Lipper peer group medians. The Trustees also considered information comparing the Funds’ advisory fee rates to the fee rates charged by Northern to similarly managed, private institutional accounts. They noted that Northern did not manage private institutional accounts similarly managed to the High Yield Municipal Fund. The Trustees considered the difference in, and level of complexity of, services provided by Northern with regard to the private institutional accounts, as well as regulatory, operational and compliance differences, board and committee support and other differences. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Funds.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass, benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Funds may be sharing in economies of scale through the level at which the Funds’ advisory fees are set and

NORTHERN FUNDS SEMIANNUAL REPORT 97 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

APPROVAL OF ADVISORY AGREEMENT continued SEPTEMBER 30, 2013 (UNAUDITED)

through Northern’s contractual expense reimbursements that limit the expenses for the Funds to specific levels. In addition, the Trustees considered that most of the Funds’ advisory fees were subject to breakpoints, thus ensuring that as a Fund’s assets grew, its shareholders would receive reduced fee rates.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationship with the Funds. Those benefits included fees received by the affiliates for transfer agency, custodial and administrative functions. The Trustees also considered that many of the Funds’ shareholders had other client relationships with The Northern Trust Company. In addition, the Trustees considered that the scale of the Funds provided opportunities to Northern to obtain securities trading advantages for its other advisory clients. The Trustees also considered the extent to which Northern and its other clients, as well as the Funds, benefited from receipt of the research products and services generated by the Trust’s equity investment portfolios.

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to all of the Funds that the advisory fees paid by the Funds were reasonable in light of the services provided by Northern, its costs and the Funds’ asset levels, and that the Advisory Agreement should be approved and continued.

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NORTHERN FUNDS SEMIANNUAL REPORT 99 TAX-EXEMPT FIXED INCOME FUNDS

TAX-EXEMPT FIXED INCOME FUNDS

FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

TAX-EXEMPT FIXED INCOME FUNDS 100 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

TABLE OF CONTENTS

2	STATEMENTS OF ASSETS AND LIABILITIES
3	STATEMENTS OF OPERATIONS
4	STATEMENTS OF CHANGES IN NET ASSETS
5	FINANCIAL HIGHLIGHTS
10	SCHEDULES OF INVESTMENTS
10	CALIFORNIA MUNICIPAL MONEY MARKET FUND
14	MONEY MARKET FUND
21	MUNICIPAL MONEY MARKET FUND
43	U.S. GOVERNMENT MONEY MARKET FUND
47	U.S. GOVERNMENT SELECT MONEY MARKET FUND
51	ABBREVIATIONS AND OTHER INFORMATION
52	NOTES TO THE FINANCIAL STATEMENTS
59	FUND EXPENSES
60	APPROVAL OF ADVISORY AGREEMENT
64	FOR MORE INFORMATION

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

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

Investments in the Funds are not insured or guaranteed by the FDIC or any other governmental agency. Although each Fund seeks to maintain a value of $1.00 per share, it is possible to lose money by investing.

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value/No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 MONEY MARKET FUNDS

MONEY MARKET FUNDS

STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 2013 (UNAUDITED)

Amounts in thousands, except per share data	CALIFORNIA MUNICIPAL MONEY MARKET FUND			MONEY MARKET FUND			MUNICIPAL MONEY MARKET FUND		U.S. GOVERNMENT MONEY MARKET FUND		U.S. GOVERNMENT SELECT MONEY MARKET FUND
ASSETS:
Investments, at amortized cost		$357,763			$7,728,613			$5,817,980		$1,019,865		$3,161,002
Repurchase agreements, at cost which approximates fair value		–			423,650			–		480,564		468,551
Cash		2,349			133,628			5,388		86,001		1
Interest income receivable		219			5,735			2,239		348		460
Receivable for securities sold		730			–			53,846		–		–
Receivable for fund shares sold		–			40			37,780		–		–
Receivable from affiliates for expense reimbursements		26			389			363		96		227
Prepaid and other assets		5			35			25		11		20
Total Assets		361,092			8,292,090			5,917,621		1,586,885		3,630,261
LIABILITIES:
Payable for securities purchased		13,907			531,104			91,214		89,286		123,993
Payable for fund shares redeemed		1			48,120			186		86,044		3
Distributions to shareholders		3			65			48		12		29
Payable to affiliates:
Investment advisory fees		14			321			239		60		144
Administration fees		6			128			96		24		58
Custody and accounting fees		2			30			20		5		12
Transfer agent fees		6			128			96		24		58
Trustee fees		13			108			69		14		24
Accrued other liabilities		18			116			88		30		57
Total Liabilities		13,970			580,120			92,056		175,499		124,378
Net Assets		$347,122			$7,711,970			$5,825,565		$1,411,386		$3,505,883
ANALYSIS OF NET ASSETS:
Capital stock		$347,142			$7,720,643			$5,825,175		$1,411,369		$3,505,862
Accumulated undistributed net investment income (loss)		(11	)		(42	)		153		11		14
Accumulated undistributed net realized gain (loss)		(9	)		(8,631	)		237		6		7
Net Assets		$347,122			$7,711,970			$5,825,565		$1,411,386		$3,505,883
Shares Outstanding ($.0001 par value, unlimited authorization)		347,175			7,720,737			5,825,200		1,411,402		3,505,900
Net Asset Value, Redemption and Offering Price Per Share		$1.00			$1.00			$1.00		$1.00		$1.00

See Notes to the Financial Statements.

MONEY MARKET FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

Amounts in thousands	CALIFORNIA MUNICIPAL MONEY MARKET FUND			MONEY MARKET FUND			MUNICIPAL MONEY MARKET FUND			U.S. GOVERNMENT MONEY MARKET FUND			U.S. GOVERNMENT SELECT MONEY MARKET FUND
INVESTMENT INCOME:
Interest income		$217			$8,206			$3,801			$816			$2,022
Total Investment Income		217			8,206			3,801			816			2,022
EXPENSES:
Investment advisory fees		518			9,959			7,600			1,706			4,336
Administration fees		207			3,983			3,040			683			1,734
Custody fees		27			429			315			86			193
Accounting fees		31			408			314			78			183
Transfer agent fees		207			3,983			3,040			683			1,734
Registration fees		6			32			27			15			19
Printing fees		34			55			28			8			15
Professional fees		16			61			46			21			31
Trustee fees		5			57			40			11			22
Other		5			45			35			10			20
Total Expenses		1,056			19,012			14,485			3,301			8,287
Less expenses voluntarily reimbursed by investment adviser		(530	)		(6,147	)		(7,152	)		(1,644	)		(4,227	)
Less expenses contractually reimbursed by investment adviser		(329	)		(5,057	)		(3,835	)		(908	)		(2,211	)
Less custodian credits		(1	)		(1	)		(1	)		(1	)		–
Net Expenses		196			7,807			3,497			748			1,849
Net Investment Income		21			399			304			68			173
NET REALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		–			27			237			6			7
Net Gains		–			27			237			6			7
Net Increase in Net Assets Resulting from Operations		$21			$426			$541			$74			$180

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 MONEY MARKET FUNDS

MONEY MARKET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED) OR THE FISCAL YEAR ENDED MARCH 31, 2013

	CALIFORNIA MUNICIPAL MONEY MARKET FUND						MONEY MARKET FUND						MUNICIPAL MONEY MARKET FUND						U.S. GOVERNMENT MONEY MARKET FUND						U.S. GOVERNMENT SELECT MONEY MARKET FUND
Amounts in thousands	SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
OPERATIONS:
Net investment income		$21			$37			$399			$777			$304			$666			$68			$141			$173			$361
Net realized gains (losses) on: Investments		–			(9	)		27			133			237			262			6			31			7			44
Net Increase in Net Assets Resulting from Operations		21			28			426			910			541			928			74			172			180			405
CAPITAL SHARE TRANSACTIONS:(1)
Net increase (decrease) in net assets resulting from capital share transactions		(22,833	)		(56,731	)		(864,809	)		1,300,291			(831,977	)		(358,566	)		81,988			(21,769	)		(31,755	)		100,928
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(22,833	)		(56,731	)		(864,809	)		1,300,291			(831,977	)		(358,566	)		81,988			(21,769	)		(31,755	)		100,928
DISTRIBUTIONS PAID:
From net investment income		(21	)		(40	)		(399	)		(795	)		(304	)		(821	)		(68	)		(151	)		(173	)		(380	)
Total Distributions Paid		(21	)		(40	)		(399	)		(795	)		(304	)		(821	)		(68	)		(151	)		(173	)		(380	)
Total Increase (Decrease) in Net Assets		(22,833	)		(56,743	)		(864,782	)		1,300,406			(831,740	)		(358,459	)		81,994			(21,748	)		(31,748	)		100,953
NET ASSETS:
Beginning of period		369,955			426,698			8,576,752			7,276,346			6,657,305			7,015,764			1,329,392			1,351,140			3,537,631			3,436,678
End of period		$347,122			$369,955			$7,711,970			$8,576,752			$5,825,565			$6,657,305			$1,411,386			$1,329,392			$3,505,883			$3,537,631
Accumulated Undistributed Net Investment Income (Loss)		$(11	)		$(11	)		$(42	)		$(42	)		$153			$153			$11			$11			$14			$14

⁽¹⁾  The number of shares approximates the dollar amount of transactions.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

FINANCIAL HIGHLIGHTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)		–	(1)		–	(1)		–	(1)		–	(1)		–	(1)		0.01
Net realized and unrealized gains (losses)		–	(2)		–	(2)		–	(2)		–	(2)		–	(2)		–
Total from Investment Operations		–			–			–			–			–			0.01
LESS DISTRIBUTIONS PAID:
From net investment income		–	(3)		–	(3)		–	(3)		–	(3)		–	(3)		(0.01	)
Total Distributions Paid		–			–			–			–			–			(0.01	)
Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Return(4)		0.01	%		0.01	%		0.01	%		0.03	%		0.03	%		1.11	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$347,122			$369,955			$426,698			$469,628			$971,027			$1,620,993
Ratio to average net assets of:(5)
Expenses, net of reimbursements and credits(6)		0.09	%		0.16	%		0.16	%		0.27	%		0.34	%(7)		0.57	%(8)
Expenses, before reimbursements and credits(6)		0.51	%		0.51	%		0.49	%		0.57	%		0.72	%		0.71	%
Net investment income (loss), net of reimbursements and credits(6)		0.01	%		0.00	%		0.01	%		0.00	%		(0.01	)%		1.08	%
Net investment income (loss), before reimbursements and credits(6)		(0.41	)%		(0.35	)%		(0.32	)%		(0.30	)%		(0.39	)%		0.94	%

(1) Per share amount from net investment income (loss) was less than $0.01 per share.

(2) Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share.

(3) Per share amount from distributions paid from net investment income was less than $0.01 per share.

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

(5) Annualized for periods less than one year.

(6) The impact on Net Assets due to any custody credits is less than 0.001%.

(7) The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $306,000 which represents 0.03% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

(8) The net expense ratio includes the Participation Fee of approximately $360,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2009. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 MONEY MARKET FUNDS

MONEY MARKET FUNDS

FINANCIAL HIGHLIGHTS continued

MONEY MARKET FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		–	(1)		–	(1)		–	(1)		–	(1)		–	(1)		0.01
Net realized and unrealized gains (losses)		–	(2)		–	(2)		–	(2)		–	(2)		–	(2)		–	(2)
Total from Investment Operations		–			–			–			–			–			0.01
LESS DISTRIBUTIONS PAID:
From net investment income		–	(3)		–	(3)		–	(3)		–	(3)		–	(3)		(0.01	)
Total Distributions Paid		–			–			–			–			–			(0.01	)
Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Return(4)		0.01	%		0.01	%		0.02	%		0.03	%		0.05	%(5)		1.16	%(5)
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$7,711,970			$8,576,752			$7,276,346			$7,419,896			$7,682,040			$9,744,761
Ratio to average net assets of:(6)
Expenses, net of reimbursements and credits(7)		0.20	%		0.24	%		0.18	%		0.30	%		0.47	%(8)		0.57	%(9)
Expenses, before reimbursements and credits(7)		0.48	%		0.48	%		0.48	%		0.55	%		0.70	%		0.70	%
Net investment income, net of reimbursements and credits(7)		0.01	%		0.01	%		0.02	%		0.02	%		0.05	%		1.18	%
Net investment income (loss), before reimbursements and credits(7)		(0.27	)%		(0.23	)%		(0.28	)%		(0.23	)%		(0.18	)%		1.05	%

(1) Per share amount from net investment income was less than $0.01 per share.

(2) Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share.

(3) Per share amount from distributions paid from net investment income was less than $0.01 per share.

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

(5) Without the value of the Capital Support Agreement, the total return would have been 0.23% and 0.97% for the fiscal years ended March 31, 2010 and 2009, respectively.

(6) Annualized for periods less than one year.

(7) The impact on Net Assets due to any custody credits is less than 0.001%.

(8) The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $1,976,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

(9) The net expense ratio includes the Participation Fee of approximately $2,325,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2009. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT

MUNICIPAL MONEY MARKET FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		–	(1)		–	(1)		–	(1)		–	(1)		–	(1)		0.01
Net realized and unrealized gains (losses)		–	(2)		–	(2)		–	(2)		–	(2)		–	(2)		–
Total from Investment Operations		–			–			–			–			–			0.01
LESS DISTRIBUTIONS PAID:
From net investment income		–	(3)		–	(3)		–	(3)		–	(3)		–	(3)		(0.01	)
Total Distributions Paid		–			–			–			–			–			(0.01	)
Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Return(4)		0.01	%		0.01	%		0.01	%		0.02	%		0.08	%		1.26	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$5,825,565			$6,657,305			$7,015,764			$6,688,741			$6,404,996			$10,170,902
Ratio to average net assets of:(5)
Expenses, net of reimbursements and credits(6)		0.12	%		0.17	%		0.16	%		0.29	%		0.45	%(7)		0.57	%(8)
Expenses, before reimbursements and credits(6)		0.48	%		0.48	%		0.48	%		0.54	%		0.70	%		0.70	%
Net investment income, net of reimbursements and credits(6)		0.01	%		0.01	%		0.02	%		0.03	%		0.09	%		1.17	%
Net investment income (loss), before reimbursements and credits(6)		(0.35	)%		(0.30	)%		(0.30	)%		(0.22	)%		(0.16	)%		1.04	%

(1) Per share amount from net investment income was less than $0.01 per share.

(2) Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share.

(3) Per share amount from distributions paid from net investment income was less than $0.01 per share.

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

(5) Annualized for periods less than one year.

(6) The impact on Net Assets due to any custody credits is less than 0.001%.

(7) The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $1,450,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

(8) The net expense ratio includes the Participation Fee of approximately $1,707,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2009. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 MONEY MARKET FUNDS

MONEY MARKET FUNDS

FINANCIAL HIGHLIGHTS continued

U.S. GOVERNMENT MONEY MARKET FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		–	(1)		–	(1)		–	(1)		–	(1)		–	(1)		0.01
Net realized and unrealized gains (losses)		–	(2)		–	(2)		–	(2)		–	(2)		–	(2)		–
Total from Investment Operations		–			–			–			–			–			0.01
LESS DISTRIBUTIONS PAID:
From net investment income		–	(3)		–	(3)		–	(3)		–	(3)		–	(3)		(0.01	)
Total Distributions Paid		–			–			–			–			–			(0.01	)
Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Return(4)		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		1.10	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,411,386			$1,329,392			$1,351,140			$1,626,601			$1,445,539			$2,347,454
Ratio to average net assets of:(5)
Expenses, net of reimbursements and credits(6)		0.11	%		0.17	%		0.12	%		0.23	%		0.32	%(7)		0.56	%(8)(9)
Expenses, before reimbursements and credits(6)		0.48	%		0.48	%		0.49	%		0.54	%		0.71	%		0.71	%
Net investment income, net of reimbursements and credits(6)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		1.03	%
Net investment income (loss), before reimbursements and credits(6)		(0.36	)%		(0.30	)%		(0.36	)%		(0.30	)%		(0.38	)%		0.88	%

(1) Per share amount from net investment income was less than $0.01 per share.

(2) Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share.

(3) Per share amount from distributions paid from net investment income was less than $0.01 per share.

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

(5) Annualized for periods less than one year.

(6) The impact on Net Assets due to any custody credits is less than 0.001%.

(7) The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $325,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

(8) The net expense ratio includes custodian credits of approximately $125,000 which represents 0.01% of average net assets for the fiscal year ended March 31, 2009. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

(9) The net expense ratio includes the Participation Fee of approximately $383,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2009. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT

U.S. GOVERNMENT SELECT MONEY MARKET FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		–	(1)		–	(1)		–	(1)		–	(1)		–	(1)		0.01
Net realized and unrealized gains (losses)		–	(2)		–	(2)		–	(2)		–	(2)		–	(2)		–
Total from Investment Operations		–			–			–			–			–			0.01
LESS DISTRIBUTIONS PAID:
From net investment income		–	(3)		–	(3)		–	(3)		–	(3)		–	(3)		(0.01	)
Total Distributions Paid		–			–			–			–			–			(0.01	)
Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Return(4)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		0.99	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$3,505,883			$3,537,631			$3,436,678			$3,122,906			$3,411,618			$5,010,970
Ratio to average net assets of:(5)
Expenses, net of reimbursements and credits(6)		0.11	%		0.15	%		0.09	%		0.20	%		0.31	%(7)		0.55	%(8)
Expenses, before reimbursements and credits(6)		0.48	%		0.48	%		0.48	%		0.55	%		0.69	%		0.70	%
Net investment income, net of reimbursements and credits(6)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		0.73	%
Net investment income (loss), before reimbursements and credits(6)		(0.36	)%		(0.32	)%		(0.38	)%		(0.34	)%		(0.37	)%		0.58	%

(1) Per share amount from net investment income was less than $0.01 per share.

(2) Per share amounts from net realized and unrealized gains (losses) were less than $0.01 per share.

(3) Per share amount from distributions paid from net investment income was less than $0.01 per share.

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

(5) Annualized for periods less than one year.

(6) The impact on Net Assets due to any custody credits is less than 0.001%.

(7) The net expense ratio includes the fee for participation in the U.S. Department of the Treasury’s Temporary Guaranty Program (the “Participation Fee”) of approximately $539,000 which represents 0.01% of average net assets for the fiscal year ended March 31, 2010. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

(8) The net expense ratio includes the Participation Fee of approximately $635,000 which represents 0.02% of average net assets for the fiscal year ended March 31, 2009. Absent the Participation Fee, the net expenses would have been decreased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 103.1%
California – 100.4%
Alameda County California IDA Revenue VRDB, Convergent Laser Tech, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13		$4,220		$4,220
California Educational Facilities Authority Municipal Interest Bearing CP, 0.11%, 11/26/13		5,873		5,873
California Health Facilities Financing Authority Revenue VRDB, (Bank of Montreal LOC), 0.05%, 10/8/13		6,725		6,725
California Health Facilities Financing Authority Revenue VRDB, Adventist Health Systems West, Series B, (U.S. Bank N.A. LOC), 0.04%, 10/1/13		3,500		3,500
California Infrastructure & Economic Development Bank Revenue Refunding VRDB, Series A, Pacific Gas & Electric, (Mizuho Bank Ltd. LOC), 0.04%, 10/1/13		5,350		5,350
California Infrastructure & Economic Development Bank Revenue VRDB, Southern California Public Radio Project, (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/1/13		2,300		2,300
California Infrastructure and Economic Development Bank Revenue VRDB, (Comerica Bank LOC), 0.08%, 10/8/13		9,100		9,100
California Municipal Finance Authority Revenue Refunding VRDB, Touro University California Project, (FHLB of San Francisco LOC), 0.05%, 10/8/13		9,940		9,940
California Municipal Finance Authority Revenue VRDB, Westmont College, Series A, (Comerica Bank LOC), 0.10%, 10/8/13		5,500		5,500
California Pollution Control Financing Authority Revenue Refunding Bonds, Pacific Gas & Electric, Series F, (JPMorgan Chase Bank N.A. LOC), 0.05%, 10/1/13		3,100		3,100
California Pollution Control Financing Authority Solid Waste Disposal Revenue VRDB, Big Bear Disposal, Inc. Project, (Union Bank N.A. LOC), 0.09%, 10/8/13		2,325		2,325

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 103.1% – continued
California – 100.4% – continued
California Pollution Control Financing Authority Solid Waste Disposal Revenue VRDB, Mission Trail Waste, Series A, (Comerica Bank LOC), 0.10%, 10/8/13		$2,745		$2,745
California School Cash Reserve Program Authority Revenue Notes, Senior, Series A, 2.00%, 4/1/14		4,000		4,036
California School Cash Reserve Program Authority Revenue Notes, Senior, Series B, 2.00%, 6/2/14		3,300		3,339
California School Cash Reserve Program Authority Revenue Notes, Series AA, 2.00%, 10/1/13		4,000		4,000
California State G.O., Floating, Series C-4, (Citibank N.A. LOC), 0.07%, 10/8/13		3,800		3,800
California State Revenue Notes, Series A-1, 2.00%, 5/28/14		7,000		7,082
California State Revenue Notes, Series A-2, 2.00%, 6/23/14		13,000		13,167
California Statewide Communities Development Authority Corp. COPS VRDB, Covenant Retirement Communities, (JPMorgan Chase Bank N.A. LOC), 0.06%, 10/8/13		9,700		9,700
California Statewide Communities Development Authority Gas Supply Revenue VRDB, 0.07%, 10/8/13		1,400		1,400
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, (FHLB of San Francisco LOC), 0.09%, 10/8/13		8,500		8,500
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Broadway Studios Apartments, Series A, (FHLB of San Francisco LOC), 0.06%, 10/8/13		1,300		1,300
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Encanto Homes Apartments, (FHLB of San Francisco LOC), 0.07%, 10/8/13		3,800		3,800

See Notes to the Financial Statements.

MONEY MARKET FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 103.1% – continued
California – 100.4% – continued
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Highlander Pointe Apartments, Series A, (FHLB of San Francisco LOC), 0.09%, 10/8/13		$5,000		$5,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Lincoln Walk Apartment Project, Series D (PNC Bank N.A. LOC), 0.10%, 10/8/13		500		500
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, South Shore Apartments, Series M, (FHLB of San Francisco LOC), 0.06%, 10/8/13		10,290		10,290
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, Series F, (FHLB of San Francisco LOC), 0.06%, 10/8/13		7,785		7,785
California Statewide Communities Development Authority Revenue VRDB, American Baptist Homes West, (Bank of America N.A. LOC), 0.08%, 10/8/13		7,605		7,605
California Statewide Communities Development Authority Revenue VRDB, Development at Robert Louis Stevenson, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		6,700		6,700
California Statewide Communities Development Authority Revenue VRDB, Kaiser Permanente, Series A, 0.08%, 10/8/13		5,000		5,000
Castaic Lake Water Agency California Revenue COPS VRDB, 1994 Refunding Project, Series A, (Wells Fargo Bank N.A. LOC), 0.06%, 10/8/13		4,500		4,500
City of Carlsbad California Multifamily Housing Revenue Refunding VRDB, Santa Fe Ranch Apartments Project, (FHLMC LOC), 0.08%, 10/8/13		6,420		6,420

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 103.1% – continued
California – 100.4% – continued
City of Livermore California COPS VRDB, Capital Projects, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		$1,300		$1,300
City of Manhattan Beach California COPS Refunding VRDB, (Union Bank N.A. LOC), 0.06%, 10/8/13		2,180		2,180
City of Oceanside California Multifamily Housing Revenue VRDB, Shadow Way, Non AMT, (FHLMC LOC), 0.06%, 10/8/13		1,500		1,500
City of Salinas California Economic Development Revenue VRDB, Monterey County Public Building, Series A, (Bank of New York Mellon LOC), 0.05%, 10/8/13		9,600		9,600
Corona California Multifamily Housing Revenue Refunding VRDB, Country Hills Project, (FHLMC LOC), 0.09%, 10/8/13		4,600		4,600
Deutsche Bank Spears/Lifers Trust Goldman Sachs Adjustable Revenue Bonds, Series DBE-709, (Deutsche Bank A.G. Gtd.), 0.22%, 10/8/13 (1)		13,907		13,907
Deutsche Bank Spears/Lifers Trust, Goldman Sachs G.O., Series DB-461, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		7,310		7,310
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, G.O., Series DB-649, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13		11,096		11,096
Golden Empire Schools Financing Authority Lease Revenue Refunding VRDB, Floating Notes, Kern High School, Series D, 0.37%, 10/8/13		3,500		3,500
Irvine Ranch Water District VRDB, Special Assessment, Districts Numbers 140-240- 105-250, (Bank of New York Mellon LOC), 0.04%, 10/1/13		7,600		7,600
Los Angeles California Multifamily Revenue Refunding VRDB, Mountainback, Series B, (FHLMC LOC), 0.10%, 10/8/13		8,240		8,240

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 103.1% – continued
California – 100.4% – continued
Los Angeles County Schools Pooled Financing Program TRANS, Series C-7, 2.00%, 12/31/13		$2,000		$2,008
Los Angeles County Schools Pooled Financing Program TRANS, Series C-8, 2.00%, 1/31/14		4,000		4,022
Los Angeles Department of Water & Power Revenue VRDB, Subseries B-1, 0.07%, 10/8/13		2,500		2,500
Los Angeles Department of Water & Power Waterworks Revenue VRDB, Subseries B-2, 0.06%, 10/1/13		2,500		2,500
Los Angeles Department of Water & Power Waterworks Revenue VRDB, Subseries B-4, 0.07%, 10/8/13		4,825		4,825
Los Angeles Municipal Improvement Corp. Municipal Interest Bearing CP, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/7/14		6,250		6,250
Metropolitan Water District of Southern California Revenue Refunding VRDB, Series D, 0.05%, 10/8/13		2,000		2,000
Nuveen California Dividend Advantage Municipal Fund 3 VRDP, Series 1-1600, 0.16%, 10/8/13 (1)		7,000		7,000
Orange County California Apartment Development Revenue Refunding Bonds, Larkspur Canyon Apartments, Series A, (FNMA LOC), 0.06%, 10/8/13		7,435		7,435
Orange County Housing Authority Apartment Development Revenue Refunding VRDB, Oasis Martinique, Series I, (FNMA LOC), 0.09%, 10/8/13		1,000		1,000
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B, (State Street Bank & Trust Co. LOC), 0.06%, 10/8/13		1,250		1,250
Series C, (State Street Bank & Trust Co. LOC), 0.06%, 10/8/13		1,000		1,000

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 103.1% – continued
California – 100.4% – continued
Riverside County Multifamily Housing Authority Revenue Refunding VRDB, Tyler Springs Apartments, Series C, (FNMA LOC), 0.06%, 10/8/13		$7,550		$7,550
Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Seasons at Winter, Series C-2, (FHLMC LOC), 0.09%, 10/8/13		7,100		7,100
Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Ashford, Series D, (FNMA LOC), 0.05%, 10/8/13		1,000		1,000
San Bernardino County California Multifamily Revenue Refunding VRDB, Housing Mortgage Mountain View, Series A, (FNMA LOC), 0.09%, 10/8/13		7,110		7,110
San Diego Unified School District G.O. Limited TRANS, Series A-1, 2.00%, 1/31/14		3,000		3,018
San Francisco California City & County Multifamily Housing Revenue Refunding VRDB, Post Towers, Series A, (FHLMC LOC), 0.06%, 10/8/13		5,000		5,000
San Francisco City & County Airports Commission International Airport Revenue Refunding VRDB, Series 37C, (Union Bank N.A. LOC), 0.06%, 10/8/13		10,995		10,995
Southern California Public Power Authority Revenue VRDB, Natural Gas Project, (Barclays Bank PLC LOC), 0.07%, 10/8/13		6,630		6,630
State of California G.O., Floating, Series A-2, (Bank of Montreal LOC), 0.03%, 10/1/13		4,000		4,000
Tahoe Forest Hospital District California Revenue VRDB, Health Facility, (U.S. Bank N.A. LOC), 0.06%, 10/1/13		2,455		2,455

See Notes to the Financial Statements.

MONEY MARKET FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 103.1% – continued
California – 100.4% – continued
Western Municipal California Water District Facilities Authority Revenue Refunding Bonds, Series A, (Union Bank N.A. LOC), 0.07%, 10/8/13		$6,500		$6,500
				348,583
Colorado – 2.7%
Colorado Educational & Cultural Facilities Authority Adjustable Revenue Refunding Bonds, Capital Christian School, (FHLB of San Francisco LOC), 0.05%, 10/8/13		9,180		9,180
Total Municipal Investments
(Cost $357,763)				357,763
Total Investments – 103.1%
(Cost $357,763)(2)				357,763
Liabilities less Other Assets – (3.1)%				(10,641	)
NET ASSETS – 100.0%				$347,122

(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 $357,763.

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the California Municipal Money Market Fund were:

INDUSTRY SECTOR	% OF TOTAL INVESTMENTS
Air, Transportation, Water Services and Solid Waste Management		13.0%
Educational Services		19.2
Electric Services, Power and Utility		5.7
Executive, Legislative & Gen. Gov.		5.0
Health Services, Hospital and Residential Care		11.8
Urban and Community Development and Housing Programs		26.3
Miscellaneous Revenues		10.9
All other sectors less than 5%		8.1
Total		100.0%

At September 30, 2013, the maturity analysis for the California Municipal Money Market Fund as a percentage of investments was:

MATURITY ANALYSIS	%
1 Day		9.9%
2 - 15 Days		76.2
31 - 60 Days		1.7
61 - 97 Days		0.6
98 - 180 Days		3.8
181 - 270 Days		7.8
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. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2013:

	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Investments held by California Municipal Money Market Fund		$–		$357,763	(1)(2)		$–		$357,763

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

(2) Investments held by the California Municipal Money Market Fund are valued at amortized cost and therefore are classified as Level 2. NTI categorizes an investment in the California Municipal Money Market Fund 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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ABS COMMERCIAL PAPER – 8.2%
ABS Other – 8.2%
Alpine Securitization Corp., 0.15%, 10/10/13		$17,630		$17,629
Atlantic Asset Securitization LLC, 0.25%, 11/12/13		20,060		20,054
Barclays Bank PLC Collateralized Commercial Paper, 0.25%, 10/28/13		60,000		59,989
Bedford Row Funding Corp., 0.32%, 9/15/14		11,000		10,966
Collateralized Commercial Paper II, 0.26%, 10/3/13		27,835		27,835
0.22%, 11/6/13		60,000		59,987
0.30%, 12/6/13		21,440		21,428
Collateralized Commercial Paper LLC, 0.30%, 12/6/13		47,260		47,234
0.22%, 1/3/14		50,025		49,996
Gemini Securitization Corp. LLC, 0.13%, 10/24/13		21,000		20,998
0.22%, 12/2/13		15,870		15,864
Gotham Funding, 0.18%, 10/28/13		13,000		12,998
Kells Funding LLC, 0.21%, 10/7/13		32,710		32,709
0.22%, 10/16/13		32,700		32,697
0.24%, 10/31/13		20,000		19,996
0.22%, 1/6/14		20,000		19,988
0.24%, 3/20/14		23,000		22,975
Liberty Street Funding LLC, 0.18%, 12/16/13		5,000		4,998
Market Street Funding LLC, 0.18%, 10/29/13		30,435		30,431
Ridgefield Funding Co. LLC, 0.30%, 11/1/13		40,000		39,990
0.29%, 11/8/13		33,000		32,990
Victory Receivables Corp., 0.19%, 10/11/13		16,745		16,744
0.15%, 10/17/13		11,000		10,999
				629,495
Total ABS Commercial Paper
(Cost $629,495)				629,495

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 0.2%
Car Loan – 0.2%
Mercedes-Benz Auto Receivables Trust, Series 2013-1, Class A1, 0.22%, 12/13/13		$14,768		$14,768
Total Asset-Backed Securities
(Cost $14,768)				14,768
CERTIFICATES OF DEPOSIT – 32.1%
Banking – 32.1%
Bank of Montreal, Chicago Branch, 0.18%, 11/8/13		56,000		56,000
Bank of Montreal, London Branch, 0.25%, 3/5/14		34,000		34,000
Bank of Nova Scotia, Houston, 0.18%, 10/1/13, FRCD		60,000		60,000
0.24%, 10/1/13, FRCD		33,000		33,000
0.31%, 10/16/13, FRCD		21,000		21,000
0.19%, 10/28/13, FRCD		45,000		45,000
0.25%, 12/20/13		40,000		40,000
Bank of Tokyo-Mitsubishi UFJ Ltd., 0.20%, 11/6/13		61,000		61,000
0.18%, 11/18/13		60,000		60,000
Barclays Bank PLC, New York Branch, 0.36%, 10/22/13		50,000		50,000
0.30%, 12/5/13		21,000		21,000
Branch Banking and Trust Co. North Carolina, 0.08%, 11/4/13		63,000		63,000
Commonwealth Bank of Australia, London, 0.17%, 11/8/13		61,515		61,515
Credit Agricole S.A., London, 0.29%, 10/21/13		50,000		50,000
0.29%, 11/8/13		27,000		27,000
0.29%, 11/14/13		58,000		58,000
Credit Suisse, New York, 0.26%, 2/21/14		110,000		110,000
0.27%, 3/21/14		14,000		14,000
Deutsche Bank A.G., New York Branch, 0.25%, 11/26/13		24,550		24,550
0.33%, 2/26/14		45,000		45,000
DNB Nor Bank ASA, Norway Branch, 0.26%, 10/24/13		44,000		44,000
0.24%, 12/13/13		60,000		60,000
JPMorgan Chase Bank N.A., New York Branch, 0.25%, 10/2/13		41,000		41,000

See Notes to the Financial Statements.

MONEY MARKET FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CERTIFICATES OF DEPOSIT – 32.1% – continued
Banking – 32.1% – continued
Lloyds TSB Bank PLC, New York Branch, 0.20%, 11/25/13		$40,000		$40,000
Mitsubishi UFJ Trust & Banking Corp., 0.22%, 12/5/13		23,000		23,000
Mizuho Bank Ltd., New York Branch, 0.21%, 12/12/13		50,000		50,000
0.24%, 3/10/14		15,960		15,960
National Australia Bank Ltd., London, 0.18%, 10/22/13		60,000		60,000
0.26%, 12/9/13, FRCD		40,000		40,000
0.24%, 2/24/14		42,000		42,000
Nordea Bank Finland PLC, New York, 0.19%, 10/15/13		40,000		40,000
0.19%, 10/16/13		63,000		63,000
0.18%, 11/5/13		16,190		16,190
0.18%, 11/14/13		27,000		27,000
Norinchukin Bank, New York Branch, 0.22%, 12/4/13		34,000		34,000
Oversea-Chinese Banking Corp., 0.20%, 11/21/13		23,655		23,655
0.18%, 12/4/13		16,725		16,725
Rabobank Nederland, London Branch, 0.25%, 11/14/13		38,000		38,000
Royal Bank of Canada, New York, 0.29%, 10/1/13, FRCD		17,000		17,000
0.30%, 10/1/13, FRCD		22,000		22,000
0.31%, 10/1/13, FRCD		33,000		33,000
Skandinaviska Enskilda Banken AB, New York, 0.29%, 10/23/13		54,000		54,000
0.29%, 12/10/13		55,000		55,000
Societe Generale, New York Branch, 0.22%, 10/31/13		42,000		42,000
0.24%, 12/5/13		24,000		24,000
Sumitomo Mitsui Banking Corp., New York, 0.21%, 11/12/13		42,720		42,720
0.26%, 3/17/14		27,220		27,220
Svenska Handelsbanken, New York, 0.19%, 10/7/13		50,000		50,000
0.19%, 11/1/13		15,000		15,000
Toronto Dominion Bank, New York, 0.23%, 11/4/13		58,000		58,000
0.23%, 2/20/14		25,000		25,000
0.23%, 3/7/14		62,000		62,000

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CERTIFICATES OF DEPOSIT – 32.1% – continued
Banking – 32.1% – continued
UBS A.G., Stamford Branch, 0.33%, 10/11/13		$64,000		$64,000
Wells Fargo Bank N.A., 0.18%, 10/1/13, FRCD		61,200		61,200
0.23%, 10/18/13, FRCD		45,340		45,340
0.23%, 10/23/13, FRCD		30,000		30,000
0.20%, 10/24/13		59,000		59,000
0.18%, 11/7/13		61,000		61,000
Westpac Banking Corp., New York, 0.26%, 10/1/13, FRCD		17,000		16,997
				2,473,072
Total Certificates of Deposit
(Cost $2,473,072)				2,473,072
COMMERCIAL PAPER – 11 .4%
Automotive – 1.1%
Toyota Motor Credit Corp., 0.22%, 10/3/13		42,000		42,000
0.23%, 1/29/14		42,365		42,333
				84,333
Banking –3.9%
Australia and New Zealand Banking Group, 0.28%, 10/1/13		10,000		10,000
0.31%, 11/18/13		16,000		16,000
Commonwealth Bank of Australia, 0.30%, 10/4/13		15,000		15,000
0.25%, 12/16/13		22,765		22,765
DBS Bank Ltd., 0.27%, 10/3/13		43,000		42,999
ING Bank N.V., 0.20%, 12/10/13		16,000		15,994
ING US Funding LLC, 0.22%, 10/18/13		60,000		59,994
0.20%, 12/12/13		25,000		24,990
Nordea Bank AB, 0.22%, 3/24/14		7,000		6,993
Oversea-Chinese Banking Corp., 0.27%, 10/2/13		21,285		21,285
Rabobank USA Financial Corp., 0.17%, 12/16/13		12,160		12,155
Westpac Banking Corp., 0.27%, 10/8/13		14,000		14,000
Westpac Banking Corp., New York, 0.30%, 10/11/13		20,000		20,000

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
COMMERCIAL PAPER – 11.4% – continued
Banking – 3.9% continued
0.25%, 12/18/13		$20,000		$20,000
				302,175
Food and Beverage – 0.7%
Coca-Cola (The) Co., 0.11%, 1/9/14		25,000		24,992
0.12%, 2/11/14		27,000		26,988
				51,980
Foreign Agencies – 3.2%
Bank Nederlandse Gemeenten, 0.18%, 10/7/13		20,505		20,504
Caisse D’Amortissement De La Dette, 0.28%, 2/3/14		34,380		34,347
Caisse Des Depots Et Consignations, 0.23%, 3/17/14		40,000		39,957
Electricite De France S.A., 0.21%, 10/15/13		24,835		24,833
0.20%, 12/9/13		12,785		12,780
KFW, 0.17%, 10/10/13		59,620		59,618
0.17%, 10/15/13		31,860		31,858
0.18%, 11/19/13		22,370		22,364
				246,261
Life Insurance – 0.2%
Prudential Funding LLC, 0.10%, 10/25/13		15,635		15,634
Non Captive Diversified – 2.3%
General Electric Capital Corp., 0.11%, 12/13/13		95,000		94,979
0.11%, 12/16/13		20,000		19,995
0.18%, 1/23/14		41,000		40,977
0.24%, 4/28/14		22,220		22,189
				178,140
Total Commercial Paper
(Cost $878,523)				878,523
CORPORATE NOTES/BONDS – 6.9%
Automotive – 0.2%
American Honda Finance Corp., 0.26%, 11/20/13, FRN (1)		16,105		16,105
Banking – 0.2%
Commonwealth Bank of Australia, 0.27%, 10/2/13, FRN (1)		15,000		15,000

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE NOTES/BONDS – 6.9% – continued
Consumer Products – 0.7%
Kimberly-Clark Corp., 4.22%, 12/19/13 (1)		$50,000		$50,422
Foreign Agencies – 1.8%
Export Development Canada, 0.11%, 10/1/13, FRN (1)		17,000		16,996
0.13%, 10/1/13, FRN (1)		75,000		75,000
KFW, 0.15%, 10/1/13, FRN		39,000		39,000
KFW, Government Gtd., 1.38%, 1/13/14		10,940		10,976
				141,972
Retailers – 0.8%
Wal-Mart Stores, 5.40%, 6/1/14		59,000		61,071
Supranational – 3.2%
International Bank for Reconstruction & Development, 0.10%, 10/1/13, FRN		45,000		44,997
0.13%, 10/1/13, FRN		34,000		33,992
0.15%, 10/1/13, FRN		101,000		101,000
0.50%, 11/26/13		25,000		25,012
International Finance Corp., 0.00%, 10/7/13, FRN		18,000		18,000
3.00%, 4/22/14		25,000		25,400
				248,401
Total Corporate Notes/Bonds
(Cost $532,971)				532,971
EURO NOTE – 0.1%
Sovereign – 0.1%
Bank of England Euro Note, 1.38%, 3/7/14 (1)		10,000		10 ,048
Total Euro Note
(Cost $10,048)				10,048
EURODOLLAR TIME DEPOSITS – 17.4%
Banking – 17.4%
Australia and New Zealand Banking, 0.20%, 10/28/13 (1)(2)		39,000		39,000
Bank of Tokyo-Mitsubishi UFJ Ltd., 0.12%, 10/1/13		383,720		383,720
0.12%, 10/2/13		176,810		176,810

See Notes to the Financial Statements.

MONEY MARKET FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
EURODOLLAR TIME DEPOSITS – 17.4% – continued
Banking – 17.4% – continued
Credit Agricole S.A., London, 0.09%, 10/1/13		$118,000		$118,000
DBS Bank Ltd., Singapore Branch, 0.07%, 10/1/13		73,460		73,460
0.18%, 10/28/13 (1)(2)		40,000		40,000
HSBC Holdings PLC, London Branch, 0.05%, 10/1/13		17,000		17,000
HSBC Holdings PLC, Paris Branch, 0.18%, 10/1/13(1)		60,435		60,435
Nordea Bank Grand Cayman, 0.01%, 10/1/13		200,000		200,000
Skandinaviska Enskilda Banken AB, 0.06%, 10/1/13		236,455		236,455
				1,344,880
Total Eurodollar Time Deposits
(Cost $1,344,880)				1,344,880
MEDIUM TERM NOTES – 0.5%
Banking – 0.1%
UBS A.G., New York Branch, 2.25%, 1/28/14		10,880		10,938
Foreign Agencies – 0.2%
KFW, Government Gtd., 0.21%, 2/28/14		13,000		12,998
Non Captive Diversified – 0.2%
General Electric Capital Corp., 5.65%, 6/9/14		17,130		17,756
Total Medium Term Notes
(Cost $41,692)				41,692
MUNICIPAL INVESTMENTS – 10.0%
California – 2.6%
California State Revenue Notes, Series A-1, 2.00%, 5/28/14		32,675		33,057
Los Angeles California Department of Water & Power System Revenue VRDB, Subseries A-2, 0.06%, 10/8/13		50,000		50,000
Los Angeles Community Redevelopment Agency Multifamily Housing Revenue Refunding VRDB, Grand Promenade Project, (FHLMC LOC), 0.09%, 10/8/13		34,500		34,500

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 10.0% – continued
California – 2.6% – continued
Los Angeles County Metropolitan Transportation Authority Municipal Interest Bearing CP, (Sumitomo Mitsui Banking Corp. LOC), 0.18%, 10/10/13		$22,500		$22,500
University of California Municipal CP VRDB, 0.06%, 10/8/13		25,000		25,000
West Hills Community College District COPS VRDB, (Union Bank N.A. LOC), 0.06%, 10/8/13		32,985		32,985
				198,042
District of Columbia – 0.6%
Metropolitan Washington Airports Authority Revenue Refunding VRDB, Subseries C-2, (Barclays Bank PLC LOC), 0.07%, 10/8/13		47,220		47,220
Florida – 0.8%
Highlands County Health Facilities Authority Revenue VRDB, Hospital Adventist Health System, Series A, 0.06%, 10/8/13		20,205		20,205
Sunshine State Governmental Financing Commission Revenue VRDB, Miami Dade County Program, Series B, (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/8/13		45,000		45,000
				65,205
Idaho – 0.0%
Glacier 600 LLC VRDB, (U.S. Bank N.A. LOC), 0.15%, 10/8/13		3,161		3,161
Massachusetts – 0.5%
Massachusetts Department of Transportation Metropolitan Highway System Revenue VRDB, Contract Assistance, Series A7, (Commonwealth of Massachusetts Gtd.), 0.10%, 10/8/13		38,370		38,370
New Jersey – 0.8%
Brick Township New Jersey G.O. Unlimited BANS, Series A, 1.00%, 1/23/14		20,000		20,034

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 10.0% – continued
New Jersey – 0.8% – continued
New Jersey Health Care Facilities Financing Authority Revenue Refunding VRDB, Underwood Memorial Hospital, (TD Bank N.A. LOC), 0.06%, 10/8/13		$40,255		$40,255
				60,289
New York – 1.1%
Monroe Security & Safety System New York Local Development Revenue VRDB, (Manufacturers & Traders Trust Co. LOC), 0.07%, 10/8/13		46,140		46,140
New York City Municipal Water Finance Authority Water & Sewer System Revenue VRDB, New York City Water, Series AA-2, 0.06%, 10/8/13		20,000		20,000
New York Liberty Development Corp. Revenue Refunding VRDB, World Trade Center, Series A, (U.S. Treasury Escrowed), 0.23%, 6/19/14		16,000		16,000
				82,140
North Carolina – 0.4%
North Carolina Medical Care Commission Hospital Revenue VRDB, Moses Cone Health System, Series A, 0.08%, 10/8/13		27,600		27,600
Pennsylvania – 0.5%
Delaware River Port Authority Revenue Refunding VRDB, Series A, (Royal Bank of Canada LOC), 0.06%, 10/8/13		36,000		36,000
Texas – 1.4%
Texas State TRANS, 2.00%, 8/28/14		40,125		40,778
University of Texas Revenue Refunding VRDB, Financing System, Series B, 0.06%, 10/8/13		67,130		67,130
				107,908
Wisconsin – 1.3%
Wisconsin Health & Educational Facilities Authority Revenue VRDB, Froedtert & Community Health, Series A, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		43,035		43,035

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 10.0% – continued
Wisconsin – 1.3% – continued
Wisconsin Health & Educational Facilities Authority Revenue VRDB, Marshfield, Series B, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		$59,850		$59,850
				102,885
Total Municipal Investments
(Cost $768,820)				768,820
U.S. GOVERNMENT AGENCIES – 8.9% (3)
Federal Farm Credit Bank – 2.3%
FFCB FRN, 0.08%, 10/1/13		25,000		25,000
0.14%, 10/1/13		42,000		41,993
0.33%, 10/1/13		30,000		30,048
0.15%, 10/11/13		14,000		14,000
0.14%, 10/13/13		35,000		34,998
0.17%, 10/18/13		15,000		15,001
0.17%, 10/19/13		15,000		15,001
				176,041
Federal Home Loan Bank – 5.9%
FHLB Bonds, 0.10%, 11/20/13		24,695		24,694
0.18%, 4/1/14		44,000		43,997
0.18%, 8/5/14		16,185		16,184
0.13%, 8/15/14		29,490		29,474
0.20%, 8/29/14		40,000		39,996
0.18%, 9/12/14		20,000		19,999
FHLB Discount Note, 0.10%, 6/24/14		50,000		49,963
FHLB FRN, 0.13%, 10/1/13		50,000		50,000
0.16%, 10/1/13		20,000		19,999
0.17%, 10/1/13		40,000		39,999
0.18%, 10/1/13		20,000		20,000
0.13%, 10/15/13		50,000		50,000
0.11%, 10/16/13		15,000		15,000
0.05%, 11/14/13		35,000		35,000
				454,305

See Notes to the Financial Statements.

MONEY MARKET FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 8.9% (3) – continued
Federal National Mortgage Association – 0.7%
FNMA Discount Note, 0.13%, 5/19/14		$20,000		$19,983
FNMA FRN, 0.32%, 10/1/13		15,000		15,000
0.15%, 10/5/13		25,000		24,991
				59,974
Total U.S. Government Agencies
(Cost $690,320)				690,320
U.S. GOVERNMENT OBLIGATIONS – 4.5%
U.S. Treasury Bills – 0.6%
0.14%, 6/26/14		25,000		24,974
0.13%, 8/21/14		21,495		21,469
				46,443
U.S. Treasury Notes – 3.9%
0.75%, 12/15/13		45,000		45,054
1.75%, 1/31/14		91,955		92,435
1.25%, 2/15/14		49,955		50,153
1.88%, 2/28/14		69,455		69,939
0.13%, 7/31/14		20,000		19,989
0.25%, 9/15/14		20,000		20,011
				297,581
Total U.S. Government Obligations
(Cost $344,024)				344,024
Investments, at Amortized Cost
($7,728,613)				7,728,613
REPURCHASE AGREEMENTS – 5.5%
Joint Repurchase Agreements – 0.7% (4)
Bank of America Securities LLC, dated 9/30/13, repurchase price $18,324 0.04%, 10/1/13		18,324		18,324
Morgan Stanley & Co., Inc., dated 9/30/13, repurchase price $18,324 0.05%, 10/1/13		18,324		18,324
Societe Generale, New York Branch, dated 9/30/13, repurchase price $18,324 0.05%, 10/1/13		18,324		18,324
				54,972

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
REPURCHASE AGREEMENTS – 5.5% – continued
Repurchase Agreements – 4.8% (5)
Citigroup Global Markets, Inc., dated 9/30/13, repurchase price $68,678 0.10%, 10/1/13		$68,678		$68,678
Federal Reserve Bank of New York, dated 9/30/13, repurchase price $200,000 0.01%, 10/1/13		200,000		200,000
JPMorgan Securities LLC, dated 9/30/13, repurchase price $100,001 0.41%, 10/1/13 (1)(2)		100,000		100,000
				368,678
Total Repurchase Agreements
(Cost $423,650)				423,650
Total Investments – 105.7%
(Cost $8,152,263) (6)				8,152,263
Liabilities less Other Assets – (5.7)%				(440,293	)
NET ASSETS – 100.0%				$7,711,970

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $179,000,000 or 2.3% of net assets. Additional information on these restricted illiquid securities is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Australia and New Zealand Banking, 0.20%, 10/28/13	9/23/13		$39,000
DBS Bank Ltd., Singapore Branch, 0.18%, 10/28/13	9/26/13		40,000
JPMorgan Securities LLC, 0.41%, 10/1/13	6/14/13		100,000

(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:

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

NAME	FAIR VALUE (000s)		COUPON RATES	MATURITY DATES
U.S. Treasury Bonds	$	9,423	2.13% – 3.63%	4/15/28 – 2/15/40
U.S. Treasury Notes	$	46,969	0.13% – 2.63%	6/30/14 – 1/15/21
Total	$	56,392

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

NAME	FAIR VALUE (000s)		COUPON RATES	MATURITY DATES
Corporate Bonds	$	107,000	1.00% – 10.20%	11/10/13 – 3/15/44
GNMA	$	70,739	3.50% – 5.50%	4/20/35 – 8/15/42
U.S. Treasury Notes	$	200,000	2.75%	2/15/19
Total	$	377,739

(6) The cost for federal income tax purposes was $8,152,263.

Percentages shown are based on Net Assets.

At September 30, 2013, the maturity analysis for the Money Market Fund as a percentage of investments was:

MATURITY ANALYSIS	%
1 Day		26.2%
2 - 15 Days		21.6
16 - 30 Days		10.9
31 - 60 Days		13.3
61 - 97 Days		10.3
98 - 180 Days		11.2
181 - 270 Days		3.8
271 - 366 Days		2.7
Total		100.0%

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2013:

	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Investments held by Money Market Fund		$–		$8,152,263	(1)		$–		$8,152,263

(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 September 30, 2013 there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9%
Alabama – 1.6%
Chatom Alabama IDB Gulf Opportunity Zone VRDB, Powersouth Energy Cooperative, (Natural Rural Utilities Cooperative Finance Corp. LOC), 0.22%, 10/8/13		$20,000		$20,000
Dothan Alabama Downtown Redevelopment Authority Revenue VRDB, Northside Mall Project, (Wells Fargo Bank N.A. LOC), 0.08%, 10/8/13		12,000		12,000
Eclipse Funding Trust Revenue Bonds, Solar Eclipse, Mobile, Alabama, Series 2006-0109, (U.S. Bank N.A. LOC), 0.07%, 10/1/13(1)		8,200		8,200
Taylor-Ryan Improvement District No. 2 VRDB, Special Assessment, Improvement, (Wells Fargo Bank N.A. LOC), 0.08%, 10/8/13		9,700		9,700
Washington County Alabama IDA Revenue VRDB, Bay Gas Storage Co. Ltd. Project, (UBS A.G. LOC), 0.07%, 10/8/13		9,165		9,165
West Jefferson IDB PCR Refunding VRDB, Series C, Alabama Power Co. Project, 0.07%, 10/8/13		34,000		34,000
				93,065
Alaska – 0.2%
Alaska Industrial Development & Export Authority Revenue Refunding VRDB, Greater Fairbanks, Series A, (Union Bank N.A. LOC), 0.06%, 10/8/13		11,625		11,625
Arizona – 1.6%
Apache County Arizona IDA PCR Refunding VRDB, Tucson Electric Power, Series A, (U.S. Bank N.A. LOC), 0.09%, 10/8/13		25,425		25,425
Arizona State University Board Regents COPS, Floaters, Series 1918, (Wells Fargo & Co. Gtd.), 0.10%, 10/8/13  (1)(2)		25		25
Phoenix Arizona IDA Multifamily Housing Revenue Refunding VRDB, Southwest Village Apartments Project, (FNMA LOC), 0.09%, 10/8/13		9,500		9,500

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Arizona – 1.6% – continued
Phoenix Arizona IDA Student Housing Revenue VRDB, (Wells Fargo & Co. Gtd.), 0.07%, 10/8/13 (1)		$16,450		$16,450
Pima County Arizona IDA Multifamily Housing Revenue Refunding VRDB, Eastside Place Apartments Project, (FNMA LOC), 0.09%, 10/8/13		6,505		6,505
Salt River Arizona Project Agricultural Improvement & Power District Electric Revenue Bonds, Eagle 20060014, Class A, 0.07%, 10/8/13 (1)		8,700		8,700
State of Arizona Unemployment Insurance TRANS, Series A, 1.50%, 5/7/14		12,000		12,095
Tucson Arizona IDA VRDB, Family Housing Resource Projects, Series A, (FNMA LOC), 0.08%, 10/8/13		16,220		16,220
				94,920
California – 7.7%
California Health Facilities Financing Authority Revenue VRDB, Catholic Healthcare, Series H, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13		2,000		2,000
California Infrastructure & Economic Development Bank Revenue VRDB, Pinewood School Project, (Comerica Bank LOC), 0.08%, 10/8/13		3,130		3,130
California Municipal Finance Authority Revenue Refunding VRDB, Touro University California Project, (FHLB of San Francisco LOC), 0.05%, 10/8/13		1,225		1,225
California School Cash Reserve Program Authority Revenue Notes, Series AA, 2.00%, 10/1/13		21,000		21,000
California State G.O. Unlimited, Floating, Series C-4, (Citibank N.A. LOC), 0.07%, 10/8/13		3,295		3,295
California State Revenue Notes, Series A-1, 2.00%, 5/28/14		45,000		45,527

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
California – 7.7% – continued
California State Revenue Notes, Series A-2, 2.00%, 6/23/14		$2,500		$2,532
California Statewide Communities Development Authority Corp. COPS VRDB, Covenant Retirement Communities, (JPMorgan Chase Bank N.A. LOC), 0.06%, 10/8/13		2,000		2,000
California Statewide Communities Development Authority Gas Supply Revenue VRDB, 0.07%, 10/8/13		45,800		45,800
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Broadway Studios Apartments, Series A, (FHLB of San Francisco LOC), 0.06%, 10/8/13		13,500		13,500
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Highlander Pointe Apartments, Series A, (FHLB of San Francisco LOC), 0.09%, 10/8/13		5,000		5,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Pine View Apartments, Series A, (Citibank N.A. LOC), 0.09%, 10/8/13		4,500		4,500
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, Series F, (FHLB of San Francisco LOC), 0.06%, 10/8/13		3,600		3,600
California Statewide Communities Development Authority Revenue VRDB, (FHLB of San Francisco LOC), 0.09%, 10/8/13		7,000		7,000
California Statewide Communities Development Authority Revenue VRDB, American Baptist Homes West, (Bank of America N.A. LOC), 0.08%, 10/8/13		26,690		26,690
City of Carlsbad California Multifamily Housing Revenue Refunding VRDB, Santa Fe Ranch Apartments Project, (FHLMC LOC), 0.08%, 10/8/13		9,500		9,500

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
California – 7.7% – continued
City of Fresno California Multifamily Housing Revenue Refunding VRDB, Heron Pointe Apartments, Series A, (FNMA LOC), 0.09%, 10/8/13		$10,425		$10,425
City of Livermore California COPS VRDB, Capital Projects, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		2,100		2,100
Daly City California Housing Development Finance Agency Multifamily Revenue Refunding VRDB, Serramonte Del Ray, Series A, (FNMA LOC), 0.09%, 10/8/13		13,300		13,300
Deutsche Bank Spears/Lifers Trust G.O., Series DB-662, Goldman Sachs, (Deutsche Bank A.G. Gtd.), 0.17%, 10/8/13 (1)		7,975		7,975
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, G.O., Series DB-458, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		11,455		11,455
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, G.O., Series DB-461, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		5,295		5,295
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Series 637, (Deutsche Bank A.G. Gtd.), 0.22%, 10/8/13 (1)		35,077		35,077
Foothill De Anza California Community College District G.O., (Wells Fargo Bank N.A. Gtd.), 0.07%, 10/8/13 (1)		30,950		30,950
Los Angeles California Department of Water & Power Revenue VRDB, Power Systems, Series A-8, 0.06%, 10/8/13		21,030		21,030
Los Angeles Department of Water & Power Revenue VRDB, Subseries B-1, 0.07%, 10/8/13		2,600		2,600
Los Angeles Department of Water & Power Waterworks Revenue VRDB, Subseries B-4, 0.07%, 10/8/13		4,500		4,500
Metropolitan Water District of Southern California Revenue Refunding VRDB, Series D, 0.05%, 10/8/13		4,000		4,000

See Notes to the Financial Statements.

