N-Q 1 d338008dnq.htm NORTHERN FUNDS Northern Funds

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-08236

                             Northern Funds                            

(Exact name of registrant as specified in charter)

50 South LaSalle Street

                             Chicago, IL 60603                            

(Address of principal executive offices) (Zip code)

Lloyd A. Wennlund, President

Northern Funds

50 South LaSalle Street

                             Chicago, IL 60603                            

(Name and address of agent for service)

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

Date of fiscal year end: March 31

Date of reporting period: December 31, 2016

Item 1. Schedule of Investments.

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

SCHEDULE OF INVESTMENTS

 

INCOME EQUITY FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4%

      

Aerospace & Defense - 5.5%

      

Boeing (The) Co.

      42,938      $ 6,684  

Lockheed Martin Corp.

      19,848        4,961  

United Technologies Corp.

      10,537        1,155  
  

 

 

     

 

 

  
        12,800  
     

 

 

  

Asset Management - 0.6%

      

BlackRock, Inc.

      3,725        1,418  
  

 

 

     

 

 

  

Banking - 8.6%

      

Bank of Hawaii Corp.

      22,914        2,032  

Citigroup, Inc.

      19,441        1,156  

JPMorgan Chase & Co.

      85,611        7,387  

PNC Financial Services Group (The), Inc.

      20,268        2,371  

Wells Fargo & Co.

      125,301        6,905  
  

 

 

     

 

 

  
        19,851  
     

 

 

  

Biotechnology & Pharmaceuticals - 8.8%

      

AbbVie, Inc.

      46,198        2,893  

Gilead Sciences, Inc.

      66,139        4,736  

Merck & Co., Inc.

      110,853        6,526  

Pfizer, Inc.

      189,097        6,142  
  

 

 

     

 

 

  
        20,297  
     

 

 

  

Chemicals - 1.7%

      

Dow Chemical (The) Co.

      40,833        2,336  

LyondellBasell Industries N.V., Class A

      19,766        1,696  
  

 

 

     

 

 

  
        4,032  
     

 

 

  

Commercial Services - 1.0%

      

H&R Block, Inc.

      99,663        2,291  
  

 

 

     

 

 

  

Consumer Products - 8.8%

      

Altria Group, Inc.

      122,350        8,273  

Clorox (The) Co.

      28,661        3,440  

General Mills, Inc.

      27,986        1,729  

Kimberly-Clark Corp.

      20,155        2,300  

Philip Morris International, Inc.

      49,534        4,532  
  

 

 

     

 

 

  
        20,274  
     

 

 

  

Electrical Equipment - 2.5%

      

General Electric Co.

      182,554        5,769  
  

 

 

     

 

 

  

Gaming, Lodging & Restaurants - 3.6%

      

Darden Restaurants, Inc.

      56,811        4,131  

McDonald’s Corp.

      33,730        4,106  
  

 

 

     

 

 

  
        8,237  
     

 

 

  

Hardware - 5.0%

      

Apple, Inc.

      71,729        8,308  

Cisco Systems, Inc.

      34,945        1,056  

HP, Inc.

      142,387        2,113  
  

 

 

     

 

 

  
        11,477  
     

 

 

  

Health Care Facilities & Services - 1.5%

      

AmerisourceBergen Corp.

      14,706        1,150  

Cardinal Health, Inc.

      33,303        2,397  
  

 

 

     

 

 

  
        3,547  
     

 

 

  

Insurance - 3.5%

      

Aflac, Inc.

      42,352        2,948  

Allstate (The) Corp.

      29,888        2,215  

Cincinnati Financial Corp.

      39,970        3,028  
  

 

 

     

 

 

  
        8,191  
     

 

 

  

Medical Equipment & Devices - 0.8%

      

Baxter International, Inc.

      41,162        1,825  
  

 

 

     

 

 

  

Oil, Gas & Coal - 7.6%

      

Chevron Corp.

      44,369        5,222  

Exxon Mobil Corp.

      29,502        2,663  

Helmerich & Payne, Inc.

      34,897        2,701  

HollyFrontier Corp.

      51,640        1,692  

Occidental Petroleum Corp.

      32,131        2,289  

Valero Energy Corp.

      42,660        2,914  
  

 

 

     

 

 

  
        17,481  
     

 

 

  

Real Estate Investment Trusts - 4.8%

      

Digital Realty Trust, Inc.

      38,808        3,813  

Hospitality Properties Trust

      103,160        3,274  

Host Hotels & Resorts, Inc.

      49,592        935  

National Retail Properties, Inc.

      70,204        3,103  
  

 

 

     

 

 

  
        11,125  
     

 

 

  

Recreational Facilities & Services - 0.5%

      

Regal Entertainment Group, Class A

      59,978        1,236  
  

 

 

     

 

 

  

Retail - Consumer Staples - 3.4%

      

CVS Health Corp.

      14,502        1,144  

Target Corp.

      69,729        5,037  

Wal-Mart Stores, Inc.

      23,137        1,599  
  

 

 

     

 

 

  
        7,780  
     

 

 

  

Retail - Discretionary - 4.9%

      

GameStop Corp., Class A

      37,280        942  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Retail - Discretionary - 4.9% continued

      

Home Depot (The), Inc.

      56,175      $ 7,532  

Kohl’s Corp.

      33,659        1,662  

Macy’s, Inc.

      30,785        1,102  
  

 

 

     

 

 

  
        11,238  
     

 

 

  

Semiconductors - 6.3%

      

KLA-Tencor Corp.

      27,101        2,132  

Linear Technology Corp.

      35,524        2,215  

QUALCOMM, Inc.

      67,454        4,398  

Texas Instruments, Inc.

      57,156        4,171  

Xilinx, Inc.

      27,258        1,645  
  

 

 

     

 

 

  
        14,561  
     

 

 

  

Software - 2.1%

      

Activision Blizzard, Inc.

      106,687        3,852  

Symantec Corp.

      43,064        1,029  
  

 

 

     

 

 

  
        4,881  
     

 

 

  

Specialty Finance - 1.6%

      

American Express Co.

      31,107        2,304  

Mastercard, Inc., Class A

      13,500        1,394  
  

 

 

     

 

 

  
        3,698  
     

 

 

  

Technology Services - 3.2%

      

Accenture PLC, Class A

      35,400        4,147  

Paychex, Inc.

      52,895        3,220  
  

 

 

     

 

 

  
        7,367  
     

 

 

  

Telecom - 3.6%

      

CenturyLink, Inc.

      59,709        1,420  

Verizon Communications, Inc.

      127,335        6,797  
  

 

 

     

 

 

  
        8,217  
     

 

 

  

Transportation & Logistics - 2.8%

      

United Parcel Service, Inc., Class B

      57,383        6,578  
  

 

 

     

 

 

  

Utilities - 5.7%

      

Consolidated Edison, Inc.

      79,772        5,878  

DTE Energy Co.

      13,689        1,348  

Entergy Corp.

      32,470        2,386  

Vectren Corp.

      66,241        3,454  
  

 

 

     

 

 

  
        13,066  
     

 

 

  

Total Common Stocks

(Cost $196,778)

         227,237  
     

 

 

  

INVESTMENT COMPANIES - 1.5%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(1) (2)

      3,507,756        3,508  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $3,508)

         3,508  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.1%

      

U.S. Treasury Bill,

      

0.47%, 3/2/17(3) (4)

    $ 130      $ 130  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $130)

         130  
     

 

 

  

Total Investments - 100.0%

(Cost $200,416)

         230,875  
     

 

 

  

Other Assets less Liabilities - 0.0%

         32  
     

 

 

  

NET ASSETS - 100.0%

       $ 230,907  
     

 

 

  

 

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(2) 7-day yield as of December 31, 2016 is disclosed.
(3) Discount rate at the time of purchase.
(4) Security pledged as collateral to cover margin requirements for open futures contracts.

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-Mini S&P 500

      25      $ 2,795        Long        3/17      $ (12 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.3 % 

Consumer Staples

      10.1  

Energy

      7.7  

Financials

      14.0  

Health Care

      11.3  

Industrials

      11.1  

Information Technology

      17.5  

Materials

      1.8  

Real Estate

      4.9  

Telecommunication Services

      3.6  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

    $ 227,237     $ —        $ —        $ 227,237  

Investment Companies

      3,508       —          —          3,508  

Short-Term Investments

      —         130          —          130  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 230,745     $ 130      $ —        $ 230,875  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Liabilities

           

Futures Contracts

    $ (12 )    $ —        $ —        $ (12 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 200,435  
  

 

 

  

Gross tax appreciation of investments

    $ 37,889  

Gross tax depreciation of investments

      (7,449 ) 
  

 

 

  

Net tax appreciation of investments

    $ 30,440  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 3,007      $ 30,329      $ 29,828      $ 6      $ 3,508  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

INTERNATIONAL EQUITY FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.7%(1)

      

Australia - 6.4%

      

AGL Energy Ltd.

      18,434      $ 293  

ASX Ltd.

      18,718        671  

AusNet Services

      151,391        173  

Australia & New Zealand Banking Group Ltd.

      102,776        2,250  

Bendigo & Adelaide Bank Ltd.

      48,129        440  

BHP Billiton Ltd.

      24,656        440  

CIMIC Group Ltd.

      16,322        410  

Flight Centre Travel Group Ltd.

      18,759        422  

Fortescue Metals Group Ltd.

      251,651        1,063  

Harvey Norman Holdings Ltd.

      40,721        151  

Macquarie Group Ltd.

      26,891        1,695  

Mirvac Group

      30,841        47  

Origin Energy Ltd.

      46,470        220  

Qantas Airways Ltd.

      96,048        230  

Sonic Healthcare Ltd.

      18,487        285  

Tabcorp Holdings Ltd.

      150,087        521  

Telstra Corp. Ltd.

      57,168        210  

Woodside Petroleum Ltd.

      1,145        26  
  

 

 

     

 

 

  
        9,547  
     

 

 

  

Austria - 0.7%

      

ANDRITZ A.G.

      5,008        251  

Erste Group Bank A.G.*

      3,613        106  

voestalpine A.G.

      18,398        722  
  

 

 

     

 

 

  
        1,079  
     

 

 

  

Belgium - 1.6%

      

Colruyt S.A.

      22,895        1,133  

Proximus SADP

      42,409        1,221  
  

 

 

     

 

 

  
        2,354  
     

 

 

  

China - 0.4%

      

Yangzijiang Shipbuilding Holdings Ltd.

      1,004,600        562  
  

 

 

     

 

 

  

Denmark - 0.7%

      

Vestas Wind Systems A/S

      16,731        1,087  
  

 

 

     

 

 

  

Finland - 1.7%

      

Fortum OYJ

      6,308        97  

Nokia OYJ

      112,190        539  

Nokian Renkaat OYJ

      352        13  

Orion OYJ, Class B

      19,626        873  

UPM-Kymmene OYJ

      42,224        1,035  
  

 

 

     

 

 

  
        2,557  
     

 

 

  

France - 11.1%

      

Atos S.E.

      5,112        539  

BNP Paribas S.A.

      36,990        2,356  

Christian Dior S.E.

      4,926        1,032  

Cie de Saint-Gobain

      2,063        96  

Cie Generale des Etablissements Michelin

      10,969        1,220  

CNP Assurances

      48,625        901  

Credit Agricole S.A.

      19,062        236  

Engie S.A.

      4,927        63  

Fonciere Des Regions

      6,666        582  

LVMH Moet Hennessy Louis Vuitton S.E.

      2,592        494  

Orange S.A.

      22,614        343  

Peugeot S.A.*

      2,727        45  

Publicis Groupe S.A.

      16,920        1,167  

Renault S.A.

      17,614        1,566  

Sanofi

      29,390        2,377  

Societe Generale S.A.

      37,337        1,833  

Technip S.A.

      11,894        844  

TOTAL S.A.

      18,850        962  
  

 

 

     

 

 

  
        16,656  
     

 

 

  

Germany - 7.9%

      

Allianz S.E. (Registered)

      1,175        194  

BASF S.E.

      26,097        2,434  

Bayer A.G. (Registered)

      9,135        953  

Bayerische Motoren Werke A.G.

      11,116        1,041  

Deutsche Post A.G. (Registered)

      6,656        219  

E.ON S.E.

      19,182        134  

Fresenius Medical Care A.G. & Co.

      

KGaA

      4,083        346  

HUGO BOSS A.G.

      11,206        691  

METRO A.G.

      48,444        1,608  

Muenchener Rueckversicherungs-Gesellschaft A.G. in Muenchen (Registered)

      5,092        963  

RWE A.G.*

      19,227        239  

SAP S.E.

      4,765        416  

Siemens A.G. (Registered)

      21,410        2,632  
  

 

 

     

 

 

  
        11,870  
     

 

 

  

Hong Kong - 2.9%

      

Cheung Kong Property Holdings Ltd.

      31,567        191  

CLP Holdings Ltd.

      37,291        341  

HK Electric Investments & HK Electric Investments Ltd.(2)

      219,840        181  

Hong Kong & China Gas Co. Ltd.

      3,050        5  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.7%(1) continued

      

Hong Kong - 2.9% continued

      

Link REIT

      229,731      $ 1,484  

NWS Holdings Ltd.

      68,211        111  

WH Group Ltd.(2)

      1,026,937        827  

Wharf Holdings (The) Ltd.

      9,891        65  

Wheelock & Co. Ltd.

      209,061        1,174  
  

 

 

     

 

 

  
        4,379  
     

 

 

  

Israel - 1.7%

      

Bank Hapoalim B.M.

      240,730        1,429  

Check Point Software Technologies Ltd.*

      12,597        1,064  
  

 

 

     

 

 

  
        2,493  
     

 

 

  

Italy - 0.9%

      

Atlantia S.p.A.

      6,266        147  

Enel S.p.A.

      127,374        560  

Leonardo-Finmeccanica S.p.A.*

      4,928        69  

Poste Italiane S.p.A.(2)

      46,694        310  

Prysmian S.p.A.

      7,968        205  
  

 

 

     

 

 

  
        1,291  
     

 

 

  

Japan - 24.3%

      

Alfresa Holdings Corp.

      37,000        610  

Asahi Glass Co. Ltd.

      6,000        41  

Astellas Pharma, Inc.

      5,100        71  

Bandai Namco Holdings, Inc.

      33,200        914  

Bridgestone Corp.

      27,300        982  

Brother Industries Ltd.

      23,900        430  

Canon, Inc.

      42,600        1,193  

Central Japan Railway Co.

      9,800        1,610  

Chubu Electric Power Co., Inc.

      18,900        264  

Daiichi Sankyo Co. Ltd.

      68,400        1,397  

Daito Trust Construction Co. Ltd.

      5,400        811  

Daiwa House Industry Co. Ltd.

      7,100        194  

East Japan Railway Co.

      6,500        561  

Fuji Heavy Industries Ltd.

      37,100        1,509  

Hirose Electric Co. Ltd.

      100        12  

Hitachi Chemical Co. Ltd.

      62,700        1,565  

Hitachi High-Technologies Corp.

      21,600        869  

Hoya Corp.

      7,100        297  

Iida Group Holdings Co. Ltd.

      18,000        341  

Isuzu Motors Ltd.

      34,000        429  

ITOCHU Corp.

      123,100        1,632  

Japan Airlines Co. Ltd.

      3,500        102  

Japan Tobacco, Inc.

      11,900        391  

KDDI Corp.

      38,075        961  

Kuraray Co. Ltd.

      9,600        144  

Medipal Holdings Corp.

      500        8  

Minebea Co. Ltd.

      7,300        68  

Mitsubishi Chemical Holdings Corp.

      22,400        144  

Mitsubishi Corp.

      25,100        533  

Mitsubishi Electric Corp.

      88,900        1,236  

Mitsubishi UFJ Financial Group, Inc.

      250,163        1,538  

Mixi, Inc.

      9,400        342  

Mizuho Financial Group, Inc.

      645,400        1,155  

NH Foods Ltd.

      32,000        864  

Nomura Real Estate Holdings, Inc.

      60,900        1,034  

NSK Ltd.

      70,000        807  

NTT DOCOMO, Inc.

      12,300        280  

ORIX Corp.

      35,300        547  

Osaka Gas Co. Ltd.

      64,000        246  

Otsuka Holdings Co. Ltd.

      12,800        557  

Resona Holdings, Inc.

      93,700        482  

Shimamura Co. Ltd.

      4,500        561  

SoftBank Group Corp.

      5,600        370  

Sumitomo Heavy Industries Ltd.

      104,000        668  

Sumitomo Mitsui Financial Group, Inc.

      45,100        1,710  

Sumitomo Rubber Industries Ltd.

      40,900        647  

Sundrug Co. Ltd.

      1,000        69  

Suzuki Motor Corp.

      17,200        604  

TDK Corp.

      800        55  

Tohoku Electric Power Co., Inc.

      9,000        113  

Tokyo Electron Ltd.

      4,000        377  

Tokyo Gas Co. Ltd.

      43,000        194  

Toyo Suisan Kaisha Ltd.

      27,900        1,009  

Toyota Motor Corp.

      26,400        1,541  

West Japan Railway Co.

      7,200        441  

Yahoo Japan Corp.

      253,000        971  
  

 

 

     

 

 

  
        36,501  
     

 

 

  

Netherlands - 3.4%

      

EXOR N.V.

      5,228        226  

ING Groep N.V.

      10,743        151  

NN Group N.V.

      36,403        1,233  

Randstad Holding N.V.

      781        42  

Royal Dutch Shell PLC, Class B

      105,855        3,021  

Wolters Kluwer N.V.

      14,110        510  
  

 

 

     

 

 

  
        5,183  
     

 

 

  

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.7%(1) continued

      

New Zealand - 1.0%

      

Fletcher Building Ltd.

      99,728      $ 733  

Spark New Zealand Ltd.

      356,564        843  
  

 

 

     

 

 

  
        1,576  
     

 

 

  

Norway - 1.6%

      

DNB ASA

      86,009        1,279  

Norsk Hydro ASA

      68,744        328  

Orkla ASA

      22,440        203  

Yara International ASA

      14,438        569  
  

 

 

     

 

 

  
        2,379  
     

 

 

  

Portugal - 0.6%

      

EDP - Energias de Portugal S.A.

      82,567        251  

Jeronimo Martins SGPS S.A.

      44,485        690  
  

 

 

     

 

 

  
        941  
     

 

 

  

Singapore - 1.1%

      

United Overseas Bank Ltd.

      117,700        1,652  
  

 

 

     

 

 

  

South Africa - 0.1%

      

Mondi PLC

      4,321        88  
  

 

 

     

 

 

  

Spain - 3.9%

      

Abertis Infraestructuras S.A.

      54,089        757  

ACS Actividades de Construccion y Servicios S.A.

      29,467        929  

Amadeus IT Group S.A.

      24,624        1,119  

Endesa S.A.

      10,269        217  

Gas Natural SDG S.A.

      13,341        251  

Iberdrola S.A.

      39,635        260  

Repsol S.A.

      114,812        1,615  

Telefonica S.A.

      75,280        698  
  

 

 

     

 

 

  
        5,846  
     

 

 

  

Sweden - 2.5%

      

Alfa Laval AB

      17,121        283  

Boliden AB

      2,549        66  

Electrolux AB, Class B

      9,912        246  

Securitas AB, Class B

      88,304        1,389  

Skanska AB, Class B

      43,618        1,028  

Swedish Match AB

      23,154        736  
  

 

 

     

 

 

  
        3,748  
     

 

 

  

Switzerland - 7.6%

      

ABB Ltd. (Registered)*

      12,784        269  

Actelion Ltd. (Registered)*

      2,720        588  

Lonza Group A.G. (Registered)*

      2,704        468  

Nestle S.A. (Registered)

      32,292        2,316  

Novartis A.G. (Registered)

      7,930        577  

Roche Holding A.G. (Genusschein)

      15,287        3,483  

Sika A.G. (Bearer)

      203        975  

Swiss Re A.G.

      19,994        1,894  

Swisscom A.G. (Registered)

      1,975        883  
  

 

 

     

 

 

  
        11,453  
     

 

 

  

United Kingdom - 16.6%

      

3i Group PLC

      88,052        765  

Anglo American PLC*

      67,503        947  

AstraZeneca PLC

      21,843        1,185  

BAE Systems PLC

      72,690        528  

Berkeley Group Holdings PLC

      17,297        598  

BP PLC

      148,895        925  

BT Group PLC

      159,237        721  

Centrica PLC

      21,268        61  

Diageo PLC

      83,556        2,162  

Direct Line Insurance Group PLC

      219,222        994  

easyJet PLC

      36,600        453  

GlaxoSmithKline PLC

      62,332        1,190  

HSBC Holdings PLC

      267,032        2,159  

IMI PLC

      2,934        37  

Imperial Brands PLC

      37,562        1,634  

Johnson Matthey PLC

      14,825        579  

Land Securities Group PLC

      3,772        50  

Legal & General Group PLC

      486,281        1,481  

National Grid PLC

      56,295        658  

Old Mutual PLC

      311,065        789  

Pearson PLC

      105,721        1,061  

Persimmon PLC

      53,918        1,177  

Rio Tinto PLC

      10,174        387  

Royal Mail PLC

      114,036        649  

Severn Trent PLC

      24        1  

Smiths Group PLC

      47,029        817  

SSE PLC

      11,533        221  

Tate & Lyle PLC

      40,685        354  

Unilever N.V. - CVA

      51,650        2,123  

United Utilities Group PLC

      3,609        40  

Vodafone Group PLC

      67,888        167  
  

 

 

     

 

 

  
        24,913  
     

 

 

  

Total Common Stocks

(Cost $143,840)

         148,155  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

PREFERRED STOCKS - 0.3%(1)

      

Germany - 0.3%

      

Henkel A.G. & Co. KGaA

      2,847      $ 340  

Schaeffler A.G.

      8,946        132  
  

 

 

     

 

 

  
        472  
     

 

 

  

Total Preferred Stocks

(Cost $462)

         472  
     

 

 

  

INVESTMENT COMPANIES - 0.4%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(3) (4)

      490,062        490  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $490)

         490  
     

 

 

  

Total Investments - 99.4%

(Cost $144,792)

         149,117  
     

 

 

  

Other Assets less Liabilities - 0.6%

         962  
     

 

 

  

NET ASSETS - 100.0%

       $ 150,079  
     

 

 

  

 

(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) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of 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 Northern Institutional Funds.
(4) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.9 % 

Consumer Staples

      11.1  

Energy

      5.1  

Financials

      21.1  

Health Care

      10.3  

Industrials

      14.4  

Information Technology

      5.3  

Materials

      8.2  

Real Estate

      3.8  

Telecommunication Services

      4.5  

Utilities

      3.3  
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Euro

      31.9 % 

Japanese Yen

      24.6  

British Pound

      17.4  

Swiss Franc

      7.7  

Australian Dollar

      6.4  

All other currencies less than 5%

      12.0  
  

 

 

  

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). The Fund adjusted the price of certain foreign equity securities held in the portfolio on December 31, 2016 using adjustment factors designed to reflect more accurately the fair value of securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

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

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

            

Denmark

    $ 1,087      $ —        $ —        $ 1,087  

Israel

      1,064        1,429        —          2,493  

All Other Countries(1)

      —          144,575        —          144,575  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      2,151        146,004        —          148,155  
  

 

 

     

 

 

     

 

 

     

 

 

  

Preferred Stocks(1)

      —          472        —          472  

Investment Companies

      490        —          —          490  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 2,641      $ 146,476      $ —        $ 149,117  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) Classifications as defined in the Schedule of Investments

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 146,302  
  

 

 

  

Gross tax appreciation of investments

    $ 5,286  

Gross tax depreciation of investments

      (2,470 ) 
  

 

 

  

Net tax appreciation of investments

    $ 2,816  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 89      $ 36,560      $ 36,159      $ 2      $ 490  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

LARGE CAP CORE FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 99.5%

      

Aerospace & Defense - 1.8%

      

Boeing (The) Co.

      9,239      $ 1,438  

L-3 Communications Holdings, Inc.

      5,481        834  
  

 

 

     

 

 

  
        2,272  
     

 

 

  

Apparel & Textile Products - 0.8%

      

Michael Kors Holdings Ltd.*

      16,651        716  

PVH Corp.

      3,368        304  
  

 

 

     

 

 

  
        1,020  
     

 

 

  

Asset Management - 0.2%

      

Leucadia National Corp.

      13,971        325  
  

 

 

     

 

 

  

Banking - 7.1%

      

Bank of America Corp.

      85,372        1,887  

Citigroup, Inc.

      33,454        1,988  

Fifth Third Bancorp

      35,902        968  

JPMorgan Chase & Co.

      18,937        1,634  

PNC Financial Services Group (The), Inc.

      7,539        882  

Regions Financial Corp.

      65,307        938  

Wells Fargo & Co.

      14,864        819  
  

 

 

     

 

 

  
        9,116  
     

 

 

  

Biotechnology & Pharmaceuticals - 7.6%

      

Amgen, Inc.

      10,058        1,471  

Biogen, Inc.*

      822        233  

Gilead Sciences, Inc.

      18,649        1,335  

Johnson & Johnson

      24,480        2,820  

Merck & Co., Inc.

      30,500        1,796  

Pfizer, Inc.

      62,096        2,017  
  

 

 

     

 

 

  
        9,672  
     

 

 

  

Chemicals - 2.3%

      

Avery Dennison Corp.

      10,750        755  

Dow Chemical (The) Co.

      16,771        959  

LyondellBasell Industries N.V., Class A

      11,503        987  

PPG Industries, Inc.

      2,540        241  
  

 

 

     

 

 

  
        2,942  
     

 

 

  

Commercial Services - 1.3%

      

H&R Block, Inc.

      33,616        773  

Robert Half International, Inc.

      18,772        915  
  

 

 

     

 

 

  
        1,688  
     

 

 

  

Consumer Products - 7.4%

      

Altria Group, Inc.

      24,609        1,664  

Campbell Soup Co.

      14,870        899  

Coca-Cola (The) Co.

      7,435        308  

General Mills, Inc.

      12,277        758  

JM Smucker (The) Co.

      3,850        493  

Kimberly-Clark Corp.

      6,474        739  

PepsiCo, Inc.

      16,772        1,755  

Philip Morris International, Inc.

      1,846        169  

Procter & Gamble (The) Co.

      19,976        1,680  

Tyson Foods, Inc., Class A

      14,942        922  
  

 

 

     

 

 

  
        9,387  
     

 

 

  

Containers & Packaging - 1.2%

      

3M Co.

      8,332        1,488  
  

 

 

     

 

 

  

Electrical Equipment - 2.3%

      

Eaton Corp. PLC

      13,031        874  

General Electric Co.

      34,643        1,095  

Ingersoll-Rand PLC

      12,320        924  
  

 

 

     

 

 

  
        2,893  
     

 

 

  

Engineering & Construction Services - 0.6%

      

Jacobs Engineering Group, Inc.*

      13,695        781  
  

 

 

     

 

 

  

Gaming, Lodging & Restaurants - 1.3%

      

Darden Restaurants, Inc.

      11,741        854  

McDonald’s Corp.

      6,565        799  
  

 

 

     

 

 

  
        1,653  
     

 

 

  

Hardware - 6.1%

      

Apple, Inc.

      34,363        3,980  

Cisco Systems, Inc.

      47,856        1,446  

Garmin Ltd.

      15,094        732  

HP, Inc.

      57,999        861  

NetApp, Inc.

      21,985        775  
  

 

 

     

 

 

  
        7,794  
     

 

 

  

Health Care Facilities & Services - 3.6%

      

Cardinal Health, Inc.

      697        50  

Express Scripts Holding Co.*

      14,342        987  

Humana, Inc.

      4,720        963  

McKesson Corp.

      5,243        736  

UnitedHealth Group, Inc.

      11,231        1,798  
  

 

 

     

 

 

  
        4,534  
     

 

 

  

Industrial Services - 0.2%

      

United Rentals, Inc.*

      1,938        205  
  

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 99.5% continued

      

Institutional Financial Services - 2.7%

      

Bank of New York Mellon (The) Corp.

      16,242      $ 769  

Goldman Sachs Group (The), Inc.

      6,022        1,442  

Morgan Stanley

      28,117        1,188  
  

 

 

     

 

 

  
        3,399  
     

 

 

  

Insurance - 4.0%

      

Aflac, Inc.

      11,471        798  

American International Group, Inc.

      19,168        1,252  

Berkshire Hathaway, Inc., Class B*

      7,760        1,265  

Lincoln National Corp.

      13,369        886  

Loews Corp.

      19,869        930  
  

 

 

     

 

 

  
        5,131  
     

 

 

  

Iron & Steel - 0.7%

      

Nucor Corp.

      15,467        921  
  

 

 

     

 

 

  

Machinery - 0.7%

      

Illinois Tool Works, Inc.

      446        55  

Parker-Hannifin Corp.

      6,332        886  
  

 

 

     

 

 

  
        941  
     

 

 

  

Media - 5.7%

      

Alphabet, Inc., Class A*

      2,952        2,339  

Comcast Corp., Class A

      4,083        282  

Facebook, Inc., Class A*

      8,709        1,002  

Omnicom Group, Inc.

      10,721        912  

Priceline Group (The), Inc.*

      99        145  

Scripps Networks Interactive, Inc., Class A

      12,113        865  

TEGNA, Inc.

      27,204        582  

Twenty-First Century Fox, Inc., Class A

      25,366        711  

VeriSign, Inc.*

      2,157        164  

Walt Disney (The) Co.

      2,051        214  
  

 

 

     

 

 

  
        7,216  
     

 

 

  

Medical Equipment & Devices - 2.2%

      

Baxter International, Inc.

      19,113        848  

Becton Dickinson and Co.

      5,747        951  

C.R. Bard, Inc.

      4,074        915  

Varian Medical Systems, Inc.*

      357        32  
  

 

 

     

 

 

  
        2,746  
     

 

 

  

Metals & Mining - 0.3%

      

Newmont Mining Corp.

      11,092        378  
  

 

 

     

 

 

  

Oil, Gas & Coal - 7.1%

      

Baker Hughes, Inc.

      14,874        966  

Chevron Corp.

      5,154        607  

Exxon Mobil Corp.

      35,947        3,245  

Helmerich & Payne, Inc.

      12,256        949  

Marathon Petroleum Corp.

      11,986        603  

ONEOK, Inc.

      13,411        770  

Tesoro Corp.

      10,202        892  

Valero Energy Corp.

      15,396        1,052  
  

 

 

     

 

 

  
        9,084  
     

 

 

  

Passenger Transportation - 1.5%

      

Alaska Air Group, Inc.

      10,705        950  

Southwest Airlines Co.

      7,897        393  

United Continental Holdings, Inc.*

      7,350        536  
  

 

 

     

 

 

  
        1,879  
     

 

 

  

Real Estate - 0.4%

      

CBRE Group, Inc., Class A*

      14,522        457  
  

 

 

     

 

 

  

Real Estate Investment Trusts - 2.6%

      

Equity Residential

      15,124        973  

Host Hotels & Resorts, Inc.

      49,732        937  

Ventas, Inc.

      6,651        416  

Welltower, Inc.

      14,448        967  
  

 

 

     

 

 

  
        3,293  
     

 

 

  

Retail - Consumer Staples - 2.9%

      

CVS Health Corp.

      8,686        685  

Target Corp.

      13,611        983  

Walgreens Boots Alliance, Inc.

      7,384        611  

Wal-Mart Stores, Inc.

      20,742        1,434  
  

 

 

     

 

 

  
        3,713  
     

 

 

  

Retail - Discretionary - 5.2%

      

Amazon.com, Inc.*

      2,433        1,825  

Bed Bath & Beyond, Inc.

      17,697        719  

Best Buy Co., Inc.

      19,295        823  

eBay, Inc.*

      32,696        971  

Gap (The), Inc.

      31,378        704  

Home Depot (The), Inc.

      2,687        360  

Kohl’s Corp.

      5,988        296  

Nordstrom, Inc.

      5,368        257  

Urban Outfitters, Inc.*

      23,561        671  
  

 

 

     

 

 

  
        6,626  
     

 

 

  

Semiconductors - 4.0%

      

Applied Materials, Inc.

      30,965        999  

Intel Corp.

      24,013        871  

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 99.5% continued

 

Semiconductors - 4.0% continued

      

QUALCOMM, Inc.

      20,832      $ 1,358  

Texas Instruments, Inc.

      17,103        1,248  

Xilinx, Inc.

      11,132        672  
  

 

 

     

 

 

  
        5,148  
     

 

 

  

Software - 3.6%

      

CA, Inc.

      24,967        793  

Microsoft Corp.

      43,517        2,704  

Oracle Corp.

      29,192        1,123  
  

 

 

     

 

 

  
        4,620  
     

 

 

  

Specialty Finance - 2.0%

      

Capital One Financial Corp.

      7,737        675  

Navient Corp.

      47,117        774  

Visa, Inc., Class A

      2,666        208  

Western Union (The) Co.

      40,979        890  
  

 

 

     

 

 

  
        2,547  
     

 

 

  

Technology Services - 3.0%

      

Accenture PLC, Class A

      10,738        1,258  

International Business Machines Corp.

      10,617        1,762  

Teradata Corp.*

      28,111        764  
  

 

 

     

 

 

  
        3,784  
     

 

 

  

Telecom - 2.5%

      

AT&T, Inc.

      25,656        1,091  

CenturyLink, Inc.

      28,606        681  

Verizon Communications, Inc.

      26,718        1,426  
  

 

 

     

 

 

  
        3,198  
     

 

 

  

Transportation & Logistics - 0.8%

      

C.H. Robinson Worldwide, Inc.

      11,498        842  

Norfolk Southern Corp.

      1,688        183  
  

 

 

     

 

 

  
        1,025  
     

 

 

  

Transportation Equipment - 0.7%

      

Cummins, Inc.

      6,841        935  
  

 

 

     

 

 

  

Utilities - 3.1%

      

AES Corp.

      69,112        803  

Edison International

      12,171        876  

Entergy Corp.

      10,177        747  

FirstEnergy Corp.

      24,823        769  

NRG Energy, Inc.

      17,030        209  

Public Service Enterprise Group, Inc.

      12,871        565  
  

 

 

     

 

 

  
        3,969  
     

 

 

  

Total Common Stocks

(Cost $115,765)

         126,780  
     

 

 

  

INVESTMENT COMPANIES - 0.3%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(1) (2)

      430,156        430  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $430)

         430  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.2%

      

U.S. Treasury Bill,

      

0.46%, 3/2/17(3) (4)

    $ 190      $ 190  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $190)

         190  
     

 

 

  

Total Investments - 100.0%

(Cost $116,385)

         127,400  
     

 

 

  

Other Assets less Liabilities - 0.0%

         19  
     

 

 

  

NET ASSETS - 100.0%

       $ 127,419  
     

 

 

  

 

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(2) 7-day yield as of December 31, 2016 is disclosed.
(3) Discount rate at the time of purchase.
(4) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-mini S&P 500

      5      $ 559        Long        3/17      $ 2  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

LARGE CAP CORE FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      11.5 % 

Consumer Staples

      9.6  

Energy

      7.2  

Financials

      15.3  

Health Care

      13.4  

Industrials

      10.5  

Information Technology

      20.6  

Materials

      3.3  

Real Estate

      3.0  

Telecommunication Services

      2.5  

Utilities

      3.1  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

    $ 126,780      $ —        $ —        $ 126,780  

Investment Companies

      430        —          —          430  

Short-Term Investments

      —          190        —          190  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 127,210      $ 190      $ —        $ 127,400  
  

 

 

     

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                            

Assets

            

Futures Contracts

    $ 2      $ —        $ —        $ 2  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 117,038  
  

 

 

  

Gross tax appreciation of investments

    $ 14,391  

Gross tax depreciation of investments

      (4,029 ) 
  

 

 

  

Net tax appreciation of investments

    $ 10,362  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 1,541      $ 16,277      $ 17,388      $ 2      $ 430  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

LARGE CAP EQUITY FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 99.6%

      

Apparel & Textile Products - 1.9%

      

NIKE, Inc., Class B

      43,796      $ 2,226  
  

 

 

     

 

 

  

Asset Management - 1.5%

      

Charles Schwab (The) Corp.

      44,935        1,774  
  

 

 

     

 

 

  

Banking - 11.6%

      

Citigroup, Inc.

      47,110        2,800  

JPMorgan Chase & Co.

      67,008        5,782  

Wells Fargo & Co.

      91,666        5,052  
  

 

 

     

 

 

  
        13,634  
     

 

 

  

Biotechnology & Pharmaceuticals - 12.0%

      

Alexion Pharmaceuticals, Inc.*

      7,248        887  

Allergan PLC*

      16,701        3,507  

Biogen, Inc.*

      8,765        2,486  

Celgene Corp.*

      26,030        3,013  

Gilead Sciences, Inc.

      26,401        1,890  

Shire PLC ADR

      13,792        2,350  
  

 

 

     

 

 

  
        14,133  
     

 

 

  

Consumer Products - 4.8%

      

Coca-Cola (The) Co.

      50,132        2,079  

Mondelez International, Inc., Class A

      44,651        1,979  

Procter & Gamble (The) Co.

      18,581        1,562  
  

 

 

     

 

 

  
        5,620  
     

 

 

  

Electrical Equipment - 4.6%

      

Fortive Corp.

      8,959        480  

General Electric Co.

      116,382        3,678  

Honeywell International, Inc.

      10,486        1,215  
  

 

 

     

 

 

  
        5,373  
     

 

 

  

Gaming, Lodging & Restaurants - 4.8%

      

McDonald’s Corp.

      11,015        1,341  

Starbucks Corp.

      42,141        2,339  

Wynn Resorts Ltd.

      12,184        1,054  

Yum! Brands, Inc.

      15,202        963  
  

 

 

     

 

 

  
        5,697  
     

 

 

  

Hardware - 4.2%

      

Apple, Inc.

      42,881        4,966  
  

 

 

     

 

 

  

Health Care Facilities & Services - 1.7%

      

Express Scripts Holding Co.*

      28,734        1,977  
  

 

 

     

 

 

  

Home & Office Products - 1.4%

      

Masco Corp.

      53,668        1,697  
  

 

 

     

 

 

  

Industrial Services - 0.9%

      

W.W. Grainger, Inc.

      4,670        1,085  
  

 

 

     

 

 

  

Institutional Financial Services - 2.8%

      

Intercontinental Exchange, Inc.

      57,862        3,265  
  

 

 

     

 

 

  

Insurance - 3.1%

      

Allstate (The) Corp.

      26,965        1,999  

American International Group, Inc.

      25,278        1,651  
  

 

 

     

 

 

  
        3,650  
     

 

 

  

Iron & Steel - 1.3%

      

Nucor Corp.

      24,839        1,478  
  

 

 

     

 

 

  

Media - 10.1%

      

Alphabet, Inc., Class A*

      1,714        1,358  

Alphabet, Inc., Class C*

      5,873        4,533  

Twenty-First Century Fox, Inc., Class A

      98,237        2,755  

Twitter, Inc.*

      47,794        779  

Walt Disney (The) Co.

      23,193        2,417  
  

 

 

     

 

 

  
        11,842  
     

 

 

  

Medical Equipment & Devices - 4.1%

      

Abbott Laboratories

      32,040        1,230  

Baxter International, Inc.

      27,899        1,237  

Zimmer Biomet Holdings, Inc.

      22,547        2,327  
  

 

 

     

 

 

  
        4,794  
     

 

 

  

Oil, Gas & Coal - 7.6%

      

BP PLC ADR

      52,220        1,952  

EOG Resources, Inc.

      15,807        1,598  

Exxon Mobil Corp.

      38,621        3,486  

Schlumberger Ltd.

      22,205        1,864  
  

 

 

     

 

 

  
        8,900  
     

 

 

  

Real Estate Investment Trusts - 1.8%

      

American Tower Corp.

      19,543        2,065  
  

 

 

     

 

 

  

Retail - Consumer Staples - 2.7%

      

CVS Health Corp.

      40,260        3,177  
  

 

 

     

 

 

  

Retail - Discretionary - 4.1%

      

Dick’s Sporting Goods, Inc.

      43,970        2,335  

Kohl’s Corp.

      50,196        2,478  
  

 

 

     

 

 

  
        4,813  
     

 

 

  

Semiconductors - 3.8%

      

NXP Semiconductors N.V.*

      27,054        2,651  

QUALCOMM, Inc.

      28,323        1,847  
  

 

 

     

 

 

  
        4,498  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP EQUITY FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 99.6% continued

 

Software - 6.0%

      

Activision Blizzard, Inc.

      44,393      $ 1,603  

Oracle Corp.

      37,490        1,441  

Red Hat, Inc.*

      26,694        1,861  

salesforce.com, Inc.*

      31,551        2,160  
  

 

 

     

 

 

  
        7,065  
     

 

 

  

Specialty Finance - 2.0%

      

Alliance Data Systems Corp.

      10,044        2,295  
  

 

 

     

 

 

  

Utilities - 0.8%

      

Duke Energy Corp.

      11,681        907  
  

 

 

     

 

 

  

Total Common Stocks

(Cost $84,987)

         116,931  
     

 

 

  

INVESTMENT COMPANIES - 0.5%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(1) (2)

      597,978        598  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $598)

         598  
     

 

 

  

Total Investments - 100.1%

(Cost $85,585)

         117,529  
     

 

 

  

Liabilities less Other Assets - (0.1%)

         (90 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 117,439  
     

 

 

  

 

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(2) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      15.3 % 

Consumer Staples

      7.5  

Energy

      7.6  

Financials

      19.1  

Health Care

      17.9  

Industrials

      7.0  

Information Technology

      21.8  

Materials

      1.2  

Real Estate

      1.8  

Utilities

      0.8  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

    $ 116,931      $ —        $ —        $ 116,931  

Investment Companies

      598        —          —          598  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 117,529      $ —        $ —        $ 117,529  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 87,441  
  

 

 

  

Gross tax appreciation of investments

    $ 33,418  

Gross tax depreciation of investments

      (3,330 ) 
  

 

 

  

Net tax appreciation of investments

    $ 30,088  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 863      $ 15,010      $ 15,275      $ 1      $ 598  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

LARGE CAP VALUE FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.5%

      

Aerospace & Defense - 2.8%

      

Harris Corp.

      184      $ 19  

L-3 Communications Holdings, Inc.

      73        11  

Spirit AeroSystems Holdings, Inc., Class A

      8,715        509  

United Technologies Corp.

      18,778        2,058  
  

 

 

     

 

 

  
        2,597  
     

 

 

  

Asset Management - 0.0%

      

Franklin Resources, Inc.

      694        27  
  

 

 

     

 

 

  

Automotive - 0.2%

      

Lear Corp.

      1,180        156  
  

 

 

     

 

 

  

Banking - 11.1%

      

Bank of America Corp.

      87,714        1,939  

Citigroup, Inc.

      48,592        2,888  

Fifth Third Bancorp

      3,033        82  

JPMorgan Chase & Co.

      24,642        2,126  

PNC Financial Services Group (The), Inc.

      11,004        1,287  

US Bancorp

      7,120        366  

Wells Fargo & Co.

      29,422        1,621  
  

 

 

     

 

 

  
        10,309  
     

 

 

  

Biotechnology & Pharmaceuticals - 5.4%

      

Amgen, Inc.

      2,537        371  

Merck & Co., Inc.

      34,554        2,034  

Pfizer, Inc.

      81,864        2,659  
  

 

 

     

 

 

  
        5,064  
     

 

 

  

Chemicals - 1.7%

      

Cabot Corp.

      13,789        697  

Celanese Corp., Series A

      9,801        772  

Dow Chemical (The) Co.

      1,085        62  
  

 

 

     

 

 

  
        1,531  
     

 

 

  

Commercial Services - 0.4%

      

ManpowerGroup, Inc.

      4,008        356  
  

 

 

     

 

 

  

Consumer Products - 4.2%

      

Archer-Daniels-Midland Co.

      5,997        274  

Flowers Foods, Inc.

      21,494        429  

JM Smucker (The) Co.

      6,230        798  

Nu Skin Enterprises, Inc., Class A

      6,071        290  

Pilgrim’s Pride Corp.

      37,051        704  

Procter & Gamble (The) Co.