MONEY MARKET FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
California – 7.7% – continued
Orange County California Apartment Development Adjustable Revenue Refunding Bonds, Larkspur Canyon Apartments, Series A, (FNMA LOC), 0.06%, 10/8/13		$200		$200
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B, (State Street Bank & Trust Co. LOC), 0.06%, 10/8/13		10,900		10,900
Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Ashford, Series D, (FNMA LOC), 0.05%, 10/8/13		1,450		1,450
San Diego Unified School District G.O. Limited TRANS, Series A-1, 2.00%, 1/31/14		12,000		12,073
State of California G.O., Series A-3, (Bank of Montreal LOC), 0.05%, 10/1/13		34,650		34,650
University of California VRDB, Series AL-1, 0.06%, 10/8/13		39,700		39,700
Western Municipal Water District Facilities Authority Revenue Refunding Bonds, Series A, (Union Bank N.A. LOC), 0.07%, 10/8/13		3,500		3,500
				447,479
Colorado – 1.4%
Arapahoe County Colorado Multifamily Housing Revenue Refunding VRDB, Hunters Run, (FHLMC LOC), 0.06%, 10/8/13		9,330		9,330
Colorado Educational & Cultural Facilities Authority Adjustable Revenue Bonds, Presentation School, (Union Bank N.A. LOC), 0.07%, 10/8/13		7,090		7,090
Colorado Educational & Cultural Facilities Authority Adjustable Revenue Bonds, Southeastern California Projects, (Bank of America N.A. LOC), 0.09%, 10/8/13		16,000		16,000

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Colorado – 1.4% – continued
Colorado Educational & Cultural Facilities Authority Revenue Refunding VRDB, Nampa Christian Schools, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		$4,440		$4,440
Colorado Educational & Cultural Facilities Authority Revenue VRDB, Bear Creek School Project, 0.06%, 10/8/13		610		610
Colorado Health Facilities Authority Revenue VRDB, Fraiser Meadows Community Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		6,000		6,000
Colorado Health Facilities Authority Revenue VRDB, Frasier Meadows Manor Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		10,500		10,500
Colorado Health Facilities Authority Revenue VRDB, Senior Living Facilities Eaton Terrace, Series A, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		7,180		7,180
Colorado Housing & Finance Authority Revenue VRDB, SFM, Series 1-A3, 0.07%, 10/8/13		9,790		9,790
Colorado Springs Colorado Utilities Revenue VRDB, Systems Improvement, Series A, 0.08%, 10/8/13		9,355		9,355
				80,295
Delaware – 0.0%
Delaware State EDA Revenue VRDB, Peninsula United, Series A, (PNC Bank N.A. LOC), 0.07%, 10/1/13		305		305
District of Columbia – 0.3%
District of Columbia Revenue VRDB, D.C. Preparatory Academy, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13		4,680		4,680
District of Columbia Revenue VRDB, Henry J. Kaiser Foundation, 0.17%, 10/8/13		10,100		10,100
				14,780

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Florida – 6.2%
Brevard County Health Facilities Authority Revenue Refunding VRDB, Retirement Housing Foundation, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		$3,550		$3,550
Capital Trust Agency Florida Housing Revenue VRDB, Atlantic Housing Foundation, Series A, (FNMA LOC), 0.07%, 10/8/13		10,700		10,700
Collier County Florida Health Facilities Authority Revenue VRDB, The Moorings, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		18,500		18,500
0.07%, 10/8/13		10,220		10,220
0.07%, 10/8/13		8,510		8,510
Deutsche Bank Spears/Lifers Trust Goldman Sachs Revenue Bonds, DBE-492, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		20,000		20,000
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Adjustable Revenue Bonds, Series DB-459, (Deutsche Bank A.G. Gtd.), 0.10%, 10/8/13 (1)		46,900		46,900
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Revenue VRDB, Series DB-487, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		13,925		13,925
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Revenue VRDB, Series DBE-538, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		15,125		15,125
Eclipse Funding Trust, COPS, Series 2007-0035, Solar Eclipse, South, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		34,685		34,685
Eclipse Funding Trust, Florida, Revenue Bonds, Series 2006-0043, Solar Eclipse Certificates, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		5,000		5,000
Escambia County Florida Health Facilities Authority Revenue Refunding VRDB, Azalea Trace, Inc., Series A, (TD Bank N.A. LOC), 0.06%, 10/1/13		3,615		3,615

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Florida – 6.2% – continued
Florida Housing Finance Agency Revenue VRDB, (FNMA LOC), 0.07%, 10/8/13		$8,500		$8,500
Florida State Board of Public Education G.O. Eagle-720050054-Class A, 0.07%, 10/8/13 (1)		7,000		7,000
Highlands County Health Facilities Authority Revenue VRDB, Hospital Adventist Health System, Series A, 0.06%, 10/8/13		5,000		5,000
JEA Variable Rate Demand Obligations, 0.10%, 10/10/13		15,340		15,340
Miami-Dade County Florida Educational Facilities Authority Revenue Bonds, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13 (1)		15,055		15,055
Orange County Florida Health Facilities Authority Revenue VRDB, Hospital Orlando Regional, Series E, (Branch Banking & Trust Co. LOC), 0.07%, 10/8/13		33,500		33,500
Orange County Florida Housing Financial Authority Multifamily Housing Revenue Refunding Bonds, Post Lake Apartments Project, (FNMA LOC), 0.07%, 10/8/13		28,000		28,000
Orange County Florida Multifamily Housing Finance Authority Revenue Refunding VRDB, Heather Glen, Series E, (FNMA LOC), 0.09%, 10/8/13		10,000		10,000
Orlando-Orange County Expressway Authority Revenue Refunding VRDB, Subseries B-1, (Bank of Montreal LOC), 0.06%, 10/8/13		26,500		26,500
Volusia County Florida IDA Revenue Refunding VRDB, Retirement Housing Foundation, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		19,070		19,070
				358,695

See Notes to the Financial Statements.

MONEY MARKET FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Georgia – 2.5%
Athens Housing Authority Multi Family Housing Adjustable Revenue Bonds, Rural Development Apartment Projects, (U.S. Treasury Escrowed), 0.35%, 8/1/14		$27,202		$27,202
DeKalb County Georgia Multifamily Housing Authority Revenue VRDB, Highland Place Apartments Project, (FHLMC LOC), 0.07%, 10/8/13		4,200		4,200
Eclipse Funding Trust Solar Eclipse Atlanta Revenue Bonds, Series 2006-0024, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		23,780		23,780
Fulton County Georgia Residential Care Facilities for the Elderly Authority Revenue VRDB, First Mortgage, Lenbrook Project, Series C, (Bank of Scotland PLC LOC), 0.09%, 10/8/13		1,245		1,245
Gwinnett County Development Authority Revenue VRDB, NIHAN Hospitality LLC Series E, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		4,800		4,800
Main Street National Gas, Inc. Georgia Gas Project Revenue VRDB, 0.07%, 10/8/13		54,900		54,900
Marietta Georgia Multifamily Housing Authority Revenue Refunding Bonds, Wood Glen, (FHLMC LOC), 0.07%, 10/8/13		6,000		6,000
Monroe County Development Authority PCR VRDB, Oglethorpe Power Corp., (Bank of Montreal LOC), 0.07%, 10/8/13		9,100		9,100
Richmond County Georgia Development Authority Revenue Bonds, Series B, MCG Health, Inc. Project, (Branch Banking & Trust Co. LOC), 0.07%, 10/8/13		11,600		11,600
Roswell Multifamily Housing Authority Revenue Refunding VRDB, Azalea Park Apartments, (FNMA LOC), 0.08%, 10/8/13		5,400		5,400
				148,227

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Idaho – 0.8%
Idaho State G.O. Unlimited TANS, 2.00%, 6/30/14		$48,000		$48,646
Illinois – 5.5%
BB&T Municipal Trust G.O. Revenue VRDB, (Branch Banking & Trust Co. LOC), 0.09%, 10/8/13 (1)		16,515		16,515
BB&T Municipal Trust Various States Revenue VRDB, Series 5001, (Cooperative Centrale Raiffeisen Boeren LOC), 0.17%, 10/8/13 (1)		20,000		20,000
Chicago Illinois Water Revenue VRDB, Subseries 04-3, (State Street Bank & Trust Co. LOC), 0.15%, 10/8/13		3,075		3,075
County of DuPage Illinois Educational Facilities Revenue VRDB, Benedictine University, Series A, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		3,716		3,716
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears G.O., Series DBE-651, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		8,426		8,426
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears Revenue Bonds, Series DBE-660, (Deutsche Bank A.G. Gtd.), 0.20%, 10/8/13 (1)		9,136		9,136
Illinois Development Finance Authority IDR VRDB, Institution Gas Technology Project, (BMO Harris Bank N.A. LOC), 0.10%, 10/8/13		1,000		1,000
Illinois Development Finance Authority Revenue VRDB, Evanston Northwestern, Series B, 0.07%, 10/1/13		13,730		13,730
Illinois Development Finance Authority Revenue VRDB, Jewish Council Youth Services, Series B, (BMO Harris Bank N.A. LOC), 0.10%, 10/8/13		2,445		2,445
Illinois Development Finance Authority Revenue VRDB, Little City Foundation, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		3,020		3,020

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Illinois – 5.5% – continued
Illinois Development Finance Authority Revenue VRDB, Mount Carmel High School Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		$14,100		$14,100
Illinois Development Finance Authority Revenue VRDB, North Shore Senior Center Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		7,000		7,000
Illinois Development Finance Authority Revenue VRDB, Wheaton Academy Project, (BMO Harris Bank N.A. LOC), 0.09%, 10/8/13		9,000		9,000
Illinois Educational Facilities Authority Revenue VRDB, Aurora University, (BMO Harris Bank N.A. LOC), 0.07%, 10/8/13		13,200		13,200
Illinois Educational Facilities Authority Revenue VRDB, Benedictine University Project, Series A, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		9,200		9,200
Illinois Educational Facilities Authority Revenue VRDB, The Adler Planetarium, (PNC Bank N.A. LOC), 0.08%, 10/8/13		6,000		6,000
Illinois Educational Facilities Authority Student Housing Revenue VRDB, IIT State, Series A, (BMO Harris Bank N.A. LOC), 0.09%, 10/8/13		19,035		19,035
Illinois Finance Authority Adjustable Revenue Bonds, Joan W & Irving B Dance Project, (PNC Bank N.A. LOC), 0.08%, 10/8/13		6,000		6,000
Illinois Finance Authority Adjustable Revenue Bonds, Northwestern University, Subseries B, 1.75%, 3/3/14		10,090		10,155
Illinois Finance Authority Revenue Bonds, Northwestern University, Subseries B, 0.06%, 10/8/13		15,000		15,000
Illinois Finance Authority Revenue Refunding VRDB, Presbyterian Home, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		9,160		9,160

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Illinois – 5.5% – continued
Illinois Finance Authority Revenue VRDB, All Saints Catholic, Series A, (BMO Harris Bank N.A. LOC), 0.08%, 10/8/13		$8,200		$8,200
Illinois Finance Authority Revenue VRDB, Benedictine University Project, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		5,210		5,210
Illinois Finance Authority Revenue VRDB, Community Action Partnership, (Citibank N.A. LOC), 0.09%, 10/8/13		5,020		5,020
Illinois Finance Authority Revenue VRDB, IIT Research Institute, (JPMorgan Chase Bank N.A. LOC), 0.20%, 10/8/13		6,550		6,550
Illinois Finance Authority Revenue VRDB, Nazareth Academy Project, 0.07%, 10/8/13		5,000		5,000
Illinois Finance Authority Revenue VRDB, OSF Healthcare System Insured, (Barclays Bank PLC LOC), 0.07%, 10/8/13		25,000		25,000
Illinois Multifamily Housing Development Authority Revenue VRDB, Alden Gardens Bloomingdale, (BMO Harris Bank N.A. LOC), 0.08%, 10/8/13		6,685		6,685
Lisle Illinois Multifamily Housing Revenue Bonds, Ashley of Lisle Project, (FHLMC LOC), 0.09%, 10/8/13		26,525		26,525
Quad Cities Regional EDA Illinois Revenue Bonds, Augustana College, (BMO Harris Bank N.A. LOC), 0.07%, 10/8/13		14,200		14,200
University of Illinois Revenue Refunding VRDB, UIC South Campus Development, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		9,000		9,000
University of Illinois Revenue VRDB, Auxiliary Facilities Systems, 0.08%, 10/8/13		7,545		7,545
				317,848

See Notes to the Financial Statements.

MONEY MARKET FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Indiana – 1.3%
County of Tippecanoe Indiana Revenue VRDB, Faith Property, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		$5,215		$5,215
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears Revenue Bonds, (Deutsche Bank A.G. Gtd.), 0.17%, 10/8/13 (1)		9,070		9,070
East Porter County Indiana School Building Corp. Revenue Bonds, Series DB-145, (Deutsche Bank A.G. Gtd.), 0.17%, 10/8/13 (1)(2)		5,545		5,545
Eclipse Funding Trust Revenue Bonds, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		9,400		9,400
Indiana Development Finance Authority Revenue Bonds, Archer-Daniels-Midland Co., 0.10%, 10/8/13		8,000		8,000
Indiana Finance Authority Environmental Revenue Refunding VRDB, Series A3, Duke Energy Industry Project, (Mizuho Bank Ltd. LOC), 0.08%, 10/8/13		15,425		15,425
Indiana Finance Authority Revenue VRDB, Series E4, Ascension Health, 0.07%, 10/8/13		5,000		5,000
Indiana Municipal Power Agency, Municipal Power System Revenue Bonds, Putters, Series 2255, (Berkshire Hathaway, Inc. Insured), 0.10%, 10/8/13 (1)		15,205		15,205
				72,860
Iowa – 1.3%
Iowa Finance Authority Economic Development Revenue VRDB, Iowa West Foundation Project, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		2,645		2,645
Iowa Finance Authority Midwestern Disaster Area Revenue VRDB, Archer- Daniels-Midland, 0.10%, 10/8/13		39,000		39,000
Iowa Higher Education Loan Authority College Facilities Revenue VRDB, Loras College Project, 0.08%, 10/1/13		12,050		12,050

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Iowa – 1.3% – continued
Iowa Higher Education Loan Authority Revenue Refunding VRDB, Private College Facilities, Loras, (Bank of America N.A. LOC), 0.08%, 10/1/13		$10,000		$10,000
Iowa Higher Education Loan Authority Revenue VRDB, Private College, (Bank of America N.A. LOC), 0.08%, 10/1/13		2,500		2,500
Urbandale Iowa IDR VRDB, Aurora Bus Park, (FHLB of Des Moines LOC), 0.09%, 10/8/13		8,300		8,300
				74,495
Kansas – 0.5%
City of Leawood G.O. Unlimited Temporary Notes, Series 1, 1.25%, 9/1/14		11,475		11,580
Kansas State Department of Transportation Highway Revenue Refunding Bonds, Series B-1, 0.06%, 10/8/13		19,690		19,690
				31,270
Kentucky – 1.5%
Boyle County Kentucky Hospital Revenue VRDB, Ephraim McDowell Health Project, (Branch Banking & Trust Co. LOC), 0.07%, 10/8/13		13,500		13,500
City of Pikeville Kentucky Hospital Revenue BANS, Improvement, Pikeville Medical Center, 1.00%, 3/1/14		10,000		10,028
Fort Mitchell Kentucky League of Cities Funding Trust Lease Program VRDB, Series A, (U.S. Bank N.A. LOC), 0.08%, 10/8/13		10,100		10,100
Kentucky Economic Development Finance Authority Revenue Refunding VRDB, Retirement Housing Foundation, Series B, 0.06%, 10/8/13		7,705		7,705
Kentucky Economic Development Financial Authority Hospital Facilities Revenue VRDB, Baptist Healthcare Systems, Series B-4, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		20,655		20,655

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Kentucky – 1.5% – continued
Kentucky Economic Development Financial Authority Medical Center Revenue VRDB, Ashland Hospital Corp., Series A, (Branch Banking & Trust Co. LOC), 0.09%, 10/8/13		$5,600		$5,600
Kentucky Economic Development Financial Authority Revenue Refunding VRDB, Retirement Housing Foundation, Series A-1A, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		8,030		8,030
Kentucky Housing Corp. Adjustable Revenue Bonds, Portland Plaza Apartments Project, (U.S. Treasury Escrowed), 0.35%, 8/1/14		3,250		3,250
Morehead Kentucky League of Cities Funding Trust Lease Program Revenue VRDB, Series A, (U.S. Bank N.A. LOC), 0.08%, 10/8/13 (1)(2)		7,182		7,182
				86,050
Louisiana – 0.7%
Eclipse Funding Trust Revenue VRDB, Solar Eclipse, 2007-0059 (U.S. Bank N.A. LOC), 0.07%, 10/1/13 (1)		17,320		17,320
Louisiana Public Facilities Authority Revenue VRDB, Coca-Cola Bottling Co. Project, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		24,000		24,000
				41,320
Maryland – 2.7%
Anne Arundel County Maryland Revenue VRDB, Key School Facility, Series A, (Manufacturers & Traders Trust Co. LOC), 0.07%, 10/8/13		8,385		8,385
Baltimore County Maryland Revenue VRDB, Maryvale Prep School Facility, Series A, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13		3,700		3,700
Baltimore County Maryland Revenue VRDB, Notre Dame Preparatory School, (Manufacturers & Traders Trust Co. LOC), 0.10%, 10/8/13		3,905		3,905

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Maryland – 2.7% – continued
Eclipse Funding Trust Revenue Bonds, 2006-0154, Solar Eclipse, Maryland, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		$27,825		$27,825
Maryland Health & Higher Educational Facilities Authority Revenue Bonds, Pooled Loan Program, Series B, (JPMorgan Chase Bank N.A. LOC), 0.09%, 10/8/13		20,100		20,100
Maryland Industrial Development Financing Authority Port Facilities Revenue Refunding VRDB, Occidental Petroleum Corp., 0.09%, 10/8/13		36,400		36,400
Maryland State Community Development Administration Department Housing & Community Development Revenue VRDB, Series A, Multifamily Housing Development, (FHLMC LOC), 0.06%, 10/8/13		16,950		16,950
Maryland State Economic Development Corp. Revenue VRDB, Opportunity Builders Facility, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13		5,450		5,450
Prince Georges County Maryland Revenue Refunding VRDB, Collington Episcopal, Series A, 0.09%, 10/8/13		26,350		26,350
Washington Suburban Sanitary District Commission Variable G.O. Unlimited BANS, Series A, 0.07%, 10/8/13		9,400		9,400
Washington Suburban Sanitary District Commission Variable G.O. Unlimited BANS, Series B, 0.06%, 10/8/13		1,600		1,600
				160,065
Massachusetts – 1.3%
Massachusetts Development Finance Agency Revenue VRDB, Briarwood Retirement, (Manufacturers & Traders Trust Co. LOC), 0.06%, 10/8/13		5,900		5,900

See Notes to the Financial Statements.

MONEY MARKET FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Massachusetts – 1.3% – continued
Massachusetts Development Finance Agency Revenue VRDB, Series A, Masonic Nursing Home, (Manufacturers & Traders Trust Co. LOC), 0.09%, 10/8/13		$9,430		$9,430
Massachusetts State Development Finance Agency Revenue VRDB, Credit-Wilber School Apartments, Series A, (FHLB of Atlanta LOC), 0.07%, 10/8/13		5,120		5,120
Massachusetts State Development Finance Agency Revenue VRDB, Groton School, 0.08%, 10/8/13		9,500		9,500
Massachusetts State Development Finance Agency Revenue VRDB, Phillips Academy, 0.08%, 10/8/13		15,600		15,600
RBC Municipal Products, Inc. Trust G.O. Floater Certificates, Series E-32, (Royal Bank of Canada LOC), 0.07%, 10/8/13 (1)		19,900		19,900
University of Massachusetts Building Authority Municipal Interest Bearing CP, (State Street Bank & Trust Co. LOC), 0.11%, 1/9/14		8,000		8,000
				73,450
Michigan – 0.9%
Ann Arbor Michigan Economic Development Corp. Limited Obligation Revenue VRDB, Glacier Hills, Inc. Project, Series A, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		11,545		11,545
Ann Arbor Michigan Economic Development Corp. Limited Obligations Revenue Refunding Bonds, Glacier Hills, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		3,715		3,715
Michigan Finance Higher Education Facilities Authority Limited Obligation Revenue VRDB, University, (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/8/13		7,875		7,875
Michigan State Strategic Fund Limited Obligation Revenue VRDB, YMCA Metropolitan Detroit Project, (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/8/13		4,200		4,200

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Michigan – 0.9% – continued
Michigan State Strategic Fund Ltd. Obligation Revenue Bonds, Lansing St. Vincent Home Project, (Comerica Bank LOC), 0.07%, 10/8/13		$4,960		$4,960
Michigan State Strategic Fund Ltd. Obligation Revenue Refunding VRDB, Consumers Energy Co., (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/8/13		8,700		8,700
Michigan State University Revenue VRDB, 0.06%, 10/8/13		1,000		1,000
Michigan Strategic Fund Limited Obligation Revenue VRDB, Tubelite, Inc. Project, (Comerica Bank LOC), 0.08%, 10/8/13		10,000		10,000
				51,995
Minnesota – 2.6%
Center City Minnesota Health Care Facilities Revenue VRDB, Hazelden Foundation Project, (U.S. Bank N.A. LOC), 0.08%, 10/8/13		6,700		6,700
Center City Minnesota Health Care Facilities Revenue VRDB, Hazelden Foundation Project, Series 2002, (U.S. Bank N.A. LOC), 0.08%, 10/8/13		3,900		3,900
City of Edina Minnesota Multifamily Housing Revenue Refunding VRDB, Vernon Terrace Apartments Project, (FHLMC LOC), 0.07%, 10/8/13		5,705		5,705
City of Rochester Minnesota Health Care Variable Rate Demand Obligations, 0.10%, 10/16/13		20,000		20,000
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt Revenue Bonds, Minnesota, Series 2009-59, 0.07%, 10/8/13 (1)		25,900		25,900
Fridley Minnesota Senior Housing Refunding VRDB, Banfill Crossing, Series A, (FNMA LOC), 0.08%, 10/8/13		7,985		7,985

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Minnesota – 2.6% – continued
Minneapolis Minnesota Student Residence Revenue VRDB, Riverton Community Housing Project, (FHLB of Des Moines LOC), 0.08%, 10/8/13		$6,315		$6,315
Minnesota Agricultural & Economic Development Board Revenue VRDB, Evangelical Lutheran Project, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		13,050		13,050
Minnesota School Districts Capital Equipment Borrowing Program Tax & Aid Anticipation COPS, Series A, 2.00%, 9/16/14		10,500		10,678
Minnesota State Higher Educational Facilities Authority Revenue VRDB, Concordia University St. Paul, Series 6Q, (U.S. Bank N.A. LOC), 0.08%, 10/1/13		4,200		4,200
RBC Municipal Products, Inc. Trust Revenue VRDB, Series E-19, (Royal Bank of Canada LOC), 0.07%, 10/8/13 (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), 0.06%, 10/8/13		16,300		16,300
				150,733
Mississippi – 0.9%
Mississippi Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Multi-Modal, Peco Foods, Inc. Project, (BMO Harris Bank N.A. LOC), 0.07%, 10/8/13		6,650		6,650
Mississippi Business Finance Corp. Gulf Opportunity Zone Revenue VRDB, Chevron USA, Inc., Series B, (Chevron Corp. Gtd.), 0.07%, 10/8/13		16,190		16,190
Mississippi Business Finance Corp. Revenue VRDB, Mississippi State Business Finance Commission Gulf Opportunity Zone, Chevron USA, Inc., Series E, (Chevron Corp. Gtd.), 0.05%, 10/1/13		5,000		5,000

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Mississippi – 0.9% – continued
Mississippi Hospital Equipment & Facilities Authority Revenue VRDB, Series 1, North Mississippi Health Services, 0.08%, 10/8/13		$25,000		$25,000
				52,840
Missouri – 2.2%
Florissant Missouri IDA Revenue Refunding VRDB, Retirement Housing Foundation, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		5,645		5,645
Kansas City Missouri IDA Multifamily Housing Revenue Refunding VRDB, Woodlands Partners Project, (FNMA LOC), 0.07%, 10/8/13		4,045		4,045
Missouri State Health & Educational Facilities Authority Health Facilities Revenue VRDB, SSM Health Care, Series C5, 0.09%, 10/8/13		8,600		8,600
Missouri State Health & Educational Facilities Authority Revenue VRDB, Ascension Health Senior, Series C4, 0.08%, 10/8/13		10,450		10,450
Missouri State Health & Educational Facilities Authority Revenue VRDB, Lutheran Senior Services Project, (PNC Bank N.A. LOC), 0.07%, 10/8/13		23,350		23,350
Missouri State Health & Educational Facilities Authority Revenue VRDB, Pooled Hospital Freeman Health Systems, Series C, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		5,805		5,805
Missouri State Health & Educational Facilities Authority Revenue VRDB, Saint Louis Priory School Project, (U.S. Bank N.A. LOC), 0.11%, 10/8/13		1,000		1,000
Missouri State Health & Educational Facilities Authority Revenue VRDB, Series C-2, Ascension Health, 0.08%, 10/8/13		8,100		8,100
Platte County Missouri IDA Multifamily Revenue Refunding Bonds, Wexford Place Project, (FHLMC LOC), 0.09%, 10/8/13		6,790		6,790

See Notes to the Financial Statements.

MONEY MARKET FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Missouri – 2.2% – continued
RBC Municipal Products Inc. Trust Revenue Bonds, Floater Certificates, Series E-40, Related to Missouri, (Royal Bank of Canada LOC), 0.07%, 10/8/13 (1)		$18,000		$18,000
St. Charles County Missouri IDA Revenue Refunding VRDB, Casalon Apartments Project, (FNMA Escrowed) 0.07%, 10/8/13		6,170		6,170
St. Charles County Missouri IDA Revenue Refunding VRDB, Country Club Apartments Project, (FNMA LOC), 0.07%, 10/8/13		21,000		21,000
St. Charles County Missouri IDA Revenue Refunding VRDB, Remington Apartments Project, (FNMA Escrowed) 0.07%, 10/8/13		10,700		10,700
				129,655
Nebraska – 1.2%
Central Plains Energy Project Nebraska Gas Project VRDB, Project No. 2, 0.07%, 10/8/13		24,300		24,300
Central Plains Gas Energy Project Revenue Bonds, Series 91TP, (Branch Banking & Trust Co. LOC), 0.07%, 10/8/13 (1)		8,365		8,365
Deutsche Bank Spears/Lifers Trust Revenue Bonds, Series DBE-1101, (Deutsche Bank A.G. Gtd.), 0.12%, 10/8/13 (1)		10,000		10,000
Omaha Nebraska Public Power District Separate Electric Revenue Bonds, Omaha Power, Eagle-720053008-Class A, (Berkshire Hathaway, Inc. Insured), 0.08%, 10/8/13 (1)		27,760		27,760
				70,425
Nevada – 0.2%
Carson City Nevada Hospital Revenue VRDB, Carson Tahoe Hospital Project, Series B, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		3,400		3,400

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Nevada – 0.2% – continued
Carson City Nevada Hospital Revenue VRDB, Carson Tahoe Regional Medical Center, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		$8,215		$8,215
				11,615
New Hampshire – 1.0%
New Hampshire Health & Education Facilities Authority Revenue VRDB, Easter Seals New Hampshire, Series A, (FHLB of Boston LOC), 0.09%, 10/8/13		10,160		10,160
New Hampshire Health & Education Facilities Authority Revenue VRDB, Phillips Exeter Academy, 0.09%, 10/8/13		25,000		25,000
New Hampshire Health & Educational Facilities Authority Revenue VRDB, Tilton School, (TD Bank N.A. LOC), 0.07%, 10/8/13		15,395		15,395
New Hampshire Higher Educational and Health Facilities Authority Revenue Bonds, Hunt Community Issue, (TD Bank N.A. LOC), 0.05%, 10/8/13		7,055		7,055
				57,610
New Jersey – 0.9%
BB&T Municipal Trust Revenue Bonds, Series 2047, (Branch Banking & Trust Co. LOC), 0.09%, 10/8/13 (1)		325		325
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Revenue Bonds, Series DB-447, New Jersey, (Deutsche Bank A.G. Gtd.), 0.08%, 10/8/13 (1)		28,170		28,170
Hudson County Improvement Authority Gtd. Pooled Revenue Notes, Series P-1, (Hudson County New Jersey Insured), 1.00%, 5/23/14		13,000		13,050
Nuveen New Jersey Dividend Advantage Municipal Fund VRDP, 0.17%, 10/8/13 (1)		10,000		10,000
				51,545

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
New Mexico – 1.9%
New Mexico Municipal Energy Acquisition Authority Gas Supply Revenue VRDB, Series B, 0.07%, 10/8/13		$74,400		$74,400
New Mexico State Hospital Equipment Loan Council Revenue VRDB, Presbyterian Healthcare, Series B, 0.07%, 10/8/13		16,500		16,500
Series C, 0.07%, 10/8/13		19,500		19,500
				110,400
New York – 7.7%
BB&T Municipal Trust Revenue VRDB, (Branch Banking & Trust Co. LOC), 0.14%, 10/8/13 (1)		12,355		12,355
City of New York G.O. VRDB, Subseries A-4, (Sumitomo Mitsui Banking Corp. LOC), 0.06%, 10/8/13		9,500		9,500
City of New York G.O., Subseries G-7, (Bank of Tokyo-Mitsubishi UFJ Ltd. LOC), 0.05%, 10/1/13		985		985
Cohoes Industrial Development Agency Urban Cultural Park Facilities Revenue VRDB, Eddy Cohoes Project, (Bank of America N.A. LOC), 0.07%, 10/8/13		2,005		2,005
Metropolitan Transportation Authority New York Revenue VRDB, Subseries E-2, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		10,000		10,000
Monroe County New York Industrial Development Agency Revenue VRDB, Margaret Woodbury Strong, (Manufacturers & Traders Trust Co. LOC), 0.07%, 10/8/13		28,365		28,365
Monroe County New York Industrial Development Corp. Revenue VRDB, St. Ann’s Nursing Home, (HSBC Bank USA N.A. LOC), 0.09%, 10/8/13		4,710		4,710
Nassau Health Care Corp. Revenue VRDB, Series B-1, (TD Bank N.A. LOC), 0.06%, 10/8/13		2,980		2,980

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
New York – 7.7% – continued
New York City New York Industrial Development Agency Civic Facilities Revenue VRDB, Sephardic Community Youth Center, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13 (1)(2)		$2,000		$2,000
New York Liberty Development Corp.
Revenue Refunding VRDB, 3 World Trade Center, Series A, (U.S. Treasury Escrowed) 0.23%, 6/19/14		120,000		120,000
New York Mortgage Agency Homeowner Revenue VRDB, Series 159, 0.07%, 10/8/13		30,000		30,000
New York Power Authority G.O. Consented, 0.15%, 3/1/14		8,940		8,940
New York State Dormitory Authority Revenue Non-State Supported Debt VRDB, Samaritan Medical Center, Series B, (HSBC Bank USA N.A. LOC), 0.07%, 10/8/13		9,105		9,105
New York State Dormitory Authority Revenues Non State Supported Debt Revenue VRDB, FFT Senior Communities, Inc., (HSBC Bank USA N.A. LOC), 0.07%, 10/8/13		2,800		2,800
New York State Dormitory Authority Revenues Non State Supported Debt VRDB, University of Rochester, Series A-1, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13		25,180		25,180
New York State Dormitory Authority Revenues State Supported Debt VRDB, City University, Series D, (TD Bank N.A. LOC), 0.07%, 10/8/13		9,300		9,300
New York State Energy Research & Development Authority Revenue Bonds, Subseries A-4, (Bank of Nova Scotia LOC), 0.06%, 10/8/13		11,600		11,600
New York State Housing Finance Agency Revenue VRDB, 175 West 60th Street, Series A-2, (Manufacturers & Traders Trust Co. LOC), 0.07%, 10/8/13		10,000		10,000

See Notes to the Financial Statements.

MONEY MARKET FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
New York – 7.7% – continued
New York State Housing Finance Agency Revenue VRDB, Affordable Housing, Clinton Park Phase II, Series E-31, (Wells Fargo Bank N.A. LOC), 0.05%, 10/8/13		$15,000		$15,000
New York State Housing Finance Agency Revenue VRDB, Housing, Dock Street, Series A, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13		12,400		12,400
New York State Housing Finance Agency Revenue VRDB, Housing-West 30th Street, Series A, (Wells Fargo Bank N.A. LOC), 0.05%, 10/8/13		4,600		4,600
New York State Housing Finance Agency Revenue VRDB, Series A, Riverside Center, (Bank of America N.A. LOC), 0.06%, 10/8/13		5,000		5,000
North Tonawanda City School District G.O. Unlimited BANS, 1.00%, 9/18/14		7,555		7,604
Onondaga County New York Industrial Development Agency Civic Facilities Revenue VRDB, Syracuse Research Corp. Project, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13		6,450		6,450
RBC Municipal Products, Inc. Trust New York Revenue Bonds, Floater Certificates Series E-33, (Escrowed) 0.27%, 10/8/13 (1)		38,000		38,000
Rensselaer County New York Industrial Development Agency Revenue VRDB, Hawthorne Ridge Project, (RBS Citizens N.A. LOC), 0.08%, 10/8/13		4,530		4,530
Town of Niagara New York Area Development Corp. Revenue VRDB, Niagara Falls Memorial, (HSBC Bank USA N.A. LOC), 0.07%, 10/8/13		7,310		7,310
Triborough Bridge & Tunnel Authority New York Revenue VRDB, Series C, 0.08%, 10/8/13		23,300		23,300

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
New York – 7.7% – continued
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates Series 105C, in NY, 0.37%, 12/6/13 (1)(2)		$25,000		$25,000
				449,019
North Carolina – 3.1%
BB&T Municipal Trust Floaters, Series 1038, (Branch Banking & Trust Co. LOC), 0.24%, 10/8/13 (1)		5,740		5,740
City of Charlotte North Carolina Municipal Interest Bearing CP, Series 2009, 0.18%, 2/14/14		19,000		19,000
City of Raleigh North Carolina COPS VRDB, Downtown, Series B, 0.07%, 10/8/13		36,300		36,300
Forsyth County North Carolina Industrial Facilities Authority Revenue VRDB, Recreation Facilities-YMCA Winston, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		1,310		1,310
Guilford County North Carolina G.O. VRDB, Series A, 0.07%, 10/8/13		18,055		18,055
Series B, 0.06%, 10/8/13		4,200		4,200
North Carolina Capital Facilities Finance Agency Revenue Bonds, Eagle-20060012 Class A, 0.07%, 10/8/13 (1)		12,000		12,000
North Carolina Capital Facilities Finance Agency Revenue VRDB, YMCA of Greater Charlotte Project, Series A, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		4,635		4,635
North Carolina Capital Facilities Financial Agency Educational Facilities Revenue VRDB, Campbell University, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		5,100		5,100
North Carolina Capital Facilities Financial Agency Educational Facilities Revenue VRDB, Rocky Mountain Preparatory School, Series H, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		5,500		5,500

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
North Carolina – 3.1% – ontinued
North Carolina Capital Facilities Financial Agency Recreational Facilities Revenue VRDB, YMCA Greater Charlotte Project, Series K, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		$12,170		$12,170
North Carolina Medical Care Commission Health Care Facilities Revenue Refunding VRDB, Wakemed, Series C, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13		13,365		13,365
Raleigh Durham North Carolina Airport Authority Revenue Refunding VRDB, Series C, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		10,200		10,200
University of North Carolina at Chapel Hill Revenue Bonds, Eagle 720053014, Class A, 0.08%, 10/8/13(1)		5,800		5,800
Winston-Salem North Carolina Water & Sewer System Revenue VRDB, Series B, 0.10%, 10/8/13		26,600		26,600
				179,975
Ohio – 1.8%
Akron Bath Copley Ohio Joint Township Hospital District Revenue VRDB, Hospital Facilities-Summa Health Systems, Series B, (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/8/13		12,355		12,355
Athens County Ohio Port Authority Housing Revenue VRDB, University Housing For Ohio, Inc. Project, (Wells Fargo Bank N.A. LOC), 0.08%, 10/8/13		25,970		25,970
Cleveland Ohio Airport System Revenue VRDB, Series D, (Bank of America N.A. LOC), 0.08%, 10/8/13		10,000		10,000
Cleveland-Cuyahoga County Ohio Port Authority Revenue VRDB, Euclid Avenue Housing Corp. Project, (U.S. Bank N.A. LOC), 0.09%, 10/8/13		9,000		9,000
Cleveland-Cuyahoga County Port Authority Cultural Facilities Revenue VRDB, Playhouse Square Foundation Project, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		9,175		9,175

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Ohio – 1.8% – continued
Franklin County Ohio Health Care Facilities Revenue VRDB, Friendship Village Dublin, (PNC Bank N.A. LOC), 0.07%, 10/8/13		$8,960		$8,960
Franklin County Ohio Health Care Facilities Revenue VRDB, Ohio Presbyterian, Series A, (PNC Bank N.A. LOC), 0.07%, 10/8/13		2,450		2,450
Lancaster Port Authority Ohio Gas Revenue VRDB, 0.07%, 10/8/13		5,760		5,760
Montgomery County Ohio Economic Development Revenue VRDB, The Dayton Art Institute, (U.S. Bank N.A. LOC), 0.08%, 10/8/13		4,900		4,900
Nuveen Ohio Quality Income Municipal Fund VRDP, Series 1-1480, 0.16%, 10/8/13 (1)		16,000		16,000
				104,570
Oklahoma – 0.3%
Oklahoma Water Resources Board Revenue Bonds, 0.30%, 12/2/13		1,755		1,755
RBC Municipal Products Inc. Trust Revenue Bonds, Floater Certificates, Series E-37 for Oklahoma, (Royal Bank of Canada LOC), 0.07%, 10/8/13 (1)		15,000		15,000
				16,755
Oregon – 2.0%
BB&T Municipal Trust Revenue Bonds, Series A, (Branch Banking & Trust Co. LOC), 0.07%, 10/8/13(1)		16,295		16,295
Oregon Health & Science University Revenue VRDB, Series B-2, (Union Bank N.A. LOC), 0.06%, 10/8/13		6,000		6,000
Oregon State Facilities Authority Revenue VRDB, Hazelden Springbrook Project, Series A, (U.S. Bank N.A. LOC), 0.08%, 10/8/13		3,700		3,700
Oregon State Facilities Authority Revenue VRDB, Quatama Crossing Housing, Series O, (FNMA LOC), 0.09%, 10/8/13		28,030		28,030

See Notes to the Financial Statements.

MONEY MARKET FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Oregon – 2.0% – continued
Oregon State G.O. Limited TANS, Series A, 1.50%, 7/31/14		$60,000		$60,658
Oregon State Health Housing Educational & Cultural Facilities Authority Revenue VRDB, The Evangelical Lutheran, Series A, (U.S. Bank N.A. LOC), 0.11%, 10/8/13		1,800		1,800
Oregon State Health, Housing, Educational & Cultural Facilities Authority Revenue Bonds, Assumption Village Project, Series A, (Union Bank N.A. LOC), 0.09%, 10/8/13		2,980		2,980
				119,463
Pennsylvania – 6.1%
Allegheny County IDA Revenue VRDB, Education Center Watson, (PNC Bank N.A. LOC), 0.08%, 10/8/13		4,300		4,300
BB&T Municipal Trust Revenue Bonds, Series 228, (Branch Banking & Trust Co. LOC), 0.11%, 10/8/13 (1)		29,680		29,680
Beaver County IDA Revenue Refunding VRDB, Firstenergy Generation, (UBS A.G. LOC), 0.09%, 10/8/13		10,000		10,000
Butler County Pennsylvania IDA Revenue Refunding VRDB, Concordia Lutheran, Series A, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		15,030		15,030
Butler County Pennsylvania IDA Revenue VRDB, Concordia Lutheran, Series A, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		9,505		9,505
City of Philadelphia Pennsylvania Gas Works Revenue Refunding VRDB, (PNC Bank N.A. LOC), 0.07%, 10/8/13		22,200		22,200
Delaware County Pennsylvania Authority Revenue VRDB, Riddle Village Project (Bank of America N.A. LOC), 0.09%, 10/8/13		5,095		5,095

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Pennsylvania – 6.1% – continued
Haverford Township Pennsylvania G.O., School District, (TD Bank N.A. LOC), 0.07%, 10/8/13		$7,800		$7,800
Horizon Hospital System Authority Pennsylvania Health & Housing Facilities Revenue VRDB, Senior, St. Paul Homes Project, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13		7,210		7,210
Lancaster Pennsylvania IDA Revenue VRDB, Mennonite Home Project, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13		6,600		6,600
Lower Merion Pennsylvania School District G.O. VRDB, Capital Project, Series A, (State Street Bank & Trust Co. LOC), 0.06%, 10/8/13		11,150		11,150
Series B, (U.S. Bank N.A. LOC), 0.06%, 10/8/13		10,500		10,500
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue VRDB, PSEG Power, (TD Bank N.A. LOC), 0.06%, 10/8/13		29,900		29,900
Pennsylvania Multifamily Housing Finance Agency Revenue VRDB, Special Limited Obligation, Foxwood, (FHLMC LOC), 0.07%, 10/8/13		3,200		3,200
Philadelphia School District G.O. Revenue Refunding VRDB, Series G, (Wells Fargo Bank N.A. LOC), 0.06%, 10/8/13		25,000		25,000
Philadelphia School District Pennsylvania G.O. Refunding VRDB, Series F, (Barclays Bank PLC LOC), 0.07%, 10/8/13		28,150		28,150
Philadelphia School District Pennsylvania Revenue Refunding G.O. VRDB, Series C, (TD Bank N.A. LOC), 0.07%, 10/8/13		12,745		12,745
RBC Municipal Products, Inc. Trust Floater Certificates G.O., (Royal Bank of Canada LOC), 0.07%, 10/8/13 (1)		5,800		5,800

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Pennsylvania – 6.1% – continued
RBC Municipal Products, Inc. Trust Floater Certificates Revenue Bonds, Series B, (Royal Bank of Canada LOC), 0.07%, 10/8/13 (1)		$6,000		$6,000
RBC Municipal Products, Inc. Trust Pennsylvania Revenue Bonds, Floater Certificates Series E-34, (Escrowed) 0.27%, 10/8/13 (1)		65,000		65,000
Southcentral Pennsylvania General Authority Revenue VRDB, Hanover Lutheran Village Project, (Manufacturers & Traders Trust Co. LOC), 0.12%, 10/8/13		7,775		7,775
University of Pittsburgh Pennsylvania of the Commonwealth System of Higher Education Revenue Notes, Pittsburgh Asset Notes, 2.00%, 7/11/14		26,000		26,366
West Cornwall Pennsylvania Township Municipal Authority Revenue VRDB, Series 2006, Senior Living Facility Lebanon Valley, (PNC Bank N.A. LOC), 0.07%, 10/8/13		3,900		3,900
				352,906
Puerto Rico – 3.5%
BB&T Municipal Trust Special Tax Bonds, Series 22, (Branch Banking & Trust Co. LOC), 0.09%, 10/8/13(1)		12,330		12,330
RBC Municipal Products, Inc. Trust Floater Certificates, Series E-46, (Royal Bank of Canada LOC), 0.17%, 10/8/13 (1)(2)		90,000		90,000
Rib Floater Trust Adjustable G.O. Unlimited Bonds, Series 18, (Barclays Bank PLC LOC), 0.12%, 10/8/13 (1)		40,000		40,000
RIB Muni Floater Trust Adjustable Revenue Bonds, Series 8WE for Puerto Rico, (Barclays Bank PLC LOC), 0.12%, 10/8/13 (1)		64,000		64,000
				206,330

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Rhode Island – 0.5%
Rhode Island Health & Educational Building Corp. Higher Education Facility Revenue Refunding VRDB, Roger Williams University, Series A, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		$15,965		$15,965
Rhode Island Health & Educational Building Corp. Higher Educational Facilities Revenue Refunding VRDB, Bryant University, Series C-15, (TD Bank N.A. LOC), 0.07%, 10/8/13		11,905		11,905
				27,870
South Carolina – 0.9%
City of Columbia South Carolina Waterworks & Sewer System Revenue VRDB, (U.S. Bank N.A. LOC), 0.08%, 10/1/13		5,500		5,500
Eclipse Funding Trust, G.O., Series 2006-0152, Solar Eclipse, Spartan, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		10,345		10,345
South Carolina Jobs EDA Health Facilities Revenue Refunding VRDB, Episcopal, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13		13,270		13,270
South Carolina Jobs EDA Hospital Revenue VRDB, Oconee Memorial Hospital, Inc., Series B, (Wachovia Bank N.A. LOC), 0.08%, 10/8/13		8,600		8,600
South Carolina State Housing Finance & Development Authority Multifamily Revenue VRDB, Rental Franklin Square, (FHLMC LOC), 0.07%, 10/8/13		9,800		9,800
South Carolina State Housing Financial & Development Authority Multifamily Revenue VRDB, Rental Housing Brookside Apartments, Series D, (FHLMC LOC), 0.07%, 10/8/13		4,700		4,700
				52,215

See Notes to the Financial Statements.

MONEY MARKET FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Tennessee – 1.5%
Blount County Tennessee Public Building Authority Revenue VRDB, Local Government Public Improvement, Series E-5-B, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		$4,745		$4,745
Blount County Tennessee Public Building Authority VRDB, Local Government Public Improvement, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		11,000		11,000
Metropolitan Government Nashville & Davidson County Tennessee Health & Educational Facilities Board Revenue Refunding VRDB, Multifamily, Timberlake Project, (FNMA LOC), 0.07%, 10/8/13		1,150		1,150
Metropolitan Government Nashville & Davidson County Tennessee IDB Multifamily Housing Refunding VRDB, Ridgelake Apartments Project, Series G, (FHLMC LOC), 0.07%, 10/8/13		5,525		5,525
Metropolitan Government Nashville & Davidson County Tennessee IDB Revenue Refunding Bonds, Multifamily Housing Spinnaker, Series A, (FNMA LOC), 0.07%, 10/8/13		13,655		13,655
Metropolitan Government Nashville & Davidson County Tennessee IDB Revenue VRDB, Multifamily Housing, Arbor Knoll, Series A, (FNMA LOC), 0.07%, 10/8/13		13,400		13,400
Sevier County Tennessee Public Building Authority VRDB, Local Government Public Improvement, Series B-1, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		7,985		7,985
Shelby County Tennessee Health Educational & Housing Facilities Board Multifamily Housing Revenue VRDB, Gateway Projects, Series A-1 (FNMA LOC), 0.07%, 10/8/13		5,575		5,575

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Tennessee – 1.5% – continued
Tennessee State Energy Acquisition Corp. Gas Revenue Floaters, (Branch Banking & Trust Co. LOC), 0.07%, 10/8/13 (1)		$25,570		$25,570
				88,605
Texas – 15.1%
Austin Texas Water & Wastewater System Revenue Refunding VRDB, 0.07%, 10/8/13		17,500		17,500
BB&T Municipal Trust Various States Revenue Bonds, Floaters, Series 2043, (Branch Banking & Trust Co. LOC), 0.10%, 10/8/13 (1)		1,295		1,295
Capital Area Housing Finance Corp. Texas Revenue VRDB, Encino Pointe Apartments, (FHLMC LOC), 0.07%, 10/8/13		15,495		15,495
Carroll Texas Independent School District G.O. Bonds, School Building, (Texas PSF Insured), 0.07%, 10/8/13		10,900		10,900
City of Garland Texas Municipal Interest Bearing CP, (Sumitomo Mitsui Banking Corp. LOC), 0.14%, 12/13/13		15,000		15,000
0.13%, 12/13/13		10,000		10,000
City of Houston Texas Municipal Interest Bearing CP, 0.12%, 10/22/13		10,000		10,000
City of Houston Texas Utility System Adjustable Revenue Refunding Bonds, First Lien, Series B-4, (Bank of Tokyo-Mitsubishi UFJ Ltd. LOC), 0.08%, 10/8/13		22,775		22,775
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt 23, Revenue Bonds, Series 2009-52, 0.07%, 10/8/13 (1)		20,000		20,000
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian School, (Wachovia Bank N.A. LOC), 0.07%, 10/8/13		4,040		4,040
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian, (Wells Fargo Bank N.A. LOC), 0.07%, 10/8/13		4,840		4,840

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Texas – 15.1% – continued
Denton Texas Independent School District G.O. VRDB, School Building, Series B, (Texas PSF Insured), 0.07%, 10/8/13		$30,000		$30,000
Deutsche Bank Spears/Lifers Trust Adjustable Revenue Bonds, Series DBE-1193, (Deutsche Bank A.G. Gtd.), 0.17%, 10/8/13 (1)		13,330		13,330
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Series 526 (Deutsche Bank A.G. Gtd.), 0.12%, 10/8/13 (1)		9,140		9,140
Eclipse Funding Trust, Texas, G.O., Series 2007-0080, Solar Eclipse, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		10,315		10,315
Eclipse Funding Trust, Waco Texas, Revenue Bonds, Series 2007-0040, Solar Eclipse, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		21,125		21,125
Harris County Texas Hospital District Revenue Refunding VRDB, Senior Lien, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		19,055		19,055
Houston Texas Airport Systems Revenue Refunding VRDB, (Barclays Bank PLC LOC), 0.08%, 10/8/13		20,000		20,000
Klein Independent School District G.O. Floaters, Series 39TP, (Wells Fargo Bank N.A. LOC), 0.08%, 10/8/13 (1)		40		40
Mesquite Independent School District G.O. VRDB, School Building, Series A, (Texas PSF Insured), 0.09%, 10/8/13		200		200
Northside Independent School Building District G.O. Unlimited Bonds, (Texas PSF Gtd.), 2.00%, 8/15/14		3,715		3,772
Northwest Texas Independent School District G.O. VRDB, (Texas PSF Insured), 0.08%, 10/8/13		2,660		2,660

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Texas – 15.1% – continued
Nueces County Health Facilities Development Authority Revenue VRDB, Driscoll Children’s Foundation, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		$9,800		$9,800
Port Arthur Texas Navigation District Industrial Development Corp., Exempt Facilities Revenue VRDB, Total Petrochemicals, Series A, (Total S.A. Gtd.), 0.09%, 10/8/13		60,865		60,865
Port of Arthur Texas Navigation District Industrial Development Corp. Exempt Facilities Revenue VRDB, Total Petrochemicals, Series B, (Total S.A. Gtd.), 0.09%, 10/8/13		5,000		5,000
Port of Port Arthur Navigation District Revenue VRDB, Motiva Enterprises, 0.07%, 10/1/13		29,400		29,400
Series C, (Motiva Enterprises LLC Gtd.), 0.07%, 10/1/13		40,500		40,500
Port of Port Arthur Texas Navigation District Exempt Facilities Revenue VRDB, Total Petrochemicals USA, (Total S.A. Gtd.), 0.09%, 10/8/13		12,900		12,900
Port of Port Arthur Texas Navigation District Revenue VRDB, Motiva Enterprises, Series B, 0.07%, 10/1/13		86,600		86,600
RBC Municipal Products, Inc. Trust Revenue Bonds, Floaters Certificates, Series E-27, (Royal Bank of Canada LOC), 0.07%, 10/8/13 (1)		10,000		10,000
State of Texas G.O. VRDB, Series A, 0.06%, 10/8/13		8,135		8,135
State of Texas G.O. VRDB, Veterans Housing Assistance Fund, 0.07%, 10/8/13		30,380		30,380
State of Texas G.O. VRDB, Veterans, Series B, (Sumitomo Mitsui Banking Corp. LOC), 0.08%, 10/8/13		11,400		11,400
State of Texas G.O. VRDB, Veterans, Series A, (Sumitomo Mitsui Banking Corp. LOC), 0.07%, 10/8/13		15,000		15,000

See Notes to the Financial Statements.

MONEY MARKET FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Texas – 15.1% – continued
Strategic Housing Finance Corp. Travis County Multi Family Housing Revenue Adjustable Revenue Bonds, Silver Springs Apartments Project, (U.S. Treasury Escrowed), 0.35%, 8/1/14		$15,000		$15,000
Tarrant County Texas Cultural Educational Finance Corp. Retirement Facilities Revenue VRDB, Northwest Edgemere Project, (Bank of America N.A. LOC), 0.09%, 10/8/13		18,080		18,080
Tarrant County Texas Housing Finance Corp. Revenue Refunding VRDB, Multifamily Housing Apartments Project, (Wachovia Bank N.A. LOC), 0.07%, 10/8/13		7,050		7,050
Tarrant County Texas Housing Finance Corp. Revenue VRDB, Multifamily Housing, Gateway Apartments, (FNMA LOC), 0.07%, 10/8/13		7,830		7,830
Texas Department Multifamily Housing & Community Affairs Revenue VRDB, Woodmont Apartments, (FHLMC LOC), 0.07%, 10/8/13		14,775		14,775
Texas State TRANS, 2.00%, 8/28/14		232,255		236,051
				880,248
Utah – 0.6%
Utah Housing Corp. Multifamily Revenue VRDB, Florentine Villas, Series A, (FHLMC LOC), 0.09%, 10/8/13		18,880		18,880
Wells Fargo Stage Trust Adjustable Revenue Bonds, Floater Certificates, Series 17C, 0.10%, 10/8/13 (1)		15,000		15,000
				33,880

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Vermont – 0.4%
Vermont Educational & Health Buildings Financing Agency Revenue Refunding VRDB, Hospital, Fletcher Allen, Series A, (TD Bank N.A. LOC), 0.07%, 10/8/13		$21,690		$21,690
Virginia – 1.2%
Alexandria IDA Revenue Refunding VRDB, Goodwin House, (Wachovia Bank N.A. LOC), 0.07%, 10/1/13		7,000		7,000
Hampton Virginia Redevelopment & Housing Authority Multifamily Housing Revenue Refunding VRDB, Hampton Center Apartments Project, (FHLMC LOC), 0.07%, 10/8/13		13,310		13,310
Lewistown Community Center Development Authority Revenue Floaters, 0.07%, 10/8/13 (1)		13,025		13,025
Lynchburg Virginia IDA Revenue Refunding VRDB, Hospital Centra Health, Series D, (FHLB of Atlanta LOC), 0.08%, 10/8/13		7,000		7,000
Series E, (FHLB of Atlanta LOC), 0.08%, 10/8/13		6,000		6,000
Nuveen Virginia Premium Income Municipal Fund VRDP, 0.17%, 10/8/13 (1)		25,000		25,000
				71,335
Washington – 1.0%
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt, Revenue Bonds, Washington, Series 2009-65, 0.07%, 10/8/13 (1)		14,740		14,740
Deutsche Bank Spears/Lifers Trust Revenue Bonds, Series DBE-1095, (Deutsche Bank A.G. Gtd.), 0.12%, 10/8/13 (1)		1,600		1,600
Washington Health Care Facilities Authority Revenue VRDB, Catholic Health, 0.07%, 10/8/13		20,800		20,800
Washington State Housing Finance Commission Non Profit Revenue VRDB, District Council No. 5, (Wells Fargo Bank N.A. LOC), 0.17%, 10/8/13		2,655		2,655

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Washington – 1.0% – continued
Washington State Housing Finance Commission Revenue Refunding VRDB, Antioch University Project, (Union Bank N.A. LOC), 0.07%, 10/8/13		$4,825		$4,825
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates Series 109C for WA, 0.37%, 12/5/13 (1)(2)		14,475		14,475
				59,095
West Virginia – 0.7%
Cabell County West Virginia County Commission Revenue VRDB, Huntington YMCA Project, (JPMorgan Chase Bank N.A. LOC), 0.17%, 10/8/13		2,570		2,570
Eclipse Funding Trust Solar Eclipse West Virginia Revenue Bonds, Series 2006-0132, (U.S. Bank N.A. LOC), 0.07%, 10/8/13 (1)		17,360		17,360
West Virginia Hospital Finance Authority Revenue Refunding & Improvement VRDB, Cabell Hospital, Series A, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13		22,090		22,090
				42,020
Wisconsin – 3.1%
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax, Revenue Bonds, Wisconsin, Series 2009-36, 0.07%, 10/8/13 (1)		25,000		25,000
Clipper Caraval Tax-Exempt Certificate Trust, Clipper Tax-Exempt 24, Revenue Bonds, Wisconsin, Series 2009-53, 0.07%, 10/8/13 (1)		21,745		21,745
Milwaukee Wisconsin Redevelopment Authority Lease Revenue VRDB, University of Wisconsin, Kenilworth Project, (U.S. Bank N.A. LOC), 0.07%, 10/8/13		17,390		17,390
PMA Levy & Aid Anticipation Revenue Notes Program, Series A, 2.00%, 10/17/14		7,250		7,378

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Wisconsin – 3.1% – continued
Wisconsin Department of Transportation Revenue VRDB, Floater Series 52TP, (Wells Fargo Bank N.A. LOC), 0.24%, 10/8/13 (1)		$8,100		$8,100
Wisconsin Health & Educational Facilities Authority Revenue Refunding VRDB, Concordia University, Inc., (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/8/13		2,945		2,945
Wisconsin Health & Educational Facilities Authority Revenue Refunding VRDB, Series D, Hospital Sisters Health System Services, 0.06%, 10/8/13		28,750		28,750
Wisconsin Health & Educational Facilities Authority Revenue VRDB, Hess Memorial Hospital, Inc., (U.S. Bank N.A. LOC), 0.07%, 10/8/13		335		335
Wisconsin Health & Educational Facilities Authority Revenue VRDB, St. Norbert College, Inc., (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		17,030		17,030
Wisconsin Health & Educational Facilities Authority Revenue VRDB, WHA Capital Access, Vernon, Series B, (U.S. Bank N.A. LOC), 0.08%, 10/1/13		280		280
Wisconsin School Districts Temporary Borrowing Program Revenue Notes, Cash Flow Administration Program Notes Participation, Series A, 1.00%, 10/15/13		13,700		13,703
Wisconsin State Health & Educational Facilities Authority Revenue Bonds, Mequon Jewish Project, (JPMorgan Chase Bank N.A. LOC), 0.12%, 10/8/13		5,140		5,140
Wisconsin State Health & Educational Facilities Authority Revenue Refunding VRDB, Lawrence University, (JPMorgan Chase Bank N.A. LOC), 0.08%, 10/8/13		1,850		1,850
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Series B, Aurora Healthcare, (Bank of Montreal LOC), 0.06%, 10/1/13		11,250		11,250

See Notes to the Financial Statements.