      16,734        1,407  
  

 

 

     

 

 

  
        3,902  
     

 

 

  

Consumer Services - 0.2%

      

Graham Holdings Co., Class B

      341        175  
  

 

 

     

 

 

  

Containers & Packaging - 0.7%

      

Sonoco Products Co.

      12,958        683  
  

 

 

     

 

 

  

Design, Manufacturing & Distribution - 1.7%

      

Arrow Electronics, Inc.*

      10,374        740  

Avnet, Inc.

      15,104        719  

Jabil Circuit, Inc.

      5,265        124  
  

 

 

     

 

 

  
        1,583  
     

 

 

  

Electrical Equipment - 2.3%

      

Eaton Corp. PLC

      2,497        168  

General Electric Co.

      61,750        1,951  
  

 

 

     

 

 

  
        2,119  
     

 

 

  

Engineering & Construction Services - 0.7%

      

Jacobs Engineering Group, Inc.*

      11,855        676  
  

 

 

     

 

 

  

Hardware - 1.8%

      

Apple, Inc.

      1,775        206  

Cisco Systems, Inc.

      38,904        1,176  

Corning, Inc.

      5,245        127  

NetApp, Inc.

      4,373        154  
  

 

 

     

 

 

  
        1,663  
     

 

 

  

Health Care Facilities & Services - 2.6%

      

Anthem, Inc.

      7,975        1,146  

Cardinal Health, Inc.

      7,429        535  

Cigna Corp.

      760        101  

Humana, Inc.

      2,850        581  

Patterson Cos., Inc.

      1,988        82  

Quest Diagnostics, Inc.

      170        16  
  

 

 

     

 

 

  
        2,461  
     

 

 

  

Home & Office Products - 0.7%

      

NVR, Inc.*

      289        482  

Stanley Black & Decker, Inc.

      1,086        125  
  

 

 

     

 

 

  
        607  
     

 

 

  

Institutional Financial Services - 3.9%

      

Bank of New York Mellon (The) Corp.

      11,760        557  

Goldman Sachs Group (The), Inc.

      9,541        2,285  

Morgan Stanley

      875        37  

State Street Corp.

      9,345        726  
  

 

 

     

 

 

  
        3,605  
     

 

 

  

Insurance - 7.9%

      

Allstate (The) Corp.

      7,775        576  

American International Group, Inc.

      19,888        1,299  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP VALUE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.5% continued

      

Insurance - 7.9% continued

      

Aspen Insurance Holdings Ltd.

      13,540      $ 745  

Assurant, Inc.

      8,301        771  

Assured Guaranty Ltd.

      19,792        747  

Axis Capital Holdings Ltd.

      11,593        757  

Berkshire Hathaway, Inc., Class B*

      4,406        718  

Everest Re Group Ltd.

      3,459        748  

Hartford Financial Services Group (The), Inc.

      1,840        88  

Lincoln National Corp.

      2,085        138  

RenaissanceRe Holdings Ltd.

      5,466        745  

Validus Holdings Ltd.

      660        36  
  

 

 

     

 

 

  
        7,368  
     

 

 

  

Iron & Steel - 1.2%

      

Nucor Corp.

      7,290        434  

Reliance Steel & Aluminum Co.

      8,785        699  
  

 

 

     

 

 

  
        1,133  
     

 

 

  

Machinery - 0.4%

      

Parker-Hannifin Corp.

      2,806        393  
  

 

 

     

 

 

  

Manufactured Goods - 0.9%

      

Timken (The) Co.

      4,015        159  

Valmont Industries, Inc.

      4,557        642  
  

 

 

     

 

 

  
        801  
     

 

 

  

Media - 0.8%

      

Twenty-First Century Fox, Inc., Class A

      26,504        743  
  

 

 

     

 

 

  

Medical Equipment & Devices - 2.9%

      

Abbott Laboratories

      684        26  

Baxter International, Inc.

      18,662        827  

Danaher Corp.

      18,533        1,443  

Medtronic PLC

      5,586        398  
  

 

 

     

 

 

  
        2,694  
     

 

 

  

Oil, Gas & Coal - 12.5%

      

Baker Hughes, Inc.

      18,210        1,183  

Chevron Corp.

      20,708        2,437  

ConocoPhillips

      39,524        1,982  

CONSOL Energy, Inc.

      35,003        638  

Diamond Offshore Drilling, Inc.*

      1,601        28  

Dril-Quip, Inc.*

      11,256        676  

Exxon Mobil Corp.

      13,904        1,255  

HollyFrontier Corp.

      3,308        108  

Nabors Industries Ltd.

      8,623        141  

National Oilwell Varco, Inc.

      20,854        781  

Noble Corp. PLC

      12,038        71  

Noble Energy, Inc.

      12,366        471  

Superior Energy Services, Inc.

      10,729        181  

Valero Energy Corp.

      19,533        1,335  

Weatherford International PLC*

      16,527        83  

World Fuel Services Corp.

      5,658        260  
  

 

 

     

 

 

  
        11,630  
     

 

 

  

Passenger Transportation - 1.2%

      

Delta Air Lines, Inc.

      12,366        608  

United Continental Holdings, Inc.*

      6,926        505  
  

 

 

     

 

 

  
        1,113  
     

 

 

  

Real Estate Investment Trusts - 5.7%

      

AvalonBay Communities, Inc.

      5,697        1,009  

CoreCivic, Inc.

      14,298        350  

Equity Residential

      14,810        953  

Highwoods Properties, Inc.

      14,571        743  

Host Hotels & Resorts, Inc.

      41,441        781  

Kilroy Realty Corp.

      4,804        352  

Prologis, Inc.

      10,864        573  

Retail Properties of America, Inc., Class A

      33,795        518  
  

 

 

     

 

 

  
        5,279  
     

 

 

  

Retail - Consumer Staples - 4.4%

      

CVS Health Corp.

      9,352        738  

Target Corp.

      16,155        1,167  

Walgreens Boots Alliance, Inc.

      461        38  

Wal-Mart Stores, Inc.

      31,377        2,169  
  

 

 

     

 

 

  
        4,112  
     

 

 

  

Retail - Discretionary - 2.3%

      

Bed Bath & Beyond, Inc.

      9,583        389  

Best Buy Co., Inc.

      16,995        725  

Dillard’s, Inc., Class A

      265        17  

GameStop Corp., Class A

      1,836        46  

Kohl’s Corp.

      10,569        522  

Macy’s, Inc.

      11,184        401  

Staples, Inc.

      2,629        24  
  

 

 

     

 

 

  
        2,124  
     

 

 

  

Semiconductors - 2.9%

      

Intel Corp.

      23,145        839  

QUALCOMM, Inc.

      29,138        1,900  
  

 

 

     

 

 

  
        2,739  
     

 

 

  

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.5% continued

 

Software - 1.5%

      

ANSYS, Inc.*

      2,921      $ 270  

CA, Inc.

      21,232        675  

Oracle Corp.

      11,184        430  
  

 

 

     

 

 

  
        1,375  
     

 

 

  

Specialty Finance - 2.7%

      

Ally Financial, Inc.

      38,473        732  

Capital One Financial Corp.

      3,647        318  

CIT Group, Inc.

      18,344        783  

Navient Corp.

      41,727        685  
  

 

 

     

 

 

  
        2,518  
     

 

 

  

Technology Services - 2.3%

      

Computer Sciences Corp.

      10,381        617  

DST Systems, Inc.

      5,344        572  

Teradata Corp.*

      14,501        394  

Xerox Corp.

      65,390        571  
  

 

 

     

 

 

  
        2,154  
     

 

 

  

Telecom - 3.1%

      

AT&T, Inc.

      49,025        2,085  

CenturyLink, Inc.

      32,156        765  
  

 

 

     

 

 

  
        2,850  
     

 

 

  

Transportation Equipment - 0.1%

      

Cummins, Inc.

      672        92  
  

 

 

     

 

 

  

Utilities - 5.3%

      

Ameren Corp.

      262        14  

American Electric Power Co., Inc.

      10,020        631  

Calpine Corp.*

      45,053        515  

Consolidated Edison, Inc.

      1,311        97  

Duke Energy Corp.

      13,353        1,036  

Edison International

      6,754        486  

FirstEnergy Corp.

      22,837        707  

Great Plains Energy, Inc.

      26,477        724  

OGE Energy Corp.

      22,359        748  
  

 

 

     

 

 

  
        4,958  
     

 

 

  

Total Common Stocks

(Cost $82,056)

         91,590  
     

 

 

  

RIGHTS - 0.0%

      

Real Estate Investment Trusts - 0.0%

      

Property Development Centers LLC (Contingent Value Rights)*

      24,083        1  
  

 

 

     

 

 

  

Retail - Consumer Staples - 0.0%

      

Casa Ley (Contingent Value Rights)*

      24,083        25  
  

 

 

     

 

 

  

Total Rights

(Cost $26)

         26  
     

 

 

  

INVESTMENT COMPANIES - 1.3%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(1) (2) 

      1,219,439        1,219  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $1,219)

         1,219  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.2%

      

U.S. Treasury Bill,

      

0.46%, 3/2/17(3) (4)

    $ 150      $ 150  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $150)

         150  
     

 

 

  

Total Investments - 100.0%

(Cost $83,451)

         92,985  
     

 

 

  

Other Assets less Liabilities - 0.0%

         32  
     

 

 

  

NET ASSETS - 100.0%

       $ 93,017  
     

 

 

  

 

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(2) 7-day yield as of December 31, 2016 is disclosed.
(3) Discount rate at the time of purchase.
(4) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-mini S&P500

      12      $ 1,342        Long        3/17      $ (2 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

LARGE CAP VALUE FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      5.3 % 

Consumer Staples

      7.5  

Energy

      12.7  

Financials

      26.0  

Health Care

      11.2  

Industrials

      9.0  

Information Technology

      10.4  

Materials

      3.6  

Real Estate

      5.8  

Telecommunication Services

      3.1  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

    $ 91,590     $ —        $ —        $ 91,590  

Rights(1)

      —         26        —          26  

Investment Companies

      1,219       —          —          1,219  

Short-Term Investments

      —         150        —          150  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 92,809     $ 176      $ —        $ 92,985  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Liabilities

           

Futures Contracts

    $ (2 )    $ —        $ —        $ (2 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 83,779  
  

 

 

  

Gross tax appreciation of investments

    $ 11,724  

Gross tax depreciation of investments

      (2,518 ) 
  

 

 

  

Net tax appreciation of investments

    $ 9,206  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016,were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 717      $ 13,142      $ 12,640      $ 1      $ 1,219  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

SMALL CAP CORE FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4%

 

Aerospace & Defense - 1.4%

      

AAR Corp.

      9,421      $ 311  

Aerojet Rocketdyne Holdings, Inc.*

      14,102        253  

Aerovironment, Inc.*

      4,791        128  

Astronics Corp.*

      7,524        255  

Astronics Corp., Class B*

      2,451        83  

Ducommun, Inc.*

      3,231        83  

Esterline Technologies Corp.*

      8,240        735  

HEICO Corp.

      10,203        787  

KLX, Inc.*

      14,784        667  

LMI Aerospace, Inc.*

      1,047        9  

Moog, Inc., Class A*

      8,596        565  

Sevcon, Inc.*

      540        5  

SIFCO Industries, Inc.*

      422        3  

Smith & Wesson Holding Corp.*

      14,461        305  

Sturm Ruger & Co., Inc.

      5,039        266  

TASER International, Inc.*

      14,903        361  

Teledyne Technologies, Inc.*

      9,801        1,205  

Triumph Group, Inc.

      8,362        222  

Woodward, Inc.

      17,226        1,189  
  

 

 

     

 

 

  
        7,432  
     

 

 

  

Apparel & Textile Products - 0.7%

      

Albany International Corp., Class A

      7,851        363  

Cherokee, Inc.*

      387        4  

Columbia Sportswear Co.

      7,788        454  

Crocs, Inc.*

      21,617        148  

Culp, Inc.

      4,181        155  

Deckers Outdoor Corp.*

      8,754        485  

Delta Apparel, Inc.*

      9,100        189  

Iconix Brand Group, Inc.*

      3,816        36  

Movado Group, Inc.

      3,662        105  

Oxford Industries, Inc.

      3,099        186  

Perry Ellis International, Inc.*

      2,718        68  

Steven Madden Ltd.*

      15,220        544  

Superior Uniform Group, Inc.

      8,000        157  

Unifi, Inc.*

      7,138        233  

Weyco Group, Inc.

      3,602        113  

Wolverine World Wide, Inc.

      27,780        610  
  

 

 

     

 

 

  
        3,850  
     

 

 

  

Asset Management - 0.8%

      

Altisource Asset Management Corp.*

      3,466        185  

Artisan Partners Asset Management, Inc., Class A

      9,278        276  

Ashford, Inc.*

      180        8  

Associated Capital Group, Inc., Class A

      6,657        219  

Calamos Asset Management, Inc., Class A

      2,074        18  

Cohen & Steers, Inc.

      6,284        211  

Diamond Hill Investment Group, Inc.

      1,099        231  

Financial Engines, Inc.

      12,647        465  

GAMCO Investors, Inc., Class A

      2,680        83  

Janus Capital Group, Inc.

      35,998        478  

Kennedy-Wilson Holdings, Inc.

      22,765        467  

Manning & Napier, Inc.

      13,459        102  

NorthStar Asset Management Group, Inc.

      17,696        264  

Pzena Investment Management, Inc., Class A

      4,472        50  

Safeguard Scientifics, Inc.*

      3,153        42  

Siebert Financial Corp.

      919        3  

StoneCastle Financial Corp.

      3,879        72  

Virtus Investment Partners, Inc.

      2,506        296  

Waddell & Reed Financial, Inc., Class A

      20,698        404  

Westwood Holdings Group, Inc.

      2,623        157  

WisdomTree Investments, Inc.

      14,499        161  
  

 

 

     

 

 

  
        4,192  
     

 

 

  

Automotive - 1.1%

      

American Axle & Manufacturing

      

Holdings, Inc.*

      20,441        395  

Cooper Tire & Rubber Co.

      12,337        479  

Cooper-Standard Holdings, Inc.*

      3,699        382  

Dana, Inc.

      39,118        742  

Dorman Products, Inc.*

      10,328        755  

Gentherm, Inc.*

      9,736        330  

Horizon Global Corp.*

      2,625        63  

Metaldyne Performance Group, Inc.

      7,239        166  

Methode Electronics, Inc.

      8,040        332  

Miller Industries, Inc.

      9,169        243  

Modine Manufacturing Co.*

      2,673        40  

Motorcar Parts of America, Inc.*

      6,527        176  

Standard Motor Products, Inc.

      7,598        404  

Strattec Security Corp.

      531        21  

Superior Industries International, Inc.

      5,180        137  

Tenneco, Inc.*

      15,561        972  

Unique Fabricating, Inc.

      300        4  
  

 

 

     

 

 

  
        5,641  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Banking - 12.2%

      

1st Source Corp.

      6,068      $ 271  

Access National Corp.

      7,046        196  

American National Bankshares, Inc.

      2,847        99  

Ameris Bancorp*

      6,206        271  

Ames National Corp.

      2,706        89  

Arrow Financial Corp.

      8,289        336  

Astoria Financial Corp.

      11,005        205  

Athens Bancshares Corp.

      2,800        97  

Banc of California, Inc.

      6,816        118  

BancFirst Corp.

      3,899        363  

Banco Latinoamericano de Comercio Exterior S.A.

      8,934        263  

Bancorp (The), Inc.*

      1,492        12  

BancorpSouth, Inc.

      23,662        735  

Bank Mutual Corp.

      5,674        54  

Bank of Hawaii Corp.

      10,699        949  

Bank of Marin Bancorp

      4,181        292  

Bank of South Carolina Corp.

      110        2  

Bank of the Ozarks, Inc.

      19,143        1,007  

BankFinancial Corp.

      1,831        27  

Bankwell Financial Group, Inc.

      1,121        36  

Banner Corp.

      2,709        151  

Bar Harbor Bankshares

      3,063        145  

BCB Bancorp, Inc.

      508        7  

Beneficial Bancorp, Inc.

      20,215        372  

Berkshire Bancorp, Inc.

      121        1  

Berkshire Hills Bancorp, Inc.

      10,013        369  

Blue Hills Bancorp, Inc.

      8,056        151  

BNC Bancorp

      8,668        276  

BofI Holding, Inc.*

      15,511        443  

Boston Private Financial Holdings, Inc.

      17,101        283  

Bridge Bancorp, Inc.

      4,079        155  

Brookline Bancorp, Inc.

      23,158        380  

Bryn Mawr Bank Corp.

      5,450        230  

C&F Financial Corp.

      450        22  

California First National Bancorp

      1,739        27  

Camden National Corp.

      4,260        189  

Capital Bank Financial Corp., Class A

      5,506        216  

Capital City Bank Group, Inc.

      4,318        88  

Capitol Federal Financial, Inc.

      34,536        568  

Cardinal Financial Corp.

      9,823        322  

Cascade Bancorp*

      6,017        49  

Cathay General Bancorp

      19,644        747  

CenterState Banks, Inc.

      8,468        213  

Central Pacific Financial Corp.

      5,098        160  

Century Bancorp, Inc., Class A

      5,370        322  

Chemical Financial Corp.

      10,653        577  

Citizens & Northern Corp.

      752        20  

City Holding Co.

      5,396        365  

Clifton Bancorp, Inc.

      7,436        126  

CoBiz Financial, Inc.

      1,671        28  

Columbia Banking System, Inc.

      14,115        631  

Commercial National Financial Corp.

      121        3  

Community Bank System, Inc.

      10,482        648  

Community Trust Bancorp, Inc.

      6,360        315  

ConnectOne Bancorp, Inc.

      5,661        147  

Customers Bancorp, Inc.*

      10,299        369  

CVB Financial Corp.

      26,024        597  

Dime Community Bancshares, Inc.

      7,971        160  

DNB Financial Corp.

      4,781        136  

Eagle Bancorp, Inc.*

      7,414        452  

Enterprise Bancorp, Inc.

      635        24  

Enterprise Financial Services Corp.

      769        33  

ESSA Bancorp, Inc.

      10,072        158  

EverBank Financial Corp.

      16,000        311  

Farmers Capital Bank Corp.*

      3,674        154  

FCB Financial Holdings, Inc., Class A*

      7,188        343  

Fidelity Southern Corp.

      1,825        43  

Financial Institutions, Inc.

      8,383        287  

First Bancorp

      8,636        234  

First Bancorp, Inc.

      3,196        106  

First Busey Corp.

      11,356        350  

First Citizens BancShares, Inc., Class A

      2,256        801  

First Commonwealth Financial Corp.

      21,719        308  

First Community Bancshares, Inc.

      5,015        151  

First Connecticut Bancorp, Inc.

      7,341        166  

First Defiance Financial Corp.

      7,415        376  

First Financial Bancorp

      15,353        437  

First Financial Bankshares, Inc.

      20,324        919  

First Financial Corp.

      2,786        147  

First Financial Northwest, Inc.

      699        14  

First Internet Bancorp

      8,056        258  

First Interstate BancSystem, Inc., Class A

      6,527        278  

First Merchants Corp.

      9,486        357  

First Mid-Illinois Bancshares, Inc.

      37        1  

First Midwest Bancorp, Inc.

      19,103        482  

First NBC Bank Holding Co.*

      148        1  

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Banking - 12.2% continued

      

First of Long Island (The) Corp.

      12,749      $ 364  

First South Bancorp, Inc.*

      344        4  

Flushing Financial Corp.

      4,757        140  

FNB Corp.

      63,048        1,011  

Fulton Financial Corp.

      43,305        814  

German American Bancorp, Inc.

      340        18  

Glacier Bancorp, Inc.

      18,486        670  

Great Southern Bancorp, Inc.

      5,807        317  

Great Western Bancorp, Inc.

      7,773        339  

Guaranty Bancorp

      849        21  

Hancock Holding Co.

      19,134        825  

Hanmi Financial Corp.

      10,251        358  

Hawthorn Bancshares, Inc.

      1,127        20  

Heartland Financial USA, Inc.

      6,537        314  

Heritage Financial Corp.

      1,152        30  

Hilltop Holdings, Inc.

      18,595        554  

Hingham Institution for Savings

      65        13  

Home BancShares, Inc.

      27,972        777  

Home Federal Bancorp, Inc.

      2,915        78  

Hope Bancorp, Inc.

      24,759        542  

IBERIABANK Corp.

      9,389        786  

Independent Bank Corp.

      8,484        598  

Independent Bank Corp. (Berlin Exchange)

      4,790        104  

Independent Bank Group, Inc.

      4,181        261  

International Bancshares Corp.

      10,027        409  

Investors Bancorp, Inc.

      99,457        1,387  

Kearny Financial Corp.

      22,927        356  

Kentucky First Federal Bancorp

      724        7  

Lake Shore Bancorp, Inc.

      300        5  

Lakeland Bancorp, Inc.

      8,352        163  

Lakeland Financial Corp.

      5,505        261  

Landmark Bancorp, Inc.

      5,865        164  

LegacyTexas Financial Group, Inc.

      18,783        809  

MainSource Financial Group, Inc.

      1,283        44  

MB Financial, Inc.

      18,385        868  

Mercantile Bank Corp.*

      5,914        223  

Merchants Bancshares, Inc.

      6,961        377  

Meridian Bancorp, Inc.

      16,392        310  

Middleburg Financial Corp.

      2,377        83  

MidSouth Bancorp, Inc.

      762        10  

MidWestOne Financial Group, Inc.

      464        17  

MSB Financial Corp.*

      2,550        37  

MutualFirst Financial, Inc.

      378        12  

NASB Financial, Inc.

      4,247        148  

National Bank Holdings Corp., Class A

      8,760        279  

National Bankshares, Inc.

      1,951        85  

National Commerce Corp.*

      4,995        186  

NBT Bancorp, Inc.

      10,221        428  

Northeast Community Bancorp, Inc.

      897        7  

Northfield Bancorp, Inc.

      16,412        328  

Northrim BanCorp, Inc.

      3,309        105  

Northwest Bancshares, Inc.

      17,771        320  

Norwood Financial Corp.

      2,182        72  

OceanFirst Financial Corp.

      6,268        188  

OFG Bancorp

      8,108        106  

Ohio Valley Banc Corp.

      719        20  

Old National Bancorp

      40,591        737  

Old Second Bancorp, Inc.

      11,490        127  

Opus Bank

      2,346        70  

Oritani Financial Corp.

      16,877        316  

Pacific Continental Corp.

      780        17  

Pacific Premier Bancorp, Inc.*

      4,793        169  

Park National Corp.

      2,320        278  

Peapack Gladstone Financial Corp.

      4,593        142  

Peoples Bancorp, Inc.

      800        26  

Peoples Financial Corp.*

      236        4  

Peoples Financial Services Corp.

      408        20  

Pinnacle Financial Partners, Inc.

      7,667        531  

Popular, Inc.

      23,655        1,037  

Preferred Bank

      2,754        144  

Premier Financial Bancorp, Inc.*

      2,135        43  

PrivateBancorp, Inc.

      18,303        992  

Prosperity Bancshares, Inc.

      17,154        1,231  

Provident Financial Services, Inc.

      16,024        453  

Prudential Bancorp, Inc.

      1,121        19  

QCR Holdings, Inc.

      7,829        339  

Renasant Corp.

      9,880        417  

Republic Bancorp, Inc., Class A

      1,912        76  

Republic First Bancorp, Inc.*

      26,301        220  

S&T Bancorp, Inc.

      9,668        377  

Sandy Spring Bancorp, Inc.

      8,385        335  

Seacoast Banking Corp. of Florida*

      858        19  

ServisFirst Bancshares, Inc.

      11,012        412  

Severn Bancorp, Inc.*

      1,392        11  

Shore Bancshares, Inc.

      691        11  

SI Financial Group, Inc.

      797        12  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Banking - 12.2% continued

      

Sierra Bancorp

      800      $ 21  

Simmons First National Corp., Class A

      7,363        458  

South State Corp.

      6,783        593  

Southern National Bancorp of Virginia, Inc.

      669        11  

Southside Bancshares, Inc.

      7,886        297  

Southwest Bancorp, Inc.

      794        23  

State Bank Financial Corp.

      13,868        372  

Sterling Bancorp

      32,805        768  

Stock Yards Bancorp, Inc.

      9,197        432  

Suffolk Bancorp*

      712        30  

Sun Bancorp, Inc.

      295        8  

TCF Financial Corp.

      40,256        789  

Texas Capital Bancshares, Inc.*

      6,440        505  

Tompkins Financial Corp.

      4,470        423  

Towne Bank

      11,354        378  

TriCo Bancshares

      3,158        108  

TrustCo Bank Corp. NY

      9,748        85  

Trustmark Corp.

      16,549        590  

UMB Financial Corp.

      11,550        891  

Umpqua Holdings Corp.

      54,149        1,017  

Union Bankshares Corp.

      10,450        373  

United Bancorp, Inc.

      498        7  

United Bankshares, Inc.

      17,092        790  

United Community Banks, Inc.

      13,067        387  

United Financial Bancorp, Inc.

      6,756        123  

Univest Corp. of Pennsylvania

      3,073        95  

Valley National Bancorp

      54,093        630  

Washington Federal, Inc.

      23,248        799  

Washington Trust Bancorp, Inc.

      3,638        204  

Waterstone Financial, Inc.

      3,934        72  

Webster Financial Corp.

      22,237        1,207  

WesBanco, Inc.

      9,601        413  

West Bancorporation, Inc.

      3,008        74  

Westamerica Bancorporation

      6,333        399  

Western Alliance Bancorp*

      21,070        1,026  

Western New England Bancorp, Inc.

      4,192        39  

Wintrust Financial Corp.

      6,710        487  

WSFS Financial Corp.

      11,640        539  

Yadkin Financial Corp.

      10,074        345  
  

 

 

     

 

 

  
        63,786  
     

 

 

  

Biotechnology & Pharmaceuticals - 4.7%

      

ACADIA Pharmaceuticals, Inc.*

      1,521        44  

Aceto Corp.

      5,369        118  

Achillion Pharmaceuticals, Inc.*

      30,214        125  

Aclaris Therapeutics, Inc.*

      6,118        166  

Acorda Therapeutics, Inc.*

      7,981        150  

Adamas Pharmaceuticals, Inc.*

      7,749        131  

Adamis Pharmaceuticals Corp.*

      3,260        10  

Advaxis, Inc.*

      9,687        69  

Adverum Biotechnologies, Inc.*

      262        1  

Aerie Pharmaceuticals, Inc.*

      10,401        394  

Agenus, Inc.*

      14,480        60  

Agios Pharmaceuticals, Inc.*

      7,143        298  

Akorn, Inc.*

      20,793        454  

Albany Molecular Research, Inc.*

      11,051        207  

Alder Biopharmaceuticals, Inc.*

      2,858        59  

Aldeyra Therapeutics, Inc.*

      4,124        22  

AMAG Pharmaceuticals, Inc.*

      11,049        385  

Amicus Therapeutics, Inc.*

      6,737        33  

Amphastar Pharmaceuticals, Inc.*

      13,970        257  

ANI Pharmaceuticals, Inc.*

      3,160        192  

Anika Therapeutics, Inc.*

      6,369        312  

Aptevo Therapeutics, Inc.*

      5,458        13  

Aquinox Pharmaceuticals, Inc.*

      17,947        296  

Aralez Pharmaceuticals, Inc.*

      11,544        51  

Aratana Therapeutics, Inc.*

      4,995        36  

Ardelyx, Inc.*

      8,362        119  

Arena Pharmaceuticals, Inc.*

      4,931        7  

Array BioPharma, Inc.*

      17,941        158  

Assembly Biosciences, Inc.*

      7,749        94  

Asterias Biotherapeutics, Inc.*

      258        1  

Atara Biotherapeutics, Inc.*

      8,058        114  

Avexis, Inc.*

      2,856        136  

Bellicum Pharmaceuticals, Inc.*

      12,441        169  

BioCryst Pharmaceuticals, Inc.*

      7,285        46  

BioDelivery Sciences International, Inc.*

      2,775        5  

BioSpecifics Technologies Corp.*

      4,642        259  

Blueprint Medicines Corp.*

      3,671        103  

Cambrex Corp.*

      19,469        1,050  

Cara Therapeutics, Inc.*

      5,506        51  

Celldex Therapeutics, Inc.*

      6,681        24  

Cellular Biomedicine Group, Inc.*

      1,418        19  

Cempra, Inc.*

      6,322        18  

Chiasma, Inc.*

      281        1  

Clovis Oncology, Inc.*

      14,496        644  

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Biotechnology & Pharmaceuticals - 4.7% continued

      

Coherus Biosciences, Inc.*

      4,389      $ 124  

Collegium Pharmaceutical, Inc.*

      12,237        191  

Concert Pharmaceuticals, Inc.*

      16,111        166  

Curis, Inc.* (1)

      68        —    

Cytokinetics, Inc.*

      20,698        251  

Depomed, Inc.*

      13,807        249  

Dermira, Inc.*

      6,941        211  

Dicerna Pharmaceuticals, Inc.*

      395        1  

Dipexium Pharmaceuticals, Inc.*

      12,032        19  

Dynavax Technologies Corp.*

      14,558        57  

Eagle Pharmaceuticals, Inc.*

      4,153        329  

Egalet Corp.*

      4,995        38  

Emergent BioSolutions, Inc.*

      10,917        359  

Enanta Pharmaceuticals, Inc.*

      7,954        266  

Epizyme, Inc.*

      6,633        80  

Esperion Therapeutics, Inc.*

      10,605        133  

Exelixis, Inc.*

      57,627        859  

FibroGen, Inc.*

      7,145        153  

Five Prime Therapeutics, Inc.*

      6,940        348  

Flex Pharma, Inc.*

      148        1  

Flexion Therapeutics, Inc.*

      16,520        314  

Geron Corp.*

      19,782        41  

Global Blood Therapeutics, Inc.*

      6,527        94  

Heron Therapeutics, Inc.*

      1,737        23  

Heska Corp.*

      5,751        412  

Horizon Pharma PLC*

      41,000        663  

Immune Design Corp.*

      427        2  

ImmunoGen, Inc.*

      1,107        2  

Immunomedics, Inc.*

      19,058        70  

Impax Laboratories, Inc.*

      18,818        249  

Imprimis Pharmaceuticals, Inc.*

      17,700        44  

Innoviva, Inc.*

      21,923        235  

Inovio Pharmaceuticals, Inc.*

      21,441        149  

Insmed, Inc.*

      20,094        266  

Insys Therapeutics, Inc.*

      9,501        87  

Intersect ENT,Inc.*

      16,824        204  

Intra-Cellular Therapies, Inc.*

      619        9  

Juniper Pharmaceuticals, Inc.*

      5,414        30  

KemPharm, Inc.*

      287        1  

Keryx Biopharmaceuticals, Inc.*

      122        1  

La Jolla Pharmaceutical Co.*

      12,949        227  

Lannett Co., Inc.*

      12,367        273  

Lexicon Pharmaceuticals, Inc.*

      16,384        227  

Ligand Pharmaceuticals, Inc.*

      10,497        1,067  

Lion Biotechnologies, Inc.*

      3,364        23  

Lipocine, Inc.* (1)

      136        —    

Loxo Oncology, Inc.*

      8,056        259  

MacroGenics, Inc.*

      7,860        161  

Medicines (The) Co.*

      11,632        395  

Merrimack Pharmaceuticals, Inc.*

      2,344        10  

Minerva Neurosciences, Inc.*

      11,522        135  

Mirati Therapeutics, Inc.*

      262        1  

Momenta Pharmaceuticals, Inc.*

      12,529        189  

Natural Alternatives International, Inc.*

      729        8  

Nature’s Sunshine Products, Inc.

      7,344        110  

Nektar Therapeutics*

      21,731        267  

Neurocrine Biosciences, Inc.*

      17,871        692  

Neuroderm Ltd.*

      7,035        156  

NewLink Genetics Corp.*

      11,693        120  

Novavax, Inc.*

      2,370        3  

Novelion Therapeutics, Inc.*

      1,055        9  

Nutraceutical International Corp.

      7,047        246  

Ocular Therapeutix, Inc.*

      395        3  

Omega Protein Corp.*

      1,049        26  

Omeros Corp.*

      17,390        173  

OncoMed Pharmaceuticals, Inc.*

      10,074        78  

Osiris Therapeutics, Inc.*

      2,778        14  

Otonomy, Inc.*

      11,828        188  

Pacira Pharmaceuticals, Inc.*

      6,539        211  

Paratek Pharmaceuticals, Inc.*

      13,363        206  

PDL BioPharma, Inc.

      19,881        42  

Pfenex, Inc.*

      2,448        22  

Phibro Animal Health Corp., Class A

      10,605        311  

Prestige Brands Holdings, Inc.*

      13,612        709  

Progenics Pharmaceuticals, Inc.*

      2,400        21  

ProQR Therapeutics N.V.*

      154        1  

Proteostasis Therapeutics, Inc.*

      7,137        87  

Prothena Corp. PLC*

      1,535        76  

PTC Therapeutics, Inc.*

      263        3  

Recro Pharma, Inc.*

      2,148        17  

Retrophin, Inc.*

      8,040        152  

Revance Therapeutics, Inc.*

      12,645        262  

Sangamo BioSciences, Inc.*

      33,092        101  

Sarepta Therapeutics, Inc.*

      3,797        104  

SciClone Pharmaceuticals, Inc.*

      19,830        214  

Sorrento Therapeutics, Inc.*

      28,352        139  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Biotechnology & Pharmaceuticals - 4.7% continued

      

Spark Therapeutics, Inc.*

      2,450      $ 122  

Spectrum Pharmaceuticals, Inc.*

      2,668        12  

Stemline Therapeutics, Inc.*

      3,977        43  

Sucampo Pharmaceuticals, Inc., Class A*

      12,058        163  

Supernus Pharmaceuticals, Inc.*

      6,933        175  

TESARO, Inc.*

      4,357        586  

TG Therapeutics, Inc.*

      1,109        5  

TherapeuticsMD, Inc.*

      8,574        49  

Theravance Biopharma, Inc.*

      6,431        205  

USANA Health Sciences, Inc.*

      7,118        436  

Vanda Pharmaceuticals, Inc.*

      19,065        304  

Versartis, Inc.*

      17,436        260  

Vital Therapies, Inc.*

      560        2  

WaVe Life Sciences Ltd.*

      6,016        157  

XBiotech, Inc.*

      7,341        74  

Xencor, Inc.*

      9,799        258  

ZIOPHARM Oncology, Inc.*

      1,709        9  

Zogenix, Inc.*

      10,503        128  
  

 

 

     

 

 

  
        24,358  
     

 

 

  

Chemicals - 2.1%

      

A. Schulman, Inc.

      10,441        349  

American Vanguard Corp.

      4,261        82  

Balchem Corp.

      8,636        725  

Calgon Carbon Corp.

      17,512        298  

Chemtura Corp.*

      27,133        901  

CSW Industrials, Inc.*

      3,568        132  

Ferro Corp.*

      16,832        241  

FutureFuel Corp.

      14,479        201  

H.B. Fuller Co.

      14,119        682  

Hawkins, Inc.

      6,110        330  

Innophos Holdings, Inc.

      6,737        352  

Innospec, Inc.

      6,465        443  

KMG Chemicals, Inc.

      5,522        215  

Koppers Holdings, Inc.*

      12,207        492  

Kraton Corp.*

      9,163        261  

Kronos Worldwide, Inc.

      700        8  

Landec Corp.*

      3,160        44  

LSB Industries, Inc.* (1)

      19        —    

Lydall, Inc.*

      3,058        189  

Materion Corp.

      9,003        357  

Minerals Technologies, Inc.

      8,037        621  

Oil-Dri Corp. of America

      3,464        132  

Olin Corp.

      12,745        326  

OMNOVA Solutions, Inc.*

      1,808        18  

Platform Specialty Products Corp.*

      37,014        363  

PolyOne Corp.

      6,314        202  

Quaker Chemical Corp.

      4,540        581  

Sensient Technologies Corp.

      13,138        1,032  

Stepan Co.

      4,431        361  

Synalloy Corp.*

      100        1  

Trinseo S.A.

      2,448        145  

Univar, Inc.*

      6,022        171  

WD-40 Co.

      6,433        752  
  

 

 

     

 

 

  
        11,007  
     

 

 

  

Commercial Services - 2.9%

      

ABM Industries, Inc.

      15,620        638  

Advisory Board (The) Co.*

      9,120        303  

AMN Healthcare Services, Inc.*

      12,175        468  

ARC Document Solutions, Inc.*

      2,698        14  

Ascent Capital Group, Inc., Class A*

      1,446        23  

Barrett Business Services, Inc.

      4,110        263  

Brady Corp., Class A

      13,303        499  

Brink’s (The) Co.

      14,828        612  

CBIZ, Inc.*

      21,026        288  

CDI Corp.*

      902        7  

CEB, Inc.

      9,318        565  

Cimpress N.V.*

      8,347        765  

Collectors Universe, Inc.

      10,569        224  

Computer Task Group, Inc.

      1,625        7  

CorVel Corp.*

      7,573        277  

CRA International, Inc.

      10,221        374  

Cross Country Healthcare, Inc.*

      15,439        241  

Deluxe Corp.

      13,907        996  

Ennis, Inc.

      5,337        93  

Franklin Covey Co.*

      1,057        21  

FTI Consulting, Inc.*

      11,580        522  

G&K Services, Inc., Class A

      5,284        510  

GP Strategies Corp.*

      9,160        262  

Hackett Group (The), Inc.

      11,052        195  

Healthcare Services Group, Inc.

      19,858        778  

HMS Holdings Corp.*

      21,645        393  

Huron Consulting Group, Inc.*

      5,547        281  

Information Services Group, Inc.*

      10,669        39  

Innodata, Inc.*

      1,921        5  

Insperity, Inc.

      7,288        517  

 

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31,2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Commercial Services - 2.9% continued

      

Intersections, Inc.* (1)

      38      $ —    

Kelly Services, Inc., Class A

      5,612        129  

Kforce, Inc.

      13,052        301  

Korn/Ferry International

      14,121        416  

LifeLock, Inc.*

      11,228        269  

LSC Communications, Inc.

      888        26  

National Research Corp., Class A

      7,691        146  

Navigant Consulting, Inc.*

      15,197        398  

On Assignment, Inc.*

      14,393        636  

Quad/Graphics, Inc.

      5,506        148  

R.R. Donnelley & Sons Co.

      2,515        41  

Resources Connection, Inc.

      8,770        169  

RPX Corp.*

      11,522        124  

Sotheby’s*

      14,959        596  

SP Plus Corp.*

      4,977        140  

TriNet Group, Inc.*

      5,098        131  

TrueBlue, Inc.*

      10,961        270  

UniFirst Corp.

      4,174        600  

Vectrus, Inc.*

      8,056        192  

Viad Corp.

      5,111        225  

Volt Information Sciences, Inc.*

      2,757        19  

Where Food Comes From, Inc.*

      1,100        2  
  

 

 

     

 

 

  
        15,158  
     

 

 

  

Construction Materials - 1.0%

      

Advanced Drainage Systems, Inc.

      9,381        193  

Apogee Enterprises, Inc.

      7,770        416  

Boise Cascade Co.*

      11,114        250  

Continental Building Products, Inc.*

      5,404        125  

Deltic Timber Corp.

      4,019        310  

Headwaters, Inc.*

      20,827        490  

Louisiana-Pacific Corp.*

      39,907        755  

Patrick Industries, Inc.*

      5,404        412  

Ply Gem Holdings, Inc.*

      8,158        133  

Summit Materials, Inc., Class A*

      17,621        419  

Tecnoglass, Inc.

      6,424        79  

Trex Co., Inc.*

      7,770        500  

United States Lime & Minerals, Inc.*

      4,275        324  

Universal Forest Products, Inc.

      5,568        569  

US Concrete, Inc.*

      3,568        234  
  

 

 

     

 

 

  
        5,209  
     

 

 

  

Consumer Products - 2.0%

      

Adecoagro S.A.*

      25,985        270  

Alico, Inc.

      1,295        35  

B&G Foods, Inc.

      13,412        587  

Boston Beer (The) Co., Inc., Class A*

      2,079        353  

Bridgford Foods Corp.*

      366        4  

Cal-Maine Foods, Inc.

      6,439        284  

Central Garden & Pet Co.*

      200        7  

Central Garden & Pet Co., Class A*

      4,302        133  

Clearwater Paper Corp.*

      3,553        233  

Coca-Cola Bottling Co. Consolidated

      1,781        319  

Craft Brew Alliance, Inc.*

      7,861        133  

Darling Ingredients, Inc.*

      29,113        376  

Dean Foods Co.

      16,845        367  

Farmer Brothers Co.*

      7,253        266  

Fresh Del Monte Produce, Inc.

      7,137        433  

Helen of Troy Ltd.*

      7,674        648  

HRG Group, Inc.*

      13,602        212  

Inter Parfums, Inc.

      5,419        177  

J&J Snack Foods Corp.

      4,396        587  

John B. Sanfilippo & Son, Inc.

      2,550        180  

Lancaster Colony Corp.

      4,215        596  

Lifeway Foods, Inc.*

      296        3  

National Beverage Corp.

      16,869        862  

Orchids Paper Products Co.

      496        13  

Post Holdings, Inc.*

      5,798        466  

Revlon, Inc., Class A*

      496        14  

Sanderson Farms, Inc.

      6,403        603  

Seaboard Corp.*

      78        308  

Seneca Foods Corp., Class A*

      302        12  

Snyder’s-Lance, Inc.

      14,925        572  

Tejon Ranch Co.*

      3,098        79  

TerraVia Holdings, Inc.*

      61,191        70  

Tootsie Roll Industries, Inc.

      12,600        501  

United-Guardian, Inc.

      502        8  

Universal Corp.

      3,932        251  

Vector Group Ltd.

      19,265        438  
  

 

 

     

 

 

  
        10,400  
     

 

 

  

Consumer Services - 0.9%

      

Aaron’s, Inc.

      17,529        561  

American Public Education, Inc.*

      6,025        148  

Apollo Education Group, Inc.*

      19,200        190  

Bridgepoint Education, Inc.*

      399        4  

Bright Horizons Family Solutions, Inc.*

      5,608        393  

Capella Education Co.

      3,473        305  

DeVry Education Group, Inc.

      17,207        537  

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Consumer Services - 0.9% continued

      

Grand Canyon Education, Inc.*

      12,613      $ 737  

K12, Inc.*

      9,453        162  

Matthews International Corp., Class A

      9,201        707  

Medifast, Inc.

      496        21  

Nutrisystem, Inc.

      10,401        360  

Regis Corp.*

      10,031        146  

Rent-A-Center, Inc.

      551        6  

Strayer Education, Inc.*

      4,180        337  
  

 

 

     

 

 

  
        4,614  
     

 

 

  

Containers & Packaging - 0.4%

      

AEP Industries, Inc.

      2,385        277  

Greif, Inc., Class A

      8,566        439  

KapStone Paper and Packaging Corp.

      23,884        527  

Multi-Color Corp.

      3,443        267  

Myers Industries, Inc.

      3,837        55  

Tredegar Corp.

      14,105        338  

UFP Technologies, Inc.*

      5,608        143  
  

 

 

     

 

 

  
        2,046  
     

 

 

  

Design, Manufacturing & Distribution - 0.6%

      

Benchmark Electronics, Inc.*

      12,648        386  

CTS Corp.

      7,554        169  

Fabrinet*

      9,074        366  

Plexus Corp.*

      8,518        460  

Sanmina Corp.*

      20,046        735  

Tech Data Corp.*

      9,371        793  

Transcat, Inc.*

      83        1  
  

 

 

     

 

 

  
        2,910  
     

 

 

  

Distributors - Consumer Staples - 0.3%

      

Andersons (The), Inc.

      4,634        207  

Calavo Growers, Inc.

      4,085        251  

Core-Mark Holding Co., Inc.

      12,359        532  

United Natural Foods, Inc.*

      10,719        512  
  

 

 

     

 

 

  
        1,502  
     

 

 

  

Distributors - Discretionary - 0.7%

      

Bassett Furniture Industries, Inc.

      7,035        214  

ePlus, Inc.*

      4,306        496  

Essendant, Inc.