MONEY MARKET FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Wisconsin – 3.1% – continued
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Capital Lakes, Inc., Series B, (U.S. Bank N.A. LOC), 0.08%, 10/8/13		$6,120		$6,120
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Watertown Memorial Hospital, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.07%, 10/8/13		15,000		15,000
				182,016
Wyoming – 0.4%
Platte County Wyoming Adjustable PCR Bonds, Tri-State G&T, Series A, (Natural Rural Utilities Cooperative Finance Corp. LOC), 0.11%, 10/1/13		25,400		25,400
Municipal States Pooled Securities – 1.1%
BB&T Municipal Trust Floaters, Series 1036, (Branch Banking & Trust Co. LOC), 0.22%, 10/8/13 (1)		3,895		3,895
BB&T Municipal Trust Revenue Bonds, Floaters, Series 2006, (Branch Banking & Trust Co. LOC), 0.09%, 10/8/13 (1)		20,595		20,595
BB&T Municipal Trust Revenue VRDB, Series 2022, Floaters, (Branch Banking & Trust Co. LOC), 0.08%, 10/8/13 (1)		1,695		1,695
BB&T Municipal Trust Various States Adjustable Floaters, Series 5000, (Cooperative Centrale Raiffeisen Boeren LOC), 0.17%, 10/8/13 (1)		6,240		6,240
BB&T Municipal Trust Various States Revenue Bonds, Floaters, Series 1007, (Branch Banking & Trust Co. LOC), 0.17%, 10/8/13 (1)		3,005		3,005
BB&T Municipal Trust Various States VRDB, Series 1039, (Branch Banking & Trust Co. LOC), 0.17%, 10/8/13 (1)		4,820		4,820

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
MUNICIPAL INVESTMENTS – 99.9% – continued
Municipal States Pooled Securities – 1.1% – continued
BB&T Municipal Trust Various States, Series 1035, (Branch Banking & Trust Co. LOC), 0.17%, 10/8/13 (1)		$9,425		$9,425
Series 5002, (Cooperative Centrale Raiffeisen Boeren LOC), 0.32%, 10/8/13 (1)		12,700		12,700
				62,375
Total Municipal Investments
(Cost $5,817,980)				5,817,980
Total Investments – 99.9%
(Cost $5,817,980)(3)				5,817,980
Other Assets less Liabilities – 0.1%				7,585
NET ASSETS – 100.0%				$5,825,565

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $144,227,000 or 2.5% of net assets. Additional information on these restricted illiquid securities is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Arizona State University Board Regents COPS, Floaters, Series 1918, 0.10%, 10/8/13	6/19/13		$25
East Porter County Indiana School Building Corp. Revenue Bonds, Series DB-145, 0.17%, 10/8/13	4/10/12		5,545
Morehead Kentucky League of Cities Funding Trust Lease Program Revenue VRDB, Series A, 0.08%, 10/8/13	4/14/06-8/28/08		7,182
New York City New York Industrial Development Agency Civic Facilities Revenue VRDB, Sephardic Community Youth Center, 0.12%, 10/8/13	8/30/07-3/6/08		2,000

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000s)
RBC Municipal Products, Inc. Trust Floater Certificates, Series E-46, 0.17%, 10/8/13		8/30/13-9/25/13		$90,000
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 $5,817,980.

Percentages shown are based on Net Assets.

At September 30, 2013, the industry sectors for the Municipal Money Market Fund were:

INDUSTRY SECTOR	% OF TOTAL INVESTMENTS
Air, Transportation, Water Services and Solid Waste Management		17.0%
Educational Services		15.7
Electric Services, Power and Utility		7.3
Executive, Legislative & Gen. Gov.		14.3
Health Services, Hospital and Residential Care		17.6
Urban and Community Development and Housing Programs		10.1
Lease Revenues		1.2
Miscellaneous Revenues		7.5
All other sectors less than 5%		9.3
Total		100.0%

At September 30, 2013, the maturity analysis for the Municipal Money Market Fund as a percentage of investments was:

MATURITY ANALYSIS	%
1 Day		6.9%
2 - 15 Days		79.3
16 - 30 Days		0.5
61- 97 Days		1.1
98 - 180 Days		1.2
181 - 270 Days		3.3
271 - 366 Days		7.6
367 - 397 Days		0.1
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. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2013:

	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Investments held by Municipal Money Market Fund		$–		$5,817,980	(1)		$–		$5,817,980

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 58.5% (1)
Federal Farm Credit Bank – 9.3%
FFCB Bonds, 3.88%, 10/7/13		$4,995		$4,998
0.15%, 1/17/14		2,500		2,500
0.15%, 2/5/14		2,500		2,500
0.17%, 8/8/14		1,000		1,000
FFCB Discount Notes, 0.15%, 11/1/13		3,500		3,500
0.20%, 11/1/13		3,500		3,500
0.20%, 11/5/13		1,800		1,800
0.19%, 11/21/13		6,500		6,498
0.20%, 11/22/13		1,500		1,500
0.06%, 3/10/14		7,000		6,998
0.08%, 5/5/14		16,000		15,992
0.15%, 5/7/14		1,500		1,499
0.15%, 5/9/14		1,000		999
0.08%, 5/20/14		3,000		2,999
0.14%, 5/27/14		2,000		1,998
0.11%, 7/15/14		2,000		1,998
0.15%, 8/28/14		2,000		1,997
0.14%, 9/30/14		2,000		1,997
FFCB FRN, 0.15%, 10/1/13		6,000		6,000
0.17%, 10/1/13		5,000		5,000
0.22%, 10/1/13		5,500		5,501
0.29%, 10/1/13		2,000		2,003
0.31%, 10/1/13		4,500		4,505
0.33%, 10/1/13		3,000		3,003
0.16%, 10/4/13		5,000		5,000
0.15%, 10/6/13		4,000		3,999
0.15%, 10/8/13		4,500		4,500
0.15%, 10/11/13		3,500		3,500
0.15%, 10/13/13		3,000		3,000
0.21%, 10/13/13		2,500		2,501
0.18%, 10/15/13		2,700		2,700
0.13%, 10/18/13		4,500		4,499
0.16%, 10/18/13		3,500		3,499
0.20%, 10/22/13		2,000		2,002
0.15%, 10/23/13		3,000		2,999
0.32%, 10/23/13		2,000		2,005
				130,489

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 58.5% (1) – continued
Federal Home Loan Bank – 29.5%
FHLB Bonds, 0.12%, 10/1/13		$1,500		$1,500
0.20%, 10/4/13		4,500		4,500
0.13%, 10/9/13		7,500		7,500
0.12%, 10/18/13		6,500		6,500
0.10%, 11/1/13		3,000		3,000
0.10%, 11/8/13		1,500		1,500
0.10%, 11/12/13		8,500		8,500
0.10%, 11/13/13		5,000		5,000
0.28%, 11/21/13		1,000		1,000
0.10%, 11/22/13		14,000		14,000
0.18%, 1/7/14		7,000		7,000
0.11%, 1/17/14		4,000		4,000
0.10%, 1/22/14		4,000		4,000
0.13%, 1/22/14		4,000		4,000
0.09%, 1/30/14		5,500		5,499
0.18%, 3/6/14		1,500		1,500
0.09%, 3/10/14		19,500		19,498
0.18%, 3/11/14		3,500		3,500
0.07%, 3/17/14		3,000		3,000
0.06%, 3/20/14		8,000		7,999
0.17%, 4/1/14		3,000		3,000
0.27%, 4/3/14		4,000		4,003
0.17%, 8/1/14		4,000		4,000
0.18%, 8/1/14		4,000		4,000
0.18%, 8/5/14		3,000		3,000
0.17%, 8/22/14		2,000		2,000
0.17%, 8/26/14		1,000		1,000
0.20%, 8/29/14		2,500		2,500
0.17%, 9/12/14		3,000		2,999
0.24%, 10/7/14		3,000		3,000
FHLB Discount Notes, 0.08%, 10/2/13		5,000		5,000
0.09%, 10/2/13		8,000		8,000
0.13%, 10/2/13		8,500		8,500
0.05%, 10/4/13		7,500		7,500
0.09%, 10/4/13		2,000		2,000
0.11%, 10/11/13		15,000		14,999
0.10%, 10/16/13		4,000		4,000
0.11%, 10/16/13		4,500		4,500
0.12%, 10/23/13		2,500		2,500

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 58.5% (1) – continued
Federal Home Loan Bank – 29.5% – continued
0.04%, 10/30/13		$4,000		$4,000
0.04%, 11/1/13		5,000		5,000
0.02%, 11/8/13		3,000		3,000
0.04%, 11/8/13		9,000		9,000
0.04%, 11/20/13		7,000		7,000
0.10%, 11/27/13		2,000		2,000
0.02%, 12/6/13		6,000		6,000
0.02%, 12/11/13		6,000		5,999
0.11%, 12/11/13		8,000		7,999
0.12%, 12/13/13		8,500		8,498
0.13%, 1/2/14		5,500		5,498
0.16%, 1/2/14		3,500		3,499
0.10%, 1/21/14		3,000		2,999
0.16%, 2/3/14		1,500		1,499
0.17%, 2/13/14		3,000		2,998
0.11%, 2/14/14		10,000		9,996
0.11%, 2/28/14		1,000		999
0.16%, 3/10/14		1,500		1,499
0.08%, 3/12/14		3,000		2,999
0.12%, 3/14/14		3,000		2,998
0.14%, 4/1/14		8,000		7,994
0.12%, 4/29/14		1,500		1,499
0.11%, 5/27/14		4,000		3,997
0.15%, 7/25/14		4,500		4,494
0.16%, 8/1/14		2,500		2,497
0.15%, 8/14/14		2,000		1,997
0.15%, 8/29/14		3,000		2,996
FHLB FRN, 0.06%, 10/1/13		10,000		9,999
0.15%, 10/1/13		9,000		8,999
0.17%, 10/1/13		5,000		5,000
0.23%, 10/1/13		8,300		8,300
0.06%, 10/2/13		6,000		5,999
0.15%, 10/6/13		5,000		5,000
0.11%, 10/16/13		3,000		3,000
0.13%, 10/19/13		15,000		14,998
0.15%, 10/23/13		6,000		6,000
0.14%, 10/24/13		8,000		7,999
0.12%, 10/25/13		4,400		4,400
0.14%, 10/25/13		2,500		2,500
0.15%, 10/27/13		4,500		4,500
0.16%, 10/27/13		11,000		10,999
				416,144

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 58.5% (1) – continued
Federal Home Loan Mortgage Corporation – 5.0%
FHLMC Bonds, 0.15%, 3/27/14		$10,000		$10,000
1.00%, 8/27/14		3,000		3,022
FHLMC Discount Notes, 0.03%, 12/2/13		4,000		4,000
0.16%, 1/14/14		17,000		16,992
0.11%, 1/22/14		5,000		4,998
0.16%, 2/3/14		1,500		1,499
0.09%, 5/6/14		7,000		6,996
0.09%, 5/21/14		8,000		7,995
0.17%, 7/7/14		3,000		2,996
0.16%, 8/18/14		3,000		2,996
FHLMC FRN, 0.18%, 10/5/13		9,000		9,001
				70,495
Federal National Mortgage Association – 14.7%
FNMA Bonds, 2.50%, 5/15/14		1,000		1,015
FNMA Discount Notes, 0.00%, 10/1/13		36,290		36,288
0.04%, 10/1/13		17,936		17,936
0.13%, 10/1/13		9,500		9,500
0.03%, 10/3/13		5,000		5,000
0.10%, 1/8/14		10,000		9,997
0.10%, 1/9/14		9,000		8,997
0.13%, 1/27/14		4,000		3,998
0.16%, 2/3/14		3,500		3,498
0.10%, 6/2/14		3,000		2,998
0.15%, 7/15/14		5,000		4,994
FNMA FRN, 0.32%, 10/1/13		15,000		15,001
0.15%, 10/5/13		8,000		7,997
0.15%, 10/8/13		24,000		24,002
0.16%, 10/11/13		10,000		10,000
0.16%, 10/20/13		25,000		24,996
0.19%, 10/20/13		3,000		3,001
0.15%, 10/27/13		18,500		18,496
				207,714
Total U.S. Government Agencies
(Cost $824,842)				824,842

See Notes to the Financial Statements.

MONEY MARKET FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT OBLIGATIONS – 13.8% – continued
U.S. Treasury Bills – 8.6% – continued
0.03%, 10/3/13		$28,000		$28,000
0.11%, 10/3/13		13,000		13,000
0.15%, 10/3/13		5,000		5,000
0.01%, 10/10/13		25,000		25,000
0.08%, 12/5/13		15,500		15,498
0.08%, 12/12/13		8,500		8,499
0.02%, 1/2/14		12,000		11,999
0.14%, 3/6/14		5,000		4,997
				121,993
U.S. Treasury Notes – 5.2%
0.50%, 10/15/13		8,500		8,501
1.00%, 1/15/14		14,200		14,234
1.75%, 1/31/14		2,500		2,513
0.25%, 2/28/14		4,500		4,502
1.88%, 2/28/14		32,000		32,232
1.25%, 4/15/14		5,000		5,029
0.25%, 4/30/14		3,000		3,003
1.00%, 5/15/14		3,000		3,016
				73,030
Total U.S. Government Obligations
(Cost $195,023)				195,023
Investments, at Amortized Cost
($1,019,865)				1,019,865
REPURCHASE AGREEMENTS – 34.0%
Joint Repurchase Agreements – 3.3% (2)
Bank of America Securities LLC, dated 9/30/13, repurchase price $15,848 0.04%, 10/1/13		15,848		15,848
Morgan Stanley & Co., Inc., dated 9/30/13, repurchase price $15,849 0.05%, 10/1/13		15,849		15,849
Societe Generale, New York Branch, dated 9/30/13, repurchase price $15,848 0.05%, 10/1/13		15,848		15,848
				47,545
Repurchase Agreements – 30.7% (3)
Bank of America N.A., dated 9/30/13,repurchase price $150,000 0.10%, 10/1/13		150,000		150,000
Barclays Capital, Inc., dated 9/16/13,repurchase price $20,001 0.04%, 10/15/13 (4)(5)		20,000		20,000

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
REPURCHASE AGREEMENTS – 34.0% – continued
Repurchase Agreements – 30.7%  (3) – continued
Barclays Capital, Inc., dated 9/6/13,repurchase price $20,001 0.05%, 10/4/13 (4)(5)		$20,000		$20,000
Citigroup Global Markets, Inc., dated 9/30/13, repurchase price $93,019 0.10%, 10/1/13		93,019		93,019
Societe Generale, New York Branch, dated 9/30/13, repurchase price $150,000 0.09%, 10/1/13		150,000		150,000
				433,019
Total Repurchase Agreements
(Cost $480,564)				480,564
Total Investments – 106.3%
(Cost $1,500,429) (6)				1,500,429
Liabilities less Other Assets – (6.3)%				(89,043	)
NET ASSETS – 100.0%				$1,411,386

(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	$	8,150	2.13% – 3.63%		4/15/28 – 2/15/40
U.S. Treasury Notes	$	40,624	0.13% – 2.63%		6/30/14 – 1/15/21
Total	$	48,774

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

NAME	FAIR VALUE (000s)		COUPON RATES	MATURITY DATES
FHLB	$	167	5.50%	7/15/36
FHLMC	$	76,433	1.00% – 6.25%	9/29/17 – 12/1/42
FNMA	$	178,173	1.63% – 5.25%	10/26/15 – 10/1/43
GNMA	$	191,082	2.50% – 4.50%	5/20/40 – 12/20/42
Total	$	445,855

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

(4) Restricted security has been deemed illiquid. At September 30, 2013, the value of these restricted illiquid securities amounted to approximately $40,000,000 or 2.8% of net assets. Additional information on these restricted illiquid securities is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000s)
Barclays Capital, Inc., 0.05%, 10/4/13		9/16/13		$20,000
Barclays Capital, Inc., 0.04%, 10/15/13		9/6/13		20,000

(5) 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.

(6) The cost for federal income tax purposes was $1,500,429.

Percentages shown are based on Net Assets.

At September 30, 2013, the maturity analysis for the U.S. Government Money Market Fund as a percentage of investments was:

MATURITY ANALYSIS	%
1 Day		35.5%
2 - 15Days		18.6
16 - 30Days		9.1
31 - 60Days		7.5
61 - 97Days		5.2
98 - 180 Days		14.4
181 - 270Days		6.0
271 - 366 Days		3.5
367 - 397 Days		0.2
Total		100.0%

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2013:

	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Investments held by U.S. Government Money Market Fund		$–		$1,500,429	(1)		$–		$1,500,429

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 76.2% (1)
Federal Farm Credit Bank – 25.0%
FFCB Bonds, 0.26%, 10/30/13		$2,500		$2,500
0.15%, 1/17/14		6,500		6,500
0.15%, 2/5/14		6,500		6,499
0.17%, 8/8/14		2,000		2,000
FFCB Discount Notes, 0.01%, 10/1/13		16,000		16,000
0.10%, 10/1/13		3,500		3,500
0.19%, 10/1/13		8,000		8,000
0.03%, 10/2/13		14,000		14,000
0.01%, 10/4/13		10,000		10,000
0.03%, 10/4/13		8,000		8,000
0.12%, 10/7/13		8,000		8,000
0.03%, 10/9/13		7,000		7,000
0.03%, 10/10/13		4,000		4,000
0.11%, 10/15/13		15,000		14,999
0.01%, 10/16/13		4,000		4,000
0.03%, 10/16/13		6,000		6,000
0.10%, 10/16/13		7,500		7,500
0.01%, 10/17/13		5,000		5,000
0.18%, 10/18/13		3,000		3,000
0.04%, 10/30/13		6,000		6,000
0.01%, 10/31/13		4,000		4,000
0.01%, 11/1/13		15,000		14,999
0.15%, 11/1/13		9,000		9,000
0.04%, 11/4/13		9,000		9,000
0.04%, 11/6/13		6,000		6,000
0.04%, 11/8/13		4,000		4,000
0.03%, 11/12/13		24,000		23,999
0.11%, 11/18/13		4,000		3,999
0.20%, 11/22/13		4,000		3,999
0.08%, 1/9/14		6,000		5,999
0.03%, 1/10/14		2,000		2,000
0.08%, 1/14/14		11,500		11,497
0.04%, 1/27/14		7,000		6,998
0.09%, 1/27/14		7,500		7,498
0.12%, 1/28/14		1,500		1,499
0.09%, 1/29/14		12,000		11,996
0.10%, 2/10/14		2,000		1,999
0.09%, 3/4/14		4,000		3,998
0.15%, 3/7/14		4,000		3,997

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 76.2% (1) – continued
Federal Farm Credit Bank – 25.0% – continued
0.06%, 3/10/14		$16,000		$15,996
0.13%, 4/1/14		8,500		8,494
0.07%, 4/10/14		8,000		7,997
0.14%, 4/22/14		5,000		4,996
0.08%, 5/5/14		44,000		43,979
0.15%, 5/7/14		4,000		3,996
0.15%, 5/9/14		2,000		1,998
0.11%, 5/15/14		8,000		7,994
0.08%, 5/20/14		7,000		6,996
0.14%, 5/27/14		4,500		4,496
0.10%, 6/16/14		2,000		1,999
0.13%, 6/25/14		4,000		3,996
0.15%, 7/9/14		1,500		1,498
0.16%, 7/10/14		9,000		8,989
0.11%, 7/15/14		5,000		4,996
0.15%, 8/27/14		8,000		7,989
0.15%, 8/28/14		6,000		5,992
0.14%, 9/30/14		4,000		3,994
FFCB FRN, 0.13%, 10/1/13		11,500		11,498
0.17%, 10/1/13		15,000		14,999
0.18%, 10/1/13		16,500		16,500
0.22%, 10/1/13		2,500		2,500
0.24%, 10/1/13		6,000		6,003
0.25%, 10/1/13		10,000		10,014
0.30%, 10/1/13		11,400		11,404
0.31%, 10/1/13		10,500		10,511
0.33%, 10/1/13		11,500		11,513
0.18%, 10/2/13		30,000		30,001
0.13%, 10/4/13		7,500		7,499
0.16%, 10/4/13		41,500		41,502
0.13%, 10/6/13		14,500		14,499
0.15%, 10/6/13		32,000		31,996
0.16%, 10/6/13		8,500		8,501
0.21%, 10/6/13		15,000		15,012
0.15%, 10/8/13		11,500		11,500
0.13%, 10/9/13		4,000		4,000
0.15%, 10/9/13		8,500		8,497
0.15%, 10/11/13		9,000		9,000
0.14%, 10/12/13		9,500		9,498
0.15%, 10/13/13		8,000		8,000
0.21%, 10/13/13		6,000		6,003

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 76.2% (1) – continued
Federal Farm Credit Bank – 25.0% – continued
0.18%, 10/15/13		$6,900		$6,901
0.15%, 10/16/13		17,000		17,000
0.16%, 10/16/13		3,500		3,500
0.13%, 10/17/13		12,500		12,501
0.13%, 10/18/13		12,000		11,996
0.16%, 10/18/13		9,500		9,498
0.13%, 10/20/13		7,500		7,499
0.21%, 10/20/13		20,200		20,215
0.20%, 10/22/13		4,000		4,004
0.14%, 10/23/13		8,500		8,499
0.32%, 10/23/13		5,000		5,013
0.15%, 10/25/13		8,500		8,498
0.12%, 10/26/13		17,000		16,998
0.19%, 10/27/13		14,500		14,505
0.17%, 10/28/13		4,500		4,500
				876,947
Federal Home Loan Bank – 51.2%
FHLB Bonds,
0.12%, 10/1/13		16,500		16,500
0.12%, 10/3/13		35,000		35,000
0.13%, 10/9/13		20,500		20,500
0.21%, 10/10/13		5,000		5,000
0.12%, 10/11/13		8,000		8,000
0.10%, 11/1/13		16,000		16,000
0.10%, 11/13/13		10,500		10,500
0.14%, 11/19/13		35,000		34,999
0.28%, 11/21/13		2,000		2,000
0.18%, 1/7/14		19,000		18,999
0.11%, 1/17/14		10,000		9,999
0.10%, 1/22/14		11,000		10,999
0.09%, 1/24/14		15,500		15,499
0.11%, 1/24/14		12,500		12,499
0.09%, 1/30/14		14,000		13,998
0.09%, 3/10/14		39,000		38,999
0.17%, 3/13/14		5,000		5,001
0.07%, 3/17/14		7,000		7,000
0.06%, 3/20/14		11,000		10,999
0.27%, 4/3/14		5,000		5,003
0.18%, 8/1/14		11,000		10,999
0.18%, 8/5/14		15,500		15,500
0.17%, 8/22/14		6,000		5,999
0.17%, 8/26/14		8,000		7,999
0.20%, 8/29/14		6,000		5,999

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 76.2% (1) – continued
Federal Home Loan Bank – 51.2% – continued
0.17%, 9/12/14		$8,000		$7,997
0.24%, 10/7/14		8,000		8,000
FHLB Discount Notes,
0.11%, 10/1/13		2,500		2,500
0.08%, 10/2/13		14,000		14,000
0.09%, 10/2/13		36,000		36,000
0.13%, 10/2/13		11,000		11,000
0.02%, 10/4/13		7,000		7,000
0.03%, 10/4/13		11,000		11,000
0.04%, 10/4/13		50,000		50,000
0.05%, 10/4/13		19,500		19,500
0.09%, 10/4/13		5,500		5,500
0.12%, 10/4/13		3,000		3,000
0.05%, 10/7/13		25,000		25,000
0.03%, 10/9/13		43,000		43,000
0.06%, 10/9/13		23,000		23,000
0.08%, 10/9/13		25,000		25,000
0.07%, 10/11/13		67,000		66,999
0.11%, 10/11/13		16,000		16,000
0.13%, 10/15/13		16,000		15,999
0.06%, 10/16/13		50,000		49,998
0.10%, 10/16/13		10,000		10,000
0.11%, 10/16/13		9,000		9,000
0.10%, 10/18/13		10,000		9,999
0.13%, 10/21/13		6,500		6,500
0.12%, 10/23/13		4,000		4,000
0.06%, 10/28/13		36,000		35,998
0.04%, 10/30/13		4,000		4,000
0.05%, 10/30/13		20,000		19,999
0.04%, 11/1/13		15,000		14,999
0.07%, 11/6/13		104,000		103,993
0.02%, 11/8/13		8,000		8,000
0.04%, 11/8/13		23,000		22,999
0.08%, 11/8/13		5,000		5,000
0.07%, 11/14/13		16,000		15,999
0.08%, 11/15/13		25,000		24,997
0.02%, 11/20/13		109,000		108,997
0.11%, 12/2/13		5,000		4,999
0.10%, 12/4/13		12,500		12,498
0.02%, 12/6/13		15,000		14,999
0.11%, 12/11/13		37,000		36,992
0.12%, 12/11/13		4,000		3,999
0.12%, 12/13/13		40,000		39,990
0.12%, 12/18/13		4,000		3,999

See Notes to the Financial Statements.

MONEY MARKET FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. GOVERNMENT AGENCIES – 76.2% (1) – continued
Federal Home Loan Bank – 51.2% – continued
0.14%, 12/20/13		$25,000		$24,992
0.13%, 1/2/14		12,500		12,495
0.16%, 1/2/14		9,000		8,997
0.03%, 1/10/14		13,000		12,999
0.09%, 1/16/14		47,000		46,988
0.04%, 1/17/14		4,000		4,000
0.10%, 1/21/14		7,000		6,998
0.16%, 2/3/14		4,000		3,998
0.17%, 2/13/14		7,500		7,495
0.11%, 2/14/14		20,000		19,992
0.11%, 2/28/14		10,000		9,995
0.09%, 3/7/14		20,000		19,993
0.16%, 3/10/14		4,000		3,997
0.08%, 3/12/14		7,000		6,998
0.12%, 3/14/14		8,000		7,996
0.14%, 4/1/14		12,000		11,992
0.14%, 4/24/14		1,350		1,349
0.12%, 4/29/14		3,500		3,498
0.11%, 5/23/14		6,000		5,996
0.17%, 7/1/14		4,000		3,995
0.15%, 7/21/14		1,500		1,498
0.15%, 7/25/14		12,000		11,985
0.16%, 8/1/14		4,000		3,995
FHLB FRN,
0.06%, 10/1/13		31,000		30,996
0.15%, 10/1/13		16,000		15,999
0.16%, 10/1/13		15,000		14,999
0.17%, 10/1/13		15,000		14,999
0.18%, 10/1/13		15,000		15,000
0.23%, 10/1/13		22,300		22,300
0.06%, 10/2/13		6,000		5,999
0.15%, 10/3/13		20,000		19,998
0.15%, 10/6/13		10,000		10,000
0.14%, 10/13/13		17,000		17,000
0.11%, 10/16/13		6,000		6,000
0.13%, 10/19/13		17,500		17,498
0.15%, 10/23/13		15,000		14,999
0.14%, 10/24/13		20,500		20,499
0.14%, 10/25/13		6,300		6,300
0.16%, 10/27/13		15,000		14,999
				1,796,265
Total U.S. Government Agencies
(Cost $2,673,212)				2,673,212

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
U.S. Treasury Bills – 9.4%
0.02%, 10/3/13		$26,000		$26,000
0.03%, 10/3/13		72,000		72,000
0.11%, 10/3/13		30,500		30,500
0.01%, 10/10/13		158,000		157,999
0.11%, 12/26/13		16,000		15,996
0.02%, 1/2/14		29,000		28,998
				331,493
U.S. Treasury Notes – 4.5%
1.00%, 1/15/14		20,000		20,047
1.75%, 1/31/14		16,500		16,589
0.25%, 2/28/14		22,500		22,512
1.88%, 2/28/14		88,500		89,141
0.25%, 4/30/14		8,000		8,008
				156,297
Total U.S. Government Obligations
(Cost $487,790)				487,790
Investments, at Amortized Cost
($3,161,002)				3,161,002
REPURCHASE AGREEMENTS – 13.4%
Repurchase Agreements – 13.4% (2)
Bank of America N.A., dated 9/30/13, repurchase price $150,000 0.10%, 10/1/13		150,000		150,000
Credit Suisse Securities, dated 9/30/13, repurchase price $68,551 0.08%, 10/1/13		68,551		68,551
Mizuho Securities USA, Inc., dated 9/30/13, repurchase price $250,000 0.07%, 10/1/13		250,000		250,000
				468,551
Total Repurchase Agreements
(Cost $468,551)				468,551
Total Investments – 103.5%
(Cost $3,629,553) (3)				3,629,553
Liabilities less Other Assets – (3.5)%				(123,670	)
NET ASSETS – 100.0%				$3,505,883

(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:

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

NAME	FAIR VALUE (000s)		COUPON RATES	MATURITY DATES
GNMA		$154,500	4.50%	7/20/41
U.S. Treasury Bonds		$1,882	0.73% – 7.50%	11/15/16 – 2/15/17
U.S. Treasury Notes		$321,870	0.88% – 4.63%	11/30/16 – 9/30/18
U.S. Treasury Strips		$1,201	0.73%	11/15/16
Total		$479,453

(3) The cost for federal income tax purposes was $3,629,553.

Percentages shown are based on Net Assets.

At September 30, 2013, the maturity analysis for the U.S. Government Select Money Market Fund as a percentage of investments was:

MATURITY ANALYSIS	%
1 Day		18.3%
2 - 15 Days		32.0
16 - 30 Days		10.8
31 - 60 Days		11.8
61 - 97 Days		5.5
98 - 180 Days		14.0
181 - 270 Days		4.5
271 - 366 Days		2.9
367 - 397 Days		0.2
Total		100.0%

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of September 30, 2013:

	LEVEL 1 (000s)		LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Investments held by U.S. Government Select Money Market Fund		$–		$3,629,553	(1)		$–		$3,629,553

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

ABBREVIATIONS AND OTHER INFORMATION SEPTEMBER 30, 2013 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS
BANS	Bond Anticipation Notes	IDA	Industrial Development Authority
COPS	Certificates of Participation	IDB	Industrial Development Board
CP	Commercial Paper	IDR	Industrial Development Revenue
EDA	Economic Development Authority	LOC	Letter of Credit
FFCB	Federal Farm Credit Bank	PCR	Pollution Control Revenue
FHLB	Federal Home Loan Bank	PSF	Permanent School Fund
FHLMC	Federal Home Loan Mortgage Corporation	SFM	Single Family Mortgage
FNMA	Federal National Mortgage Association	TRANS	Tax and Revenue Anticipation Notes
FRCD	Floating Rate Certificates of Deposit	VRDB	Variable Rate Demand Bonds
FRN	Floating Rate Notes	VRDP	Variable Rate Demand Preferred
GNMA	Government National Mortgage Association
G.O.	General Obligation
Gtd.	Guaranteed

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.

NORTHERN FUNDS SEMIANNUAL REPORT 51 MONEY MARKET FUNDS

MONEY MARKET FUNDS

NOTES TO THE FINANCIAL STATEMENTS

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The California Municipal Money Market, Money Market, Municipal Money Market, U.S. Government Money Market, and U.S. Government Select Money Market Funds (each a “Fund” and collectively, the “Funds”) are separate investment portfolios of the Trust, each of which is a diversified portfolio except for the California Municipal Money Market Fund, which is a non-diversified portfolio of the Trust. Non-diversified portfolios may invest a relatively high percentage of their net assets in obligations of a limited number of issuers. Each of the Funds is presented herein.

Northern Trust Investments, Inc. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) is calculated on each Business Day as of 1:00 p.m. Central Time for the Funds.

A) VALUATION OF SECURITIES The investments held by the Funds are valued at amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value. Under this method, investments purchased at a discount or premium are valued by accreting or amortizing the difference between the original purchase price and maturity value of the issue over the period to effective maturity.

If NTI has determined that amortized cost does not approximate fair value, such securities are fair valued in accordance with policies and procedures established by, and subject to oversight of, the Funds’ Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’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.

The NTGI PVC is responsible for making the final determination of the fair value of a security. In making its determination, NTGI PVC considers factors that it deems appropriate to the determination of the fair value of a 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 transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

For each Level 3 security, if any, 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.

B) CREDIT ENHANCEMENTS Certain investments owned by the Funds (primarily the California Municipal Money Market Fund and Municipal Money Market Fund) are covered by insurance issued by private insurers, are backed by an escrow or trust containing U.S. Government securities or U.S. Government agency securities, or are otherwise supported by letters of credit, standby purchase agreements or other liquidity facilities. Such enhancements may ensure the timely payment of the security’s principal and interest or may shorten the security’s maturity. However, such enhancements do not guarantee the market value of the securities or the value of a Fund’s shares. Additionally, there is no guarantee that an insurer will meet its obligations. For example, the insurers’ exposure to securities involving sub-prime mortgages may cause a municipal bond insurer’s rating to be downgraded or may cause the bond insurer to become insolvent, which may affect the prices and liquidity of municipal obligations insured by the insurer.

C) REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements under the terms of a master repurchase agreement by which they purchase securities for cash from a seller and agree to resell those securities to the same seller within

MONEY MARKET FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

a specified time at a specified price. During the term of a repurchase agreement, the market value of the underlying collateral, including accrued interest, is required to equal or exceed the market value of the repurchase agreement. The underlying collateral for tri-party repurchase agreements is held in accounts for Northern Trust, as agent of the Funds, at the Bank of New York or JPMorgan Chase which, in turn, holds securities through the book-entry system at the Federal Reserve Bank of New York. The underlying collateral for other repurchase agreements is held in a customer-only account for Northern Trust, as custodian for the Funds, at the Federal Reserve Bank of Chicago. The Funds are subject to credit risk on repurchase agreements to the extent that the counterparty fails to perform under the agreement and the value of the collateral received falls below the agreed repurchase price.

Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”), each Fund and other Funds of the Trust may enter into joint repurchase agreements with non-affiliated counterparties through a master repurchase agreement with Northern Trust. NTI administers and manages these joint repurchase agreements in accordance with and as part of its duties under its investment advisory agreements with the Funds and does not collect any additional fees from the Funds for such services. The Money Market Fund and U.S. Government Money Market Fund have entered into such joint repurchase agreements at September 30, 2013, as reflected in their accompanying Schedules of Investments.

The following tables present the repurchase agreements, which are subject to netting agreements, as well as the collateral delivered related to those repurchase agreements:

Amounts in thousands*	COUNTERPARTY	GROSS AMOUNTS OF ASSETS PRESENTED IN STATEMENTS OF ASSETS AND LIABILITIES		COLLATERAL RECEIVED		NET AMOUNT
Money Market	Bank of America	$	18,324	$	18,324	$	—
	Morgan Stanley & Co.		18,324		18,324		—
	Societe Generale		18,324		18,324		—
	Citigroup		68,678		68,678		—
	Federal Reserve		200,000		200,000		—
	JPMorgan		100,000		100,000		—
	Total	$	423,650	$	423,650	$	—
U.S. Government Money Market	Bank of America	$	165,848	$	165,848	$	—
	Morgan Stanley		15,849		15,849		—
	Societe Generale		165,848		165,848		—
	Barclays		40,000		40,000		—
	Citigroup		93,019		93,019		—
	Total	$	480,564	$	480,564	$	—
U.S. Government Select Money Market	Bank of America	$	150,000	$	150,000	$	—
	Credit Suisse		68,551		68,551		—
	Mizuho		250,000		250,000		—
	Total	$	468,551	$	468,551	$	—

D) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income, if any, is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. Certain Funds may receive dividend income from investment companies. Dividend income is recognized on the ex-dividend date. The California Municipal Money Market Fund’s and Municipal Money Market Fund’s income may be subject to certain state and local taxes and, depending on an individual shareholder’s tax status, the federal alternative minimum tax.

NORTHERN FUNDS SEMIANNUAL REPORT 53 MONEY MARKET FUNDS

MONEY MARKET FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

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

F) DISTRIBUTIONS TO SHAREHOLDERS Distribution of dividends from net investment income are declared daily and paid monthly. Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

The timing and character of distributions determined in accordance with federal income tax regulations may differ from financial statement amounts determined in accordance with U.S. GAAP due to differences in the treatment and recognition of investment income and realized gains and losses. These differences are primarily related to the capital loss carryforwards. Inherent differences in the recognition of income and capital gains for federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds’ capital accounts. These reclassifications may relate to net operating losses and expired capital loss carryforwards. These reclassifications have no impact on the net assets or the NAVs of the Funds.

At March 31, 2013, the following reclassifications were recorded:

Amounts in thousands	UNDISTRIBUTED NET INVESTMENT INCOME		ACCUMULATED UNDISTRIBUTED NET REALIZED LOSSES
Municipal Money Market	$	262	$	(262	)
U.S. Government Money Market		31		(31	)
U.S. Government Select Money Market		44		(44	)

G) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and tax-exempt income to its shareholders.

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

At March 31, 2013, the capital loss carryforward for U.S. federal income tax purposes and the respective year of expiration was as follows:

Amount in thousands	MARCH 31, 2018
Money Market	$(8,658)

The Fund in the above table may offset future capital gains with this capital loss carryforward.

Capital losses incurred that will be carried forward indefinitely under the provisions of the Act are as follows:

POST-ENACTMENT LOSSES

	SHORT-TERM CAPITAL LOSS CARRYFORWARD	LONG-TERM CAPITAL LOSS CARRYFORWARD
California Municipal Money Market	$9	$  —

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

At March 31, 2013, the tax components of undistributed net investment income and realized gains, including amounts declared but not yet paid for federal income tax purposes, were as follows:

	UNDISTRIBUTED
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*
California Municipal Money Market		$4		$  —
Money Market		—		124
Municipal Money Market		6		263
U.S. Government Money Market		—		34
U.S. Government Select Money Market		—		63

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

MONEY MARKET FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*
California Municipal Money Market		$40		$  —
Money Market		—		783
Municipal Money Market		783		41
U.S. Government Money Market		—		152
U.S. Government Select Money Market		—		379

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

The tax character of distributions paid during the fiscal year ended March 31, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	TAX-EXEMPT INCOME		ORDINARY INCOME*
California Municipal Money Market		$45		$5
Money Market		—		1,329
Municipal Money Market		851		9
U.S. Government Money Market		—		141
U.S. Government Select Money Market		—		340

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

As of March 31, 2013, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns filed for the fiscal years ended March 31, 2010 through March 31, 2012 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statement of Operations.

H) NETTING AGREEMENTS In the ordinary course of business, the Funds enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. As of September 30, 2013, the Funds have not invested in any portfolio securities, other than the repurchase agreements as described above, with gross exposures on the Statement of Assets and Liabilities, that could be netted subject to netting agreements.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, who are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2013.

These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2013.

4. BANK BORROWINGS

The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 29, 2012, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Funds did not have any outstanding loans. The Funds did not incur any interest expense for the six months ended September 30, 2013.

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment adviser is entitled to receive an

NORTHERN FUNDS SEMIANNUAL REPORT 55 MONEY MARKET FUNDS

MONEY MARKET FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

advisory fee, computed daily and payable monthly, at annual rates set forth in the tables below (expressed as a percentage of each Fund’s respective average daily net assets). During the six months ended September 30, 2013, NTI contractually agreed to reimburse the Funds for certain expenses as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses contractually reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.

The annual advisory fees and the expense limitations for the Funds for the six months ended September 30, 2013, were as follows:

	CONTRACTUAL ANNUAL ADVISORY FEE			CONTRACTUAL EXPENSE LIMITATION
California Municipal Money Market		0.25	%		0.35	%
Money Market		0.25	%		0.35	%
Municipal Money Market		0.25	%		0.35	%
U.S. Government Money Market		0.25	%		0.35	%
U.S. Government Select Money Market		0.25	%		0.35	%

The contractual reimbursement arrangements are expected to continue until at least July 31, 2014. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangement may be terminated, as to any succeeding Renewal Year, by NTI or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.

In addition, in order to avoid a negative yield, NTI may reimburse additional expenses or waive advisory fees of a Fund, as necessary. Any such expense reimbursement or waiver would be voluntary and could be implemented, increased or decreased or discontinued at any time. There is no guarantee that a Fund will be able to avoid a negative yield. During the six months ended September 30, 2013, NTI voluntarily reimbursed fees to avoid a negative yield for the California Municipal Money Market Fund, Money Market Fund, Municipal Money Market Fund, U.S. Government Money Market Fund and U.S. Government Select Money Market Fund. The amounts voluntarily reimbursed by NTI are included in Less expenses voluntarily reimbursed by investment adviser in the Statements of Operations and the amounts outstanding at September 30, 2013, are included as part of Receivable from affiliates for expense reimbursements in the Statements of Assets and Liabilities. Any such reimbursement or waiver is paid monthly to the Funds by NTI.

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

For compensation as administrator, NTI is entitled to receive a fee, computed daily and payable monthly, at the annual rate of 0.10 percent of each Fund’s average daily net assets. The administration fees are reflected in the Funds’ Statements of Operations.

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board of Trustees. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits are reflected as Less custodian credits in the Funds’ Statements of Operations.

Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statements of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

MONEY MARKET FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

6. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013, were as follows:

Amounts in thousands*	PROCEEDS FROM SHARES SOLD		REINVESTMENT OF DIVIDENDS		PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN NET ASSETS
California Municipal Money Market		$910,632		$6		$(933,471	)		$(22,833	)
Money Market		11,958,358		157		(12,823,324	)		(864,809	)
Municipal Money Market		11,199,260		51		(12,031,288	)		(831,977	)
U.S. Government Money Market		3,242,651		21		(3,160,684	)		81,988
U.S. Government Select Money Market		6,852,377		42		(6,884,174	)		(31,755	)

* The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions.

Transactions in capital shares for the fiscal year ended March 31, 2013, were as follows:

Amounts in thousands*	PROCEEDS FROM SHARES SOLD		REINVESTMENT OF DIVIDENDS		PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN NET ASSETS
California Municipal Money Market		$1,647,558		$13		$(1,704,302	)		$(56,731	)
Money Market		26,588,932		309		(25,288,950	)		1,300,291
Municipal Money Market		25,953,027		129		(26,311,722	)		(358,566	)
U.S. Government Money Market		7,640,849		45		(7,662,663	)		(21,769	)
U.S. Government Select Money Market		15,339,211		88		(15,238,371	)		100,928

* The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions.

7. CAPITAL SUPPORT AGREEMENT

Effective February 21, 2008, and subsequently amended on July 15, 2008, September 29, 2008 and February 24, 2009, Northern Trust Corporation (the “Corporation”) entered into a Capital Support Agreement (“CSA”) with the Trust on behalf of the Money Market Fund (the “Fund”).

Although it was not obligated to do so, the Corporation entered into the CSA in order to provide stability to the Fund and investors in the Fund. The Corporation did not receive any consideration from the Fund. Under the CSA, the Corporation committed to provide capital to the Fund in the event that the Fund realized a loss on the Whistlejacket Capital LLC security (the “Security”), in an amount sufficient for the Fund to maintain its NAV per share at no less than the minimum permissible NAV, which is $0.9990. The Fund was required to promptly sell the Security upon the earlier of (i) any change in the Corporation’s short term credit ratings such that the Corporation’s obligations no longer qualified as First Tier Securities under Rule 2a-7, or (ii) on the business day immediately prior to November 6, 2009. In addition, the Board had the right, at its option, to cause the Fund to sell the Security at any time if it determined that the maximum amount under the CSA, reduced by any capital contributions previously made under the CSA to the Fund, was insufficient to maintain the minimum permissible NAV of $0.9990.

On June 25, 2009, the Fund sold the remaining position in the Security held in the Fund, realizing a loss on the sale. Pursuant to the CSA, the Corporation made an actual capital contribution payment to the Fund representing the amount necessary to prevent the loss from causing the market-based NAV of the Fund to fall below $0.999, meeting its contractual obligation under the CSA. On June 25, 2009, upon the sale of the Security, the CSA terminated.

8. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

NORTHERN FUNDS SEMIANNUAL REPORT 57 MONEY MARKET FUNDS

MONEY MARKET FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued SEPTEMBER 30, 2013 (UNAUDITED)

9. NEW ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining whether an entity is an investment company for which fair value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for, its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have to the financial statement amounts and footnote disclosures, if any.

10. SUBSEQUENT EVENTS

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that, other than the item noted in Note 4 – Bank Borrowings, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

MONEY MARKET FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

FUND EXPENSES SEPTEMBER 30, 2013 (UNAUDITED)

As a shareholder of the Funds, you incur ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013 through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

CALIFORNIA MUNICIPAL MONEY MARKET

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.09	%	$	1,000.00	$	1,000.10	$	0.45
Hypothetical**		0.09	%	$	1,000.00	$	1,024.62	$	0.46

MONEY MARKET

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.20	%	$	1,000.00	$	1,000.10	$	1.00
Hypothetical**		0.20	%	$	1,000.00	$	1,024.07	$	1.01

MUNICIPAL MONEY MARKET

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.12	%	$	1,000.00	$	1,000.10	$	0.60
Hypothetical**		0.12	%	$	1,000.00	$	1,024.47	$	0.61

U.S. GOVERNMENT MONEY MARKET

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.11	%	$	1,000.00	$	1,000.10	$	0.55
Hypothetical**		0.11	%	$	1,000.00	$	1,024.52	$	0.56

U.S. GOVERNMENT SELECT MONEY MARKET

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.11	%	$	1,000.00	$	1,000.10	$	0.55
Hypothetical**		0.11	%	$	1,000.00	$	1,024.52	$	0.56

* Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

NORTHERN FUNDS SEMIANNUAL REPORT 59 MONEY MARKET FUNDS

MONEY MARKET FUNDS

APPROVAL OF ADVISORY AGREEMENT

The Board of Trustees oversees the management of Northern Funds (the “Trust”), and reviews the investment performance and expenses of the investment funds covered by this Report (the “Funds”) at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Funds with Northern Trust Investments, Inc. (“Northern”).

The Advisory Agreement was re-approved with respect to all of the Funds by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Trust’s Governance Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Funds. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Funds in comparison to other mutual funds; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Funds; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Funds; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Funds’ investment performance over different time periods in comparison to the investment performance of mutual fund peer groups and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administrative) fees and the total expenses (after reimbursements) borne by the Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the voluntary reimbursements made by Northern to maintain a positive yield in the Funds; (v) the investment advisory fees charged to the Funds compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (vi) Northern’s staffing for the Funds and the experience of the portfolio managers, credit research and other personnel; (vii) Northern’s financial resources and its ability to attract and retain portfolio management talent; (viii) Northern’s investments in technology to benefit the Funds; (ix) the fees paid by the Funds to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (x) the benefits received by Northern and its affiliates from their relationships with the Funds. In evaluating the Advisory Agreement for each of the Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. In this regard, they considered both the investment advisory services, and the other non-advisory services that are provided to the Funds by Northern and its affiliates. These services include acting as the Funds’ custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications with and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Funds. They noted Northern’s enhancements to the pricing and fund accounting systems made during the year, and other investments in technology, including the trade order management system used to process certain trades. The Trustees considered the strength of Northern’s and its affiliates’ risk management processes, including with respect to the Funds’ regular reporting on stress testing. They also considered Northern’s compliance oversight program with respect to all of the Funds’ service providers and the continued active involvement of internal audit in reviewing operations related to the Funds. In addition, they noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Funds. The Trustees concluded that Northern was able to commit, and had committed, substantial financial and other resources to the operations of the Funds and was able to provide quality services to the Funds.

Performance

The Trustees considered the investment performance of the Funds. They first considered whether the Funds had operated

MONEY MARKET FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

within their respective investment objectives, as well as their compliance with their investment restrictions. For Funds that had been in existence for the applicable periods, the Trustees received information on the Funds’ investment performance for one, two, three, four, five and ten years, as well as performance for the most recent quarter and year-to-date. The Trustees compared the investment performance of the Funds to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. They considered the Funds’ investment performance relative to the investor base the Funds are intended to serve. The Trustees noted the potential impact of the relative risk parameters of the different Funds. In particular, they considered that with respect to fixed income securities, Northern had an investment style that seeks out securities with higher credit parameters than other fixed-income investment advisers. They took into consideration that Northern’s more risk averse investment strategies may cause the Funds to underperform against their peers during certain market environments. The Trustees also took into consideration the extreme market volatility in recent years, as well as the steps taken by Northern to manage the Funds to maintain stable net asset values during the recent market and economic environments, particularly in relation to Eurozone banking issues and the extremely low interest rate environment.

The Trustees believed, based on the information provided, that the Funds had provided yields that were satisfactory in light of their respective investment objectives and policies, as well as the current low interest rate environment.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Funds’ contractual management fee rates; the Funds’ total operating expense ratios; Northern’s contractual commitments to continue expense reimbursements for at least one year with respect to the Funds; the voluntary expense reimbursements made by Northern to maintain a positive yield for the Funds; and whether a consistent methodology was in place in determining the fees and expenses of the Funds. They noted that the voluntary expense reimbursements being made by Northern to the Funds could be terminated at any time. The Trustees also considered the additional contractual expense reimbursements that were in effect during the past year.

In addition, the Trustees considered the amount of assets in the Funds; the information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship on a Fund-by-Fund basis. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to each Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rates paid by the Funds under the Advisory Agreement and the Funds’ total operating expense ratios compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Funds’ fee rates and total operating expense ratios were prepared by Lipper. The Trustees considered that the contractual management fee rates for the Money Market Fund and U.S. Government Select Money Market Fund were above their respective Lipper peer group medians and the other Funds’ contractual fee rates were below their Lipper peer group medians. They also considered that the total expense ratios after reimbursement of expenses for the U.S. Government Money Market Fund and U.S. Government Select Money Market Fund were above their respective Lipper peer objective medians, and that each of the other Funds’ total expense ratios after reimbursement of expenses were below their respective Lipper peer objective medians. The Trustees took into account Northern’s explanation that Lipper used fiscal year end data and that Lipper peer funds experienced different interest rate levels during their fiscal years, which determined the amount of reimbursed expenses of those funds. The Trustees also reviewed information comparing the Funds’ advisory fee rates to the fee rates charged by Northern to similarly managed, private institutional accounts. The Trustees considered the difference in, and level of complexity of, services provided by Northern with regard to the private institutional accounts, as well as regulatory, operational and compliance differences, board and committee support and other differences. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Funds.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass, benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Funds may be sharing in economies of scale through the level at which the Funds’ advisory fees are set and through Northern’s contractual expense reimbursements that limit the expenses for the Funds to specific levels. In addition, the Trustees considered Northern’s voluntary expense reimbursements to maintain positive yields for the Funds.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationship with the Funds.

NORTHERN FUNDS SEMIANNUAL REPORT 61 MONEY MARKET FUNDS

MONEY MARKET FUNDS

APPROVAL OF ADVISORY AGREEMENT continued SEPTEMBER 30, 2013 (UNAUDITED)

Those benefits included fees received by the affiliates for transfer agency, custodial and administrative functions. The Trustees also considered that many of the Funds’ shareholders had other client relationships with The Northern Trust Company. In addition, the Trustees considered that the scale of the Funds provided opportunities to Northern to obtain securities trading advantages for its other advisory clients. The Trustees also considered the extent to which Northern and its other clients, as well as the Funds, benefited from receipt of the research products and services generated by the Trust’s equity investment portfolios.

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to all of the Funds that the advisory fees paid by the Funds were reasonable in light of the services provided by Northern, its costs and the Funds’ asset levels, and that the Advisory Agreement should be approved and continued.

MONEY MARKET FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT

MONEY MARKET FUNDS

THIS PAGE INTENTIONALLY LEFT BLANK

NORTHERN FUNDS SEMIANNUAL REPORT 63 MONEY MARKET FUNDS

MONEY MARKET FUNDS

FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

MONEY MARKET FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER FUNDS

TABLE OF CONTENTS

2	STATEMENTS OF ASSETS AND LIABILITIES
4	STATEMENTS OF OPERATIONS
6	STATEMENTS OF CHANGES IN NET ASSETS
8	FINANCIAL HIGHLIGHTS
16	SCHEDULES OF INVESTMENTS
	EQUITY FUNDS
16	MULTI-MANAGER EMERGING MARKETS EQUITY FUND
25	MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND
28	MULTI-MANAGER GLOBAL REAL ESTATE FUND
31	MULTI-MANAGER INTERNATIONAL EQUITY FUND
40	MULTI-MANAGER LARGE CAP FUND
44	MULTI-MANAGER MID CAP FUND
49	MULTI-MANAGER SMALL CAP FUND
	FIXED INCOME FUND
54	MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND
72	NOTES TO THE FINANCIAL STATEMENTS
86	FUND EXPENSES
88	APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS
96	FOR MORE INFORMATION

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

The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, Northern Funds’ performance may be subject to substantial short-term changes.

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

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

STATEMENTS OF ASSETS AND LIABILITIES

Amounts in thousands, except per share data	MULTI-MANAGER EMERGING MARKETS EQUITY FUND			MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND		MULTI-MANAGER GLOBAL REAL ESTATE FUND
ASSETS:
Investments, at cost (1)		$2,027,358			$519,866		$777,301
Investments, at value (2)		$2,219,769			$558,601		$939,608
Cash		–			–		–
Foreign currencies, at value (cost $9,256, $484, $393, $2,933, $12,respectively)		9,295			485		393
Dividend income receivable		3,259			1,208		2,615
Interest income receivable		–			–		–
Receivable for foreign tax reclaimable		345			256		663
Receivable for securities sold		27,576			8,741		3,335
Receivable for variation margin on futures contracts		–			9		–
Receivable for fund shares sold		838			3,533		402
Receivable from investment adviser		65			17		59
Prepaid and other assets		10			10		13
Total Assets		2,261,157			572,860		947,088
LIABILITIES:
Unrealized loss on forward foreign currency exchange contracts		–			–		–
Payable for securities purchased		12,212			10,843		1,286
Payable for variation margin on futures contracts		–			23		–
Payable for fund shares redeemed		1,000			268		1,244
Payable to affiliates:
Investment advisory fees		432			73		172
Administration fees		56			14		23
Custody and accounting fees		41			12		19
Shareholder servicing fees		10			–		–
Transfer agent fees		37			9		16
Trustee fees		4			1		3
Accrued other liabilities		65			16		21
Total Liabilities		13,857			11,259		2,784
Net Assets		$2,247,300			$561,601		$944,304
ANALYSIS OF NET ASSETS:
Capital stock		$2,099,140			$515,664		$705,227
Accumulated undistributed net investment income (loss)		20,738			715		(7,611	)
Accumulated undistributed net realized gain (loss)		(65,014	)		6,454		84,355
Net unrealized appreciation		192,436			38,768		162,333
Net Assets		$2,247,300			$561,601		$944,304
Shares Outstanding ($.0001 par value, unlimited authorization)		120,073			48,777		51,206
Net Asset Value, Redemption and Offering Price Per Share		$18.72			$11.51		$18.44

(1) Amounts include cost from the Diversified Assets Portfolio of the Northern Institutional Funds of $60,260, $14,753, $13,024, $118,556, $25,622, $31,148, $19,063 and $52,346, respectively.

(2) Amounts include value from the Diversified Assets Portfolio of the Northern Institutional Funds of $60,260, $14,753, $13,024, $118,556, $25,622, $31,148, $19,063 and $52,346, respectively.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2013 (UNAUDITED)

MULTI-MANAGER INTERNATIONAL EQUITY FUND			MULTI-MANAGER LARGE CAP FUND		MULTI-MANAGER MID CAP FUND		MULTI-MANAGER SMALL CAP FUND			MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND
	$2,374,520			$535,147		$771,588		$300,945			$682,585
	$2,751,234			$708,382		$997,672		$408,051			$688,499
	–			–		–		–			12
	2,950			–		–		–			12
	5,718			782		893		206			18
	–			–		–		–			11,323
	4,871			–		–		–			–
	6,712			1,007		824		803			1,658
	–			–		–		–			1
	1,273			719		426		148			136
	30			12		37		3			35
	20			15		20		31			30
	2,772,808			710,917		999,872		409,242			701,724
	–			–		–		–			211
	26,253			982		3,110		1,130			9,564
	267			92		26		4			–
	1,867			121		388		391			1,942
	474			106		148		74			91
	68			18		25		10			17
	49			3		4		2			15
	2			1		23		–			15
	45			12		16		7			11
	7			2		6		2			2
	37			22		20		14			22
	29,069			1,359		3,766		1,634			11,890
	$2,743,739			$709,558		$996,106		$407,608			$689,834
	$2,656,969			$470,521		$623,123		$248,357			$662,975
	29,028			231		3,194		(1,056	)		(1,069	)
	(319,413	)		65,618		143,657		53,146			22,235
	377,155			173,188		226,132		107,161			5,693
	$2,743,739			$709,558		$996,106		$407,608			$689,834
	260,908			69,031		67,131		32,475			64,439
	$10.52			$10.28		$14.84		$12.55			$10.71

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

STATEMENTS OF OPERATIONS

Amounts in thousands	MULTI-MANAGER EMERGING MARKETS EQUITY FUND			MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND
INVESTMENT INCOME:
Dividend income		$38,250	(1)(2)		$8,820	(1)(2)
Interest income		–			–
Total Investment Income		38,250			8,820
EXPENSES:
Investment advisory fees		12,820			1,739
Administration fees		1,662			326
Custody fees		1,015			213
Accounting fees		121			32
Transfer agent fees		1,108			217
Registration fees		16			15
Printing fees		20			8
Professional fees		26			16
Shareholder servicing fees		42			–
Trustee fees		15			5
Interest expense		–			–
Other		50			4
Total Expenses		16,895			2,575
Less expenses reimbursed by investment adviser		(2,356	)		(406	)
Net Expenses		14,539			2,169
Net Investment Income (Loss)		23,711			6,651
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		3,557			3,906
Futures contracts		–			(26	)
Foreign currency transactions		(801	)		(27	)
Net change in unrealized appreciation (depreciation) on:
Investments		(51,480	)		21,393
Futures contracts		–			(6	)
Foreign currency translations		126			26
Net Gains (Losses)		(48,598	)		25,266
Net Increase (Decrease) in Net Assets Resulting from Operations		$(24,887	)		$31,917

(1) Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $3, $1, $1, $5, $1, $1, $1 and $2, respectively.

(2) Net of $4,303, $887, $809, $4,368, $3 and $37, respectively in non-reclaimable foreign withholding taxes.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

MULTI-MANAGER GLOBAL REAL ESTATE FUND			MULTI-MANAGER INTERNATIONAL EQUITY FUND			MULTI-MANAGER LARGE CAP FUND			MULTI-MANAGER MID CAP FUND			MULTI-MANAGER SMALL CAP FUND			MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND
	$16,967	(1)(2)		$38,507	(1)(2)		$6,246	(1)		$6,843	(1)(2)		$1,975	(1)		$380	(1)(2)
	–			1			–			–			–			22,115
	16,967			38,508			6,246			6,843			1,975			22,495
	6,008			12,298			3,492			4,280			2,370			2,855
	824			1,750			582			713			323			535
	512			1,067			57			70			48			339
	65			127			49			58			32			46
	549			1,166			388			476			215			357
	14			17			13			14			13			18
	15			30			8			13			10			15
	21			26			16			16			16			16
	19			15			5			62			3			34
	10			15			5			5			5			5
	2			–			1			–			4			6
	8			15			7			7			5			5
	8,047			16,526			4,623			5,714			3,044			4,231
	(2,048	)		(1,225	)		(362	)		(973	)		(247	)		(1,030	)
	5,999			15,301			4,261			4,741			2,797			3,201
	10,968			23,207			1,985			2,102			(822	)		19,294
	52,632			22,137			54,966			67,054			41,758			13,056
	–			1,949			866			472			788			(2	)
	(461	)		(62	)		–			–			–			95
	(86,143	)		100,311			21,799			24,271			20,062			(32,421	)
	–			361			(162	)		(115	)		(51	)		(13	)
	47			(1,074	)		–			–			–			(626	)
	(33,925	)		123,622			77,469			91,682			62,557			(19,911	)
	$(22,957	)		$146,829			$79,454			$93,784			$61,735			$(617	)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

	MULTI-MANAGER EMERGING MARKETS EQUITY FUND						MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND(1)						MULTI-MANAGER GLOBAL REAL ESTATE FUND
Amounts in thousands	SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
OPERATIONS:
Net investment income (loss)		$23,711			$16,858			$6,651			$1,817			$10,968			$12,922
Net realized gains (losses)		2,756			4,332			3,853			2,654			52,171			79,027
Net change in unrealized appreciation (depreciation)		(51,354	)		36,386			21,413			17,355			(86,096	)		83,574
Net Increase (Decrease) in Net Assets Resulting from Operations		(24,887	)		57,576			31,917			21,826			(22,957	)		175,523
CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets resulting from capital share transactions		7,793			413,697			220,205			295,459			(166,789	)		274,279
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		7,793			413,697			220,205			295,459			(166,789	)		274,279
DISTRIBUTIONS PAID:
From net investment income		–			(25,500	)		(6,255	)		(1,551	)		(8,823	)		(22,771	)
From net realized gains		–			–			–			–			–			(48,312	)
Total Distributions Paid		–			(25,500	)		(6,255	)		(1,551	)		(8,823	)		(71,083	)
Total Increase (Decrease) in Net Assets		(17,094	)		445,773			245,867			315,734			(198,569	)		378,719
NET ASSETS:
Beginning of period		2,264,394			1,818,621			315,734			–			1,142,873			764,154
End of period		$2,247,300			$2,264,394			$561,601			$315,734			$944,304			$1,142,873
Accumulated Undistributed Net Investment Income (Loss)		$20,738			$(2,973	)		$715			$319			$(7,611	)		$(9,756	)

(1) Commenced investment operations on September 18, 2012.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

OR THE FISCAL YEAR OR PERIOD ENDED MARCH 31, 2013

MULTI-MANAGER INTERNATIONAL EQUITY FUND					MULTI-MANAGER LARGE CAP FUND						MULTI-MANAGER MID CAP FUND						MULTI-MANAGER SMALL CAP FUND						MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND
SEPT. 30, 2013		MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013			SEPT. 30, 2013			MARCH 31, 2013
	$23,207		$33,824			$1,985			$8,095			$2,102			$6,840			$(822	)		$638			$19,294			$46,471
	24,024		(39,545	)		55,832			105,380			67,526			106,736			42,546			22,931			13,149			19,789
	99,598		179,452			21,637			(48,007	)		24,156			251			20,011			31,070			(33,060	)		28,743
	146,829		173,731			79,454			65,468			93,784			113,827			61,735			54,639			(617	)		95,003
	391,566		(170,793	)		(209,440	)		(234,172	)		(38,199	)		(189,632	)		(100,130	)		(82,922	)		(57,741	)		81,211
	391,566		(170,793	)		(209,440	)		(234,172	)		(38,199	)		(189,632	)		(100,130	)		(82,922	)		(57,741	)		81,211
	–		(39,798	)		(1,849	)		(8,233	)		–			(7,000	)		–			(3,500	)		(20,876	)		(46,596	)
	–		–			–			(107,385	)		–			(36,554	)		–			(8,189	)		–			(6,280	)
	–		(39,798	)		(1,849	)		(115,618	)		–			(43,554	)		–			(11,689	)		(20,876	)		(52,876	)
	538,395		(36,860	)		(131,835	)		(284,322	)		55,585			(119,359	)		(38,395	)		(39,972	)		(79,234	)		123,338
	2,205,344		2,242,204			841,393			1,125,715			940,521			1,059,880			446,003			485,975			769,068			645,730
	$2,743,739		$2,205,344			$709,558			$841,393			$996,106			$940,521			$407,608			$446,003			$689,834			$769,068
	$29,028		$5,821			$231			$95			$3,194			$1,092			$(1,056	)		$(234	)		$(1,069	)		$513

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			PERIOD ENDED MARCH 31, 2009(1)
Net Asset Value, Beginning of Period		$18.92			$18.67			$23.13			$20.85			$12.03			$10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.20			0.15			0.22			0.10			0.05			0.01
Net realized and unrealized gains (losses)		(0.40	)		0.33			(2.07	)		4.20			9.49			2.02
Total from Investment Operations		(0.20	)		0.48			(1.85	)		4.30			9.54			2.03
LESS DISTRIBUTIONS PAID:
From net investment income(2)		–			(0.23	)		(0.21	)		(0.16	)		(0.09	)		–
From net realized gains		–			–			(2.40	)		(1.86	)		(0.63	)		–
Total Distributions Paid		–			(0.23	)		(2.61	)		(2.02	)		(0.72	)		–
Net Asset Value, End of Period		$18.72			$18.92			$18.67			$23.13			$20.85			$12.03
Total Return(3)		(1.06	)%		2.56	%		(5.86	)%		20.88	%		79.65	%		20.30	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$2,247,300			$2,264,394			$1,818,621			$2,470,359			$1,896,421			$268,350
Ratio to average net assets of:(4)
Expenses, net of reimbursements and credits		1.31	%(5)		1.35	%(5)(6)		1.44	%(5)		1.45	%(5)		1.48	%		1.50	%
Expenses, before reimbursements and credits		1.52	%		1.53	%		1.52	%		1.52	%		1.55	%		1.68	%
Net investment income, net of reimbursements and credits		2.14	%(5)		0.87	%(5)(6)		1.01	%(5)		0.42	%(5)		0.25	%		0.54	%(7)
Net investment income, before reimbursements and credits		1.93	%		0.69	%		0.93	%		0.35	%		0.18	%		0.36	%(7)
Portfolio Turnover Rate		20.09	%		35.44	%		46.58	%		76.35	%		115.05	%		23.99	%

(1) Commenced investment operations on November 19, 2008.

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

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $29,000, $81,000, $48,000 and $149,000, which represents less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(6) Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 1.35%. Prior to January 1, 2013, the expense limitation had been 1.40%.

(7) As the Fund commenced investment operations on November 19, 2008, annualized net investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			PERIOD ENDED MARCH 31, 2013(1)
Net Asset Value, Beginning of Period		$10.86			$10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.16			0.11
Net realized and unrealized gains		0.64			0.85
Total from Investment Operations		0.80			0.96
LESS DISTRIBUTIONS PAID:
From net investment income		(0.15	)		(0.10	)
Total Distributions Paid		(0.15	)		(0.10	)
Net Asset Value, End of Period		$11.51			$10.86
Total Return(2)		7.50	%		9.67	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$561,601			$315,734
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		1.00	%(4)		0.99	%(4)
Expenses, before reimbursements and credits		1.18	%		1.27	%
Net investment income, net of reimbursements and credits		3.06	%(4)		1.99	%(4)(5)
Net investment income, before reimbursements and credits		2.88	%		1.71	%(5)
Portfolio Turnover Rate		29.20	%		50.68	%

(1) Commenced investment operations on September 18, 2012.

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $6,000 and $10,000, which represents less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and the period from September 18, 2012 (commencement of operations) to March 31, 2013, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(5) As the Fund commenced investment operations on September 18, 2012, annualized net investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS continued

MULTI-MANAGER GLOBAL REAL ESTATE FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			PERIOD ENDED MARCH 31, 2009(1)
Net Asset Value, Beginning of Period		$19.02			$17.29			$18.20			$17.08			$9.87			$10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.17			0.23			0.21			0.17			0.23			0.15
Net realized and unrealized gains (losses)		(0.59	)		2.73			0.09			2.56			7.66			(0.17	)
Total from Investment Operations		(0.42	)		2.96			0.30			2.73			7.89			(0.02	)
LESS DISTRIBUTIONS PAID:
From net investment income(2)		(0.16	)		(0.39	)		(0.26	)		(0.23	)		(0.22	)		(0.09	)
From net realized gains		–			(0.84	)		(0.95	)		(1.38	)		(0.46	)		(0.02	)
Total Distributions Paid		(0.16	)		(1.23	)		(1.21	)		(1.61	)		(0.68	)		(0.11	)
Net Asset Value, End of Period		$18.44			$19.02			$17.29			$18.20			$17.08			$9.87
Total Return(3)		(2.19	)%		17.62	%		2.66	%		16.59	%		80.53	%		(0.43	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$944,304			$1,142,873			$764,154			$820,472			$633,800			$185,425
Ratio to average net assets of:(4)
Expenses, net of reimbursements and credits		1.09	%(5)		1.16	%(5)(6)		1.27	%(5)		1.29	%(5)		1.30	%		1.30	%
Expenses, before reimbursements and credits		1.46	%		1.46	%		1.47	%		1.47	%		1.48	%		1.55	%
Net investment income, net of reimbursements and credits		2.00	%(5)		1.24	%(5)(6)		1.20	%(5)		0.95	%(5)		1.53	%		3.68	%(7)
Net investment income, before reimbursements and credits		1.63	%		0.94	%		1.00	%		0.77	%		1.35	%		3.43	%(7)
Portfolio Turnover Rate		35.12	%		63.98	%		64.16	%		54.79	%		71.54	%		55.99	%

(1) Commenced investment operations on November 19, 2008.

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

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $14,000, $49,000, $22,000 and $77,000, which represents less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(6) Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 1.10%. Prior to January 1, 2013, the expense limitation had been 1.20%.

(7) As the Fund commenced investment operations on November 19, 2008, annualized net investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER INTERNATIONAL EQUITY FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$9.88			$9.25			$10.17			$9.19			$6.28			$11.15
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.09			0.16			0.16			0.07			0.03			0.11
Net realized and unrealized gains (losses)		0.55			0.65			(0.92	)		0.98			2.93			(4.79	)
Total from Investment Operations		0.64			0.81			(0.76	)		1.05			2.96			(4.68	)
LESS DISTRIBUTIONS PAID:
From net investment income(1)		–			(0.18	)		(0.16	)		(0.07	)		(0.05	)		(0.09	)
From net realized gains		–			–			–			–			–			(0.10	)
Total Distributions Paid		–			(0.18	)		(0.16	)		(0.07	)		(0.05	)		(0.19	)
Net Asset Value, End of Period		$10.52			$9.88			$9.25			$10.17			$9.19			$6.28
Total Return(2)		6.37	%		8.92	%		(7.24	)%		11.49	%		47.16	%		(42.04	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$2,743,739			$2,205,344			$2,242,204			$3,451,805			$2,902,773			$1,048,341
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		1.31	%(4)		1.31	%(4)		1.37	%(4)		1.38	%(4)		1.41	%		1.44	%
Expenses, before reimbursements and credits		1.42	%		1.43	%		1.40	%		1.41	%		1.42	%		1.47	%
Net investment income, net of reimbursements and credits		1.99	%(4)		1.59	%(4)		1.44	%(4)		0.74	%(4)		0.71	%		1.27	%
Net investment income, before reimbursements and credits		1.88	%		1.47	%		1.41	%		0.71	%		0.70	%		1.24	%
Portfolio Turnover Rate		20.34	%		53.03	%		70.80	%		123.93	%		59.84	%		69.98	%

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

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

(3) Annualized for periods less than one year.

(4) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $39,000, $114,000, $92,000 and $374,000, which represents less than 0.005, 0.01, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS continued

MULTI-MANAGER LARGE CAP FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$9.32			$9.85			$9.56			$8.19			$5.68			$8.76
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.03			0.08			0.05			0.04			0.06			0.07
Net realized and unrealized gains (losses)		0.95			0.68			0.56			1.38			2.50			(3.08	)
Total from Investment Operations		0.98			0.76			0.61			1.42			2.56			(3.01	)
LESS DISTRIBUTIONS PAID:
From net investment income		(0.02	)		(0.09	)		(0.05	)		(0.05	)		(0.05	)		(0.07	)
From net realized gains		–			(1.20	)		(0.27	)		–			–			–
Total Distributions Paid		(0.02	)		(1.29	)		(0.32	)		(0.05	)		(0.05	)		(0.07	)
Net Asset Value, End of Period		$10.28			$9.32			$9.85			$9.56			$8.19			$5.68
Total Return(1)		10.58	%		8.77	%		6.96	%		17.36	%		45.25	%		(34.53	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$709,558			$841,393			$1,125,715			$1,048,810			$710,622			$329,025
Ratio to average net assets of:(2)
Expenses, net of reimbursements and credits		1.10	%(3)		1.10	%(3)		1.16	%(3)		1.19	%(3)		1.20	%		1.20	%
Expenses, before reimbursements and credits		1.19	%		1.19	%		1.19	%		1.20	%		1.20	%		1.23	%
Net investment income, net of reimbursements and credits		0.51	%(3)		0.85	%(3)		0.59	%(3)		0.52	%(3)		0.81	%		1.01	%
Net investment income, before reimbursements and credits		0.42	%		0.76	%		0.56	%		0.51	%		0.81	%		0.98	%
Portfolio Turnover Rate		9.22	%		57.95	%		39.43	%		69.02	%		48.85	%		57.53	%

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

⁽²⁾  Annualized for periods less than one year.

⁽³⁾  The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $10,000, $36,000, $43,000 and $99,000, which represents less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER MID CAP FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$13.44			$12.40			$12.59			$10.14			$6.26			$9.99
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		0.03			0.10			0.03			–	(1)		0.02			0.05
Net realized and unrealized gains (losses)		1.37			1.55			0.14			2.46			3.88			(3.68	)
Total from Investment Operations		1.40			1.65			0.17			2.46			3.90			(3.63	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.10	)		(0.01	)		(0.01	)		(0.02	)		(0.05	)
From net realized gains		–			(0.51	)		(0.35	)		–			–			(0.05	)
Total Distributions Paid		–			(0.61	)		(0.36	)		(0.01	)		(0.02	)		(0.10	)
Net Asset Value, End of Period		$14.84			$13.44			$12.40			$12.59			$10.14			$6.26
Total Return(2)		10.42	%		13.90	%		1.93	%		24.28	%		62.34	%		(36.44	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$996,106			$940,521			$1,059,880			$1,138,398			$587,664			$376,217
Ratio to average net assets of:(3)
Expenses, net of reimbursements and  credits		1.00	%(4)		1.07	%(4)(5)		1.17	%(4)		1.19	%(4)		1.20	%		1.20	%
Expenses, before reimbursements and  credits		1.20	%		1.21	%		1.20	%		1.20	%		1.20	%		1.21	%
Net investment income (loss), net of reimbursements and credits		0.44	%(4)		0.73	%(4)(5)		0.25	%(4)		(0.01	)%(4)		0.22	%		0.59	%
Net investment income (loss), before reimbursements and credits		0.24	%		0.59	%		0.22	%		(0.02	)%		0.22	%		0.58	%
Portfolio Turnover Rate		35.27	%		67.67	%		54.53	%		62.29	%		103.02	%		123.45	%

⁽¹⁾  Per share amount from net investment loss was less than $0.01 per share.

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

⁽³⁾  Annualized for periods less than one year.

⁽⁴⁾  The net expenses and net investment income (loss) ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $13,000, $32,000, $25,000 and $68,000, which represents less than 0.005, less than 0.005, less than 0.005 and 0.01 percent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount.

⁽⁵⁾  Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 1.00%. Prior to January 1, 2013, the expense limitation had been 1.10%.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS continued

MULTI–MANAGER SMALL CAP FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED}			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			YEAR ENDED MARCH 31, 2010			YEAR ENDED MARCH 31, 2009
Net Asset Value, Beginning of Period		$10.89			$9.82			$11.12			$8.85			$5.53			$8.90
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		(0.03	)		0.01			—	(1)		(0.05	)		(0.03	)		(0.02	)
Net realized and unrealized gains (losses)		1.69			1.33			(0.33	)		2.32			3.35			(3.34	)
Total from Investment Operations		1.66			1.34			(0.33	)		2.27			3.32			(3.36	)
LESS DISTRIBUTIONS PAID:
From net investment income		–			(0.08	)		–			–			–			–
From net realized gains		–			(0.19	)		(0.97	)		–			–			(0.01	)
Total Distributions Paid		–			(0.27	)		(0.97	)		–			–			(0.01	)
Net Asset Value, End of Period		$12.55			$10.89			$9.82			$11.12			$8.85			$5.53
Total Return(2)		15.24	%		14.01	%		(1.53	)%		25.79	%		59.86	%		(37.76	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$407,608			$446,003			$485,975			$591,747			$442,610			$230,043
Ratio to average net assets of:(3)
Expenses, net of reimbursements and credits		1.30	%(4)		1.30	%(4)		1.37	%(4)		1.39	%(4)		1.40	%		1.40	%
Expenses, before reimbursements and credits		1.41	%		1.41	%		1.41	%		1.41	%		1.41	%		1.44	%
Net investment income (loss), net of reimbursements and credits		(0.38	)%(4)		0.14	%(4)		(0.05	)%(4)		(0.47	)%(4)		(0.44	)%		(0.31	)%
Net investment income (loss), before reimbursements and credits		(0.49	)%		0.03	%		(0.09	)%		(0.49	)%		(0.45	)%		(0.35	)%
Portfolio Turnover Rate		21.83	%		59.67	%		56.47	%		192.09	%		187.71	%		185.25	%

⁽¹⁾  Per share amount from net investment loss was less than $0.01 per share.

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

⁽³⁾  Annualized for periods less than one year.

⁽⁴⁾  The net expenses and net investment income (loss) ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $9,000, $24,000, $27,000 and $58,000, which represents less than 0.005, 0.005, 0.005 and 0.01 per-cent of average net assets for the six months ended September 30, 2013 and the fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses and net investment loss increased by a corresponding amount.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI–MANAGER HIGH YIELD OPPORTUNITY FUND
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			YEAR ENDED MARCH 31, 2012			YEAR ENDED MARCH 31, 2011			PERIOD ENDED MARCH 31, 2010(1)
Net Asset Value, Beginning of Period		$11.00			$10.44			$10.98			$10.41			$10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.29			0.65			0.68			0.68			0.29
Net realized and unrealized gains (losses)		(0.26	)		0.65			(0.29	)		0.68			0.40
Total from Investment Operations		0.03			1.30			0.39			1.36			0.69
LESS DISTRIBUTIONS PAID:
From net investment income(2)		(0.32	)		(0.65	)		(0.71	)		(0.68	)		(0.27	)
From net realized gains		–			(0.09	)		(0.22	)		(0.11	)		(0.01	)
Total Distributions Paid		(0.32	)		(0.74	)		(0.93	)		(0.79	)		(0.28	)
Net Asset Value, End of Period		$10.71			$11.00			$10.44			$10.98			$10.41
Total Return(3)		0.27	%		12.90	%		4.05	%		13.58	%		6.96	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$689,834			$769,068			$645,730			$649,149			$419,861
Ratio to average net assets of:(4)
Expenses, net of reimbursements and credits		0.90	%(5)		0.97	%(5)(6)		1.07	%(5)		1.08	%(5)		1.10	%
Expenses, before reimbursements and credits		1.19	%		1.18	%		1.17	%		1.18	%		1.21	%
Net investment income, net of reimbursements and credits		5.40	%(5)		6.09	%(5)(6)		6.53	%(5)		6.46	%(5)		6.04	%(7)
Net investment income, before reimbursements and credits		5.11	%		5.88	%		6.43	%		6.36	%		5.93	%(7)
Portfolio Turnover Rate		43.04	%		96.04	%		80.61	%		43.11	%		20.46	%

(1) Commenced investment operations on September 23, 2009.

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

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of approximately $18,000, $59,000, $27,000 and $88,000, which represents less than 0.005, 0.01, less than 0.005 and 0.02 per-cent of average net assets for the six months ended September 30, 2013 and fiscal years ended March 31, 2013, 2012 and 2011, respectively. Absent the additional reimbursements, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(6) Effective January 1, 2013, the investment advisers agreed to increase the expense reimbursements they provide to the Fund by contractually limiting the Fund’s total expenses to 0.90%. Prior to January 1, 2013, the expense limitation had been 1.00%.

(7) As the Fund commenced investment operations on September 23, 2009, annualized net investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9%
Austria – 0.2%
Erste Group Bank A.G.		121,337		$3,835
Brazil – 7.1%
ALL – America Latina Logistica S.A.		1,477,603		5,867
Arezzo Industria e Comercio S.A. *		174,700		3,091
Arteris S.A.		371,785		3,219
Banco Bradesco S.A. ADR *		718,571		9,974
Banco do Brasil S.A. *		456,959		5,319
Banco Santander Brasil S.A.		746,600		5,056
Banco Santander Brasil S.A. ADR		620,201		4,310
BM&FBovespa S.A.		274,147		1,539
CETIP S.A. – Mercados Organizados *		918,801		9,701
Cosan Ltd., Class A		474,200		7,288
Cosan S.A. Industria e Comercio		49,473		945
Diagnosticos da America S.A.		832,481		4,387
Embraer S.A. ADR *		394,040		12,795
Ez Tec Empreendimentos e Participacoes S.A.		23,956		330
Fibria Celulose S.A. *		1,653,600		19,145
JBS S.A.		2,227,700		7,760
Kroton Educacional S.A.		609,200		8,672
Light S.A.		93,200		795
Localiza Rent a Car S.A. *		379,120		5,679
Natura Cosmeticos S.A.		210,764		4,731
Petroleo Brasileiro S.A. *		123,286		947
Petroleo Brasileiro S.A. ADR *		713,782		11,057
Petroleo Brasileiro S.A. ADR (New York Exchange} *		410,040		6,860
Sao Martinho S.A.		35,737		468
Sul America S.A.		140,513		1,006
Vale S.A.		88,203		1,367
Vale S.A. ADR		1,062,129		16,580
				158,888
Canada – 0.2%
Methanex Corp.		100,600		5,164
Chile – 0.1%
Banco de Chile		3,737,878		562
Banco Santander Chile ADR		27,426		721
Cia Cervecerias Unidas S.A.		54,374		722
ENTEL Chile S.A.		39,082		632
				2,637
China – 9.6%
Anhui Conch Cement Co. Ltd., Class H		725,191		2,333
Anta Sports Products Ltd.		3,669,127		4,721

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
China – 9.6% – continued
Baidu, Inc. ADR *		69,270		$10,749
Bank of China Ltd., Class H		10,067,106		4,601
Central China Real Estate Ltd.		1,578,883		503
China Coal Energy Co. Ltd., Class H		2,106,000		1,260
China Construction Bank Corp., Class H		38,647,951		29,805
China Dongxiang Group Co.		17,013,000		2,647
China Molybdenum Co. Ltd., Class H		734,000		286
China Petroleum & Chemical Corp., Class H		4,437,271		3,469
China Shenhua Energy Co. Ltd., Class H		3,415,052		10,351
China Shineway Pharmaceutical Group Ltd.		2,685,750		3,887
China Telecom Corp. Ltd., Class H		600,000		297
China ZhengTong Auto Services Holdings Ltd. *		4,036,400		2,518
Chongqing Rural Commercial Bank, Class H		2,048,446		989
CNOOC Ltd.		7,107,342		14,364
CNOOC Ltd. ADR		36,723		7,411
CSR Corp. Ltd., Class H		9,589,000		6,665
Dongfeng Motor Group Co. Ltd., Class H		4,057,508		6,158
Fosun International Ltd.		902,000		712
Giant Interactive Group, Inc. ADR		165,124		1,506
Great Wall Motor Co. Ltd., Class H		493,920		2,674
Guangzhou Automobile Group Co. Ltd., Class H		17,119,421		18,545
Guangzhou R&F Properties Co. Ltd., Class H		943,200		1,477
Harbin Electric Co. Ltd., Class H		382,978		237
Hengan International Group Co. Ltd.		700,147		8,184
Huaneng Power International, Inc., Class H		5,055,940		5,030
Industrial & Commercial Bank of China Ltd., Class H		16,947,967		11,845
Lenovo Group Ltd.		3,178,546		3,330
Mindray Medical International Ltd. ADR		253,562		9,861
New Oriental Education & Technology Group, Inc. ADR		183,700		4,574
Parkson Retail Group Ltd.		6,178,022		2,596
PetroChina Co. Ltd., Class H		2,182,024		2,403
PICC Property & Casualty Co. Ltd., Class H		3,079,659		4,175
Ping An Insurance Group Co. of China Ltd., Class H		1,208,500		9,005
Sino-Ocean Land Holdings Ltd.		973,000		573
Sinopec Engineering Group Co. Ltd. *		308,500		378
SOHO China Ltd.		1,577,942		1,358
Tencent Holdings Ltd.		240,500		12,633
Tonly Electronics Holdings Ltd. *		59,000		38

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
China – 9.6% – continued
WuXi PharmaTech Cayman, Inc. ADR *		36,518		$1,000
Zhejiang Expressway Co. Ltd., Class H		580,000		534
				215,682
Colombia – 0.7%
Almacenes Exito S.A.		44,858		768
Bancolombia S.A. ADR		98,279		5,655
Ecopetrol S.A.		401,185		922
Pacific Rubiales Energy Corp.		390,863		7,718
				15,063
Cyprus – 0.8%
Eurasia Drilling Co. Ltd. GDR (Registered)		303,128		12,120
Globaltrans Investment PLC GDR (Registered)		359,095		5,218
				17,338
Czech Republic – 0.7%
Komercni Banka A.S.		69,549		15,485
Egypt – 0.5%
Commercial International Bank Egypt S.A.E.		2,235,026		12,274
Hong Kong – 5.8%
AIA Group Ltd.		1,860,000		8,756
Beijing Enterprises Holdings Ltd.		1,257,000		9,070
Chaoda Modern Agriculture Holdings Ltd. *		5,742,000		–
China Lumena New Materials Corp.		6,558,000		1,274
China Mobile Ltd.		4,728,085		53,188
China Power International Development Ltd.		20,901,350		7,892
Cosco International Holdings Ltd.		261,998		108
Galaxy Entertainment Group Ltd. *		1,743,000		12,258
Geely Automobile Holdings Ltd.		3,040,000		1,567
Kingboard Laminates Holdings Ltd.		10,559,000		4,361
KWG Property Holding Ltd.		643,500		406
Nine Dragons Paper Holdings Ltd.		6,574,000		4,646
Pacific Basin Shipping Ltd.		12,444,600		8,469
Shougang Fushan Resources Group Ltd.		3,989,469		1,342
Sino Biopharmaceutical		1,460,000		990
SJM Holdings Ltd.		2,231,284		6,288
Skyworth Digital Holdings Ltd.		1,388,000		662
Stella International Holdings Ltd.		1,309,500		3,361
TCL Multimedia Technology Holdings Ltd.		590,000		281
Texwinca Holdings Ltd.		6,249,000		5,800
				130,719

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
Hungary – 0.4%
EGIS Pharmaceuticals PLC		2,679		$338
Magyar Telekom Telecommunications PLC		2,408,124		3,352
OTP Bank PLC		237,593		4,703
Richter Gedeon Nyrt		25,186		438
				8,831
India – 6.1%
Andhra Bank		208,397		172
Axis Bank Ltd.		257,482		4,141
Bajaj Auto Ltd.		89,217		2,836
Bank of Baroda		46,551		367
Bank of India		504,575		1,271
Bharat Petroleum Corp. Ltd.		126,773		671
Cairn India Ltd.		218,860		1,111
Canara Bank		280,422		992
Dr. Reddy’s Laboratories Ltd.		143,004		5,437
GAIL India Ltd.		702,188		3,668
Gitanjali Gems Ltd. *		50,871		46
HCL Technologies Ltd.		881,257		15,253
HDFC Bank Ltd. ADR		215,767		6,641
Housing Development Finance Corp.		192,725		2,350
ICICI Bank Ltd.		324,017		4,571
ICICI Bank Ltd. ADR		129,087		3,935
Indiabulls Housing Finance Ltd.		255,493		747
Indian Bank		506,706		545
Infosys Ltd. ADR		107,497		5,172
McLeod Russel India Ltd.		33,752		135
Oil & Natural Gas Corp. Ltd.		1,220,138		5,215
Power Grid Corp. of India Ltd.		2,162,249		3,386
Punjab National Bank		167,200		1,231
Reliance Infrastructure Ltd.		39,418		234
Syndicate Bank		262,848		284
Tata Chemicals Ltd.		101,280		386
Tata Consultancy Services Ltd.		836,693		25,769
Tata Global Beverages Ltd.		285,892		657
Tata Motors Ltd.		307,006		1,639
Tata Motors Ltd. ADR		220,717		5,876
UCO Bank		241,832		224
Ultratech Cement Ltd.		109,374		3,159
United Phosphorus Ltd.		335,877		777
Vijaya Bank		293,709		169
Wipro Ltd.		3,119,325		23,629
Zee Entertainment Enterprises Ltd.		1,155,818		4,216
				136,912

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
Indonesia – 1.4%
Adaro Energy Tbk PT		31,438,688		$2,446
Astra Agro Lestari Tbk PT		298,820		504
Bank Bukopin Tbk PT		3,226,776		179
Bank Mandiri Persero Tbk PT		6,764,623		4,650
Bank Rakyat Indonesia Persero Tbk PT		11,721,431		7,348
Indo Tambangraya Megah Tbk PT		264,722		601
Indocement Tunggal Prakarsa Tbk PT		742,500		1,152
Indofood CBP Sukses Makmur Tbk PT		374,000		331
Indofood Sukses Makmur Tbk PT		9,688,500		5,913
Kalbe Farma Tbk PT		7,548,000		770
Tambang Batubara Bukit Asam Persero Tbk PT		2,081,132		2,276
Telekomunikasi Indonesia Persero Tbk PT		30,949,070		5,620
				31,790
Kuwait – 0.1%
Agility Public Warehousing Co. K.S.C.		1,012,500		2,542
Malaysia – 1.4%
Axiata Group Bhd.		1,972,900		4,165
Berjaya Sports Toto Bhd.		224,790		284
British American Tobacco Malaysia Bhd.		38,692		762
DiGi.Com Bhd.		642,198		955
DRB-Hicom Bhd.		1,211,862		989
Genting Bhd.		2,115,987		6,754
Genting Malaysia Bhd.		5,623,287		7,283
Hong Leong Financial Group Bhd.		162,640		725
KLCC Property Holdings Bhd.		185,022		365
Kulim Malaysia Bhd.		356,000		359
Lafarge Malaysia Bhd.		151,048		437
Malayan Banking Bhd.		491,348		1,484
Malaysia Building Society		964,244		814
Media Prima Bhd.		143,350		119
Parkson Holdings Bhd.		320,781		378
Telekom Malaysia Bhd.		162,687		261
Tenaga Nasional Bhd.		474,900		1,316
UMW Holdings Bhd.		997,831		3,620
				31,070
Mexico – 5.1%
Alfa S.A.B. de C.V., Series A		510,270		1,376
Alsea S.A.B. de C.V.		960,113		2,687
America Movil S.A.B. de C.V. ADR, Series L		1,304,053		25,833
America Movil S.A.B. de C.V., Series L		2,115,391		2,098
Cemex S.A.B. de C.V. ADR (Participation Certificate) *		932,200		10,422

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
Mexico – 5.1% – continued
Controladora Comercial Mexicana S.A.B. de C.V., Series UBC		145,200		$618
Fomento Economico Mexicano S.A.B. de C.V. ADR		5,227		507
Gruma S.A.B. de C.V., Series B *		244,249		1,362
Grupo Aeroportuario del Pacifico S.A.B. de C.V. ADR		5,576		285
Grupo Bimbo S.A.B. de C.V., Series A		3,026,000		9,349
Grupo Financiero Banorte S.A.B. de C.V., Series O		1,490,191		9,285
Grupo Herdez S.A.B. de C.V.		50,171		170
Grupo Mexico S.A.B. de C.V., Series B		3,035,081		9,087
Grupo Sanborns S.A. de C.V.		2,553,335		5,316
Grupo Televisa S.A.B. ADR		1,225,563		34,254
Industrias Bachoco S.A.B. de C.V. ADR		7,955		314
Kimberly-Clark de Mexico S.A.B. de C.V., Series A		363,200		1,062
				114,025
Norway – 0.0%
Vard Holdings Ltd. *		302,000		210
Panama – 0.5%
Copa Holdings S.A., Class A		86,925		12,054
Peru – 0.2%
Credicorp Ltd.		39,400		5,062
Intercorp Financial Services, Inc. *		10,719		316
				5,378
Philippines – 0.8%
Aboitiz Equity Ventures, Inc.		801,550		829
Aboitiz Power Corp.		906,100		656
Alliance Global Group, Inc.		857,700		464
Globe Telecom, Inc.		22,845		840
Metropolitan Bank & Trust		4,599,149		8,750
SM Investments Corp.		259,129		4,647
Universal Robina Corp.		309,760		874
				17,060
Poland – 0.8%
Cyfrowy Polsat S.A. *		923,643		6,285
Eurocash S.A.		233,946		3,604
KGHM Polska Miedz S.A.		32,410		1,276
Polskie Gornictwo Naftowe i Gazownictwo S.A.		137,254		270
Powszechna Kasa Oszczednosci Bank Polski S.A.		524,427		6,216

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
Poland – 0.8% – continued
Powszechny Zaklad Ubezpieczen S.A.		9,546		$1,296
				18,947
Portugal – 0.2%
Jeronimo Martins SGPS S.A.		242,010		4,971
Qatar – 0.5%
Industries Qatar QSC		108,735		4,477
Qatar National Bank SAQ		153,697		7,044
				11,521
Russia – 5.2%
Gazprom OAO ADR		2,355,841		20,767
Lukoil OAO ADR		340,682		21,610
Magnit OJSC		10,815		2,741
Magnit OJSC GDR (Registered)		99,273		6,116
Mail.ru Group Ltd. GDR (1)(2)		17,650		592
Mail.ru Group Ltd. GDR (Registered)		233,575		8,923
MMC Norilsk Nickel OJSC ADR		87,064		1,257
Mobile Telesystems OJSC ADR		284,662		6,337
Novolipetsk Steel OJSC GDR (Registered)		213,595		3,474
Pharmstandard OJSC GDR (Registered) *		27,437		389
Phosagro OAO GDR (Registered)		37,977		384
Rosneft OAO GDR (Registered)		625,100		5,066
Sberbank of Russia		6,100,788		18,411
Sberbank of Russia ADR		1,040,000		12,533
Severstal OAO GDR (Registered)		199,841		1,722
Surgutneftegas OAO ADR		81,208		698
Tatneft OAO ADR		8,798		345
TMK OAO GDR (Registered)		138,459		1,797
Uralkali OJSC GDR (Registered)		133,744		3,483
				116,645
Singapore – 0.3%
China Yuchai International Ltd.		32,223		766
ComfortDelGro Corp. Ltd.		872,000		1,370
DBS Group Holdings Ltd.		142,000		1,860
Flextronics International Ltd. *		278,100		2,528
Singapore Post Ltd.		381,000		384
				6,908
South Africa – 7.3%
Aspen Pharmacare Holdings Ltd. *		332,782		8,707
Aveng Ltd.		1,203,350		2,923
Barloworld Ltd.		1,697,463		16,118
Bidvest Group Ltd.		273,162		6,846
Emira Property Fund		137,106		201

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
South Africa – 7.3% – continued
FirstRand Ltd.		668,712		$2,230
Gold Fields Ltd.		125,201		576
Imperial Holdings Ltd.		405,194		8,796
Investec Ltd.		110,684		727
Liberty Holdings Ltd.		110,116		1,283
Life Healthcare Group Holdings Ltd.		703,030		2,498
Massmart Holdings Ltd.		429,568		7,192
Mondi Ltd.		45,398		773
MTN Group Ltd.		1,044,298		20,381
Naspers Ltd., Class N		245,903		22,685
Netcare Ltd.		229,429		548
RMB Holdings Ltd.		230,076		1,057
Sanlam Ltd.		22,678		106
Sappi Ltd. *		303,232		762
Sasol Ltd.		220,019		10,498
Shoprite Holdings Ltd.		176,807		2,908
Sibanye Gold Ltd.		118,671		149
Standard Bank Group Ltd.		1,106,891		13,213
Steinhoff International Holdings Ltd. *		551,853		1,964
Tongaat Hulett Ltd.		39,083		467
Truworths International Ltd.		3,149,730		28,225
Woolworths Holdings Ltd.		281,400		2,079
				163,912
South Korea – 15.2%
Asia Cement Co. Ltd.		1,990		180
BS Financial Group, Inc.		504,510		7,533
Bukwang Pharmaceutical Co. Ltd.		43,330		555
Coway Co. Ltd.		95,744		5,301
Daeduck GDS Co. Ltd.		55,670		1,086
Daekyo Co. Ltd.		61,520		394
Daishin Securities Co. Ltd.		22,732		196
Daou Technology, Inc.		86,061		1,106
Dongbu Insurance Co. Ltd.		198,572		8,543
Doosan Corp.		6,869		966
Global & Yuasa Battery Co. Ltd.		12,992		643
GS Home Shopping, Inc.		4,002		925
Hana Financial Group, Inc.		180,790		6,181
Hankook Tire Co. Ltd.		415,766		23,766
Hyundai Department Store Co. Ltd.		23,946		3,583
Hyundai Glovis Co. Ltd.		21,861		4,284
Hyundai Home Shopping Network Corp.		6,127		901
Hyundai Mipo Dockyard		55,375		8,095
Hyundai Motor Co.		167,213		39,074
Industrial Bank of Korea		126,930		1,406

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
South Korea – 15.2% – continued
Kangwon Land, Inc.		33,210		$881
KB Financial Group, Inc.		111,270		3,886
KB Financial Group, Inc. ADR		168,341		5,895
KCC Corp.		1,296		545
Kia Motors Corp.		35,444		2,150
Korea District Heating Corp.		3,169		292
Korea Zinc Co. Ltd.		19,936		6,017
KT Corp.		22,903		768
KT&G Corp.		19,388		1,390
LG Chem Ltd.		40,651		11,606
LG Display Co. Ltd. *		27,610		667
LG Electronics, Inc.		75,150		4,982
Mirae Asset Securities Co. Ltd.		10,850		372
NongShim Co. Ltd.		1,317		315
Paradise Co. Ltd.		135,390		3,089
POSCO ADR		63,300		4,661
Samsung Electronics Co. Ltd.		91,334		115,638
Samsung Engineering Co. Ltd.		31,725		2,431
Samsung Heavy Industries Co. Ltd.		429,261		17,166
SFA Engineering Corp.		16,892		698
Shinhan Financial Group Co. Ltd.		659,625		26,718
SK Holdings Co. Ltd.		6,773		1,223
SK Hynix, Inc. *		254,650		7,148
SK Innovation Co. Ltd.		6,317		859
SK Telecom Co. Ltd.		26,881		5,484
Taekwang Industrial Co. Ltd.		207		231
Woori Finance Holdings Co. Ltd.		102,050		1,184
Yuhan Corp.		4,519		824
				341,838
Taiwan – 9.2%
Advanced Semiconductor Engineering, Inc.		6,832,584		6,601
Asustek Computer, Inc.		148,923		1,194
Cathay Real Estate Development Co. Ltd.		454,000		314
Cheng Shin Rubber Industry Co. Ltd.		66,914		175
Chipbond Technology Corp.		2,976,000		6,134
Compal Electronics, Inc.		6,941,000		5,073
CTCI Corp.		171,000		277
Delta Electronics, Inc.		1,154,689		5,609
Farglory Land Development Co. Ltd.		355,870		662
Fubon Financial Holding Co. Ltd.		1,915,000		2,650
Ginko International Co. Ltd.		116,000		2,148
Hermes Microvision, Inc.		172,000		5,005
Hon Hai Precision Industry Co. Ltd.		14,947,484		38,331

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
Taiwan – 9.2% – continued
King’s Town Bank		348,000		$296
Lite-On Technology Corp.		742,817		1,262
MediaTek, Inc.		1,102,826		13,642
Novatek Microelectronics Corp.		952,000		3,947
Pegatron Corp.		1,303,000		1,861
Pou Chen Corp.		854,147		996
President Chain Store Corp.		2,334,721		16,865
Radiant Opto-Electronics Corp.		264,527		944
Realtek Semiconductor Corp.		322,280		788
Shin Kong Financial Holding Co. Ltd.		2,567,654		868
Taishin Financial Holding Co. Ltd.		5,071,029		2,341
Taiwan Cement Corp.		1,074,000		1,555
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		1,908,575		32,369
Taiwan Semiconductor Manufacturing Co. Ltd.		13,262,542		45,094
Teco Electric and Machinery Co. Ltd.		1,365,497		1,447
Uni-President Enterprises Corp.		1,302,966		2,429
Vanguard International Semiconductor Corp.		454,000		499
Yageo Corp.		11,983,300		4,256
Yungtay Engineering Co. Ltd.		361,000		949
				206,581
Thailand – 2.0%
Bangkok Bank PCL (Registered)		942,574		5,949
Bangkok Bank PCL NVDR		815,100		5,120
Bangkok Expressway PCL NVDR		321,500		355
BEC World PCL (Registered)		451,400		819
CP ALL PCL NVDR		1,290,464		1,455
Kasikornbank PCL (Registered)		1,252,499		7,089
Kasikornbank PCL NVDR		1,657,000		9,298
Kiatnakin Bank PCL (Registered)		777,400		1,056
Krung Thai Bank PCL (Registered)		2,199,892		1,350
PTT Global Chemical PCL (Registered)		1,091,033		2,599
PTT Global Chemical PCL NVDR		355,300		848
PTT PCL NVDR		428,700		4,333
Thai Airways International PCL (Registered)		1,099,800		700
Thai Beverage PCL		1,733,160		758
Thai Oil PCL NVDR		582,857		1,078
Thanachart Capital PCL NVDR		1,000,600		1,074
Tisco Financial Group PCL NVDR		235,700		285
Total Access Communication PCL NVDR		227,092		772
				44,938

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 89.9% – continued
Turkey – 2.3%
Akbank T.A.S.		538,575		$1,985
Enka Insaat ve Sanayi A.S.		3,759,288		11,170
Eregli Demir ve Celik Fabrikalari T.A.S.		635,697		806
Ford Otomotiv Sanayi A.S.		54,476		750
Haci Omer Sabanci Holding A.S.		664,832		3,214
KOC Holding A.S.		534,823		2,469
Tekfen Holding A.S.		211,462		479
Tofas Turk Otomobil Fabrikasi A.S.		84,823		517
Tupras Turkiye Petrol Rafinerileri A.S.		765,922		16,189
Turk Hava Yollari AO		579,272		2,209
Turkiye Garanti Bankasi A.S.		2,257,911		8,904
Turkiye Sise ve Cam Fabrikalari A.S.		1,092,524		1,504
Ulker Biskuvi Sanayi A.S.		71,991		492
				50,688
United Arab Emirates – 1.4%
Abu Dhabi Commercial Bank PJSC		1,940,725		2,670
Aldar Properties PJSC		2,484,175		1,797
Dubai Financial Market *		5,622,555		3,143
Emaar Properties PJSC		12,900,173		20,496
Union National Bank PJSC		2,709,575		3,764
				31,870
United Kingdom – 2.0%
Afren PLC *		2,652,878		5,942
Anglo American PLC		814,456		19,988
BHP Billiton PLC		257,969		7,641
O’Key Group S.A. GDR (Registered)		42,971		512
SABMiller PLC		197,901		10,118
				44,201
United States – 1.8%
Central European Media Enterprises Ltd., Class A *		1,262,994		6,656
Cognizant Technology Solutions Corp., Class A *		115,970		9,523
Southern Copper Corp.		101,900		2,776
Tenaris S.A. ADR		472,744		22,115
				41,070
Total Common Stocks (3)
(Cost $1,823,128)				2,021,047
PREFERRED STOCKS – 5 .1%
Brazil – 5.1%
Banco do Estado do Rio Grande do Sul S.A., Class B *		115,306		802
Bradespar S.A. *		91,050		1,011

	NUMBER OF SHARES		VALUE (000s)
PREFERRED STOCKS – 5 .1% – continued
Brazil – 5.1% – continued
Braskem S.A., Class A *		181,900		$1,444
Cia de Bebidas das Americas ADR		189,997		7,286
Cia Paranaense de Energia ADR, Class B		53,451		746
Itau Unibanco Holding S.A.		52,653		746
Itau Unibanco Holding S.A. ADR		2,909,754		41,086
Itausa – Investimentos Itau S.A.		416,300		1,692
Klabin S.A.		23,460		122
Lojas Americanas S.A. *		1,422,083		10,478
Marcopolo S.A. *		2,013,200		5,995
Metalurgica Gerdau S.A. *		156,071		1,467
Petroleo Brasileiro S.A. *		1,330,256		11,056
Randon Participacoes S.A. *		873,750		4,881
Usinas Siderurgicas de Minas Gerais S.A., Class A *		1,214,075		5,796
Vale S.A.		1,410,313		20,102
				114,710
Total Preferred Stocks (3)
(Cost $121,359)				114,710
	NUMBER OF WARRANTS		VALUE (000s)
WARRANTS – 1.1%
India – 0.4%
ITC Ltd., Exp. 5/2/18 *		1,154,182		$6,276
Maruti Suzuki India Ltd., Exp. 2/9/15 *		139,042		3,024
				9,300
Taiwan – 0.5%
CTBC Financial Holding Co. Ltd., Exp. 3/9/16, Strike $0.01 (1)(2)*		14,239,586		9,256
MediaTek, Inc., Exp. 8/8/16 *		123,000		1,521
Novatek Microelectronics Corp., Exp. 4/19/16 *		103,200		429
				11,206
United Kingdom – 0.2%
Ginko International Co. Ltd., Exp. 3/14/23 *		176,000		3,246
Total Warrants (3)
(Cost $22,611)				23,752

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
INVESTMENT COMPANIES – 2.7%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (4)(5)		60,260,039		$60,260
Total Investment Companies
(Cost $60,260)				60,260
Total Investments – 98.8%
(Cost $2,027,358)				2,219,769
Other Assets less Liabilities – 1.2%				27,531
NET ASSETS – 100.0%				$2,247,300

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $9,848,000 or 0.4% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
CTBC Financial Holding Co. Ltd., Exp. 3/9/16, Strike $0.01	3/9/11-7/29/13		$9,081
Mail.ru Group Ltd. GDR	9/25/12		601

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $70,750,000 with net sales of approximately $10,490,000 during the six months ended September 30, 2013.

(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an 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 September 30, 2013, the industry sectors for the Multi-Manager Emerging Markets Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		15.8%
Consumer Staples		5.6
Energy		10.3
Financials		22.5
Health Care		2.1

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Industrials		8.4%
Information Technology		19.7
Materials		8.4
Telecommunication Services		6.1
Utilities		1.1
Total		100.0%

At September 30, 2013, 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		23.9%
Korean Won		15.3
Hong Kong Dollar		14.4
South African Rand		9.3
Taiwan Dollar		8.1
Brazilian Real		7.2
Indian Rupee		5.4
All other currencies less than 5%		16.4
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 September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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 partcipants would use in pricing a security).

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (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. The following table summerizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$71,456		$257,257		$ –		$328,713
Consumer Staples		29,803		78,078		–		107,881
Energy		56,623		154,378		–		211,001
Financials		93,071		339,599		–		432,670
Health Care		15,249		27,528		–		42,777
Industrials		42,041		127,756		–		169,797
Information Technology		62,439		360,481		–		422,920
Materials		64,038		86,818		180		151,036
Telecommunication Services		34,899		96,084		–		130,983
Utilities		795		22,474		–		23,269
Preferred Stocks
Consumer Discretionary		10,478		–		–		10,478
Consumer Staples		7,286		–		–		7,286
Energy		11,056		–		–		11,056
Financials		44,325		–		–		44,325
Industrials		10,876		–		–		10,876
Materials		29,942		–		–		29,942
Utilities		747		–		–		747
Warrants
Consumer Discretionary		3,024		–		–		3,024
Consumer Staples		6,276		–		–		6,276
Financials		9,256		–		–		9,256
Health Care		–		–		3,246		3,246
Information Technology		1,521		429		–		1,950
Investment Companies		60,260		–		–		60,260
Total Investments		$665,461		$1,550,882		$3,426		$2,219,769

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, the Fund had transfers from Level 1 to Level 2 as disclosed below:

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

	BALANCE AS OF 3/31/13 (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 9/30/13 (000s)
Common Stock
Materials	$	–	$	–	$	–	$	33	$	–	$	147	$	–	$	–	$	–	$	180
Warrant
Health Care		1,567		–		–		275		–		1,404		–		–		–		3,246
Total	$	1,567	$	–	$	–	$	308	$	–	$	1,551	$	–	$	–	$	–	$	3,426

The Fund valued the securities included in the balance as of 9/30/13 above using an evaluated price from a third party provider. The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at September 30, 2013 was approximately $308,000, which is included in the Statement of Operations as part of the net change in unrealized appreciation (depreciation) on investments.