      12,369        259  

FTD Cos., Inc.*

      8,337        199  

G-III Apparel Group Ltd.*

      9,668        286  

Insight Enterprises, Inc.*

      12,202        493  

PC Connection, Inc.

      9,162        257  

PCM, Inc.*

      1,077        24  

ScanSource, Inc.*

      8,377        338  

SYNNEX Corp.

      7,327        887  

Systemax, Inc.

      7,461        65  

Veritiv Corp.*

      3,058        164  

Wayside Technology Group, Inc.

      6,340        119  
  

 

 

     

 

 

  
        3,801  
     

 

 

  

Electrical Equipment - 2.0%

      

AAON, Inc.

      24,884        822  

Argan, Inc.

      4,429        313  

Babcock & Wilcox Enterprises, Inc.*

      14,988        249  

Badger Meter, Inc.

      10,626        393  

Bel Fuse, Inc., Class B

      11,325        350  

Belden, Inc.

      10,588        792  

Chase Corp.

      465        39  

Cognex Corp.

      21,745        1,383  

CompX International, Inc.(1)

      1        —    

CyberOptics Corp.*

      2,546        66  

ESCO Technologies, Inc.

      7,301        414  

Espey Manufacturing & Electronics Corp.

      7,582        194  

FARO Technologies, Inc.*

      5,034        181  

Generac Holdings, Inc.*

      19,279        785  

General Cable Corp.

      9,585        183  

Houston Wire & Cable Co.

      2,007        13  

Itron, Inc.*

      11,453        720  

Kimball Electronics, Inc.*

      2,802        51  

Landauer, Inc.

      5,302        255  

Littelfuse, Inc.

      5,805        881  

LSI Industries, Inc.

      447        4  

Mesa Laboratories, Inc.

      1,917        235  

MOCON, Inc.

      6,404        125  

NL Industries, Inc.*

      1,344        11  

Novanta, Inc.*

      14,069        295  

OSISystems,Inc.*

      7,260        553  

Powell Industries, Inc.

      6,184        241  

Preformed Line Products Co.

      2,203        128  

SPX Corp.*

      14,582        346  

Stoneridge, Inc.*

      1,087        19  

Watts Water Technologies, Inc., Class A

      7,895        515  
  

 

 

     

 

 

  
        10,556  
     

 

 

  

Engineering & Construction Services - 1.3%

      

Comfort Systems USA, Inc.

      7,676        256  

Dycom Industries, Inc.*

      9,471        760  

 

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Engineering & Construction Services - 1.3% continued

      

EMCOR Group, Inc.

      17,463      $ 1,236  

EnerNOC, Inc.*

      6,933        42  

Exponent, Inc.

      15,547        937  

Granite Construction, Inc.

      10,984        604  

Great Lakes Dredge & Dock Corp.*

      4,140        17  

IES Holdings, Inc.*

      1,454        28  

Installed Building Products, Inc.*

      7,035        291  

Kratos Defense & Security Solutions, Inc.*

      382        3  

MasTec, Inc.*

      18,528        709  

Mistras Group, Inc.*

      5,812        149  

MYR Group, Inc.*

      7,505        283  

NV5 Global, Inc.*

      4,283        143  

Orion Group Holdings, Inc.* (1)

      17        —    

Primoris Services Corp.

      7,954        181  

Team, Inc.*

      9,594        377  

TopBuild Corp.*

      10,401        370  

TRC Cos., Inc.*

      2,011        21  

Tutor Perini Corp.*

      10,401        291  

VSE Corp.

      6,636        258  

Willbros Group, Inc.*

      4,999        16  
  

 

 

     

 

 

  
        6,972  
     

 

 

  

Forest & Paper Products - 0.4%

      

Domtar Corp.

      13,078        510  

Mercer International, Inc.

      10,299        109  

Neenah Paper, Inc.

      6,992        596  

P.H. Glatfelter Co.

      10,076        241  

Resolute Forest Products, Inc.*

      23,538        126  

Schweitzer-Mauduit International, Inc.

      10,257        467  
  

 

 

     

 

 

  
        2,049  
     

 

 

  

Gaming, Lodging & Restaurants - 2.9%

      

Belmond Ltd., Class A*

      26,342        352  

Biglari Holdings, Inc.*

      577        273  

BJ’s Restaurants, Inc.*

      5,961        234  

Bloomin’ Brands, Inc.

      31,508        568  

Bob Evans Farms, Inc.

      4,786        255  

Bojangles’,Inc.*

      10,605        198  

Boyd Gaming Corp.*

      21,523        434  

Brinker International, Inc.

      1,599        79  

Buffalo Wild Wings, Inc.*

      5,149        795  

Carrols Restaurant Group, Inc.*

      11,257        172  

Cheesecake Factory (The), Inc.

      13,231        792  

Choice Hotels International, Inc.

      3,035        170  

Churchill Downs, Inc.

      3,522        530  

Chuy’s Holdings, Inc.*

      6,118        198  

Cracker Barrel Old Country Store, Inc.

      5,159        861  

Dave & Buster’s Entertainment, Inc.*

      6,629        373  

Denny’s Corp.*

      24,760        318  

DineEquity, Inc.

      4,501        347  

El Pollo Loco Holdings, Inc.*

      715        9  

Famous Dave’s of America, Inc.*

      1,961        10  

Fiesta Restaurant Group, Inc.*

      6,818        203  

Flanigan’s Enterprises, Inc.

      3,254        79  

Golden Entertainment, Inc.

      1,631        20  

ILG, Inc.

      7,406        134  

Isle of Capri Casinos, Inc.*

      10,290        254  

Jack in the Box, Inc.

      15,162        1,693  

Kona Grill, Inc.*

      6,342        80  

La Quinta Holdings, Inc.*

      25,390        361  

Luby’s, Inc.*

      1,382        6  

Marriott Vacations Worldwide Corp.

      6,364        540  

Monarch Casino & Resort, Inc.*

      921        24  

Nathan’s Famous, Inc.*

      1,732        112  

Papa John’s International, Inc.

      14,218        1,217  

Penn National Gaming, Inc.*

      11,522        159  

Pinnacle Entertainment, Inc.*

      13,364        194  

Popeyes Louisiana Kitchen, Inc.*

      6,323        382  

Red Lion Hotels Corp.*

      1,215        10  

Red Robin Gourmet Burgers, Inc.*

      6,929        391  

Ruby Tuesday, Inc.*

      1,682        5  

Ruth’s Hospitality Group, Inc.

      10,238        187  

Scientific Games Corp., Class A*

      9,378        131  

Shake Shack, Inc., Class A*

      2,346        84  

Sonic Corp.

      12,893        342  

Texas Roadhouse, Inc.

      18,930        913  

Wendy’s (The) Co.

      38,614        522  

Zoe’s Kitchen, Inc.*

      5,404        130  
  

 

 

     

 

 

  
        15,141  
     

 

 

  

Hardware - 2.4%

      

3D Systems Corp.*

      17,538        233  

ADTRAN, Inc.

      10,309        230  

AVX Corp.

      11,624        182  

Brocade Communications Systems, Inc.

      10,376        130  

CalAmp Corp.*

      9,278        135  

Ciena Corp.*

      31,512        769  

Clearfield, Inc.*

      4,995        103  

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Hardware - 2.4% continued

      

Communications Systems, Inc.

      337      $ 2  

Comtech Telecommunications Corp.

      3,941        47  

Cray, Inc.*

      7,454        154  

Daktronics, Inc.

      11,126        119  

Datalink Corp.*

      7,549        85  

Diebold Nixdorf, Inc.

      16,519        415  

Digimarc Corp.*

      4,125        124  

Eastman Kodak Co.*

      14,072        218  

Electronics For Imaging, Inc.*

      10,544        463  

Extreme Networks, Inc.*

      6,037        30  

Finisar Corp.*

      26,589        805  

Gigamon, Inc.*

      7,035        320  

GoPro, Inc., Class A*

      22,865        199  

Harmonic, Inc.*

      7,812        39  

IMAX Corp.*

      16,213        509  

Immersion Corp.*

      8,777        93  

Infinera Corp.*

      33,261        282  

InterDigital, Inc.

      9,261        846  

Ixia*

      16,034        258  

Knowles Corp.*

      22,230        372  

Kopin Corp.*

      7,355        21  

KVH Industries, Inc.*

      6,722        79  

Loral Space & Communications, Inc.*

      2,221        91  

Lumentum Holdings, Inc.*

      11,930        461  

Mercury Systems, Inc.*

      9,483        287  

MRV Communications, Inc.*

      4,385        36  

NETGEAR, Inc.*

      8,225        447  

NetScout Systems, Inc.*

      23,529        741  

Nimble Storage, Inc.*

      683        5  

Numerex Corp., Class A*

      2,000        15  

PAR Technology Corp.*

      3,828        21  

PC-Tel, Inc.

      1,366        7  

Plantronics, Inc.

      7,744        424  

RELM Wireless Corp.

      1,835        9  

Sonus Networks, Inc.*

      3,789        24  

Stratasys Ltd.*

      13,255        219  

Super Micro Computer, Inc.*

      9,844        276  

TransAct Technologies, Inc.

      376        3  

TTM Technologies, Inc.*

      2,251        31  

Ubiquiti Networks, Inc.*

      5,475        317  

Universal Electronics, Inc.*

      4,254        275  

UTStarcom Holdings Corp.* (1)

      1        —    

VeriFone Systems, Inc.*

      407        7  

ViaSat, Inc.*

      10,922        723  

Viavi Solutions, Inc.*

      59,754        489  

Vishay Precision Group, Inc.*

      7,725        146  

Vocera Communications, Inc.*

      16,622        307  

VOXX International Corp.*

      17,052        80  
  

 

 

     

 

 

  
        12,703  
     

 

 

  

Health Care Facilities & Services - 2.8%

      

AAC Holdings, Inc.*

      11,524        83  

Addus HomeCare Corp.*

      6,632        232  

Adeptus Health, Inc., Class A*

      3,977        30  

Air Methods Corp.*

      8,724        278  

Alliance HealthCare Services, Inc.*

      6,930        67  

Almost Family, Inc.*

      5,128        226  

Amedisys, Inc.*

      10,639        454  

BioScrip, Inc.*

      5,188        5  

Capital Senior Living Corp.*

      8,054        129  

Charles River Laboratories International, Inc.*

      9,890        754  

Chemed Corp.

      7,298        1,171  

Civitas Solutions, Inc.*

      10,299        205  

Digirad Corp.

      2,007        10  

Diplomat Pharmacy, Inc.*

      6,933        87  

Ensign Group (The), Inc.

      14,372        319  

Envision Healthcare Corp.*

      11,948        756  

Genesis Healthcare, Inc.*

      13,116        56  

Hanger, Inc.*

      1,281        15  

HealthEquity, Inc.*

      9,329        378  

HealthSouth Corp.

      23,602        973  

Healthways, Inc.*

      15,540        354  

INC Research Holdings, Inc., Class A*

      10,475        551  

Independence Holding Co.

      925        18  

Kindred Healthcare, Inc.

      12,459        98  

LHC Group, Inc.*

      3,355        153  

LifePoint Health, Inc.*

      5,976        339  

Magellan Health, Inc.*

      7,308        550  

Medcath Corp.* (2)

      7,953        —    

Molina Healthcare, Inc.*

      10,135        550  

National HealthCare Corp.

      3,538        268  

NeoGenomics, Inc.*

      25,288        217  

Owens & Minor, Inc.

      16,192        571  

PAREXEL International Corp.*

      14,154        930  

PharMerica Corp.*

      12,275        309  

PRA Health Sciences, Inc.*

      5,506        304  

 

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Health Care Facilities & Services - 2.8% continued

      

Premier, Inc., Class A*

      4,600      $ 140  

Providence Service (The) Corp.*

      5,621        214  

Select Medical Holdings Corp.*

      27,017        358  

Surgical Care Affiliates, Inc.*

      5,608        260  

Team Health Holdings, Inc.*

      18,446        801  

Teladoc, Inc.*

      13,766        227  

Tenet Healthcare Corp.*

      18,135        269  

Triple-S Management Corp., Class B*

      8,602        178  

U.S. Physical Therapy, Inc.

      6,794        477  

Universal American Corp.*

      3,568        36  
  

 

 

     

 

 

  
        14,400  
     

 

 

  

Home & Office Products - 1.8%

      

ACCO Brands Corp.*

      30,684        400  

American Woodmark Corp.*

      3,952        297  

AV Homes, Inc.*

      4,674        74  

Beazer Homes USA, Inc.*

      3,433        46  

CalAtlantic Group, Inc.

      15,641        532  

Cavco Industries, Inc.*

      2,893        289  

Century Communities, Inc.*

      10,605        223  

CSS Industries, Inc.

      8,651        234  

Flexsteel Industries, Inc.

      5,644        348  

Griffon Corp.

      7,499        196  

Herman Miller, Inc.

      16,543        566  

HNI Corp.

      12,314        689  

Hooker Furniture Corp.

      5,656        215  

Hovnanian Enterprises, Inc., Class A*

      203        1  

Interface, Inc.

      18,368        341  

iRobot Corp.*

      8,016        468  

KB Home

      23,186        367  

Kimball International, Inc., Class B

      3,871        68  

Knoll, Inc.

      13,576        379  

La-Z-Boy, Inc.

      13,768        427  

LGI Homes, Inc.*

      3,875        111  

Libbey, Inc.

      11,320        220  

Lifetime Brands, Inc.

      6,079        108  

M/I Homes, Inc.*

      5,786        146  

Masonite International Corp.*

      8,362        550  

MDC Holdings, Inc.

      13,203        339  

Meritage Homes Corp.*

      10,662        371  

NACCO Industries, Inc., Class A

      1,522        138  

Nobility Homes, Inc.*

      876        14  

PGT Innovations, Inc.*

      612        7  

Quanex Building Products Corp.

      10,572        215  

St. Joe (The) Co.*

      13,900        264  

Stanley Furniture Co., Inc.*

      1,290        1  

Steelcase, Inc., Class A

      19,056        341  

Taylor Morrison Home Corp., Class A*

      7,137        137  

Virco Manufacturing Corp.*

      1,776        8  

WCI Communities, Inc.*

      2,650        62  

William Lyon Homes, Class A*

      9,483        180  
  

 

 

     

 

 

  
        9,372  
     

 

 

  

Industrial Services - 0.6%

      

Applied Industrial Technologies, Inc.

      11,259        669  

CAI International, Inc.*

      2,408        21  

DXP Enterprises, Inc.*

      2,070        72  

H&E Equipment Services, Inc.

      3,655        85  

Kaman Corp.

      7,579        371  

McGrath RentCorp

      8,709        341  

Neff Corp., Class A*

      11,318        159  

Pool Corp.

      11,757        1,227  

Textainer Group Holdings Ltd.(1)

      17        —    

Titan Machinery, Inc.*

      800        12  

Triton International Ltd.

      3,209        51  

Wesco Aircraft Holdings, Inc.*

      17,232        258  

WESCO International, Inc.*

      1,632        108  
  

 

 

     

 

 

  
        3,374  
     

 

 

  

Institutional Financial Services - 0.6%

      

BGC Partners, Inc., Class A

      31,970        327  

Cowen Group, Inc., Class A*

      2,447        38  

Evercore Partners, Inc., Class A

      8,450        581  

FBR & Co.

      8,699        113  

Greenhill & Co., Inc.

      3,473        96  

INTL. FCStone, Inc.*

      4,432        175  

Investment Technology Group, Inc.

      10,476        207  

Moelis & Co., Class A

      2,652        90  

Piper Jaffray Cos.*

      5,772        418  

PJT Partners, Inc., Class A

      4,995        154  

Stifel Financial Corp.*

      16,569        828  
  

 

 

     

 

 

  
        3,027  
     

 

 

  

Insurance - 2.8%

      

Ambac Financial Group, Inc.*

      10,117        228  

American Equity Investment Life Holding Co.

      20,004        451  

AMERISAFE, Inc.

      3,827        239  

Argo Group International Holdings Ltd.

      9,399        619  

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Insurance - 2.8% continued

      

Aspen Insurance Holdings Ltd.

      2,256      $ 124  

Atlantic American Corp.

      7,201        30  

Baldwin & Lyons, Inc., Class B

      3,523        89  

Citizens, Inc.*

      6,503        64  

CNO Financial Group, Inc.

      72,315        1,385  

Crawford & Co., Class B

      16,857        212  

Donegal Group, Inc., Class A

      1,673        29  

eHealth, Inc.*

      6,332        67  

EMC Insurance Group, Inc.

      8,974        269  

Employers Holdings, Inc.

      6,974        276  

Enstar Group Ltd.*

      2,254        446  

FBL Financial Group, Inc., Class A

      4,918        384  

First Acceptance Corp.*

      2,414        2  

GAINSCO, Inc.

      714        10  

Genworth Financial, Inc., Class A*

      121,953        465  

Global Indemnity Ltd.*

      501        19  

Greenlight Capital Re Ltd., Class A*

      10,158        232  

Hallmark Financial Services, Inc.*

      11,514        134  

Hanover Insurance Group (The), Inc.

      10,416        948  

Horace Mann Educators Corp.

      8,385        359  

Infinity Property & Casualty Corp.

      2,746        241  

James River Group Holdings Ltd.

      3,364        140  

Kansas City Life Insurance Co.

      2,015        96  

Kemper Corp.

      10,349        458  

Maiden Holdings Ltd.

      21,241        371  

MBIA, Inc.*

      36,708        393  

Mercury General Corp.

      3,363        202  

National General Holdings Corp.

      12,134        303  

National Western Life Group, Inc., Class A

      1,137        353  

Navigators Group (The), Inc.

      3,145        370  

OneBeacon Insurance Group Ltd., Class A

      14,640        235  

Primerica, Inc.

      11,884        822  

Radian Group, Inc.

      44,491        800  

RLI Corp.

      12,432        785  

Safety Insurance Group, Inc.

      4,570        337  

Selective Insurance Group, Inc.

      13,970        601  

State Auto Financial Corp.

      5,404        145  

Third Point Reinsurance Ltd.*

      23,350        270  

Unico American Corp.*

      114        1  

United Fire Group, Inc.

      5,226        257  

Universal Insurance Holdings, Inc.

      9,107        259  
  

 

 

     

 

 

  
        14,520  
     

 

 

  

Iron & Steel - 1.1%

      

AK Steel Holding Corp.*

      47,363        484  

Allegheny Technologies, Inc.

      30,691        489  

Carpenter Technology Corp.

      13,153        476  

Cliffs Natural Resources, Inc.*

      50,575        425  

Commercial Metals Co.

      32,480        707  

Haynes International, Inc.

      6,506        280  

Northwest Pipe Co.*

      16,119        278  

Olympic Steel, Inc.

      772        19  

Ryerson Holding Corp.*

      7,851        105  

Shiloh Industries, Inc.*

      13,064        90  

TimkenSteel Corp.*

      5,205        81  

United States Steel Corp.

      33,480        1,105  

Universal Stainless & Alloy Products, Inc.*

      1,435        19  

Worthington Industries, Inc.

      20,248        960  
  

 

 

     

 

 

  
        5,518  
     

 

 

  

Leisure Products - 0.7%

      

Arctic Cat, Inc.*

      3,949        59  

Callaway Golf Co.

      23,385        256  

Drew Industries, Inc.

      9,330        1,005  

Johnson Outdoors, Inc., Class A

      8,753        348  

Malibu Boats, Inc., Class A*

      2,039        39  

Marine Products Corp.

      2,525        35  

Nautilus, Inc.*

      7,375        137  

Thor Industries, Inc.

      10,914        1,092  

Vista Outdoor, Inc.*

      10,197        376  

Winnebago Industries, Inc.

      11,914        377  
  

 

 

     

 

 

  
        3,724  
     

 

 

  

Machinery - 2.5%

      

Actuant Corp., Class A

      15,776        409  

Alamo Group, Inc.

      3,095        236  

Altra Industrial Motion Corp.

      7,113        262  

Astec Industries, Inc.

      5,682        383  

Briggs & Stratton Corp.

      12,640        281  

CIRCOR International, Inc.

      4,996        324  

ClearSign Combustion Corp.*

      4,275        15  

Columbus McKinnon Corp.

      13,591        368  

 

EQUITY FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

    NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Machinery - 2.5% continued

      

Curtiss-Wright Corp.

      12,340      $ 1,214  

CVD Equipment Corp.*

      1,810        16  

Douglas Dynamics, Inc.

      4,995        168  

Federal Signal Corp.

      14,377        224  

Franklin Electric Co., Inc.

      13,274        516  

Gorman-Rupp (The) Co.

      11,765        364  

Graham Corp.

      2,630        58  

Hardinge, Inc.

      8,468        94  

Hillenbrand, Inc.

      17,552        673  

Hollysys Automation Technologies Ltd.

      15,149        278  

Hurco Cos., Inc.

      1,222        40  

Hyster-Yale Materials Handling, Inc.

      2,622        167  

John Bean Technologies Corp.

      8,097        696  

Joy Global, Inc.

      25,723        720  

Kadant, Inc.

      3,363        206  

Kennametal, Inc.

      22,025        689  

Key Technology, Inc.*

      4,753        55  

Lindsay Corp.

      2,695        201  

Manitowoc (The) Co., Inc.*

      41,297        247  

Manitowoc Foodservice, Inc.*

      4,567        88  

MSA Safety, Inc.

      7,056        489  

MTS Systems Corp.

      4,689        266  

Mueller Water Products, Inc., Class A

      44,785        596  

Raven Industries, Inc.

      12,030        303  

Rexnord Corp.*

      28,321        555  

SPX FLOW, Inc.*

      11,420        366  

Standex International Corp.

      6,871        604  

Sun Hydraulics Corp.

      8,231        329  

Taylor Devices, Inc.*

      1,745        27  

Tennant Co.

      5,377        383  

Titan International, Inc.

      1,105        12  

Twin Disc, Inc.*

      659        10  
  

 

 

     

 

 

  
        12,932  
     

 

 

  

Manufactured Goods - 1.2%

      

Aegion Corp.*

      15,408        365  

AZZ, Inc.

      5,771        369  

Barnes Group, Inc.

      12,364        586  

Chart Industries, Inc.*

      11,516        415  

Core Molding Technologies, Inc.*

      4,385        75  

Eastern (The) Co.

      3,844        80  

EnPro Industries, Inc.

      4,353        293  

Gibraltar Industries, Inc.*

      8,915        371  

Global Brass & Copper Holdings, Inc.

      4,283        147  

Handy & Harman Ltd.*

      2,349        60  

Insteel Industries, Inc.

      6,954        248  

LB Foster Co., Class A

      1,534        21  

Mueller Industries, Inc.

      15,816        632  

NCI Building Systems, Inc.*

      5,610        88  

Omega Flex, Inc.

      2,843        159  

Park-Ohio Holdings Corp.

      3,977        169  

Proto Labs, Inc.*

      6,408        329  

RBC Bearings, Inc.*

      6,500        603  

Rogers Corp.*

      3,682        283  

Simpson Manufacturing Co., Inc.

      11,741        514  

TriMas Corp.*

      13,751        323  
  

 

 

     

 

 

  
        6,130  
     

 

 

  

Media - 2.3%

      

Autobytel, Inc.*

      9,357        126  

Bankrate, Inc.*

      9,176        101  

Blucora, Inc.*

      10,430        154  

Daily Journal Corp.*

      429        104  

Entercom Communications Corp., Class A

      6,451        99  

Eros International PLC*

      4,691        61  

EW Scripps (The) Co., Class A*

      7,954        154  

Gannett Co., Inc.

      30,589        297  

Global Sources Ltd.*

      14,145        125  

GoDaddy, Inc., Class A*

      2,600        91  

Gray Television, Inc.*

      14,072        153  

Groupon, Inc.*

      91,057        302  

GrubHub, Inc.*

      19,271        725  

HealthStream, Inc.*

      5,192        130  

Houghton Mifflin Harcourt Co.*

      33,343        362  

Liberty TripAdvisor Holdings, Inc., Class A*

      20,190        304  

Marchex, Inc., Class B*

      1,295        3  

MDC Partners, Inc., Class A

      10,503        69  

Media General, Inc.*

      11,792        222  

Meredith Corp.

      9,927        587  

MSG Networks, Inc., Class A*

      18,151        390  

National CineMedia, Inc.

      18,761        276  

New Media Investment Group, Inc.

      14,340        229  

New York Times (The) Co., Class A

      29,577        393  

Nexstar Broadcasting Group, Inc., Class A

      7,676        486  

Quotient Technology, Inc.*

      9,074        97  

 

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Media - 2.3% continued

      

Reis, Inc.

      6,213      $ 138  

RetailMeNot, Inc.*

      919        9  

Rubicon Project (The), Inc.*

      11,522        85  

Saga Communications, Inc., Class A

      3,392        171  

Scholastic Corp.

      3,900        185  

Shutterfly, Inc.*

      6,941        348  

Shutterstock, Inc.*

      4,472        212  

Sinclair Broadcast Group, Inc., Class A

      18,072        603  

Stamps.com, Inc.*

      8,654        992  

Time, Inc.

      29,571        528  

TiVo Corp.*

      22,417        468  

Travelzoo, Inc.*

      10,382        98  

tronc, Inc.*

      4,800        67  

Tucows, Inc., Class A*

      3,364        119  

Web.com Group, Inc.*

      13,670        289  

WebMD Health Corp.*

      8,949        444  

Wix.com Ltd.*

      4,283        191  

World Wrestling Entertainment, Inc., Class A

      7,857        145  

XO Group, Inc.*

      13,502        263  

Yelp, Inc.*

      16,593        633  
  

 

 

     

 

 

  
        12,028  
     

 

 

  

Medical Equipment & Devices - 3.9%

      

Abaxis, Inc.

      6,339        334  

ABIOMED, Inc.*

      8,290        934  

Accelerate Diagnostics, Inc.*

      2,552        53  

Accuray, Inc.*

      9,567        44  

Analogic Corp.

      3,158        262  

AngioDynamics, Inc.*

      10,269        173  

AtriCure, Inc.*

      14,194        278  

Atrion Corp.

      776        394  

BioTelemetry, Inc.*

      8,664        194  

Bovie Medical Corp.*

      9,879        35  

Bruker Corp.

      29,595        627  

Cardiovascular Systems, Inc.*

      13,189        319  

Catalent, Inc.*

      21,556        581  

Cerus Corp.*

      9,381        41  

ConforMIS, Inc.*

      4,079        33  

CONMED Corp.

      5,532        244  

CryoLife, Inc.*

      10,335        198  

Cutera, Inc.*

      12,281        213  

Cynosure, Inc., Class A*

      8,019        366  

Daxor Corp.

      559        4  

Derma Sciences, Inc.*

      426        2  

Endologix, Inc.*

      17,274        99  

Entellus Medical, Inc.*

      6,629        126  

Exact Sciences Corp.*

      24,767        331  

Exactech, Inc.*

      7,563        206  

Fluidigm Corp.*

      12,241        89  

FONAR Corp.*

      7,035        135  

Foundation Medicine, Inc.*

      6,016        106  

GenMark Diagnostics, Inc.*

      15,805        193  

Genomic Health, Inc.*

      2,716        80  

Glaukos Corp.*

      7,749        266  

Globus Medical, Inc., Class A*

      17,710        439  

Haemonetics Corp.*

      13,897        559  

Halyard Health, Inc.*

      11,930        441  

Harvard Bioscience, Inc.*

      2,283        7  

Hill-Rom Holdings, Inc.

      15,012        843  

ICU Medical, Inc.*

      3,233        476  

Inogen, Inc.*

      4,283        288  

Insulet Corp.*

      11,186        421  

Integer Holdings Corp.*

      5,339        157  

Integra LifeSciences Holdings Corp.*

      7,357        631  

Invacare Corp.

      7,954        104  

iRadimed Corp.*

      5,868        65  

IRIDEX Corp.*

      100        1  

K2M Group Holdings, Inc.*

      14,378        288  

LeMaitre Vascular, Inc.

      13,908        352  

LivaNova PLC*

      10,744        483  

Luminex Corp.*

      12,522        253  

Masimo Corp.*

      12,942        872  

Meridian Bioscience, Inc.

      11,464        203  

Merit Medical Systems, Inc.*

      14,991        397  

MiMedx Group, Inc.*

      28,348        251  

Misonix, Inc.*

      6,864        72  

Myriad Genetics, Inc.*

      15,401        257  

NanoString Technologies, Inc.*

      14,174        316  

Natus Medical, Inc.*

      10,936        381  

Neogen Corp.*

      9,588        633  

NuVasive, Inc.*

      12,427        837  

Nuvectra Corp.*

      1,747        9  

NxStage Medical, Inc.*

      11,338        297  

OraSure Technologies, Inc.*

      14,030        123  

Orthofix International N.V.*

      5,024        182  

Pacific Biosciences of California, Inc.*

      22,636        86  

 

EQUITY FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Medical Equipment & Devices - 3.9% continued

      

Penumbra, Inc.*

      3,099      $ 198  

Quidel Corp.*

      6,955        149  

Repligen Corp.*

      10,274        317  

Rockwell Medical, Inc.*

      1,212        8  

RTI Surgical, Inc.*

      4,348        14  

SeaSpine Holdings Corp.*

      6,634        52  

Span-America Medical Systems, Inc.

      2,634        48  

Sparton Corp.*

      863        21  

Spectranetics (The) Corp.*

      12,686        311  

Surmodics, Inc.*

      6,125        156  

T2 Biosystems, Inc.*

      289        2  

Tandem Diabetes Care, Inc.*

      7,749        17  

Utah Medical Products, Inc.

      2,567        187  

Vascular Solutions, Inc.*

      5,535        311  

Wright Medical Group N.V.*

      26,194        602  

Zeltiq Aesthetics, Inc.*

      8,056        351  
  

 

 

     

 

 

  
        20,428  
     

 

 

  

Metals & Mining - 0.7%

      

A-Mark Precious Metals, Inc.

      7,035        137  

Century Aluminum Co.*

      18,761        161  

Coeur Mining, Inc.*

      36,237        330  

Encore Wire Corp.

      6,283        272  

Ferroglobe PLC

      9,916        107  

Harsco Corp.

      13,953        190  

Hecla Mining Co.

      93,354        489  

Kaiser Aluminum Corp.

      3,895        303  

McEwen Mining, Inc.

      83,816        244  

Stillwater Mining Co.*

      33,854        545  

US Silica Holdings, Inc.

      12,543        711  
  

 

 

     

 

 

  
        3,489  
     

 

 

  

Oil, Gas & Coal - 3.2%

      

Adams Resources & Energy, Inc.

      5,447        216  

Alon USA Energy, Inc.

      6,494        74  

Archrock, Inc.

      8,010        106  

Atwood Oceanics, Inc.

      10,044        132  

Bristow Group, Inc.

      6,828        140  

California Resources Corp.*

      263        6  

Callon Petroleum Co.*

      7,092        109  

CARBO Ceramics, Inc.*

      154        2  

Carrizo Oil & Gas, Inc.*

      8,883        332  

Clayton Williams Energy, Inc.*

      1,848        220  

Clean Energy Fuels Corp.*

      20,472        58  

Cloud Peak Energy, Inc.*

      8,588        48  

Cobalt International Energy, Inc.*

      57,060        70  

CONSOL Energy, Inc.

      46,295        844  

Contango Oil & Gas Co.*

      100        1  

Dawson Geophysical Co.*

      481        4  

Delek US Holdings, Inc.

      17,898        431  

Denbury Resources, Inc.*

      47,007        173  

Dril-Quip, Inc.*

      5,200        312  

EnLink Midstream LLC

      3,807        72  

Era Group, Inc.*

      416        7  

Evolution Petroleum Corp.

      8,087        81  

Exterran Corp.*

      4,004        96  

Flotek Industries, Inc.*

      15,335        144  

Forum Energy Technologies, Inc.*

      8,532        188  

Geospace Technologies Corp.*

      397        8  

Gran Tierra Energy, Inc.*

      1,733        5  

Gulf Island Fabrication, Inc.

      557        7  

Gulfmark Offshore, Inc., Class A*

      414        1  

Hallador Energy Co.

      24,675        224  

Helix Energy Solutions Group, Inc.*

      27,128        239  

Independence Contract Drilling, Inc.*

      1,450        10  

Isramco, Inc.*

      1,770        220  

Laredo Petroleum, Inc.*

      20,496        290  

Matador Resources Co.*

      8,166        210  

Matrix Service Co.*

      4,706        107  

McDermott International, Inc.*

      66,529        492  

MRC Global, Inc.*

      28,754        582  

Murphy USA, Inc.*

      7,341        451  

Natural Gas Services Group, Inc.*

      5,518        177  

Newpark Resources, Inc.*

      15,527        116  

NOW, Inc.*

      29,877        612  

Oasis Petroleum, Inc.*

      33,991        515  

Oceaneering International, Inc.

      17,900        505  

Oil States International, Inc.*

      9,074        354  

Panhandle Oil and Gas, Inc., Class A

      16,040        378  

Par Pacific Holdings, Inc.*

      2,346        34  

Patterson-UTI Energy, Inc.

      15,090        406  

PBF Energy, Inc., Class A

      12,949        361  

PDC Energy, Inc.*

      7,691        558  

Peabody Energy Corp.* (1)

      1        —    

PHI, Inc. (Non Voting)*

      4,416        80  

PrimeEnergy Corp.*

      1,272        69  

Rice Energy, Inc.*

      8,972        191  

Ring Energy, Inc.*

      5,608        73  

 

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Oil, Gas & Coal - 3.2% continued

      

Rowan Cos. PLC, Class A*

      24,777      $ 468  

RSP Permian, Inc.*

      12,351        551  

SEACOR Holdings, Inc.*

      5,725        408  

Seadrill Ltd.*

      74,232        253  

SemGroup Corp., Class A

      5,881        245  

SM Energy Co.

      12,759        440  

Synergy Resources Corp.*

      9,085        81  

Tesco Corp.*

      10,746        89  

TETRA Technologies, Inc.*

      700        3  

Thermon Group Holdings, Inc.*

      9,947        190  

Tidewater, Inc.*

      285        1  

Unit Corp.*

      12,949        348  

Western Refining, Inc.

      20,316        769  

Westmoreland Coal Co.*

      609        11  

World Fuel Services Corp.

      16,957        778  

WPX Energy, Inc.*

      46,598        679  
  

 

 

     

 

 

  
        16,455  
     

 

 

  

Passenger Transportation - 0.4%

      

Allegiant Travel Co.

      3,926        653  

Hawaiian Holdings, Inc.*

      11,007        628  

SkyWest, Inc.

      14,784        539  
  

 

 

     

 

 

  
        1,820  
     

 

 

  

Real Estate - 0.3%

      

Alexander & Baldwin, Inc.

      11,938        536  

Consolidated-Tomoka Land Co.

      4,808        257  

Forestar Group, Inc.*

      7,492        99  

FRP Holdings, Inc.*

      1,601        60  

Griffin Industrial Realty, Inc.

      779        25  

Gyrodyne LLC

      794        14  

Marcus & Millichap, Inc.*

      1,937        52  

RE/MAX Holdings, Inc., Class A

      2,244        126  

RMR Group (The), Inc., Class A

      4,132        163  

Stratus Properties, Inc.*

      114        4  

Trinity Place Holdings, Inc.*

      1,098        10  
  

 

 

     

 

 

  
        1,346  
     

 

 

  

Real Estate Investment Trusts - 7.9%

      

Acadia Realty Trust

      21,483        702  

AG Mortgage Investment Trust, Inc.

      6,628        113  

Agree Realty Corp.

      5,370        247  

Alexander’s, Inc.

      1,255        536  

Altisource Residential Corp.

      5,710        63  

American Assets Trust, Inc.

      6,700        289  

Anworth Mortgage Asset Corp.

      19,476        101  

Apollo Commercial Real Estate Finance, Inc.

      21,503        357  

Arbor Realty Trust, Inc.

      17,644        132  

Ares Commercial Real Estate Corp.

      5,341        73  

Armada Hoffler Properties, Inc.

      6,079        89  

ARMOUR Residential REIT, Inc.

      5,940        129  

Ashford Hospitality Prime, Inc.

      4,327        59  

Ashford Hospitality Trust, Inc.

      18,433        143  

Blackstone Mortgage Trust, Inc., Class A

      8,998        271  

Bluerock Residential Growth REIT, Inc.

      5,608        77  

Brandywine Realty Trust

      44,505        735  

BRT Realty Trust*

      17,041        140  

Capstead Mortgage Corp.

      29,249        298  

CareTrust REIT, Inc.

      7,058        108  

CatchMark Timber Trust, Inc., Class A

      4,339        49  

Cedar Realty Trust, Inc.

      35,436        231  

Chatham Lodging Trust

      5,079        104  

Cherry Hill Mortgage Investment Corp.

      3,035        55  

Chesapeake Lodging Trust

      14,362        371  

Colony Capital, Inc., Class A

      15,374        311  

Colony Starwood Homes

      3,977        115  

Community Healthcare Trust, Inc.

      4,793        110  

CorEnergy Infrastructure Trust, Inc.

      1,427        50  

CoreSite Realty Corp.

      5,358        425  

Corporate Office Properties Trust

      17,431        544  

Cousins Properties, Inc.

      77,551        660  

CyrusOne, Inc.

      11,804        528  

CYS Investments, Inc.

      25,594        198  

DCT Industrial Trust, Inc.

      18,618        891  

DiamondRock Hospitality Co.

      48,587        560  

DuPont Fabros Technology, Inc.

      21,101        927  

Dynex Capital, Inc.

      25,857        176  

EastGroup Properties, Inc.

      7,810        577  

Education Realty Trust, Inc.

      19,883        841  

Ellington Residential Mortgage REIT

      3,582        47  

Empire State Realty Trust, Inc., Class A

      15,193        307  

Equity Commonwealth (New York Exchange)*

      17,487        529  

Equity One, Inc.

      21,453        658  

FelCor Lodging Trust, Inc.

      15,858        127  

First Industrial Realty Trust, Inc.

      26,846        753  

First Potomac Realty Trust

      11,029        121  

 

EQUITY FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Real Estate Investment Trusts - 7.9% continued

      

First Real Estate Investment Trust of New Jersey

      205      $ 4  

Four Corners Property Trust, Inc.

      14,480        297  

Franklin Street Properties Corp.

      14,582        189  

GEO Group (The), Inc.

      26,608        956  

Getty Realty Corp.

      14,896        380  

Gladstone Commercial Corp.

      8,010        161  

Gladstone Land Corp.

      9,687        109  

Global Net Lease, Inc.

      40,888        320  

Gramercy Property Trust

      69,899        642  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      9,750        185  

Healthcare Realty Trust, Inc.

      24,296        737  

Hersha Hospitality Trust

      5,988        129  

Hudson Pacific Properties, Inc.

      17,952        624  

InfraREIT, Inc.

      4,487        80  

Invesco Mortgage Capital, Inc.

      31,711        463  

Investors Real Estate Trust

      31,079        222  

iStar, Inc.*

      10,357        128  

Kite Realty Group Trust

      20,202        474  

LaSalle Hotel Properties

      27,350        833  

Lexington Realty Trust

      49,675        536  

Life Storage, Inc.

      8,150        695  

LTC Properties, Inc.

      9,100        428  

Mack-Cali Realty Corp.

      21,617        627  

Medical Properties Trust, Inc.

      56,619        696  

Mid-America Apartment Communities, Inc.

      5,354        524  

Monmouth Real Estate Investment Corp.

      21,459        327  

Monogram Residential Trust, Inc.

      40,378        437  

MTGE Investment Corp.

      10,605        167  

National Health Investors, Inc.

      9,135        678  

New Residential Investment Corp.

      55,704        876  

New Senior Investment Group, Inc.

      10,926        107  

New York Mortgage Trust, Inc.

      11,092        73  

New York REIT, Inc.

      39,359        398  

One Liberty Properties, Inc.

      10,281        258  

Orchid Island Capital, Inc.

      9,058        98  

Parkway, Inc.*

      9,693        216  

Pebblebrook Hotel Trust

      17,354        516  

Pennsylvania Real Estate Investment Trust

      15,874        301  

PennyMac Mortgage Investment Trust

      6,480        106  

Physicians Realty Trust

      31,387        595  

Potlatch Corp.

      9,324        388  

PS Business Parks, Inc.

      3,643        424  

QTS Realty Trust, Inc., Class A

      6,759        336  

RAIT Financial Trust

      18,233        61  

Ramco-Gershenson Properties Trust

      19,130        317  

Redwood Trust, Inc.

      10,571        161  

Resource Capital Corp.

      5,699        47  

Retail Opportunity Investments Corp.

      24,070        509  

Rexford Industrial Realty, Inc.

      8,912        207  

RLJ Lodging Trust

      30,292        742  

Ryman Hospitality Properties, Inc.

      10,442        658  

Sabra Health Care REIT, Inc.

      15,745        385  

Saul Centers, Inc.

      2,609        174  

Select Income REIT

      11,426        288  

Silver Bay Realty Trust Corp.

      5,370        92  

Sotherly Hotels, Inc.

      4,154        28  

STAG Industrial, Inc.

      15,724        375  

STORE Capital Corp.

      3,800        94  

Summit Hotel Properties, Inc.

      21,132        339  

Sun Communities, Inc.

      9,515        729  

Sunstone Hotel Investors, Inc.

      50,544        771  

Sutherland Asset Management Corp.

      1,025        14  

Terreno Realty Corp.

      10,330        294  

Tier REIT, Inc.

      5,812        101  

UMH Properties, Inc.

      18,264        275  

Universal Health Realty Income Trust

      3,545        233  

Urban Edge Properties

      21,515        592  

Urstadt Biddle Properties, Inc., Class A

      3,858        93  

Washington Prime Group, Inc.

      44,850        467  

Washington Real Estate Investment Trust

      16,457        538  

Western Asset Mortgage Capital Corp.

      7,184        72  

Whitestone REIT

      5,384        77  

Winthrop Realty Trust*

      9,142        72  

Xenia Hotels & Resorts, Inc.

      27,021        525  
  

 

 

     

 

 

  
        40,997  
     

 

 

  

Recreational Facilities & Services - 0.3%

      

AMC Entertainment Holdings, Inc., Class A

      6,436        217  

Bowl America, Inc., Class A

      492        9  

ClubCorp Holdings, Inc.

      4,487        64  

Drive Shack, Inc.

      8,347        31  

International Speedway Corp., Class A

      8,631        318  

Marcus (The) Corp.

      2,543        80  

 

NORTHERN FUNDS QUARTERLY REPORT    17    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

 

Recreational Facilities & Services - 0.3% continued

      

RCI Hospitality Holdings, Inc.

      13,518      $ 231  

Reading International, Inc., Class A*

      3,359        56  

SeaWorld Entertainment, Inc.

      18,355        347  

Speedway Motorsports, Inc.

      5,361        116  

Town Sports International Holdings, Inc.*

      2,721        7  
  

 

 

     

 

 

  
        1,476  
     

 

 

  

Renewable Energy - 0.6%

      

Advanced Energy Industries, Inc.*

      10,211        559  

Canadian Solar, Inc.*

      8,376        102  

EnerSys

      12,367        966  

Green Plains, Inc.

      10,520        293  

Pacific Ethanol, Inc.*

      5,812        55  

Renewable Energy Group, Inc.*

      5,049        49  

REX American Resources Corp.*

      5,831        576  

Silver Spring Networks, Inc.*

      9,789        130  

SolarEdge Technologies, Inc.*

      12,645        157  

SunPower Corp.*

      6,006        40  

Sunworks, Inc.*

      27,735        55  

Ultralife Corp.*

      846        4  
  

 

 

     

 

 

  
        2,986  
     

 

 

  

Retail - Consumer Staples - 0.8%

      

Big Lots, Inc.

      11,504        578  

Casey’s General Stores, Inc.

      8,851        1,052  

Five Below, Inc.*

      14,784        591  

Fred’s, Inc., Class A

      6,574        122  

Ingles Markets, Inc., Class A

      9,564        460  

PriceSmart, Inc.

      3,424        286  

SpartanNash Co.

      12,913        511  

SUPERVALU, Inc.*

      47,308        221  

Village Super Market, Inc., Class A

      1,475        45  

Weis Markets, Inc.

      3,971        265  
  

 

 

     

 

 

  
        4,131  
     

 

 

  

Retail - Discretionary - 2.7%

      

1-800-Flowers.com, Inc., Class A*

      3,801        41  

Abercrombie & Fitch Co., Class A

      18,761        225  

American Eagle Outfitters, Inc.

      48,740        739  

America’s Car-Mart, Inc.*

      2,586        113  

Asbury Automotive Group, Inc.*

      8,400        518  

Ascena Retail Group, Inc.*

      26,106        162  

Barnes & Noble Education, Inc.*

      4,328        50  

Barnes & Noble, Inc.

      14,784        165  

Beacon Roofing Supply, Inc.*

      13,806        636  

Big 5 Sporting Goods Corp.

      708        12  

Blue Nile, Inc.

      8,219        334  

BMC Stock Holdings, Inc.*

      4,487        88  

Buckle (The), Inc.

      8,054        184  

Build-A-Bear Workshop, Inc.*

      3,991        55  

Builders FirstSource, Inc.*

      7,549        83  

Caleres, Inc.

      13,136        431  

Cato (The) Corp., Class A

      6,822        205  

Chico’s FAS, Inc.

      35,995        518  

Children’s Place (The), Inc.

      5,746        580  

Christopher & Banks Corp.* (1)

      51        —    

Citi Trends, Inc.

      3,058        58  

Conn’s, Inc.*

      2,350        30  

Destination Maternity Corp.

      343        2  

DSW, Inc., Class A

      13,459        305  

Ethan Allen Interiors, Inc.

      5,651        208  

Express, Inc.*

      22,801        245  

Finish Line (The), Inc., Class A

      13,956        263  

FirstCash, Inc.

      15,158        712  

Francesca’s Holdings Corp.*

      7,035        127  

Freshpet, Inc.*

      12,543        127  

Genesco, Inc.*

      5,421        337  

Group 1 Automotive, Inc.

      6,310        492  

Guess?, Inc.

      16,622        201  

Haverty Furniture Cos., Inc.

      10,057        238  

hhgregg, Inc.*

      70,900        101  

Hibbett Sports, Inc.*

      5,253        196  

HSN, Inc.

      11,733        402  

J.C. Penney Co., Inc.*

      10,456        87  

Kirkland’s, Inc.*

      4,238        66  

Liquidity Services, Inc.*

      24,625        240  

Lithia Motors, Inc., Class A

      5,204        504  

Lumber Liquidators Holdings, Inc.*

      2,016        32  

MarineMax, Inc.*

      7,545        146  

Monro Muffler Brake, Inc.

      8,537        488  

New York & Co., Inc.*

      817        2  

Overstock.com, Inc.*

      4,172        73  

Penske Automotive Group, Inc.

      10,031        520  

PetMed Express, Inc.

      12,158        280  

Pier 1 Imports, Inc.

      5,668        48  

Restoration Hardware Holdings, Inc.*

      2,347        72  

Rush Enterprises, Inc., Class A*

      11,859        378  

 

EQUITY FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Retail - Discretionary - 2.7% continued

      

Select Comfort Corp.*

      13,758      $ 311  

Shoe Carnival, Inc.

      8,929        241  

Sonic Automotive, Inc., Class A

      8,107        186  

Stage Stores, Inc.

      536        2  

Stein Mart, Inc.

      3,236        18  

Tailored Brands, Inc.

      6,167        158  

Tile Shop Holdings, Inc.*

      5,302        104  

Tuesday Morning Corp.*

      447        2  

Vera Bradley, Inc.*

      14,104        165  

Vitamin Shoppe, Inc.*

      8,109        193  

West Marine, Inc.*

      804        8  

Winmark Corp.

      1,450        183  

Zumiez, Inc.*

      11,949        261  
  

 

 

     

 

 

  
        13,951  
     

 

 

  

Semiconductors - 3.5%

      

Alpha & Omega Semiconductor Ltd.*

      12,339        262  

Ambarella, Inc.*

      7,954        431  

Amkor Technology, Inc.*

      23,903        252  

Brooks Automation, Inc.

      20,680        353  

Cabot Microelectronics Corp.

      2,791        176  

Cavium, Inc.*

      15,754        984  

CEVA, Inc.*

      5,506        185  

Cirrus Logic, Inc.*

      16,145        913  

Coherent, Inc.*

      6,090        837  

Cohu, Inc.

      14,438        201  

Cypress Semiconductor Corp.

      72,849        833  

Diodes, Inc.*

      12,301        316  

DSP Group, Inc.*

      2,566        33  

Electro Scientific Industries, Inc.* (1)

      48        —    

Entegris, Inc.*

      35,785        641  

Exar Corp.*

      12,145        131  

FormFactor, Inc.*

      4,705        53  

II-VI, Inc.*

      11,601        344  

Integrated Device Technology, Inc.*

      34,651        816  

Intersil Corp., Class A

      31,926        712  

InvenSense, Inc.*

      8,311        106  

IXYS Corp.

      10,483        125  

Kulicke & Soffa Industries, Inc.*

      22,247        355  

Lattice Semiconductor Corp.*

      37,172        274  

MACOM Technology Solutions Holdings, Inc.*

      3,160        146  

MaxLinear, Inc., Class A*

      14,072        307  

Microsemi Corp.*

      27,746        1,497  

MKS Instruments, Inc.

      13,688        813  

Monolithic Power Systems, Inc.

      10,061        824  

Nanometrics, Inc.*

      7,427        186  

NVE Corp.

      3,280        234  

Park Electrochemical Corp.

      5,081        95  

Photronics, Inc.*

      11,974        135  

Power Integrations, Inc.

      7,574        514  

Rambus, Inc.*

      29,504        406  

Rudolph Technologies, Inc.*

      9,070        212  

Semtech Corp.*

      16,977        536  

Silicon Laboratories, Inc.*

      9,130        593  

Synaptics, Inc.*

      8,288        444  

Ultratech, Inc.*

      5,610        135  

Universal Display Corp.*

      12,978        731  

Veeco Instruments, Inc.*

      13,459        392  

Vishay Intertechnology, Inc.

      34,594        560  

Xcerra Corp.*

      16,372        125  
  

 

 

     

 

 

  
        18,218  
     

 

 

  

Software - 4.2%

      

2U, Inc.*

      2,552        77  

ACI Worldwide, Inc.*

      30,321        550  

Actua Corp.*

      9,628        135  

Acxiom Corp.*

      19,922        534  

Agilysys, Inc.*

      9,327        97  

Allscripts Healthcare Solutions, Inc.*

      26,104        267  

American Software, Inc., Class A

      15,553        161  

Appfolio, Inc., Class A*

      7,749        185  

Aspen Technology, Inc.*

      21,813        1,193  

Avid Technology, Inc.*

      7,155        32  

Aware, Inc.*

      683        4  

Barracuda Networks, Inc.*

      10,095        216  

Blackbaud, Inc.

      11,980        767  

BroadSoft, Inc.*

      7,442        307  

Callidus Software, Inc.*

      7,608        128  

ChannelAdvisor Corp.*

      8,158        117  

CommVault Systems, Inc.*

      11,590        596  

Computer Programs & Systems, Inc.

      3,802        90  

Concurrent Computer Corp.

      13,723        73  

Cornerstone OnDemand, Inc.*

      13,815        585  

CyberArk Software Ltd.*

      8,464        385  

Datawatch Corp.*

      800        4  

Digi International, Inc.*

      9,994        137  

Donnelley Financial Solutions, Inc.*

      943        22  

 

NORTHERN FUNDS QUARTERLY REPORT    19    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Software - 4.2% continued

      

Ebix, Inc.

      7,647      $ 436  

eGain Corp.* (1)

      97        —    

Envestnet, Inc.*

      9,839        347  

Evolent Health, Inc., Class A*

      6,839        101  

Exa Corp.*

      10,314        158  

Guidance Software, Inc.*

      5,506        39  

Hortonworks, Inc.*

      287        2  

Imperva, Inc.*

      8,158        313  

InnerWorkings, Inc.*

      1,224        12  

iPass, Inc.*

      1,702        3  

j2 Global, Inc.

      12,338        1,009  

KEYW Holding (The) Corp.*

      12,441        147  

Lionbridge Technologies, Inc.*

      2,623        15  

LivePerson, Inc.*

      11,418        86  

LogMeIn, Inc.

      5,133        496  

Manhattan Associates, Inc.*

      22,293        1,182  

Mentor Graphics Corp.

      23,496        867  

MicroStrategy, Inc., Class A*

      2,427        479  

MINDBODY, Inc., Class A*

      8,158        174  

Monotype Imaging Holdings, Inc.

      10,195        202  

NeuStar, Inc., Class A*

      14,174        473  

Omnicell, Inc.*

      9,716        329  

Park City Group, Inc.*

      1,733        22  

Paycom Software, Inc.*

      8,056        367  

Paylocity Holding Corp.*

      5,098        153  

PDF Solutions, Inc.*

      13,465        304  

pdvWireless, Inc.*

      5,506        124  

Pegasystems, Inc.

      14,436        520  

Progress Software Corp.

      9,752        311  

Proofpoint, Inc.*

      10,095        713  

PROS Holdings, Inc.*

      12,141        261  

Q2 Holdings, Inc.*

      1,172        34  

QAD, Inc., Class B

      701        18  

Quality Systems, Inc.*

      6,000        79  

Qualys, Inc.*

      8,668        274  

Rapid7, Inc.*

      9,074        111  

RealPage, Inc.*

      13,516        406  

Rosetta Stone, Inc.*

      10,095        90  

Seachange International, Inc.* (1)

      100        —    

Simulations Plus, Inc.

      10,299        99  

SPS Commerce, Inc.*

      4,778        334  

Synchronoss Technologies, Inc.*

      18,902        724  

Take-Two Interactive Software, Inc.*

      21,566        1,063  

Tangoe, Inc.*

      1,937        15  

Tyler Technologies, Inc.*

      8,048        1,149  

Varonis Systems, Inc.*

      2,550        68  

VASCO Data Security International, Inc.*

      12,050        165  

Verint Systems, Inc.*

      15,630        551  

VirnetX Holding Corp.*

      5,098        11  

Zedge, Inc., Class B*

      725        2  

Zendesk, Inc.*

      9,585        203  

Zynga, Inc., Class A*

      137,554        354  
  

 

 

     

 

 

  
        22,057  
     

 

 

  

Specialty Finance - 2.2%

      

Aircastle Ltd.

      17,737        370  

Altisource Portfolio Solutions S.A.*

      4,283        114  

Arlington Asset Investment Corp., Class A

      496        7  

Blackhawk Network Holdings, Inc.*

      11,394        429  

Cardtronics PLC, Class A*

      11,503        628  

Cass Information Systems, Inc.

      2,589        190  

Ellie Mae, Inc.*

      7,550        632  

Encore Capital Group, Inc.*

      5,082        146  

Enova International, Inc.*

      553        7  

Essent Group Ltd.*

      9,687        313  

Euronet Worldwide, Inc.*

      10,672        773  

Everi Holdings, Inc.*

      4,000        9  

Federal Agricultural Mortgage Corp., Class C

      100        6  

First American Financial Corp.

      14,938        547  

Flagstar Bancorp, Inc.*

      4,360        117  

GATX Corp.

      11,420        703  

Green Dot Corp., Class A*

      8,972        211  

HFF, Inc., Class A

      6,459        195  

HomeStreet, Inc.*

      4,609        146  

Investors Title Co.

      2,084        330  

LendingClub Corp.*

      67,823        356  

LendingTree, Inc.*

      2,061        209  

Liberty Tax, Inc.

      817        11  

Meta Financial Group, Inc.

      5,153        530  

MGIC Investment Corp.*

      83,211        848  

Nelnet, Inc., Class A

      9,413        478  

Net 1 UEPS Technologies, Inc.*

      8,646        99  

NewStar Financial, Inc.*

      1,780        16  

Ocwen Financial Corp.*

      9,760        53  

 

EQUITY FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Specialty Finance - 2.2% continued

      

PennyMac Financial Services, Inc., Class A*

      4,181      $ 70  

PHH Corp.*

      7,701        117  

PRA Group, Inc.*

      15,764        616  

Stewart Information Services Corp.

      8,878        409  

Walker & Dunlop, Inc.*

      8,056        251  

Walter Investment Management Corp.*

      131        1  

WEX, Inc.*

      10,151        1,133  

Willis Lease Finance Corp.*

      2,017        52  

World Acceptance Corp.*

      7,514        483  
  

 

 

     

 

 

  
        11,605  
     

 

 

  

Technology Services - 2.8%

      

AstroNova, Inc.

      4,490        64  

Black Box Corp.

      1,212        19  

Bottomline Technologies de, Inc.*

      10,654        267  

CACI International, Inc., Class A*

      6,155        765  

Ciber, Inc.* (1)

      133        —    

Computer Services, Inc.

      2,342        93  

comScore, Inc.*

      28,044        886  

Convergys Corp.

      25,309        622  

CoreLogic, Inc.*

      13,141        484  

CSG Systems International, Inc.

      8,656        419  

Cubic Corp.

      7,251        348  

DMC Global, Inc.

      1,213        19  

Endurance International Group Holdings, Inc.*

      2,183        20  

Engility Holdings, Inc.*

      7,588        256  

EPAM Systems, Inc.*

      12,475        802  

EVERTEC, Inc.

      17,232        306  

ExlService Holdings, Inc.*

      8,477        428  

Fair Isaac Corp.

      10,739        1,280  

Forrester Research, Inc.

      4,854        208  

Globant S.A.*

      4,283        143  

ICF International, Inc.*

      6,401        353  

Luxoft Holding, Inc.*

      4,851        273  

ManTech International Corp., Class A

      5,302        224  

Mattersight Corp.*

      1,693        6  

MAXIMUS, Inc.

      21,140        1,179  

Medidata Solutions, Inc.*

      14,214        706  

NCI, Inc., Class A

      3,364        47  

NIC, Inc.

      16,057        384  

Perficient, Inc.*

      8,996        157  

Science Applications International Corp.

      11,739        995  

StarTek, Inc.*

      835        7  

Sykes Enterprises, Inc.*

      15,567        449  

Syntel, Inc.

      13,807        273  

TeleTech Holdings, Inc.

      7,622        232  

TESSCO Technologies, Inc.

      3,726        48  

Tessera Holding Corp.*

      13,433        594  

Travelport Worldwide Ltd.

      29,469        416  

Unisys Corp.*

      541        8  

Virtusa Corp.*

      8,972        225  

WageWorks, Inc.*

      9,911        719  
  

 

 

     

 

 

  
        14,724  
     

 

 

  

Telecom - 1.1%

      

8x8, Inc.*

      15,858        227  

ATN International, Inc.

      3,248        260  

Cincinnati Bell, Inc.*

      11,559        258  

Cogent Communications Holdings, Inc.

      17,834        737  

Consolidated Communications Holdings, Inc.

      13,590        365  

DigitalGlobe, Inc.*

      17,868        512  

EarthLink Holdings Corp.

      42,826        242  

FairPoint Communications, Inc.*

      4,079        76  

General Communication, Inc., Class A*

      12,335        240  

Globalstar, Inc.*

      76,000        120  

Gogo, Inc.*

      7,851        72  

GTT Communications, Inc.*

      11,216        323  

Hawaiian Telcom Holdco, Inc.*

      6,731        167  

IDT Corp., Class B

      6,399        119  

Inteliquent, Inc.

      11,726        269  

Intelsat S.A.* (1)

      100        —    

Internap Corp.* (1)

      280        —    

Iridium Communications, Inc.*

      13,868        133  

Lumos Networks Corp.*

      5,764        90  

RigNet, Inc.*

      3,681        85  

Shenandoah Telecommunications Co.

      13,000        355  

Spok Holdings, Inc.

      10,359        215  

Straight Path Communications, Inc., Class B*

      9,669        328  

Vonage Holdings Corp.*

      32,222        221  

 

NORTHERN FUNDS QUARTERLY REPORT    21    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Telecom - 1.1% continued

      

West Corp.

      14,480      $ 359  

Windstream Holdings, Inc.

      12,847        94  

Zix Corp.*

      3,466        17  
  

 

 

     

 

 

  
        5,884  
     

 

 

  

Transportation & Logistics - 1.3%

      

Air T, Inc.*

      510        12  

Air Transport Services Group, Inc.*

      15,525        248  

ArcBest Corp.

      4,079        113  

Atlas Air Worldwide Holdings, Inc.*

      6,975        364  

Celadon Group, Inc.

      12,115        87  

Covenant Transportation Group, Inc., Class A*

      7,127        138  

DHT Holdings, Inc.

      10,095        42  

Dorian LPG Ltd.*

      1,085        9  

Echo Global Logistics, Inc.*

      11,216        281  

Forward Air Corp.

      8,607        408  

GasLog Ltd.

      3,266        53  

Golar LNG Ltd.

      17,871        410  

Heartland Express, Inc.

      16,856        343  

Hornbeck Offshore Services, Inc.*

      291        2  

International Seaways, Inc.*

      73        1  

Knight Transportation, Inc.

      14,082        465  

Marten Transport Ltd.

      7,457        174  

Matson, Inc.

      12,135        429  

Mobile Mini, Inc.

      12,835        388  

Navigator Holdings Ltd.*

      275        2  

Nordic American Tankers Ltd.

      12,913        108  

Overseas Shipholding Group, Inc., Class A*

      220        1  

P.A.M. Transportation Services, Inc.*

      1,362        35  

Patriot Transportation Holding, Inc.*

      465        11  

Saia, Inc.*

      8,331        368  

Scorpio Tankers, Inc.

      48,518        220  

Ship Finance International Ltd.

      17,726        263  

Swift Transportation Co.*

      24,473        596  

Tsakos Energy Navigation Ltd.

      8,056        38  

Universal Logistics Holdings, Inc.

      4,791        78  

USA Truck, Inc.*

      6,196        54  

Werner Enterprises, Inc.

      12,318        332  

XPO Logistics, Inc.*

      19,949        861  
  

 

 

     

 

 

  
        6,934  
     

 

 

  

Transportation Equipment - 0.3%

      

American Railcar Industries, Inc.

      5,679        257  

Conrad Industries, Inc.

      2,656        57  

FreightCar America, Inc.

      4,133        62  

Greenbrier (The) Cos., Inc.

      9,317        387  

Meritor, Inc.*

      28,652        356  

Spartan Motors, Inc.

      29,111        269  

Wabash National Corp.*

      17,594        278  
  

 

 

     

 

 

  
        1,666  
     

 

 

  

Utilities - 3.4%

      

ALLETE, Inc.

      13,589        872  

American States Water Co.

      10,479        477  

Artesian Resources Corp., Class A

      7,412        237  

Atlantica Yield PLC

      8,500        164  

Avista Corp.

      17,305        692  

Black Hills Corp.

      8,497        521  

California Water Service Group

      13,276        450  

Chesapeake Utilities Corp.

      4,814        322  

Connecticut Water Service, Inc.

      6,620        370  

Consolidated Water Co. Ltd.

      14,928        162  

Delta Natural Gas Co., Inc.

      2,813        83  

Dynegy, Inc.*

      12,872        109  

El Paso Electric Co.

      14,291        665  

Empire District Electric (The) Co.

      5,189        177  

IDACORP, Inc.

      13,955        1,124  

MGE Energy, Inc.

      9,652        630  

Middlesex Water Co.

      10,063        432  

New Jersey Resources Corp.

      22,708        806  

Northwest Natural Gas Co.

      7,553        452  

NorthWestern Corp.

      13,066        743  

NRG Yield, Inc., Class A

      8,358        128  

NRG Yield, Inc., Class C

      3,777        60  

ONE Gas, Inc.

      14,550        931  

Ormat Technologies, Inc.

      10,282        551  

Otter Tail Corp.

      10,401        424  

Pattern Energy Group, Inc.

      15,499        294  

PNM Resources, Inc.

      22,089        758  

Portland General Electric Co.

      24,716        1,071  

RGC Resources, Inc.

      593        15  

SJW Group

      7,541        422  

South Jersey Industries, Inc.

      18,043        608  

Southwest Gas Corp.

      13,066        1,001  

Spire, Inc.

      12,017        776  

 

EQUITY FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.4% continued

      

Utilities - 3.4% continued

      

Unitil Corp.

      3,954      $ 179  

WGL Holdings, Inc.

      13,748        1,049  

York Water (The) Co.

      3,920        150  
  

 

 

     

 

 

  
        17,905  
     

 

 

  

Waste & Environment Services & Equipment - 0.6%

      

Advanced Emissions Solutions, Inc.*

      5,098        47  

Cantel Medical Corp.

      9,277        730  

CECO Environmental Corp.

      6,995        98  

CLARCOR, Inc.

      13,962        1,151  

Covanta Holding Corp.

      17,538        274  

Heritage-Crystal Clean, Inc.*

      508        8  

Sharps Compliance Corp.*

      1,999        8  

Tetra Tech, Inc.

      17,127        739  

US Ecology, Inc.

      5,001        246  

Vertex Energy, Inc.*

      9,500        12  
  

 

 

     

 

 

  
        3,313  
     

 

 

  

Total Common Stocks

(Cost $384,101)

         507,737  
     

 

 

  

RIGHTS - 0.1%

      

Biotechnology & Pharmaceuticals - 0.1%

      

Dyax Corp. (Contingent Value Rights)* (2)

      3,415        —    

Forest Laboratories, Inc. (Contingent Value Rights)* (2)

      3,326        —    

Tobira Therapeutics, Inc. (Contingent Value Rights)*

      16,926        131  
  

 

 

     

 

 

  
        131  
     

 

 

  

Machinery - 0.0%

      

ClearSign Combustion Corp.* (2)

      4,275        —    
  

 

 

     

 

 

  

Medical Equipment & Devices - 0.0%

      

American Medical Alert Corp.* (2)

      13,109        —    
  

 

 

     

 

 

  

Total Rights

(Cost $ — )

         131  
     

 

 

  

OTHER - 0.0%

      

Escrow Adolor Corp.* (2)

      1,241        —    
  

 

 

     

 

 

  

Total Other

(Cost $ — )

         —    
     

 

 

  

INVESTMENT COMPANIES - 2.3%

 

Northern Institutional Funds - Government Assets Portfolio, 0.32%(3) (4)

      12,049,911        12,050  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $12,050)

         12,050  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.1%

      

U.S. Treasury Bill,

      

0.42%, 3/2/17(5) (6)

    $ 727      $ 727  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $727)

         727  
     

 

 

  

Total Investments - 99.9%

(Cost $396,878)

         520,645  
     

 

 

  

Other Assets less Liabilities - 0.1%

         530  
     

 

 

  

NET ASSETS - 100.0%

       $ 521,175  
     

 

 

  

 

(1) Value rounds to less than one thousand.
(2) Level 3 asset that is worthless, bankrupt or has been delisted.
(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(4) 7-day yield as of December 31, 2016 is disclosed.
(5) Discount rate at the time of purchase.
(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 December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Russell 2000 Mini Index

      183      $ 12,416        Long        3/17      $ (116 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    23    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

 

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.7 % 

Consumer Staples

      3.0  

Energy

      3.4  

Financials

      19.1  

Health Care

      12.4  

Industrials

      15.3  

Information Technology

      17.3  

Materials

      4.8  

Real Estate

      7.7  

Telecommunication Services

      0.8  

Utilities

      3.5  
  

 

 

  

Total

      100.0 % 
  

 

 

  

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

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

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

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

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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

           

Electrical Equipment

    $ 10,362     $ 194      $ —        $ 10,556  

Gaming, Lodging & Restaurants

      15,062       79        —          15,141  

Home & Office Products

      9,358       14        —          9,372  

Medical Equipment & Devices

      20,424       4        —          20,428  

Real Estate Investment Trusts

      40,921       76        —          40,997  

All Other Industries(1)

      411,243       —          —          411,243  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Common Stocks

      507,370       367        —          507,737  
  

 

 

    

 

 

     

 

 

     

 

 

  

Rights(1)

      —         —          131        131  

Investment Companies

    $ 12,050     $ —        $ —        $ 12,050  

Short-Term Investments

      —         727        —          727  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 519,420     $ 1,094      $ 131      $ 520,645  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Liabilities

           

Futures Contracts

    $ (116 )    $ —        $ —        $ (116 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, the Fund had transfers from Level 1 to Level 2 as disclosed below:

Transfers from Level 1 to Level 2

 

     Value
(000S)		     

Reason

Common Stocks

      

Gaming, Lodging & Restaurants

    $ 79      Valuations at bid price

Electrical Equipment

      194      Valuations at bid price
  

 

 

     

Total

    $ 273     
  

 

 

     

At December 31, 2016, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

 

     Value
(000S)		     

Reason

Common Stocks

      

Banking

    $ 100      Valuations at official close price

Recreational Facilities & Services

      8      Valuations at official close price
  

 

 

     

Total

    $ 108     
  

 

 

     

 

EQUITY FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

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

 

    BALANCE
AS OF
3/31/16
(000S)		     REALIZED
GAINS
(LOSSES)
(000S)		     CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     PURCHASES
(000S)		     SALES
(000S)		     TRANSFERS
INTO
LEVEL 3
(000S)		     TRANSFERS
OUT OF
LEVEL 3
(000S)		     BALANCE
AS OF
12/31/16
(000S)		     CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD
AT 12/31/16
(000S)		  

Rights

                  

Biotechnology & Pharmaceuticals

   $ —       $ —       $ —       $ —       $ —       $ 131     $ —       $ 131     $ 131  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Fund valued the securities included in the Balance as of 12/31/16 above using valuations provided by the adviser’s pricing and valuation committee.

 

     FAIR VALUE AT
12/31/16
(000S)		      VALUATION
TECHNIQUES		    UNOBSERVABLE
INPUTS

Rights

    $ 131      Consensus Pricing    Probability/Time Period Discount
  

 

 

        

The unobservable inputs are reviewed and compared to publicly available information for reasoneableness. Values are reviewed based on available restructuring and recovery information. Values are compared to historical averages and general sector trends are taken into account. In general, an increase (decrease) in recovery or reduction (increase) in dilution, would, in isolation, result in a significantly higher (lower) fair value measurement.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 397,246  
  

 

 

  

Gross tax appreciation of investments

    $ 139,711  

Gross tax depreciation of investments

      (16,312 ) 
  

 

 

  

Net tax appreciation of investments

    $ 123,399  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 6,598      $ 206,473      $ 201,021      $ 18      $ 12,050  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    25    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

SMALL CAP VALUE FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8%

      

Aerospace & Defense - 1.4%

      

AAR Corp.

      393,441      $ 13,003  

Ducommun, Inc.*

      26,409        675  

Esterline Technologies Corp.*

      168,331        15,015  

Moog, Inc., Class A*

      183,033        12,022  

Orbital ATK, Inc.

      78,028        6,845  

Woodward, Inc.

      45,544        3,145  
  

 

 

     

 

 

  
        50,705  
     

 

 

  

Apparel & Textile Products - 0.5%

      

Columbia Sportswear Co.

      35,589        2,075  

Deckers Outdoor Corp.*

      104,352        5,780  

Iconix Brand Group, Inc.*

      187,108        1,748  

Movado Group, Inc.

      47,198        1,357  

Perry Ellis International, Inc.*

      104,102        2,593  

Unifi, Inc.*

      129,558        4,227  
  

 

 

     

 

 

  
        17,780  
     

 

 

  

Asset Management - 0.3%

      

Calamos Asset Management, Inc., Class A

      8,063        69  

Janus Capital Group, Inc.

      739,936        9,819  
  

 

 

     

 

 

  
        9,888  
     

 

 

  

Automotive - 1.1%

      

Cooper Tire & Rubber Co.

      406,402        15,789  

Cooper-Standard Holdings, Inc.*

      45,572        4,711  

Miller Industries, Inc.

      116,046        3,069  

Modine Manufacturing Co.*

      84,335        1,256  

Standard Motor Products, Inc.

      169,801        9,037  

Superior Industries International, Inc.

      309,398        8,153  
  

 

 

     

 

 

  
        42,015  
     

 

 

  

Banking - 22.2%

      

1st Source Corp.

      20,064        896  

Arrow Financial Corp.

      15,519        629  

Astoria Financial Corp.

      472,445        8,811  

BancFirst Corp.

      64,307        5,984  

Banco Latinoamericano de Comercio Exterior S.A.

      105,032        3,092  

BancorpSouth, Inc.

      511,733        15,889  

Bank of Marin Bancorp

      4,611        322  

BankFinancial Corp.

      122,321        1,813  

Banner Corp.

      35,166        1,963  

Berkshire Hills Bancorp, Inc.

      90,734        3,344  

BNC Bancorp

      80,197        2,558  

Boston Private Financial Holdings, Inc.

      142,189        2,353  

Brookline Bancorp, Inc.

      194,853        3,196  

Bryn Mawr Bank Corp.

      18,787        792  

Cardinal Financial Corp.

      212,367        6,963  

Cathay General Bancorp

      506,013        19,244  

Central Pacific Financial Corp.

      40,660        1,278  

Chemical Financial Corp.

      350,572        18,990  

City Holding Co.

      136,741        9,244  

CNB Financial Corp.

      11,039        295  

CoBiz Financial, Inc.

      18,617        314  

Columbia Banking System, Inc.

      140,790        6,290  

Community Bank System, Inc.

      406,421        25,113  

Community Trust Bancorp, Inc.

      176,410        8,750  

CVB Financial Corp.

      515,262        11,815  

Dime Community Bancshares, Inc.

      441,514        8,874  

Enterprise Financial Services Corp.

      37,498        1,612  

FCB Financial Holdings, Inc., Class A*

      57,497        2,743  

Financial Institutions, Inc.

      50,522        1,728  

First Busey Corp.

      26,980        830  

First Commonwealth Financial Corp.

      163,324        2,316  

First Defiance Financial Corp.

      8,025        407  

First Financial Bancorp

      466,672        13,277  

First Financial Corp.

      129,419        6,833  

First Interstate BancSystem, Inc., Class A

      58,028        2,469  

First Merchants Corp.

      236,688        8,911  

First Midwest Bancorp, Inc.

      511,410        12,903  

Flushing Financial Corp.

      414,733        12,189  

FNB Corp.

      1,095,231        17,557  

Fulton Financial Corp.

      451,645        8,491  

German American Bancorp, Inc.

      6,021        317  

Glacier Bancorp, Inc.

      184,605        6,688  

Great Southern Bancorp, Inc.

      21,265        1,162  

Hanmi Financial Corp.

      85,724        2,992  

Heartland Financial USA, Inc.

      149,720        7,187  

Heritage Financial Corp.

      89,363        2,301  

Home BancShares, Inc.

      641,658        17,819  

Hope Bancorp, Inc.

      752,546        16,473  

IBERIABANK Corp.

      145,298        12,169  

Independent Bank Corp.

      189,418        13,344  

International Bancshares Corp.

      530,721        21,653  

Investors Bancorp, Inc.

      723,783        10,097  

Lakeland Bancorp, Inc.

      354,584        6,914  

Lakeland Financial Corp.

      172,770        8,182  

LegacyTexas Financial Group, Inc.

      123,415        5,314  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

 

Banking - 22.2% continued

      

MainSource Financial Group, Inc.

      64,714      $ 2,226  

MB Financial, Inc.

      169,759        8,018  

MidWestOne Financial Group, Inc.

      8,299        312  

NBT Bancorp, Inc.

      275,248        11,527  

Northwest Bancshares, Inc.

      539,455        9,726  

OceanFirst Financial Corp.

      149,787        4,498  

OFG Bancorp

      152,755        2,001  

Old National Bancorp

      59,209        1,075  

Oritani Financial Corp.

      130,025        2,438  

Pacific Continental Corp.

      8,870        194  

Park National Corp.

      79,661        9,532  

Peapack Gladstone Financial Corp.

      7,020        217  

Pinnacle Financial Partners, Inc.

      185,176        12,833  

Preferred Bank

      10,086        529  

PrivateBancorp, Inc.

      465,146        25,206  

Prosperity Bancshares, Inc.

      398,661        28,616  

Provident Financial Services, Inc.

      766,788        21,700  

Renasant Corp.

      301,041        12,710  

S&T Bancorp, Inc.

      245,293        9,576  

Sandy Spring Bancorp, Inc.

      122,011        4,879  

Sierra Bancorp

      148,042        3,936  

Simmons First National Corp., Class A

      74,287        4,617  

South State Corp.

      134,946        11,794  

Southside Bancshares, Inc.

      55,106        2,076  

Southwest Bancorp, Inc.

      8,656        251  

Sterling Bancorp

      532,416        12,459  

Stock Yards Bancorp, Inc.

      10,087        474  

Texas Capital Bancshares, Inc.*

      175,851        13,787  

TriCo Bancshares

      158,828        5,429  

TrustCo Bank Corp. NY

      137,996        1,207  

Trustmark Corp.

      514,776        18,352  

UMB Financial Corp.

      267,820        20,654  

Umpqua Holdings Corp.

      493,279        9,264  

Union Bankshares Corp.

      404,769        14,466  

United Bankshares, Inc.

      389,129        17,997  

United Community Banks, Inc.

      141,360        4,187  

United Community Financial Corp.

      27,860        249  

United Financial Bancorp, Inc.

      356,245        6,469  

Univest Corp. of Pennsylvania

      29,209        903  

Valley National Bancorp

      218,029        2,538  

Washington Federal, Inc.

      631,198        21,682  

Washington Trust Bancorp, Inc.

      162,903        9,131  

Webster Financial Corp.

      569,411        30,908  

WesBanco, Inc.

      197,885        8,521  

West Bancorporation, Inc.

      12,290        304  

Westamerica Bancorporation

      23,925        1,506  

Wintrust Financial Corp.

      186,705        13,549  

WSFS Financial Corp.

      313,464        14,529  
  

 

 

     

 

 

  
        812,742  
     

 

 

  

Biotechnology & Pharmaceuticals - 0.7%

      

Aceto Corp.

      416,463        9,150  

Aptevo Therapeutics, Inc.*

      4,613        11  

Cambrex Corp.*

      31,800        1,716  

Celldex Therapeutics, Inc.*

      327,373        1,159  

Chimerix, Inc.*

      73,494        338  

Emergent BioSolutions, Inc.*

      67,770        2,226  

Esperion Therapeutics, Inc.*

      164,953        2,065  

Impax Laboratories, Inc.*

      27,293        362  

Infinity Pharmaceuticals, Inc.*

      122,760        166  

Karyopharm Therapeutics, Inc.*

      13,535        127  

Nutraceutical International Corp.

      117,235        4,097  

PDL BioPharma, Inc.

      571,127        1,211  

PTC Therapeutics, Inc.*

      86,934        948  

Retrophin, Inc.*

      123,270        2,333  

SciClone Pharmaceuticals, Inc.*

      69,972        756  

Tetraphase Pharmaceuticals, Inc.*

      222,677        897  
  

 

 

     

 

 

  
        27,562  
     

 

 

  

Chemicals - 2.8%

      

A. Schulman, Inc.

      242,104        8,098  

Cabot Corp.

      179,725        9,083  

H.B. Fuller Co.

      228,411        11,035  

Innophos Holdings, Inc.

      82,456        4,309  

Innospec, Inc.

      36,845        2,524  

Kraton Corp.*

      84,344        2,402  

Materion Corp.

      285,928        11,323  

Minerals Technologies, Inc.

      239,277        18,484  

Olin Corp.

      514,632        13,180  

Rayonier Advanced Materials, Inc.

      131,258        2,029  

Sensient Technologies Corp.

      247,071        19,415  
  

 

 

     

 

 

  
        101,882  
     

 

 

  

Commercial Services - 2.7%

      

ABM Industries, Inc.

      440,702        17,998  

Barrett Business Services, Inc.

      34,621        2,219  

CBIZ, Inc.*

      77,073        1,056  

CEB, Inc.

      22,873        1,386  

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

 

Commercial Services - 2.7% continued

      

Cimpress N.V.*

      48,113      $ 4,408  

Ennis, Inc.

      341,834        5,931  

FTI Consulting, Inc.*

      114,444        5,159  

G&K Services, Inc., Class A

      185,313        17,874  

Huron Consulting Group, Inc.*

      62,243        3,153  

Kforce, Inc.

      140,217        3,239  

Korn/Ferry International

      306,906        9,032  

LSC Communications, Inc.

      1,407        42  

Navigant Consulting, Inc.*

      170,811        4,472  

R.R. Donnelley & Sons Co.

      4,254        69  

Resources Connection, Inc.

      96,588        1,859  

SP Plus Corp.*

      10,558        297  

UniFirst Corp.

      49,926        7,172  

Viad Corp.

      294,394        12,983  
  

 

 

     

 

 

  
        98,349  
     

 

 

  

Construction Materials - 0.1%

      

Universal Forest Products, Inc.

      24,423        2,496  
  

 

 

     

 

 

  

Consumer Products - 2.0%

      

Cal-Maine Foods, Inc.

      43,589        1,925  

Central Garden & Pet Co., Class A*

      28,278        874  

Darling Ingredients, Inc.*

      578,815        7,472  

Fresh Del Monte Produce, Inc.

      90,513        5,488  

Helen of Troy Ltd.*

      220,061        18,584  

Inter Parfums, Inc.

      192,146        6,293  

Sanderson Farms, Inc.

      74,966        7,065  

Snyder’s-Lance, Inc.

      102,423        3,927  

TreeHouse Foods, Inc.*

      62,248        4,494  

Universal Corp.

      242,546        15,462  
  

 

 

     

 

 

  
        71,584  
     

 

 

  

Consumer Services - 0.4%

      

Aaron’s, Inc.

      228,749        7,318  

Matthews International Corp., Class A

      83,645        6,428  
  

 

 

     

 

 

  
        13,746  
     

 

 

  

Containers & Packaging - 0.5%

      

KapStone Paper and Packaging Corp.

      141,051        3,110  

Multi-Color Corp.

      136,041        10,557  

Myers Industries, Inc.

      327,549        4,684  
  

 

 

     

 

 

  
        18,351  
     

 

 

  

Design, Manufacturing & Distribution - 2.2%

      

Benchmark Electronics, Inc.*

      524,724        16,004  

CTS Corp.

      408,451        9,149  

Fabrinet*

      75,895        3,059  

Plexus Corp.*

      294,501        15,915  

Sanmina Corp.*

      845,538        30,989  

Tech Data Corp.*

      58,450        4,949  
  

 

 

     

 

 

  
        80,065  
     

 

 

  

Distributors - Consumer Staples - 0.5%

      

Andersons (The), Inc.

      271,776        12,148  

Core-Mark Holding Co., Inc.

      161,938        6,975  
  

 

 

     

 

 

  
        19,123  
     

 

 

  

Distributors - Discretionary - 2.0%

      

ePlus, Inc.*

      8,167        941  

Essendant, Inc.

      78,574        1,642  

FTD Cos., Inc.*

      122,770        2,927  

Insight Enterprises, Inc.*

      522,312        21,122  

PC Connection, Inc.

      274,817        7,720  

ScanSource, Inc.*

      33,369        1,346  

SYNNEX Corp.

      302,464        36,604  
  

 

 

     

 

 

  
        72,302  
     

 

 

  

Electrical Equipment - 0.6%

      

ESCO Technologies, Inc.

      80,876        4,581  

Watts Water Technologies, Inc., Class A

      271,332        17,691  
  

 

 

     

 

 

  
        22,272  
     

 

 

  

Engineering & Construction Services - 1.3%

      

Comfort Systems USA, Inc.

      330,142        10,994  

Dycom Industries, Inc.*

      13,471        1,081  

EMCOR Group, Inc.

      293,483        20,767  

Granite Construction, Inc.

      255,751        14,066  

Great Lakes Dredge & Dock Corp.*

      18,507        78  

MYR Group, Inc.*

      49,540        1,867  

VSE Corp.

      8,474        329  
  

 

 

     

 

 

  
        49,182  
     

 

 

  

Forest & Paper Products - 0.9%

      

Domtar Corp.

      309,172        12,067  

Mercer International, Inc.

      519,873        5,537  

Neenah Paper, Inc.

      49,039        4,178  

P.H. Glatfelter Co.

      411,807        9,838  

Schweitzer-Mauduit International, Inc.

      31,581        1,438  
  

 

 

     

 

 

  
        33,058  
     

 

 

  

Gaming, Lodging & Restaurants - 0.7%

      

Belmond Ltd., Class A*

      178,280        2,380  

Bob Evans Farms, Inc.

      231,939        12,341  

DineEquity, Inc.

      20,793        1,601  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

      

Gaming, Lodging & Restaurants - 0.7% continued

      

Marriott Vacations Worldwide Corp.

      71,250      $ 6,046  

Monarch Casino & Resort, Inc.*

      14,894        384  

Texas Roadhouse, Inc.

      100,025        4,825  
  

 

 

     

 

 

  
        27,577  
     

 

 

  

Hardware - 1.2%

      

Electronics For Imaging, Inc.*

      164,907        7,233  

Finisar Corp.*

      742,156        22,465  

Mercury Systems, Inc.*

      122,185        3,692  

NETGEAR, Inc.*

      40,344        2,193  

NetScout Systems, Inc.*

      146,856        4,626  

PC-Tel, Inc.

      169,023        909  

Plantronics, Inc.

      43,950        2,407  
  

 

 

     

 

 

  
        43,525  
     

 

 

  

Health Care Facilities & Services - 2.5%

      

Amedisys, Inc.*

      194,764        8,303  

Capital Senior Living Corp.*

      141,590        2,273  

Community Health Systems, Inc.*

      178,960        1,000  

Envision Healthcare Corp.*

      306,217        19,380  

HealthSouth Corp.

      131,869        5,438  

Kindred Healthcare, Inc.

      263,754        2,070  

LHC Group, Inc.*

      32,557        1,488  

Magellan Health, Inc.*

      190,664        14,347  

Medcath Corp.* (1)

      106,845        —    

Molina Healthcare, Inc.*

      49,073        2,663  

National HealthCare Corp.

      26,481        2,007  

OvaScience, Inc.*

      95,607        146  

Owens & Minor, Inc.

      161,025        5,683  

Select Medical Holdings Corp.*

      251,414        3,331  

Triple-S Management Corp., Class B*

      268,983        5,568  

VCA, Inc.*

      89,437        6,140  

WellCare Health Plans, Inc.*

      86,896        11,912  
  

 

 

     

 

 

  
        91,749  
     

 

 

  

Home & Office Products - 1.5%

      

ACCO Brands Corp.*

      278,843        3,639  

Beazer Homes USA, Inc.*

      222,235        2,956  

CalAtlantic Group, Inc.

      217,586        7,400  

CSS Industries, Inc.

      104,422        2,827  

Griffon Corp.

      529,388        13,870  

Hooker Furniture Corp.

      122,660        4,655  

La-Z-Boy, Inc.

      300,202        9,321  

MDC Holdings, Inc.

      68,803        1,766  

Meritage Homes Corp.*

      178,338        6,206  

Steelcase, Inc., Class A

      74,037        1,325  
  

 

 

     

 

 

  
        53,965  
     

 

 

  

Industrial Services - 0.2%

      

Applied Industrial Technologies, Inc.

      49,991        2,969  

Kaman Corp.

      84,315        4,126  

McGrath RentCorp

      39,495        1,548  
  

 

 

     

 

 

  
        8,643  
     

 

 

  

Institutional Financial Services - 0.3%

      

GAIN Capital Holdings, Inc.

      20,586        136  

Stifel Financial Corp.*

      199,844        9,982  
  

 

 

     

 

 

  
        10,118  
     

 

 

  

Insurance - 4.7%

      

American Equity Investment Life Holding Co.

      542,371        12,225  

AMERISAFE, Inc.

      123,301        7,688  

Argo Group International Holdings Ltd.

      51,494        3,394  

CNO Financial Group, Inc.

      780,454        14,946  

EMC Insurance Group, Inc.

      130,063        3,903  

Employers Holdings, Inc.

      345,630        13,687  

Enstar Group Ltd.*

      9,258        1,830  

FBL Financial Group, Inc., Class A

      80,998        6,330  

Federated National Holding Co.

      6,763        126  

Horace Mann Educators Corp.

      423,793        18,138  

Infinity Property & Casualty Corp.

      6,498        571  

Kemper Corp.

      75,985        3,366  

Maiden Holdings Ltd.

      106,702        1,862  

Navigators Group (The), Inc.

      162,625        19,149  

Primerica, Inc.

      373,458        25,825  

ProAssurance Corp.