Transfers from Level 1 to Level 2
Industry	Value (000s)		Reason
Common Stocks
Consumer Discretionary		$99,215	Valuations at last trade with foreign fair value adjustments
Consumer Staples		24,834	Valuations at last trade with foreign fair value adjustments
Energy		51,486	Valuations at last trade with foreign fair value adjustments
Financials		109,965	Valuations at last trade with foreign fair value adjustments
Health Care		825	Valuations at last trade with foreign fair value adjustments
Industrials		50,063	Valuations at last trade with foreign fair value adjustments
Information Technology		241,228	Valuations at last trade with foreign fair value adjustments
Materials		27,074	Valuations at last trade with foreign fair value adjustments
Telecommunication Services		12,405	Valuations at last trade with foreign fair value adjustments
Utilities		1,316	Valuations at last trade with foreign fair value adjustments
Total		$618,411

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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

	FAIR VALUE AT 9/30/13 (000s)	VALUATION TECHNIQUES	UNOBSERVABLE INPUTS
Common Stock	$180	Market transaction and analysis	Discovery Price set at Halt

The significant unobservable input used in the fair value measurement of the common stock was market transaction and analysis. Significant increases (decreases) in discovery prices would result in a significantly higher (lower) fair value measurement.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 90.2%
Australia – 7.6%
DUET Group		6,951,411		$14,137
Macquarie Atlas Roads Group		2,000,000		4,572
Spark Infrastructure Group		8,156,880		12,633
Transurban Group		1,743,240		11,059
				42,401
Austria – 0.8%
Flughafen Wien A.G.		68,210		4,617
Bermuda – 1.0%
Teekay Corp.		131,300		5,613
Brazil – 1.8%
Alupar Investimento S.A. *		165,746		1,313
CCR S.A.		685,800		5,406
Cia de Saneamento Basico do Estado de Sao Paulo ADR *		314,300		3,130
				9,849
Canada – 6.9%
Canadian National Railway Co.		59,300		6,009
Enbridge, Inc.		304,200		12,705
Keyera Corp.		46,100		2,620
Pembina Pipeline Corp.		121,900		4,040
TransCanada Corp.		310,700		13,649
				39,023
China – 1.8%
Anhui Expressway Co. Ltd., Class H		1,157,000		626
COSCO Pacific Ltd.		2,141,900		3,273
ENN Energy Holdings Ltd.		407,400		2,263
Guangshen Railway Co. Ltd., Class H		2,809,100		1,472
Jiangsu Expressway Co. Ltd., Class H		828,500		977
Sichuan Expressway Co. Ltd., Class H		1,908,700		551
Zhejiang Expressway Co. Ltd., Class H		1,137,400		1,047
				10,209
France – 7.7%
Aeroports de Paris		123,766		12,955
Eutelsat Communications S.A.		128,100		4,051
SES S.A.		383,799		10,985
Vinci S.A.		262,813		15,282
				43,273
Germany – 4.5%
Fraport A.G. Frankfurt Airport Services Worldwide		358,698		25,185
Hong Kong – 2.1%
Beijing Enterprises Holdings Ltd.		763,000		5,505

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 90.2% – continued
Hong Kong – 2.1% – continued
Hong Kong & China Gas Co. Ltd.		2,727,570		$6,568
				12,073
Italy – 11.5%
ASTM S.p.A.		200,000		2,464
Atlantia S.p.A.		1,098,170		22,369
Hera S.p.A.		2,946,230		5,940
Snam S.p.A.		2,548,250		12,914
Societa Iniziative Autostradali e Servizi S.p.A.		996,335		9,812
Terna Rete Elettrica Nazionale S.p.A.		2,463,960		11,130
				64,629
Japan – 5.9%
Osaka Gas Co. Ltd.		2,919,000		12,458
Toho Gas Co. Ltd.		1,549,000		8,121
Tokyo Gas Co. Ltd.		2,288,000		12,577
				33,156
Mexico – 0.2%
Infraestructura Energetica Nova S.A.B. de C.V. *		309,900		1,198
South Korea – 0.6%
Macquarie Korea Infrastructure Fund		519,430		3,195
Spain – 4.6%
Abertis Infraestructuras S.A.		388,290		7,566
Enagas S.A.		113,751		2,796
Ferrovial S.A.		379,400		6,842
Red Electrica Corp. S.A.		151,964		8,675
				25,879
Switzerland – 3.0%
Flughafen Zuerich A.G. (Registered)		31,469		16,578
United Kingdom – 5.6%
National Grid PLC		1,060,500		12,546
Pennon Group PLC		990,790		11,220
Severn Trent PLC		133,300		3,806
United Utilities Group PLC		364,300		4,076
				31,648
United States – 24.6%
American Tower Corp.		200,300		14,848
California Water Service Group		282,030		5,731
Crown Castle International Corp. *		142,500		10,407
CSX Corp.		430,050		11,069
NiSource, Inc.		150,200		4,640
Norfolk Southern Corp.		150,350		11,630

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 90.2% – continued
United States – 24.6% – continued
Northeast Utilities		129,500		$5,342
ONEOK, Inc.		164,400		8,766
PG&E Corp.		259,360		10,613
SBA Communications Corp., Class A *		85,100		6,847
SemGroup Corp., Class A		95,300		5,434
Sempra Energy		103,700		8,877
SJW Corp.		89,380		2,504
Spectra Energy Corp.		352,300		12,059
Targa Resources Corp.		41,900		3,057
Union Pacific Corp.		50,000		7,767
Williams (The) Cos., Inc.		234,800		8,537
				138,128
Total Common Stocks (1)
(Cost $475,121)				506,654
MASTER LIMITED PARTNERSHIPS – 6.4%
United States – 6.4%
Access Midstream Partners L.P.		115,100		5,560
Energy Transfer Equity L.P.		82,200		5,407
Enterprise Products Partners L.P.		121,000		7,386
EQT Midstream Partners L.P.		70,400		3,466
EV Energy Partner L.P.		72,600		2,693
Inergy L.P.		239,000		3,291
Inergy Midstream L.P.		1		–
MarkWest Energy Partners L.P.		65,600		4,738
MPLX L.P.		74,300		2,708
Phillips 66 Partners L.P. *		20,500		631
				35,880
Total Master Limited Partnerships (1)
(Cost $28,774)				35,880
RIGHTS – 0 .1%
Spain – 0.1%
Abertis Infraestructuras S.A. *		569,472		554
Total Rights (1)
(Cost $458)				554
INVESTMENT COMPANIES – 2.6%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (2)(3)		14,753,432		14,753
Total Investment Companies
(Cost $14,753)				14,753

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.2%
U.S. Treasury Bill, 0.08%, 10/17/13 (4)		$760		$760
Total Short-Term Investments
(Cost $760)				760
Total Investments – 99.5%
(Cost $519,866)				558,601
Other Assets less Liabilities – 0.5%				3,000
NET ASSETS – 100.0%				$561,601

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $14,927,000 with net sales of approximately $174,000 during the six months ended September 30, 2013.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser to 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 September 30, 2013, 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		5		$419		Long		12/13		$3
Mini MSCI EAFE Index		4		363		Long		12/13		6
Total										$9

At September 30, 2013, the industry sectors for the Multi-Manager Global Listed Infrastructure Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		2.8%
Energy		19.1
Financials		3.3
Industrials		35.9
Telecommunication Services		3.2
Utilities		35.7
Total		100.0%

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, 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		33.7%
Euro		30.2
Australian Dollar		7.8
Canadian Dollar		7.2
Japanese Yen		6.1
British Pound		5.8
All other currencies less than 5%		9.2
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 September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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. The Following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$–		$15,036		$–		$15,036
Energy		34,701		33,014		–		67,715
Financials		14,848		3,195		–		18,043
Industrials		35,872		158,761		–		194,633
Telecommunication Services		17,254		–		–		17,254
Utilities		52,113		141,860		–		193,973
Master Limited Partnerships
Energy		35,880		–		–		35,880
Rights
Industrials		–		554		–		554
Investment Companies		14,753		–		–		14,753
Short-Term Investments		–		760		–		760
Total Investments		$205,421		$353,180		$–		$558,601
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$9		$–		$–		$9

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Energy		$33,014	Valuations at last trade with foreign fair value adjustments
Financials		3,195	Valuations at last trade with foreign fair value adjustments
Utilities		33,157	Valuations at last trade with foreign fair value adjustments
Total		$69,366

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.1%
Australia – 5.1%
BGP Holdings PLC – (Fractional Shares) *		3,277,404		$–
CFS Retail Property Trust Group		1,850,000		3,453
Dexus Property Group		3,163,062		2,968
Federation Centres Ltd.		1,105,300		2,352
Goodman Group		1,057,655		4,819
GPT Group		1,800,000		5,844
Investa Office Fund		270,150		744
Mirvac Group		3,036,581		4,930
Stockland		2,893,700		10,448
Westfield Group		488,512		5,018
Westfield Retail Trust		2,596,051		7,197
				47,773
Canada – 2.3%
Boardwalk Real Estate Investment Trust		34,300		1,918
Calloway Real Estate Investment Trust		63,000		1,489
Canadian Real Estate Investment Trust		18,700		737
RioCan Real Estate Investment Trust		753,152		17,768
				21,912
France – 5.2%
Fonciere Des Regions		14,454		1,199
Gecina S.A.		6,300		807
ICADE		163,724		14,959
Klepierre		177,775		7,711
Mercialys S.A.		39,570		793
Unibail-Rodamco S.E.		94,292		23,406
				48,875
Germany – 0.2%
LEG Immobilien A.G. *		31,400		1,809
Hong Kong – 12.3%
China Overseas Land & Investment Ltd.		4,716,700		13,880
China Resources Land Ltd.		2,333,000		6,625
Country Garden Holdings Co. Ltd.		2,302,663		1,477
Guangzhou R&F Properties Co. Ltd., Class H		1,600,000		2,505
Hang Lung Properties Ltd.		3,007,700		10,227
Hongkong Land Holdings Ltd.		2,329,870		15,382
Hysan Development Co. Ltd.		2,477,969		11,064
Kerry Properties Ltd.		2,420,000		10,339
Lifestyle International Holdings Ltd.		4,294,400		9,132
Link REIT (The)		933,295		4,575
New World Development Co. Ltd.		2,215,800		3,339
Shangri-La Asia Ltd.		3,908,333		6,478
Sino Land Co. Ltd.		1,080,940		1,590

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.1% – continued
Hong Kong – 12.3% – continued
Sun Hung Kai Properties Ltd.		770,987		$10,506
Swire Properties Ltd.		526,200		1,472
Wharf Holdings Ltd.		888,790		7,712
				116,303
Japan – 15.0%
Activia Properties, Inc.		185		1,607
Aeon Mall Co. Ltd.		480,500		14,286
Daiwa House Industry Co. Ltd.		777,100		14,571
Hulic Co. Ltd.		151,200		2,275
Japan Real Estate Investment Corp.		548		6,422
Japan Retail Fund Investment Corp.		2,846		5,857
Kenedix Realty Investment Corp.		231		1,139
Mitsubishi Estate Co. Ltd.		1,135,671		33,697
Mitsui Fudosan Co. Ltd.		1,074,184		36,307
Nippon Building Fund, Inc.		129		1,607
Nippon Prologis REIT, Inc.		97		972
Sumitomo Realty & Development Co. Ltd.		388,700		18,537
Tokyo Tatemono Co. Ltd.		247,000		2,275
United Urban Investment Corp.		1,604		2,449
				142,001
Netherlands – 0.5%
Corio N.V.		17,980		774
Eurocommercial Properties N.V. – CVA		95,734		3,872
				4,646
Singapore – 4.0%
Ascendas Real Estate Investment Trust		667,900		1,214
CapitaCommercial Trust		2,558,000		2,958
CapitaLand Ltd.		4,032,179		9,942
CapitaMall Trust		270,700		423
CapitaMalls Asia Ltd.		1,116,900		1,741
City Developments Ltd.		1,175,000		9,604
Global Logistic Properties Ltd.		1,970,100		4,542
Keppel Land Ltd.		2,200,000		6,213
Mapletree Greater China Commercial Trust *		1,693,800		1,209
				37,846
Spain – 0.8%
Melia Hotels International S.A.		717,900		7,139
Sweden – 0.9%
Castellum AB		533,489		7,612
Hufvudstaden AB, Class A		73,812		940
				8,552

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.1% – continued
Switzerland – 0.2%
PSP Swiss Property A.G. (Registered) *		26,703		$2,316
Thailand – 0.7%
Central Pattana PCL (Registered)		4,778,000		6,721
United Kingdom – 6.6%
British Land Co. PLC		365,536		3,422
Derwent London PLC		365,381		14,034
Great Portland Estates PLC		1,491,651		13,017
Hammerson PLC		1,462,906		11,866
Land Securities Group PLC		1,058,279		15,746
Safestore Holdings PLC		344,300		747
Shaftesbury PLC		370,000		3,535
				62,367
United States – 44.3%
Alexandria Real Estate Equities, Inc.		178,100		11,371
American Campus Communities, Inc.		269,900		9,217
American Homes 4 Rent, Class A *		234,800		3,792
AvalonBay Communities, Inc.		49,722		6,319
BioMed Realty Trust, Inc.		140,400		2,610
Boston Properties, Inc.		224,600		24,010
Brandywine Realty Trust		122,900		1,620
BRE Properties, Inc.		158,000		8,020
CommonWealth REIT		48,300		1,058
DDR Corp.		731,800		11,497
Douglas Emmett, Inc.		246,600		5,788
Duke Realty Corp.		261,200		4,033
Equity Residential		518,600		27,781
Essex Property Trust, Inc.		96,200		14,209
Federal Realty Investment Trust		103,500		10,500
General Growth Properties, Inc.		403,533		7,784
HCP, Inc.		100,100		4,099
Health Care REIT, Inc.		369,400		23,043
Healthcare Realty Trust, Inc.		63,200		1,461
Healthcare Trust of America, Inc., Class A		69,500		731
Highwoods Properties, Inc.		63,800		2,253
Host Hotels & Resorts, Inc.		1,304,412		23,049
Kilroy Realty Corp.		311,500		15,559
Kimco Realty Corp.		238,500		4,813
LaSalle Hotel Properties		99,400		2,835
Lexington Realty Trust		130,100		1,461
Liberty Property Trust		147,900		5,265
Macerich (The) Co.		234,921		13,259
Pebblebrook Hotel Trust		54,200		1,556
Plum Creek Timber Co., Inc.		120,000		5,620

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 98.1% – continued
United States – 44.3% – continued
Post Properties, Inc.		84,000		$3,782
Prologis, Inc.		755,365		28,417
Public Storage		37,200		5,972
Ramco-Gershenson Properties Trust		49,200		758
Senior Housing Properties Trust		115,300		2,691
Simon Property Group, Inc.		307,240		45,542
SL Green Realty Corp.		165,800		14,730
Starwood Hotels & Resorts Worldwide, Inc.		110,200		7,323
Strategic Hotels & Resorts, Inc. *		152,800		1,326
Sunstone Hotel Investors, Inc.		115,100		1,466
Tanger Factory Outlet Centers		46,540		1,520
Taubman Centers, Inc.		222,700		14,990
UDR, Inc.		237,722		5,634
Ventas, Inc.		236,839		14,566
Vornado Realty Trust		160,332		13,477
Weyerhaeuser Co.		53,000		1,517
				418,324
Total Common Stocks (1)
(Cost $764,277)				926,584
INVESTMENT COMPANIES – 1. 4%
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (2)(3)		13,023,883		13,024
Total Investment Companies
(Cost $13,024)				13,024
Total Investments – 99.5%
(Cost $777,301)				939,608
Other Assets less Liabilities – 0.5%				4,696
NET ASSETS – 100.0%				$944,304

(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, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $30,625,000 with net sales of approximately $17,601,000 during the six months ended September 30, 2013.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the industry sectors for the Multi-Manager Global Real Estate Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Department Stores		1.0%
Diversified Real Estate Activities		18.0
Diversified REITs		10.3
Hotels, Resorts & Cruise Lines		2.3
Industrial REITs		3.8
Office REITs		12.7
Real Estate Development		3.5
Real Estate Operating Companies		7.6
Residential REITs		8.7
Retail REITs		22.4
Specialized REITs		9.7
Total		100.0%

At September 30, 2013, 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		46.8%
Japanese Yen		15.3
Hong Kong Dollar		10.9
Euro		6.7
British Pound		6.7
Australian Dollar		5.2
All other currencies less than 5%		8.4
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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$7,323		$22,749		$–		$30,072
Financials		411,002		485,510		–		896,512
Investment Companies		13,024		–		–		13,024
Total Investments		$431,349		$508,259		$–		$939,608

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, 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
Financials		$160,666	Valuations at last trade with foreign fair value adjustments

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.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1%
Australia – 1.7%
Australia & New Zealand Banking Group Ltd.		412,945		$11,867
BHP Billiton Ltd. ADR		130,573		8,683
carsales.com Ltd.		103,480		1,106
CSL Ltd.		81,377		4,855
DuluxGroup Ltd.		267,545		1,318
FlexiGroup Ltd.		225,979		915
Incitec Pivot Ltd.		1,866,502		4,692
REA Group Ltd.		30,701		1,083
Super Retail Group Ltd.		61,359		743
Telstra Corp. Ltd.		2,204,822		10,225
				45,487
Austria – 1.1%
Conwert Immobilien Invest S.E. *		370,180		4,357
Erste Group Bank A.G.		388,810		12,289
Schoeller-Bleckmann Oilfield Equipment A.G.		106,269		12,573
				29,219
Belgium – 0.6%
Anheuser-Busch InBev N.V.		121,145		12,041
Colruyt S.A.		70,502		3,914
				15,955
Bermuda – 0.4%
Everest Re Group Ltd.		83,459		12,136
Brazil – 2.1%
Banco Bradesco S.A. ADR *		1,282,859		17,806
Banco do Brasil S.A. *		578,800		6,738
BB Seguridade Participacoes S.A.		376,600		3,715
CCR S.A.		199,200		1,570
Cia de Saneamento Basico do Estado de Sao Paulo ADR *		1,346,900		13,415
Kroton Educacional S.A.		143,200		2,039
Linx S.A.		55,600		934
Mills Estruturas e Servicos de Engenharia S.A. *		58,000		796
Natura Cosmeticos S.A.		31,100		698
Vale S.A. ADR		559,400		8,732
				56,443
Canada – 3.5%
Agrium, Inc.		105,314		8,850
Barrick Gold Corp.		127,423		2,373
Canadian National Railway Co.		78,893		7,997
Canadian Natural Resources Ltd.		169,900		5,339

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
Canada – 3.5% – continued
Canadian Pacific Railway Ltd.		27,577		$3,400
Cenovus Energy, Inc.		52,129		1,556
CI Financial Corp.		101,839		3,079
Encana Corp.		168,289		2,908
Kinross Gold Corp.		464,810		2,342
Lundin Mining Corp. *		231,795		1,019
Magna International, Inc.		79,500		6,564
Manulife Financial Corp.		723,800		11,986
Metro, Inc.		24,745		1,548
Potash Corp. of Saskatchewan, Inc.		47,294		1,479
Potash Corp. of Saskatchewan, Inc. (New York Exchange)		100,138		3,132
Rogers Communications, Inc., Class B		115,765		4,979
Talisman Energy, Inc.		613,250		7,037
Toronto-Dominion Bank (The)		142,200		12,795
Westjet Airlines Ltd.		62,387		1,499
Yamana Gold, Inc.		663,390		6,899
				96,781
Chile – 0.1%
Forus S.A.		28,892		161
Parque Arauco S.A.		574,111		1,103
Sonda S.A.		374,447		993
				2,257
China – 3.5%
AAC Technologies Holdings, Inc.		402,000		1,834
Anhui Conch Cement Co. Ltd., Class H		2,019,200		6,496
China Construction Bank Corp., Class H		14,639,200		11,290
China Merchants Bank Co. Ltd., Class H		2,061,754		3,744
China Oilfield Services Ltd., Class H		4,387,700		10,990
China Petroleum & Chemical Corp., Class H		14,881,100		11,635
China Shipping Container Lines Co. Ltd., Class H *		16,638,000		4,363
CNOOC Ltd.		2,552,000		5,158
Great Wall Motor Co. Ltd., Class H		604,500		3,273
Haitian International Holdings Ltd.		292,000		667
Hollysys Automation Technologies Ltd. *		64,559		965
Industrial & Commercial Bank of China Ltd., Class H		6,556,000		4,582
Mindray Medical International Ltd. ADR		205,955		8,010
Minth Group Ltd.		544,000		1,085
NetEase, Inc. ADR		7,762		564
PetroChina Co. Ltd., Class H		3,176,000		3,498
Qihoo 360 Technology Co. Ltd. ADR *		15,931		1,325

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
China – 3.5% – continued
Tencent Holdings Ltd.		138,300		$7,264
Weichai Power Co. Ltd., Class H		2,132,000		8,318
WuXi PharmaTech Cayman, Inc. ADR *		37,436		1,026
				96,087
Colombia – 0.2%
Bancolombia S.A. ADR		117,111		6,739
Czech Republic – 0.2%
Komercni Banka A.S.		24,230		5,395
Denmark – 1.0%
Carlsberg A/S, Class B		115,000		11,846
GN Store Nord A/S		169,378		3,563
Novo Nordisk A/S, Class B		65,808		11,156
SimCorp A/S *		44,205		1,489
				28,054
Finland – 0.3%
Nokian Renkaat OYJ		15,257		775
Sampo OYJ, Class A		166,775		7,167
				7,942
France – 7.4%
Accor S.A.		126,923		5,280
Air Liquide S.A.		26,818		3,736
AXA S.A.		1,216,073		28,222
BNP Paribas S.A.		175,138		11,854
Cap Gemini S.A.		158,186		9,415
Carrefour S.A.		193,254		6,623
Cie de St-Gobain		217,447		10,773
Danone S.A.		228,968		17,240
Essilor International S.A.		49,504		5,326
Eurofins Scientific		5,903		1,488
Hermes International		6,995		2,519
JCDecaux S.A.		97,206		3,584
Legrand S.A.		105,470		5,859
L’Oreal S.A.		70,088		12,041
LVMH Moet Hennessy Louis Vuitton S.A.		8,592		1,693
Orange S.A.		535,703		6,720
Pernod Ricard S.A.		67,717		8,414
Publicis Groupe S.A.		77,201		6,145
Sanofi		131,023		13,287
Schneider Electric S.A.		124,358		10,522
Societe Generale S.A.		148,018		7,382
Total S.A.		69,066		4,014
Unibail-Rodamco S.E.		62,471		15,507

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
France – 7.4% – continued
Vinci S.A.		41,005		$2,384
Zodiac Aerospace		10,983		1,749
				201,777
Germany – 6.1%
Adidas A.G.		46,490		5,049
Allianz S.E. (Registered)		112,866		17,743
BASF S.E.		54,391		5,222
Bayer A.G. (Registered)		36,206		4,269
Bayerische Motoren Werke A.G.		110,588		11,889
Bertrandt A.G.		8,783		1,106
Brenntag A.G.		17,115		2,850
Continental A.G.		20,422		3,461
Daimler A.G. (Registered)		220,318		17,173
Deutsche Boerse A.G.		329,923		24,826
Deutsche Wohnen A.G. (Bearer)		147,866		2,647
E.ON S.E.		235,390		4,187
Fresenius Medical Care A.G. & Co. KGaA		50,258		3,269
Fresenius S.E. & Co. KGaA		32,170		3,996
Infineon Technologies A.G.		343,765		3,439
Linde A.G.		55,260		10,951
OSRAM Licht A.G. *		26,763		1,257
ProSiebenSat.1 Media A.G. (Registered)		102,310		4,343
SAP A.G.		136,461		10,086
Siemens A.G. (Registered)		176,427		21,270
Symrise A.G.		114,875		5,092
Wincor Nixdorf A.G.		26,225		1,638
Wirecard A.G.		30,721		1,051
				166,814
Hong Kong – 2.1%
Cheung Kong Holdings Ltd.		783,085		11,942
China High Precision Automation Group Ltd. (1)		982,000		157
China Overseas Grand Oceans Group Ltd.		934,000		1,138
China Overseas Land & Investment Ltd.		1,986,000		5,844
Daphne International Holdings Ltd.		5,830,000		3,546
Haier Electronics Group Co. Ltd.		600,000		1,164
Hang Lung Properties Ltd.		549,000		1,867
Hang Seng Bank Ltd.		347,300		5,668
Hutchison Telecommunications Hong Kong Holdings Ltd.		2,099,000		910
Orient Overseas International Ltd.		1,683,900		9,883
SA SA International Holdings Ltd.		1,680,000		1,894
Sino Biopharmaceutical		2,876,000		1,950

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
Hong Kong – 2.1% – continued
SmarTone Telecommunications Holdings Ltd.		292,500		$388
Techtronic Industries Co.		1,064,000		2,778
Value Partners Group Ltd.		819,000		496
Wharf Holdings Ltd.		811,000		7,037
				56,662
India – 1.2%
HDFC Bank Ltd. ADR		48,692		1,499
ICICI Bank Ltd. ADR		491,933		14,994
Infosys Ltd. ADR		80,455		3,870
Tata Motors Ltd. ADR		314,613		8,375
WNS Holdings Ltd. ADR *		129,728		2,753
				31,491
Indonesia – 0.1%
Indofood Sukses Makmur Tbk PT		6,559,500		4,003
Ireland – 1.8%
Covidien PLC		127,630		7,778
CRH PLC		319,043		7,638
Experian PLC		206,310		3,929
ICON PLC *		309,605		12,672
Shire PLC		402,487		16,116
				48,133
Israel – 0.8%
Israel Chemicals Ltd.		726,000		6,128
Teva Pharmaceutical Industries Ltd. ADR		418,967		15,829
				21,957
Italy – 0.8%
Autogrill S.p.A. *		63,165		1,111
Azimut Holding S.p.A.		107,818		2,465
Banca Generali S.p.A.		70,131		1,588
Brembo S.p.A.		30,379		792
Intesa Sanpaolo S.p.A.		7,527,353		15,552
Tod’s S.p.A.		8,903		1,669
				23,177
Japan – 14.0%
Amada Co. Ltd.		534,403		4,835
Astellas Pharma, Inc.		63,400		3,241
Bank of Yokohama (The) Ltd.		1,824,628		10,448
Century Tokyo Leasing Corp.		42,100		1,326
Daikin Industries Ltd.		88,200		4,688
Daiwa Securities Group, Inc.		259,000		2,337
Denso Corp.		449,800		21,074

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
Japan – 14.0% – continued
Dentsu, Inc.		87,700		$3,350
FamilyMart Co. Ltd.		46,400		2,011
FANUC Corp.		66,120		10,934
Fuji Heavy Industries Ltd.		461,000		12,824
Hitachi Ltd.		2,983,400		19,754
Inpex Corp.		384,000		4,539
Isuzu Motors Ltd.		1,839,200		12,193
ITOCHU Corp.		560,900		6,891
Japan Exchange Group, Inc.		235,875		5,246
Japan Tobacco, Inc.		287,003		10,363
KDDI Corp.		266,600		13,723
Keyence Corp.		9,800		3,733
Komatsu Ltd.		390,700		9,753
Kyowa Hakko Kirin Co. Ltd.		378,908		3,902
Lawson, Inc.		47,600		3,736
Makita Corp.		88,700		5,161
MISUMI Group, Inc.		38,300		1,111
Mitsubishi Corp.		465,882		9,450
Mitsubishi Estate Co. Ltd.		9,000		267
Mitsui & Co. Ltd.		782,700		11,404
Mizuho Financial Group, Inc.		5,347,200		11,639
MS&AD Insurance Group Holdings		271,063		7,103
Nexon Co. Ltd.		119,400		1,460
Nihon Kohden Corp.		24,300		996
Nintendo Co. Ltd.		34,690		3,942
Nippon Steel & Sumitomo Metal Corp.		2,651,900		9,040
Nitto Denko Corp.		254,200		16,654
NKSJ Holdings, Inc.		260,745		6,728
ORIX Corp.		666,400		10,907
Otsuka Corp.		8,000		1,022
Park24 Co. Ltd.		54,800		976
Sawai Pharmaceutical Co. Ltd.		14,600		1,027
Secom Co. Ltd.		247,300		15,521
Sega Sammy Holdings, Inc.		222,000		6,431
Shin-Etsu Chemical Co. Ltd.		50,400		3,094
Ship Healthcare Holdings, Inc.		32,600		1,273
SMC Corp.		69,410		16,569
Sugi Holdings Co. Ltd.		83,628		3,590
Sumitomo Mitsui Financial Group, Inc.		313,900		15,239
Sumitomo Mitsui Trust Holdings, Inc.		1,921,460		9,543
Sundrug Co. Ltd.		32,700		1,635
Suruga Bank Ltd.		169,000		2,917
Suzuki Motor Corp.		387,285		9,303
THK Co. Ltd.		264,316		5,884

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
Japan – 14.0% – continued
Toyota Motor Corp.		199,600		$12,801
TS Tech Co. Ltd.		26,700		1,055
Tsuruha Holdings, Inc.		11,500		1,015
United Arrows Ltd.		24,700		1,043
Yahoo Japan Corp.		1,412,700		8,044
				384,745
Kenya – 0.0%
Equity Bank Ltd.		873,900		344
Kenya Commercial Bank Ltd.		1,169,300		629
				973
Malaysia – 0.3%
Genting Bhd.		1,495,200		4,773
Sime Darby Bhd.		1,437,000		4,180
				8,953
Mexico – 0.3%
Banregio Grupo Financiero S.A.B. de C.V.		263,700		1,501
Grupo Televisa S.A.B. ADR		225,278		6,296
				7,797
Netherlands – 2.9%
Core Laboratories N.V.		126,534		21,411
Heineken N.V.		238,503		16,889
Reed Elsevier N.V.		601,700		12,093
Royal Dutch Shell PLC, Class A		853,880		28,168
Yandex N.V., Class A *		39,361		1,434
				79,995
New Zealand – 0.0%
Ryman Healthcare Ltd.		188,675		1,088
Nigeria – 0.1%
Guaranty Trust Bank PLC		8,638,283		1,344
Norway – 2.2%
Algeta ASA *		20,058		775
DNB ASA		811,704		12,329
Fred Olsen Energy ASA		40,356		1,793
Norsk Hydro ASA		1,976,033		8,195
Prosafe S.E.		97,475		778
Statoil ASA		512,500		11,642
Statoil ASA ADR		372,213		8,442
Telenor ASA		634,599		14,504
TGS Nopec Geophysical Co. ASA		93,611		2,761
				61,219

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
Poland – 0.0%
Eurocash S.A.		74,183		$1,143
Russia – 0.3%
Mail.ru Group Ltd. GDR (Registered)		23,256		889
Sberbank of Russia ADR		588,105		5,932
				6,821
Singapore – 1.6%
Biosensors International Group Ltd.		4,211,939		3,242
DBS Group Holdings Ltd.		178,690		2,340
Golden Agri-Resources Ltd.		35,944,982		14,910
Singapore Technologies Engineering Ltd.		1,318,000		4,384
StarHub Ltd.		442,000		1,512
United Overseas Bank Ltd.		1,091,300		17,995
				44,383
South Africa – 1.1%
Bidvest Group Ltd.		117,239		2,938
Coronation Fund Managers Ltd.		112,523		769
FirstRand Ltd.		967,752		3,228
MTN Group Ltd.		192,400		3,755
Naspers Ltd., Class N		26,025		2,401
Sasol Ltd. ADR		374,100		17,878
				30,969
South Korea – 2.0%
GS Home Shopping, Inc.		4,722		1,091
Halla Visteon Climate Control Corp.		15,680		595
Hyundai Mobis Co. Ltd.		33,949		9,040
NAVER Corp.		5,500		2,853
POSCO		24,809		7,346
POSCO ADR		82,600		6,083
Samsung Electronics Co. Ltd.		7,897		9,998
SK Telecom Co. Ltd.		16,987		3,465
SK Telecom Co. Ltd. ADR		573,900		13,027
				53,498
Spain – 1.6%
Amadeus IT Holding S.A., Class A		340,983		12,101
Banco Bilbao Vizcaya Argentaria S.A.		1,295,828		14,558
Banco Santander S.A.		871,258		7,142
Bankinter S.A.		149,278		809
Inditex S.A.		15,464		2,389
Repsol S.A.		281,654		7,006
				44,005
Sweden – 2.7%
Atlas Copco AB, Class A		660,136		19,339

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
Sweden – 2.7% – continued
Getinge AB, Class B		418,640		$14,965
Hexpol AB		27,170		1,920
Intrum Justitia AB		35,905		961
Investor AB, Class B		236,540		7,177
JM AB		17,645		514
Sandvik AB		414,098		5,724
Svenska Cellulosa AB S.C.A., Class B		254,100		6,412
Telefonaktiebolaget LM Ericsson, Class B		609,109		8,113
Volvo AB, Class B		573,652		8,594
				73,719
Switzerland – 8.1%
ABB Ltd. (Registered) *		288,317		6,811
Burckhardt Compression Holding A.G.		2,282		899
Cie Financiere Richemont S.A. (Registered)		105,257		10,519
Credit Suisse Group A.G. (Registered) *		432,017		13,238
Credit Suisse Group A.G. ADR *		241,600		7,381
Foster Wheeler A.G. *		175,905		4,633
Geberit A.G. (Registered) *		9,173		2,478
Holcim Ltd. (Registered) *		101,320		7,543
Nestle S.A. (Registered)		287,101		20,109
Noble Corp.		210,420		7,948
Novartis A.G. (Registered)		302,820		23,276
Novartis A.G. ADR		140,588		10,784
Partners Group Holding A.G.		14,138		3,464
Roche Holding A.G. (Genusschein)		202,566		54,644
Syngenta A.G. (Registered)		19,112		7,808
Transocean Ltd.		174,994		7,787
UBS A.G. (Registered) *		783,354		16,026
Zurich Insurance Group A.G. *		69,400		17,874
				223,222
Taiwan – 1.1%
Advanced Semiconductor Engineering, Inc.		9,980,415		9,642
Eclat Textile Co. Ltd.		181,360		1,594
St. Shine Optical Co. Ltd.		36,389		1,002
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		1,046,144		17,743
				29,981
Thailand – 0.1%
Kasikornbank PCL (Registered)		276,000		1,562
Turkey – 0.8%
Akbank T.A.S.		2,130,549		7,854
KOC Holding A.S. ADR		260,400		6,062

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
Turkey – 0.8% – continued
Turkiye Garanti Bankasi A.S.		2,253,985		$8,888
				22,804
United Arab Emirates – 0.1%
Dragon Oil PLC		196,859		1,855
United Kingdom – 17.9%
Abcam PLC		166,873		1,367
Aberdeen Asset Management PLC		178,710		1,096
Amlin PLC		389,340		2,556
Anglo American PLC		267,061		6,567
Antofagasta PLC		128,360		1,704
ARM Holdings PLC		87,451		1,400
ARM Holdings PLC ADR		454,931		21,891
Ashmore Group PLC		210,715		1,334
Ashtead Group PLC		244,583		2,442
AstraZeneca PLC		345,000		17,930
Aveva Group PLC		22,764		958
AZ Electronic Materials S.A.		188,376		901
Babcock International Group PLC		309,359		5,988
BAE Systems PLC		1,755,700		12,910
Barclays PLC		1,253,100		5,391
Berendsen PLC		67,565		994
Berkeley Group Holdings PLC		143,686		4,827
BG Group PLC		634,858		12,136
BHP Billiton PLC		18,425		543
Big Yellow Group PLC		155,419		1,107
BP PLC ADR		118,444		4,978
British American Tobacco PLC		142,568		7,565
BT Group PLC		1,550,064		8,589
BTG PLC *		121,649		755
Bunzl PLC		195,632		4,236
Capita PLC		351,706		5,669
Compass Group PLC		485,534		6,675
Countrywide PLC		111,094		945
Daily Mail & General Trust PLC, Class A		315,395		3,892
Derwent London PLC		36,738		1,411
Diageo PLC		1,520,670		48,322
Dunelm Group PLC		133,166		1,995
easyJet PLC		199,659		4,124
Elementis PLC		359,683		1,396
Ensco PLC, Class A		97,500		5,241
GlaxoSmithKline PLC		714,598		17,960
Glencore Xstrata PLC *		3,113,414		16,983
Halma PLC		223,715		2,052
Hargreaves Lansdown PLC		78,228		1,240

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
United Kingdom – 17.9% – continued
Hiscox Ltd.		180,115		$1,893
Howden Joinery Group PLC		356,365		1,681
HSBC Holdings PLC		1,665,646		18,051
IG Group Holdings PLC		209,688		1,966
IMI PLC		220,962		5,207
Imperial Tobacco Group PLC		320,900		11,889
InterContinental Hotels Group PLC		219,633		6,419
International Personal Finance PLC		43,639		431
ITV PLC		3,103,972		8,812
John Wood Group PLC		101,422		1,318
Jupiter Fund Management PLC		279,977		1,664
Keller Group PLC		60,560		1,019
Lancashire Holdings Ltd.		177,201		2,205
Lloyds Banking Group PLC *		15,474,078		18,462
Marks & Spencer Group PLC		742,200		5,969
Meggitt PLC		478,924		4,255
Moneysupermarket.com Group PLC		400,479		982
Nanoco Group PLC *		127,848		354
Next PLC		40,621		3,396
Pearson PLC		228,507		4,651
Provident Financial PLC		68,376		1,840
Prudential PLC		714,237		13,315
Reckitt Benckiser Group PLC		114,239		8,359
Restaurant Group (The) PLC		71,101		613
Rightmove PLC		52,015		1,997
Rio Tinto PLC		241,400		11,822
Rio Tinto PLC ADR		188,455		9,189
Rolls-Royce Holdings PLC *		1,011,395		18,227
Rotork PLC		46,697		2,062
Sage Group (The) PLC		1,134,369		6,055
Senior PLC		167,243		733
St. James’s Place PLC		223,933		2,231
Standard Chartered PLC		337,665		8,099
Subsea 7 S.A.		448,806		9,328
Tesco PLC		1,991,000		11,575
Tullow Oil PLC		390,586		6,480
Unilever PLC		139,691		5,395
Vodafone Group PLC ADR		194,626		6,847
William Hill PLC		467,759		3,047
Willis Group Holdings PLC		250,815		10,868
WPP PLC		206,512		4,251
				491,027
United States – 1.9%
Aon PLC		59,707		4,444

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 94.1% – continued
United States – 1.9% – continued
Axis Capital Holdings Ltd.		277,000		$11,997
Carnival Corp.		230,171		7,513
Freeport-McMoRan Copper & Gold, Inc.		289,953		9,592
MGM China Holdings Ltd.		313,600		1,044
Philip Morris International, Inc.		75,520		6,539
RenaissanceRe Holdings Ltd.		62,900		5,694
Schlumberger Ltd.		71,500		6,318
				53,141
Total Common Stocks (2)
(Cost $2,202,972)				2,580,753
PREFERRED STOCKS – 1.5%
Brazil – 0.9%
Banco Bradesco S.A. *		432,950		5,988
Cia de Bebidas das Americas ADR		142,224		5,454
Cia Paranaense de Energia ADR		541,000		7,552
Itau Unibanco Holding S.A. ADR		360,359		5,088
				24,082
Germany – 0.6%
Henkel A.G. & Co. KGaA		56,368		5,808
Volkswagen A.G.		53,500		12,611
				18,419
Total Preferred Stocks (2)
(Cost $44,233)				42,501
RIGHTS – 0.0%
Spain – 0.0%
Banco Bilbao Vizcaya Argentaria S.A. *		1,274,411		174
United Kingdom – 0.0%
Barclays PLC *		313,275		409
Total Rights (2)
(Cost $505)				583
INVESTMENT COMPANIES – 4.5%
iShares MSCI United Kingdom ETF		228,879		4,491
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (3)(4)		118,555,985		118,556
Total Investment Companies (2)
(Cost $122,460)				123,047

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.2%
U.S. Treasury Bill, 0.07%, 10/17/13 (5)		$4,350		$4,350
Total Short-Term Investments
(Cost $4,350)				4,350
Total Investments – 100.3%
(Cost $2,374,520)				2,751,234
Liabilities less Other Assets – (0.3)%				(7,495	)
NET ASSETS – 100.0%				$2,743,739

(1) Level 3 asset that is worthless, bankrupt or has been delisted.

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

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

(4) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $84,920,000 with net purchases of approximately $33,636,000 during the six months ended September 30, 2013.

(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 September 30, 2013, 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		409		$37,121		Long		12/13		$144

At September 30, 2013, the industry sectors for the Multi-Manager International Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.7%
Consumer Staples		10.3
Energy		8.8
Financials		26.1
Health Care		10.4
Industrials		12.9
Information Technology		7.0
Materials		8.4
Telecommunication Services		3.4
Utilities		1.0
Total		100.0%

At September 30, 2013, the Multi-Manager International Equity Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		21.2%
Euro		20.7
British Pound		16.2
Japanese Yen		14.6
Swiss Franc		6.6
Hong Kong Dollar		5.3
All other currencies less than 5%		15.4
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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on September 30, 2013 using adjustment factors designed to reflect more accurately the fair value of the securities. See Note 2 for a discussion of this procedure. 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).

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks
Consumer Discretionary		$30,947		$265,399		$ –		$296,346
Consumer Staples		7,237		252,588		–		259,825
Energy		80,002		152,513		–		232,515
Financials		138,672		531,625		–		670,297
Health Care		56,098		216,718		–		272,816
Industrials		24,460		313,781		–		338,241
Information Technology		52,473		130,674		157		183,304
Materials		63,532		157,630		–		221,162
Telecommunication Services		24,854		63,791		–		88,645
Utilities		13,415		4,187		–		17,602
Preferred Stocks
Consumer Discretionary		–		12,611		–		12,611
Consumer Staples		5,454		5,808		–		11,262
Financials		11,076		–		–		11,076
Utilities		7,552		–		–		7,552
Rights
Financials		–		583		–		583
Investment Companies		123,047		–		–		123,047
Short-Term Investments		–		4,350		–		4,350
Total Investments		$638,819		$2,112,258		$157		$2,751,234
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$144		$ –		$ –		$144

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, the Fund had transfers from Level 1 to Level 2 as dislcosed below:

Transfers from Level 1 to Level 2
Industry	Value (000s)		Reason
Common Stocks
Consumer Discretionary		$79,434	Valuations at last trade with foreign fair value adjustments
Consumer Staples		23,897	Valuations at last trade with foreign fair value adjustments
Energy		21,380	Valuations at last trade with foreign fair value adjustments
Financials		101,152	Valuations at last trade with foreign fair value adjustments
Health Care		4,513	Valuations at last trade with foreign fair value adjustments
Industrials		106,247	Valuations at last trade with foreign fair value adjustments
Information Technology		56,573	Valuations at last trade with foreign fair value adjustments
Materials		40,975	Valuations at last trade with foreign fair value adjustments
Telecommunication Services		13,723	Valuations at last trade with foreign fair value adjustments
Total		$447,894

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 3/31/13 (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 9/30/13 (000s)

Common Stock

Information Technology

$

157

$

–

$

–

$

–

*

$

–

$

–

$

–

$

–

$

–

$

157

* Amount rounds to less than one thousand.

The Fund valued the securities included in the balance as of 9/30/13 above using prices provided by NTGI PVC. The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at September 30, 2013 was less than $500, which is included in the Statement of Operations as part of net change in unrealized appreciation (depreciation) on investments.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	FAIR VALUE AT 9/30/13 (000s)		VALUATION TECHNIQUES	UNOBSERVABLE INPUTS
Common Stock		$157	Market Transaction and Analysis	Discovery price set at halt

The significant unobservable input used in the fair value measurement of the common stock was market transaction and analysis. Significant increases (decreases) in discovery prices would result in a significantly higher (lower) fair value measurement.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1%
Aerospace/Defense – 3.2%
Boeing (The) Co.		35,403		$4,160
Northrop Grumman Corp.		58,800		5,601
Raytheon Co.		103,200		7,954
Rolls-Royce Holdings PLC ADR		13,445		1,228
United Technologies Corp.		33,572		3,620
				22,563
Agriculture – 1.0%
Archer-Daniels-Midland Co.		152,700		5,625
Philip Morris International, Inc.		16,200		1,403
				7,028
Apparel – 2.5%
Michael Kors Holdings Ltd. *		23,800		1,773
NIKE, Inc., Class B		170,718		12,401
Ralph Lauren Corp.		16,031		2,641
Under Armour, Inc., Class A *		11,214		891
				17,706
Auto Manufacturers – 1.1%
General Motors Co. *		145,700		5,241
PACCAR, Inc.		46,500		2,588
				7,829
Auto Parts & Equipment – 0.8%
Johnson Controls, Inc.		130,600		5,420
Banks – 3.9%
Bank of New York Mellon (The) Corp.		177,000		5,344
Capital One Financial Corp.		41,500		2,853
Citigroup, Inc.		114,490		5,554
Goldman Sachs Group (The), Inc.		36,063		5,705
JPMorgan Chase & Co.		50,900		2,631
Morgan Stanley		99,781		2,689
Wells Fargo & Co.		72,800		3,008
				27,784
Beverages – 0.4%
Diageo PLC ADR		18,884		2,400
Monster Beverage Corp. *		11,953		624
				3,024
Biotechnology – 4.5%
Alexion Pharmaceuticals, Inc. *		30,657		3,561
Amgen, Inc.		32,108		3,594
Biogen Idec, Inc. *		34,420		8,287
Celgene Corp. *		25,167		3,874
Foundation Medicine, Inc. *		361		14

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Biotechnology – 4.5% – continued
Gilead Sciences, Inc. *		132,334		$8,316
Illumina, Inc. *		9,000		728
Vertex Pharmaceuticals, Inc. *		46,824		3,550
				31,924
Chemicals – 1.7%
E.I. du Pont de Nemours & Co.		93,800		5,493
Monsanto Co.		53,879		5,623
Mosaic (The) Co.		25,500		1,097
				12,213
Commercial Services – 1.2%
Mastercard, Inc., Class A		12,412		8,351
Computers – 3.8%
Apple, Inc.		19,930		9,502
EMC Corp.		373,011		9,534
International Business Machines Corp.		38,806		7,186
NCR Corp. *		9,093		360
				26,582
Cosmetics/Personal Care – 1.5%
Estee Lauder (The) Cos., Inc., Class A		153,855		10,754
Diversified Financial Services – 0.7%
Visa, Inc., Class A		24,796		4,738
Electric – 1.1%
Edison International		119,400		5,500
NRG Energy, Inc.		74,500		2,036
				7,536
Environmental Control – 0.8%
Waste Management, Inc.		132,100		5,448
Food – 4.6%
Kraft Foods Group, Inc.		103,200		5,412
Mondelez International, Inc., Class A		505,210		15,874
Sprouts Farmers Market, Inc. *		3,134		139
Whole Foods Market, Inc.		195,511		11,437
				32,862
Healthcare - Products – 0.8%
Baxter International, Inc.		76,800		5,045
Essilor International S.A. ADR		9,428		508
				5,553
Healthcare - Services – 1.1%
Quest Diagnostics, Inc.		89,900		5,555

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Healthcare - Services – 1.1% – continued
UnitedHealth Group, Inc.		32,202		$2,306
				7,861
Insurance – 6.3%
Allstate (The) Corp.		109,500		5,535
American International Group, Inc.		119,100		5,792
Aon PLC		58,000		4,318
Hartford Financial Services Group, Inc.		191,700		5,966
Loews Corp.		64,000		2,991
Marsh & McLennan Cos., Inc.		126,000		5,487
MetLife, Inc.		96,400		4,526
Travelers (The) Cos., Inc.		64,800		5,493
Unum Group		159,000		4,840
				44,948
Internet – 5.2%
Amazon.com, Inc. *		23,615		7,383
eBay, Inc. *		52,118		2,908
Facebook, Inc., Class A *		77,802		3,909
Google, Inc., Class A *		9,326		8,169
LinkedIn Corp., Class A *		19,771		4,865
Netflix, Inc. *		7,685		2,376
priceline.com, Inc. *		5,621		5,682
Rackspace Hosting, Inc. *		28,323		1,494
Youku Tudou, Inc. ADR *		10,604		291
				37,077
Media – 3.0%
Discovery Communications, Inc., Class A *		30,944		2,612
Time Warner, Inc.		56,200		3,699
Viacom, Inc., Class B		50,000		4,179
Walt Disney (The) Co.		169,241		10,914
				21,404
Metal Fabrication/Hardware – 0.6%
Precision Castparts Corp.		18,579		4,222
Mining – 0.6%
AngloGold Ashanti Ltd. ADR		185,000		2,457
Barrick Gold Corp.		83,500		1,555
				4,012
Miscellaneous Manufacturing – 0.3%
Ingersoll-Rand PLC		37,000		2,403
Office/Business Equipment – 0.8%
Xerox Corp.		551,500		5,675

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Oil & Gas – 6.8%
Apache Corp.		69,800		$5,943
Canadian Natural Resources Ltd.		184,300		5,794
Chevron Corp.		44,800		5,443
Concho Resources, Inc. *		25,261		2,749
ConocoPhillips		78,500		5,457
EOG Resources, Inc.		16,913		2,863
Marathon Oil Corp.		154,400		5,385
Occidental Petroleum Corp.		93,800		8,774
Talisman Energy, Inc.		510,100		5,866
				48,274
Oil & Gas Services – 1.8%
Baker Hughes, Inc.		37,400		1,836
FMC Technologies, Inc. *		40,236		2,230
Halliburton Co.		113,000		5,441
Schlumberger Ltd.		37,540		3,317
				12,824
Pharmaceuticals – 9.6%
Abbott Laboratories		79,591		2,642
Allergan, Inc.		35,013		3,167
Bristol-Myers Squibb Co.		69,203		3,203
Cardinal Health, Inc.		104,300		5,439
Express Scripts Holding Co. *		181,760		11,229
Johnson & Johnson		144,916		12,563
Merck & Co., Inc.		115,700		5,508
Novo Nordisk A/S ADR		21,672		3,667
Perrigo Co.		16,791		2,072
Pfizer, Inc.		364,665		10,469
Sanofi ADR		87,200		4,415
Teva Pharmaceutical Industries Ltd. ADR		105,000		3,967
				68,341
Pipelines – 0.2%
Enbridge, Inc.		26,934		1,124
Real Estate Investment Trusts – 0.3%
American Tower Corp.		30,148		2,235
Retail – 10.3%
Chipotle Mexican Grill, Inc. *		5,502		2,359
Coach, Inc.		135,925		7,412
Costco Wholesale Corp.		101,976		11,740
CVS Caremark Corp.		270,084		15,327
Dunkin’ Brands Group, Inc.		58,997		2,670
Inditex S.A. ADR		150,132		4,632
Lowe’s Cos., Inc.		116,700		5,556

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Retail – 10.3% – continued
Nordstrom, Inc.		130,985		$7,361
Starbucks Corp.		36,006		2,771
Swatch Group (The) A.G. ADR		34,310		1,102
Target Corp.		115,308		7,377
TJX Cos., Inc.		88,267		4,977
				73,284
Semiconductors – 3.2%
Applied Materials, Inc.		100,000		1,754
ARM Holdings PLC ADR		59,802		2,878
Broadcom Corp., Class A		203,900		5,304
Intel Corp.		234,300		5,370
QUALCOMM, Inc.		107,324		7,229
				22,535
Software – 5.7%
Adobe Systems, Inc. *		142,682		7,411
CA, Inc.		161,855		4,801
FireEye, Inc. *		9,004		374
Microsoft Corp.		156,300		5,206
Oracle Corp.		260,231		8,632
Red Hat, Inc. *		58,499		2,699
Salesforce.com, Inc. *		79,640		4,134
Splunk, Inc. *		41,679		2,502
Tableau Software, Inc., Class A *		808		58
VMware, Inc., Class A *		34,667		2,805
Workday, Inc., Class A *		24,957		2,020
				40,642
Telecommunications – 5.4%
AT&T, Inc.		159,200		5,384
CenturyLink, Inc.		109,800		3,446
Cisco Systems, Inc.		398,100		9,323
Crown Castle International Corp. *		105,055		7,672
Motorola Solutions, Inc.		92,314		5,482
Verizon Communications, Inc.		113,200		5,282
Vodafone Group PLC ADR		42,500		1,495
				38,084
Transportation – 1.3%
Canadian Pacific Railway Ltd.		16,042		1,978
Kansas City Southern		14,347		1,569

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 96.1% – continued
Transportation – 1.3% – continued
Union Pacific Corp.		37,810		$5,873
				9,420
Total Common Stocks
(Cost $508,445)				681,680
INVESTMENT COMPANIES – 3.6%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		25,622,153		25,622
Total Investment Companies
(Cost $25,622)				25,622
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0 .1%
U.S. Treasury Bill, 0.08%, 10/17/13 (3)		$1,080		$1,080
Total Short-Term Investments
(Cost $1,080)				1,080
Total Investments – 99.8%
(Cost $535,147)				708,382
Other Assets less Liabilities – 0.2%				1,176
NET ASSETS – 100.0%				$709,558

(1) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $30,376,000 with net sales of approximately $4,754,000 during the six months ended September 30, 2013.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser to 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 September 30, 2013, 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)
E-Mini S&P 500		147		$12,306		Long		12/13		$(47)

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, the industry sectors for the Multi-Manager Large Cap Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		16.3%
Consumer Staples		11.9
Energy		9.1
Financials		11.0
Health Care		16.7
Industrials		6.8
Information Technology		21.3
Materials		2.4
Telecommunication Services		3.4
Utilities		1.1
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$681,680	(1)		$–		$–		$681,680
Investment Companies		25,622			–		–		25,622
Short-Term Investments		–			1,080		–		1,080
Total Investments		$707,302			$1,080		$–		$708,382
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$(47	)		$–		$–		$(47	)

(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 September 30, 2013 there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0%
Aerospace/Defense – 1.0%
Exelis, Inc.		41,100		$646
L-3 Communications Holdings, Inc.		42,600		4,026
Northrop Grumman Corp.		34,900		3,324
Raytheon Co.		27,500		2,119
				10,115
Agriculture – 0.7%
Archer-Daniels-Midland Co.		58,700		2,163
Lorillard, Inc.		111,600		4,997
				7,160
Airlines – 0.6%
Delta Air Lines, Inc.		196,475		4,635
SkyWest, Inc.		68,200		990
				5,625
Apparel – 0.8%
Under Armour, Inc., Class A *		105,846		8,409
Auto Manufacturers – 0.2%
Oshkosh Corp. *		42,200		2,067
Auto Parts & Equipment – 1.5%
Autoliv, Inc.		22,000		1,923
Cooper Tire & Rubber Co.		91,000		2,803
Lear Corp.		22,600		1,617
Magna International, Inc.		55,850		4,611
TRW Automotive Holdings Corp. *		54,000		3,851
				14,805
Banks – 4.9%
Banco Latinoamericano de Comercio Exterior S.A., Class E		57,900		1,443
Capital One Financial Corp.		20,200		1,389
CIT Group, Inc. *		37,550		1,831
East West Bancorp, Inc.		220,211		7,036
Fifth Third Bancorp		364,025		6,567
Huntington Bancshares, Inc.		842,900		6,962
KeyCorp		286,700		3,268
Regions Financial Corp.		926,975		8,584
Signature Bank *		76,573		7,008
State Street Corp.		25,800		1,696
Zions Bancorporation		109,300		2,997
				48,781
Biotechnology – 0.4%
Myriad Genetics, Inc. *		91,325		2,146

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Biotechnology – 0.4% – continued
United Therapeutics Corp. *		26,100		$2,058
				4,204
Chemicals – 1.6%
A. Schulman, Inc.		13,400		395
CF Industries Holdings, Inc.		6,200		1,307
Eastman Chemical Co.		55,600		4,331
Huntsman Corp.		283,850		5,850
Sigma-Aldrich Corp.		52,292		4,461
				16,344
Coal – 0.5%
Peabody Energy Corp.		287,700		4,963
Commercial Services – 2.7%
Convergys Corp.		89,700		1,682
CoStar Group, Inc. *		32,997		5,540
Leidos Holdings, Inc.		12,725		579
Manpower, Inc.		83,900		6,103
PAREXEL International Corp. *		115,880		5,821
RR Donnelley & Sons Co.		94,600		1,495
Science Applications International Corp. *		7,271		246
TeleTech Holdings, Inc. *		58,200		1,460
Towers Watson & Co., Class A		33,530		3,586
				26,512
Computers – 3.4%
Cognizant Technology Solutions Corp., Class A *		100,860		8,283
IHS, Inc., Class A *		61,426		7,014
Lexmark International, Inc., Class A		52,200		1,723
MICROS Systems, Inc. *		97,202		4,854
Seagate Technology PLC		66,100		2,891
Sykes Enterprises, Inc. *		69,800		1,250
Teradata Corp. *		85,435		4,736
Western Digital Corp.		45,200		2,866
				33,617
Distribution/Wholesale – 2.1%
Beacon Roofing Supply, Inc. *		105,442		3,888
Fastenal Co.		98,631		4,956
Ingram Micro, Inc., Class A *		55,300		1,275
LKQ Corp. *		349,722		11,142
				21,261
Diversified Financial Services – 3.8%
Affiliated Managers Group, Inc. *		41,449		7,570
Aircastle Ltd.		122,400		2,131

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Diversified Financial Services – 3.8% – continued
Ameriprise Financial, Inc.		49,700		$4,527
Discover Financial Services		97,400		4,923
Evercore Partners, Inc., Class A		28,225		1,389
IntercontinentalExchange, Inc. *		36,655		6,650
Invesco Ltd.		189,300		6,039
Nationstar Mortgage Holdings, Inc. *		87,775		4,935
				38,164
Electric – 4.5%
AES Corp.		463,225		6,156
Ameren Corp.		206,515		7,195
American Electric Power Co., Inc.		69,700		3,022
Cleco Corp.		126,750		5,683
CMS Energy Corp.		218,100		5,740
Edison International		65,000		2,994
Entergy Corp.		53,600		3,387
NRG Energy, Inc.		107,025		2,925
Portland General Electric Co.		82,100		2,318
Public Service Enterprise Group, Inc.		149,100		4,910
				44,330
Electrical Components & Equipment – 1.3%
AMETEK, Inc.		136,741		6,293
Energizer Holdings, Inc.		24,100		2,197
Generac Holdings, Inc.		98,650		4,206
				12,696
Electronics – 2.3%
Amphenol Corp., Class A		95,504		7,390
Avnet, Inc.		112,275		4,683
TE Connectivity Ltd.		35,600		1,844
Tech Data Corp. *		31,200		1,557
Trimble Navigation Ltd. *		218,048		6,478
Vishay Intertechnology, Inc. *		76,700		989
				22,941
Engineering & Construction – 1.1%
Aecom Technology Corp. *		53,800		1,682
EMCOR Group, Inc.		104,400		4,085
Engility Holdings, Inc. *		9,449		300
Tutor Perini Corp. *		90,320		1,926
URS Corp.		54,000		2,902
				10,895
Entertainment – 0.1%
International Game Technology		48,775		923

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Environmental Control – 0.7%
Stericycle, Inc. *		60,744		$7,010
Food – 2.7%
Fresh Del Monte Produce, Inc.		42,800		1,270
JM Smucker (The) Co.		57,617		6,052
Kroger (The) Co.		160,400		6,471
Safeway, Inc.		131,800		4,216
SUPERVALU, Inc. *		294,925		2,427
Tyson Foods, Inc., Class A		237,375		6,713
				27,149
Forest Products & Paper – 0.2%
Boise, Inc.		149,600		1,885
Gas – 0.8%
Atmos Energy Corp.		149,700		6,376
NiSource, Inc.		60,500		1,869
				8,245
Healthcare – Products – 3.6%
Align Technology, Inc. *		117,269		5,643
Boston Scientific Corp. *		275,975		3,240
CR Bard, Inc.		24,287		2,798
Edwards Lifesciences Corp. *		54,595		3,801
Sirona Dental Systems, Inc. *		67,747		4,534
St. Jude Medical, Inc.		96,750		5,190
Varian Medical Systems, Inc. *		98,146		7,335
Zimmer Holdings, Inc.		35,600		2,924
				35,465
Healthcare – Services – 1.3%
Aetna, Inc.		140,000		8,963
Cigna Corp.		18,000		1,384
Community Health Systems, Inc.		27,400		1,137
ICON PLC *		22,525		922
LifePoint Hospitals, Inc. *		15,000		699
				13,105
Home Builders – 0.5%
Ryland Group (The), Inc.		128,675		5,217
Home Furnishings – 1.1%
Harman International Industries, Inc.		33,800		2,239
Whirlpool Corp.		62,500		9,152
				11,391
Household Products/Wares – 0.6%
Church & Dwight Co., Inc.		95,777		5,751