      75,049        4,218  

Radian Group, Inc.

      335,829        6,038  

RLI Corp.

      200,641        12,667  

Selective Insurance Group, Inc.

      227,489        9,793  

United Fire Group, Inc.

      162,423        7,986  
  

 

 

     

 

 

  
        173,742  
     

 

 

  

Iron & Steel - 0.5%

      

Carpenter Technology Corp.

      162,246        5,868  

Commercial Metals Co.

      367,531        8,005  

Haynes International, Inc.

      18,229        784  

TimkenSteel Corp.*

      211,777        3,278  
  

 

 

     

 

 

  
        17,935  
     

 

 

  

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

 

Leisure Products - 0.3%

      

Brunswick Corp.

      150,522      $ 8,210  

Escalade, Inc.

      3,191        42  

Vista Outdoor, Inc.*

      51,870        1,914  
  

 

 

     

 

 

  
        10,166  
     

 

 

  

Machinery - 1.9%

      

Alamo Group, Inc.

      17,442        1,327  

Astec Industries, Inc.

      34,218        2,308  

Briggs & Stratton Corp.

      112,450        2,503  

CIRCOR International, Inc.

      21,515        1,396  

Columbus McKinnon Corp.

      41,438        1,120  

Curtiss-Wright Corp.

      253,467        24,931  

Federal Signal Corp.

      174,080        2,717  

Hollysys Automation Technologies Ltd.

      65,184        1,194  

Hyster-Yale Materials Handling, Inc.

      107,629        6,864  

Kadant, Inc.

      63,819        3,906  

MSA Safety, Inc.

      25,596        1,775  

Oshkosh Corp.

      95,677        6,182  

Regal Beloit Corp.

      63,076        4,368  

Standex International Corp.

      118,483        10,409  
  

 

 

     

 

 

  
        71,000  
     

 

 

  

Manufactured Goods - 2.0%

      

Aegion Corp.*

      97,805        2,318  

Barnes Group, Inc.

      466,051        22,100  

Chart Industries, Inc.*

      102,599        3,696  

Gibraltar Industries, Inc.*

      403,490        16,805  

Insteel Industries, Inc.

      8,788        313  

Rogers Corp.*

      183,063        14,061  

Simpson Manufacturing Co., Inc.

      353,773        15,478  
  

 

 

     

 

 

  
        74,771  
     

 

 

  

Media - 1.4%

      

Bankrate, Inc.*

      225,315        2,490  

Entercom Communications Corp., Class A

      388,881        5,950  

EW Scripps (The) Co., Class A*

      463,761        8,965  

Meredith Corp.

      217,980        12,894  

New York Times (The) Co., Class A

      164,998        2,194  

RetailMeNot, Inc.*

      116,481        1,083  

Scholastic Corp.

      389,458        18,495  
  

 

 

     

 

 

  
        52,071  
     

 

 

  

Medical Equipment & Devices - 0.9%

      

AngioDynamics, Inc.*

      333,247        5,622  

CONMED Corp.

      124,056        5,480  

CryoLife, Inc.*

      344,181        6,591  

Integer Holdings Corp.*

      185,579        5,465  

Natus Medical, Inc.*

      33,743        1,174  

Nuvectra Corp.*

      67,572        340  

Orthofix International N.V.*

      45,844        1,659  

Wright Medical Group N.V.*

      243,700        5,600  
  

 

 

     

 

 

  
        31,931  
     

 

 

  

Metals & Mining - 0.5%

      

Encore Wire Corp.

      52,036        2,256  

Harsco Corp.

      221,816        3,017  

Kaiser Aluminum Corp.

      103,248        8,021  

Stillwater Mining Co.*

      260,716        4,200  
  

 

 

     

 

 

  
        17,494  
     

 

 

  

Oil, Gas & Coal - 3.4%

      

Abraxas Petroleum Corp.*

      201,274        517  

Adams Resources & Energy, Inc.

      4,425        175  

Alon USA Energy, Inc.

      4,780        54  

Approach Resources, Inc.*

      33,048        111  

Atwood Oceanics, Inc.

      170,988        2,245  

Callon Petroleum Co.*

      549,707        8,449  

Carrizo Oil & Gas, Inc.*

      156,356        5,840  

Cloud Peak Energy, Inc.*

      242,908        1,363  

Delek US Holdings, Inc.

      180,300        4,340  

Dril-Quip, Inc.*

      37,581        2,257  

Enbridge Energy Management LLC*

      120,203        3,113  

EP Energy Corp., Class A*

      605,970        3,969  

Forum Energy Technologies, Inc.*

      212,375        4,672  

Hallador Energy Co.

      39,539        359  

Matrix Service Co.*

      39,994        908  

McDermott International, Inc.*

      343,774        2,541  

Natural Gas Services Group, Inc.*

      190,882        6,137  

Newpark Resources, Inc.*

      895,781        6,718  

Oasis Petroleum, Inc.*

      609,787        9,232  

Oil States International, Inc.*

      166,865        6,508  

Parker Drilling Co.*

      388,567        1,010  

PDC Energy, Inc.*

      317,981        23,079  

PHI, Inc. (Non Voting)*

      61,379        1,106  

SEACOR Holdings, Inc.*

      60,008        4,277  

SemGroup Corp., Class A

      147,272        6,149  

SM Energy Co.

      72,875        2,513  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

 

Oil, Gas & Coal - 3.4% continued

      

Synergy Resources Corp.*

      572,329      $ 5,100  

Western Refining, Inc.

      247,733        9,377  

World Fuel Services Corp.

      47,529        2,182  
  

 

 

     

 

 

  
        124,301  
     

 

 

  

Passenger Transportation - 0.2%

      

Hawaiian Holdings, Inc.*

      46,290        2,639  

SkyWest, Inc.

      134,815        4,914  
  

 

 

     

 

 

  
        7,553  
     

 

 

  

Real Estate - 0.0%

      

RMR Group (The), Inc., Class A

      2,128        84  
  

 

 

     

 

 

  

Real Estate Investment Trusts - 10.0%

      

Acadia Realty Trust

      348,772        11,398  

Agree Realty Corp.

      195,250        8,991  

American Assets Trust, Inc.

      104,354        4,496  

Capstead Mortgage Corp.

      669,047        6,818  

CBL & Associates Properties, Inc.

      383,055        4,405  

Chatham Lodging Trust

      22,929        471  

Chesapeake Lodging Trust

      377,407        9,760  

CorEnergy Infrastructure Trust, Inc.

      8,962        313  

Corporate Office Properties Trust

      113,257        3,536  

Cousins Properties, Inc.

      836,937        7,122  

DCT Industrial Trust, Inc.

      12,344        591  

DiamondRock Hospitality Co.

      1,371,952        15,819  

DuPont Fabros Technology, Inc.

      292,778        12,862  

Education Realty Trust, Inc.

      268,983        11,378  

Equity One, Inc.

      561,315        17,227  

First Industrial Realty Trust, Inc.

      430,844        12,085  

Franklin Street Properties Corp.

      822,331        10,657  

GEO Group (The), Inc.

      413,899        14,871  

Gramercy Property Trust

      920,917        8,454  

Healthcare Realty Trust, Inc.

      408,570        12,388  

Hersha Hospitality Trust

      54,898        1,180  

Independence Realty Trust, Inc.

      123,396        1,101  

Kite Realty Group Trust

      155,763        3,657  

LaSalle Hotel Properties

      859,867        26,200  

LTC Properties, Inc.

      368,242        17,300  

Mack-Cali Realty Corp.

      293,035        8,504  

Medical Properties Trust, Inc.

      1,641,688        20,193  

MFA Financial, Inc.

      920,015        7,020  

Monmouth Real Estate Investment Corp.

      85,979        1,310  

Monogram Residential Trust, Inc.

      809,261        8,756  

National Health Investors, Inc.

      136,509        10,125  

New Residential Investment Corp.

      373,189        5,867  

New York Mortgage Trust, Inc.

      381,992        2,521  

One Liberty Properties, Inc.

      121,080        3,041  

Parkway, Inc.*

      104,617        2,328  

Pebblebrook Hotel Trust

      188,341        5,603  

Pennsylvania Real Estate Investment Trust

      504,383        9,563  

Piedmont Office Realty Trust, Inc., Class A

      260,828        5,454  

PS Business Parks, Inc.

      77,323        9,010  

Ramco-Gershenson Properties Trust

      449,778        7,457  

RLJ Lodging Trust

      813,764        19,929  

Sabra Health Care REIT, Inc.

      98,122        2,396  

Select Income REIT

      147,931        3,728  

Sun Communities, Inc.

      2,415        185  

Washington Real Estate Investment Trust

      89,664        2,931  

Weingarten Realty Investors

      183,935        6,583  

Winthrop Realty Trust*

      35,149        275  
  

 

 

     

 

 

  
        365,859  
     

 

 

  

Recreational Facilities & Services - 0.9%

      

AMC Entertainment Holdings, Inc., Class A

      48,501        1,632  

International Speedway Corp., Class A

      230,014        8,465  

Marcus (The) Corp.

      350,864        11,052  

Speedway Motorsports, Inc.

      23,401        507  

Vail Resorts, Inc.

      65,701        10,598  
  

 

 

     

 

 

  
        32,254  
     

 

 

  

Renewable Energy - 1.0%

      

Advanced Energy Industries, Inc.*

      181,200        9,921  

EnerSys

      115,527        9,023  

Green Plains, Inc.

      112,470        3,132  

Pacific Ethanol, Inc.*

      105,761        1,005  

REX American Resources Corp.*

      114,683        11,325  

Vivint Solar, Inc.*

      291,542        743  
  

 

 

     

 

 

  
        35,149  
     

 

 

  

Retail - Consumer Staples - 0.5%

      

Casey’s General Stores, Inc.

      80,436        9,562  

Ingles Markets, Inc., Class A

      38,531        1,853  

PriceSmart, Inc.

      24,565        2,051  

SpartanNash Co.

      91,449        3,616  

Weis Markets, Inc.

      29,705        1,986  
  

 

 

     

 

 

  
        19,068  
     

 

 

  

 

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

      

Retail - Discretionary - 2.2%

      

Abercrombie & Fitch Co., Class A

      242,486      $ 2,910  

Barnes & Noble, Inc.

      123,078        1,372  

Boot Barn Holdings, Inc.*

      88,281        1,105  

Caleres, Inc.

      76,970        2,526  

Cato (The) Corp., Class A

      60,946        1,833  

Children’s Place (The), Inc.

      29,133        2,941  

Citi Trends, Inc.

      8,814        166  

Container Store Group (The), Inc.*

      69,976        445  

Ethan Allen Interiors, Inc.

      235,660        8,684  

Express, Inc.*

      205,970        2,216  

Finish Line (The), Inc., Class A

      137,778        2,592  

Genesco, Inc.*

      69,262        4,301  

Group 1 Automotive, Inc.

      169,121        13,181  

Guess?, Inc.

      132,660        1,605  

Haverty Furniture Cos., Inc.

      208,332        4,938  

Office Depot, Inc.

      2,144,045        9,691  

Rush Enterprises, Inc., Class A*

      248,653        7,932  

Shoe Carnival, Inc.

      187,993        5,072  

Sonic Automotive, Inc., Class A

      292,849        6,706  

Stage Stores, Inc.

      85,533        374  
  

 

 

     

 

 

  
        80,590  
     

 

 

  

Semiconductors - 1.8%

      

Amkor Technology, Inc.*

      881,022        9,295  

Brooks Automation, Inc.

      749,692        12,797  

Cavium, Inc.*

      28,263        1,765  

Cirrus Logic, Inc.*

      66,945        3,785  

Coherent, Inc.*

      14,409        1,980  

Cohu, Inc.

      14,558        202  

Diodes, Inc.*

      106,863        2,743  

Entegris, Inc.*

      1,094,414        19,590  

FormFactor, Inc.*

      5,847        66  

II-VI, Inc.*

      70,868        2,101  

IXYS Corp.

      27,414        326  

Photronics, Inc.*

      77,126        872  

Power Integrations, Inc.

      38,999        2,646  

Semtech Corp.*

      55,333        1,746  

Ultra Clean Holdings, Inc.*

      172,393        1,672  

Vishay Intertechnology, Inc.

      206,610        3,347  

Xcerra Corp.*

      225,789        1,725  
  

 

 

     

 

 

  
        66,658  
     

 

 

  

Software - 1.2%

      

Acxiom Corp.*

      306,769        8,221  

Blackbaud, Inc.

      33,438        2,140  

Donnelley Financial Solutions, Inc.*

      1,595        37  

Ebix, Inc.

      62,605        3,572  

Mentor Graphics Corp.

      582,427        21,486  

MicroStrategy, Inc., Class A*

      14,698        2,901  

Progress Software Corp.

      156,677        5,003  

Sapiens International Corp. N.V.

      25,830        370  
  

 

 

     

 

 

  
        43,730  
     

 

 

  

Specialty Finance - 2.5%

      

Air Lease Corp.

      254,572        8,740  

Aircastle Ltd.

      421,362        8,785  

Encore Capital Group, Inc.*

      139,536        3,998  

First American Financial Corp.

      683,457        25,035  

GATX Corp.

      127,525        7,853  

HomeStreet, Inc.*

      86,077        2,720  

Marlin Business Services Corp.

      18,725        391  

Meta Financial Group, Inc.

      6,505        669  

MGIC Investment Corp.*

      1,193,326        12,160  

Nelnet, Inc., Class A

      380,202        19,295  

Ocwen Financial Corp.*

      470,437        2,536  

World Acceptance Corp.*

      11,026        709  
  

 

 

     

 

 

  
        92,891  
     

 

 

  

Technology Services - 2.2%

      

Black Box Corp.

      49,109        749  

CACI International, Inc., Class A*

      247,915        30,816  

Convergys Corp.

      978,498        24,032  

CSG Systems International, Inc.

      35,883        1,737  

Cubic Corp.

      145,422        6,973  

Engility Holdings, Inc.*

      59,806        2,015  

Fair Isaac Corp.

      39,434        4,701  

ICF International, Inc.*

      48,690        2,688  

ManTech International Corp., Class A

      43,422        1,835  

Perficient, Inc.*

      40,997        717  

Sykes Enterprises, Inc.*

      66,408        1,916  

TeleTech Holdings, Inc.

      26,849        819  

Tessera Holding Corp.*

      61,525        2,719  
  

 

 

     

 

 

  
        81,717  
     

 

 

  

Telecom - 0.4%

      

ATN International, Inc.

      9,317        747  

DigitalGlobe, Inc.*

      161,026        4,613  

IDT Corp., Class B

      12,398        230  

Intelsat S.A.*

      63,693        170  

Iridium Communications, Inc.*

      136,606        1,311  

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

 

Telecom - 0.4% continued

      

Lumos Networks Corp.*

      12,728      $ 199  

NII Holdings, Inc.*

      284,114        611  

Shenandoah Telecommunications Co.

      58,562        1,599  

Telephone & Data Systems, Inc.

      237,389        6,853  
  

 

 

     

 

 

  
        16,333  
     

 

 

  

Transportation & Logistics - 1.2%

      

ArcBest Corp.

      2,384        66  

Ardmore Shipping Corp.

      11,662        86  

DHT Holdings, Inc.

      39,184        162  

Dorian LPG Ltd.*

      92,533        760  

Gener8 Maritime, Inc.*

      115,151        516  

Marten Transport Ltd.

      81,496        1,899  

Mobile Mini, Inc.

      383,929        11,614  

Navigator Holdings Ltd.*

      17,187        160  

Navios Maritime Acquisition Corp.

      159,049        270  

Nordic American Tankers Ltd.

      98,718        829  

Roadrunner Transportation Systems, Inc.*

      98,819        1,027  

Saia, Inc.*

      204,409        9,024  

Scorpio Tankers, Inc.

      96,852        439  

Ship Finance International Ltd.

      815,871        12,116  

Teekay Corp.

      219,425        1,762  

Teekay Tankers Ltd., Class A

      63,194        143  

Tsakos Energy Navigation Ltd.

      42,571        199  

Universal Logistics Holdings, Inc.

      19,219        314  

Werner Enterprises, Inc.

      72,571        1,956  
  

 

 

     

 

 

  
        43,342  
     

 

 

  

Transportation Equipment - 0.2%

      

American Railcar Industries, Inc.

      24,789        1,123  

Greenbrier (The) Cos., Inc.

      147,416        6,125  
  

 

 

     

 

 

  
        7,248  
     

 

 

  

Utilities - 5.8%

      

ALLETE, Inc.

      281,123        18,045  

Avista Corp.

      499,761        19,985  

El Paso Electric Co.

      353,044        16,417  

Empire District Electric (The) Co.

      227,124        7,743  

Great Plains Energy, Inc.

      272,307        7,448  

IDACORP, Inc.

      341,548        27,512  

NorthWestern Corp.

      258,076        14,677  

NRG Yield, Inc., Class A

      110,516        1,697  

Otter Tail Corp.

      199,085        8,123  

PNM Resources, Inc.

      429,269        14,724  

Portland General Electric Co.

      320,941        13,906  

SJW Group

      9,701        543  

South Jersey Industries, Inc.

      244,500        8,237  

Southwest Gas Corp.

      333,228        25,532  

Spire, Inc.

      134,538        8,684  

WGL Holdings, Inc.

      274,798        20,962  
  

 

 

     

 

 

  
        214,235  
     

 

 

  

Waste & Environment Services & Equipment - 0.5%

      

Cantel Medical Corp.

      157,441        12,399  

Tetra Tech, Inc.

      128,492        5,544  
  

 

 

     

 

 

  
        17,943  
     

 

 

  

Total Common Stocks

(Cost $2,187,344)

         3,476,744  
     

 

 

  

MASTER LIMITED PARTNERSHIPS - 0.2%

      

Asset Management - 0.2%

      

Compass Diversified Holdings

      399,841        7,157  
  

 

 

     

 

 

  

Total Master Limited Partnerships

(Cost $5,395)

         7,157  
     

 

 

  

OTHER - 0.0%(1)

      

Escrow DLB Oil & Gas*

      2,100        —    

Escrow Gerber Scientific, Inc.*

      264,734        —    
  

 

 

     

 

 

  

Total Other

(Cost $ — )

         —    
     

 

 

  

INVESTMENT COMPANIES - 4.7%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(2) (3)

      171,681,400        171,681  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $171,681)

         171,681  
     

 

 

  

 

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.3%

      

U.S. Treasury Bill,

      

0.47%, 3/2/17(4) (5)

    $ 9,029      $ 9,022  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $9,022)

         9,022  
     

 

 

  

Total Investments - 100.0%

(Cost $2,373,442)

         3,664,604  
     

 

 

  

Other Assets less Liabilities - 0.0%

         1,334  
     

 

 

  

NET ASSETS - 100.0%

       $ 3,665,938  
     

 

 

  

 

(1) Level 3 asset that is worthless, bankrupt or has been delisted.
(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(3) 7-day yield as of December 31, 2016 is disclosed.
(4) Discount rate at the time of purchase.
(5) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-mini S&P 500

      275      $ 30,748        Long        3/17      $ 36  

Russell 2000 Mini Index

      2,206        149,666        Long        3/17        (1,468 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

                $ (1,432 ) 
              

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      9.1 % 

Consumer Staples

      2.5  

Energy

      4.5  

Financials

      31.7  

Health Care

      4.6  

Industrials

      14.7  

Information Technology

      11.5  

Materials

      5.0  

Real Estate

      9.9  

Telecommunication Services

      0.3  

Utilities

      6.2  
  

 

 

  

Total

      100.0 % 
  

 

 

  

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

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

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

Level 3 - 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

           

Real Estate Investment Trusts

    $ 365,584     $ 275      $ —        $ 365,859  

All Other Industries(1)

      3,110,885       —          —          3,110,885  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Common Stocks

      3,476,469       275        —          3,476,744  
  

 

 

    

 

 

     

 

 

     

 

 

  

Master Limited Partnerships(1)

      7,157       —          —          7,157  

Investment Companies

      171,681       —          —          171,681  

Short-Term Investments

      —         9,022        —          9,022  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 3,655,307     $ 9,297      $ —        $ 3,664,604  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Assets

           

Futures Contracts

    $ 36     $ —        $ —        $ 36  

Liabilities

           

Futures Contracts

      (1,468 )      —          —          (1,468 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Other Financial Instruments

    $ (1,432 )    $ —        $ —        $ (1,432 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

SMALL CAP VALUE FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 2,387,760  
  

 

 

  

Gross tax appreciation of investments

    $ 1,299,027  

Gross tax depreciation of investments

      (22,183 ) 
  

 

 

  

Net tax appreciation of investments

    $ 1,276,844  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 140,364      $ 423,482      $ 392,165      $ 204      $ 171,681  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

TECHNOLOGY FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9%

      

Biotechnology & Pharmaceuticals - 20.5%

      

Alexion Pharmaceuticals, Inc.*

      17,837      $ 2,183  

Allergan PLC*

      14,286        3,000  

Biogen, Inc.*

      9,073        2,573  

Bristol-Myers Squibb Co.

      20,501        1,198  

Celgene Corp.*

      12,818        1,484  

Pfizer, Inc.

      64,003        2,079  

Shire PLC ADR

      10,572        1,801  

Valeant Pharmaceuticals International, Inc.*

      6,014        87  
  

 

 

     

 

 

  
        14,405  
     

 

 

  

Commercial Services - 2.7%

      

Accretive Health, Inc.*

      286,173        644  

HMS Holdings Corp.*

      69,635        1,264  
  

 

 

     

 

 

  
        1,908  
     

 

 

  

Hardware - 6.3%

      

Apple, Inc.

      38,493        4,458  
  

 

 

     

 

 

  

Health Care Facilities & Services - 9.1%

      

AmerisourceBergen Corp.

      11,874        928  

Community Health Systems, Inc.*

      70,201        392  

Express Scripts Holding Co.*

      41,236        2,837  

LifePoint Health, Inc.*

      26,042        1,479  

McKesson Corp.

      5,557        781  
  

 

 

     

 

 

  
        6,417  
     

 

 

  

Media - 11.1%

      

Alphabet, Inc., Class A*

      2,023        1,603  

Alphabet, Inc., Class C*

      2,909        2,245  

Facebook, Inc., Class A*

      18,602        2,140  

Priceline Group (The), Inc.*

      938        1,375  

Twitter, Inc.*

      26,770        437  
  

 

 

     

 

 

  
        7,800  
     

 

 

  

Medical Equipment & Devices - 9.9%

      

Abbott Laboratories

      52,579        2,020  

Baxter International, Inc.

      22,080        979  

Spectranetics (The) Corp.*

      38,487        943  

Wright Medical Group N.V.*

      42,447        975  

Zimmer Biomet Holdings, Inc.

      20,038        2,068  
  

 

 

     

 

 

  
        6,985  
     

 

 

  

Retail - Discretionary - 1.6%

      

eBay, Inc.*

      38,069        1,130  
  

 

 

     

 

 

  

Semiconductors - 6.5%

      

Applied Materials, Inc.

      26,278        848  

Broadcom Ltd.

      5,737        1,014  

Lam Research Corp.

      9,954        1,053  

NXP Semiconductors N.V.*

      16,724        1,639  
  

 

 

     

 

 

  
        4,554  
     

 

 

  

Software - 23.0%

      

Activision Blizzard, Inc.

      24,423        882  

Box, Inc., Class A*

      48,382        671  

Fortinet, Inc.*

      25,298        762  

Imperva, Inc.*

      12,525        481  

Microsoft Corp.

      56,402        3,505  

Oracle Corp.

      54,303        2,088  

Proofpoint, Inc.*

      9,338        660  

Qualys, Inc.*

      32,869        1,040  

Red Hat, Inc.*

      32,983        2,299  

salesforce.com, Inc.*

      33,268        2,277  

ServiceNow, Inc.*

      10,964        815  

Splunk, Inc.*

      14,431        738  
  

 

 

     

 

 

  
        16,218  
     

 

 

  

Specialty Finance - 6.1%

      

Alliance Data Systems Corp.

      7,213        1,648  

Mastercard, Inc., Class A

      8,734        902  

PayPal Holdings, Inc.*

      44,986        1,775  
  

 

 

     

 

 

  
        4,325  
     

 

 

  

Technology Services - 2.1%

      

Cognizant Technology Solutions Corp., Class A*

      26,621        1,492  
  

 

 

     

 

 

  

Total Common Stocks

(Cost $59,977)

         69,692  
     

 

 

  

INVESTMENT COMPANIES - 1.2%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(1) (2)

      805,938        806  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $806)

         806  
     

 

 

  

Total Investments - 100.1%

(Cost $60,783)

         70,498  
     

 

 

  

Liabilities less Other Assets - (0.1%)

         (59 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 70,439  
     

 

 

  

 

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

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

TECHNOLOGY FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

(2) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      2.0 % 

Health Care

      42.6  

Information Technology

      55.4  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

    $ 69,692      $ —        $ —        $ 69,692  

Investment Companies

      806        —          —          806  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 70,498      $ —        $ —        $ 70,498  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 61,101  
  

 

 

  

Gross tax appreciation of investments

    $ 14,885  

Gross tax depreciation of investments

      (5,488 ) 
  

 

 

  

Net tax appreciation of investments

    $ 9,397  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE,
END OF
PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 449      $ 13,664      $ 13,307      $ 2      $ 806  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

EMERGING MARKETS EQUITY INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1)

     

Brazil - 4.5%

      

AES Tiete Energia S.A.

      92,472      $ 397  

Ambev S.A.

      1,903,060        9,388  

Ambev S.A. ADR

      301,954        1,483  

Banco Bradesco S.A.

      394,972        3,521  

Banco do Brasil S.A.

      408,744        3,502  

Banco Santander Brasil S.A.

      166,636        1,482  

Banco Santander Brasil S.A. ADR

      28,083        250  

BB Seguridade Participacoes S.A.

      331,701        2,871  

BM&FBovespa S.A. - Bolsa de Valores Mercadorias e Futuros

      797,861        4,022  

BR Malls Participacoes S.A.

      278,979        1,019  

BRF S.A.

      282,720        4,174  

CCR S.A.

      423,000        2,061  

Centrais Eletricas Brasileiras S.A.

      87,800        613  

CETIP S.A. - Mercados Organizados

      107,008        1,463  

Cia de Saneamento Basico do Estado de Sao Paulo

      162,271        1,410  

Cia Siderurgica Nacional S.A.

      297,390        965  

Cielo S.A.

      472,083        4,029  

Cosan S.A. Industria e Comercio

      59,747        699  

CPFL Energia S.A.

      95,421        736  

Duratex S.A.

      151,651        316  

EDP - Energias do Brasil S.A.

      143,639        590  

Embraer S.A.

      311,162        1,499  

Engie Brasil Energia S.A.

      79,138        849  

Equatorial Energia S.A.

      93,214        1,554  

Fibria Celulose S.A.

      120,317        1,156  

Hypermarcas S.A.

      165,758        1,326  

JBS S.A.

      330,936        1,153  

Klabin S.A.

      262,241        1,429  

Kroton Educacional S.A.

      656,652        2,669  

Localiza Rent a Car S.A.

      74,719        782  

Lojas Americanas S.A.

      88,320        338  

Lojas Renner S.A.

      305,895        2,168  

M Dias Branco S.A.

      16,500        583  

Multiplan Empreendimentos Imobiliarios S.A.

      39,120        711  

Natura Cosmeticos S.A.

      78,914        555  

Odontoprev S.A.

      127,050        492  

Petroleo Brasileiro S.A.

      1,242,278        6,281  

Petroleo Brasileiro S.A. ADR*

      76,267        771  

Porto Seguro S.A.

      54,108        447  

Qualicorp S.A.

      102,300        603  

Raia Drogasil S.A.

      109,707        2,058  

Rumo Logistica Operadora Multimodal S.A.

      396,300        743  

Sul America S.A.

      82,199        455  

TIM Participacoes S.A.

      389,436        919  

Ultrapar Participacoes S.A.

      167,224        3,472  

Vale S.A.

      517,062        3,945  

Vale S.A. ADR*

      84,210        642  

WEG S.A.

      272,180        1,290  
  

 

 

     

 

 

  
        83,881  
     

 

 

  

Chile - 1.1%

      

AES Gener S.A.

      1,268,409        453  

Aguas Andinas S.A., Class A

      1,194,997        622  

Banco de Chile

      11,452,377        1,342  

Banco de Credito e Inversiones

      18,037        913  

Banco Santander Chile

      30,234,530        1,682  

Banco Santander Chile ADR

      1,400        31  

Cencosud S.A.

      681,551        1,913  

Cia Cervecerias Unidas S.A.

      71,638        748  

Colbun S.A.

      3,840,723        756  

Empresa Nacional de Telecomunicaciones S.A.

      71,048        754  

Empresas CMPC S.A.

      591,746        1,210  

Empresas COPEC S.A.

      208,744        2,000  

Enel Americas S.A.

      13,075,152        2,125  

Enel Americas S.A. ADR

      3,072        25  

Enel Chile S.A.

      9,070,774        840  

Enel Chile S.A. (New York Exchange)

      3,072        14  

Enel Generacion Chile S.A.

      1,413,499        933  

Enel Generacion Chile S.A. ADR

      3,800        74  

Itau CorpBanca

      75,191,838        631  

Latam Airlines Group S.A.

      138,416        1,166  

S.A.C.I. Falabella

      280,026        2,215  
  

 

 

     

 

 

  
        20,447  
     

 

 

  

China - 21.9%

      

3SBio, Inc.* (2)

     476,500        463  

58.com, Inc. ADR

      37,000        1,036  

AAC Technologies Holdings, Inc.

      351,500        3,162  

Agricultural Bank of China Ltd., Class H

      11,469,367        4,683  

Air China Ltd., Class H

      850,705        543  

Alibaba Group Holding Ltd. ADR

      526,675        46,247  

Aluminum Corp. of China Ltd., Class H*

      1,859,435        761  

Anhui Conch Cement Co. Ltd., Class H

      580,575        1,567  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

      

China - 21.9% continued

      

ANTA Sports Products Ltd.

      464,432      $ 1,377  

AviChina Industry & Technology Co. Ltd., Class H

      969,313        666  

Baidu, Inc. ADR*

      127,400        20,946  

Bank of China Ltd., Class H

      37,183,652        16,406  

Bank of Communications Co. Ltd., Class H

      4,054,117        2,902  

Beijing Capital International Airport Co. Ltd., Class H

      700,000        706  

Belle International Holdings Ltd.

      3,033,000        1,697  

BYD Co. Ltd., Class H

      307,199        1,612  

CGN Power Co. Ltd., Class H(2)

     4,932,000        1,350  

China Cinda Asset Management Co. Ltd., Class H

      4,206,000        1,517  

China CITIC Bank Corp. Ltd., Class H

      4,125,286        2,606  

China Coal Energy Co. Ltd., Class H*

      944,232        446  

China Communications Construction Co. Ltd., Class H

      2,120,287        2,429  

China Communications Services Corp. Ltd., Class H

      1,101,035        701  

China Conch Venture Holdings Ltd.

      630,500        1,117  

China Construction Bank Corp., Class H

      39,414,693        30,196  

China Everbright Bank Co. Ltd., Class H

      1,492,000        678  

China Everbright International Ltd.

      1,186,000        1,338  

China Evergrande Group

      1,976,400        1,228  

China Galaxy Securities Co. Ltd., Class H

      1,376,500        1,236  

China Huarong Asset Management Co. Ltd.* (2)

      2,050,000        739  

China Huishan Dairy Holdings Co. Ltd.

      1,922,380        746  

China Life Insurance Co. Ltd., Class H

      3,486,544        9,020  

China Longyuan Power Group Corp. Ltd., Class H

      1,529,473        1,183  

China Medical System Holdings Ltd.

      582,000        918  

China Mengniu Dairy Co. Ltd.

      1,265,870        2,420  

China Merchants Bank Co. Ltd., Class H

      1,822,933        4,236  

China Minsheng Banking Corp. Ltd., Class H

      2,730,712        2,899  

China National Building Material Co. Ltd., Class H

      1,346,000        654  

China Oilfield Services Ltd., Class H

      848,757        784  

China Pacific Insurance Group Co. Ltd., Class H

      1,232,137        4,261  

China Petroleum & Chemical Corp., Class H

      11,940,628        8,450  

China Railway Construction Corp. Ltd., Class H

      922,000        1,181  

China Railway Group Ltd., Class H

      1,853,827        1,517  

China Shenhua Energy Co. Ltd., Class H

      1,576,636        2,940  

China Southern Airlines Co. Ltd., Class H

      852,530        441  

China Telecom Corp. Ltd., Class H

      6,436,339        2,964  

China Vanke Co. Ltd., Class H

      620,572        1,403  

Chongqing Changan Automobile Co. Ltd., Class B

      418,600        598  

Chongqing Rural Commercial Bank Co. Ltd., Class H

      1,183,434        695  

CITIC Securities Co. Ltd., Class H

      1,037,000        2,090  

CNOOC Ltd.

      8,382,433        10,349  

Country Garden Holdings Co. Ltd.

      2,632,303        1,466  

CRRC Corp. Ltd., Class H

      1,938,991        1,734  

CSPC Pharmaceutical Group Ltd.

      1,986,000        2,112  

Ctrip.com International Ltd. ADR

      175,211        7,008  

Dongfeng Motor Group Co. Ltd., Class H

      1,307,169        1,272  

ENN Energy Holdings Ltd.

      363,279        1,488  

Fosun International Ltd.

      1,238,365        1,735  

Fuyao Glass Industry Group Co. Ltd., Class H(2)

     194,800        599  

Geely Automobile Holdings Ltd.

      2,506,641        2,384  

GF Securities Co. Ltd., Class H

      640,800        1,338  

GOME Electrical Appliances Holding Ltd.

      5,794,970        700  

Great Wall Motor Co. Ltd., Class H

      1,490,796        1,382  

Guangzhou Automobile Group Co. Ltd., Class H

      1,011,760        1,211  

Guangzhou R&F Properties Co. Ltd., Class H

      438,814        530  

Haitian International Holdings Ltd.

      291,000        567  

Haitong Securities Co. Ltd., Class H

      1,416,833        2,419  

Hengan International Group Co. Ltd.

      335,898        2,463  

HengTen Networks Group Ltd.*

      8,952,000        447  

Huaneng Power International, Inc., Class H

      1,984,501        1,311  

Huaneng Renewables Corp. Ltd., Class H

      1,814,357        587  

Huatai Securities Co. Ltd., Class H(2)

     703,000        1,336  

 

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

      

China - 21.9% continued

      

Industrial & Commercial Bank of China Ltd., Class H

      34,541,023      $ 20,601  

JD.com, Inc. ADR*

      311,700        7,930  

Jiangsu Expressway Co. Ltd., Class H

      572,000        721  

Jiangxi Copper Co. Ltd., Class H

      591,000        819  

Kingsoft Corp. Ltd.

      367,903        749  

Lenovo Group Ltd.

      3,458,000        2,083  

Longfor Properties Co. Ltd.

      705,231        892  

NetEase, Inc. ADR

      37,200        8,011  

New China Life Insurance Co. Ltd., Class H

      372,852        1,696  

New Oriental Education & Technology Group, Inc. ADR*

      63,600        2,678  

People’s Insurance Co. Group of China (The) Ltd., Class H

      3,245,535        1,276  

PetroChina Co. Ltd., Class H

      9,879,438        7,290  

PICC Property & Casualty Co. Ltd., Class H

      2,136,906        3,297  

Ping An Insurance Group Co. of China Ltd., Class H

      2,441,406        12,147  

Qinqin Foodstuffs Group Cayman Co. Ltd.* (3)

     1        —    

Qunar Cayman Islands Ltd. ADR*

      17,000        512  

Semiconductor Manufacturing International Corp.*

      1,319,000        2,061  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

      852,116        567  

Shanghai Electric Group Co. Ltd., Class H*

      1,344,000        599  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

      186,500        570  

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B

      422,134        618  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

      316,300        723  

Shenzhou International Group Holdings Ltd.

      269,000        1,694  

SINA Corp.*

      26,849        1,632  

Sino-Ocean Group Holding Ltd.

      1,455,048        649  

Sinopec Engineering Group Co. Ltd., Class H

      584,500        487  

Sinopec Shanghai Petrochemical Co. Ltd., Class H

      1,622,005        878  

Sinopharm Group Co. Ltd., Class H

      570,714        2,341  

Sinotrans Ltd., Class H

      978,000        434  

SOHO China Ltd.

      1,020,278        501  

Sunac China Holdings Ltd.

      871,000        725  

Sunny Optical Technology Group Co. Ltd.

      337,625        1,471  

TAL Education Group ADR*

      20,700        1,452  

Tencent Holdings Ltd.

      2,664,168        64,660  

Tingyi Cayman Islands Holding Corp.

      912,435        1,104  

TravelSky Technology Ltd., Class H

      433,000        907  

Tsingtao Brewery Co. Ltd., Class H

      163,767        617  

Vipshop Holdings Ltd. ADR*

      192,800        2,123  

Want Want China Holdings Ltd.

      2,606,870        1,666  

Weibo Corp. ADR*

      12,400        503  

Weichai Power Co. Ltd., Class H

      449,906        690  

Yanzhou Coal Mining Co. Ltd., Class H

      867,138        589  

YY, Inc. ADR*

      13,900        548  

Zhejiang Expressway Co. Ltd., Class H

      657,294        627  

Zhuzhou CRRC Times Electric Co. Ltd.

      253,974        1,284  

Zijin Mining Group Co. Ltd., Class H

      2,668,162        844  

ZTE Corp., Class H

      340,917        591  
  

 

 

     

 

 

  
        409,050  
     

 

 

  

Colombia - 0.3%

      

Cementos Argos S.A.

      223,669        882  

Corp. Financiera Colombiana S.A.

      39,780        491  

Ecopetrol S.A.*

      2,212,516        1,006  

Ecopetrol S.A. ADR*

      5,700        52  

Grupo Argos S.A.

      136,493        875  

Grupo de Inversiones Suramericana S.A.

      109,407        1,391  

Interconexion Electrica S.A. ESP

      180,991        601  
  

 

 

     

 

 

  
        5,298  
     

 

 

  

Czech Republic - 0.2%

      

CEZ A.S.

      77,750        1,301  

Komercni banka A.S.

      36,659        1,262  

Moneta Money Bank A.S.* (2)

     170,816        551  

O2 Czech Republic A.S.

      26,195        265  
  

 

 

     

 

 

  
        3,379  
     

 

 

  

Egypt - 0.1%

      

Commercial International Bank Egypt S.A.E.

      496,760        2,003  

Global Telecom Holding S.A.E.*

      1,286,792        510  

Talaat Moustafa Group

      433,600        218  
  

 

 

     

 

 

  
        2,731  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

      

Greece - 0.4%

      

Alpha Bank A.E.*

      668,239      $ 1,339  

Eurobank Ergasias S.A.*

      853,288        578  

FF Group*

      16,572        335  

Hellenic Telecommunications Organization S.A.

      113,268        1,065  

JUMBO S.A.

      49,930        790  

National Bank of Greece S.A.*

      2,520,351        659  

OPAP S.A.

      104,780        927  

Piraeus Bank S.A.*

      2,998,299        661  

Titan Cement Co. S.A.

      21,001        493  
  

 

 

     

 

 

  
        6,847  
     

 

 

  

Hong Kong - 3.9%

      

Alibaba Health Information Technology Ltd.*

      1,524,000        764  

Alibaba Pictures Group Ltd.*

      5,250,000        850  

Beijing Enterprises Holdings Ltd.

      241,271        1,137  

Beijing Enterprises Water Group Ltd.*

      2,095,886        1,382  

Brilliance China Automotive Holdings Ltd.

      1,411,944        1,938  

China Everbright Ltd.

      427,110        806  

China Gas Holdings Ltd.

      813,495        1,102  

China Jinmao Holdings Group Ltd.

      1,679,791        451  

China Merchants Port Holdings Co. Ltd.

      621,198        1,536  

China Mobile Ltd.

      2,877,008        30,168  

China Overseas Land & Investment Ltd.

      1,781,695        4,699  

China Power International Development Ltd.

      1,514,000        547  

China Resources Beer Holdings Co. Ltd.*

      778,948        1,539  

China Resources Gas Group Ltd.

      415,958        1,166  

China Resources Land Ltd.

      1,283,432        2,894  

China Resources Power Holdings Co. Ltd.

      923,735        1,462  

China State Construction International Holdings Ltd.

      830,534        1,238  

China Taiping Insurance Holdings Co. Ltd.*

      760,904        1,562  

China Unicom Hong Kong Ltd.

      2,782,494        3,232  

CITIC Ltd.

      2,020,803        2,883  

COSCO SHIPPING Ports Ltd.

      794,004        796  

Far East Horizon Ltd.

      958,000        818  

Fullshare Holdings Ltd.

      3,227,500        1,502  

GCL-Poly Energy Holdings Ltd.*

      6,068,810        725  

Guangdong Investment Ltd.

      1,350,514        1,773  

Haier Electronics Group Co. Ltd.

      608,000        955  

Kunlun Energy Co. Ltd.

      1,495,230        1,116  

Nine Dragons Paper Holdings Ltd.

      757,923        685  

Shanghai Industrial Holdings Ltd.

      229,043        618  

Shimao Property Holdings Ltd.

      560,403        730  

Sino Biopharmaceutical Ltd.

      2,088,000        1,467  

Sun Art Retail Group Ltd.

      1,137,000        996  
  

 

 

     

 

 

  
        73,537  
     

 

 

  

Hungary - 0.3%

      

MOL Hungarian Oil & Gas PLC

      17,417        1,222  

OTP Bank PLC

      110,473        3,153  

Richter Gedeon Nyrt.

      67,302        1,421  
  

 

 

     

 

 

  
        5,796  
     

 

 

  

India - 8.2%

      

ACC Ltd.

      20,991        411  

Adani Ports & Special Economic Zone Ltd.

      388,854        1,530  

Ambuja Cements Ltd.

      276,882        839  

Apollo Hospitals Enterprise Ltd.

      35,768        621  

Ashok Leyland Ltd.

      534,793        629  

Asian Paints Ltd.

      137,781        1,808  

Aurobindo Pharma Ltd.

      123,454        1,216  

Axis Bank Ltd.

      782,092        5,168  

Bajaj Auto Ltd.

      40,285        1,558  

Bajaj Finance Ltd.

      77,780        965  

Bajaj Finserv Ltd.

      14,970        636  

Bharat Forge Ltd.

      48,415        645  

Bharat Heavy Electricals Ltd.

      287,680        512  

Bharat Petroleum Corp. Ltd.

      225,083        2,104  

Bharti Airtel Ltd.

      478,603        2,153  

Bharti Infratel Ltd.

      267,589        1,353  

Bosch Ltd.

      3,558        1,099  

Cadila Healthcare Ltd.

      96,620        506  

Cairn India Ltd.

      209,900        747  

Cipla Ltd.

      166,243        1,394  

Coal India Ltd.

      326,758        1,442  

Container Corp. of India Ltd.

      14,835        242  

Dabur India Ltd.

      244,240        1,001  

Divi’s Laboratories Ltd.

      38,428        443  

Dr. Reddy’s Laboratories Ltd.

      39,130        1,763  

Dr. Reddy’s Laboratories Ltd. ADR

      15,005        679  

Eicher Motors Ltd.

      6,377        2,043  

GAIL India Ltd.

      148,327        958  

 

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

 

   

India - 8.2% continued

      

Glenmark Pharmaceuticals Ltd.

      63,584      $ 831  

Godrej Consumer Products Ltd.

      57,364        1,274  

Havells India Ltd.

      118,743        596  

HCL Technologies Ltd.

      262,114        3,195  

Hero MotoCorp Ltd.

      24,066        1,075  

Hindalco Industries Ltd.

      522,664        1,186  

Hindustan Petroleum Corp. Ltd.

      171,717        1,112  

Hindustan Unilever Ltd.

      302,105        3,677  

Housing Development Finance Corp. Ltd.

      704,321        13,092  

ICICI Bank Ltd.

      268,892        1,008  

ICICI Bank Ltd. ADR

      130,355        976  

Idea Cellular Ltd.

      585,866        639  

IDFC Bank Ltd.

      518,592        458  

Indiabulls Housing Finance Ltd.

      141,673        1,349  

Infosys Ltd.

      739,856        11,000  

Infosys Ltd. ADR

      121,548        1,803  

ITC Ltd.

      1,582,992        5,623  

JSW Steel Ltd.

      40,922        978  

Larsen & Toubro Ltd.

      144,298        2,859  

Larsen & Toubro Ltd. GDR (Registered)

      7,050        140  

LIC Housing Finance Ltd.

      143,653        1,183  

Lupin Ltd.

      101,528        2,222  

Mahindra & Mahindra Financial Services Ltd.

      129,242        511  

Mahindra & Mahindra Ltd.

      172,654        3,000  

Marico Ltd.

      213,060        817  

Maruti Suzuki India Ltd.

      49,238        3,835  

Motherson Sumi Systems Ltd.

      200,041        961  

Nestle India Ltd.

      10,686        947  

NTPC Ltd.

      791,597        1,917  

Oil & Natural Gas Corp. Ltd.

      603,366        1,700  

Piramal Enterprises Ltd.

      36,675        874  

Power Finance Corp. Ltd.

      303,970        546  

Reliance Industries Ltd.

      502,551        8,004  

Reliance Industries Ltd. GDR(2)

     53,026        1,671  

Shree Cement Ltd.

      4,047        876  

Shriram Transport Finance Co. Ltd.

      71,175        890  

Siemens Ltd.

      33,021        539  

State Bank of India

      718,595        2,632  

Sun Pharmaceutical Industries Ltd.

      449,095        4,146  

Tata Consultancy Services Ltd.

      221,549        7,701  

Tata Motors Ltd.

      704,392        4,893  

Tata Motors Ltd. ADR

      7,068        243  

Tata Motors Ltd., Class A (Differential Voting Rights)

      177,136        777  

Tata Power Co. Ltd.

      510,667        571  

Tata Steel Ltd.

      141,079        809  

Tech Mahindra Ltd.

      106,940        768  

Titan Co. Ltd.

      145,184        696  

UltraTech Cement Ltd.

      41,583        1,984  

United Spirits Ltd.*

      30,431        870  

UPL Ltd.

      170,352        1,618  

Vedanta Ltd.

      480,962        1,524  

Wipro Ltd.

      270,999        1,894  

Wipro Ltd. ADR

      15,540        150  

Yes Bank Ltd.

      149,033        2,528  

Zee Entertainment Enterprises Ltd.

      276,165        1,839  
  

 

 

     

 

 

  
        153,472  
     

 

 

  

Indonesia - 2.6%

      

Adaro Energy Tbk PT

      6,920,820        869  

AKR Corporindo Tbk PT

      891,300        397  

Astra International Tbk PT

      9,455,460        5,782  

Bank Central Asia Tbk PT

      5,741,292        6,576  

Bank Danamon Indonesia Tbk PT

      1,522,643        419  

Bank Mandiri Persero Tbk PT

      4,322,355        3,696  

Bank Negara Indonesia Persero Tbk PT

      3,563,709        1,457  

Bank Rakyat Indonesia Persero Tbk PT

      5,158,058        4,473  

Bumi Serpong Damai Tbk PT

      3,562,500        462  

Charoen Pokphand Indonesia Tbk PT

      3,401,435        778  

Gudang Garam Tbk PT

      231,815        1,098  

Hanjaya Mandala Sampoerna Tbk PT

      4,460,000        1,268  

Indocement Tunggal Prakarsa Tbk PT

      689,403        787  

Indofood CBP Sukses Makmur Tbk PT

      1,093,000        695  

Indofood Sukses Makmur Tbk PT

      2,108,671        1,239  

Jasa Marga Persero Tbk PT

      823,427        264  

Kalbe Farma Tbk PT

      10,166,180        1,136  

Lippo Karawaci Tbk PT

      8,481,500        452  

Matahari Department Store Tbk PT

      1,117,773        1,248  

Media Nusantara Citra Tbk PT

      2,335,500        303  

Pakuwon Jati Tbk PT

      11,510,000        481  

Perusahaan Gas Negara Persero Tbk

      5,259,112        1,050  

Semen Indonesia Persero Tbk PT

      1,433,855        972  

Summarecon Agung Tbk PT

      4,749,065        465  

Surya Citra Media Tbk PT

      2,708,500        562  

Telekomunikasi Indonesia Persero Tbk PT

      23,618,362        6,948  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

 

   

Indonesia - 2.6% continued

      

Tower Bersama Infrastructure Tbk PT

      1,116,800      $ 413  

Unilever Indonesia Tbk PT

      728,628        2,098  

United Tractors Tbk PT

      811,271        1,278  

Waskita Karya Persero Tbk PT

      2,354,400        444  

XL Axiata Tbk PT*

      1,813,575        311  
  

 

 

     

 

 

  
        48,421  
     

 

 

  

Malaysia - 2.5%

      

AirAsia Bhd.

      633,900        323  

Alliance Financial Group Bhd.

      498,600        413  

AMMB Holdings Bhd.

      874,337        839  

Astro Malaysia Holdings Bhd.

      719,400        417  

Axiata Group Bhd.

      1,258,870        1,322  

Berjaya Sports Toto Bhd.

      352,361        233  

British American Tobacco Malaysia Bhd.

      66,800        664  

CIMB Group Holdings Bhd.

      1,400,501        1,407  

Dialog Group Bhd.

      1,470,344        504  

DiGi.Com Bhd.

      1,677,500        1,807  

Felda Global Ventures Holdings Bhd.

      588,200        203  

Gamuda Bhd.

      818,600        872  

Genting Bhd.

      1,076,800        1,918  

Genting Malaysia Bhd.

      1,381,100        1,408  

Genting Plantations Bhd.

      108,200        260  

HAP Seng Consolidated Bhd.

      269,200        532  

Hartalega Holdings Bhd.

      246,300        265  

Hong Leong Bank Bhd.

      287,998        865  

Hong Leong Financial Group Bhd.

      111,928        354  

IHH Healthcare Bhd.

      1,564,000        2,214  

IJM Corp. Bhd.

      1,387,040        989  

IOI Corp. Bhd.

      1,054,140        1,031  

IOI Properties Group Bhd.

      728,848        341  

Kuala Lumpur Kepong Bhd.

      197,550        1,055  

Lafarge Malaysia Bhd.

      151,000        242  

Malayan Banking Bhd.

      1,656,332        3,025  

Malaysia Airports Holdings Bhd.

      353,893        478  

Maxis Bhd.

      893,051        1,189  

MISC Bhd.

      519,260        851  

Petronas Chemicals Group Bhd.

      1,151,800        1,792  

Petronas Dagangan Bhd.

      92,200        489  

Petronas Gas Bhd.

      332,300        1,577  

PPB Group Bhd.

      221,800        784  

Public Bank Bhd.

      1,260,661        5,539  

RHB Bank Bhd.

      388,646        407  

RHB Capital Bhd.(4)

     297,992        —    

SapuraKencana Petroleum Bhd.*

      1,810,900        652  

Sime Darby Bhd.

      1,072,728        1,936  

Telekom Malaysia Bhd.

      541,486        718  

Tenaga Nasional Bhd.

      1,579,850        4,887  

UMW Holdings Bhd.

      225,200        229  

Westports Holdings Bhd.

      490,800        470  

YTL Corp. Bhd.

      2,093,980        723  

YTL Power International Bhd.

      997,013        331  
  

 

 

     

 

 

  
        46,555  
     

 

 

  

Mexico - 3.5%

      

Alfa S.A.B. de C.V., Series A

      1,350,580        1,672  

America Movil S.A.B. de C.V., Series L

      15,505,906        9,739  

Arca Continental S.A.B. de C.V.

      194,384        1,011  

Cemex S.A.B. de C.V., Series CPO*

      6,562,648        5,249  

Coca-Cola Femsa S.A.B. de C.V., Series L

      238,822        1,514  

El Puerto de Liverpool S.A.B. de C.V., Series C1

      88,470        638  

Fibra Uno Administracion S.A. de C.V.

      1,234,200        1,886  

Fomento Economico Mexicano S.A.B. de C.V., Series UBD

      861,477        6,557  

Gentera S.A.B. de C.V.

      461,372        742  

Gruma S.A.B. de C.V., Series B

      104,250        1,325  

Grupo Aeroportuario del Pacifico S.A.B. de C.V., Series B

      166,252        1,367  

Grupo Aeroportuario del Sureste S.A.B. de C.V., Series B

      98,420        1,417  

Grupo Bimbo S.A.B. de C.V., Series A

      789,128        1,784  

Grupo Carso S.A.B. de C.V., Series A1

      267,606        1,076  

Grupo Financiero Banorte S.A.B. de C.V., Series O

      1,167,418        5,750  

Grupo Financiero Inbursa S.A.B. de C.V., Series O

      1,117,643        1,694  

Grupo Financiero Santander Mexico S.A.B. de C.V., Series B

      853,800        1,228  

Grupo Lala S.A.B. de C.V.

      286,580        417  

Grupo Mexico S.A.B. de C.V., Series B

      1,784,136        4,845  

Grupo Televisa S.A.B., Series CPO

      1,143,114        4,768  

Industrias Penoles S.A.B. de C.V.

      65,037        1,206  

Infraestructura Energetica Nova S.A.B. de C.V.

      221,300        964  

Kimberly-Clark de Mexico S.A.B. de C.V., Series A

      733,527        1,321  

Mexichem S.A.B. de C.V.

      506,180        1,148  

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

 

   

Mexico - 3.5% continued

      

OHL Mexico S.A.B. de C.V.

      348,700      $ 343  

Promotora y Operadora de Infraestructura S.A.B. de C.V.

      124,000        1,035  

Wal-Mart de Mexico S.A.B. de C.V.

      2,440,337        4,367  
  

 

 

     

 

 

  
        65,063  
     

 

 

  

Peru - 0.4%

      

Cia de Minas Buenaventura S.A.A. ADR

      91,706        1,034  

Credicorp Ltd.

      31,652        4,997  

Southern Copper Corp.

      39,827        1,272  
  

 

 

     

 

 

  
        7,303  
     

 

 

  

Philippines - 1.2%

      

Aboitiz Equity Ventures, Inc.

      935,449        1,332  

Aboitiz Power Corp.

      679,344        570  

Alliance Global Group, Inc.

      997,824        257  

Ayala Corp.

      116,497        1,714  

Ayala Land, Inc.

      3,518,680        2,262  

Bank of the Philippine Islands

      344,503        615  

BDO Unibank, Inc.

      787,346        1,774  

DMCI Holdings, Inc.

      1,794,000        478  

Energy Development Corp.

      4,186,950        434  

Globe Telecom, Inc.

      15,050        457  

GT Capital Holdings, Inc.

      36,780        939  

International Container Terminal Services, Inc.

      224,340        323  

JG Summit Holdings, Inc.

      1,372,651        1,866  

Jollibee Foods Corp.

      200,823        782  

Megaworld Corp.

      5,366,000        385  

Metro Pacific Investments Corp.

      6,269,200        838  

Metropolitan Bank & Trust Co.

      296,148        433  

PLDT, Inc.

      46,725        1,284  

Robinsons Land Corp.

      744,200        389  

Security Bank Corp.

      52,550        201  

SM Investments Corp.

      115,807        1,523  

SM Prime Holdings, Inc.

      3,804,213        2,165  

Universal Robina Corp.

      411,360        1,351  
  

 

 

     

 

 

  
        22,372  
     

 

 

  

Poland - 1.1%

      

Alior Bank S.A.*

      42,883        555  

Bank Handlowy w Warszawie S.A.

      15,809        289  

Bank Millennium S.A.*

      268,226        333  

Bank Pekao S.A.

      72,257        2,172  

Bank Zachodni WBK S.A.

      16,699        1,261  

CCC S.A.

      12,625        614  

Cyfrowy Polsat S.A.*

      89,560        527  

Eurocash S.A.

      37,675        354  

Grupa Azoty S.A.

      21,458        321  

Grupa Lotos S.A.*

      47,033        430  

Jastrzebska Spolka Weglowa S.A.*

      19,082        305  

KGHM Polska Miedz S.A.

      67,543        1,489  

LPP S.A.

      582        790  

mBank S.A.*

      6,963        558  

Orange Polska S.A.

      296,690        390  

PGE Polska Grupa Energetyczna S.A.

      397,076        991  

Polski Koncern Naftowy ORLEN S.A.

      149,086        3,037  

Polskie Gornictwo Naftowe i Gazownictwo S.A.

      855,510        1,150  

Powszechna Kasa Oszczednosci Bank Polski S.A.*

      403,790        2,715  

Powszechny Zaklad Ubezpieczen S.A.

      257,600        2,044  

Synthos S.A.

      273,252        298  

Tauron Polska Energia S.A.*

      485,210        330  
  

 

 

     

 

 

  
        20,953  
     

 

 

  

Qatar - 0.9%

      

Barwa Real Estate Co.

      44,751        408  

Commercial Bank (The) QSC

      73,899        660  

Doha Bank QSC

      60,481        580  

Ezdan Holding Group QSC

      381,849        1,583  

Industries Qatar QSC

      69,623        2,246  

Masraf Al Rayan QSC

      168,010        1,734  

Ooredoo QSC

      38,753        1,083  

Qatar Electricity & Water Co. QSC

      12,571        784  

Qatar Gas Transport Co. Ltd.

      125,196        793  

Qatar Insurance Co. S.A.Q.

      56,912        1,324  

Qatar Islamic Bank S.A.Q.

      27,174        775  

Qatar National Bank S.A.Q.

      98,041        4,386  
  

 

 

     

 

 

  
        16,356  
     

 

 

  

Romania - 0.1%

      

New Europe Property Investments PLC

      113,361        1,312  
  

 

 

     

 

 

  

Russia - 4.2%

      

Alrosa PJSC

      1,199,011        1,903  

Gazprom PJSC

      489,154        1,232  

Gazprom PJSC ADR (London International Exchange)

      2,534,308        12,779  

Inter RAO UES PJSC

      12,705,000        796  

Lukoil PJSC

      30,206        1,697  

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

      

Russia - 4.2% continued

      

Lukoil PJSC ADR

      161,150      $ 9,025  

Lukoil PJSC ADR (OTC Exchange)

      8,433        473  

Magnit PJSC

      3,011        540  

Magnit PJSC GDR (Registered) (London Stock Exchange)

      128,483        5,662  

MMC Norilsk Nickel PJSC

      7,280        1,200  

MMC Norilsk Nickel PJSC ADR

      105,708        1,770  

MMC Norilsk Nickel PJSC ADR (OTC Exchange)

      80,388        1,360  

Mobile TeleSystems PJSC ADR

      234,850        2,139  

Moscow Exchange MICEX-RTS PJSC

      633,106        1,296  

Novatek PJSC GDR (Registered)

      42,745        5,537  

PhosAgro PJSC GDR (Registered)

      45,149        688  

Rosneft Oil Co.PJSC

      73,185        480  

Rosneft Oil Co. PJSC GDR (Registered)

      469,989        3,048  

Rostelecom PJSC

      382,937        524  

Rostelecom PJSC ADR

      10,070        83  

RusHydro PJSC

      28,649,245        432  

RusHydro PJSC ADR

      266,069        386  

Sberbank of Russia PJSC

      56,000        159  

Sberbank of Russia PJSC (Moscow Exchange)

      4,420,422        12,474  

Sberbank of Russia PJSC ADR

      148,057        1,710  

Severstal PJSC

      8,730        134  

Severstal PJSC GDR (Registered)

      88,463        1,341  

Sistema PJSC FC GDR (Registered)

      79,181        713  

Surgutneftegas OJSC

      409,067        206  

Surgutneftegas OJSC ADR

      172,604        870  

Surgutneftegas OJSC ADR (OTC Exchange)

      120,622        603  

Tatneft PJSC

      182,998        1,272  

Tatneft PJSC ADR

      78,260        3,222  

Tatneft PJSC ADR

      1,663        68  

VTB Bank PJSC

      1,687,546,738        2,036  

VTB Bank PJSC GDR(2)

     11,036        27  

VTB Bank PJSC GDR (Registered)

      384,561        916  
  

 

 

     

 

 

  
        78,801  
     

 

 

  

South Africa - 6.9%

      

African Bank Investments Ltd.*

      213,004        5  

Anglo American Platinum Ltd.*

      24,969        478  

AngloGold Ashanti Ltd.*

      194,523        2,084  

Aspen Pharmacare Holdings Ltd.

      173,445        3,579  

Barclays Africa Group Ltd.

      202,095        2,466  

Bid Corp. Ltd.

      159,689        2,836  

Bidvest Group (The) Ltd.

      148,689        1,953  

Brait S.E.*

      149,037        949  

Capitec Bank Holdings Ltd.

      18,531        938  

Coronation Fund Managers Ltd.

      105,692        540  

Discovery Ltd.

      169,955        1,416  

Exxaro Resources Ltd.

      64,240        416  

FirstRand Ltd.

      1,572,816        6,048  

Fortress Income Fund Ltd.

      361,743        847  

Fortress Income Fund Ltd., Class A

      435,751        528  

Foschini Group (The) Ltd.

      100,930        1,162  

Gold Fields Ltd.

      392,508        1,196  

Growthpoint Properties Ltd.

      1,003,242        1,899  

Hyprop Investments Ltd.

      114,798        977  

Impala Platinum Holdings Ltd.*

      295,118        912  

Imperial Holdings Ltd.

      75,529        998  

Investec Ltd.

      117,087        773  

Liberty Holdings Ltd.

      52,791        425  

Life Healthcare Group Holdings Ltd.

      477,998        1,130  

Massmart Holdings Ltd.

      50,257        461  

Mediclinic International PLC(3)

     —          —    

MMI Holdings Ltd.

      491,078        839  

Mondi Ltd.

      54,972        1,117  

Mr Price Group Ltd.

      116,457        1,347  

MTN Group Ltd.

      775,205        7,081  

Naspers Ltd., Class N

      205,303        29,914  

Nedbank Group Ltd.

      94,688        1,631  

Netcare Ltd.

      454,922        1,054  

Pick n Pay Stores Ltd.

      170,408        790  

Pioneer Foods Group Ltd.

      62,456        700  

PSG Group Ltd.

      42,735        681  

Rand Merchant Investment Holdings Ltd.

      312,087        905  

Redefine Properties Ltd.

      2,048,590        1,677  

Remgro Ltd.

      245,620        3,991  

Resilient REIT Ltd.

      131,015        1,091  

RMB Holdings Ltd.

      329,858        1,597  

Sanlam Ltd.

      667,774        3,055  

Sappi Ltd.*

      258,861        1,689  

Sasol Ltd.

      258,526        7,456  

Shoprite Holdings Ltd.

      204,324        2,550  

Sibanye Gold Ltd.

      354,402        635  

SPAR Group (The) Ltd.

      86,889        1,254  

Standard Bank Group Ltd.

      605,596        6,700  

Steinhoff International Holdings N.V.

      1,396,201        7,210  

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

 

   

South Africa - 6.9% continued

      

Telkom S.A. SOC Ltd.

      125,193      $ 674  

Tiger Brands Ltd.

      74,876        2,167  

Truworths International Ltd.

      209,744        1,210  

Tsogo Sun Holdings Ltd.

      170,627        342  

Vodacom Group Ltd.

      176,807        1,957  

Woolworths Holdings Ltd.

      456,372        2,347  
  

 

 

     

 

 

  
        128,677  
     

 

 

  

South Korea - 13.4%

      

Amorepacific Corp.

      14,994        3,987  

AMOREPACIFIC Group

      13,398        1,473  

BGF retail Co. Ltd.

      9,578        647  

BNK Financial Group, Inc.

      122,477        880  

Celltrion, Inc.*

      36,941        3,275  

Cheil Worldwide, Inc.

      34,566        450  

CJ CheilJedang Corp.

      3,710        1,096  

CJ Corp.

      6,858        1,060  

CJ E&M Corp.

      8,907        523  

CJ Korea Express Corp.*

      3,196        473  

Coway Co. Ltd.

      25,774        1,882  

Daelim Industrial Co. Ltd.

      13,075        941  

Daewoo Engineering & Construction Co. Ltd.*

      66,362        278  

DGB Financial Group, Inc.

      78,066        631  

Dongbu Insurance Co. Ltd.

      23,009        1,190  

Dongsuh Cos., Inc.

      16,640        379  

Doosan Heavy Industries & Construction Co. Ltd.

      21,468        482  

E-MART, Inc.

      9,405        1,423  

GS Engineering & Construction Corp.*

      22,832        500  

GS Holdings Corp.

      24,129        1,077  

GS Retail Co. Ltd.

      12,857        506  

Hana Financial Group, Inc.

      138,033        3,563  

Hankook Tire Co. Ltd.

      34,744        1,667  

Hanmi Pharm Co. Ltd.

      2,415        609  

Hanmi Science Co. Ltd.

      5,392        272  

Hanon Systems

      86,039        733  

Hanssem Co. Ltd.

      5,071        830  

Hanwha Chemical Corp.

      51,787        1,056  

Hanwha Corp.

      21,428        621  

Hanwha Life Insurance Co. Ltd.

      97,108        524  

Hanwha Techwin Co. Ltd.

      14,736        529  

Hotel Shilla Co. Ltd.

      16,175        644  

Hyosung Corp.

      9,771        1,175  

Hyundai Department Store Co. Ltd.

      7,044        635  

Hyundai Development Co. - Engineering & Construction

      27,303        1,014  

Hyundai Engineering & Construction Co. Ltd.

      33,598        1,182  

Hyundai Glovis Co. Ltd.

      8,786        1,121  

Hyundai Heavy Industries Co. Ltd.*

      20,012        2,402  

Hyundai Marine & Fire Insurance Co. Ltd.

      30,065        783  

Hyundai Mobis Co. Ltd.

      31,931        6,964  

Hyundai Motor Co.

      72,105        8,663  

Hyundai Steel Co.

      37,522        1,761  

Hyundai Wia Corp.

      7,729        466  

Industrial Bank of Korea

      121,466        1,275  

Kakao Corp.

      14,195        902  

Kangwon Land, Inc.

      56,441        1,670  

KB Financial Group, Inc.

      186,387        6,586  

KCC Corp.

      2,749        818  

KEPCO Plant Service & Engineering Co. Ltd.

      10,574        474  

Kia Motors Corp.

      122,502        3,975  

Korea Aerospace Industries Ltd.

      31,509        1,743  

Korea Electric Power Corp.

      119,964        4,384  

Korea Gas Corp.

      12,656        507  

Korea Investment Holdings Co. Ltd.

      18,082        627  

Korea Zinc Co. Ltd.

      4,078        1,602  

Korean Air Lines Co. Ltd.*

      17,712        400  

KT Corp.

      7,761        189  

KT Corp. ADR

      6,526        92  

KT&G Corp.

      54,570        4,561  

Kumho Petrochemical Co. Ltd.

      8,338        565  

LG Chem Ltd.

      21,694        4,678  

LG Corp.

      43,556        2,162  

LG Display Co. Ltd.

      107,602        2,778  

LG Electronics, Inc.

      50,948        2,167  

LG Household & Health Care Ltd.

      4,346        3,079  

LG Innotek Co. Ltd.

      6,566        478  

LG Uplus Corp.

      103,451        980  

Lotte Chemical Corp.

      7,092        2,154  

Lotte Chilsung Beverage Co. Ltd.

      273        330  

Lotte Confectionery Co. Ltd.

      2,686        396  

Lotte Shopping Co. Ltd.

      5,136        940  

Mirae Asset Daewoo Co. Ltd.

      185,922        1,113  

NAVER Corp.

      13,163        8,431  

 

NORTHERN FUNDS QUARTERLY REPORT     9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

      

South Korea - 13.4% continued

      

NCSoft Corp.

      8,406      $ 1,719  

NH Investment & Securities Co. Ltd.

      68,987        551  

OCI Co. Ltd.*

      7,779        505  

Orion Corp.

      1,680        909  

Ottogi Corp.

      588        322  

POSCO

      33,540        7,090  

POSCO ADR

      4,628        243  

Posco Daewoo Corp.

      21,620        482  

S-1 Corp.

      8,746        634  

Samsung Biologics Co. Ltd.*

      6,891        862  

Samsung C&T Corp.

      35,337        3,648  

Samsung Card Co. Ltd.

      16,535        543  

Samsung Electro-Mechanics Co. Ltd.

      25,977        1,091  

Samsung Electronics Co. Ltd.

      46,487        68,687  

Samsung Fire & Marine Insurance Co. Ltd.

      15,418        3,425  

Samsung Heavy Industries Co. Ltd.*

      119,317        911  

Samsung Life Insurance Co. Ltd.

      33,268        3,095  

Samsung SDI Co. Ltd.

      25,337        2,277  

Samsung SDS Co. Ltd.

      16,684        1,924  

Samsung Securities Co. Ltd.

      26,196        687  

Shinhan Financial Group Co. Ltd.

      200,263        7,509  

Shinsegae, Inc.

      3,578        521  

SK Holdings Co. Ltd.

      21,345        4,050  

SK Hynix, Inc.

      273,260        9,989  

SK Innovation Co. Ltd.

      30,157        3,637  

SK Networks Co. Ltd.

      63,789        364  

SK Telecom Co. Ltd.

      8,541        1,589  

SK Telecom Co. Ltd. ADR

      10,300        215  

S-Oil Corp.

      21,073        1,470  

Woori Bank*

      146,313        1,542  

Yuhan Corp.

      3,772        622  
  

 

 

     

 

 

  
        251,536  
     

 

 

  

Taiwan - 12.0%

      

Acer, Inc.*

      1,404,800        567  

Advanced Semiconductor Engineering, Inc.

      3,025,364        3,078  

Advantech Co. Ltd.

      148,234        1,163  

Asia Cement Corp.

      1,092,567        890  

Asia Pacific Telecom Co. Ltd.*

      1,028,000        330  

Asustek Computer, Inc.

      326,546        2,669  

AU Optronics Corp.

      4,072,215        1,478  

Casetek Holdings Ltd.

      69,000        182  

Catcher Technology Co. Ltd.

      313,111        2,151  

Cathay Financial Holding Co. Ltd.

      3,825,075        5,727  

Chailease Holding Co. Ltd.

      471,028        804  

Chang Hwa Commercial Bank Ltd.

      2,285,829        1,217  

Cheng Shin Rubber Industry Co. Ltd.

      933,184        1,754  

Chicony Electronics Co. Ltd.

      257,792        597  

China Airlines Ltd.

      1,147,307        330  

China Development Financial Holding Corp.

      6,178,868        1,541  

China Life Insurance Co. Ltd.

      1,627,650        1,613  

China Steel Corp.

      5,486,156        4,179  

Chunghwa Telecom Co. Ltd.

      1,781,493        5,620  

Compal Electronics, Inc.

      1,999,759        1,139  

CTBC Financial Holding Co. Ltd.

      8,208,878        4,484  

Delta Electronics, Inc.

      911,343        4,467  

E.Sun Financial Holding Co. Ltd.

      3,773,308        2,149  

Eclat Textile Co. Ltd.

      91,355        949  

Eva Airways Corp.

      958,406        433  

Evergreen Marine Corp. Taiwan Ltd.*

      803,752        276  

Far Eastern New Century Corp.

      1,550,789        1,161  

Far EasTone Telecommunications Co. Ltd.

      745,345        1,676  

Feng TAY Enterprise Co. Ltd.

      154,582        575  

First Financial Holding Co. Ltd.

      4,417,942        2,354  

Formosa Chemicals & Fibre Corp.

      1,508,499        4,491  

Formosa Petrochemical Corp.

      549,487        1,902  

Formosa Plastics Corp.

      1,938,682        5,349  

Formosa Taffeta Co. Ltd.

      358,827        328  

Foxconn Technology Co. Ltd.

      442,131        1,160  

Fubon Financial Holding Co. Ltd.

      3,116,025        4,937  

Giant Manufacturing Co. Ltd.

      129,483        734  

Highwealth Construction Corp.

      384,490        540  

Hiwin Technologies Corp.

      97,881        447  

Hon Hai Precision Industry Co. Ltd.

      7,255,596        18,796  

Hotai Motor Co. Ltd.

      118,900        1,357  

HTC Corp.*

      303,220        737  

Hua Nan Financial Holdings Co. Ltd.

      3,446,217        1,734  

Innolux Corp.

      4,177,900        1,496  

Inventec Corp.

      1,186,314        808  

Largan Precision Co. Ltd.

      46,835        5,450  

Lite-On Technology Corp.

      981,964        1,467  

MediaTek, Inc.

      698,334        4,658  

Mega Financial Holding Co. Ltd.

      5,071,543        3,618  

Merida Industry Co. Ltd.

      100,900        449  

 

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

      

Taiwan - 12.0% continued

      

Micro-Star International Co. Ltd.

      271,000      $ 613  

Nan Ya Plastics Corp.

      2,217,951        4,887  

Nanya Technology Corp.

      323,000        479  

Nien Made Enterprise Co. Ltd.

      70,000        717  

Novatek Microelectronics Corp.

      270,850        891  

OBI Pharma, Inc.*

      52,000        458  

Pegatron Corp.

      895,594        2,113  

Phison Electronics Corp.

      71,608        565  

Pou Chen Corp.

      1,040,093        1,291  

Powertech Technology, Inc.

      302,568        813  

President Chain Store Corp.

      268,220        1,919  

Quanta Computer, Inc.

      1,245,576        2,318  

Realtek Semiconductor Corp.

      208,457        655  

Ruentex Development Co. Ltd.*

      385,108        438  

Ruentex Industries Ltd.

      259,906        431  

Shin Kong Financial Holding Co. Ltd.*

      3,806,458        933  

Siliconware Precision Industries Co. Ltd.

      1,021,480        1,515  

SinoPac Financial Holdings Co. Ltd.

      4,883,948        1,374  

Standard Foods Corp.

      195,496        463  

Synnex Technology International Corp.

      668,940        672  

TaiMed Biologics, Inc.*

      72,000        370  

Taishin Financial Holding Co. Ltd.

      4,115,031        1,503  

Taiwan Business Bank

      1,715,937        433  

Taiwan Cement Corp.

      1,557,055        1,689  

Taiwan Cooperative Financial Holding Co. Ltd.

      3,595,111        1,565  

Taiwan Fertilizer Co. Ltd.

      327,000        407  

Taiwan Mobile Co. Ltd.

      759,076        2,447  

Taiwan Semiconductor Manufacturing Co. Ltd.

      11,555,584        64,712  

Teco Electric and Machinery Co. Ltd.

      878,000        757  

Transcend Information, Inc.

      96,442        254  

Uni-President Enterprises Corp.

      2,250,150        3,715  

United Microelectronics Corp.

      5,552,043        1,958  

Vanguard International Semiconductor Corp.

      410,000        711  

Wistron Corp.

      1,174,388        904  

WPG Holdings Ltd.

      680,316        799  

Ya Hsin Industrial Co. Ltd.* (4)

     121,548        —    

Yuanta Financial Holding Co. Ltd.

      4,613,814        1,712  

Yulon Motor Co. Ltd.

      413,257        343  

Zhen Ding Technology Holding Ltd.

      206,850        405  
  

 

 

     

 

 

  
        224,240  
     

 

 

  

Thailand - 2.3%

      

Advanced Info Service PCL (Registered)

      194,000        796  

Advanced Info Service PCL NVDR

      304,299        1,245  

Airports of Thailand PCL NVDR

      205,200        2,276  

Bangkok Bank PCL (Registered)

      118,000        530  

Bangkok Dusit Medical Services PCL NVDR

      1,799,000        1,158  

Bangkok Expressway & Metro PCL NVDR

      3,190,098        660  

Banpu PCL (Registered)

      233,500        125  

Banpu PCL NVDR

      476,820        254  

BEC World PCL (Registered)

      196,500        91  

BEC World PCL NVDR

      281,307        130  

Berli Jucker PCL NVDR

      482,900        674  

BTS Group Holdings PCL NVDR

      2,688,900        640  

Bumrungrad Hospital PCL NVDR

      165,787        836  

Central Pattana PCL NVDR

      640,000        1,011  

Charoen Pokphand Foods PCL NVDR

      1,261,257        1,034  

CP ALL PCL (Registered)

      905,200        1,580  

CP ALL PCL NVDR

      1,400,436        2,441  

Delta Electronics Thailand PCL NVDR

      237,900        539  

Electricity Generating PCL NVDR

      58,000        322  

Energy Absolute PCL NVDR

      505,600        419  

Glow Energy PCL (Registered)

      87,100        192  

Glow Energy PCL NVDR

      158,202        349  

Home Product Center PCL NVDR

      1,868,704        530  

Indorama Ventures PCL NVDR

      702,647        653  

IRPC PCL (Registered)

      1,860,900        250  

IRPC PCL NVDR

      2,820,481        377  

Kasikornbank PCL (Registered)

      191,500        946  

Kasikornbank PCL NVDR

      640,597        3,163  

KCE Electronics PCL NVDR

      98,400        335  

Krung Thai Bank PCL (Registered)

      699,750        346  

Krung Thai Bank PCL NVDR

      980,493        483  

Minor International PCL NVDR

      998,830        997  

PTT Exploration & Production PCL (Registered)

      242,500        652  

PTT Exploration & Production PCL NVDR

      425,943        1,143  

PTT Global Chemical PCL (Registered)

      189,814        334  

PTT Global Chemical PCL NVDR

      786,376        1,378  

PTT PCL (Registered)

      183,500        1,906  

PTT PCL NVDR

      284,400        2,947  

Robinson Department Store PCL NVDR

      234,900        415  

Siam Cement (The) PCL (Registered)

      51,000        705  

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.0%(1) continued

      

Thailand - 2.3% continued

      

Siam Cement (The) PCL NVDR

      142,098      $ 1,965  

Siam Commercial Bank (The) PCL (Registered)

      232,700        991  

Siam Commercial Bank (The) PCL NVDR

      573,476        2,432  

Thai Oil PCL (Registered)

      97,800        197  

Thai Oil PCL NVDR

      280,895        565  

Thai Union Group PCL NVDR

      892,200        524  

TMB Bank PCL NVDR

      5,939,500        348  

True Corp. PCL NVDR

      4,651,752        925  
  

 

 

     

 

 

  
        42,809  
     

 

 

  

Turkey - 1.0%

      

Akbank T.A.S.

      1,010,944        2,240  

Anadolu Efes Biracilik Ve Malt Sanayii A.S.

      96,329        481  

Arcelik A.S.

      110,785        665  

BIM Birlesik Magazalar A.S.

      102,073        1,417  

Coca-Cola Icecek A.S.

      36,652        344  

Dogan Sirketler Grubu Holding A.S.(3)

     1        —    

Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.

      885,379        751  

Enka Insaat ve Sanayi A.S.(3)

     1        —    

Eregli Demir ve Celik Fabrikalari T.A.S.

      678,270        986  

Ford Otomotiv Sanayi A.S.

      31,388        272  

Haci Omer Sabanci Holding A.S.

      442,293        1,148  

Is Gayrimenkul Yatirim Ortakligi A.S.(3)

     1        —    

KOC Holding A.S.

      298,105        1,166  

Petkim Petrokimya Holding A.S.

      326,607        342  

TAV Havalimanlari Holding A.S.

      70,764        281  

Tofas Turk Otomobil Fabrikasi A.S.

      57,218        400  

Tupras Turkiye Petrol Rafinerileri A.S.

      60,475        1,213  

Turk Hava Yollari A.O.*

      269,862        383  

Turk Telekomunikasyon A.S.

      213,458        319  

Turkcell Iletisim Hizmetleri A.S.*

      409,275        1,131  

Turkiye Garanti Bankasi A.S.

      1,062,299        2,297  

Turkiye Halk Bankasi A.S.

      288,262        764  

Turkiye Is Bankasi, Class C

      759,884        1,117  

Turkiye Sise ve Cam Fabrikalari A.S.

      338,508        367  

Turkiye Vakiflar Bankasi T.A.O., Class D

      344,866        426  

Ulker Biskuvi Sanayi A.S.

      75,256        345  

Yapi ve Kredi Bankasi A.S.*

      414,528        403  
  

 

 

     

 

 

  
        19,258  
     

 

 

  

United Arab Emirates - 0.8%

      

Abu Dhabi Commercial Bank PJSC

      917,892        1,721  

Aldar Properties PJSC

      1,520,155        1,089  

DP World Ltd.

      77,788        1,362  

Dubai Islamic Bank PJSC

      609,171        924  

DXB Entertainments PJSC*

      1,200,437        425  

Emaar Malls PJSC

      907,150        646  

Emaar Properties PJSC

      1,630,701        3,157  

Emirates Telecommunications Group Co. PJSC

      811,258        4,148  

First Gulf Bank PJSC

      421,061        1,473  

National Bank of Abu Dhabi PJSC

      330,493        898  
  

 

 

     

 

 

  
        15,843  
     

 

 

  

United States - 0.2%

      

Yum China Holdings, Inc.*

      189,991        4,963  
  

 

 

     

 

 

  

Total Common Stocks

(Cost $1,593,711)

         1,758,900  
     

 

 

  

PREFERRED STOCKS - 4.2%(1)

     

Brazil - 3.0%

      

Banco Bradesco S.A.*

      1,191,393        10,394  

Banco Bradesco S.A. ADR*

      106,841        931  

Braskem S.A., Class A

      74,041        785  

Centrais Eletricas Brasileiras S.A., Class B*

      107,341        851  

Cia Brasileira de Distribuicao

      75,842        1,256  

Cia Energetica de Minas Gerais

      349,847        799  

Cia Paranaense de Energia, Class B

      46,144        392  

Gerdau S.A.

      431,961        1,360  

Itau Unibanco Holding S.A.

      1,511,693        15,588  

Itausa - Investimentos Itau S.A.

      1,800,493        4,562  

Lojas Americanas S.A.

      271,830        1,412  

Petroleo Brasileiro S.A.*

      1,540,795        6,791  

Petroleo Brasileiro S.A. ADR*

      148,341        1,307  

Suzano Papel e Celulose S.A., Class A

      187,200        817  

Telefonica Brasil S.A.

      184,173        2,464  

Telefonica Brasil S.A. ADR

      22,109        296  

Vale S.A.*

      900,730        6,213  
  

 

 

     

 

 

  
        56,218  
     

 

 

  

 

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

PREFERRED STOCKS - 4.2%(1) continued

      

Chile - 0.1%

      

Embotelladora Andina S.A., Class B

      117,962      $ 439  

Sociedad Quimica y Minera de Chile S.A. ADR

      3,193        92  

Sociedad Quimica y Minera de Chile S.A., Class B

      41,488        1,182  
  

 

 

     

 

 

  
        1,713  
     

 

 

  

Colombia - 0.2%

      

Bancolombia S.A.

      188,295        1,724  

Bancolombia S.A. ADR

      6,452        237  

Grupo Aval Acciones y Valores S.A.

      1,647,469        659  

Grupo de Inversiones Suramericana S.A.

      46,376        571  
  

 

 

     

 

 

  
        3,191  
     

 

 

  

Russia - 0.2%

      

Surgutneftegas OJSC

      1,820,437        951  

Surgutneftegas OJSC ADR

      140,161        719  

Transneft PJSC

      724        2,337  
  

 

 

     

 

 

  
        4,007  
     

 

 

  

South Korea - 0.7%

      

Amorepacific Corp.

      4,133        701  

Hyundai Motor Co. Ltd.

      10,583        837  

Hyundai Motor Co. Ltd. (Korea Exchange)

      17,606        1,440  

LG Chem Ltd.

      3,638        540  

LG Household & Health Care Ltd.

      1,001        466  

Samsung Electronics Co. Ltd.

      8,269        9,724  
  

 

 

     

 

 

  
        13,708  
     

 

 

  

Total Preferred Stocks

(Cost $92,908)

         78,837  
     

 

 

  

RIGHTS - 0.0%

      

Qatar - 0.0%

      

Commercial Bank (The) QSC*

      13,436        16  
  

 

 

     

 

 

  

Total Rights

(Cost $ — )

         16  
     

 

 

  

INVESTMENT COMPANIES - 1.4%

      

iShares MSCI Emerging Markets ETF

      446,400        15,629  

Northern Institutional Funds - Government Assets Portfolio, 0.32%(5) (6)

      9,812,158        9,812  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $25,192)

         25,441  
     

 

 

  

Total Investments - 99.6%

(Cost $1,711,811)

         1,863,194  
     

 

 

  

Other Assets less Liabilities - 0.4%

         7,352  
     

 

 

  

NET ASSETS - 100.0%

       $ 1,870,546  
     

 

 

  

 

(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) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(3) Value rounds to less than one thousand.
(4) Level 3 asset that is worthless, bankrupt or has been delisted.
(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(6) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

FTSE/JSE Top 40 Index (South African Rand)

      28      $ 903        Long        3/17      $ (19 ) 

Hang Seng Index (Hong Kong Dollar)

      12        1,699        Long        1/17        32  

mini MSCI Emerging Markets Index (United States Dollar)

      356        15,288        Long        3/17        175  

 

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

MSCI Taiwan Index (United States Dollar)

      30      $ 1,031        Long        1/17      $ 17  

SGX CNX Nifty Index (United States Dollar)

      31        507        Long        1/17        10  

SPI 200 Index (Australian Dollar)

      2        203        Long        3/17        4  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

                $ 219  
              

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      10.2 % 

Consumer Staples

      7.1  

Energy

      7.8  

Financials

      25.1  

Health Care

      2.5  

Industrials

      5.7  

Information Technology

      23.1  

Materials

      7.3  

Real Estate

      2.6  

Telecommunication Services

      5.8  

Utilities

      2.8  
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Hong Kong Dollar

      20.6 % 

Korean Won

      14.3  

Taiwan Dollar

      12.1  

United States Dollar

      9.5  

Indian Rupee

      8.0  

Brazilian Real

      7.2  

South African Rand

      7.0  

All other currencies less than 5%

      21.3  
  

 

 

  

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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common stocks

            

Brazil

    $ 3,146      $ 80,735      $ —        $ 83,881  

China

      101,244        307,806        —          409,050  

Colombia

      51        5,247        —          5,298  

Czech Republic

      —          3,379        —          3,379  

Greece

      —          6,847        —          6,847  

Hong Kong

      —          73,537        —          73,537  

Hungary

      —          5,796        —          5,796  

India

      3,852        149,620        —          153,472  

Indonesia

      —          48,421        —          48,421  

Malaysia

      —          46,555        —          46,555  

Philippines

      —          22,372        —          22,372  

Poland

      7,261        13,692        —          20,953  

Qatar

      —          16,356        —          16,356  

Romania

      —          1,312        —          1,312  

Russia

      4,643        74,158        —          78,801  

South Africa

      —          128,677        —          128,677  

South Korea

      1,412        250,124        —          251,536  

Taiwan

      —          224,240        —          224,240  

Thailand

      —          42,809        —          42,809  

Turkey

      —          19,258        —          19,258  

United Arab Emirates

      5,272        10,571        —          15,843  

All Other Countries(1)

     100,507        —          —          100,507  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      227,388        1,531,512        —          1,758,900  
  

 

 

     

 

 

     

 

 

     

 

 

  

Preferred Stocks

            

Brazil

      2,533        53,685        —          56,218  

Chile

      1,713        —          —          1,713  

Colombia

      237        2,954        —          3,191  

Russia

      719        3,288        —          4,007  

South Korea

      —          13,708        —          13,708  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Preferred Stocks

      5,202        73,635        —          78,837  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Rights(1)

   $ —       $ 16      $ —        $ 16  

Investment Companies

      25,441       —          —          25,441  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 258,031     $ 1,605,163      $ —        $ 1,863,194  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Assets

           

Futures Contracts

    $ 238     $ —        $ —        $ 238  

Liabilities

           

Futures Contracts

      (19 )      —          —          (19 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Other Financial Instruments

    $ 219     $ —        $ —        $ 219  
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, the Fund had transfers from Level 1 to Level 2 as disclosed below:

Transfers from Level 1 to Level 2

 

     Value
(000S)		    

Reason

Common Stocks

     

Brazil

    $ 78,135     Valuations at official close price with foreign fair value adjustment

Colombia

      4,756     Valuations at official close price with foreign fair value adjustment

South Africa

      —   *    Valuations at official close price with foreign fair value adjustment

Preferred Stocks

     

Brazil

      53,685     Valuations at official close price with foreign fair value adjustment

Colombia

      2,954     Valuations at official close price with foreign fair value adjustment
  

 

 

    

Total

    $ 139,530    
  

 

 

    

 

* Amount rounds to less than one thousand.