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Insurance – 5.6%
Aflac, Inc.		13,700		$849
Allstate (The) Corp.		94,550		4,780
American Financial Group, Inc.		39,700		2,146
Aspen Insurance Holdings Ltd.		30,700		1,114
Assurant, Inc.		27,900		1,509
Brown & Brown, Inc.		101,148		3,247
Endurance Specialty Holdings Ltd.		23,200		1,246
Everest Re Group Ltd.		61,430		8,933
Genworth Financial, Inc., Class A *		35,900		459
Hartford Financial Services Group, Inc.		46,200		1,438
HCC Insurance Holdings, Inc.		79,525		3,485
ING US, Inc.		91,825		2,682
Lincoln National Corp.		181,500		7,621
Montpelier Re Holdings Ltd.		33,200		865
PartnerRe Ltd.		10,700		979
Principal Financial Group, Inc.		52,100		2,231
Tower Group International Ltd.		93,800		657
Unum Group		157,900		4,806
Validus Holdings Ltd.		184,150		6,810
				55,857
Internet – 0.5%
Web.com Group, Inc. *		150,675		4,873
Iron/Steel – 0.8%
Cliffs Natural Resources, Inc.		24,700		506
Gerdau S.A. ADR *		678,350		5,061
Reliance Steel & Aluminum Co.		34,000		2,491
				8,058
Leisure Time – 0.9%
Polaris Industries, Inc.		73,112		9,445
Lodging – 0.5%
MGM Resorts International *		249,425		5,098
Machinery – Construction & Mining – 0.3%
Hyster-Yale Materials Handling, Inc.		15,858		1,422
Terex Corp. *		60,025		2,017
				3,439
Machinery – Diversified – 4.1%
AGCO Corp.		144,275		8,717
Chart Industries, Inc. *		70,677		8,696
IDEX Corp.		73,178		4,775
Middleby (The) Corp. *		18,400		3,844
NACCO Industries, Inc., Class A		7,929		439
Roper Industries, Inc.		51,079		6,787

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Machinery – Diversified – 4.1% – continued
Wabtec Corp.		112,439		$7,069
				40,327
Media – 0.8%
FactSet Research Systems, Inc.		28,000		3,055
Gannett Co., Inc.		170,950		4,580
				7,635
Metal Fabrication/Hardware – 0.3%
Timken Co.		45,800		2,766
Mining – 0.3%
Barrick Gold Corp.		142,175		2,647
USEC, Inc. *		6,880		73
				2,720
Miscellaneous Manufacturing – 1.3%
Dover Corp.		59,200		5,318
Pall Corp.		57,314		4,415
Trinity Industries, Inc.		68,575		3,110
				12,843
Office/Business Equipment – 0.7%
Xerox Corp.		711,275		7,319
Oil & Gas – 6.4%
Cabot Corp.		29,200		1,247
Chesapeake Energy Corp.		238,425		6,170
Cimarex Energy Co.		41,975		4,046
Concho Resources, Inc. *		65,448		7,121
Hess Corp.		73,675		5,698
Marathon Petroleum Corp.		45,200		2,907
Murphy Oil Corp.		70,600		4,259
Murphy USA, Inc. *		17,650		713
Newfield Exploration Co. *		105,575		2,890
Oasis Petroleum, Inc. *		145,219		7,135
Range Resources Corp.		58,723		4,457
Tesoro Corp.		124,225		5,463
Valero Energy Corp.		98,300		3,357
Western Refining, Inc.		67,900		2,040
Whiting Petroleum Corp. *		95,875		5,738
				63,241
Oil & Gas Services – 1.0%
FMC Technologies, Inc. *		90,679		5,025
Oceaneering International, Inc.		45,122		3,666
Superior Energy Services, Inc. *		45,927		1,150
				9,841

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Packaging & Containers – 1.1%
Graphic Packaging Holding Co. *		670,875		$5,743
Owens-Illinois, Inc. *		172,825		5,188
				10,931
Pharmaceuticals – 3.0%
Cardinal Health, Inc.		116,975		6,100
Catamaran Corp. *		92,402		4,246
Jazz Pharmaceuticals PLC *		28,700		2,640
McKesson Corp.		6,800		873
Omnicare, Inc.		113,125		6,278
Perrigo Co.		53,883		6,648
Questcor Pharmaceuticals, Inc.		24,200		1,404
USANA Health Sciences, Inc. *		24,200		2,100
				30,289
Real Estate – 0.6%
CBRE Group, Inc., Class A *		239,275		5,534
Real Estate Investment Trusts – 5.1%
Ashford Hospitality Trust, Inc.		91,900		1,134
BioMed Realty Trust, Inc.		317,000		5,893
Brandywine Realty Trust		668,125		8,806
Capstead Mortgage Corp.		83,900		987
CBL & Associates Properties, Inc.		384,750		7,349
CommonWealth REIT		67,400		1,477
Hospitality Properties Trust		90,400		2,558
Kilroy Realty Corp.		140,150		7,000
Lexington Realty Trust		186,700		2,097
Liberty Property Trust		177,925		6,334
MFA Financial, Inc.		210,700		1,570
Omega Healthcare Investors, Inc.		85,500		2,554
PennyMac Mortgage Investment Trust		79,100		1,794
Sunstone Hotel Investors, Inc.		91,900		1,171
				50,724
Retail – 8.2%
Best Buy Co., Inc.		128,175		4,807
Chipotle Mexican Grill, Inc. *		14,955		6,411
Coach, Inc.		102,224		5,574
Copart, Inc. *		131,325		4,175
Dick’s Sporting Goods, Inc.		112,758		6,019
Dillard’s, Inc., Class A		54,400		4,259
DSW, Inc., Class A		60,148		5,132
GameStop Corp., Class A		51,200		2,542
Kohl’s Corp.		68,300		3,535
Macy’s, Inc.		72,000		3,115
O’Reilly Automotive, Inc. *		70,899		9,046

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Retail – 8.2% – continued
Panera Bread Co., Class A *		31,340		$4,968
Rite Aid Corp. *		694,475		3,306
Tractor Supply Co.		163,846		11,006
Ulta Salon Cosmetics & Fragrance, Inc. *		61,396		7,334
				81,229
Semiconductors – 2.5%
Amkor Technology, Inc. *		242,600		1,041
Lam Research Corp. *		94,475		4,836
Marvell Technology Group Ltd.		279,100		3,210
Micron Technology, Inc. *		323,325		5,649
NXP Semiconductor N.V. *		130,025		4,838
Skyworks Solutions, Inc. *		207,100		5,144
				24,718
Software – 4.7%
ANSYS, Inc. *		88,542		7,661
CA, Inc.		107,400		3,187
Cerner Corp. *		166,807		8,766
Citrix Systems, Inc. *		53,383		3,769
Fiserv, Inc. *		70,237		7,097
Intuit, Inc.		97,727		6,480
Red Hat, Inc. *		125,606		5,795
Tyler Technologies, Inc. *		45,165		3,951
				46,706
Telecommunications – 1.1%
Comtech Telecommunications Corp.		31,600		769
Corning, Inc.		108,700		1,586
Finisar Corp. *		169,800		3,843
Harris Corp.		48,100		2,852
USA Mobility, Inc.		41,200		583
Vonage Holdings Corp. *		416,700		1,308
				10,941
Textiles – 0.6%
Mohawk Industries, Inc. *		46,900		6,109
Transportation – 1.5%
Genesee & Wyoming, Inc., Class A *		54,732		5,088
JB Hunt Transport Services, Inc.		75,244		5,488
Swift Transportation Co. *		194,950		3,936
				14,512

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND continued SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 97.0% – continued
Trucking & Leasing – 0.1%
AMERCO		7,300		$1,344
Total Common Stocks
(Cost $739,445)				965,529
INVESTMENT COMPANIES – 3.1%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		31,148,414		31,148
Total Investment Companies
(Cost $31,148)				31,148
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT–TERM INVESTMENTS – 0.1%
U.S. Treasury Bill, 0.08%, 10/17/13 (3)		$995		$995
Total Short-Term Investments
(Cost $995)				995
Total Investments – 100.2%
(Cost $771,588)				997,672
Liabilities less Other Assets – (0.2)%				(1,566	)
NET ASSETS – 100.0%				$996,106

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

(2) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $15,970,000 with net purchases of approximately $15,178,000 during the six months ended September 30, 2013.

(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 September 30, 2013, 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		131		$16,252		Long		12/13		$48

At September 30, 2013, the industry sectors for the Multi-Manager Mid Cap Fund were :

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Consumer Discretionary		15.7%
Consumer Staples		4.9
Energy		7.9
Financials		20.4
Health Care		9.9
Industrials		16.0
Information Technology		15.3
Materials		4.3
Telecommunication Services		0.2
Utilities		5.4
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$965,529	(1)		$ –		$ –		$965,529
Investment Companies		31,148			–		–		31,148
Short-Term Investments		–			995		–		995
Total Investments		$996,677			$995		$ –		$997,672
OTHER FINANCIAL INTRUMENTS
Assets
Futures Contracts		$48			$ –		$ –		$48

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2%
Advertising – 0.7%
Interpublic Group of (The) Cos., Inc.		18,300		$315
MDC Partners, Inc., Class A		91,574		2,562
				2,877
Aerospace/Defense – 2.0%
Alliant Techsystems, Inc.		10,000		976
Cubic Corp.		13,922		747
Curtiss-Wright Corp.		16,900		794
Embraer S.A. ADR *		9,400		305
Kaman Corp.		44,385		1,680
M/A-COM Technology Solutions Holdings, Inc. *		104,365		1,776
Teledyne Technologies, Inc. *		22,053		1,873
				8,151
Airlines – 0.3%
JetBlue Airways Corp. *		166,000		1,106
Apparel – 0.3%
Quiksilver, Inc. *		191,800		1,348
Auto Parts & Equipment – 2.8%
Dorman Products, Inc.		71,704		3,553
Gentherm, Inc. *		213,505		4,074
Meritor, Inc. *		189,600		1,490
Miller Industries, Inc.		113,792		1,932
Standard Motor Products, Inc.		11,600		373
				11,422
Banks – 4.2%
Associated Banc-Corp.		55,900		866
Bank of the Ozarks, Inc.		17,700		849
CapitalSource, Inc.		171,090		2,033
Cardinal Financial Corp.		11,700		193
Cass Information Systems, Inc.		21,498		1,147
Columbia Banking System, Inc.		35,110		867
Community Bank System, Inc.		20,450		698
First Financial Holdings, Inc.		5,111		282
First Horizon National Corp.		228,685		2,513
First Interstate Bancsystem, Inc.		5,937		143
Fulton Financial Corp.		54,725		639
Hancock Holding Co.		35,000		1,098
Iberiabank Corp.		18,500		960
Synovus Financial Corp.		297,400		981
Trustmark Corp.		24,200		620
Webster Financial Corp.		54,700		1,397
Westamerica Bancorporation		18,832		937

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2% – continued
Banks – 4.2% – continued
Wintrust Financial Corp.		24,609		$1,011
				17,234
Building Materials – 0.6%
Masonite International Corp. *		47,900		2,344
Chemicals – 0.7%
Innophos Holdings, Inc.		19,120		1,009
Innospec, Inc.		24,915		1,162
Sensient Technologies Corp.		13,650		654
				2,825
Commercial Services – 12.9%
Advisory Board (The) Co. *		61,490		3,657
Avis Budget Group, Inc. *		87,600		2,526
Brink’s (The) Co.		37,034		1,048
CBIZ, Inc. *		156,187		1,162
Chemed Corp.		27,460		1,963
Convergys Corp.		88,160		1,653
CoStar Group, Inc. *		43,290		7,268
DeVry, Inc.		12,100		370
ExlService Holdings, Inc. *		58,015		1,652
Global Cash Access Holdings, Inc. *		70,502		551
Grand Canyon Education, Inc. *		71,587		2,884
Heidrick & Struggles International, Inc.		23,900		456
Hudson Global, Inc. *		386,955		1,254
K12, Inc. *		46,545		1,437
KAR Auction Services, Inc.		74,807		2,110
Korn/Ferry International *		18,300		392
Manpowergroup, Inc.		12,900		938
MAXIMUS, Inc.		122,260		5,507
Monro Muffler Brake, Inc.		61,270		2,848
PHH Corp. *		102,600		2,436
Rent-A-Center, Inc.		82,100		3,128
Ritchie Bros. Auctioneers, Inc.		79,257		1,599
Rollins, Inc.		83,215		2,206
Valassis Communications, Inc.		118,100		3,411
				52,456
Computers – 2.3%
CIBER, Inc. *		21,100		70
j2 Global, Inc.		44,510		2,204
LivePerson, Inc. *		75,060		709
Qualys, Inc. *		41,520		888
Stratasys Ltd. *		25,599		2,592

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2% – continued
Computers – 2.3% – continued
Syntel, Inc.		38,370		$3,073
				9,536
Distribution/Wholesale – 3.6%
Beacon Roofing Supply, Inc. *		50,375		1,857
LKQ Corp. *		233,155		7,428
MWI Veterinary Supply, Inc. *		32,400		4,839
Owens & Minor, Inc.		21,494		744
				14,868
Diversified Financial Services – 3.2%
BGC Partners, Inc., Class A		90,300		510
Ellie Mae, Inc. *		82,495		2,641
Financial Engines, Inc.		32,670		1,942
FXCM, Inc., Class A		30,600		604
Greenhill & Co., Inc.		16,900		843
Nelnet, Inc., Class A		24,108		927
Portfolio Recovery Associates, Inc. *		51,209		3,070
Regional Management Corp. *		13,900		442
WageWorks, Inc. *		40,620		2,049
				13,028
Electric – 1.5%
El Paso Electric Co.		21,300		712
Great Plains Energy, Inc.		91,500		2,031
NRG Energy, Inc.		63,123		1,725
Portland General Electric Co.		35,800		1,011
UNS Energy Corp.		17,700		825
				6,304
Electrical Components & Equipment – 0.5%
Belden, Inc.		13,390		858
PowerSecure International, Inc. *		85,170		1,367
				2,225
Electronics – 1.2%
Brady Corp., Class A		25,800		787
Gentex Corp.		59,843		1,532
National Instruments Corp.		80,284		2,483
				4,802
Engineering & Construction – 0.3%
McDermott International, Inc. *		55,600		413
Tutor Perini Corp. *		39,100		834
				1,247
Entertainment – 0.5%
Cinemark Holdings, Inc.		17,600		559

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2% – continued
Entertainment – 0.5% – continued
Lakes Entertainment, Inc. *		47,000		$194
Six Flags Entertainment Corp.		41,512		1,403
				2,156
Environmental Control – 0.6%
Advanced Emissions Solutions, Inc. *		52,880		2,259
Food – 1.5%
Calavo Growers, Inc.		24,220		732
Fresh Market (The), Inc. *		57,035		2,698
Pinnacle Foods, Inc.		11,700		310
United Natural Foods, Inc. *		33,889		2,278
				6,018
Forest Products & Paper – 0.4%
Schweitzer-Mauduit International, Inc.		25,750		1,559
Healthcare – Products – 2.3%
Abaxis, Inc.		29,470		1,241
Cepheid, Inc. *		60,107		2,347
Globus Medical, Inc., Class A *		43,520		760
Hanger, Inc. *		17,300		584
MiMedx Group, Inc. *		197,936		825
Techne Corp.		17,680		1,416
Trinity Biotech PLC ADR		14,400		313
West Pharmaceutical Services, Inc.		43,800		1,802
				9,288
Healthcare – Services – 4.0%
Bio-Reference Labs, Inc. *		134,585		4,022
ICON PLC *		65,780		2,692
IPC The Hospitalist Co., Inc. *		74,345		3,792
LifePoint Hospitals, Inc. *		42,800		1,996
MEDNAX, Inc. *		20,385		2,047
WellCare Health Plans, Inc. *		25,500		1,778
				16,327
Home Builders – 0.2%
Thor Industries, Inc.		11,250		653
Household Products/Wares – 0.2%
Helen of Troy Ltd. *		13,830		611
Housewares – 0.2%
Libbey, Inc. *		27,400		652
Insurance – 3.9%
American Equity Investment Life Holding Co.		42,177		895
Argo Group International Holdings Ltd.		40,890		1,753

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2% – continued
Insurance – 3.9% – continued
Aspen Insurance Holdings Ltd.		24,600		$893
CNO Financial Group, Inc.		106,800		1,538
Endurance Specialty Holdings Ltd.		42,500		2,283
Global Indemnity PLC *		73,823		1,879
Horace Mann Educators Corp.		63,100		1,791
Montpelier Re Holdings Ltd.		30,250		788
National Western Life Insurance Co., Class A		1,300		262
Primerica, Inc.		22,950		926
StanCorp Financial Group, Inc.		16,896		930
Symetra Financial Corp.		112,410		2,003
				15,941
Internet – 5.3%
Boingo Wireless, Inc. *		46,110		323
comScore, Inc. *		121,442		3,518
Dealertrack Technologies, Inc. *		158,580		6,794
IAC/InterActiveCorp		34,230		1,871
Liquidity Services, Inc. *		28,500		956
RetailMeNot, Inc. *		43,108		1,533
Shutterfly, Inc. *		57,715		3,225
SPS Commerce, Inc. *		31,378		2,100
ValueClick, Inc. *		61,425		1,281
				21,601
Investment Companies – 0.2%
Hercules Technology Growth Capital, Inc.		58,247		888
Machinery – Diversified – 0.2%
Toro (The) Co.		17,388		945
Media – 0.2%
LIN Media LLC, Class A *		38,100		773
Metal Fabrication/Hardware – 0.1%
CIRCOR International, Inc.		9,700		603
Mining – 0.9%
Compass Minerals International, Inc.		15,623		1,191
Horsehead Holding Corp. *		95,900		1,195
Kaiser Aluminum Corp.		7,800		556
Noranda Aluminum Holding Corp.		244,700		602
US Antimony Corp. *		193,000		268
				3,812
Miscellaneous Manufacturing – 1.3%
Actuant Corp., Class A		32,200		1,251
Proto Labs, Inc. *		55,080		4,207
				5,458

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2% – continued
Oil & Gas – 1.4%
Bonanza Creek Energy, Inc. *		24,630		$1,189
Cobalt International Energy, Inc. *		27,200		676
Comstock Resources, Inc.		43,050		685
Energy XXI Bermuda Ltd.		32,200		972
Stone Energy Corp. *		3,900		127
Triangle Petroleum Corp. *		88,300		867
Western Refining, Inc.		37,050		1,113
				5,629
Oil & Gas Services – 1.0%
Dril-Quip, Inc. *		36,360		4,172
Packaging & Containers – 0.5%
Silgan Holdings, Inc.		42,502		1,998
Pharmaceuticals – 3.4%
Akorn, Inc. *		140,060		2,756
Catamaran Corp. *		58,220		2,675
Neogen Corp. *		31,156		1,892
PharMerica Corp. *		81,500		1,082
Questcor Pharmaceuticals, Inc.		71,860		4,168
Taro Pharmaceutical Industries Ltd. *		16,800		1,277
				13,850
Real Estate – 0.4%
Howard Hughes (The) Corp. *		14,330		1,610
Real Estate Investment Trusts – 2.0%
Brandywine Realty Trust		60,030		791
CubeSmart		39,500		705
DuPont Fabros Technology, Inc.		35,770		922
EPR Properties		11,840		577
Geo Group (The), Inc.		35,300		1,174
Government Properties Income Trust		27,318		654
Granite Real Estate Investment Trust		19,900		709
Hatteras Financial Corp.		35,518		664
Medical Properties Trust, Inc.		98,100		1,194
Starwood Property Trust, Inc.		34,330		823
				8,213
Retail – 6.6%
Big Lots, Inc. *		33,100		1,228
BJ’s Restaurants, Inc. *		6,940		199
Bob Evans Farms, Inc.		37,128		2,126
Brown Shoe Co., Inc.		47,150		1,107
Buffalo Wild Wings, Inc. *		28,670		3,189
Casey’s General Stores, Inc.		8,050		592
Cash America International, Inc.		57,701		2,613

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND continued

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2% – continued
Retail – 6.6% – continued
Cato (The) Corp., Class A		21,300		$596
CEC Entertainment, Inc.		15,300		702
Cheesecake Factory (The), Inc.		38,800		1,705
Finish Line (The), Inc., Class A		39,063		971
Five Below, Inc. *		17,430		763
Hibbett Sports, Inc. *		30,310		1,702
Ruby Tuesday, Inc. *		81,400		610
Rush Enterprises, Inc., Class A *		75,900		2,012
Sonic Automotive, Inc., Class A		55,100		1,311
Stage Stores, Inc.		39,045		750
Texas Roadhouse, Inc.		38,650		1,016
Tilly’s, Inc., Class A *		111,842		1,623
World Fuel Services Corp.		27,030		1,008
Zumiez, Inc. *		35,270		971
				26,794
Savings & Loans – 0.1%
First Niagara Financial Group, Inc.		41,500		430
Semiconductors – 2.6%
Cabot Microelectronics Corp. *		34,838		1,342
Cavium, Inc. *		31,350		1,292
Cypress Semiconductor Corp. *		49,832		465
Intersil Corp., Class A		79,448		892
ON Semiconductor Corp. *		177,400		1,295
Power Integrations, Inc.		26,975		1,461
QLogic Corp. *		78,200		856
Semtech Corp. *		60,065		1,801
Skyworks Solutions, Inc. *		42,120		1,046
				10,450
Shipbuilding – 0.9%
Huntington Ingalls Industries, Inc.		51,364		3,462
Software – 8.9%
ACI Worldwide, Inc. *		34,560		1,868
ANSYS, Inc. *		28,500		2,466
Aspen Technology, Inc. *		94,305		3,258
athenahealth, Inc. *		18,571		2,016
Bottomline Technologies de, Inc. *		55,570		1,549
Broadridge Financial Solutions, Inc.		19,110		607
Concur Technologies, Inc. *		17,902		1,978
Digi International, Inc. *		77,555		776
Ebix, Inc.		41,699		415
Envestnet, Inc. *		47,294		1,466
EPAM Systems, Inc. *		112,480		3,881
Greenway Medical Technologies *		67,995		1,404

	NUMBER OF SHARES		VALUE (000s)
COMMON STOCKS – 95.2% – continued
Software – 8.9% – continued
InnerWorkings, Inc. *		74,890		$735
Omnicell, Inc. *		12,150		288
Pegasystems, Inc.		21,515		857
Progress Software Corp. *		35,070		908
RealPage, Inc. *		86,870		2,012
SciQuest, Inc. *		48,500		1,089
Tangoe, Inc. *		132,950		3,172
Ultimate Software Group (The), Inc. *		30,815		4,542
Verint Systems, Inc. *		28,606		1,060
				36,347
Storage/Warehousing – 0.4%
Mobile Mini, Inc. *		51,590		1,757
Telecommunications – 3.6%
8x8, Inc. *		310,920		3,131
ARRIS Group, Inc. *		151,800		2,590
Aruba Networks, Inc. *		90,770		1,511
Comverse, Inc. *		30,830		985
InterDigital, Inc.		30,800		1,150
Loral Space & Communications, Inc.		35,425		2,399
NICE Systems Ltd. ADR		29,400		1,216
Plantronics, Inc.		20,550		946
Premiere Global Services, Inc. *		27,200		271
Symmetricom, Inc. *		65,400		315
				14,514
Transportation – 4.3%
Atlas Air Worldwide Holdings, Inc. *		30,800		1,420
Bristow Group, Inc.		11,650		848
Con-way, Inc.		92,800		3,999
Echo Global Logistics, Inc. *		142,569		2,985
Forward Air Corp.		19,140		772
Gulfmark Offshore, Inc., Class A		16,900		860
Matson, Inc.		41,100		1,078
Roadrunner Transportation Systems, Inc. *		147,618		4,169
Tidewater, Inc.		21,508		1,275
				17,406
Total Common Stocks
(Cost $280,842)				387,949

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
MASTER LIMITED PARTNERSHIPS – 0.1%
Diversified Financial Services – 0.1%
Ellington Financial LLC		20,190		$454
Total Master Limited Partnerships
(Cost $455)				454
INVESTMENT COMPANIES – 4.7%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)(2)		19,062,843		19,063
Total Investment Companies
(Cost $19,063)				19,063
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT–TERM INVESTMENTS – 0 .1%
U.S. Treasury Bill, 0.08%, 10/17/13 (3)		$585		$585
Total Short-Term Investments
(Cost $585)				585
Total Investments – 100.1%
(Cost $300,945)				408,051
Liabilities less Other Assets – (0.1)%				(443	)
NET ASSETS – 100.0%				$407,608

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

(2) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $23,992,000 with net sales of approximately $4,929,000 during the six months ended September 30, 2013.

(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 September 30, 2013, 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 Index		67		$7,178		Long		12/13		$55

At September 30, 2013, the industry sectors for the Multi-Manager Small Cap Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		17.5%
Consumer Staples		1.7
Energy		3.6
Financials		14.7
Health Care		13.1
Industrials		16.6
Information Technology		26.4
Materials		3.8
Telecommunication Services		1.0
Utilities		1.6
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Common Stocks		$387,949	(1)		$ –		$–		$387,949
Master Limited Partnerships		454			–		–		454
Investment Companies		19,063			–		–		19,063
Short-Term Investments		–			585		–		585
Total Investments		$407,466			$585		$–		$408,051
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts		$55			$ –		$–		$55

(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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.5%
Auto Floor Plan – 0.1%
DSC Floorplan Master Owner Trust, Series 2011-1, Class B, 8.11%, 3/15/16 (1)		$500		$499
Commercial Mortgage-Backed Securities – 0.4%
GS Mortgage Securities Trust, Series 2007-GG10, Class AM, 5.99%, 8/10/45		2,730		2,669
Other – 0.2%
Countrywide Asset-Backed Certificates, Series 2004-13, Class AF5B, 5.10%, 5/25/35		225		218
First Franklin Mortgage Loan Trust, Series 2006-FF10, Class A4, 0.33%, 7/25/36		367		334
Fremont Home Loan Trust, Series 2006-D, Class 2A3, 0.33%, 11/25/36		1,258		523
Sierra Timeshare Receivables Funding LLC, Series 2011-3A, Class C, 9.31%, 7/20/28 (1)(2)		439		474
				1,549
Whole Loan – 1.8%
Banc of America Alternative Loan Trust, Series 2003-10, Class 3A1, 5.50%, 12/25/33		383		389
Banc of America Funding Trust, Series 2005-7, Class 3A1, 5.75%, 11/25/35		317		318
Banc of America Mortgage Trust, Series 2005-A, Class 2A1, 2.94%, 2/25/35		84		82
Citicorp Mortgage Securities Trust, Series 2006-4, Class 1A2, 6.00%, 8/25/36		196		199
CitiMortgage Alternative Loan Trust, Series 2006-A3, Class 1A7, 6.00%, 7/25/36		169		149
Countrywide Alternative Loan Trust, Series 2004-27CB, Class A1, 6.00%, 12/25/34		731		705
Countrywide Alternative Loan Trust, Series 2005-14, Class 2A1, 0.39%, 5/25/35		609		492
Countrywide Alternative Loan Trust, Series 2006-J4, Class 1A3, 6.25%, 7/25/36		514		342

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.5% – continued
Whole Loan – 1.8% – continued
Countrywide Home Loan Mortgage Pass-Through Trust, Series 2005-11, Class 3A3, 2.69%, 4/25/35		$1,266		$878
Countrywide Home Loan Mortgage Pass-Through Trust, Series 2005-13, Class A3, 5.50%, 6/25/35		323		318
Countrywide Home Loan Mortgage Pass-Through Trust, Series 2005-2, Class 2A3, 0.52%, 3/25/35		552		359
Countrywide Home Loan Mortgage Pass-Through Trust, Series 2006-20, Class 1A35, 6.00%, 2/25/37		487		428
GMACM Mortgage Loan Trust, Series 2003-J7, Class A7, 5.00%, 11/25/33		98		99
GMACM Mortgage Loan Trust, Series 2005-AR4, Class 3A1, 3.41%, 7/19/35		609		552
GSR Mortgage Loan Trust, Series 2004-14, Class 5A1, 2.72%, 12/25/34		435		430
GSR Mortgage Loan Trust, Series 2005-AR4, Class 4A1, 2.71%, 7/25/35		225		204
GSR Mortgage Loan Trust, Series 2005-AR6, Class 4A5, 2.66%, 9/25/35		600		584
GSR Mortgage Loan Trust, Series 2006-8F, Class 4A17, 6.00%, 9/25/36		284		239
IndyMac INDX Mortgage Loan Trust, Series 2005-16IP, Class A1, 0.50%, 7/25/45		591		516
JP Morgan Alternative Loan Trust, Series 2006-A1, Class 5A1, 4.64%, 3/25/36		187		155
JP Morgan Mortgage Trust, Series 2005-S3, Class 1A9, 6.00%, 1/25/36		482		420
MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1, 2.68%, 3/25/35		522		423
MASTR Adjustable Rate Mortgages Trust, Series 2007-1, Class l2A1, 0.34%, 1/25/47		825		594

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
ASSET-BACKED SECURITIES – 2.5% – continued
Whole Loan – 1.8% – continued
New York Mortgage Trust, Series 2006-1, Class 2A2, 2.84%, 5/25/36		$237		$204
RALI Trust, Series 2006-QS6, Class 1A16, 6.00%, 6/25/36		681		530
Residential Asset Securitization Trust, Series 2006-A2, Class A11, 6.00%, 1/25/46		548		415
RFMSI Trust, Series 2006-S1, Class 1A3, 5.75%, 1/25/36		517		521
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-14, Class A1, 0.49%, 7/25/35		522		429
WaMu Mortgage Pass-Through Certificates, Series 2006-AR11, Class 2A, 2.45%, 9/25/46		506		471
WaMu Mortgage Pass-Through Certificates, Series 2006-AR19, Class 2A, 2.20%, 1/25/47		638		564
WaMu Mortgage Pass-Through Certificates, Series 2007-OA3, Class 2A1A, 0.91%, 4/25/47		229		204
Washington Mutual Mortgage Pass-Through Certificates, Series 2006-AR6, Class 2A, 1.11%, 8/25/46		846		527
				12,740
Total Asset-Backed Securities
(Cost $16,294)				17,457
CONVERTIBLE BONDS – 3.6%
Apparel – 0.3%
Iconix Brand Group, Inc., 2.50%, 6/1/16		1,395		1,716
Auto Manufacturers – 0.7%
Ford Motor Co., 4.25%, 11/15/16		2,465		4,908
Biotechnology – 0.1%
Gilead Sciences, Inc., 1.63%, 5/1/16		150		417

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CONVERTIBLE BONDS – 3.6% – continued
Coal – 0.2%
Peabody Energy Corp., 4.75%, 12/15/41		$1,350		$1,065
Computers – 0.0%
SanDisk Corp., 1.50%, 8/15/17		220		291
Healthcare - Products – 0.0%
Hologic, Inc., 2.00%, 12/15/37		25		28
Home Builders – 0.8%
KB Home, 1.38%, 2/1/19		570		579
Lennar Corp., 2.00%, 12/1/20 (1)		105		136
2.75%, 12/15/20 (1)		425		723
3.25%, 11/15/21 (1)(2)		1,165		1,938
Ryland Group (The), Inc., 1.63%, 5/15/18		675		983
Standard Pacific Corp., 1.25%, 8/1/32		1,105		1,364
				5,723
Iron/Steel – 0.1%
Steel Dynamics, Inc., 5.13%, 6/15/14		320		352
United States Steel Corp., 2.75%, 4/1/19		400		441
				793
Miscellaneous Manufacturing – 0.4%
Trinity Industries, Inc., 3.88%, 6/1/36		2,210		2,702
Oil & Gas – 0.2%
Chesapeake Energy Corp., 2.50%, 5/15/37		630		621
Cobalt International Energy, Inc., 2.63%, 12/1/19		515		545
				1,166
Oil & Gas Services – 0.1%
Hornbeck Offshore Services, Inc., 1.50%, 9/1/19		510		660
Pharmaceuticals – 0.1%
Mylan, Inc., 3.75%, 9/15/15		260		755

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CONVERTIBLE BONDS – 3.6% – continued
Real Estate Investment Trusts – 0.2%
iStar Financial, Inc., 3.00%, 11/15/16		$585		$730
Redwood Trust, Inc., 4.63%, 4/15/18		395		417
				1,147
Semiconductors – 0.3%
Micron Technology, Inc., 2.38%, 5/1/32		1,075		2,056
Xilinx, Inc., 2.63%, 6/15/17		35		57
				2,113
Telecommunications – 0.1%
Axtel S.A.B. de C.V., 7.00%, 1/31/20 (1)(3)		824		65
Ciena Corp., 3.75%, 10/15/18 (1)		240		354
Level 3 Communications, Inc., 7.00%, 3/15/15		485		586
				1,005
Total Convertible Bonds
(Cost $17,925)				24,489
CORPORATE BONDS – 71.9%
Advertising – 0.4%
Visant Corp., 10.00%, 10/1/17		2,880		2,678
Aerospace/Defense – 0.6%
Meccanica Holdings USA, Inc., 7.38%, 7/15/39 (1)		2,400		2,207
6.25%, 1/15/40 (1)		1,400		1,169
TransDigm, Inc., 7.75%, 12/15/18		850		905
				4,281
Agriculture – 0.4%
North Atlantic Trading Co., 11.50%, 7/15/16 (1)		2,530		2,713
Airlines – 0.6%
American Airlines Pass Through Trust, Series 2013-2, Class A, 4.95%, 1/15/23 (1)		1,580		1,588
Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.13%, 4/29/18		415		422

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Airlines – 0.6% – continued
Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.90%, 4/19/22		$107		$110
UAL Pass Through Trust, Series 2009-2A, 9.75%, 1/15/17		372		423
United Airlines, Inc., 6.75%, 9/15/15 (1)		555		572
US Airways Pass Through Trust, Series 2012-1B, 8.00%, 10/1/19		879		959
				4,074
Apparel – 0.4%
Jones Group (The), Inc., 6.13%, 11/15/34		3,485		2,701
Auto Manufacturers – 0.5%
Ford Motor Co., 9.98%, 2/15/47		590		810
General Motors Co., 4.88%, 10/2/23 (1)(2)		885		865
6.25%, 10/2/43 (1)(2)		310		305
Navistar International Corp., 8.25%, 11/1/21		1,165		1,180
				3,160
Auto Parts & Equipment – 0.2%
Goodyear Tire & Rubber (The) Co., 6.50%, 3/1/21		1,350		1,374
Banks – 1.9%
Ally Financial, Inc., 6.75%, 12/1/14		1,000		1,050
5.50%, 2/15/17		295		310
6.25%, 12/1/17		1,470		1,572
8.00%, 3/15/20		1,770		2,036
CIT Group, Inc., 5.00%, 5/15/17		1,900		1,997
5.25%, 3/15/18		805		843
6.63%, 4/1/18 (1)		2,055		2,261
5.50%, 2/15/19 (1)		1,225		1,286
5.00%, 8/15/22		75		73
5.00%, 8/1/23		80		77
Morgan Stanley, 8.00%, 5/9/17 (4)		1,300		1,342

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Banks – 1.9% – continued
Provident Funding Associates L.P./PFG Finance Corp., 6.75%, 6/15/21 (1)		$510		$513
				13,360
Beverages – 0.1%
Crestview DS Merger Sub II, Inc., 10.00%, 9/1/21 (1)(2)		690		711
Building Materials – 0.6%
Associated Materials LLC/AMH New Finance, Inc., 9.13%, 11/1/17 (1)		235		250
Builders FirstSource, Inc., 7.63%, 6/1/21 (1)		730		730
CPG Merger Sub LLC, 8.00%, 10/1/21 (1)(2)		345		350
Masco Corp., 6.13%, 10/3/16		340		376
USG Corp., 9.75%, 1/15/18		1,550		1,794
8.38%, 10/15/18 (1)		870		944
				4,444
Chemicals – 2.1%
Chemtura Corp., 5.75%, 7/15/21		725		723
Hercules, Inc., 6.50%, 6/30/29		1,960		1,744
Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 9.00%, 11/15/20		30		29
Huntsman International LLC, 8.63%, 3/15/20		370		407
4.88%, 11/15/20		200		190
8.63%, 3/15/21		1,545		1,715
Momentive Performance Materials, Inc., 8.88%, 10/15/20		380		399
9.00%, 1/15/21		3,663		3,132
PQ Corp., 8.75%, 5/1/18 (1)(2)		2,585		2,753
Reichhold Industries, Inc., 9.00%, 5/8/17 (1)(2)(5)		738		569
Tronox Finance LLC, 6.38%, 8/15/20		2,765		2,737

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Chemicals – 2.1% – continued
US Coatings Acquisition, Inc./Axalta Coating Systems Dutch Holding B B.V., 7.38%, 5/1/21 (1)		$405		$423
				14,821
Coal – 3.3%
Alpha Natural Resources, Inc., 9.75%, 4/15/18		680		690
6.00%, 6/1/19		553		462
6.25%, 6/1/21		615		504
Arch Coal, Inc., 8.75%, 8/1/16		185		185
9.88%, 6/15/19 (1)(2)		550		490
7.25%, 10/1/20		458		346
7.25%, 6/15/21		615		464
Foresight Energy LLC/Foresight Energy Corp., 7.88%, 8/15/21 (1)(2)		10,250		10,250
Murray Energy Corp., 8.63%, 6/15/21 (1)		190		190
Peabody Energy Corp., 6.00%, 11/15/18		2,120		2,115
6.25%, 11/15/21		7,040		6,829
Walter Energy, Inc., 9.50%, 10/15/19 (1)(2)		270		279
8.50%, 4/15/21 (1)		275		230
				23,034
Commercial Services – 2.6%
ADT (The) Corp., 6.25%, 10/15/21 (1)(2)		490		497
American Residential Services LLC/ARS Finance, Inc., 12.00%, 4/15/15 (1)(2)		725		732
Ceridian Corp., 12.25%, 11/15/15 (5)		356		360
8.88%, 7/15/19 (1)		580		664
Envision Healthcare Corp., 8.13%, 6/1/19 (1)		920		994
Hertz (The) Corp., 5.88%, 10/15/20		495		510
Iron Mountain, Inc., 8.38%, 8/15/21		299		321
5.75%, 8/15/24		720		648
Jaguar Holding Co. I, 9.38%, 10/15/17 (1)(5)		370		391

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Commercial Services – 2.6% – continued
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/1/19 (1)		$965		$1,084
Knowledge Universe Education LLC, 7.75%, 2/1/15 (1)		510		495
RR Donnelley & Sons Co., 7.25%, 5/15/18		28		31
8.25%, 3/15/19		3,070		3,408
7.63%, 6/15/20		1,130		1,204
7.88%, 3/15/21		905		971
7.00%, 2/15/22		855		859
ServiceMaster Co., 8.00%, 2/15/20		1,280		1,267
7.00%, 8/15/20		1,330		1,257
7.45%, 8/15/27		1,535		1,228
United Rentals North America, Inc., 8.38%, 9/15/20		240		266
8.25%, 2/1/21		620		688
				17,875
Computers – 0.3%
SunGard Data Systems, Inc., 7.38%, 11/15/18		260		276
6.63%, 11/1/19		1,325		1,351
7.63%, 11/15/20		260		278
				1,905
Cosmetics/Personal Care – 0.3%
First Quality Finance Co., Inc., 4.63%, 5/15/21 (1)		2,180		1,978
Distribution/Wholesale – 1.0%
HD Supply, Inc., 7.50%, 7/15/20 (1)		175		181
VWR Funding, Inc., 7.25%, 9/15/17		6,485		6,842
				7,023
Diversified Financial Services – 2.3%
General Motors Financial Co., Inc., 4.75%, 8/15/17 (1)		855		885
3.25%, 5/15/18 (1)(2)		335		326
International Lease Finance Corp., 8.63%, 9/15/15		650		717
8.75%, 3/15/17		2,480		2,846
8.88%, 9/1/17		1,765		2,043

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Diversified Financial Services – 2.3% – continued
3.88%, 4/15/18		$385		$372
5.88%, 4/1/19		1,005		1,046
6.25%, 5/15/19		475		499
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 7.38%, 10/1/17		975		1,020
MPH Intermediate Holding Co. 2, 8.38%, 8/1/18 (1)(2)(5)		695		712
SLM Corp., 5.50%, 1/15/19		790		782
5.50%, 1/25/23		2,230		2,042
Springleaf Finance Corp., 6.50%, 9/15/17		300		309
6.90%, 12/15/17		445		465
7.75%, 10/1/21 (1)(2)		1,105		1,146
8.25%, 10/1/23 (1)(2)		440		458
Stearns Holdings, Inc., 9.38%, 8/15/20 (1)(2)		282		288
				15,956
Electric – 1.7%
AES Corp., 4.88%, 5/15/23		1,100		1,028
Calpine Corp., 7.88%, 7/31/20 (1)		1,389		1,497
CMS Energy Corp., 6.55%, 7/17/17		530		612
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 10.00%, 12/1/20		2,635		2,777
IPALCO Enterprises, Inc., 7.25%, 4/1/16 (1)		515		566
5.00%, 5/1/18		265		275
NRG Energy, Inc., 7.63%, 1/15/18		2,030		2,248
7.63%, 5/15/19		395		417
7.88%, 5/15/21		1,830		1,958
				11,378
Entertainment – 1.5%
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp., 9.13%, 8/1/18		640		701
5.25%, 3/15/21 (1)		805		769
Graton Economic Development Authority, 9.63%, 9/1/19 (1)		1,680		1,848

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Entertainment – 1.5% – continued
Mohegan Tribal Gaming Authority, 11.00%, 9/15/18 (1)		$1,630		$1,614
9.75%, 9/1/21 (1)(2)		975		1,019
Peninsula Gaming LLC/Peninsula Gaming Corp., 8.38%, 2/15/18 (1)		1,040		1,123
Pinnacle Entertainment, Inc., 7.50%, 4/15/21		800		870
7.75%, 4/1/22		795		837
PNK Finance Corp., 6.38%, 8/1/21 (1)(2)		940		959
Seminole Indian Tribe of Florida, Inc., 7.75%, 10/1/17 (1)		575		610
WMG Acquisition Corp., 6.00%, 1/15/21 (1)		307		318
				10,668
Food – 0.5%
KeHE Distributors LLC/KeHE Finance Corp., 7.63%, 8/15/21 (1)(2)		1,145		1,162
SUPERVALU, Inc., 6.75%, 6/1/21 (1)		1,950		1,852
US Foods, Inc., 8.50%, 6/30/19		272		287
				3,301
Hand/Machine Tools – 1.0%
Victor Technologies Group, Inc., 9.00%, 12/15/17		6,390		6,885
Healthcare - Products – 1.8%
Biomet, Inc., 6.50%, 8/1/20		8,289		8,558
DJO Finance LLC/DJO Finance Corp., 7.75%, 4/15/18		180		178
9.88%, 4/15/18		240		255
Hologic, Inc., 6.25%, 8/1/20		405		422
Physio-Control International, Inc., 9.88%, 1/15/19 (1)		2,532		2,836
				12,249
Healthcare - Services – 4.9%
Acadia Healthcare Co., Inc., 6.13%, 3/15/21 (1)		3,200		3,232

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Healthcare - Services – 4.9% – continued
Amsurg Corp., 5.63%, 11/30/20		$693		$693
Community Health Systems, Inc., 5.13%, 8/15/18		805		819
8.00%, 11/15/19		385		404
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22		1,035		1,023
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (1)		595		620
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (1)		835		916
HCA Holdings, Inc., 6.25%, 2/15/21		440		447
HCA, Inc., 7.50%, 12/15/23		260		265
8.36%, 4/15/24		680		731
7.69%, 6/15/25		1,310		1,341
7.58%, 9/15/25		240		244
7.05%, 12/1/27		70		67
7.50%, 11/6/33		1,940		1,925
7.75%, 7/15/36		420		412
IASIS Healthcare LLC/IASIS Capital Corp., 8.38%, 5/15/19		1,910		1,982
Radiation Therapy Services, Inc., 8.88%, 1/15/17		5,310		5,270
ResCare, Inc., 10.75%, 1/15/19		1,360		1,520
Symbion, Inc., 8.00%, 6/15/16		500		528
Tenet Healthcare Corp., 6.25%, 11/1/18		870		929
6.75%, 2/1/20		655		653
6.00%, 10/1/20 (1)(2)		1,430		1,462
4.50%, 4/1/21		615		577
4.38%, 10/1/21 (1)		385		355
8.13%, 4/1/22 (1)(2)		1,870		1,952
6.88%, 11/15/31		1,725		1,462
United Surgical Partners International, Inc., 9.00%, 4/1/20		3,925		4,308
				34,137
Holding Companies - Diversified – 1.4%
Harbinger Group, Inc., 7.88%, 7/15/19 (1)		9,230		9,553

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Home Builders – 1.6%
D.R. Horton, Inc., 5.75%, 8/15/23		$885		$892
K Hovnanian Enterprises, Inc., 5.00%, 11/1/21		1,520		1,338
KB Home, 8.00%, 3/15/20		945		1,021
7.50%, 9/15/22		595		619
Lennar Corp., 4.75%, 12/15/17		965		991
4.75%, 11/15/22		3,105		2,857
PulteGroup, Inc., 7.88%, 6/15/32		2,545		2,570
6.38%, 5/15/33		390		348
6.00%, 2/15/35		290		249
Standard Pacific Corp., 8.38%, 1/15/21		240		270
Taylor Morrison Communities, Inc./Monarch Communities, Inc., 5.25%, 4/15/21 (1)(2)		115		107
				11,262
Household Products/Wares – 1.2%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, 8.50%, 5/15/18		925		967
9.00%, 4/15/19		210		220
7.88%, 8/15/19		405		445
9.88%, 8/15/19		3,375		3,662
5.75%, 10/15/20		525		527
8.25%, 2/15/21		415		418
Spectrum Brands Escrow Corp., 6.63%, 11/15/22 (1)		2,150		2,231
				8,470
Internet – 2.4%
Ancestry.com, Inc., 11.00%, 12/15/20		6,020		6,863
CyrusOne L.P./CyrusOne Finance Corp., 6.38%, 11/15/22		3,998		3,968
Equinix, Inc., 5.38%, 4/1/23		530		501
GXS Worldwide, Inc., 9.75%, 6/15/15		5,020		5,158
				16,490

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Iron/Steel – 1.4%
Edgen Murray Corp., 8.75%, 11/1/20 (1)		$2,680		$2,720
Ryerson, Inc./Joseph T Ryerson & Son, Inc., 9.00%, 10/15/17		5,240		5,423
United States Steel Corp., 6.65%, 6/1/37		1,514		1,238
				9,381
Lodging – 2.3%
Caesars Entertainment Operating Co., Inc., 11.25%, 6/1/17		9,500		9,642
CityCenter Holdings LLC/CityCenter Finance Corp., 7.63%, 1/15/16		535		560
Felcor Lodging L.P., 5.63%, 3/1/23		1,060		990
MGM Resorts International, 7.63%, 1/15/17		520		581
6.75%, 10/1/20		1,000		1,050
7.75%, 3/15/22		1,135		1,230
Station Casinos LLC, 7.50%, 3/1/21		1,700		1,798
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 7.75%, 8/15/20		266		299
				16,150
Machinery - Construction & Mining – 0.1%
Terex Corp., 6.50%, 4/1/20		395		415
6.00%, 5/15/21		455		460
				875
Machinery - Diversified – 0.5%
Case New Holland, Inc., 7.88%, 12/1/17		1,400		1,628
Cleaver-Brooks, Inc., 8.75%, 12/15/19 (1)		740		799
Manitowoc (The) Co., Inc., 8.50%, 11/1/20		625		695
				3,122
Media – 6.5%
AMC Networks, Inc., 7.75%, 7/15/21		548		610
4.75%, 12/15/22		255		238

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Media – 6.5% – continued
CCO Holdings LLC/CCO Holdings Capital Corp., 7.00%, 1/15/19		$1,060		$1,122
8.13%, 4/30/20		250		272
5.25%, 3/15/21 (1)		275		264
5.13%, 2/15/23		263		241
Cequel Communications Holdings I LLC/Cequel Capital Corp., 6.38%, 9/15/20 (1)		1,535		1,566
5.13%, 12/15/21 (1)		1,425		1,343
Clear Channel Communications, Inc., 5.50%, 9/15/14		1,855		1,823
4.90%, 5/15/15		650		609
9.00%, 12/15/19		580		568
11.25%, 3/1/21		1,647		1,701
Clear Channel Worldwide Holdings, Inc., 7.63%, 3/15/20		3,040		3,116
7.63%, 3/15/20		850		878
6.50%, 11/15/22		2,855		2,898
6.50%, 11/15/22		1,940		1,979
CSC Holdings LLC, 7.63%, 7/15/18		435		498
Cumulus Media Holdings, Inc., 7.75%, 5/1/19		1,350		1,401
DISH DBS Corp., 4.25%, 4/1/18		2,045		2,048
5.13%, 5/1/20		2,855		2,826
6.75%, 6/1/21		800		841
5.88%, 7/15/22		1,520		1,497
Gannett Co., Inc., 9.38%, 11/15/17		135		142
7.13%, 9/1/18		1,525		1,632
5.13%, 10/15/19 (1)(2)		1,120		1,112
5.13%, 7/15/20 (1)(2)		800		784
RCN Telecom Services LLC/RCN Capital Corp., 8.50%, 8/15/20 (1)(2)		7,580		7,390
Sirius XM Radio, Inc., 4.25%, 5/15/20 (1)		1,640		1,533
5.88%, 10/1/20 (1)(2)		2,280		2,300
5.75%, 8/1/21 (1)(2)		125		124
Univision Communications, Inc., 6.88%, 5/15/19 (1)		1,125		1,204
				44,560

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Metal Fabrication/Hardware – 0.4%
Shale-Inland Holdings LLC/Shale-Inland Finance Corp., 8.75%, 11/15/19 (1)		$3,070		$3,009
Mining – 0.8%
Alcoa, Inc., 5.90%, 2/1/27		780		754
6.75%, 1/15/28		165		167
Century Aluminum Co., 7.50%, 6/1/21 (1)		5,000		4,625
				5,546
Office/Business Equipment – 0.8%
CDW LLC/CDW Finance Corp., 8.00%, 12/15/18		4,887		5,363
Oil & Gas – 5.1%
BreitBurn Energy Partners L.P./BreitBurn Finance Corp., 8.63%, 10/15/20		490		517
7.88%, 4/15/22		570		569
Chesapeake Energy Corp., 6.50%, 8/15/17		1,015		1,119
6.63%, 8/15/20		705		758
5.75%, 3/15/23		95		95
Cimarex Energy Co., 5.88%, 5/1/22		485		490
Concho Resources, Inc., 5.50%, 4/1/23		1,126		1,112
Denbury Resources, Inc., 8.25%, 2/15/20		395		434
EP Energy LLC/EP Energy Finance, Inc., 9.38%, 5/1/20		1,748		1,966
EP Energy LLC/Everest Acquisition Finance, Inc., 7.75%, 9/1/22		190		206
EXCO Resources, Inc., 7.50%, 9/15/18		2,400		2,286
Forest Oil Corp., 7.25%, 6/15/19		1,945		1,945
Halcon Resources Corp., 9.75%, 7/15/20		1,000		1,057
9.25%, 2/15/22 (1)(2)		10		10
Hercules Offshore, Inc., 10.25%, 4/1/19 (1)		925		1,036
8.75%, 7/15/21 (1)(2)		495		525

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Oil & Gas – 5.1% – continued
Legacy Reserves L.P./Legacy Reserves Finance Corp., 6.63%, 12/1/21 (1)		$2,150		$2,010
Linn Energy LLC/Linn Energy Finance Corp., 6.75%, 11/1/19 (1)		1,540		1,451
8.63%, 4/15/20		700		724
7.75%, 2/1/21		1,290		1,296
Memorial Production Partners L.P./Memorial Production Finance Corp., 7.63%, 5/1/21		370		358
Newfield Exploration Co., 5.75%, 1/30/22		1,595		1,591
5.63%, 7/1/24		870		842
Oasis Petroleum, Inc., 7.25%, 2/1/19		380		403
QEP Resources, Inc., 5.25%, 5/1/23		1,070		998
Range Resources Corp., 8.00%, 5/15/19		90		97
5.75%, 6/1/21		395		415
5.00%, 8/15/22		1,838		1,778
Rosetta Resources, Inc., 5.63%, 5/1/21		820		779
SandRidge Energy, Inc., 7.50%, 3/15/21		1,995		2,015
8.13%, 10/15/22		1,020		1,030
7.50%, 2/15/23		2,295		2,272
Sidewinder Drilling, Inc., 9.75%, 11/15/19 (1)		2,200		2,134
Whiting Petroleum Corp., 5.00%, 3/15/19		615		617
WPX Energy, Inc., 6.00%, 1/15/22		575		583
				35,518
Oil & Gas Services – 0.3%
Forum Energy Technologies, Inc., 6.25%, 10/1/21 (1)		2,170		2,184
Packaging & Containers – 0.8%
Ball Corp., 4.00%, 11/15/23		1,030		924
Berry Plastics Corp., 9.75%, 1/15/21		3,270		3,777

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Packaging & Containers – 0.8% – continued
Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16		$535		$602
				5,303
Pharmaceuticals – 1.3%
Endo Health Solutions, Inc., 7.00%, 7/15/19		515		531
Par Pharmaceutical Cos., Inc., 7.38%, 10/15/20 (1)		350		362
Valeant Pharmaceuticals International, 6.50%, 7/15/16 (1)(2)		1,290		1,335
6.75%, 10/1/17 (1)		460		491
6.75%, 8/15/18 (1)		465		498
6.88%, 12/1/18 (1)		545		576
6.38%, 10/15/20 (1)		4,030		4,191
7.25%, 7/15/22 (1)		740		788
				8,772
Pipelines – 0.8%
Access Midstream Partners L.P./ACMP Finance Corp., 5.88%, 4/15/21		300		308
6.13%, 7/15/22		825		848
4.88%, 5/15/23		615		578
El Paso LLC, 7.25%, 6/1/18		255		286
7.80%, 8/1/31		665		676
Energy Transfer Equity L.P., 7.50%, 10/15/20		720		770
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp., 4.50%, 7/15/23		618		583
Regency Energy Partners L.P./Regency Energy Finance Corp., 6.88%, 12/1/18		1,130		1,215
4.50%, 11/1/23 (1)		200		181
				5,445
Real Estate – 0.1%
Realogy Group LLC, 7.63%, 1/15/20 (1)		565		630
Real Estate Investment Trusts – 0.3%
Omega Healthcare Investors, Inc., 7.50%, 2/15/20		510		555
6.75%, 10/15/22		1,645		1,768
				2,323

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Retail – 5.2%
AmeriGas Finance LLC/AmeriGas Finance Corp., 6.75%, 5/20/20		$1,150		$1,222
7.00%, 5/20/22		1,486		1,545
Claire’s Stores, Inc., 8.88%, 3/15/19		320		342
9.00%, 3/15/19 (1)		7,870		8,716
Dillard’s, Inc., 7.75%, 7/15/26		495		537
7.75%, 5/15/27		465		498
Ferrellgas L.P./Ferrellgas Finance Corp., 9.13%, 10/1/17		1,295		1,358
Hillman Group (The), Inc., 10.88%, 6/1/18		5,130		5,540
Michaels FinCo Holdings LLC/Michaels FinCo, Inc., 7.50%, 8/1/18 (1)(2)(5)		620		628
New Albertsons, Inc., 7.75%, 6/15/26		150		122
6.63%, 6/1/28		165		119
7.45%, 8/1/29		2,050		1,645
Party City Holdings, Inc., 8.88%, 8/1/20 (1)		415		446
Rite Aid Corp., 10.25%, 10/15/19		295		332
9.25%, 3/15/20		530		602
8.00%, 8/15/20		1,327		1,483
6.75%, 6/15/21 (1)		3,600		3,740
Sears Holdings Corp., 6.63%, 10/15/18		3,125		2,945
Suburban Propane Partners L.P./Suburban Energy Finance Corp., 7.50%, 10/1/18		893		956
7.38%, 8/1/21		534		571
Toys R Us Property Co. II LLC, 8.50%, 12/1/17		1,265		1,325
Toys R Us, Inc., 7.38%, 10/15/18		1,150		992
				35,664
Semiconductors – 0.8%
Amkor Technology, Inc., 7.38%, 5/1/18		80		84
6.63%, 6/1/21		1,495		1,454
6.38%, 10/1/22		1,115		1,065