At December 31, 2016, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

 

     Value
(000s)		     

Reason

Common Stocks

      

Chile

    $ 840      Valuations at official close price

China

      618      Valuations at official close price

Egypt

      2,002      Valuations at official close price

Poland

      6,956      Valuations at official close price

United Arab Emirates

      4,848      Valuations at official close price
  

 

 

     

Total

    $ 15,264     
  

 

 

     

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,753,861  
  

 

 

  

Gross tax appreciation of investments

    $ 344,742  

Gross tax depreciation of investments

      (235,409 ) 
  

 

 

  

Net tax appreciation of investments

    $ 109,333  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 5,265      $ 360,743      $ 356,196      $ 38      $ 9,812  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

GLOBAL REAL ESTATE INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1)

     

Australia - 5.2%

      

BGP Holdings PLC* (2)

     6,535,576      $ —    

BWP Trust

      598,916        1,291  

Charter Hall Retail REIT

      412,291        1,258  

Cromwell Property Group

      1,789,144        1,271  

Dexus Property Group

      1,175,084        8,179  

Goodman Group

      2,152,631        11,106  

GPT Group (The)

      2,172,435        7,878  

Investa Office Fund

      683,233        2,330  

Mirvac Group

      4,479,710        6,876  

Scentre Group

      6,188,187        20,770  

Shopping Centres Australasia Property Group

      896,995        1,433  

Stockland

      2,895,425        9,561  

Vicinity Centres

      3,977,175        8,603  

Westfield Corp.

      2,339,673        15,879  
  

 

 

     

 

 

  
        96,435  
     

 

 

  

Austria - 0.3%

      

BUWOG A.G.*

      109,554        2,548  

CA Immobilien Anlagen A.G.*

      85,032        1,563  

Conwert Immobilien Invest S.E.*

      85,495        1,460  
  

 

 

     

 

 

  
        5,571  
     

 

 

  

Belgium - 0.4%

      

Aedifica S.A.

      15,379        1,150  

Befimmo S.A.

      23,434        1,316  

Cofinimmo S.A.

      24,426        2,793  

Intervest Offices & Warehouses N.V.

      18,442        464  

Leasinvest Real Estate S.C.A.

      2,442        271  

Warehouses De Pauw - CVA

      19,696        1,760  

Wereldhave Belgium N.V.

      2,743        311  
  

 

 

     

 

 

  
        8,065  
     

 

 

  

Brazil - 0.5%

      

Aliansce Shopping Centers S.A.

      123,803        547  

BR Malls Participacoes S.A.

      689,103        2,517  

BR Properties S.A.

      113,752        263  

Cyrela Brazil Realty S.A. Empreendimentos e Participacoes

      329,485        1,033  

Direcional Engenharia S.A.

      93,430        130  

Even Construtora e Incorporadora S.A.

      215,769        244  

Ez Tec Empreendimentos e Participacoes S.A.

      71,665        343  

Gafisa S.A.

      464,658        259  

Helbor Empreendimentos S.A.

      172,297        82  

Iguatemi Empresa de Shopping Centers S.A.

      73,903        603  

JHSF Participacoes S.A.*

      134,916        58  

MRV Engenharia e Participacoes S.A.

      337,712        1,130  

Multiplan Empreendimentos Imobiliarios S.A.

      92,497        1,682  

PDG Realty S.A. Empreendimentos e Participacoes*

      63,400        23  

Rodobens Negocios Imobiliarios S.A.

      28,773        48  

Sonae Sierra Brasil S.A.

      34,415        182  

Tecnisa S.A.

      156,495        104  
  

 

 

     

 

 

  
        9,248  
     

 

 

  

Canada - 2.5%

      

Allied Properties Real Estate Investment Trust

      102,167        2,735  

Artis Real Estate Investment Trust

      178,252        1,686  

Boardwalk Real Estate Investment Trust

      45,641        1,654  

Canadian Apartment Properties REIT

      163,866        3,829  

Canadian Real Estate Investment Trust

      88,730        3,060  

Chartwell Retirement Residences

      230,730        2,517  

Cominar Real Estate Investment Trust

      217,845        2,388  

Crombie Real Estate Investment Trust

      107,668        1,089  

Dream Global Real Estate Investment Trust

      152,447        1,073  

Dream Office Real Estate Investment Trust

      130,976        1,907  

First Capital Realty, Inc.

      116,383        1,792  

Granite Real Estate Investment Trust

      57,137        1,908  

H&R Real Estate Investment Trust

      344,437        5,739  

Killam Apartment Real Estate Investment Trust

      81,576        725  

Northview Apartment Real Estate Investment Trust

      61,592        921  

Pure Industrial Real Estate Trust

      298,399        1,242  

RioCan Real Estate Investment Trust

      393,815        7,811  

Smart Real Estate Investment Trust

      134,187        3,227  
  

 

 

     

 

 

  
        45,303  
     

 

 

  

Chile - 0.1%

      

Parque Arauco S.A.

      669,748        1,529  
  

 

 

     

 

 

  

China - 1.5%

      

Agile Group Holdings Ltd.

      1,723,226        877  

Beijing Capital Land Ltd., Class H

      1,288,000        482  

Beijing North Star Co. Ltd., Class H

      899,662        275  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1) continued

      

China - 1.5% continued

      

China Aoyuan Property Group Ltd.

      1,605,000      $ 368  

China Electronics Optics Valley Union Holding Co. Ltd.*

      3,772,000        400  

China Evergrande Group

      4,286,000        2,663  

China SCE Property Holdings Ltd.

      1,461,000        439  

China Vanke Co. Ltd., Class H

      1,591,841        3,599  

CIFI Holdings Group Co. Ltd.

      3,286,882        882  

Country Garden Holdings Co. Ltd.

      8,621,181        4,801  

Fantasia Holdings Group Co. Ltd.*

      2,086,500        265  

Greentown China Holdings Ltd.*

      945,500        762  

Guangzhou R&F Properties Co. Ltd., Class H

      1,158,602        1,400  

Hydoo International Holding Ltd.

      1,308,000        98  

KWG Property Holding Ltd.

      1,481,094        838  

Logan Property Holdings Co. Ltd.

      1,294,000        490  

Longfor Properties Co. Ltd.

      1,777,000        2,248  

Powerlong Real Estate Holdings Ltd.

      1,614,000        475  

Redco Properties Group Ltd.* (3)

     1,056,000        429  

Ronshine China Holdings Ltd.*

      419,500        304  

Shui On Land Ltd.

      4,037,777        870  

Sino-Ocean Group Holding Ltd.

      3,532,828        1,575  

SOHO China Ltd.

      2,252,256        1,107  

Sunac China Holdings Ltd.

      2,191,050        1,824  

Yuzhou Properties Co. Ltd.

      1,471,000        511  
  

 

 

     

 

 

  
        27,982  
     

 

 

  

Egypt - 0.0%

      

Emaar Misr for Development S.A.E.*

      719,915        115  

Six of October Development & Investment*

      295,544        246  
  

 

 

     

 

 

  
        361  
     

 

 

  

Finland - 0.2%

      

Citycon OYJ

      480,492        1,183  

Sponda OYJ

      295,546        1,361  

Technopolis OYJ

      173,363        570  
  

 

 

     

 

 

  
        3,114  
     

 

 

  

France - 2.9%

      

Affine S.A.

      9,197        145  

ANF Immobilier

      8,495        181  

Fonciere Des Regions

      44,301        3,864  

Gecina S.A.

      48,484        6,703  

ICADE

      42,763        3,051  

Klepierre

      248,667        9,767  

Mercialys S.A.

      50,841        1,030  

Unibail-Rodamco S.E.

      119,256        28,428  
  

 

 

     

 

 

  
        53,169  
     

 

 

  

Germany - 2.7%

      

ADLER Real Estate A.G.*

      29,204        445  

ADO Properties S.A.(3)

     36,035        1,213  

alstria office REIT-A.G.*

      158,439        1,988  

Deutsche EuroShop A.G.

      55,230        2,249  

Deutsche Wohnen A.G. (Bearer)

      407,850        12,790  

DIC Asset A.G.

      53,814        515  

Grand City Properties S.A.

      122,245        2,220  

Hamborner REIT A.G.

      94,225        895  

LEG Immobilien A.G.*

      76,013        5,897  

TAG Immobilien A.G.

      171,900        2,260  

TLG Immobilien A.G.

      68,098        1,281  

Vonovia S.E.

      564,295        18,381  

WCM Beteiligungs & Grundbesitz-A.G.*

      95,503        263  
  

 

 

     

 

 

  
        50,397  
     

 

 

  

Greece - 0.0%

      

Grivalia Properties REIC A.E.

      47,695        385  
  

 

 

     

 

 

  

Hong Kong - 7.9%

      

C C Land Holdings Ltd.

      1,622,000        471  

Champion REIT

      2,857,846        1,545  

Cheung Kong Property Holdings Ltd.

      3,411,500        20,688  

China Jinmao Holdings Group Ltd.

      5,972,000        1,604  

China Merchants Land Ltd.

      1,504,000        215  

China Overseas Grand Oceans Group Ltd.*

      938,000        303  

China Overseas Land & Investment Ltd.

      4,640,542        12,240  

China Resources Land Ltd.

      3,270,155        7,373  

Gemdale Properties & Investment Corp. Ltd.

      6,346,000        388  

Glorious Property Holdings Ltd.*

      3,161,100        310  

Hang Lung Properties Ltd.

      2,430,452        5,089  

Henderson Land Development Co. Ltd.

      1,362,732        7,194  

Hongkong Land Holdings Ltd.

      1,421,018        8,968  

Hopson Development Holdings Ltd.

      772,000        685  

Hui Xian Real Estate Investment Trust

      2,325,891        1,051  

Hui Xian Real Estate Investment Trust (Hong Kong Exchange)

      251,515        114  

Hysan Development Co. Ltd.

      748,045        3,084  

 

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1) continued

      

Hong Kong - 7.9% continued

      

Jiayuan International Group Ltd.*

      572,000      $ 251  

K Wah International Holdings Ltd.

      1,449,316        666  

Kerry Properties Ltd.

      716,599        1,931  

Link REIT

      2,727,300        17,612  

LVGEM China Real Estate Investment Co. Ltd.

      1,236,000        381  

Minmetals Land Ltd.

      1,620,000        193  

New World Development Co. Ltd.

      6,363,733        6,670  

Poly Property Group Co. Ltd.*

      2,246,000        742  

Road King Infrastructure Ltd.

      323,000        268  

Shanghai Industrial Urban Development Group Ltd.

      1,626,000        395  

Shenzhen Investment Ltd.

      3,679,929        1,465  

Shimao Property Holdings Ltd.

      1,502,369        1,958  

Sino Land Co. Ltd.

      3,732,088        5,524  

Sinolink Worldwide Holdings Ltd.*

      2,404,000        272  

Spring Real Estate Investment Trust

      797,000        331  

Sun Hung Kai Properties Ltd.

      1,704,425        21,340  

Swire Properties Ltd.

      1,415,800        3,879  

Wharf Holdings (The) Ltd.

      1,466,317        9,636  

Yuexiu Property Co. Ltd.

      7,449,442        1,015  

Yuexiu Real Estate Investment Trust

      1,329,000        700  
  

 

 

     

 

 

  
        146,551  
     

 

 

  

India - 0.1%

      

DLF Ltd.

      525,362        863  

Oberoi Realty Ltd.

      103,990        451  

Prestige Estates Projects Ltd.

      137,973        345  

Unitech Ltd.*

      2,037,195        119  
  

 

 

     

 

 

  
        1,778  
     

 

 

  

Indonesia - 0.3%

      

Agung Podomoro Land Tbk PT*

      9,268,196        144  

Alam Sutera Realty Tbk PT*

      14,136,940        368  

Bumi Serpong Damai Tbk PT

      9,438,300        1,224  

Ciputra Development Tbk PT

      13,124,336        1,300  

Intiland Development Tbk PT

      6,173,600        229  

Kawasan Industri Jababeka Tbk PT*

      19,804,763        430  

Pakuwon Jati Tbk PT

      27,538,340        1,150  

Summarecon Agung Tbk PT

      12,982,500        1,272  
  

 

 

     

 

 

  
        6,117  
     

 

 

  

Ireland - 0.2%

      

Green REIT PLC

      828,345        1,195  

Hibernia REIT PLC

      817,413        1,062  

Irish Residential Properties REIT PLC

      437,510        539  
  

 

 

     

 

 

  
        2,796  
     

 

 

  

Israel - 0.1%

      

Azrieli Group Ltd.

      52,651        2,279  
  

 

 

     

 

 

  

Italy - 0.1%

      

Beni Stabili S.p.A. SIIQ*

      1,261,832        721  

Immobiliare Grande Distribuzione SIIQ S.p.A.

      468,137        357  
  

 

 

     

 

 

  
        1,078  
     

 

 

  

Japan - 9.8%

      

Activia Properties, Inc.

      720        3,395  

Advance Residence Investment Corp.

      1,522        4,024  

Aeon Mall Co. Ltd.

      143,366        2,012  

AEON REIT Investment Corp.

      1,227        1,342  

Daiwa House REIT Investment Corp.

      1,603        4,054  

Daiwa Office Investment Corp.

      342        1,725  

Frontier Real Estate Investment Corp.

      537        2,295  

Fukuoka REIT Corp.

      763        1,207  

GLP J-REIT

      2,942        3,389  

Hulic Co. Ltd.

      431,440        3,827  

Hulic REIT, Inc.

      1,106        1,854  

Industrial & Infrastructure Fund Investment Corp.

      388        1,847  

Invincible Investment Corp.

      3,539        1,588  

Japan Excellent, Inc.

      1,420        1,802  

Japan Hotel REIT Investment Corp.

      4,545        3,052  

Japan Logistics Fund, Inc.

      1,004        2,114  

Japan Prime Realty Investment Corp.

      974        3,837  

Japan Real Estate Investment Corp.

      1,491        8,131  

Japan Rental Housing Investments, Inc.

      1,808        1,213  

Japan Retail Fund Investment Corp.

      3,093        6,264  

Kenedix Office Investment Corp.

      432        2,481  

Kenedix Retail REIT Corp.

      494        1,124  

Mitsubishi Estate Co. Ltd.

      1,431,480        28,376  

Mitsui Fudosan Co. Ltd.

      1,148,562        26,503  

Mori Hills REIT Investment Corp.

      1,745        2,359  

Mori Trust Sogo REIT, Inc.

      1,187        1,875  

Nippon Accommodations Fund, Inc.

      537        2,349  

Nippon Building Fund, Inc.

      1,540        8,533  

Nippon Prologis REIT, Inc.

      1,876        3,835  

Nomura Real Estate Holdings, Inc.

      144,800        2,458  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1) continued

 

Japan - 9.8% continued

      

Nomura Real Estate Master Fund, Inc.

      4,812      $ 7,278  

NTT Urban Development Corp.

      132,800        1,165  

Orix JREIT, Inc.

      2,940        4,640  

Premier Investment Corp.

      1,520        1,797  

Sekisui House Reit, Inc.

      984        1,260  

Sekisui House SI Residential Investment Corp.

      1,312        1,461  

Sumitomo Realty & Development Co. Ltd.

      524,425        13,896  

Tokyo Tatemono Co. Ltd.

      249,300        3,326  

Tokyu REIT, Inc.

      1,066        1,351  

United Urban Investment Corp.

      3,402        5,178  
  

 

 

     

 

 

  
        180,217  
     

 

 

  

Malaysia - 0.3%

      

Eastern & Oriental Bhd.

      963,353        312  

Eco World Development Group Bhd.*

      1,096,800        327  

IGB Real Estate Investment Trust

      2,019,600        725  

IOI Properties Group Bhd.

      2,146,000        1,004  

KLCCP Stapled Group

      554,948        1,026  

KSL Holdings Bhd.*

      592,120        133  

Mah Sing Group Bhd.

      1,948,420        621  

Malaysian Resources Corp. Bhd.

      1,293,200        382  

Pavilion Real Estate Investment Trust

      1,074,400        455  

Sunway Real Estate Investment Trust

      2,043,900        784  

UEM Sunrise Bhd.

      1,986,200        464  
  

 

 

     

 

 

  
        6,233  
     

 

 

  

Mexico - 0.4%

      

Concentradora Fibra Danhos S.A. de C.V.

      270,153        409  

Concentradora Fibra Hotelera Mexicana S.A. de C.V.

      505,500        342  

Consorcio ARA S.A.B. de C.V.

      856,261        267  

Corp. Inmobiliaria Vesta S.A.B. de C.V.

      640,200        769  

Fibra Uno Administracion S.A. de C.V.

      3,110,609        4,754  

Macquarie Mexico Real Estate Management S.A. de C.V.*

      1,010,789        1,045  

Prologis Property Mexico S.A. de C.V.

      379,400        543  

Urbi Desarrollos Urbanos S.A.B. de C.V.* (4)

     777        —    
  

 

 

     

 

 

  
        8,129  
     

 

 

  

Netherlands - 0.3%

      

Eurocommercial Properties N.V. - CVA

      53,155        2,046  

NSI N.V.

      168,540        636  

Vastned Retail N.V.

      23,366        907  

Wereldhave N.V.

      48,675        2,189  
  

 

 

     

 

 

  
        5,778  
     

 

 

  

New Zealand - 0.1%

      

Kiwi Property Group Ltd.

      1,541,526        1,481  
  

 

 

     

 

 

  

Norway - 0.1%

      

Entra ASA(3)

     110,860        1,101  

Norwegian Property ASA

      209,145        242  
  

 

 

     

 

 

  
        1,343  
     

 

 

  

Philippines - 0.7%

      

Ayala Land, Inc.

      6,214,851        3,996  

DoubleDragon Properties Corp.*

      712,200        550  

Filinvest Land, Inc.

      11,594,989        358  

Megaworld Corp.

      14,293,801        1,024  

Robinsons Land Corp.

      1,976,775        1,033  

SM Prime Holdings, Inc.

      11,185,053        6,366  
  

 

 

     

 

 

  
        13,327  
     

 

 

  

Singapore - 2.6%

      

Ascendas India Trust

      844,800        591  

Ascendas Real Estate Investment Trust

      2,820,653        4,407  

Ascott Residence Trust

      974,000        760  

CapitaLand Commercial Trust

      2,425,214        2,465  

CapitaLand Ltd.

      3,070,815        6,379  

CapitaLand Mall Trust

      3,215,715        4,169  

CapitaLand Retail China Trust

      635,609        602  

CDL Hospitality Trusts

      771,410        713  

City Developments Ltd.

      715,200        4,074  

First Real Estate Investment Trust

      622,651        543  

Fortune Real Estate Investment Trust

      1,587,920        1,822  

Global Logistic Properties Ltd.

      3,574,793        5,416  

Keppel REIT

      2,299,420        1,617  

Lippo Malls Indonesia Retail Trust

      2,434,900        621  

Mapletree Commercial Trust

      2,316,002        2,228  

Mapletree Greater China Commercial Trust

      2,263,800        1,481  

Mapletree Industrial Trust

      1,507,707        1,711  

Mapletree Logistics Trust

      1,802,774        1,266  

Suntec Real Estate Investment Trust

      2,923,591        3,315  

UOL Group Ltd.

      575,281        2,370  

Yanlord Land Group Ltd.

      814,500        742  
  

 

 

     

 

 

  
        47,292  
     

 

 

  

 

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1) continued

      

South Africa - 1.2%

      

Arrowhead Properties Ltd.

      1,167,421      $ 739  

Attacq Ltd.*

      752,488        927  

Balwin Properties Ltd.

      318,055        173  

Delta Property Fund Ltd.

      619,126        352  

Emira Property Fund Ltd.

      472,949        490  

Growthpoint Properties Ltd.

      3,288,431        6,224  

Hyprop Investments Ltd.

      300,544        2,557  

Rebosis Property Fund Ltd.

      585,906        492  

Redefine Properties Ltd.

      5,514,064        4,513  

Resilient REIT Ltd.

      328,835        2,739  

SA Corporate Real Estate Ltd.

      2,979,709        1,216  

Vukile Property Fund Ltd.

      764,443        1,037  
  

 

 

     

 

 

  
        21,459  
     

 

 

  

Spain - 0.5%

      

Axiare Patrimonio SOCIMI S.A.

      69,923        1,017  

Hispania Activos Inmobiliarios SOCIMI S.A.

      106,894        1,258  

Inmobiliaria Colonial S.A.

      285,062        1,977  

Lar Espana Real Estate Socimi S.A.

      106,476        788  

Merlin Properties Socimi S.A.

      393,565        4,288  
  

 

 

     

 

 

  
        9,328  
     

 

 

  

Sweden - 1.1%

      

Castellum AB

      319,983        4,385  

D Carnegie & Co. AB*

      56,230        673  

Dios Fastigheter AB

      56,108        370  

Fabege AB

      159,765        2,608  

Fastighets AB Balder, Class B*

      113,354        2,287  

Hemfosa Fastigheter AB

      112,580        1,049  

Hufvudstaden AB, Class A

      133,312        2,102  

Klovern AB, Class B

      685,992        718  

Kungsleden AB

      187,722        1,188  

Pandox AB

      64,791        1,005  

Wallenstam AB, Class B

      238,185        1,851  

Wihlborgs Fastigheter AB

      79,632        1,479  
  

 

 

     

 

 

  
        19,715  
     

 

 

  

Switzerland - 0.8%

      

Allreal Holding A.G. (Registered)*

      11,532        1,713  

Mobimo Holding A.G. (Registered)*

      7,463        1,867  

PSP Swiss Property A.G. (Registered)

      48,211        4,166  

Swiss Prime Site A.G. (Registered)*

      78,779        6,447  
  

 

 

     

 

 

  
        14,193  
     

 

 

  

Taiwan - 0.0%

      

Hung Poo Real Estate Development Corp.

      247,585        198  
  

 

 

     

 

 

  

Thailand - 0.5%

      

Amata Corp. PCL (Registered)

      141,686        45  

Amata Corp. PCL NVDR

      850,071        272  

AP Thailand PCL (Registered)

      441,405        92  

AP Thailand PCL NVDR

      2,408,604        504  

Central Pattana PCL (Registered)

      825,726        1,309  

Central Pattana PCL NVDR

      2,155,698        3,403  

LPN Development PCL (Registered)

      8,475        3  

LPN Development PCL NVDR

      1,171,801        397  

Property Perfect PCL (Registered)

      3,686,802        93  

Property Perfect PCL NVDR

      4,602,926        116  

Pruksa Holding PCL NVDR

      835,000        525  

Quality Houses PCL NVDR

      7,480,466        537  

Sansiri PCL NVDR

      11,407,766        527  

SC Asset Corp. PCL (Registered)

      747,984        71  

SC Asset Corp. PCL NVDR

      1,198,624        114  

Siam Future Development PCL NVDR

      1,253,194        215  

Supalai PCL (Registered)

      224,356        157  

Supalai PCL NVDR

      980,800        683  

TICON Industrial Connection PCL NVDR

      623,505        288  

WHA Corp. PCL NVDR*

      4,500,000        370  
  

 

 

     

 

 

  
        9,721  
     

 

 

  

Turkey - 0.1%

      

Dogus Gayrimenkul Yatirim Ortakligi A.S.*

      54,149        66  

Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.

      2,340,334        1,985  

Is Gayrimenkul Yatirim Ortakligi A.S.

      462,064        204  

Saf Gayrimenkul Yatirim Ortakligi A.S.

      445,722        107  

Torunlar Gayrimenkul Yatirim Ortakligi A.S.

      87,311        103  
  

 

 

     

 

 

  
        2,465  
     

 

 

  

United Arab Emirates - 0.3%

      

Aldar Properties PJSC

      3,797,007        2,719  

Emaar Malls PJSC

      2,557,346        1,821  

RAK Properties PJSC

      1,133,104        203  
  

 

 

     

 

 

  
        4,743  
     

 

 

  

United Kingdom - 4.0%

      

Assura PLC

      1,975,387        1,394  

Big Yellow Group PLC

      170,176        1,444  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1) continued

      

United Kingdom - 4.0% continued

      

British Land (The) Co. PLC

      1,240,309       $ 9,611   

Capital & Counties Properties PLC

      890,330         3,254   

Capital & Regional PLC

      675,327         457   

Daejan Holdings PLC

      6,044         460   

Derwent London PLC

      120,633         4,116   

Empiric Student Property PLC

      591,541         772   

F&C UK Real Estate Investment Ltd.

      274,873         335   

Grainger PLC

      500,806         1,468   

Great Portland Estates PLC

      416,611         3,426   

Hammerson PLC

      960,683         6,769   

Hansteen Holdings PLC

      894,512         1,250   

Helical PLC

      117,561         427   

Intu Properties PLC

      1,054,135         3,662   

Kennedy Wilson Europe Real Estate PLC

      122,264         1,445   

Land Securities Group PLC

      952,648         12,585   

LondonMetric Property PLC

      700,658         1,338   

NewRiver REIT PLC

      286,609         1,209   

Primary Health Properties PLC

      701,310         957   

Redefine International PLC

      1,452,719         701   

Regional REIT Ltd.(3)

     278,070         369   

Safestore Holdings PLC

      255,998         1,101   

Schroder Real Estate Investment Trust Ltd.

      643,618         452   

Segro PLC

      1,003,631         5,680   

Shaftesbury PLC

      289,017         3,232   

Standard Life Investment Property Income Trust Ltd.

      470,953         502   

Target Healthcare REIT Ltd.

      279,829         389   

Tritax Big Box REIT PLC

      1,338,251         2,299   

UNITE Group (The) PLC

      267,231         1,998   

Workspace Group PLC

      140,214         1,364   
  

 

 

     

 

 

  
        74,466   
     

 

 

  

United States - 49.2%

      

Acadia Realty Trust

      96,981         3,169   

Agree Realty Corp.

      29,820         1,373   

Alexander’s, Inc.

      2,457         1,049   

Alexandria Real Estate Equities, Inc.

      96,153         10,685   

American Assets Trust, Inc.

      47,204         2,034   

American Campus Communities, Inc.

      159,971         7,962   

American Homes 4 Rent, Class A

      270,478         5,675   

Apartment Investment & Management Co., Class A

      189,176         8,598   

Apple Hospitality REIT, Inc.

      257,000         5,135   

Ashford Hospitality Trust, Inc.

      111,616         866   

AvalonBay Communities, Inc.

      165,747         29,362   

Boston Properties, Inc.

      185,709         23,358   

Brandywine Realty Trust

      212,125         3,502   

Brixmor Property Group, Inc.

      368,444         8,997   

Camden Property Trust

      105,806         8,895   

Care Capital Properties, Inc.

      101,249         2,531   

CareTrust REIT, Inc.

      75,100         1,151   

CBL & Associates Properties, Inc.

      203,802         2,344   

Cedar Realty Trust, Inc.

      102,918         672   

Chatham Lodging Trust

      45,137         928   

Chesapeake Lodging Trust

      73,042         1,889   

Colony Starwood Homes

      58,800         1,694   

Columbia Property Trust, Inc.

      149,400         3,227   

Corporate Office Properties Trust

      114,521         3,575   

Cousins Properties, Inc.

      412,901         3,514   

CubeSmart

      217,962         5,835   

DCT Industrial Trust, Inc.

      110,281         5,280   

DDR Corp.

      376,022         5,742   

DiamondRock Hospitality Co.

      242,108         2,792   

Digital Realty Trust, Inc.

      192,909         18,955   

Douglas Emmett, Inc.

      170,049         6,217   

Duke Realty Corp.

      429,471         11,407   

DuPont Fabros Technology, Inc.

      91,497         4,019   

EastGroup Properties, Inc.

      39,718         2,933   

Education Realty Trust, Inc.

      88,456         3,742   

Empire State Realty Trust, Inc., Class A

      147,719         2,982   

EPR Properties

      76,403         5,483   

Equity Commonwealth* (2)

      75,000         —     

Equity Commonwealth (New York Exchange)*

      153,035         4,628   

Equity LifeStyle Properties, Inc.

      93,921         6,772   

Equity One, Inc.

      113,092         3,471   

Equity Residential

      436,364         28,084   

Essex Property Trust, Inc.

      79,417         18,464   

Extra Space Storage, Inc.

      142,544         11,010   

Federal Realty Investment Trust

      86,888         12,348   

FelCor Lodging Trust, Inc.

      168,212         1,347   

First Industrial Realty Trust, Inc.

      141,450         3,968   

First Potomac Realty Trust

      71,046         779   

Forest City Realty Trust, Inc., Class A

      284,497         5,929   

Four Corners Property Trust, Inc.

      72,500         1,488   

Franklin Street Properties Corp.

      118,880         1,541   

Gaming and Leisure Properties, Inc.

      248,386         7,606   

 

EQUITY INDEX FUNDS     6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1) continued

  

United States - 49.2% continued

      

General Growth Properties, Inc.

      609,987       $ 15,237   

Getty Realty Corp.

      31,298         798   

Government Properties Income Trust

      87,121         1,661   

Gramercy Property Trust

      507,522         4,659   

HCP, Inc.

      563,065         16,734   

Healthcare Realty Trust, Inc.

      140,240         4,252   

Healthcare Trust of America, Inc., Class A

      171,509         4,993   

Hersha Hospitality Trust

      42,703         918   

Highwoods Properties, Inc.

      121,318         6,188   

Hospitality Properties Trust

      198,878         6,312   

Host Hotels & Resorts, Inc.

      904,906         17,048   

Hudson Pacific Properties, Inc.

      151,040         5,253   

Investors Real Estate Trust

      146,397         1,044   

Kilroy Realty Corp.

      111,673         8,177   

Kimco Realty Corp.

      514,600         12,947   

Kite Realty Group Trust

      98,981         2,324   

LaSalle Hotel Properties

      136,593         4,162   

Lexington Realty Trust

      284,891         3,077   

Liberty Property Trust

      178,935         7,068   

Life Storage, Inc.

      56,171         4,789   

LTC Properties, Inc.

      47,473         2,230   

Macerich (The) Co.

      173,957         12,323   

Mack-Cali Realty Corp.

      107,680         3,125   

Medical Properties Trust, Inc.

      387,703         4,769   

Mid-America Apartment Communities, Inc.

      137,063         13,421   

Milestone Apartments Real Estate Investment Trust

      95,958         1,358   

Monmouth Real Estate Investment Corp.

      80,300         1,224   

Monogram Residential Trust, Inc.

      202,300         2,189   

National Health Investors, Inc.

      44,360         3,290   

National Retail Properties, Inc.

      178,027         7,869   

New Senior Investment Group, Inc.

      96,900         949   

New York REIT, Inc.

      200,736         2,031   

Omega Healthcare Investors, Inc.

      208,394         6,514   

Paramount Group, Inc.

      180,696         2,889   

Parkway, Inc.*

      52,362         1,165   

Pebblebrook Hotel Trust

      86,944         2,587   

Pennsylvania Real Estate Investment Trust

      80,266         1,522   

Physicians Realty Trust

      162,990         3,090   

Piedmont Office Realty Trust, Inc., Class A

      176,185         3,684   

Prologis, Inc.

      634,586         33,500   

PS Business Parks, Inc.

      24,473         2,852   

Public Storage

      175,627         39,253   

QTS Realty Trust, Inc., Class A

      54,717         2,717   

Quality Care Properties, Inc.*

      111,893         1,734   

Ramco-Gershenson Properties Trust

      94,761         1,571   

Realty Income Corp.

      311,917         17,929   

Regency Centers Corp.

      126,541         8,725   

Retail Opportunity Investments Corp.

      131,633         2,781   

Retail Properties of America, Inc., Class A

      286,442         4,391   

Rexford Industrial Realty, Inc.

      77,535         1,798   

RLJ Lodging Trust

      150,497         3,686   

Ryman Hospitality Properties, Inc.

      59,000         3,718   

Sabra Health Care REIT, Inc.

      78,740         1,923   

Saul Centers, Inc.

      16,705         1,113   

Select Income REIT

      81,866         2,063   

Senior Housing Properties Trust

      287,409         5,441   

Seritage Growth Properties, Class A

      31,200         1,333   

Silver Bay Realty Trust Corp.

      39,701         680   

Simon Property Group, Inc.

      380,521         67,607   

SL Green Realty Corp.

      122,707         13,197   

Spirit Realty Capital, Inc.

      557,419         6,054   

STAG Industrial, Inc.

      91,011         2,172   

STORE Capital Corp.

      186,828         4,617   

Summit Hotel Properties, Inc.

      101,256         1,623   

Sun Communities, Inc.

      78,685         6,028   

Sunstone Hotel Investors, Inc.

      262,202         3,999   

Tanger Factory Outlet Centers, Inc.

      116,053         4,152   

Taubman Centers, Inc.

      72,880         5,388   

Terreno Realty Corp.

      54,700         1,558   

Tier REIT, Inc.

      58,300         1,014   

TravelCenters of America LLC - (Fractional Shares)* (2)

     50,000         —     

UDR, Inc.

      323,442         11,799   

Universal Health Realty Income Trust

      16,573         1,087   

Urban Edge Properties

      108,056         2,973   

Urstadt Biddle Properties, Inc., Class A

      36,760         886   

Ventas, Inc.

      428,796         26,808   

VEREIT, Inc.

      1,168,568         9,886   

Vornado Realty Trust

      205,213         21,418   

Washington Prime Group, Inc.

      224,608         2,338   

Washington Real Estate Investment Trust

      90,244         2,950   

Weingarten Realty Investors

      139,316         4,986   

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 97.0%(1) continued

  

United States - 49.2% continued

      

Welltower, Inc.

      438,914       $ 29,377   

WP Carey, Inc.

      109,389         6,464   

Xenia Hotels & Resorts, Inc.

      130,000         2,525   
  

 

 

     

 

 

  
        906,991   
     

 

 

  

Total Common Stocks

(Cost $1,504,115)

         1,789,237   
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)(5) 		     VALUE
(000S)		  

CONVERTIBLE BONDS - 0.0%

      

Malaysia - 0.0%

      

YTL Land & Development Bhd., 3.00%, 10/31/21 (MYR)(6)

   $ 114       $ 12   
     

 

 

  

Total Convertible Bonds

(Cost $23)

         12   
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 2.2%(1)

  

   

F&C Commercial Property Trust Ltd.

      624,928       $ 1,050   

MedicX Fund Ltd.

      496,538         549   

Northern Institutional Funds - Government Assets Portfolio, 0.32%(7) (8)

      38,272,804         38,273   

Picton Property Income (The) Ltd. Fund

      672,045         627   

UK Commercial Property Trust Ltd.

      782,804         815   
  

 

 

     

 

 

  

Total Investment Companies

(Cost $41,443)

         41,314   
     

 

 

  

Total Investments - 99.2%

(Cost $1,545,581)

         1,830,563   
     

 

 

  

Other Assets less Liabilities - 0.8%

         14,021   
     

 

 

  

NET ASSETS - 100.0%

       $ 1,844,584   
     

 

 

  

 

(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) Level 3 asset that is worthless, bankrupt or has been delisted.
(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(4) Value rounds to less than one thousand.
(5) Principal amount is in USD unless otherwise indicated.
(6) Step coupon bond. Rate as of December 31, 2016 is disclosed.
(7) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(8) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had outstanding forward foreign currency exchange contracts as follows:

 

COUNTERPARTY

    CONTRACTS TO
DELIVER
CURRENCY		    AMOUNT
(LOCAL
CURRENCY)
(000S)		      IN EXCHANGE
FOR CURRENCY		    AMOUNT
(LOCAL
CURRENCY)
(000S)		      SETTLEMENT
DATE		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Bank of Montreal

    Australian Dollar      2,561       United States Dollar      1,880         3/15/17       $ 36   

Bank of Montreal

    British Pound      1,429       United States Dollar      1,780         3/15/17         15   

Bank of Montreal

    Euro      2,294       United States Dollar      2,400         3/15/17         (24 ) 

Bank of Montreal

    Hong Kong Dollar      26,930       United States Dollar      3,470         3/15/17         (4 ) 

Bank of Montreal

    Japanese Yen      361,156       United States Dollar      3,070         3/15/17         (32 ) 

Citibank

    United States Dollar      1,100       British Pound      886         3/15/17         (6 ) 

Citibank

    United States Dollar      1,033       British Pound      832         3/15/17         (6 ) 

Goldman Sachs

    United States Dollar      537       Canadian Dollar      718         3/15/17         (2 ) 

Goldman Sachs

    United States Dollar      700       Japanese Yen      80,161         3/15/17         (11 ) 

Morgan Stanley

    Australian Dollar      1,442       United States Dollar      1,040         3/15/17         1   

Morgan Stanley

    Australian Dollar      38       United States Dollar      28         3/15/17         —   * 

Morgan Stanley

    United States Dollar      800       Australian Dollar      1,106         3/15/17         (4 ) 

Morgan Stanley

    United States Dollar      600       Canadian Dollar      802         3/15/17         (2 ) 

Morgan Stanley

    United States Dollar      900       Euro      862         3/15/17         11   

Morgan Stanley

    United States Dollar      700       Euro      654         3/15/17         (9 ) 

Morgan Stanley

    United States Dollar      2,732       Hong Kong Dollar      21,212         3/15/17         4   

Morgan Stanley

    United States Dollar      2,200       Japanese Yen      257,017         3/15/17         7   

Morgan Stanley

    United States Dollar      900       Japanese Yen      105,593         3/15/17         7   

Morgan Stanley

    United States Dollar      2,420       Japanese Yen      281,817         3/15/17         —   * 

Morgan Stanley

    United States Dollar      645       Singapore Dollar      931         3/15/17         (2 ) 

Morgan Stanley

    United States Dollar      176       Swedish Krona      1,640         3/15/17         5   

Morgan Stanley

    United States Dollar      101       Swiss Franc      103         3/15/17         1   

Societe Generale

    United States Dollar      1,700       Australian Dollar      2,267         3/15/17         (67 ) 

Societe Generale

    United States Dollar      1,613       Euro      1,539         3/15/17         13   

Societe Generale

    United States Dollar      560       Hong Kong Dollar      4,341         3/15/17         —   * 

BNY Mellon

    United States Dollar      1,400       Australian Dollar      1,931         3/15/17         (9 ) 

BNY Mellon

    United States Dollar      1,900       Euro      1,811         3/15/17         14   

Toronto-Dominion Bank

    United States Dollar      800       British Pound      646         3/15/17         (2 ) 

Toronto-Dominion Bank

    United States Dollar      3,100       Hong Kong Dollar      24,061         3/15/17         4   

Toronto-Dominion Bank

    United States Dollar      1,400       Hong Kong Dollar      10,857         3/15/17         —   * 

Toronto-Dominion Bank

    United States Dollar      610       Japanese Yen      71,025         3/15/17         —   * 
                 

 

 

  

Total

                   $ 62   
                 

 

 

  

 

* Amount rounds to less than one thousand.

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

   NUMBER OF
CONTRACTS		     NOTIONAL
AMOUNT
(000S)		     CONTRACT
POSITION		     CONTRACT
EXP.		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

DAX Index (Euro)

     13     $ 3,922       Long       3/17     $ 24  

E-Mini S&P Midcap 400 (United States Dollar)

     160       26,546       Long       3/17       (287 ) 

FTSE 100 Index (British Pound)

     44       3,822       Long       3/17       58  

Hang Seng Index (Hong Kong Dolar)

     26       3,682       Long       1/17       59  

Nikkei 225 (Japanese Yen)

     73       5,946       Long       3/17       (11 ) 

SPI 200 Index (Australian Dollar)

     86       8,737       Long       3/17       91  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

           $ (66 ) 
         

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Diversified Real Estate Activities

      8.9 % 

Diversified REITs

      11.3  

Health Care REITs

      6.8  

Industrial REITs

      6.1  

Office REITs

      11.2  

Real Estate Development

      5.7  

Real Estate Operating Companies

      8.2  

Residential REITs

      9.8  

Retail REITs

      22.2  

Specialized REITs

      5.8  

Other Industries less than 5%

      4.0  
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

United States Dollar

      51.0 % 

Japanese Yen

      10.0  

Hong Kong Dollar

      9.3  

Euro

      7.8  

Australian Dollar

      5.4  

All other currencies less than 5%

      16.5  
  

 

 

  

Total

      100.0 % 
  

 

 

  

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

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

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

            

Canada

    $ 45,303      $ —        $ —        $ 45,303  

Chile

      1,529        —          —          1,529  

Egypt

      361        —          —          361  

Mexico

      8,129        —          —          8,129  

Thailand

      525        9,196        —          9,721  

United Arab Emirates

      2,922        1,821        —          4,743  

United States

      906,991        —          —          906,991  

All Other Countries(1)

     —          812,460        —          812,460  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      965,760        823,477        —          1,789,237  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		     LEVEL 3
(000S)		      TOTAL
(000S)		  

Convertible Bonds(1)

   $ —       $ —       $ 12      $ 12  

Investment Companies

      38,273       3,041       —          41,314  
  

 

 

    

 

 

    

 

 

     

 

 

  

Total Investments

    $ 1,004,033     $ 826,518     $ 12      $ 1,830,563  
  

 

 

    

 

 

    

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                          

Assets

          

Forward Foreign Currency Exchange Contracts

    $ —       $ 118     $ —        $ 118  

Futures Contracts

      232       —         —          232  

Liabilities

          

Forward Foreign Currency Exchange Contracts

      —         (180 )      —          (180 ) 

Futures Contracts

      (298 )      —         —          (298 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Total Other Financial Instruments

    $ (66 )    $ (62 )    $ —        $ (128 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

 

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

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

At December 31, 2016, the Fund had transfers from Level 1 to Level 2 as disclosed below:

Transfers from Level 1 to Level 2

 

     Value
(000S)		     

Reason

Common Stocks

      

Brazil

    $ 9,248      Valuations at official close price with foreign fair value adjustment
  

 

 

     

At December 31, 2016, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

 

     Value
(000S)		     

Reason

Common Stocks

      

United Arab Emirates

    $ 2,922      Valuations at official close price
  

 

 

     

 

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

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

 

     BALANCE
AS OF
3/31/16
(000S)		     ACCRUED
DISCOUNTS
(PREMIUMS)
(000S)		      REALIZED
GAINS
(LOSSES)
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     PURCHASES
(000S)		      SALES
(000S)		      TRANSFERS
INTO
LEVEL 3
(000S)		      TRANSFERS
OUT OF
LEVEL 3
(000S)		     BALANCE
AS OF
12/31/16
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD
AT 12/31/16
(000S)		  

Common Stocks

                           

Mexico

    $ —   *    $ —        $ —        $ —   *    $ —        $ —        $ —        $ —   *    $ —        $ —   * 

Convertible Bonds

                           

Malaysia

      13       6        —          (7 )      —          —          —          —         12        (7 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 13     $ 6      $ —        $ (7 )    $ —        $ —        $ —        $ —   *    $ 12      $ (7 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

 

* Amount rounds to less than one thousand.

The Transfers out of Level 3, noted above, was due to the Fund receiving an offical close price. Securities valued at $12 included in the Balance as of 12/31/16 above were valued using evaluated prices provided by a third party provider.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,643,103  
  

 

 

  

Gross tax appreciation of investments

    $ 288,605  

Gross tax depreciation of investments

      (101,140 ) 
  

 

 

  

Net tax appreciation of investments

    $ 187,465  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 2,337      $ 192,519      $ 156,583      $ 26      $ 38,273  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF CURRENCY ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

MYR - Malaysian Ringgit

USD - United States Dollar

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

GLOBAL SUSTAINABILITY INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1)

     

Australia - 3.4%

      

AGL Energy Ltd.

      10,223       $ 163   

Amcor Ltd.

      17,562         189   

AMP Ltd.

      44,769         162   

APA Group

      16,915         105   

Aurizon Holdings Ltd.

      31,150         113   

AusNet Services

      27,225         31   

Australia & New Zealand Banking Group Ltd.

      44,807         981   

Bendigo & Adelaide Bank Ltd.

      7,138         65   

Boral Ltd.

      17,314         67   

Brambles Ltd.

      24,042         215   

Caltex Australia Ltd.

      3,947         87   

Coca-Cola Amatil Ltd.

      8,875         65   

Cochlear Ltd.