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Semiconductors – 0.8% – continued
Freescale Semiconductor, Inc., 9.25%, 4/15/18 (1)		$970		$1,050
8.05%, 2/1/20		1,670		1,758
				5,411
Software – 2.0%
Activision Blizzard, Inc., 5.63%, 9/15/21 (1)(2)		585		586
First Data Corp., 11.25%, 3/31/16		255		255
7.38%, 6/15/19 (1)		555		584
6.75%, 11/1/20 (1)		520		538
8.25%, 1/15/21 (1)		1,975		2,039
11.25%, 1/15/21 (1)		1,085		1,134
12.63%, 1/15/21		970		1,067
10.63%, 6/15/21 (1)(2)		995		1,010
11.75%, 8/15/21 (1)(2)		95		92
Healthcare Technology Intermediate, Inc., 7.38%, 9/1/18 (1)(2)(5)		460		470
Nuance Communications, Inc., 5.38%, 8/15/20 (1)		4,380		4,139
Sophia L.P./Sophia Finance, Inc., 9.75%, 1/15/19 (1)		1,545		1,676
				13,590
Telecommunications – 6.8%
Alcatel-Lucent USA, Inc., 6.50%, 1/15/28		50		42
6.45%, 3/15/29		4,595		3,883
CenturyLink, Inc., 5.63%, 4/1/20		80		78
6.45%, 6/15/21		868		864
7.60%, 9/15/39		1,155		1,031
Cincinnati Bell Telephone Co. LLC, 6.30%, 12/1/28		50		45
Crown Castle International Corp., 5.25%, 1/15/23		4,490		4,131
Frontier Communications Corp., 9.25%, 7/1/21		65		74
7.63%, 4/15/24		500		500
7.88%, 1/15/27		860		817
9.00%, 8/15/31		2,352		2,305
7.45%, 7/1/35		10		9
Hughes Satellite Systems Corp., 6.50%, 6/15/19		625		661

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
CORPORATE BONDS – 71.9% – continued
Telecommunications – 6.8% – continued
Level 3 Communications, Inc., 8.88%, 6/1/19		$1,355		$1,450
Level 3 Financing, Inc., 9.38%, 4/1/19		709		782
8.13%, 7/1/19		2,530		2,707
7.00%, 6/1/20		955		965
8.63%, 7/15/20		1,095		1,196
MetroPCS Wireless, Inc., 6.25%, 4/1/21 (1)(2)		685		688
6.63%, 4/1/23 (1)(2)		435		436
Qwest Capital Funding, Inc., 7.63%, 8/3/21		260		264
6.88%, 7/15/28		650		578
Qwest Corp., 6.75%, 12/1/21		170		183
6.88%, 9/15/33		1,888		1,829
SBA Telecommunications, Inc., 5.75%, 7/15/20		2,830		2,809
Sprint Capital Corp., 6.88%, 11/15/28		6,055		5,404
8.75%, 3/15/32		935		950
Sprint Communications, Inc., 9.00%, 11/15/18 (1)		245		287
7.00%, 8/15/20		350		356
Sprint Corp., 7.25%, 9/15/21 (1)(2)		2,435		2,459
7.88%, 9/15/23 (1)(2)		1,425		1,453
Syniverse Holdings, Inc., 9.13%, 1/15/19		760		819
tw telecom holdings, Inc., 5.38%, 10/1/22 (1)(2)		1,165		1,113
Windstream Corp., 7.88%, 11/1/17		2,370		2,643
7.75%, 10/15/20		1,055		1,089
7.75%, 10/1/21 (1)(2)		970		1,001
7.50%, 6/1/22		515		514
6.38%, 8/1/23		539		493
				46,908
Total Corporate Bonds
(Cost $492,143)				496,235

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.9%
Banks – 1.0%
Banco Santander Brasil S.A., 8.00%, 3/18/16 (1)(6)		$2,400		$1,012
Banco Santander Chile, 6.50%, 9/22/20 (1)(7)		550,000		1,078
Export-Import Bank of Korea, 4.00%, 11/26/15 (1)(8)		92,000		2,191
HBOS PLC, 6.00%, 11/1/33 (1)(2)		200		188
Royal Bank of Scotland Group PLC, 5.50%, 12/31/13 (9)		290		308
6.13%, 12/15/22		2,360		2,378
				7,155
Building Materials – 0.6%
Ainsworth Lumer Co. Ltd., 7.50%, 12/15/17(1) (2)		3,248		3,487
Corp. GEO S.A.B. de C.V., 8.88%, 3/27/22 (1)(2)		1,400		196
Desarrolladora Homex S.A.B. de C.V., 9.75%, 3/25/20 (1)		1,140		274
Urbi Desarrollos Urbanos S.A.B. de C.V., 9.50%, 1/21/20 (1)(10)		315		54
9.75%, 2/3/22 (1)(10)		1,600		272
				4,283
Chemicals – 0.0%
INEOS Group Holdings S.A., 6.13%, 8/15/18 (1)(2)		230		225
Computers – 0.2%
Seagate HDD Cayman, 7.00%, 11/1/21		885		982
Electric – 0.1%
Enel S.p.A., 8.75%, 9/24/73 (1)(2)		723		732
Electronics – 0.2%
Flextronics International Ltd., 4.63%, 2/15/20		635		616
5.00%, 2/15/23		1,035		983
				1,599
Engineering & Construction – 0.2%
Odebrecht Finance Ltd., 8.25%, 4/25/18 (1)(6)		900		337
4.38%, 4/25/25 (1)		800		694
				1,031

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.9% – continued
Entertainment – 0.6%
Great Canadian Gaming Corp., 6.63%, 7/25/22 (1)(11)		$4,150		$4,108
Food – 0.1%
BRF S.A., 7.75%, 5/22/18 (1)(6)		1,800		648
Cosan Luxembourg S.A., 9.50%, 3/14/18 (1)(2)(6)		600		251
				899
Holding Companies - Diversified – 0.0%
Nielsen Co. Luxembourg SARL (The), 5.50%, 10/1/21 (1)(2)		280		280
Iron/Steel – 1.0%
ArcelorMittal, 5.75%, 8/5/20		2,671		2,738
7.25%, 3/1/41		3,260		2,983
Essar Steel Algoma, Inc., 9.88%, 6/15/15 (1)(2)		1,605		1,260
				6,981
Mining – 0.2%
Barminco Finance Pty Ltd., 9.00%, 6/1/18 (1)(2)		915		835
FMG Resources August 2006 Pty Ltd., 8.25%, 11/1/19 (1)		385		415
				1,250
Miscellaneous Manufacturing – 0.1%
Bombardier, Inc., 7.45%, 5/1/34 (1)		344		342
Multi-National – 0.2%
European Bank for Reconstruction & Development, 9.00%, 4/28/14 (6)		3,525		1,589
Municipal – 0.2%
Autonomous Community of Madrid Spain, 4.30%, 9/15/26 (9)		1,070		1,282
Oil & Gas – 0.4%
Connacher Oil and Gas Ltd., 8.75%, 8/1/18 (1)(11)		800		551
8.50%, 8/1/19 (1)(2)		775		554
MEG Energy Corp., 6.38%, 1/30/23 (1)(2)		610		598
OGX Austria GmbH, 8.50%, 6/1/18 (1)(2)		3,050		488

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.9% – continued
Oil & Gas – 0.4% – continued
8.38%, 4/1/22 (1)		$1,800		$288
				2,479
Sovereign – 2.1%
Brazilian Government International Bond, 10.25%, 1/10/28 (6)		2,000		901
Italy Buoni Poliennali Del Tesoro, 5.50%, 11/1/22 (9)		570		834
5.00%, 8/1/34 (9)		110		149
Mexican Bonos, 7.75%, 12/14/17 (3)		3,400		290
8.00%, 12/7/23 (3)		13,500		1,189
7.75%, 11/13/42 (3)		40,780		3,321
Philippine Government International Bond, 6.25%, 1/14/36 (8)		40,000		1,031
Portugal Obrigacoes do Tesouro OT, 4.80%, 6/15/20 (1)(2)(9)		25		31
3.85%, 4/15/21 (1)(2)(9)		225		253
4.95%, 10/25/23 (1)(2)(9)		2,310		2,732
Spain Government Bond, 4.65%, 7/30/25 (9)		2,250		3,099
Uruguay Government International Bond, 3.70%, 6/26/37 (12)		11,725		850
				14,680
Telecommunications – 1.7%
America Movil S.A.B. de C.V., 6.45%, 12/5/22 (3)		4,000		290
8.46%, 12/18/36 (3)		3,400		251
Axtel S.A.B. de C.V., 7.00%, 1/31/20 (1)(2)		722		675
Bakrie Telecom Pte Ltd., 11.50%, 5/7/15 (1)(2)		1,700		476
Eircom Finance Ltd., 9.25%, 5/15/20 (1)(2)(9)		300		406
Intelsat Jackson Holdings S.A., 8.50%, 11/1/19		895		973
5.50%, 8/1/23 (1)(2)		3,225		3,015
Intelsat Luxembourg S.A., 7.75%, 6/1/21 (1)(2)		790		818
8.13%, 6/1/23 (1)(2)		560		591
Portugal Telecom International Finance B.V., 4.50%, 6/16/25 (9)		250		299
Telecom Italia Capital S.A., 6.38%, 11/15/33		100		86

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 65 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
FOREIGN ISSUER BONDS – 8.9% – continued
Telecommunications – 1.7% – continued
6.00%, 9/30/34		$1,230		$1,012
Telefonica Emisiones S.A.U., 7.05%, 6/20/36		975		1,035
UPC Holding B.V., 9.88%, 4/15/18 (1)		240		260
UPCB Finance III Ltd., 6.63%, 7/1/20 (1)(2)		710		753
Virgin Media Secured Finance PLC, 5.38%, 4/15/21 (1)		520		507
				11,447
Total Foreign Issuer Bonds
(Cost $69,365)				61,344
TERM LOANS – 3.6%
Advertising – 0.3%
Van Wagner Communications LLC, 6.25%, 8/3/18		1,970		2,000
Auto Manufacturers – 0.2%
Navistar, Inc., 5.75%, 8/17/17		1,269		1,281
Chemicals – 0.1%
US Coatings Acquisition, Inc., 4.75%, 2/1/20		493		493
Entertainment – 0.4%
Graton Economic Development Authority, 9.00%, 8/22/18		580		605
Pinnacle Entertainment, Inc., 3.75%, 8/5/20		313		314
Scientific Games International, Inc., 4.25%, 5/22/20		2,185		2,166
				3,085
Food – 0.7%
Milk Specialties Co., 7.00%, 11/9/18		4,975		5,000
Healthcare - Services – 0.2%
DaVita HealthCare Partners, Inc., 4.00%, 11/1/19		271		272
United Surgical Partners International, Inc., 4.75%, 4/3/19		978		983
				1,255

	PRINCIPAL AMOUNT (000s)		VALUE (000s)
TERM LOANS – 3.6% – continued
Lodging – 0.4%
Hilton Worldwide, Inc., 4.00%, 9/23/20		$2,020		$2,016
Station Casinos LLC, 5.00%, 3/1/20		751		756
				2,772
Media – 0.2%
Clear Channel Communications, Inc., 3.83%, 1/29/16		1,060		998
Univision Communications, Inc., 4.00%, 3/1/20		445		441
				1,439
Oil & Gas – 0.5%
Chesapeake Energy Corp., 5.75%, 12/2/17		3,208		3,262
Oil & Gas Services – 0.1%
Pinnacle Holdco Sarl, 3.75%, 7/30/20		600		604
Real Estate – 0.3%
Realogy Group LLC, 4.50%, 3/5/20		1,886		1,894
Software – 0.1%
Ellucian, 4.50%, 7/19/18		372		373
First Data Corp., 4.18%, 3/24/17		422		418
				791
Telecommunications – 0.1%
Integra Telecom Holdings, Inc., 5.25%, 2/22/19		557		560
Level 3 Financing, Inc., 4.00%, 1/15/20		415		415
				975
Total Term Loans
(Cost $24,535)				24,851
	NUMBER OF SHARES		VALUE (000s)
PREFERRED STOCKS – 0.6%
Banks – 0.5%
Ally Financial, Inc., 7.00% (1)(2)(13)		3,605		$3,463

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 66 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
PREFERRED STOCKS – 0.6% – continued
Home Builders – 0.0%
Hovnanian Enterprises, Inc., 7.65% *		10,100		$146
Real Estate Investment Trusts – 0.1%
iStar Financial, Inc., 7.65%		850		20
iStar Financial, Inc., 7.80%		11,500		269
iStar Financial, Inc., 7.88%		19,875		469
				758
Total Preferred Stocks
(Cost $3,905)				4,367
CONVERTIBLE PREFERRED STOCKS – 1.0%
Auto Manufacturers – 0.3%
General Motors Co., 4.75%		35,545		1,783
Auto Parts & Equipment – 0.1%
Goodyear Tire & Rubber (The) Co., 5.88%		9,419		600
Banks – 0.0%
Bank of America Corp., 7.25%		196		212
Iron/Steel – 0.2%
Cliffs Natural Resources, Inc., 7.00%		55,657		1,100
Oil & Gas – 0.0%
SandRidge Energy, Inc., 7.00% *		2,348		234
Pipelines – 0.2%
El Paso Energy Capital Trust I, 4.75%		24,025		1,348
Real Estate Investment Trusts – 0.1%
Weyerhaeuser Co., 6.38%		9,165		486
Telecommunications – 0.1%
Lucent Technologies Capital Trust I, 7.75%		1,000		1,003
Total Convertible Preferred Stocks
(Cost $5,477)				6,766
COMMON STOCKS – 0.0%
Commercial Services – 0.0%
United Rentals, Inc. *		2,047		119
Total Common Stocks
(Cost $70)				119

	NUMBER OF SHARES		VALUE (000s)
OTHER – 0.0% (14)
Escrow GCB Dynegy Holdings		1,810,000		$–
Total Other
(Cost $– )				–
INVESTMENT COMPANIES – 7.6%
Northern Institutional Funds – Diversified Assets Portfolio, 0.01% (15)(16)		52,346,296		52,346
Total Investment Companies
(Cost $52,346)				52,346
	PRINCIPAL AMOUNT (000s)		VALUE (000s)
SHORT-TERM INVESTMENTS – 0.1%
U.S. Treasury Bill, 0.07%, 1/30/14 (17)		$525		$525
Total Short-Term Investments
(Cost $525)				525
Total Investments – 99.8%
(Cost $682,585)				688,499
Other Assets less Liabilities – 0.2%				1,335
NET ASSETS – 100.0%				$689,834

(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 September 30, 2013, the value of these restricted illiquid securities amounted to approximately $75,627,000 or 11.0% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Activision Blizzard, Inc., 5.63%, 9/15/21	9/12/13		$585
ADT (The) Corp., 6.25%, 10/15/21	9/24/13		490
Ainsworth Lumer Co. Ltd., 7.50%, 12/15/17	11/14/12-11/15/12		3,273
Ally Financial, Inc., 7.00%	11/3/10-7/13/12		3,160
American Residential Services LLC/ARS Finance, Inc., 12.00%, 4/15/15	4/9/10		723
Arch Coal, Inc., 9.88%, 6/15/19	11/14/12-3/12/13		530

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 67 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Axtel S.A.B. de C.V., 7.00%, 1/31/20	9/25/09-10/21/11		$943
Bakrie Telecom Pte Ltd., 11.50%, 5/7/15	4/30/10-9/13/11		1,559
Barminco Finance Pty Ltd., 9.00%, 6/1/18	5/13/13		915
Connacher Oil and Gas Ltd., 8.50%, 8/1/19	8/8/11-7/16/12		671
Corp. GEO S.A.B. de C.V., 8.88%, 3/27/22	3/21/12-4/17/13		1,164
Cosan Luxembourg S.A., 9.50%, 3/14/18	3/7/13		305
CPG Merger Sub LLC, 8.00%, 10/1/21	9/24/13		345
Crestview DS Merger Sub II, Inc., 10.00%, 9/1/21	8/14/13		672
Eircom Finance Ltd., 9.25%, 5/15/20	5/9/13		300
Enel S.p.A, 8.75%, 9/24/73	9/17/13		717
Essar Steel Algoma, Inc., 9.88%, 6/15/15	12/7/09-7/24/12		1,426
First Data Corp., 10.63%, 6/15/21	3/26/13		995
First Data Corp., 11.75%, 8/15/21	7/11/13		91
Foresight Energy LLC/Foresight Energy Corp., 7.88%, 8/15/21	8/16/13		10,176
Gannett Co., Inc., 5.13%, 10/15/19	9/26/13		1,106
Gannett Co., Inc., 5.13%, 7/15/20	7/24/13		789
General Motors Co., 4.88%, 10/2/23	9/24/13-9/27/13		882
General Motors Co., 6.25%, 10/2/43	9/24/13		310
General Motors Financial Co., Inc., 3.25%, 5/15/18	5/7/13		335
Halcon Resources Corp., 9.25%, 2/15/22	8/8/13		10
HBOS PLC, 6.00%, 11/1/33	11/10/11		130
Healthcare Technology Intermediate, Inc., 7.38%, 9/1/18	8/1/13-9/10/13		463
Hercules Offshore, Inc., 8.75%, 7/15/21	8/7/13-8/29/13		528
INEOS Group Holdings S.A., 6.13%, 8/15/18	5/2/13		230

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Intelsat Jackson Holdings S.A., 5.50%, 8/1/23	5/21/13-8/7/13		$3,137
Intelsat Luxembourg S.A., 7.75%, 6/1/21	3/20/13-6/6/13		793
Intelsat Luxembourg S.A., 8.13%, 6/1/23	3/20/13-3/21/13		560
KeHE Distributors LLC/KeHE Finance Corp., 7.63%, 8/15/21	7/30/13		1,145
Lennar Corp., 3.25%, 11/15/21	11/23/11		1,165
MEG Energy Corp., 6.38%, 1/30/23	8/7/13-9/10/13		609
MetroPCS Wireless, Inc., 6.25%, 4/1/21	3/8/13		685
MetroPCS Wireless, Inc., 6.63%, 4/1/23	3/8/13		435
Michaels FinCo Holdings LLC/ Michaels FinCo, Inc., 7.50%, 8/1/18	7/24/13-7/30/13		621
Mohegan Tribal Gaming Authority, 9.75%, 9/1/21	8/6/13-9/11/13		976
MPH Intermediate Holding Co. 2,8.38%, 8/1/18	7/22/13-7/24/13		705
Nielsen Co. Luxembourg SARL (The), 5.50%, 10/1/21	9/20/13		280
OGX Austria GmbH, 8.50%, 6/1/18	5/26/11-4/17/13		2,949
PNK Finance Corp., 6.38%, 8/1/21	7/30/13		940
Portugal Obrigacoes do Tesouro OT, 4.80%, 6/15/20	9/20/10		22
Portugal Obrigacoes do Tesouro OT, 3.85%, 4/15/21	11/9/12		162
Portugal Obrigacoes do Tesouro OT, 4.95%, 10/25/23	5/10/11-11/8/12		1,487
PQ Corp., 8.75%, 5/1/18	11/1/12-7/11/13		2,600
RCN Telecom Services LLC/RCN Capital Corp., 8.50%, 8/15/20	8/5/13-9/9/13		7,592
Reichhold Industries, Inc., 9.00%, 5/8/17	3/16/10-5/2/13		648
Sierra Timeshare Receivables Funding LLC, Series 2011-3A, Class C, 9.31%, 7/20/28	11/4/11		439

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 68 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000s)
Sirius XM Radio, Inc., 5.88%, 10/1/20	9/19/13		$2,280
Sirius XM Radio, Inc., 5.75%, 8/1/21	9/11/13		124
Springleaf Finance Corp., 7.75%, 10/1/21	9/17/13		1,105
Springleaf Finance Corp., 8.25%, 10/1/23	9/17/13		440
Sprint Corp., 7.25%, 9/15/21	9/4/13-9/10/13		2,437
Sprint Corp., 7.88%, 9/15/23	9/4/13		1,425
Stearns Holdings, Inc., 9.38%, 8/15/20	7/30/13		282
Taylor Morrison Communities, Inc./Monarch Communities, Inc., 5.25%, 4/15/21	7/11/13-7/15/13		111
Tenet Healthcare Corp., 6.00%, 10/1/20	9/13/13-9/18/13		1,450
Tenet Healthcare Corp., 8.13%, 4/1/22	9/13/13		1,870
tw telecom holdings, Inc., 5.38%, 10/1/22	8/12/13		1,121
UPCB Finance III Ltd., 6.63%, 7/1/20	2/8/13		756
Valeant Pharmaceuticals International, 6.50%, 7/15/16	7/19/13-7/25/13		1,342
Walter Energy, Inc., 9.50%, 10/15/19	9/19/13-9/20/13		275
Windstream Corp., 7.75%, 10/1/21	9/12/13-9/18/13		997

(3) Principal amount is denoted in Mexican Peso.

(4) Principal amount is denoted in Australian Dollar.

(5) Security is payment in-kind bond.

(6) Par value is denoted in Brazilian Real.

(7) Principal amount is denoted in Chilean Peso.

(8) Principal amount is denoted in Philippine Peso.

(9) Principal amount is denoted in Euro.

(10) Issuer has defaulted on terms of debt obligation.

(11) Principal amount is denoted in Canadian Dollar.

(12) Principal amount is denoted in Uruguayan Peso.

(13) Perpetual maturity security.

(14) Security listed as “escrow” is considered to be worthless.

(15) At March 31, 2013, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $23,382,000 with net purchases of approximately $28,964,000 during the six months ended September 30, 2013.

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

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2013, the Multi-Manager High Yeild Opportunity Fund had open futures contracts as follow:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000s)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000s)
U.S. Treasury Long Bond		(8)		$1,067		Short		12/13		$(13)

At September 30, 2013, 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%
AA		0.1
A		0.8
BBB		4.4
BB		20.3
B		42.6
CCC or Below		24.0
Cash Equivalents		7.6
Total		100.0%

*Credit quality ratings are compiled from two external rating agencies: Moody’s and Standard & Poor’s. The Fund reports 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 September 30, 2013, 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		95.7%
All other currencies less than 5%		4.3
Total		100.0%

At September 30, 2013, the Multi-Manager High Yield Opportunity Fund had outstanding forward 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		6,755	United States Dollar		8,928		10/31/13		$(211)

* Amount rounds to less than one thousand.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 69 MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY 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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

INVESTMENTS	LEVEL 1 (000s)			LEVEL 2 (000s)			LEVEL 3 (000s)		TOTAL (000s)
Asset-Backed Securities		$–			$17,457	(1)		$–		$17,457
Convertible Bonds
Telecommunications		–			941			64		1,005
All Other Industries		–			23,484	(1)		–		23,484
Corporate Bonds		–			496,235	(1)		–		496,235
Foreign Issuer Bonds
Banks		–			3,885			3,269		7,154
Food		–			648			252		900
Sovereign		–			12,748			1,932		14,680
All Other Industries		–			38,610	(1)		–		38,610
Term Loans		–			24,851	(1)		–		24,851
Preferred Stocks
Banks		–			3,463			–		3,463
All Other Industries		904	(1)		–			–		904
Convertible Preferred Stocks
Oil & Gas		–			234			–		234
Telecommunications		–			1,004			–		1,004
All Other Industries		5,528	(1)		–			–		5,528
Common Stocks		119	(1)		–			–		119
Investment Companies		52,346			–			–		52,346
Short-Term Investments		–			525			–		525
Total Investments		$58,897			$624,085			$5,517		$688,499
OTHER FINANCIAL INSTRUMENTS
Liabilities
Futures Contracts		$(13	)		$–			$–		$(13	)
Forward Foreign Currency Exchange Contracts		–			(211	)		–		(211	)
Total Other Financial Instruments		$(13	)		$(211	)		$–		$(224	)

⁽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 September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 70 NORTHERN FUNDS SEMIANNUAL REPORT

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2013 (UNAUDITED)

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

	BALANCE AS OF 3/31/13 (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 9/30/13 (000s)
Convertible Bonds
Telecommunications	$	64	$	–	$	–		$	–	$	–		$	–	$	–		$	–	$	–	$	64
Foreign Issuer Bonds
Banks		3,531		–		–			–		(262	)		–		–			–		–		3,269
Food		306		–		–			–		(54	)		–		–			–		–		252
Multi-National		–		–		–			–		–			–		–			–		–		–
Sovereign		4,897		–		(66	)		–		(598	)		–		(2,301	)		–		–		1,932
Total	$	8,798	$	–	$	(66	)	$	–	$	(914	)	$	–	$	(2,301	)	$	–	$	–	$	5,517

The Fund valued the securities included in the balance as of 9/30/13 above using an evaluated price from a third party provider. The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at September 30, 2013 was approximately $(384,000), which is included in the Statement of Operations as part of net change in unrealized appreciation (depreciation) on investments.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 71 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Multi-Manager Emerging Markets Equity, Multi-Manager Global Listed Infrastructure, Multi-Manager Global Real Estate, Multi-Manager International Equity, Multi-Manager Large Cap, Multi-Manager Mid Cap, Multi-Manager Small Cap and Multi-Manager High Yield Opportunity Funds (each a “Fund” and collectively, the “Funds”) are separate, investment portfolios of the Trust, all of which are diversified portfolios, except for the Multi-Manager Global Listed Infrastructure Fund which is a non-diversified portfolio of the Trust. Non-diversified portfolios may invest a relatively high percentage of their net assets in obligations of a limited number of issuers. Each of the Funds is presented herein.

The Northern Trust Company of Connecticut (“NTCC”) is a subsidiary of Northern Trust Corporation and a subsidiary of Northern Trust Investments, Inc. (“NTI”). NTI is a subsidiary of The Northern Trust Company (“Northern Trust”). NTCC and NTI serve jointly as the investment advisers for each of the Funds. Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3.00 P.M. Central Time, on each day the NYSE is open for trading.

A) VALUATION OF SECURITIES AND DERIVATIVES CONTRACTS Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair value of such securities or broker-provided prices. Such prices may be determined by taking into account other similar securities’ prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities.

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

Shares of open-end investment companies are valued at their NAV. Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided bid prices, as are swaps, caps, collars and floors. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI and NTCC, as authorized by the Board of Trustees (the “Board”), have determined approximates fair value.

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

MULTI-MANAGER FUNDS 72 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

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 of the Funds’ Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. The 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.

The NTGI PVC is responsible for making the final determination of the fair value of the security. In making its determination, the NTGI PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the company; the cost of the investment; information as to any transaction or offers with respect to the security; market value of a similar freely-traded security; and news events. NTI 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. The 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, if any, 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.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) FUTURES CONTRACTS Certain Funds invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. When used as a hedge, a Fund will sell a futures contract in order to offset a decrease in the fair value of its portfolio securities that might otherwise result from a market decline. A Fund will do so either to hedge the value of its portfolio securities as a whole, or to protect against declines occurring prior to sales of securities in the value of the securities to be sold. Conversely, a Fund will purchase a futures contract as a hedge in anticipation of purchases of securities. In addition, a Fund will utilize futures contracts in anticipation of changes in the composition of its portfolio holdings. A Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Futures are marked to market each day with the change in value reflected in the unrealized gains or losses. Risk may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract. The Statements of Operations include any realized gains or losses, on closed futures contracts, in Net realized gains (losses) on futures contracts and any unrealized gains or losses, on open futures contracts, in Net change in unrealized appreciation (depreciation) on futures contracts. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

At September 30, 2013, the Multi-Manager Global Listed Infrastructure, Multi-Manager International Equity, Multi-Manager Large Cap, Multi-Manager Mid Cap, Multi-Manager Small Cap and Multi-Manager High Yield Opportunity Funds had entered into exchange-traded long futures contracts. The aggregate fair value of securities pledged to cover margin requirements for open positions was approximately $760,000, $4,350,000, $1,080,000, $995,000, $585,000 and $525,000, respectively. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

C) FOREIGN CURRENCY TRANSLATION Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot rates on the NYSE, generally at 3:00 P.M. Central Time. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations in Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments. The realized gains or losses, if any, on translation of other assets and liabilities denominated in foreign currencies are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.

D) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS Certain Funds are authorized to enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge against either specific transactions or portfolio positions, or as a

NORTHERN FUNDS SEMIANNUAL REPORT 73 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

cross-hedge transaction or for speculative purposes. The objective of a Fund’s foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of a Fund’s foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are marked-to-market daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on foreign currency translations in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in Net realized gains (losses) on foreign currency transactions in the Statements of Operations.

Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A Fund bears the market risk from changes in foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. Further information on the impact of these positions on the Funds’ financial statements can be found in Note 9.

E) WHEN-ISSUED/DELAYED DELIVERY SECURITIES Certain Funds purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to the Fund until settlement takes place. At the time the Fund enters into this type of transaction, it is required to segregate collateral or designate on its books and records cash or other liquid assets having a fair value at least equal to the amount of the commitment. The Funds identify securities as segregated with a value that meets or exceeds the value of the commitment. When-issued securities at September 30, 2013, if any, are noted in each Fund’s Schedule of Investments and in aggregate as Payable for when-issued securities, in each Fund’s Statement of Assets and Liabilities.

F) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. 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. Cost of investments includes amortization of premiums and accretion of discounts, if any. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available. Distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are comprised of return of capital, capital gains and income. The actual character of the amounts received during the year are not known until the fiscal year end. A Fund records the character of distributions received from the REITs during the year based on estimates available. A Fund’s characterization may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.

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

H) REDEMPTION FEES The Multi-Manager Emerging Markets Equity, Multi-Manager Global Listed Infrastructure, Multi-Manager Global Real Estate, Multi-Manager International Equity and Multi-Manager High Yield Opportunity Funds each charge a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Funds use a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Funds and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Funds. The redemption fee may be collected by deduction from the redemption proceeds, or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Funds’ prospectuses.

Redemption fees were approximately $1,000 and $54,000 for the six months ended September 30, 2013, for the Multi-Manager Global Real Estate and Multi-Manager High Yield Opportunity Funds, respectively. Redemption fees were less than $500 for the six months ended September 30, 2013, for the Multi-Manager Emerging Markets Equity and Multi-Manager International Equity Funds, respectively. There were no redemption fees for the six months ended September 30, 2013 for the Multi-Manager Global Listed Infrastructure Fund. Redemption fees were

MULTI-MANAGER FUNDS 74 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

approximately $1,000, $1,000, $1,000 and $16,000 for the fiscal year ended March 31, 2013, for the Multi-Manager Emerging Markets Equity, Multi-Manager Global Real Estate, Multi-Manager International Equity and Multi-Manager High Yield Opportunity Funds, respectively. There were no redemption fees for the period ended March 31, 2013 for the Multi-Manager Global Listed Infrastructure Fund. These amounts are included in Payments for Shares Redeemed in Note 8 – Capital Share Transactions. The impact from redemption fees paid to each Fund was less than $0.001 per share.

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

	DECLARATION AND PAYMENT FREQUENCY
Multi-Manager Emerging Markets Equity		Annually
Multi-Manager Global Listed Infrastructure		Quarterly
Multi-Manager Global Real Estate		Quarterly
Multi-Manager International Equity		Annually
Multi-Manager Large Cap		Quarterly
Multi-Manager Mid Cap		Annually
Multi-Manager Small Cap		Annually
Multi-Manager High Yield Opportunity		Monthly

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts to reflect differences between financial reporting and federal income tax basis distributions. These reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to paydowns, net operating losses, Section 988 currency gains and losses, Passive Foreign Investment Companies (“PFICs”) gains and losses, recharacterization of dividends received from investments in REITs, recharacterization of distributions received from investments in Master Limited Partnerships (“MLPs”), expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the NAVs per share of the Funds. At March 31, 2013, the following reclassifications were recorded:

Amounts in thousands	UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)			ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS (LOSSES)			CAPITAL STOCK
Multi-Manager Emerging Markets Equity		$4,058			$(4,058	)		$  —
Multi-Manager Global Listed Infrastructure		53			(53	)		—
Multi-Manager Global Real Estate		354			(354	)		—
Multi-Manager International Equity		2,193			(2,193	)		—
Multi-Manager Mid Cap		(40	)		(4,828	)		4,868
Multi-Managers Small Cap		2,629			(2,629	)		—
Multi-Manager High Yield Opportunity		(170	)		170			—

J) FEDERAL INCOME TAXES No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

The following Funds have elected to defer net capital losses and/or late year losses incurred from November 1, 2012 through November 30, 2012, the Funds’ last tax year ends, as having arisen on the first day of the following tax year:

Amounts in thousands
Multi-Manager Global Listed Infrastructure	$	68
Multi-Manager Global Real Estate		1,525

For the period subsequent to October 31, 2012, through the fiscal year ended March 31, 2013, the following Funds incurred net capital losses and/or late year ordinary losses which each Fund intends to treat as having been incurred in the following fiscal year:

Amounts in thousands
Multi-Manager Emerging Markets Equity	$4,613
Multi-Manager Large Cap	2,132
Multi-Manager Small Cap	232

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Funds for the fiscal year ended March 31, 2012,

NORTHERN FUNDS SEMIANNUAL REPORT 75 MULTI-MANAGER FUNDS

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NOTES TO THE FINANCIAL STATEMENTS continued

and for the Multi-Manager Global Listed Infrastructure Fund, for the period ended March 31, 2013. Consequently, capital losses incurred by the Funds in taxable years beginning with the taxable year ended March 31, 2012 or taxable year or period ended November 30, 2012, as applicable can be carried forward for an unlimited period. However, capital losses incurred by the Funds in taxable years beginning before the taxable year ended March 31, 2012 or taxable year or period ended November 30, 2012, as applicable with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable year ended March 31, 2012 or taxable year or period ended November 30, 2012, as applicable without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Capital losses incurred that will be carried forward under the provisions of the Act are as follows:

Amounts in thousands	SHORT-TERM CAPITAL LOSS CARRYFORWARD		LONG-TERM CAPITAL LOSS CARRYFORWARD
Multi-Manager Emerging Markets Equity		$43,073		$1,115
Multi-Manager International Equity		118,451		57,278

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

At March 31, 2013, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:

Amounts in thousands	MARCH 31, 2017*		MARCH 31, 2018
Multi-Manager International Equity		$  —		$143,680
Multi-Manager Mid Cap		8,280		—

* Amount includes acquired capital loss carryovers which may be limited under current tax laws, expiring March 31, 2017.

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

At March 31, 2013, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:

	UNDISTRIBUTED
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAINS
Multi-Manager Emerging Markets Equity		$2,735		$  —		$219,114
Multi-Manager International Equity		11,921		—		247,433
Multi-Manager Large Cap		122		22,837		140,605
Multi-Manager Mid Cap		5,050		77,683		196,472
Multi-Manager Small Cap		3,070		10,007		84,672
Multi-Manager High Yield Opportunity		8,033		4,450		35,869

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

The tax components of undistributed net ordinary income, net long-term capital gains and unrealized gains (losses) at November 30, 2012, the Funds’ last tax period end and tax year end, respectively, were as follows:

	UNDISTRIBUTED
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAINS (LOSSES)
Multi-Manager Global Listed Infrastructure		$629		$  —		$(698	)
Multi-Manager Global Real Estate		20,078		40,916		180,807

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

The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Multi-Manager Emerging Markets Equity		$25,499		$1
Multi-Manager International Equity		39,798		—
Multi-Manager Large Cap		19,916		95,703
Multi-Manager Mid Cap		7,000		36,554
Multi-Manager Small Cap		3,500		8,190
Multi-Manager High Yield Opportunity		46,596		6,280

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

MULTI-MANAGER FUNDS 76 NORTHERN FUNDS SEMIANNUAL REPORT

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SEPTEMBER 30, 2013 (UNAUDITED)

The tax character of distributions paid during the fiscal year ended March 31, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Multi-Manager Emerging Markets Equity		$62,501		$187,602
Multi-Manager International Equity		43,000		—
Multi-Manager Large Cap		6,068		31,795
Multi-Manager Mid Cap		1,319		31,120
Multi-Manager Small Cap		1,846		46,671
Multi-Manager High Yield Opportunity		47,525		11,845

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

The tax character of distributions paid during the Multi-Manager Global Real Estate Fund’s tax years ended November 30, 2012 and November 30, 2011 was designated for the purpose of the dividends paid deductions as follows:

	NOVEMBER 30, 2012 AND NOVEMBER 30, 2011 DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Multi-Manager Global Real Estate (2012)		$11,546		$42,055
Multi-Manager Global Real Estate (2011)		16,632		48,695

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

As of March 31, 2013, no Fund had uncertain tax positions that would require financial statement recognition or disclosure. The Funds’ federal tax returns, except for the Multi-Manager Global Real Estate Fund, filed for the fiscal years ended March 31, 2010 through March 31, 2012 remain subject to examination by the Internal Revenue Service. The Multi-Manager Global Real Estate Fund’s federal tax returns for the tax years ended November 30, 2009 through November 30, 2011 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Funds will be recorded as Interest expense on the Statements of Operations.

K) NETTING AGREEMENTS The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allows the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis. As of September 30, 2013, the Funds have not invested in any portfolio securities or entered into any derivative transactions, other than forward foreign currency exchange contracts as described above, with gross exposures on the Statement of Assets and Liabilities, that could be netted subject to netting agreements. As of September 30, 2013, there were no open forward foreign currency exchange contracts subject to netting.

L) OTHER RISKS Certain Funds may invest in emerging market securities. Additional risks are involved when a Fund invests its assets in countries with emerging economies or securities markets. These countries generally are located in the Asia and Pacific regions, the Middle East, Eastern Europe, Central America, South America and Africa. Political and economic structures in many of these countries may lack the social, political and economic stability characteristics of more developed countries. In general, the securities markets of these countries are less liquid, subject transactions to greater price volatility and have smaller market capitalizations. As a result, the risks presented by investments in these countries are heightened.

The Multi-Manager Global Listed Infrastructure Fund invests in MLPs. The benefits derived from the Fund’s investment in MLPs is largely dependent on the MLPs being treated as partnerships for federal income tax purposes. If any of the MLPs held by the Fund were treated as corporations for U.S. federal income tax purposes, the after-tax return to the Fund with respect to its investments in such MLPs would be materially reduced, causing a decline in the value of the common stock. The Fund must include its allocable share of an MLP’s taxable income in its reportable taxable income, whether or not it receives a distribution in cash from the MLP. In such case, the Fund may have to liquidate securities to make required distributions to shareholders.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, whom are beneficial owners of shares of the Funds. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Funds beneficially owned by their customers. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2013.

These expenses are included in the Statements of Operations under Shareholder servicing fees for the six months ended September 30, 2013.

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NOTES TO THE FINANCIAL STATEMENTS continued

4. BANK BORROWINGS

The Trust has entered into a $150,000,000 senior unsecured revolving credit facility on November 29, 2012, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statements of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Funds did not have any outstanding loans.

When utilized, the average dollar amounts of the borrowings and the weighted average interest rates for the six months ended September 30, 2013, on these borrowings were:

Amounts in thousands	DOLLAR AMOUNT		RATE
Multi-Manager Global Real Estate		$18,100		1.18	%
Multi-Manager Large Cap		14,200		1.18	%
Multi-Manager Small Cap		37,700		1.18	%
Multi-Manager High Yield Opportunity		25,771		1.19	%

No other Fund had any borrowings or incurred any interest expense during the six months ended September 30, 2013.

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment advisers are entitled to receive a joint advisory fee, computed daily and payable monthly, at annual rates set forth in the tables below (expressed as a percentage of each Fund’s respective average daily net assets). During the six months ended September 30, 2013, the investment advisers contractually agreed to reimburse a portion of each Fund’s expenses (other than acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses and interest, if any) as shown on the accompanying Statements of Operations, to adhere to the expense limitations set forth below. The amount of the reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statements of Operations.

The advisory fees and expense limitations for the six months ended September 30, 2013 for the Funds were based on the annual rates set forth in the table below.

	CONTRACTUAL RATE
Fund	FIRST $1 BILLION			NEXT $1 BILLION			OVER $2 BILLION			CONTRACTUAL EXPENSE LIMITATIONS
Multi-Manager Emerging Markets Equity		1.20	%		1.13	%		1.08	%		1.35	%
Multi-Manager Global Listed Infrastructure*		0.80	%		0.75	%		0.72	%		1.00	%
Multi-Manager Global Real Estate		1.10	%		1.03	%		0.99	%		1.10	%
Multi-Manager International Equity		1.10	%		1.03	%		0.99	%		1.35	%
Multi-Manager Large Cap		0.90	%		0.85	%		0.81	%		1.10	%
Multi-Manager Mid Cap		0.90	%		0.85	%		0.81	%		1.00	%
Multi-Manager Small Cap		1.10	%		1.03	%		0.99	%		1.30	%
Fund	FIRST $1.5 BILLION			NEXT $1 BILLION			OVER $2.5 BILLION			CONTRACTUAL EXPENSE LIMITATIONS
Multi-Manager High Yield Opportunity		0.80	%		0.75	%		0.72	%		0.90	%

The contractual reimbursement arrangements described above are expected to continue until at least July 31, 2014.

NTI and NTCC have agreed to increase the expense reimbursements it provides the Multi-Manager International Equity Fund, Multi-Manager Large Cap Fund and Multi-Manager Small Cap

MULTI-MANAGER FUNDS 78 NORTHERN FUNDS SEMIANNUAL REPORT

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SEPTEMBER 30, 2013 (UNAUDITED)

Fund effective as of January 1, 2014. This increase in expense reimbursements will have the effect of reducing the Total Expenses paid by investors as shown in the Statements of Operations. The new contractual reimbursement arrangements are expected to continue from implementation until at least July 31, 2015. The contractual reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangements may be terminated, as to any succeeding Renewal Year, by NTI, NTCC or a Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to a Fund if it determines that it is in the best interest of the Fund and its shareholders.

The following chart illustrates the new contractual expense limitations that are scheduled to take effect on January 1, 2014, replacing the limitations in the tables above:

Fund	CONTRACTUAL EXPENSE LIMITATIONS EFFECTIVE 1/1/2014
Multi-Manager International Equity		1.20	%
Multi-Manager Large Cap		0.90	%
Multi-Manager Small Cap		1.10	%

Pursuant to the Investment Advisory Agreement (the “Advisory Agreement”) with the Trust, each of NTI and NTCC is responsible for performing and overseeing investment management services to the Funds. In addition to selecting the overall investment strategies of the Funds, NTI and NTCC oversee and monitor the selection and performance of Sub-Advisers and allocate resources among the Sub-Advisers. The Sub-Advisers manage each Fund’s investment portfolio pursuant to Sub-Advisory Agreements with NTI and NTCC. NTI and NTCC manage the cash portion of each Fund as well as the emerging market investments of the Multi-Manager International Equity Fund.

As of September 30, 2013, Axiom International Investors, LLC, PanAgora Asset Management, Inc., Pzena Investment Management LLC, Trilogy Global Advisors, LP and Westwood Global Investments, LLC are the Sub-Advisers for the Multi-Manager Emerging Markets Equity Fund.

As of September 30, 2013, Brookfield Investment Management, Inc. and Lazard Asset Management are the Sub-Advisers for the Multi-Manager Global Listed Infrastructure Fund.

As of September 30, 2013, CBRE Clarion Securities LLC and EII Realty Securities, Inc. are the Sub-Advisers for the Multi-Manager Global Real Estate Fund.

As of September 30, 2013, Altrinsic Global Advisors, LLC, EARNEST Partners, LLC, NFJ Investment Group, LLC, Northern Cross, LLC and William Blair & Company, LLC are the Sub-Advisers for the Multi-Manager International Equity Fund.

As of September 30, 2013, Delaware Management Company, Inc., Jennison Associates, LLC and WestEnd Advisors, LLC are the Sub-Advisers for the Multi-Manager Large Cap Fund.

As of September 30, 2013, Geneva Capital Management Ltd., LSV Asset Management and Systematic Financial Management LP are the Sub-Advisers for the Multi-Manager Mid Cap Fund.

As of September 30, 2013, Cardinal Capital Management LLC, Denver Investment Advisors LLC, Hotchkis and Wiley Capital Management LLC, Riverbridge Partners, LLC and Summit Creek Advisors, LLC are the Sub-Advisers for the Multi-Manager Small Cap Fund.

As of September 30, 2013, DDJ Capital Management, LLC, Loomis, Sayles & Company, L.P., and Neuberger Berman Fixed Income, LLC are the Sub-Advisers for Multi-Manager High Yield Opportunity Fund.

The investment advisers are responsible for payment of sub-advisory fees to these sub-advisers.

As compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, accrued daily and payable monthly, at an annual rate of 0.10 percent of the average daily net assets for each of the Funds. The transfer agent fees are reflected in the Funds’ Statements of Operations.

For compensation as administrator, NTI is entitled to receive an administration fee, accrued daily and payable monthly, at the annual rate of 0.15 percent of the average daily net assets for each of the Funds. The administration fees are reflected in the Funds’ Statements of Operations.

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Funds. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Funds’ Statements of Operations.

NORTHERN FUNDS SEMIANNUAL REPORT 79 MULTI-MANAGER FUNDS

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NOTES TO THE FINANCIAL STATEMENTS continued

Northern Funds Distributors, LLC, the distributor for the Funds, received no compensation from the Funds under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statements of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Global Tactical Asset Allocation Fund of the Trust and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

6. RELATED PARTY TRANSACTIONS

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), each Fund invests its uninvested cash in a money market fund advised by the investment advisers or their affiliates. Accordingly, each Fund will bear indirectly a proportionate share of that money market fund’s operating expenses. These operating expenses include the advisory, administrative, transfer agency and custody fees that the money market fund pays to the investment advisers and/or their affiliates. The uninvested cash of each of the Funds currently is invested in the Northern Institutional Diversified Assets Portfolio. The aggregate annual rate of advisory, administration, transfer agency and custody fees payable to the investment advisers and/or their affiliates on any assets invested in the Northern Institutional Diversified Assets Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, the investment advisers will reimburse each Fund for advisory fees otherwise payable by the Fund on any assets invested in the Northern Institutional Diversified Assets Portfolio. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statements of Operations. This reimbursement’s impact on each Fund’s net expenses and net investment income ratios is included in each Fund’s Financial Highlights. The exemptive order requires the Funds’ Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

7. INVESTMENT TRANSACTIONS

For the six months ended September 30, 2013, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER
Multi-Manager Emerging Markets Equity		$  —		$451,327		$  —		$427,394
Multi-Manager Global Listed Infrastructure		—		331,896		—		122,383
Multi-Manager Global Real Estate		—		366,456		—		513,407
Multi-Manager International Equity		—		850,800		—		456,160
Multi-Manager Large Cap		—		68,622		—		280,240
Multi-Manager Mid Cap		—		325,149		—		360,161
Multi-Manager Small Cap		—		88,814		—		185,898
Multi-Manager High Yield Opportunity		—		272,021		—		329,584

The difference between book basis and tax basis net unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains on certain foreign currency contracts, the deferral of post-October currency and capital losses for tax purposes, and the timing of income recognition on investments in REIT’s and PFIC’s.

MULTI-MANAGER FUNDS 80 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

At September 30, 2013, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:

Amounts in thousands	UNREALIZED APPRECIATION		UNREALIZED DEPRECIATION			NET APPRECIATION		COST BASIS OF SECURITIES
Multi-Manager Emerging Markets Equity		$323,600		$(156,549	)		$167,051		$2,052,718
Multi-Manager Global Listed Infrastructure		41,509		(3,680)			37,829		520,772
Multi-Manager Global Real Estate		159,301		(31,561	)		127,740		811,868
Multi-Manager International Equity		$413,065		$(69,048	)		$344,017		$2,407,217
Multi-Manager Large Cap		181,655		(16,902	)		164,753		543,629
Multi-Manager Mid Cap		237,366		(14,727	)		222,639		775,033
Multi-Manager Small Cap		109,507		(4,922	)		104,585		303,466
Multi-Manager High Yield Opportunity		22,614		(19,022	)		3,592		684,907

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013 were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Multi-Manager Emerging Markets Equity		15,307	$	277,484		—		$  —		(14,912	)	$	(269,691	)		395			$7,793
Multi-Manager Global Listed Infrastructure		20,392		227,912		183		1,975		(859	)		(9,682	)		19,716			220,205
Multi-Manager Global Real Estate		4,388		83,053		40		705		(13,295	)		(250,547	)		(8,867	)		(166,789	)
Multi-Manager International Equity		60,553		621,371		—		—		(22,839	)		(229,805	)		37,714			391,566
Multi-Manager Large Cap		2,025		19,779		15		149		(23,278	)		(229,368	)		(21,238	)		(209,440	)
Multi-Manager Mid Cap		5,397		76,724		—		—		(8,254	)		(114,923	)		(2,857	)		(38,199	)
Multi-Manager Small Cap		1,604		17,958		—		—		(10,080	)		(118,088	)		(8,476	)		(100,130	)
Multi-Manager High Yield Opportunity		17,193		186,391		391		4,241		(23,028	)		(248,373	)		(5,444	)		(57,741	)

Transactions in capital shares for the fiscal year or period ended March 31, 2013, were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Multi-Manager Emerging Markets Equity		42,697	$	783,848		89		$1,684		(20,514	)	$	(371,835	)		22,272			$413,697
Multi-Manager Global Listed Infrastructure*		29,357		298,443		42		428		(338	)		(3,412	)		29,061			295,459
Multi-Manager Global Real Estate		23,234		408,590		2,312		41,648		(9,663	)		(175,959	)		15,883			274,279
Multi-Manager International Equity		34,628		319,086		219		2,093		(54,134	)		(491,972	)		(19,287	)		(170,793	)

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MULTI-MANAGER FUNDS

NOTES TO THE FINANCIAL STATEMENTS continued

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE (DECREASE) IN SHARES			NET INCREASE (DECREASE) IN NET ASSETS
Multi-Manager Large Cap		12,613	$	117,620		10,786	$	92,991		(47,429	)	$	(444,783	)		(24,030	)	$	(234,172	)
Multi-Manager Mid Cap		6,518		79,181		2,591		30,887		(24,610	)		(299,700	)		(15,501	)		(189,632	)
Multi-Manager Small Cap		5,038		48,988		703		6,866		(14,270	)		(138,776	)		(8,529	)		(82,922	)
Multi-Manager High Yield Opportunity		29,152		307,624		1,401		14,975		(22,510	)		(241,388	)		8,043			81,211

* Commenced investment operations on September 18, 2012.

9. DERIVATIVE INSTRUMENTS

None of the derivatives held in the Funds have been designated as hedging instruments. Information concerning the types of derivatives in which the Funds invest, the objectives for using them and their related risks can be found in Note 2.

Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets and Liabilities as of September 30, 2013:

Amounts in thousands		ASSETS				LIABILITIES
FUND NAME	DERIVATIVE TYPE	STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			STATEMENT OF ASSETS AND LIABILITIES LOCATION	VALUE			COUNTERPARTY
Multi-Manager Global Listed Infrastructure	Equity contracts	Net unrealized appreciation		$9	*	Net unrealized depreciation		$  —		UBS
Multi-Manager International Equity	Equity contracts	Net unrealized appreciation		144	*	Net unrealized depreciation		—		UBS
Multi-Manager Large Cap	Equity contracts	Net unrealized appreciation		—		Net unrealized depreciation		47	*	UBS
Multi-Manager Mid Cap	Equity contracts	Net unrealized appreciation		48	*	Net unrealized depreciation		—		UBS
Multi-Manager Small Cap	Equity contracts	Net unrealized appreciation		55	*	Net unrealized depreciation		—		UBS
Multi-Manager High Yield Opportunity	Interest rate contracts	Net unrealized appreciation		—		Net unrealized depreciation		13	*	UBS
	Forward foreign exchange contracts	Unrealized gain on forward foreign currency exchange contracts		—		Unrealized loss on forward foreign currency exchange contracts		211		Barclays

* Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments footnotes. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities.

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MULTI-MANAGER FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

The following tables set forth by primary risk exposure the Funds’ realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended September 30, 2013:

Amounts in thousands	AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
Multi-Manager Global Listed Infrastructure	Equity contracts	Net realized gains (losses) on futures contracts		$(26)
Multi-Manager International Equity	Forward foreign exchange contracts	Net realized gains (losses) on foreign currency transactions		298
	Equity contracts	Net realized gains (losses) on futures contracts		1,949
Multi-Manager Large Cap	Equity contracts	Net realized gains (losses) on futures contracts		866
Multi-Manager Mid Cap	Equity contracts	Net realized gains (losses) on futures contracts		472
Multi-Manager Small Cap	Equity contracts	Net realized gains (losses) on futures contracts		788
Multi-Manager High Yield Opportunity	Interest rate contracts	Net realized gains (losses) on futures contracts		(2)
	Forward foreign exchange contracts	Net realized gains (losses) on foreign currency transactions		294

Amounts in thousands	CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE CONTRACTS
FUND NAME	DERIVATIVE TYPE	STATEMENT OF OPERATIONS LOCATION	VALUE
Multi-Manager Emerging Markets Equity	Foreign exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		$12
Multi-Manager Global Listed Infrastructure	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(6)
	Foreign exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		3
Multi-Manager Global Real Estate	Foreign exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		1
Multi-Manager International Equity	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		361
	Foreign exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		(1,386)
Multi-Manager Large Cap	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(162)
Multi-Manager Mid Cap	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(115)
Multi-Manager Small Cap	Equity contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(51)
Multi-Manager High Yield Opportunity	Interest rate contracts	Net change in unrealized appreciation (depreciation) on futures contracts		(13)
	Foreign exchange contracts	Net change in unrealized appreciation (depreciation) on foreign currency translations		(634)

Volume of derivative activity for the six months ended September 30, 2013*:

	FORWARD FOREIGN EXCHANGE CONTRACTS				FUTURES EQUITY CONTRACTS
	NUMBER OF TRADES		AVERAGE NOTIONAL AMOUNT**		NUMBER OF TRADES		AVERAGE NOTIONAL AMOUNT**
Multi-Manager Global Listed Infrastructure		—		$  —		144		$358
Multi-Manager International Equity		49		13,105		45		4,449
Multi-Manager Large Cap		—		—		28		5,355
Multi-Manager Mid Cap		—		—		16		7,282
Multi-Managers Small Cap		—		—		23		3,097
Multi-Manager High Yield Opportunity		10		2,974		2		1,059

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NOTES TO THE FINANCIAL STATEMENTS continued

* Activity during the period is measured by number of trades during the period and average notional amount for foreign currency exchange and futures equity contracts.

** Amounts in thousands.

10. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of their business, the Funds may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Funds. The maximum exposure to the Funds under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

11. NEW ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining whether an entity is an investment company for which fair value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for, its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have to the financial statement amounts and footnote disclosures, if any.

12. LEGAL PROCEEDINGS

In 2007, the Multi-Manager Mid Cap Fund was a shareholder of the Tribune Company (“Tribune”). In December of 2007, as a part of a leveraged buy-out transaction (the “LBO”), Tribune was converted from a public company to a privately-held company. On December 8, 2008, Tribune filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

On December 7, 2010, Northern Funds was named as a defendant and a putative member of the proposed defendant class of shareholders named in an adversary proceeding (the “Committee Action”) brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune’s Chapter 11 bankruptcy proceeding (In re Tribune Company). The Tribune litigation trustee appointed pursuant to Tribune’s plan of reorganization (the “Litigation Trustee”) has been substituted as the named plaintiff in the Committee Action. On June 2, 2011, a second suit was initiated by certain creditors of Tribune and named Northern Funds as a defendant in the Delaware Superior Court with respect to claims related to the Tribune LBO (Niese et al. v. A.G. Edwards, Inc. et al.), which was subsequently removed to federal court in the United States District Court, District of Delaware. The indenture trustees, on behalf of certain noteholders of Tribune, filed a third suit and named Northern Funds as a defendant on June 2, 2011 in the U.S. District Court for the Northern District of Illinois (Deutsche Bank Trust Co. et al. v. Ohlson Enterprises et al.).

Each of the above proceedings to which Northern Funds is a party attempts to “clawback” the proceeds paid out in connection with the LBO. The putative defendant class is comprised of beneficial owners of shares of Tribune who received proceeds of the LBO. Each of the above proceedings has now been consolidated into a Multi-District Litigation (“MDL”) proceeding, pending in the Southern District of New York. Except for certain administrative and organizational matters, the cases have generally been stayed pursuant to orders of the Court. On September 7, 2012, the Court in the MDL proceeding entered an order modifying the stay and establishing a schedule and process with respect to certain of the proceedings.

The defendants jointly moved to dismiss all of the actions filed by the individual creditors, i.e. the actions commenced by the plaintiffs in Niese et al. and Deutsche Bank Trust Co. et al. The Committee Action is not subject to the motion to dismiss. On September 23, 2013, the Court entered its Memorandum and Order on the motion to dismiss the individual creditors’ actions. While the Court did not agree with all of the defendants’ arguments, the Court granted the motion to dismiss on the grounds that individual creditors do not have standing to assert claims seeking to “clawback” proceeds paid to former shareholders in the LBO while the Litigation Trustee exercises its power in the Committee Action to “clawback” the same proceeds. The individual creditors’ actions, therefore, were dismissed. The Court’s decision, however, left open the possibility that the individual creditors could pursue their “clawback” claims if the Litigation Trustee completely abandoned its “clawback” claims. The Court, therefore, ordered the parties to the Committee Action to prepare a joint letter addressed to the Court, by October 8, 2013. The Court ordered that the letter address whether the Litigation Trustee intends to proceed with its intentional fraudulent conveyance claims or amend its complaint to abandon them. If the latter, the Court requested that the parties address whether the Litigation Trustee could abandon its claims consistent with its fiduciary duties to Tribune’s creditors. The

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individual creditors filed a notice of appeal of the Court’s Memorandum and Order dismissing their actions on September 30, 2013. The value of the proceeds received by the Multi-Manager Mid Cap Fund in the LBO was approximately $813,000. The Fund cannot predict the outcome of these proceedings. The complaints allege no misconduct by the Fund, and the Fund intends to vigorously defend any lawsuit.

13. SUBSEQUENT EVENTS

Trilogy Global Advisors, LP has been terminated as Sub-Adviser to the Multi-Manager Emerging Markets Equity Fund, effective October 22, 2013. Oaktree Capital Management, L.P. has been appointed as a Sub-Adviser to sub-advise a portion of the Multi-Manager Emerging Markets Equity Fund, effective November 13, 2013.

Huber Capital Management, LLC, has been appointed as a Sub-

Adviser to sub-advise a portion of the Multi-Manager Large Cap Fund, effective October 10, 2013.

Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that, other than the item noted above, in Note 4 —Bank Borrowings and in Note 5 — Investment Advisory and Other Agreements, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

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MULTI-MANAGER FUNDS

FUND EXPENSES

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013, through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees or other costs such as advisory fees related to affiliated money market funds investments, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 74 & 75), if any, in the Multi-Manager Emerging Markets Equity, Multi-Manager Global Listed Infrastructure, Multi-Manager Global Real Estate, Multi-Manager International Equity and Multi-Manager High Yield Opportunity Funds. If these fees were included, your costs would have been higher. The information also does not reflect reimbursements on advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds (as described on page 80), which may result in different expense ratios in the Financial Highlights. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

MULTI-MANAGER EMERGING MARKETS EQUITY

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.31	%	$	1,000.00	$	989.40	$	6.53
Hypothetical**		1.31	%	$	1,000.00	$	1,018.50	$	6.63

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.00	%	$	1,000.00	$	1,075.00	$	5.20
Hypothetical**		1.00	%	$	1,000.00	$	1,020.05	$	5.06

MULTI-MANAGER GLOBAL REAL ESTATE

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.09	%	$	1,000.00	$	978.10	$	5.41
Hypothetical**		1.09	%	$	1,000.00	$	1,019.60	$	5.52

MULTI-MANAGER INTERNATIONAL EQUITY

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.32	%	$	1,000.00	$	1,063.70	$	6.83
Hypothetical**		1.32	%	$	1,000.00	$	1,018.45	$	6.68

MULTI-MANAGER LARGE CAP

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.10	%	$	1,000.00	$	1,105.80	$	5.81
Hypothetical**		1.10	%	$	1,000.00	$	1,019.55	$	5.57

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SEPTEMBER 30, 2013 (UNAUDITED)

MULTI-MANAGER MID CAP

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.00	%	$	1,000.00	$	1,104.20	$	5.27
Hypothetical**		1.00	%	$	1,000.00	$	1,020.05	$	5.06

MULTI-MANAGER SMALL CAP

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		1.30	%	$	1,000.00	$	1,152.40	$	7.01
Hypothetical**		1.30	%	$	1,000.00	$	1,018.55	$	6.58

MULTI-MANAGER HIGH YIELD OPPORTUNITY

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.90	%	$	1,000.00	$	1,002.70	$	4.52
Hypothetical**		0.90	%	$	1,000.00	$	1,020.56	$	4.56

* Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

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APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS

The Board of Trustees of the Multi-Manager Funds oversees the management of the Multi-Manager Funds, and reviews the investment performance and expenses of the investment funds covered by this Report at regularly scheduled meetings held during the Multi-Manager Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue: (i) the investment advisory agreement (the “Advisory Agreement”) for the Multi-Manager Funds with The Northern Trust Company of Connecticut and Northern Trust Investments, Inc. (together, “Northern”); and (ii) the sub-advisory agreements among Northern and the Sub-Advisers to the Multi-Manager Funds.

Advisory Agreement Approval

The Advisory Agreement was re-approved with respect to all of the Multi-Manager Funds by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Multi-Manager Funds’ Ad Hoc Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Multi-Manager Funds. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Multi-Manager Funds in comparison to other mutual funds and benchmark indices; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Multi-Manager Funds; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Multi-Manager Funds; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Multi-Manager Funds’ investment performance over different time periods in comparison to the investment performance of mutual fund peer groups and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administrative) fees and the total expenses (after reimbursements) borne by the Multi-Manager Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the investment advisory fees charged to the Multi-Manager Funds compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (v) Northern’s staffing for the Multi-Manager Funds and the experience of the portfolio managers and other personnel; (vi) Northern’s financial resources and its ability to attract and retain portfolio management talent; (vii) Northern’s investments in technology to benefit the Multi-Manager Funds; (viii) the fees paid by the Multi-Manager Funds to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (ix) the benefits received by Northern and its affiliates from their relationships with the Multi-Manager Funds. In evaluating the Advisory Agreement for each of the Multi-Manager Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. The Trustees considered, in evaluating whether to continue and approve the Advisory Agreement for the Multi-Manager Funds, that Northern engaged sub-advisers, subject to the Trustees’ approval, to manage the assets of the Multi-Manager Funds. They considered that Northern provided general investment management services to the Multi-Manager Funds and also had the responsibility to oversee the sub-advisers, and to recommend their hiring, termination and replacement, subject to the Trustees’ approval. The Trustees discussed that Northern was also responsible for: (i) selecting each Multi-Manager Fund’s investment strategies; (ii) allocating and reallocating assets among the sub-advisers consistent with each Multi-Manager Fund’s investment objective and strategies; (iii) monitoring and evaluating each sub-adviser’s performance; (iv) implementing procedures relating to the sub-advisers’ compliance with the applicable Multi-Manager Fund’s investment objectives, policies and restrictions; and (v) managing the cash portion of each Multi-Manager Fund.

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In addition, the Board considered that Northern selected the sub-advisers to manage the Multi-Manager Funds on the basis of both qualitative and quantitative analyses that assess a number of factors. They noted that Northern then allocated assets to a sub-adviser selected through this process on the basis of a particular strategy assigned to it, with the goal that the investment styles of the sub-advisers for each Multi-Manager Fund be complementary. Therefore, the Trustees considered that the sub-advisers are chosen not only based on their performance but for their anticipated investment synergy with the other sub-advisers managing assets of the same Multi-Manager Fund. The Trustees also considered that the prospectuses for the Multi-Manager Funds disclose Northern’s role in selecting the sub-advisers and shareholders may consider this factor in determining whether to invest in a Multi-Manager Fund. The Trustees also considered that, at the time of the Annual Contract Meeting, Northern supervised 29 sub-advisers. The Trustees took into account Northern’s expertise in managing multi-manager strategies and its investments in the multi-manager business.

The Trustees also considered the non-advisory services provided to the Multi-Manager Funds by Northern and its affiliates. These services include acting as the Multi-Manager Funds’ custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Multi-Manager Funds. The Trustees believed that Northern had made significant commitments to address regulatory compliance requirements applicable to the Multi-Manager Funds. In this regard, they noted that Northern’s staff conducted thorough operational and compliance due diligence on prospective and existing sub-advisers. The Trustees took into account Northern’s enhancements to the Multi-Manager Funds’ pricing and fund accounting systems made during the year, and other investments in technology. The Trustees considered the strength of Northern’s and its affiliates’ risk management processes, Northern’s compliance oversight program with respect to all of the Multi-Manager Funds’ service providers, and the continued active involvement of internal audit in reviewing operations related to the Multi-Manager Funds. They noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Multi-Manager Funds. The Trustees concluded that Northern was both able to commit, and had committed, substantial financial and other resources to the operations of the Multi-Manager Funds and was able to provide quality services to the Multi-Manager Funds.

Performance

The Trustees considered the investment performance of the Multi-Manager Funds. They first considered whether the Funds had operated within their respective investment objectives, as well as their compliance with their investment restrictions. For Multi-Manager Funds that had been in existence for the applicable periods, the Trustees received information on the Funds’ investment performance for one, two, three, four and five years, as well as performance for the most recent quarter and year-to-date. The Trustees compared the investment performance of the Multi-Manager Funds to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. The Trustees also reviewed the Multi-Manager Funds’ investment performance relative to their respective performance benchmarks. The Trustees placed more emphasis on more recent performance for the Multi-Manager High Yield Opportunity Fund and Multi-Manager Small Cap Fund, which were subject to in-depth reviews. The Trustees did not consider the performance information for the Multi-Manager Global Listed Infrastructure Fund, which had less than one year of performance information.

The Trustees took into account Northern’s explanations for the performance rankings and comparisons. They also considered Northern’s continual monitoring of sub-advisers and their performance during the year, which included due diligence on site visits and meetings. They noted that Northern had replaced sub-advisers who were not performing as expected. The Trustees also noted that the in-depth performance reviews on the Multi-Manager High Yield Opportunity Fund and the Multi-Manager Small Cap Fund requested by the Trustees and provided by Northern assisted them in evaluating performance issues with respect to those Funds. They believed that Northern was appropriately monitoring the underperforming Multi-Manager Funds. The Trustees, based on the information provided, concluded that Northern was devoting appropriate resources to improving the Multi-Manager Funds’ performance and correcting underperformance.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Multi-Manager Funds’ contractual management fee rates; the Multi-Manager Funds’ total operating expense ratios; Northern’s contractual commitments to continue expense reimbursements for at least one year with respect to the Multi-Manager Funds; certain voluntary expense reimbursements made by Northern to the Multi-Manager Funds that the Board understood could be terminated at any time; and whether a consistent methodology was in place in determining the fees and expenses of the Multi-Manager Funds. The Trustees also considered that, for those Multi-Manager Funds that were sweeping uninvested cash into a Northern affiliated money market fund, Northern was in each case rebating back to the investing Multi-Manager Fund all of the advisory fees that were not waived by Northern of the applicable money market fund by Northern in compliance with the Multi-Manager Funds’ exemptive order. The Trustees also considered

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APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS continued

the additional contractual expense reimbursements that were in effect in 2012 and went into effect in 2013.

In addition, the Trustees considered the amount of current assets in the Multi-Manager Funds; information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship on a Fund-by-Fund basis. It was noted that Northern had also presented quarterly profitability reports to the Board on a Fund-by-Fund basis, as well as reports showing the expected impact on profitability by the addition of proposed sub-advisers, as required by the Multi-Manager Funds’ exemptive order. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to each Multi-Manager Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rates paid by the Multi-Manager Funds under the Advisory Agreement and the Funds’ total operating expense ratios compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Funds’ fee rates and total operating expense ratios were prepared by Lipper. The Trustees considered that the Lipper information showed that in each case the Multi-Manager Funds’ overall expense ratios after reimbursement of expenses were below their Lipper peer objective medians, although the contractual management fee rates for the Multi-Manager Funds were above their respective Lipper peer group medians. The Trustees reviewed information comparing the Funds’ advisory fee rates to the fee rates charged by Northern to similarly managed, private institutional accounts. They noted that Northern did not manage private institutional accounts similarly managed to the Multi-Manager Global Listed Infrastructure Fund and Multi-Manager Global Real Estate Fund. The Trustees considered the difference in, and level of complexity of, services provided by Northern with regard to the private institutional accounts, as well as regulatory, operational and compliance differences, board and committee support and other differences. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Multi-Manager Funds.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Multi-Manager Funds may be sharing in economies of scale through the level at which the Multi-Manager Funds’ advisory fees are set and through Northern’s contractual expense reimbursements that limit the expenses for the Multi-Manager Funds to specific levels. In addition, the Trustees considered that each of the Multi-Manager Funds’ advisory fees were subject to breakpoints, thus ensuring that as a Multi-Manager Fund’s assets grew, its shareholders would receive reduced fee rates. The Trustees also noted the increased expense reimbursements made by Northern in the past year.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationship with the Multi-Manager Funds. Those benefits included fees received by the affiliates for transfer agency, custodial, and administrative functions. The Trustees also considered that many of the Multi-Manager Funds’ shareholders had other client relationships with The Northern Trust Company. The Trustees also considered the extent to which Northern and its other clients, as well as the Funds, benefited from receipt of the research products and services generated by the Northern Funds’ equity investment portfolios. The Trustees also considered changes made to most of the sub-advisory agreements last year to reflect that the sub-advisory fees would be based on all of a sub-adviser’s assets under management with Northern and not just the applicable Multi-Manager Fund’s assets managed by the sub-adviser. The Trustees noted that Northern had benefited financially from this change and would continue to benefit in the future. The Trustees took into account the increased expense reimbursements made by Northern in the past year.

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to all of the Multi-Manager Funds that the advisory fees paid by the Multi-Manager Funds were reasonable in light of the services provided by Northern, its costs and the Multi-Manager Funds’ asset levels, and that the Advisory Agreement should be approved and continued.

Sub-Advisory Agreement Approval

The Trustees, including a majority of the Independent Trustees voting separately, also considered and reapproved the sub-advisory agreements with the then existing sub-advisers (the “Existing Sub-Advisers”) for the Multi-Manager Funds at the Annual Contract Meeting. The Trustees, including a majority of the Independent Trustees voting separately, also considered and approved, at a meeting on August 21-22, 2013, two new sub-advisers. Huber Capital Management, LLC (“Huber”) and Oaktree Capital Management L.P. (“Oaktree”) (together, the “New Sub-Advisers”) were proposed as sub-advisers to the Multi-

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SEPTEMBER 30, 2013 (UNAUDITED)

Manager Large Cap Fund and Multi-Manager Emerging Markets Equity Fund, respectively. The Existing Sub-Advisers and the New Sub-Advisers are referred to below together as “Sub-Advisers.”

The Trustees reviewed information and written materials from Northern and the Sub-Advisers regarding (i) the nature and quality of the investment advisory services to be provided by the Sub-Advisers, including the experience and qualifications of the personnel providing such services; (ii) the Sub-Advisers’ financial conditions, history of operations and ownership structures; (iii) the Sub-Advisers’ brokerage and soft dollar practices; (iv) the Sub-Advisers’ investment strategies and styles of investing; (v) the performance history of the Existing Sub-Advisers with respect to the applicable Fund and the performance history of the New Sub-Advisers with respect to accounts or funds managed similarly to the Multi-Manager Funds for which they were being engaged and hypothetical performance information and portfolio attributes; (vi) a summary of each Sub-Adviser’s risk management and each Sub-Adviser’s compliance policies and procedures (including their codes of ethics) and the Multi-Manager Funds’ Chief Compliance Officer’s evaluations of such policies and procedures; (vii) the Sub-Advisers’ conflicts of interest in managing the Multi-Manager Funds, including the Sub-Advisers’ financial or business relationships with Northern; and (viii) the terms of the existing and proposed sub-advisory agreements, including the revisions made in the past year to the asset base for calculation of sub-advisory fees, which had benefited Northern. The Trustees also considered Northern’s explanations for why Huber and Oaktree were expected to improve the performance of the applicable Multi-Manager Fund. The Trustees also reviewed Northern’s proprietary method for allocating assets among the various Sub-Advisers, the current allocations of assets among the Sub-Advisers and the proposed allocation of assets among the New Sub-Advisers and the Existing Sub-Advisers to the applicable Multi-Manager Fund.

In evaluating the existing and proposed sub-advisory agreements, the Trustees gave weight to various factors but did not identify any single factor as controlling their decision. However, the Trustees relied upon the recommendations and evaluations of Northern with respect to each of the Sub-Advisers.

Nature, Extent and Quality of Services

The Trustees considered the information and evaluations provided by Northern with respect to each Sub-Adviser’s operations, qualifications and experience in managing the type of strategies for which the Sub-Adviser was engaged, or proposed to be engaged, in connection with a Multi-Manager Fund. The Trustees also reviewed the Chief Compliance Officer’s evaluation of each Sub-Adviser’s compliance program, noting that the CCO believed these programs to be satisfactory. The Trustees concluded that each Sub-Adviser had provided, and/or was able to provide, quality services to the Multi-Manager Funds.

Fees, Expenses and Performance

With respect to the sub-advisory fees, the Trustees considered that the Sub-Advisers were each paid by Northern out of its advisory fees and not by the Multi-Manager Funds. The Trustees also believed, based on Northern’s representations, that each sub-advisory agreement had been negotiated at arms’-length among Northern and each Sub-Adviser. The Trustees also considered comparisons of the New Sub-Advisers’ fees at various asset levels of the Multi-Manager Funds and in relation to other Sub-Advisers to the Multi-Manager Funds. The Trustees also reviewed, the Sub-Advisers’ fees in relation to their standard fee schedules. Finally, the Trustees also considered Northern’s representations that the fees to be paid to the Sub-Advisers were reasonable in light of the existing and anticipated quality of the services to be performed by them.

The Trustees also considered the projected profitability to Northern of the applicable Multi-Manager Fund before and after the addition of Huber and Oaktree. These comparisons showed no material changes to Northern’s profitability. It was noted that Northern had also presented quarterly profitability reports to the Board on a Fund-by-Fund basis, as required by the Multi-Manager Funds’ exemptive order. The Trustees did not consider the Sub-Advisers’ profitability as they did not consider it to be particularly relevant because Northern would be paying the Sub-Advisers out of its advisory fees. The Trustees therefore believed that Northern has an incentive to negotiate the lowest possible sub-advisory fees.

The Trustees considered and evaluated the performance information presented with respect to each Sub-Adviser and Northern’s evaluation of Sub-Adviser performance. This information was compared to performance information with respect to each Sub-Adviser’s applicable benchmarks. It was noted that each Sub-Adviser had a different style, and that these styles would underperform in various markets. In addition, the Trustees reviewed reports prepared by Northern showing the hypothetical performance of the applicable Multi-Manager Fund over various time periods if Huber and Oaktree had been managing the applicable Multi-Manager Fund along with certain of the Existing Sub-Advisers to the Multi-Manager Fund. The Trustees concluded, based upon the information provided, that most of the Sub-Advisers’ performance records were generally satisfactory.

Economies of Scale

The Trustees considered that the levels of aggregate sub-advisory fee rates generally decrease as the Multi-Manager Funds’ assets increase. However, the Trustees generally considered economies of scale with respect to the Funds primarily at the advisory level given that Northern pays the Sub-Advisers out of its advisory fees. See “Advisory Agreement Approval — Discussion of Economies of Scale” above.

NORTHERN FUNDS SEMIANNUAL REPORT 91 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS continued

Other Benefits

The Trustees considered other benefits derived or to be derived by certain of the Sub-Advisers as a result of their relationship with the Multi-Manager Funds. These benefits included in certain cases research and other benefits in connection with brokerage commissions paid by the Multi-Manager Funds and, in some cases, affiliated brokerage commissions received on Multi-Manager Fund brokerage transactions. The Trustees also considered the other relationships that certain of the Sub-Advisers had with Northern, including sub-advisory or custodial relationships.

Based on the Trustees’ deliberations and the recommendations by Northern, the Trustees concluded that the fees paid, or to be paid, to the Sub-Advisers on a Fund-by-Fund basis were reasonable in light of the services provided, or to be provided, by each of them and that the sub-advisory agreements should be re-approved, and approved in the case of the New Sub-Advisers.

MULTI-MANAGER FUNDS 92 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER FUNDS

SEPTEMBER 30, 2013 (UNAUDITED)

NORTHERN FUNDS SEMIANNUAL REPORT 93 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

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MULTI-MANAGER FUNDS 94 NORTHERN FUNDS SEMIANNUAL REPORT

MULTI-MANAGER FUNDS

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NORTHERN FUNDS SEMIANNUAL REPORT 95 MULTI-MANAGER FUNDS

MULTI-MANAGER FUNDS

FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

MULTI-MANAGER FUNDS 96 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

TABLE OF CONTENTS

2	STATEMENT OF ASSETS AND LIABILITIES
3	STATEMENT OF OPERATIONS
4	STATEMENTS OF CHANGES IN NET ASSETS
5	FINANCIAL HIGHLIGHTS
6	SCHEDULE OF INVESTMENTS
6	GLOBAL TACTICAL ASSET ALLOCATION FUND
7	NOTES TO THE FINANCIAL STATEMENTS
13	FUND EXPENSES
14	APPROVAL OF ADVISORY AGREEMENT
16	FOR MORE INFORMATION

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

The recent volatility in the stock market has produced short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, the Northern Global Tactical Asset Allocation Fund’s performance may be subject to substantial short-term changes.

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

Northern Funds are distributed by Northern Funds Distributors, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101, not affiliated with Northern Trust.

NOT FDIC INSURED

May lose value / No bank guarantee

NORTHERN FUNDS SEMIANNUAL REPORT 1 GLOBAL TACTICAL ASSET ALLOCATION FUND

GLOBAL TACTICAL ASSET ALLOCATION FUND

STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2013 (UNAUDITED)

Amounts in thousands, except per share data	GLOBAL TACTICAL ASSET ALLOCATION FUND
ASSETS:
Investments, at cost (1)		$67,998
Investments, at value (2)		$73,449
Dividend income receivable		15
Receivable for fund shares sold		124
Receivable from investment adviser		5
Prepaid and other assets		10
Total Assets		73,603
LIABILITIES:
Payable for fund shares redeemed		5
Payable to affiliates:
Investment advisory fees		2
Administration fees		2
Custody and accounting fees		3
Shareholder servicing fees		1
Transfer agent fees		1
Trustee fees		5
Accrued other liabilities		21
Total Liabilities		40
Net Assets		$73,563
ANALYSIS OF NET ASSETS :
Capital stock		$72,192
Accumulated undistributed net investment income		79
Accumulated undistributed net realized loss		(4,159	)
Net unrealized appreciation		5,451
Net Assets		$73,563
Shares Outstanding ($.0001 par value, unlimited shares authorized):		6,316
Net Asset Value, Redemption and Offering Price Per Share:		$11.65

(1) Amount includes cost of $67,998 in affiliated funds.

(2) Amount includes value of $73,449 in affiliated funds.

See Notes to the Financial Statements.

GLOBAL TACTICAL ASSET ALLOCATION FUND 2 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

STATEMENT OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

Amounts in thousands	GLOBAL TACTICAL ASSET ALLOCATION FUND
INVESTMENT INCOME:
Dividend income (1)		$474
Total Investment Income		474
EXPENSES:
Investment advisory fees		86
Administration fees		52
Custody fees		13
Accounting fees		13
Transfer agent fees		35
Blue sky fees		13
SEC fees		2
Printing fees		18
Audit fees		8
Legal fees		8
Shareholder servicing fees		5
Trustee fees		5
Other		5
Total Expenses		263
Less waivers of investment advisory fees		(35	)
Less expenses reimbursed by investment adviser		(140	)
Net Expenses		88
Net Investment Income		386
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized losses on investments (2)		(151	)
Net change in unrealized appreciation on investments (3)		1,600
Net Gains		1,449
Net Increase in Net Assets Resulting from Operations		$1,835

(1) Amount includes dividend income from affiliated funds of $474.

(2) Amount includes net realized loss from affiliated funds of $(152).

(3) Amount includes net change in unrealized appreciation from affiliated funds of $1,600.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 GLOBAL TACTICAL ASSET ALLOCATION FUND

GLOBAL TACTICAL ASSET ALLOCATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED) OR THE FISCAL YEAR ENDED MARCH 31, 2013

	GLOBAL TACTICAL ASSET ALLOCATION FUND
Amounts in thousands	SEPT. 30, 2013			MARCH 31, 2013
OPERATIONS:
Net investment income		$386			$971
Net realized gains (losses)		(151	)		2,382
Net change in unrealized appreciation		1,600			1,619
Net Increase in Net Assets Resulting from Operations		1,835			4,972
CAPITAL SHARE TRANSACTIONS:
Net increase in net assets resulting from capital share transactions		8,059			24,824
Net Increase in Net Assets Resulting from Capital Share Transactions		8,059			24,824
DISTRIBUTIONS PAID:
From net investment income		(368	)		(953	)
Total Distributions Paid		(368	)		(953	)
Total Increase in Net Assets		9,526			28,843
NET ASSETS:
Beginning of period		64,037			35,194
End of period		$73,563			$64,037
Accumulated Undistributed Net Investment Income		$79			$61

See Notes to the Financial Statements.

GLOBAL TACTICAL ASSET ALLOCATION FUND 4 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

FINANCIAL HIGHLIGHTS

GLOBAL TACTICAL ASSET ALLOCATION FUND*	SHARES/CLASS A SHARES
Selected per share data	SIX MONTHS ENDED SEPT. 30, 2013 (UNAUDITED)			YEAR ENDED MARCH 31, 2013			FOUR MONTHS ENDED MARCH 31, 2012			YEAR ENDED NOV. 30, 2011			YEAR ENDED NOV. 30, 2010(1)			YEAR ENDED NOV. 30, 2009(1)			YEAR ENDED NOV. 30, 2008(1)
Net Asset Value, Beginning of Period		$11.40			$10.61			$9.97			$9.80			$9.33			$7.81			$12.56
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.06			0.21			0.10			0.24	(2)		0.23			0.41			0.22
Net realized and unrealized gains (losses)		0.25			0.79			0.63			0.19			0.47			1.34			(2.74	)
Total from Investment Operations		0.31			1.00			0.73			0.43			0.70			1.75			(2.52	)
LESS DISTRIBUTIONS PAID:
From net investment income		(0.06	)		(0.21	)		(0.09	)		(0.26	)		(0.23	)		(0.23	)		(0.22	)
From net realized gains		–			–			–			–			–			–			(2.01	)
Total Distributions Paid		(0.06	)		(0.21	)		(0.09	)		(0.26	)		(0.23	)		(0.23	)		(2.23	)
Net Asset Value, End of Period		$11.65			$11.40			$10.61			$9.97			$9.80			$9.33			$7.81
Total Return(3)		2.74	%		9.60	%		7.42	%		4.37	%		7.66	%		22.77	%		(23.97	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$73,563			$64,037			$35,194			$26,373			$13,518			$20,708			$17,426
Ratio to average net assets of:(4)
Expenses, net of waivers, reimbursements and credits		0.25	%(5)(6)		0.25	%(5)(6)		0.26	%(5)(6)		0.25	%(5)(6)		0.25	%(6)		0.24	%(6)		0.37	%(6)
Expenses, before waivers, reimbursements and credits		0.76	%(6)		0.91	%(6)		1.01	%(6)		1.50	%(6)		1.03	%(6)		0.99	%(6)		0.77	%(6)
Net investment income, net of waivers, reimbursements and credits		1.12	%(5)		2.02	%(5)		3.12	%(5)		2.58	%(2)(5)		2.49	%		4.88	%		2.25	%
Net investment income, before waivers, reimbursements and credits		0.61	%		1.36	%		2.37	%		1.33	%(2)		1.71	%		4.13	%		1.85	%
Portfolio Turnover Rate		18.08	%		73.25	%		14.46	%		76.63	%		87.17	%		126.86	%		398.83	%

(1) Net investment income for the year ended was calculated using the average shares outstanding method.

(2) The net investment income per share and net investment income ratios include a one-time voluntary contribution of approximately $36,000 relating to shareholder servicing fees earned by Northern Trust, which represents 0.22 percent of average net assets and $0.02 of net investment income per share for the fiscal year ended November 30, 2011.

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

(4) Annualized for periods less than one year.

(5) The net expenses and net investment income ratios include additional reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds of less than $1,000, which represents less than 0.005 percent of average net assets for the six months ended September 30, 2013, the fiscal year ended March 31, 2013, the four months ended March 31, 2012 and the fiscal year ended November 30, 2011, respectively. Absent the additional reimbursement, net investment income and reimbursements would have been decreased and net expenses increased by a corresponding amount.

(6) Expense ratios reflect only the direct expenses of the Fund and not any expenses associated with the underlying funds.

* As of the close of business August 1, 2011, the assets and liabilities of the Global Tactical Asset Allocation Portfolio (the “Predecessor Fund”), an investment portfolio of the Northern Institutional Funds, were transferred to the Fund pursuant to a plan of reorganization approved by the Predecessor Fund’s Board of Trustees on February 17, 2011 (the “Reorganization”). Prior to the Reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund and therefore information for the periods prior to and including August 1, 2011 relates to the Predecessor Fund.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 GLOBAL TACTICAL ASSET ALLOCATION FUND

SCHEDULE OF INVESTMENTS

GLOBAL TACTICAL ASSET ALLOCATION FUND SEPTEMBER 30, 2013 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000s)
FUND ALLOCATION - INVESTMENT COMPANIES – 99.8%
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (1)		117,475		$2,957
FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index Fund (1)		243,733		14,619
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (1)		126,296		6,408
FlexShares Morningstar Global Upstream Natural Resources Index Fund (1)		42,583		1,435
FlexShares Morningstar U.S. Market Factor Tilt Index Fund (1)		276,523		20,471
Northern Funds - Short Bond Fund (1)		408,569		7,775
Northern Funds - Bond Index Fund (1)		741,507		7,801
Northern Funds - Global Real Estate Index Fund (1)		231,522		2,160
Northern Funds - High Yield Fixed Income Fund (1)		1,282,831		9,609
Northern Institutional Funds - Diversified Assets Portfolio, 0.01% (1)		214,494		214
Total Investment Companies
(Cost $67,998)				73,449
Total Investments – 99.8%
(Cost $67,998)				73,449
Other Assets less Liabilities – 0.2%				114
NET ASSETS – 100.0%				$73,563

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

NF – Northern Funds

NIF – Northern Institutional Funds

TIPS – Treasury Inflation Protected Securities

Percentages shown are based on Net Assets.

At September 30, 2013, the asset class weightings for the Global Tactical Asset Allocation Fund were:

ASSET CLASS	WEIGHT		INVESTMENT VEHICLE
			FlexShares Morningstar U.S. Market Factor
U.S. Equity		27.9%	Tilt Index
Non U.S. Equity - Developed		19.9	FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index
Non U.S. Equity - Emerging		8.7	FlexShares Morningstar Emerging Markets Factor Tilt Index
Global Real Estate		2.9	NF Global Real Estate Index
U.S. Bonds - High Yield		13.1	NF High Yield Fixed Income
U.S. Bonds - Intermediate		10.6	NF Bond Index
U.S. Bonds - Inflation Protected		4.0	FlexShares iBoxx 5-Year Target Duration TIPS Index
U.S. Bonds - Short		10.6	NF Short Bond
			FlexShares Morningstar Global Upstream
Global Natural Resources		2.0	Natural Resources Index
Cash		0.3	NIF Diversified Assets
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. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy, as of September 30, 2013:

	LEVEL 1 (000s)		LEVEL 2 (000s)		LEVEL 3 (000s)		TOTAL (000s)
Investment Companies		$73,449		$–		$–		$73,449

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At September 30, 2013, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2013. 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.

See Notes to the Financial Statements.

GLOBAL TACTICAL ASSET ALLOCATION FUND 6 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

NOTES TO THE FINANCIAL STATEMENTS

1. ORGANIZATION

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust includes 47 funds as of September 30, 2013, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Global Tactical Asset Allocation Fund (the “Fund”) is a separate, diversified investment portfolio of the Trust. The Fund seeks to provide long-term capital appreciation and current income by investing primarily in shares of a combination of underlying mutual funds and exchange-traded funds (“ETFs”) to which Northern Trust Investments, Inc. (“NTI”), the Fund’s investment adviser, or an affiliate of NTI acts as investment adviser. The Fund also may invest in other unaffiliated mutual funds and ETFs (together with affiliated underlying funds and ETFs, the “Underlying Funds”) and other securities and investments not issued by mutual funds.

NTI is a subsidiary of The Northern Trust Company (“Northern Trust”). Northern Trust serves as the custodian and transfer agent for the Trust. NTI serves as the Trust’s administrator. Northern Funds Distributors, LLC is the Trust’s distributor.

2. SIGNIFICANT ACCOUNTING POLICIES

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

The net asset value (“NAV”) of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), generally 3:00 P.M. Central Time, on each day the NYSE is open for trading.

A) VALUATION OF SECURITIES Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the NASDAQ National Market System are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central Time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the NASDAQ National Market System are also generally valued at the most recent quoted bid price.

The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time.

Shares of open-end investment companies, other than ETFs, are valued at their NAV. Short-term investments with a maturity of 60 days or less are valued at their amortized cost, which NTI, as authorized by the Board of Trustees (the “Board”), has determined approximates fair value.

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

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 of, the Fund’s Board. NTI has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of NTI, as well as independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. The 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.

The NTGI PVC is responsible for making the final determination of the fair value of a security. In making its determination, the NTGI PVC considers factors that it deems appropriate to the determination of the fair value of a 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 transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI will continue to monitor markets and the issuer’s circumstances that affect a security’s valuation to determine the continued

NORTHERN FUNDS SEMIANNUAL REPORT 7 GLOBAL TACTICAL ASSET ALLOCATION FUND

GLOBAL TACTICAL ASSET ALLOCATION FUND

NOTES TO THE FINANCIAL STATEMENTS continued

appropriateness of a security’s fair valuation. The NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

For each Level 3 security, if any, 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.

The use of fair valuation involves the risk that the values used by the Fund to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) INVESTMENT TRANSACTIONS AND INCOME Investment transactions are recorded as of the trade date. The Fund determines the gain or loss realized from investment transactions by using an identified cost basis method. Interest income, if any, is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedule of Investments represents the 7-day yield for money market funds. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available.

C) EXPENSES The Fund is charged for those expenses that are directly attributable to the Fund. Expenses incurred which do not specifically relate to the Fund are allocated among all funds in the Trust in proportion to each fund’s relative net assets. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses associated with the Underlying Funds.

D) DISTRIBUTIONS TO SHAREHOLDERS Distributions of dividends from net investment income, if any, are declared and paid quarterly.

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations. Such amounts may differ from income and capital gains recorded in accordance with U.S. GAAP. Accordingly, the Fund may periodically make reclassifications among certain capital accounts to reflect differences between financial reporting and federal income tax basis distributions. The reclassifications are reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and U.S. GAAP. These reclassifications may relate to net operating losses, expired capital loss carryforwards, and gain or loss on in-kind transactions. These reclassifications have no impact on the total net assets or the net asset values per share of the Fund. At March 31, 2013, the Fund did not have any such reclassifications.

E) FEDERAL INCOME TAXES No provision for federal income taxes has been made since the Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

The Regulated Investment Company Modernization Act of 2010 (the “Act”) eliminated the eight-year limit on the use of capital loss carryforwards that arise in taxable years beginning after its enactment date of December 22, 2010. The changes became effective for the Fund for the four month period ended March 31, 2012. Consequently, capital losses incurred by the Fund in taxable years beginning with the taxable period ended March 31, 2012 can be carried forward for an unlimited period. However, capital losses incurred by the Fund in taxable years beginning before the taxable period ended March 31, 2012 with an expiration date may not be used to offset capital gains until all net capital losses incurred in taxable years beginning with the taxable period ended March 31, 2012 without an expiration date have been utilized. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The Fund’s ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

At March 31, 2013, the capital loss carryforward for U.S. federal income tax purposes and its year of expiration was as follows:

Amounts in thousands	MARCH 31, 2017
Global Tactical Asset Allocation		$3,956

The Fund may offset future capital gains with this capital loss carryforward.

At March 31, 2013, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:

	UNDISTRIBUTED
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS		UNREALIZED GAINS
Global Tactical Asset Allocation		$64		$  —		$3,799

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

GLOBAL TACTICAL ASSET ALLOCATION FUND 8 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

SEPTEMBER 30, 2013 (UNAUDITED)

The tax character of distributions paid during the fiscal year ended March 31, 2013, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Global Tactical Asset Allocation		$953		$  —

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

The tax character of distributions paid during the four month period ended March 31, 2012, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Global Tactical Asset Allocation		$270		$  —

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

The tax character of distributions paid during the fiscal year ended November 30, 2011, was as follows:

	DISTRIBUTIONS FROM
Amounts in thousands	ORDINARY INCOME*		LONG-TERM CAPITAL GAINS
Global Tactical Asset Allocation		$478		$  —

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

As of March 31, 2013, the Fund had no uncertain tax positions that would require financial statement recognition or disclosure. The Fund’s federal tax returns filed for the fiscal years ended November 30, 2009 through November 30, 2011 and the four month period ended March 31, 2012 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Fund will be recorded as Interest expense on the Statement of Operations.

3. SERVICE PLAN

The Trust has adopted a Service Plan pursuant to which the Trust may enter into agreements with Northern Trust, its affiliates or other institutions (“Service Organizations”) under which the Service Organizations agree to provide certain administrative support services and, in some cases, personal and account maintenance services for their customers, whom are beneficial owners of shares of the Fund. As compensation for services provided pursuant to the Service Plan, the Service Organizations receive a fee at an annual rate of up to 0.25 percent of the average daily net assets of the Fund beneficially owned by their customers. These expenses are included in the Statement of Operations under Shareholder servicing fees for the six months ended September 30, 2013. There were no shareholder servicing fees paid to Northern Trust or its affiliates during the six months ended September 30, 2013.

4. BANK BORROWINGS

The Trust entered into a $150,000,000 senior unsecured revolving credit facility on November 29, 2012, which is administered by JPMorgan Chase Bank, N.A., for liquidity and other purposes (the “Credit Facility”). The interest rate charged under the Credit Facility is equal to the sum of (i) the Federal Funds Rate plus (ii) if the one month London Interbank Offered Rate (“LIBOR”) on the date of borrowing exceeds such Federal Funds Rate, the amount by which it so exceeds, plus (iii) 1.00 percent. In addition, there is an annual commitment fee of 0.08 percent on the unused portion of the credit line under the Credit Facility, payable quarterly in arrears, which is included in Other expenses on the Statement of Operations.

At a meeting held on November 22, 2013, the Board approved an agreement that terminated, replaced and restated the Credit Facility (as so terminated, replaced and restated, the “New Credit Facility”). The interest rate charged under the New Credit Facility is the same as it was for the Credit Facility. In addition, there is an annual commitment fee of 0.07 percent on the unused portion of the credit line under the New Credit Facility, payable quarterly in arrears. The New Credit Facility is anticipated to go into effect on November 25, 2013 and will expire on November 24, 2014, unless renewed.

At September 30, 2013, the Fund did not have any outstanding borrowings.

The Fund did not have any borrowings or incur any interest expense during the six months ended September 30, 2013.

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

As compensation for advisory services and the assumption of related expenses, the investment adviser is entitled to receive an advisory fee, computed daily and payable monthly, at the annual rate set forth in the following table (expressed as a percentage of the Fund’s average daily net assets). For the six months ended September 30, 2013, the investment adviser contractually agreed to waive a portion of the advisory fees as shown in the accompanying Statement of Operations. The annual advisory fees and waiver rates expressed as a percentage of average daily net assets for the six months ended September 30, 2013, were as follows:

	ANNUAL ADVISORY FEE			LESS CONTRACTUAL WAIVER			ADVISORY FEE AFTER WAIVER
Global Tactical Asset Allocation		0.25	%		0.10	%		0.15	%

NORTHERN FUNDS SEMIANNUAL REPORT 9 GLOBAL TACTICAL ASSET ALLOCATION FUND

GLOBAL TACTICAL ASSET ALLOCATION FUND

NOTES TO THE FINANCIAL STATEMENTS continued

NTI has also contractually agreed to reimburse certain expenses of the Fund (other than acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses and interest, if any) so that after such reimbursement the total annual net fund operating expenses of the Fund will not exceed 0.25 percent of the average daily net assets outstanding for the Fund. NTI will first reimburse advisory fees payable and then reimburse other operating expenses of the Fund to the extent the amount of difference between the Fund’s operating expenses and the expense limit exceeds the advisory fees payable by the Fund. The advisory fees waived under this agreement are included in Less waivers of investment advisory fees as a reduction to Total Expenses on the Statement of Operations. The expenses reimbursed under this agreement are included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses on the Statement of Operations. The contractual waiver and reimbursement arrangements are expected to continue until at least July 31, 2014. The contractual waiver and reimbursement arrangements will continue automatically for periods of one year (each such one year period, a “Renewal Year”). The arrangements may be terminated, as to any succeeding Renewal Year, by NTI or the Fund upon 60 days’ written notice prior to the end of the current Renewal Year. The Board may terminate the contractual arrangements at any time with respect to the Fund if it determines that it is in the best interest of the Fund and its shareholders.

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

For compensation as administrator, NTI is entitled to receive a fee, computed daily and payable monthly, at the annual rate of 0.15 percent of the Fund’s average daily net assets. Administration fees are reflected on the Statement of Operations.

NTI also has a sub-administration agreement with Northern Trust, pursuant to which Northern Trust performs certain administrative services for the Fund. NTI pays Northern Trust for its sub-administration services out of NTI’s administration fees.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Fund has entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. Custodian credits, if any, are reflected as Less custodian credits in the Fund’s Statement of Operations.

Northern Funds Distributors, LLC, the distributor for the Fund, received no compensation from the Fund under its distribution agreement. However, it received compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Fund. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Prior to August 22, 2013, under the deferred compensation plan, Trustees may have elected to defer all or a portion of their compensation. Effective August 22, 2013, the Trustees may no longer defer their compensation. Any amounts deferred and invested under the plan shall remain invested pursuant to the terms of the plan. Amounts deferred are included in Trustee fees on the Statement of Assets and Liabilities. Each Trustee’s account shall be deemed to be invested in shares of the Diversified Assets Portfolio of Northern Institutional Funds and/or the Fund and/or at the discretion of the Trust, another money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the 1940 Act or one or more short-term fixed-income instruments selected by the Trust that are “eligible securities” as defined by that rule. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

6. INVESTMENT IN NORTHERN INSTITUTIONAL FUNDS-DIVERSIFIED ASSETS PORTFOLIO

Pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”), the Fund currently invests its uninvested cash in the Diversified Assets Portfolio (the “Portfolio”) of Northern Institutional Funds, an investment company which is advised by NTI. Accordingly, the Fund bears indirectly a proportionate share of the Portfolio’s operating expenses. These operating expenses include the advisory, administrative, transfer agency and custody fees that the Portfolio pays to NTI and/or its affiliates. Currently, the aggregate annual rate of advisory, administration, transfer agency and custody fees payable to the investment adviser and/or its affiliates on any assets invested in the Portfolio is 0.35 percent of average daily net assets. However, pursuant to the exemptive order, the investment adviser will reimburse the Fund for advisory fees otherwise payable by the Fund on any assets invested in an affiliated money market fund. This reimbursement is included in Less expenses reimbursed by investment adviser as a reduction to Total Expenses in the Statement of Operations. This reimbursement’s impact on the Fund’s net expense and net investment income

GLOBAL TACTICAL ASSET ALLOCATION FUND 10 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

SEPTEMBER 30, 2013 (UNAUDITED)

ratios is included in the Fund’s Financial Highlights. The exemptive order requires the Fund’s Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

7. INVESTMENT TRANSACTIONS

For the six months ended September 30, 2013, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Fund were as follows:

	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER
Global Tactical Asset Allocation		$  —		$20,082		$  —		$12,379

The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

At September 30, 2013, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:

Amounts in thousands	UNREALIZED APPRECIATION		UNREALIZED DEPRECIATION			NET APPRECIATION		COST BASIS OF SECURITIES
Global Tactical Asset Allocation		$5,776		$	(478)		$5,298		$68,151

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for the six months ended September 30, 2013, were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE IN SHARES		NET INCREASE IN NET ASSETS
Shares		1,341	$	15,444		26	$	297		(669	)	$	(7,682	)		698	$	8,059

Transactions in capital shares for the fiscal year ended March 31, 2013, were as follows:

Amounts in thousands	SHARES SOLD		PROCEEDS FROM SHARES SOLD		SHARES FROM REINVESTED DIVIDENDS		REINVESTMENT OF DIVIDENDS		SHARES REDEEMED			PAYMENTS FOR SHARES REDEEMED			NET INCREASE IN SHARES		NET INCREASE IN NET ASSETS
Shares		3,026	$	32,635		72	$	771		(796	)	$	(8,582	)		2,302	$	24,824

9. AFFILIATED PORTFOLIOS

Transactions in affiliated portfolios for the six months ended September 30, 2013, were as follows:

Amounts in thousands	VALUE, BEGINNING OF PERIOD		PURCHASES		SALES PROCEEDS		NET REALIZED GAINS (LOSSES)			DIVIDEND INCOME		VALUE, END OF PERIOD
FlexShares Morningstar Global Upstream Natural Resources Index Fund	$	3,192	$	647	$	2,204	$	(99	)	$	—	$	1,435
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		3,208		686		770		(16	)		4		2,957
FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index Fund		6,360		7,963		678		6			—		14,619
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		8,372		2,210		3,725		(304	)		—		6,408
FlexShares Morningstar U.S. Market Factor Tilt Index Fund		18,059		2,217		1,773		52			—		20,471
Northern Funds — Bond Index Fund		6,703		1,876		542		(13	)		95		7,801
Northern Funds — Global Real Estate Index Fund		3,189		813		1,704		196			38		2,160
Northern Funds — High Yield Fixed Income Fund		8,298		2,030		507		24			279		9,609
Northern Funds — Short Bond Fund		6,703		1,640		476		2			58		7,775
Northern Institutional Funds — Diversified Assets Portfolio		494		10,615		10,895		—			—		214
	$	64,578	$	30,697	$	23,274	$	(152	)	$	474	$	73,449

NORTHERN FUNDS SEMIANNUAL REPORT 11 GLOBAL TACTICAL ASSET ALLOCATION FUND

GLOBAL TACTICAL ASSET ALLOCATION FUND

NOTES TO THE FINANCIAL STATEMENTS continued SEPTEMBER 30, 2013 (UNAUDITED)

10. INDEMNIFICATIONS AND WARRANTIES

In the ordinary course of its business, the Fund may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Fund. The maximum exposure to the Fund under these provisions is unknown, as this would involve future claims that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and believe the risk of loss to be remote.

11. NEW ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”), modifying Accounting Standards Codification (“ASC”) 946. The modifications were a result of a joint effort by the FASB and the International Accounting Standards Board to develop a consistent approach for determining whether an entity is an investment company for which fair value of investments is the most relevant measurement. ASU 2013-08 requires reporting entities to disclose that it is an investment company and is applying the guidance as set forth in ASC 946, to disclose any changes in, and the reasons for, its status as an investment company and to disclose information related to whether it has provided or is contractually required to provide financial support to any of its investees. The effective date of ASU 2013-08 is for interim and annual periods beginning after December 15, 2013. At this time, management is evaluating the implications of this requirement and the impact it will have to the financial statement amounts and footnote disclosures, if any.

12. SUBSEQUENT EVENTS

Management has evaluated subsequent events for the Fund through the date the financial statements were issued and has concluded that, other than the item noted in Note 4 — Bank Borrowings, there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.

GLOBAL TACTICAL ASSET ALLOCATION FUND 12 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

FUND EXPENSES SEPTEMBER 30, 2013 (UNAUDITED)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, if any, and (2) ongoing costs, including advisory fees and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2013 through September 30, 2013.

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/13 - 9/30/13” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. The information does not reflect reimbursements of advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds which may result in different expense ratios in the Financial Highlights.

GLOBAL TACTICAL ASSET ALLOCATION

	EXPENSE RATIO			BEGINNING ACCOUNT VALUE 4/1/13		ENDING ACCOUNT VALUE 9/30/13		EXPENSES PAID* 4/1/13 - 9/30/13
Actual		0.25	%	$	1,000.00	$	1,027.40	$	1.27
Hypothetical**		0.25	%	$	1,000.00	$	1,023.82	$	1.27

* Expenses are calculated using the Fund’s annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2013. Expenses are calculated by multiplying the annualized expense ratio by the average account value of the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

** Hypothetical expenses are based on the Fund’s actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

NORTHERN FUNDS SEMIANNUAL REPORT 13 GLOBAL TACTICAL ASSET ALLOCATION FUND

GLOBAL TACTICAL ASSET ALLOCATION FUND

APPROVAL OF ADVISORY AGREEMENT

The Board of Trustees oversees the management of Northern Funds (the “Trust”), and reviews the investment performance and expenses of the Global Tactical Asset Allocation Fund (the “Fund”) at regularly scheduled meetings held during the Fund’s fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Fund with Northern Trust Investments, Inc. (“Northern”).

The Advisory Agreement was re-approved with respect to the Fund by the Board of Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”) voting separately, at the annual contract renewal meeting held on May 15-16, 2013 (the “Annual Contract Meeting”).

The Trustees received written materials and verbal presentations relating to the Advisory Agreement in preparation for their consideration of the Advisory Agreement, including reports from the Trust’s Governance Committee, which reviewed certain information pertinent to the Advisory Agreement at its meetings. At the Annual Contract Meeting, the Trustees considered these reports and presentations and discussed the information that had been provided. In connection with their deliberations, the Independent Trustees met separately with and were advised by their independent legal counsel regarding their responsibilities under applicable law. They also met in executive sessions at the Annual Contract Meeting without employees of Northern present.

In evaluating the Advisory Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year and past years, of Northern, its services and the Fund. The Trustees received materials relating to Northern’s investment management services both in meetings specifically dedicated to the review of the Advisory Agreement and in other meetings held during the year. These materials included: (i) information on the investment performance of the Fund in comparison to other mutual funds and benchmark indices; (ii) compliance reports; (iii) information about Northern’s and its affiliates’ risk management processes; (iv) fees charged to and expenses borne by the Fund; (v) Northern’s profitability and costs; (vi) the qualifications of Northern and its affiliates to provide services to the Fund; and (vii) policies adopted by Northern regarding brokerage, including soft dollars, trade allocations and other matters.

The Trustees reviewed, among other things, information specifically relating to: (i) the terms of the Advisory Agreement; (ii) the Fund’s investment performance over different time periods in comparison to the investment performance of a mutual fund peer group and categories selected by Lipper Inc. (“Lipper”), a third-party provider of mutual fund data; (iii) the contractual management (advisory and administrative) fees, the actual investment advisory fees (after waivers) and the total expenses (after reimbursements) borne by the Fund in comparison to those borne by mutual fund peer groups and categories selected by Lipper; (iv) the investment advisory fees charged to the Fund compared to the investment advisory fees charged by Northern to Northern’s other comparable institutional accounts; (v) Northern’s staffing for the Fund and the experience of the portfolio managers, credit research and other personnel; (vi) Northern’s financial resources and its ability to attract and retain portfolio management talent; (vii) Northern’s investments in technology to benefit the Fund; (viii) the fees paid by the Fund to Northern and its affiliates for services, and the expenses incurred by them in connection with the provision of those services; and (ix) the benefits received by Northern and its affiliates from their relationships with the Fund. In evaluating the Advisory Agreement for the Fund, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision.

Nature, Quality and Extent of Services

The Trustees considered, as part of their review, the nature, quality and extent of the services provided by Northern. In this regard, they considered both the investment advisory services, and the other non-advisory services that are provided to the Fund by Northern and its affiliates. These services include acting as the Fund’s custodian, transfer agent and administrator. The Trustees considered the quality of Northern’s communications with and services to shareholders, as well as the expenditures made by Northern and its affiliates to improve the quality and scope of their services to the Fund. They noted Northern’s enhancements to the pricing and fund accounting systems made during the year, and other investments in technology, including the trade order management system used to process certain trades. The Trustees also considered the strength of Northern’s and its affiliates’ risk management processes, Northern’s compliance oversight program with respect to all of the Fund’s service providers and the continued active involvement of internal audit in reviewing operations related to the Fund. In addition, they noted Northern’s and its affiliates’ strong financial position, stability and willingness to support the Fund. The Trustees concluded that Northern was able to commit, and had committed, substantial financial and other resources to the operations of the Fund and was able to provide quality services to the Fund.

Performance

The Trustees considered the investment performance of the Fund. They first considered whether the Fund had operated within its investment objective, as well as its compliance with its investment restrictions and exemptive order conditions. The

GLOBAL TACTICAL ASSET ALLOCATION FUND 14 NORTHERN FUNDS SEMIANNUAL REPORT

GLOBAL TACTICAL ASSET ALLOCATION FUND

SEPTEMBER 30, 2013 (UNAUDITED)

Trustees noted the Fund’s unique structure as a “fund of funds.” The Trustees received information on the Fund’s investment performance for one, two, three, four, five and ten years, as well as performance for the most recent quarter and year-to-date. The Trustees compared the investment performance of the Fund to the performance of other Securities and Exchange Commission (“SEC”) registered funds and to rankings issued by Lipper. The Trustees also reviewed the Fund’s investment performance relative to their respective performance benchmarks. They focused primarily on performance since April 2008, which is when the Fund changed its investment objective and strategies to become a “fund of funds.” The Trustees considered that the Fund’s investment performance had been above its Lipper peer group median for the one- and three-year periods, although it lagged its performance benchmark for the same time periods. The Trustees concluded that Northern had devoted appropriate resources to improving the investment performance of the Fund.

Fee Rates, Costs of Services and Profitability

The Trustees also evaluated the Fund’s contractual management fee rates; the Fund’s total operating expense ratio; Northern’s contractual commitments to continue its fee waiver and expense reimbursements for at least one year with respect to the Fund; and whether a consistent methodology was in place in determining the fees and expenses of the Fund. Based upon the information provided to them from Northern, the Trustees, including a majority of the Independent Trustees, determined that the services provided under the Advisory Agreement by Northern were in addition to, rather than duplicative of services that Northern provided to the affiliated mutual funds in which the Fund invested. The Trustees also considered that Northern was rebating back to the Fund all of the advisory fees that were not waived by Northern of the Northern affiliated money market fund into which the Fund swept uninvested cash in compliance with the Fund’s exemptive order.

In addition, the Trustees considered the amount of assets in the Fund; the information provided by Northern relating to the costs of the services provided by Northern and its affiliates; and the profits realized by them through their relationship with the Fund. The Trustees reviewed Northern’s assumptions and methodology for allocating costs to the Fund, recognizing that cost allocation methodologies are inherently subjective and not audited. The Trustees reviewed information with respect to Northern’s profitability compared to other publicly-traded advisers. They considered that comparisons of advisory agreement profitability across fund families are difficult because of numerous factors, including the type of funds managed, business mix, cost allocation methodologies and other factors. The Trustees concluded that Northern’s profitability was not unreasonable based on the services and benefits provided and the costs assumed by Northern.

The Trustees reviewed information on the fee rate paid by the Fund under the Advisory Agreement and the Fund’s total operating expense ratio compared to similar information for mutual funds advised by unaffiliated investment management firms. The comparisons of the Fund’s fee rate and total operating expense ratio were prepared by Lipper. The Trustees considered that the Fund’s total expense ratio after waiver of advisory fees and reimbursement of expenses was below its Lipper peer objective median, although the Fund’s contractual management fee rate was above its Lipper peer group median. They noted that Northern did not manage private institutional accounts similarly managed to the Fund. These comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Fund.

Economies of Scale

The Trustees considered whether Northern had passed, and was likely to continue to pass, benefits from its economies of scale to shareholders. In this regard, the Trustees considered Northern’s view that the Fund may be sharing in economies of scale through the level at which the Fund’s advisory fee is set and through Northern’s contractual fee waivers and contractual expense reimbursements that limit the expenses for the Fund to specific levels.

Other Benefits to Northern

The Trustees also reviewed other benefits accruing to Northern and its affiliates as a result of their relationships with the Fund. Those benefits included fees received by the affiliates for transfer agency, custodial and administrative functions, as well as the fees for these and other services received from the affiliated mutual funds in which the Fund invested. The Trustees also considered the extent to which Northern and its other clients, as well as the Fund, benefited from receipt of the research products and services generated by the Trust’s equity investment portfolios. The Trustees also considered that many of the Fund’s shareholders had other client relationships with The Northern Trust Company.

After deliberation, the Trustees concluded at the Annual Contract Meeting with respect to the Fund that the advisory fees paid by the Fund were reasonable in light of the services provided by Northern, its costs and the Fund’s asset levels, and that the Advisory Agreement should be approved and continued.

NORTHERN FUNDS SEMIANNUAL REPORT 15 GLOBAL TACTICAL ASSET ALLOCATION FUND

GLOBAL TACTICAL ASSET ALLOCATION FUND

FOR MORE INFORMATION

PORTFOLIO HOLDINGS

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

PROXY VOTING

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

GLOBAL TACTICAL ASSET ALLOCATION FUND 16 NORTHERN FUNDS SEMIANNUAL REPORT

Item 2. Code of Ethics.

Not applicable for this reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for this reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for this reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) The registrant has elected to include the schedule of investments in securities of unaffiliated issuers as part of the report to shareholders filed under Item 1 of this report on Form N-CSR.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

Item 11. Controls and Procedures.

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(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable for the reporting period.

(a)(2) Exhibit 99.CERT: Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(b) Exhibit 99.906 CERT: Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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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: December 6, 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: December 6, 2013

By	/s/ Randal Rein
	Randal Rein, Treasurer (Principal Financial and Accounting Officer)

Date: December 6, 2013

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