      864         76   

Commonwealth Bank of Australia

      26,233         1,556   

Computershare Ltd.

      7,150         64   

Dexus Property Group

      14,489         101   

Goodman Group

      26,979         139   

GPT Group (The)

      26,875         97   

Healthscope Ltd.

      25,906         43   

Insurance Australia Group Ltd.

      36,380         157   

LendLease Group

      8,236         87   

Macquarie Group Ltd.

      4,635         292   

Mirvac Group

      56,212         86   

National Australia Bank Ltd.

      40,677         898   

Newcrest Mining Ltd.

      11,624         164   

Ramsay Health Care Ltd.

      2,144         106   

Scentre Group

      80,708         271   

South32 Ltd.

      80,743         159   

Stockland

      36,299         120   

Sydney Airport

      16,995         73   

Transurban Group

      30,800         229   

Wesfarmers Ltd.

      17,285         525   

Westpac Banking Corp.

      51,196         1,199   

Woodside Petroleum Ltd.

      11,496         258   
  

 

 

     

 

 

  
        8,943   
     

 

 

  

Austria - 0.0%

      

OMV A.G.

      2,259         80   
  

 

 

     

 

 

  

Belgium - 0.1%

      

Colruyt S.A.

      1,039         51   

KBC Group N.V.

      3,795         235   

Umicore S.A.

      1,438         82   
  

 

 

     

 

 

  
        368   
     

 

 

  

Canada - 4.0%

      

Agnico Eagle Mines Ltd.

      3,499         147   

Agrium, Inc.

      1,993         200   

Alimentation Couche-Tard, Inc., Class B

      6,500         295   

AltaGas Ltd.

      2,627         66   

ARC Resources Ltd.

      5,374         93   

Atco Ltd., Class I

      1,241         41   

Bank of Montreal

      9,903         712   

Bank of Nova Scotia (The)

      18,410         1,025   

CAE, Inc.

      4,100         57   

Canadian Imperial Bank of Commerce

      6,038         493   

Canadian National Railway Co.

      11,875         799   

Canadian Tire Corp. Ltd., Class A

      1,095         114   

Canadian Utilities Ltd., Class A

      1,892         51   

Cenovus Energy, Inc.

      12,663         191   

CGI Group, Inc., Class A*

      3,312         159   

Crescent Point Energy Corp.

      8,255         112   

Empire Co. Ltd., Class A

      2,519         29   

Enbridge, Inc.

      14,374         605   

Encana Corp.

      15,013         176   

Finning International, Inc.

      2,600         51   

First Capital Realty, Inc.

      1,900         29   

Fortis, Inc.

      6,200         191   

Franco-Nevada Corp.

      2,702         162   

Gildan Activewear, Inc.

      3,212         82   

Jean Coutu Group PJC (The), Inc., Class A

      1,400         22   

Keyera Corp.

      2,852         86   

Kinross Gold Corp.*

      17,843         56   

Loblaw Cos. Ltd.

      3,343         176   

Lululemon Athletica, Inc.*

      1,700         110   

Magna International, Inc.

      5,844         254   

Metro, Inc.

      3,563         107   

National Bank of Canada

      5,100         207   

Open Text Corp.

      1,806         112   

Pembina Pipeline Corp.

      5,900         184   

Potash Corp. of Saskatchewan, Inc.

      12,686         230   

PrairieSky Royalty Ltd.

      3,000         71   

Rogers Communications, Inc., Class B

      5,445         210   

Shaw Communications, Inc., Class B

      6,195         124   

Silver Wheaton Corp.

      6,673         129   

Suncor Energy, Inc.

      25,525         835   

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

Canada - 4.0% continued

      

Teck Resources Ltd., Class B

      8,596       $ 172   

TELUS Corp.

      2,923         93   

Toronto-Dominion Bank (The)

      28,336         1,398   
  

 

 

     

 

 

  
        10,456   
     

 

 

  

Denmark - 0.8%

      

Chr Hansen Holding A/S

      1,493         83   

Coloplast A/S, Class B

      1,796         121   

Genmab A/S*

      859         142   

ISS A/S

      2,525         85   

Novo Nordisk A/S, Class B

      29,260         1,051   

Novozymes A/S, Class B

      3,487         120   

Pandora A/S

      1,682         220   

Tryg A/S

      1,801         32   

Vestas Wind Systems A/S

      3,352         218   
  

 

 

     

 

 

  
        2,072   
     

 

 

  

Finland - 0.1%

      

Metso OYJ

      1,732         49   

Neste OYJ

      2,046         79   

Nokian Renkaat OYJ

      1,824         68   

Orion OYJ, Class B

      1,643         73   

Wartsila OYJ Abp

      2,179         98   
  

 

 

     

 

 

  
        367   
     

 

 

  

France - 3.7%

      

Accor S.A.

      2,677         100   

Aeroports de Paris

      445         48   

Air Liquide S.A.

      5,958         661   

Atos S.E.

      1,333         141   

AXA S.A.

      29,709         750   

Bouygues S.A.

      3,129         112   

Bureau Veritas S.A.

      3,897         75   

Capgemini S.A.

      2,475         209   

Carrefour S.A.

      8,861         213   

Casino Guichard Perrachon S.A.

      784         38   

Christian Dior S.E.

      824         173   

Cie de Saint-Gobain

      7,718         359   

Cie Generale des Etablissements Michelin

      2,811         313   

CNP Assurances

      2,496         46   

Danone S.A.

      9,052         573   

Eiffage S.A.

      868         60   

Essilor International S.A.

      3,203         362   

Eurazeo S.A.

      549         32   

Gecina S.A.

      622         86   

ICADE

      562         40   

Imerys S.A.

      582         44   

JCDecaux S.A.

      1,208         35   

Kering

      1,146         257   

Lagardere S.C.A.

      1,858         52   

Legrand S.A.

      4,039         229   

L’Oreal S.A.

      3,859         703   

Natixis S.A.

      14,202         80   

Renault S.A.

      2,914         259   

Rexel S.A.

      4,752         78   

Schneider Electric S.E.

      8,619         599   

SES S.A.

      5,507         121   

Societe BIC S.A.

      457         62   

Suez

      4,932         73   

Technip S.A.

      1,630         116   

TOTAL S.A.

      33,951         1,733   

Unibail-Rodamco S.E.

      1,501         358   

Valeo S.A.

      3,691         212   

Vivendi S.A.

      15,878         302   

Wendel S.A.

      449         54   
  

 

 

     

 

 

  
        9,758   
     

 

 

  

Germany - 2.9%

      

adidas A.G.

      2,850         451   

Allianz S.E. (Registered)

      6,993         1,156   

Axel Springer S.E.

      716         35   

Axis Capital Holdings Ltd.

      1,447         95   

BASF S.E.

      14,051         1,311   

Bayerische Motoren Werke A.G.

      5,012         469   

Beiersdorf A.G.

      1,524         129   

Brenntag A.G.

      2,335         129   

Deutsche Boerse A.G.*

      3,182         259   

Deutsche Post A.G. (Registered)

      14,686         482   

Fraport A.G. Frankfurt Airport Services Worldwide

      690         41   

GEA Group A.G.

      2,765         111   

HeidelbergCement A.G.

      2,305         215   

Henkel A.G. & Co. KGaA

      1,572         163   

MAN S.E.

      537         53   

Merck KGaA

      1,955         204   

METRO A.G.

      2,796         93   

 

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

Germany - 2.9% continued

      

Muenchener Rueckversicherungs-Gesellschaft A.G. in Muenchen (Registered)

      2,438       $ 461   

OSRAM Licht A.G.

      1,343         71   

ProSiebenSat.1 Media S.E.

      3,632         140   

SAP S.E.

      15,035         1,314   

Telefonica Deutschland Holding A.G.

      11,737         50   

TUI A.G. - CDI

      7,572         108   
  

 

 

     

 

 

  
        7,540   
     

 

 

  

Hong Kong - 0.7%

      

BOC Hong Kong Holdings Ltd.

      56,000         200   

CLP Holdings Ltd.

      24,806         227   

Hang Lung Properties Ltd.

      33,000         69   

Hang Seng Bank Ltd.

      11,578         215   

Henderson Land Development Co. Ltd.

      16,000         84   

Hong Kong & China Gas Co. Ltd.

      115,442         204   

Hong Kong Exchanges & Clearing Ltd.

      17,535         413   

Hysan Development Co. Ltd.

      10,000         41   

Li & Fung Ltd.

      90,000         39   

MTR Corp. Ltd.

      23,297         113   

Swire Pacific Ltd., Class A

      8,500         81   

Swire Properties Ltd.

      18,878         52   

Yue Yuen Industrial Holdings Ltd.

      10,500         38   
  

 

 

     

 

 

  
        1,776   
     

 

 

  

Ireland - 0.3%

      

CRH PLC

      12,556         434   

DCC PLC

      1,347         100   

Kerry Group PLC, Class A

      2,396         171   
  

 

 

     

 

 

  
        705   
     

 

 

  

Israel - 0.0%

      

Bank Hapoalim B.M.

      16,101         96   
  

 

 

     

 

 

  

Italy - 0.5%

      

Assicurazioni Generali S.p.A.

      17,698         263   

Intesa Sanpaolo S.p.A.

      192,276         491   

Intesa Sanpaolo S.p.A. (RSP)

      15,191         36   

Snam S.p.A.

      37,067         152   

Tenaris S.A.

      7,372         131   

Terna Rete Elettrica Nazionale S.p.A.

      22,782         104   
  

 

 

     

 

 

  
        1,177   
     

 

 

  

Japan - 8.5%

      

Aeon Co. Ltd.

      9,900         140   

AEON Financial Service Co. Ltd.

      1,690         30   

Aeon Mall Co. Ltd.

      1,680         24   

Aisin Seiki Co. Ltd.

      2,900         125   

Ajinomoto Co., Inc.

      8,400         169   

Alfresa Holdings Corp.

      2,900         48   

Amada Holdings Co. Ltd.

      5,000         56   

ANA Holdings, Inc.

      17,000         46   

Asahi Glass Co. Ltd.

      15,000         102   

Asahi Kasei Corp.

      19,000         165   

Asics Corp.

      2,500         50   

Astellas Pharma, Inc.

      33,100         459   

Benesse Holdings, Inc.

      900         25   

Casio Computer Co. Ltd.

      3,500         49   

Central Japan Railway Co.

      2,200         361   

Chugai Pharmaceutical Co. Ltd.

      3,510         101   

Dai Nippon Printing Co. Ltd.

      8,000         79   

Daicel Corp.

      4,400         48   

Daikin Industries Ltd.

      3,600         330   

Daiwa House Industry Co. Ltd.

      8,600         235   

Denso Corp.

      7,300         315   

Dentsu, Inc.

      3,300         155   

East Japan Railway Co.

      5,000         431   

Eisai Co. Ltd.

      3,805         217   

Fast Retailing Co. Ltd.

      800         285   

Fuji Heavy Industries Ltd.

      9,308         379   

FUJIFILM Holdings Corp.

      6,600         250   

Fujitsu Ltd.

      28,000         155   

Hino Motors Ltd.

      4,200         43   

Hitachi Chemical Co. Ltd.

      1,517         38   

Hitachi Construction Machinery Co. Ltd.

      1,700         37   

Hitachi High-Technologies Corp.

      943         38   

Hitachi Metals Ltd.

      3,100         42   

Honda Motor Co. Ltd.

      25,000         728   

Hulic Co. Ltd.

      4,600         41   

Inpex Corp.

      14,400         144   

Kajima Corp.

      14,000         97   

Kaneka Corp.

      4,000         32   

Kansai Paint Co. Ltd.

      3,300         61   

Kao Corp.

      7,700         364   

Kawasaki Heavy Industries Ltd.

      22,000         69   

KDDI Corp.

      28,100         709   

Keio Corp.

      9,000         74   

Keyence Corp.

      700         480   

Kikkoman Corp.

      2,000         64   

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

Japan - 8.5% continued

      

Kobe Steel Ltd.*

      4,955       $ 47   

Komatsu Ltd.

      14,000         316   

Konica Minolta, Inc.

      6,900         68   

Kubota Corp.

      16,000         228   

Kuraray Co. Ltd.

      5,400         81   

Kurita Water Industries Ltd.

      1,500         33   

Kyocera Corp.

      4,900         243   

Kyowa Hakko Kirin Co. Ltd.

      4,000         55   

Lawson, Inc.

      1,000         70   

Marui Group Co.Ltd.

      3,300         48   

Mazda Motor Corp.

      8,600         140   

McDonald’s Holdings Co. Japan Ltd.

      1,100         29   

Miraca Holdings, Inc.

      800         36   

Mitsubishi Corp.

      22,900         487   

Mitsubishi Electric Corp.

      29,800         414   

Mitsubishi Estate Co. Ltd.

      19,000         377   

Mitsubishi Materials Corp.

      1,700         52   

Mitsubishi UFJ Lease & Finance Co. Ltd.

      8,030         41   

Mitsui Chemicals, Inc.

      14,000         63   

Mitsui Fudosan Co. Ltd.

      14,000         323   

Mitsui OSK Lines Ltd.

      16,000         44   

Mizuho Financial Group, Inc.

      369,473         661   

Murata Manufacturing Co. Ltd.

      2,915         388   

Nabtesco Corp.

      1,700         39   

NEC Corp.

      39,000         103   

NGK Insulators Ltd.

      4,000         77   

NGK Spark Plug Co. Ltd.

      2,900         64   

Nikon Corp.

      5,300         82   

Nippon Prologis REIT, Inc.

      22         45   

Nippon Telegraph & Telephone Corp.

      10,500         441   

Nippon Yusen K.K.

      25,000         46   

Nissan Motor Co. Ltd.

      37,300         374   

Nissin Foods Holdings Co. Ltd.

      900         47   

Nitto Denko Corp.

      2,500         191   

Nomura Real Estate Holdings, Inc.

      2,000         34   

Nomura Research Institute Ltd.

      2,092         64   

NSK Ltd.

      7,100         82   

NTT DOCOMO, Inc.

      21,000         478   

Obayashi Corp.

      9,800         93   

Omron Corp.

      3,000         115   

Oriental Land Co. Ltd.

      3,300         186   

Osaka Gas Co. Ltd.

      28,000         108   

Panasonic Corp.

      33,400         339   

Resona Holdings, Inc.

      33,300         171   

Rinnai Corp.

      500         40   

Santen Pharmaceutical Co. Ltd.

      5,600         68   

Secom Co. Ltd.

      3,200         234   

Sekisui Chemical Co. Ltd.

      6,400         102   

Sekisui House Ltd.

      9,100         151   

Seven & i Holdings Co. Ltd.

      11,400         434   

Shimadzu Corp.

      4,000         64   

Shimizu Corp.

      8,000         73   

Shin-Etsu Chemical Co. Ltd.

      5,900         455   

Shionogi & Co. Ltd.

      4,500         215   

Shiseido Co. Ltd.

      5,700         144   

Showa Shell Sekiyu K.K.

      2,800         26   

Sompo Holdings, Inc.

      5,300         179   

Sony Corp.

      19,400         539   

Stanley Electric Co. Ltd.

      2,333         64   

Sumitomo Chemical Co. Ltd.

      24,000         114   

Sumitomo Corp.

      18,000         211   

Sumitomo Dainippon Pharma Co. Ltd.

      2,435         42   

Sumitomo Electric Industries Ltd.

      11,400         164   

Sumitomo Heavy Industries Ltd.

      8,000         51   

Sumitomo Metal Mining Co. Ltd.

      8,000         103   

Sumitomo Mitsui Financial Group, Inc.

      20,600         781   

Sumitomo Mitsui Trust Holdings, Inc.

      5,000         178   

Sumitomo Rubber Industries Ltd.

      2,500         40   

Suntory Beverage & Food Ltd.

      2,100         87   

Suzuken Co. Ltd.

      1,238         40   

Sysmex Corp.

      2,342         135   

T&D Holdings, Inc.

      8,800         116   

Takashimaya Co. Ltd.

      5,000         41   

Takeda Pharmaceutical Co. Ltd.

      10,800         446   

TDK Corp.

      1,900         130   

Teijin Ltd.

      3,000         61   

Toho Co. Ltd.

      1,700         48   

Toho Gas Co. Ltd.

      6,000         49   

Tokyo Electron Ltd.

      2,400         226   

Tokyo Gas Co. Ltd.

      29,000         131   

Tokyu Corp.

      16,000         117   

Tokyu Fudosan Holdings Corp.

      8,400         49   

Toppan Printing Co. Ltd.

      8,000         76   

Toray Industries, Inc.

      22,000         178   

TOTO Ltd.

      2,200         87   

Toyo Suisan Kaisha Ltd.

      1,300         47   

 

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

Japan - 8.5% continued

      

Toyoda Gosei Co. Ltd.

      1,100       $ 26   

Toyota Industries Corp.

      2,400         114   

Toyota Tsusho Corp.

      3,300         86   

USS Co. Ltd.

      3,500         56   

Yakult Honsha Co. Ltd.

      1,400         65   

Yamada Denki Co. Ltd.

      10,260         55   

Yamaha Corp.

      2,500         76   

Yamaha Motor Co. Ltd.

      4,200         92   

Yaskawa Electric Corp.

      3,700         57   

Yokogawa Electric Corp.

      3,700         53   
  

 

 

     

 

 

  
        22,529   
     

 

 

  

Netherlands - 1.4%

      

Aegon N.V.

      27,706         152   

Akzo Nobel N.V.

      3,747         234   

ASML Holding N.V.

      5,647         633   

Boskalis Westminster

      1,336         46   

Core Laboratories N.V.

      689         83   

EXOR N.V.

      1,720         74   

Gemalto N.V.

      1,214         70   

ING Groep N.V.

      59,381         836   

Koninklijke Ahold Delhaize N.V.

      19,395         408   

Koninklijke DSM N.V.

      2,744         164   

Koninklijke KPN N.V.

      51,621         153   

Koninklijke Philips N.V.

      14,581         445   

Koninklijke Vopak N.V.

      1,087         51   

NN Group N.V.

      4,791         162   

QIAGEN N.V.*

      3,343         94   

Wolters Kluwer N.V.

      4,566         165   
  

 

 

     

 

 

  
        3,770   
     

 

 

  

New Zealand - 0.1%

      

Auckland International Airport Ltd.

      14,328         62   

Contact Energy Ltd.

      11,067         36   

Fletcher Building Ltd.

      10,456         77   

Mercury NZ Ltd.

      9,087         19   

Meridian Energy Ltd.

      20,707         37   

Ryman Healthcare Ltd.

      5,543         31   
  

 

 

     

 

 

  
        262   
     

 

 

  

Norway - 0.4%

      

DNB ASA

      14,821         220   

Marine Harvest ASA*

      5,779         104   

Norsk Hydro ASA

      20,380         97   

Orkla ASA

      12,321         112   

Statoil ASA

      17,403         317   

Telenor ASA

      11,365         170   
  

 

 

     

 

 

  
        1,020   
     

 

 

  

Portugal - 0.1%

      

Banco Espirito Santo S.A. (Registered)* (2)

      29,034         —     

EDP - Energias de Portugal S.A.

      34,997         107   

Galp Energia SGPS S.A.

      7,877         117   

Jeronimo Martins SGPS S.A.

      3,984         62   
  

 

 

     

 

 

  
        286   
     

 

 

  

Singapore - 0.5%

      

Ascendas Real Estate Investment Trust

      39,800         62   

CapitaLand Commercial Trust

      34,100         35   

CapitaLand Ltd.

      38,400         80   

CapitaLand Mall Trust

      39,600         51   

City Developments Ltd.

      6,500         37   

DBS Group Holdings Ltd.

      27,395         327   

Global Logistic Properties Ltd.

      38,000         58   

Jardine Cycle & Carriage Ltd.

      1,544         44   

Keppel Corp. Ltd.

      22,900         91   

Singapore Airlines Ltd.

      8,300         55   

Singapore Press Holdings Ltd.

      24,800         60   

Singapore Telecommunications Ltd.

      120,600         303   

UOL Group Ltd.

      7,900         32   
  

 

 

     

 

 

  
        1,235   
     

 

 

  

South Africa - 0.1%

      

Investec PLC

      9,461         62   

Mediclinic International PLC

      5,503         52   

Mondi PLC

      5,574         114   
  

 

 

     

 

 

  
        228   
     

 

 

  

Spain - 1.1%

      

Amadeus IT Group S.A.

      6,641         302   

Banco Bilbao Vizcaya Argentaria S.A.

      100,800         680   

Banco de Sabadell S.A.

      78,638         109   

CaixaBank S.A.

      51,875         171   

Distribuidora Internacional de Alimentacion S.A.

      9,673         48   

Enagas S.A.

      3,398         86   

Ferrovial S.A.

      7,508         134   

Iberdrola S.A.

      82,927         544   

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

Spain - 1.1% continued

      

Industria de Diseno Textil S.A.

      16,731       $ 571   

Red Electrica Corp. S.A.

      6,440         121   

Repsol S.A.

      16,817         237   
  

 

 

     

 

 

  
        3,003   
     

 

 

  

Sweden - 1.7%

      

Alfa Laval AB

      4,408         73   

Assa Abloy AB, Class B

      15,168         281   

Atlas Copco AB, Class A

      10,162         309   

Atlas Copco AB, Class B

      5,901         161   

Autoliv, Inc.

      1,313         148   

Boliden AB

      4,144         108   

Electrolux AB, Class B

      3,642         90   

Hennes & Mauritz AB, Class B

      14,371         399   

Husqvarna AB, Class B

      6,716         52   

ICA Gruppen AB

      1,241         38   

Industrivarden AB, Class C

      2,608         49   

Kinnevik AB, Class B

      3,669         88   

Nordea Bank AB

      46,630         518   

Sandvik AB

      16,125         199   

Skandinaviska Enskilda Banken AB, Class A

      22,980         241   

Skanska AB, Class B

      5,139         121   

SKF AB, Class B

      6,421         118   

Svenska Cellulosa AB S.C.A., Class B

      9,183         259   

Svenska Handelsbanken AB, Class A

      23,584         328   

Swedbank AB, Class A

      13,705         331   

Telefonaktiebolaget LM Ericsson, Class B

      46,490         271   

Telia Co. AB

      39,292         158   

Volvo AB, Class B

      23,329         272   
  

 

 

     

 

 

  
        4,612   
     

 

 

  

Switzerland - 3.9%

      

ABB Ltd. (Registered)*

      28,860         607   

Actelion Ltd. (Registered)*

      1,493         323   

Adecco Group A.G. (Registered)

      2,506         164   

Aryzta A.G.*

      1,307         57   

Chocoladefabriken Lindt & Spruengli A.G. (Participation Certificate)

      15         78   

Chocoladefabriken Lindt & Spruengli A.G. (Registered)

      2         121   

Chubb Ltd.

      7,112         940   

Coca-Cola HBC A.G. - CDI*

      2,760         60   

Garmin Ltd.

      1,700         82   

Givaudan S.A. (Registered)

      140         256   

Kuehne + Nagel International A.G. (Registered)

      816         108   

LafargeHolcim Ltd. (Registered)*

      4,476         235   

LafargeHolcim Ltd. (Registered) (Euronext Paris Exchange)*

      2,416         127   

Lonza Group A.G. (Registered)*

      800         138   

Novartis A.G. (Registered)

      34,136         2,483   

Roche Holding A.G. (Genusschein)

      10,740         2,447   

SGS S.A. (Registered)

      83         169   

Swiss Re A.G.

      4,973         471   

Swisscom A.G. (Registered)

      392         175   

TE Connectivity Ltd.

      5,400         374   

Weatherford International PLC*

      14,997         75   

Wolseley PLC

      3,825         234   

Zurich Insurance Group A.G.*

      2,307         634   
  

 

 

     

 

 

  
        10,358   
     

 

 

  

United Kingdom - 6.0%

      

3i Group PLC

      14,750         128   

Aberdeen Asset Management PLC

      14,460         46   

Aon PLC

      4,100         457   

Associated British Foods PLC

      5,403         183   

Aviva PLC

      61,505         367   

Barratt Developments PLC

      15,220         87   

Berkeley Group Holdings PLC

      1,971         68   

British Land (The) Co. PLC

      14,619         113   

BT Group PLC

      129,386         586   

Bunzl PLC

      5,031         130   

Burberry Group PLC

      6,754         124   

Capita PLC

      9,898         65   

CNH Industrial N.V.

      15,391         134   

Coca-Cola European Partners PLC

      3,245         102   

Croda International PLC

      1,952         77   

Delphi Automotive PLC

      4,133         278   

easyJet PLC

      2,585         32   

GlaxoSmithKline PLC

      74,567         1,424   

Hammerson PLC

      11,614         82   

IHS Markit Ltd.*

      5,406         191   

InterContinental Hotels Group PLC

      2,848         127   

Intertek Group PLC

      2,450         105   

Intu Properties PLC

      15,064         52   

ITV PLC

      54,136         137   

J Sainsbury PLC

      23,524         72   

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

United Kingdom - 6.0% continued

      

Johnson Matthey PLC

      2,937       $ 115   

Kingfisher PLC

      34,474         148   

Land Securities Group PLC

      11,994         158   

Legal & General Group PLC

      90,190         275   

Liberty Global PLC, Class A*

      3,886         119   

Liberty Global PLC, Series C*

      9,510         282   

London Stock Exchange Group PLC

      4,758         171   

Marks & Spencer Group PLC

      24,042         104   

Meggitt PLC

      11,622         66   

Merlin Entertainments PLC(3)

     11,222         62   

Michael Kors Holdings Ltd.*

      2,636         113   

National Grid PLC

      57,690         675   

Next PLC

      2,131         130   

Old Mutual PLC

      74,745         190   

Pearson PLC

      12,190         122   

Pentair PLC

      2,569         144   

Petrofac Ltd.

      4,103         44   

Prudential PLC

      39,501         788   

Reckitt Benckiser Group PLC

      9,684         819   

RELX N.V.

      15,053         253   

RELX PLC

      6,480         115   

RELX PLC (London Exchange)

      10,107         180   

RSA Insurance Group PLC

      16,057         116   

Schroders PLC

      2,082         77   

Segro PLC

      11,787         67   

Sky PLC

      16,025         195   

SSE PLC

      15,273         292   

Standard Chartered PLC*

      49,741         407   

Standard Life PLC

      29,974         137   

Tate & Lyle PLC

      7,134         62   

Taylor Wimpey PLC

      48,160         90   

Tesco PLC*

      123,910         315   

Travis Perkins PLC

      3,934         70   

Unilever N.V. - CVA

      24,933         1,025   

Unilever PLC

      19,658         795   

United Utilities Group PLC

      10,121         112   

Vodafone Group PLC

      407,233         1,002   

Whitbread PLC

      2,743         128   

Willis Towers Watson PLC

      1,993         244   

Wm Morrison Supermarkets PLC

      32,586         93   

WPP PLC

      19,703         440   
  

 

 

     

 

 

  
        15,907   
     

 

 

  

United States - 57.8%

      

3M Co.

      9,229         1,648   

A.O. Smith Corp.

      2,200         104   

Accenture PLC, Class A

      9,547         1,118   

Acuity Brands, Inc.

      700         162   

Advance Auto Parts, Inc.

      1,100         186   

AES Corp.

      10,000         116   

Aflac, Inc.

      6,226         433   

AGCO Corp.

      1,036         60   

Agilent Technologies, Inc.

      4,916         224   

Air Products & Chemicals, Inc.

      3,150         453   

Albemarle Corp.

      1,700         146   

Alexandria Real Estate Equities, Inc.

      1,200         133   

Alexion Pharmaceuticals, Inc.*

      3,389         415   

Alliant Energy Corp.

      3,404         129   

Allstate (The) Corp.

      5,700         422   

Ally Financial, Inc.

      6,600         126   

Alphabet, Inc., Class C*

      4,728         3,649   

AMERCO

      100         37   

American Express Co.

      11,968         887   

American International Group, Inc.

      16,400         1,071   

American Tower Corp.

      6,528         690   

American Water Works Co., Inc.

      2,705         196   

Ameriprise Financial, Inc.

      2,426         269   

AmerisourceBergen Corp.

      2,894         226   

AMETEK, Inc.

      3,502         170   

Amgen, Inc.

      11,425         1,670   

Analog Devices, Inc.

      4,634         337   

Annaly Capital Management, Inc.

      15,565         155   

ANSYS, Inc.*

      1,305         121   

Antero Resources Corp.*

      2,315         55   

Anthem, Inc.

      4,000         575   

Apache Corp.

      5,756         365   

Applied Materials, Inc.

      16,553         534   

Aramark

      3,500         125   

Arch Capital Group Ltd.*

      1,900         164   

Arthur J. Gallagher & Co.

      2,700         140   

Assurant, Inc.

      900         84   

Autodesk, Inc.*

      3,015         223   

Automatic Data Processing, Inc.

      7,000         719   

AutoNation, Inc.*

      1,100         54   

AutoZone, Inc.*

      405         320   

AvalonBay Communities, Inc.

      2,169         384   

Avery Dennison Corp.

      1,338         94   

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

United States - 57.8% continued

      

Axalta Coating Systems Ltd.*

      3,500       $ 95   

B/E Aerospace, Inc.

      1,500         90   

Baker Hughes, Inc.

      6,213         404   

Ball Corp.

      2,502         188   

Bank of New York Mellon (The) Corp.

      16,398         777   

BB&T Corp.

      12,462         586   

Becton Dickinson and Co.

      3,322         550   

Bed Bath & Beyond, Inc.

      2,350         96   

Best Buy Co., Inc.

      4,473         191   

Biogen, Inc.*

      3,331         945   

BioMarin Pharmaceutical, Inc.*

      2,556         212   

BlackRock, Inc.

      1,852         705   

BorgWarner, Inc.

      3,244         128   

Boston Properties, Inc.

      2,380         299   

Bristol-Myers Squibb Co.

      25,557         1,494   

Brixmor Property Group, Inc.

      4,600         112   

Bunge Ltd.

      2,135         154   

C.H. Robinson Worldwide, Inc.

      2,170         159   

CA, Inc.

      4,728         150   

Camden Property Trust

      1,300         109   

Campbell Soup Co.

      3,037         184   

Cardinal Health, Inc.

      4,845         349   

CarMax, Inc.*

      2,909         187   

Caterpillar, Inc.

      8,967         832   

CBRE Group, Inc., Class A*

      4,526         143   

Celanese Corp., Series A

      2,233         176   

Celgene Corp.*

      11,900         1,377   

Centene Corp.*

      2,600         147   

CenterPoint Energy, Inc.

      6,213         153   

CenturyLink, Inc.

      8,259         196   

Charles Schwab (The) Corp.

      18,241         720   

Charter Communications, Inc., Class A*

      3,283         945   

Cheniere Energy, Inc.*

      3,031         126   

Cigna Corp.

      3,978         531   

Cimarex Energy Co.

      1,506         205   

Cisco Systems, Inc.

      76,869         2,323   

CIT Group, Inc.

      3,100         132   

Citizens Financial Group, Inc.

      8,000         285   

Citrix Systems, Inc.*

      2,400         214   

Clorox (The) Co.

      2,010         241   

CME Group, Inc.

      5,172         597   

CMS Energy Corp.

      4,249         177   

Coach, Inc.

      4,200         147   

Coca-Cola (The) Co.

      62,700         2,600   

Cognizant Technology Solutions Corp., Class A*

      9,355         524   

Colgate-Palmolive Co.

      13,012         852   

Comerica, Inc.

      2,652         181   

Concho Resources, Inc.*

      2,212         293   

ConocoPhillips

      18,900         948   

Consolidated Edison, Inc.

      4,652         343   

Continental Resources, Inc.*

      1,514         78   

Corning, Inc.

      15,962         387   

Crown Castle International Corp.

      5,154         447   

CSX Corp.

      14,527         522   

Cummins, Inc.

      2,417         330   

Danaher Corp.

      9,543         743   

Darden Restaurants, Inc.

      1,851         135   

Deere & Co.

      4,107         423   

Delta Air Lines, Inc.

      2,800         138   

DENTSPLY SIRONA, Inc.

      3,566         206   

Devon Energy Corp.

      7,136         326   

Dick’s Sporting Goods, Inc.

      1,400         74   

Digital Realty Trust, Inc.

      2,428         239   

Discover Financial Services

      6,261         451   

Discovery Communications, Inc., Class A*

      2,392         66   

Discovery Communications, Inc., Class C*

      3,290         88   

Dollar General Corp.

      4,300         319   

Dominion Resources, Inc.

      9,600         735   

Dover Corp.

      2,312         173   

Dr. Pepper Snapple Group, Inc.

      2,862         259   

Duke Realty Corp.

      5,253         140   

Dun & Bradstreet (The) Corp.

      523         63   

E*TRADE Financial Corp.*

      4,200         146   

Eastman Chemical Co.

      2,220         167   

Eaton Corp. PLC

      7,021         471   

Eaton Vance Corp.

      1,800         75   

Ecolab, Inc.

      4,055         475   

Edison International

      5,000         360   

Edwards Lifesciences Corp.*

      3,234         303   

Envision Healthcare Corp.*

      1,802         114   

EOG Resources, Inc.

      8,763         886   

EQT Corp.

      2,648         173   

Equinix, Inc.

      1,101         394   

Equity Residential

      5,518         355   

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

United States - 57.8% continued

      

Essex Property Trust, Inc.

      1,000       $ 233   

Estee Lauder (The) Cos., Inc., Class A

      3,319         254   

Eversource Energy

      4,772         264   

Expeditors International of Washington, Inc.

      2,788         148   

Fastenal Co.

      4,415         207   

Federal Realty Investment Trust

      1,150         163   

Fifth Third Bancorp

      11,700         316   

First Republic Bank

      2,300         212   

Flex Ltd.*

      8,518         122   

Flowserve Corp.

      2,000         96   

FMC Technologies, Inc.*

      3,524         125   

Foot Locker, Inc.

      2,100         149   

Ford Motor Co.

      56,761         689   

Fortune Brands Home & Security, Inc.

      2,400         128   

Franklin Resources, Inc.

      5,753         228   

Frontier Communications Corp.

      17,400         59   

Gap (The), Inc.

      3,587         80   

General Mills, Inc.

      9,220         570   

Gilead Sciences, Inc.

      20,170         1,444   

Hanesbrands, Inc.

      5,700         123   

Harley-Davidson, Inc.

      2,701         158   

Harman International Industries, Inc.

      1,100         122   

Hartford Financial Services Group (The), Inc.

      5,986         285   

Hasbro, Inc.

      1,700         132   

HCP, Inc.

      7,110         211   

Henry Schein, Inc.*

      1,287         195   

Hess Corp.

      4,349         271   

Hewlett Packard Enterprise Co.

      25,500         590   

Hilton Worldwide Holdings, Inc.*

      9,100         248   

Hologic, Inc.*

      3,841         154   

Hormel Foods Corp.

      4,450         155   

Host Hotels & Resorts, Inc.

      11,344         214   

HP, Inc.

      26,287         390   

Humana, Inc.

      2,240         457   

Illinois Tool Works, Inc.

      4,927         603   

Ingersoll-Rand PLC

      3,975         298   

Intel Corp.

      72,185         2,618   

Intercontinental Exchange, Inc.

      9,165         517   

International Business Machines Corp.

      13,865         2,301   

International Flavors & Fragrances, Inc.

      1,250         147   

International Paper Co.

      5,950         316   

Intuit, Inc.

      3,680         422   

Invesco Ltd.

      6,373         193   

Iron Mountain, Inc.

      3,736         121   

Johnson & Johnson

      41,750         4,810   

Johnson Controls International PLC

      14,293         589   

Jones Lang LaSalle, Inc.

      700         71   

Kansas City Southern

      1,600         136   

Kellogg Co.

      4,045         298   

KeyCorp

      16,443         300   

Kimberly-Clark Corp.

      5,548         633   

Kimco Realty Corp.

      6,400         161   

Kinder Morgan, Inc.

      29,100         603   

Kohl’s Corp.

      2,833         140   

Kraft Heinz (The) Co.

      9,289         811   

Laboratory Corp. of America Holdings*

      1,597         205   

Lam Research Corp.

      2,457         260   

Level 3 Communications, Inc.*

      4,769         269   

Liberty Property Trust

      2,200         87   

LKQ Corp.

      4,617         142   

Loews Corp.

      4,400         206   

Lowe’s Cos., Inc.

      13,505         960   

LyondellBasell Industries N.V., Class A

      5,347         459   

M&T Bank Corp.

      2,146         336   

Macerich (The) Co.

      1,807         128   

ManpowerGroup, Inc.

      1,083         96   

Marathon Oil Corp.

      12,821         222   

Marathon Petroleum Corp.

      8,040         405   

Marriott International, Inc., Class A

      5,063         419   

Marsh & McLennan Cos., Inc.

      7,960         538   

Marvell Technology Group Ltd.

      6,700         93   

Masco Corp.

      5,000         158   

Mastercard, Inc., Class A

      14,800         1,528   

Mattel, Inc.

      5,145         142   

McCormick & Co., Inc. (Non Voting)

      1,788         167   

McDonald’s Corp.

      12,999         1,582   

Mead Johnson Nutrition Co.

      2,764         196   

MEDNAX, Inc.*

      1,400         93   

Merck & Co., Inc.

      42,221         2,486   

Mettler-Toledo International, Inc.*

      446         187   

Microchip Technology, Inc.

      3,280         210   

Microsoft Corp.

      113,100         7,028   

Mid-America Apartment Communities, Inc.

      1,700         166   

Mohawk Industries, Inc.*

      1,003         200   

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

United States - 57.8% continued

      

Mondelez International, Inc., Class A

      23,846       $ 1,057   

Mosaic (The) Co.

      5,068         149   

Motorola Solutions, Inc.

      2,250         187   

Nasdaq, Inc.

      1,780         119   

National Oilwell Varco, Inc.

      5,753         215   

Netflix, Inc.*

      6,541         810   

New York Community Bancorp, Inc.

      7,436         118   

Newell Brands, Inc.

      6,532         292   

NIKE, Inc., Class B

      20,618         1,048   

NiSource, Inc.

      4,900         108   

Noble Energy, Inc.

      6,528         248   

Nordstrom, Inc.

      1,995         96   

Norfolk Southern Corp.

      4,450         481   

Northern Trust Corp.(4)

     3,447         307   

Nucor Corp.

      4,848         289   

NVIDIA Corp.

      8,216         877   

Occidental Petroleum Corp.

      11,641         829   

ONEOK, Inc.

      3,207         184   

Oracle Corp.

      47,264         1,817   

PACCAR, Inc.

      5,481         350   

Parker-Hannifin Corp.

      2,099         294   

Patterson Cos., Inc.

      1,345         55   

People’s United Financial, Inc.

      4,772         92   

PepsiCo, Inc.

      22,010         2,303   

Phillips 66

      7,156         618   

Pinnacle West Capital Corp.

      1,646         128   

Pioneer Natural Resources Co.

      2,588         466   

PNC Financial Services Group (The), Inc.

      7,524         880   

Polaris Industries, Inc.

      900         74   

PPG Industries, Inc.

      4,100         389   

Praxair, Inc.

      4,333         508   

Principal Financial Group, Inc.

      4,352         252   

Procter & Gamble (The) Co.

      39,037         3,282   

Progressive (The) Corp.

      8,850         314   

Prologis, Inc.

      8,122         429   

Prudential Financial, Inc.

      6,697         697   

Public Service Enterprise Group, Inc.

      7,665         336   

PVH Corp.

      1,275         115   

Quest Diagnostics, Inc.

      2,100         193   

Quintiles IMS Holdings, Inc.*

      2,200         167   

Range Resources Corp.

      2,800         96   

Raymond James Financial, Inc.

      1,904         132   

Regency Centers Corp.

      1,600         110   

Regions Financial Corp.

      19,400         279   

Reinsurance Group of America, Inc.

      1,000         126   

RenaissanceRe Holdings Ltd.

      645         88   

ResMed, Inc.

      2,081         129   

Robert Half International, Inc.

      2,000         98   

Rockwell Automation, Inc.

      1,983         267   

Rockwell Collins, Inc.

      1,978         183   

Roper Technologies, Inc.

      1,545         283   

Ross Stores, Inc.

      6,104         400   

Royal Caribbean Cruises Ltd.

      2,629         216   

S&P Global, Inc.

      4,000         430   

salesforce.com, Inc.*

      9,909         678   

SBA Communications Corp., Class A*

      1,900         196   

Schlumberger Ltd.

      21,204         1,780   

Scripps Networks Interactive, Inc., Class A

      1,233         88   

Sealed Air Corp.

      2,967         135   

SEI Investments Co.

      2,067         102   

Sempra Energy

      3,649         367   

Sensata Technologies Holding N.V.*

      2,600         101   

Sherwin-Williams (The) Co.

      1,243         334   

Signature Bank*

      800         120   

Signet Jewelers Ltd.

      1,100         104   

Simon Property Group, Inc.

      4,770         847   

Skyworks Solutions, Inc.

      2,900         217   

SL Green Realty Corp.

      1,500         161   

Snap-on, Inc.

      900         154   

Southern (The) Co.

      15,000         738   

Southwest Airlines Co.

      2,303         115   

Southwestern Energy Co.*

      7,208         78   

Spectra Energy Corp.

      10,676         439   

Sprint Corp.*

      12,033         101   

Stanley Black & Decker, Inc.

      2,300         264   

Staples, Inc.

      9,597         87   

Starbucks Corp.

      22,470         1,248   

State Street Corp.

      6,000         466   

Symantec Corp.

      9,218         220   

T. Rowe Price Group, Inc.

      3,743         282   

TD Ameritrade Holding Corp.

      4,013         175   

Tesla Motors, Inc.*

      1,954         418   

Tesoro Corp.

      1,848         162   

Texas Instruments, Inc.

      15,393         1,123   

Thermo Fisher Scientific, Inc.

      6,067         856   

Tiffany & Co.

      1,926         149   

 

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.1%(1) continued

      

United States - 57.8% continued

      

Time Warner, Inc.

      11,909       $ 1,150   

Tractor Supply Co.

      1,981         150   

TransDigm Group, Inc.

      800         199   

Travelers (The) Cos., Inc.

      4,404         539   

Trimble, Inc.*

      3,837         116   

UDR, Inc.

      4,025         147   

Ulta Salon Cosmetics & Fragrance, Inc.*

      898         229   

Under Armour, Inc., Class A*

      2,715         79   

Under Armour, Inc., Class C*

      2,819         71   

Union Pacific Corp.

      12,724         1,319   

United Parcel Service, Inc., Class B

      10,557         1,210   

United Rentals, Inc.*

      1,353         143   

US Bancorp

      26,116         1,342   

Valero Energy Corp.

      7,100         485   

Varian Medical Systems, Inc.*

      1,440         129   

Ventas, Inc.

      5,428         339   

Verizon Communications, Inc.

      62,283         3,325   

Vertex Pharmaceuticals, Inc.*

      3,759         277   

VF Corp.

      5,105         272   

Vornado Realty Trust

      2,575         269   

Voya Financial, Inc.

      3,100         122   

W.W. Grainger, Inc.

      867         201   

WABCO Holdings, Inc.*

      800         85   

Walt Disney (The) Co.

      23,300         2,428   

Waste Management, Inc.

      6,787         481   

Waters Corp.*

      1,294         174   

WEC Energy Group, Inc.

      4,822         283   

Welltower, Inc.

      5,429         363   

Western Union (The) Co.

      7,500         163   

WestRock Co.

      3,899         198   

Weyerhaeuser Co.

      11,338         341   

Whirlpool Corp.

      1,176         214   

WhiteWave Foods (The) Co.*

      2,700         150   

Whole Foods Market, Inc.

      4,771         147   

Williams (The) Cos., Inc.

      10,831         337   

Workday, Inc., Class A*

      1,830         121   

Wyndham Worldwide Corp.

      1,668         127   

Xcel Energy, Inc.

      7,748         315   

Xerox Corp.

      13,029         114   

XL Group Ltd.

      4,300         160   

Xylem, Inc.

      2,724         135   

Yahoo!, Inc.*

      13,845         535   

Zoetis, Inc.

      7,117         381   
  

 

 

     

 

 

  
        152,950   
     

 

 

  

Total Common Stocks

(Cost $210,369)

         259,498   
     

 

 

  

PREFERRED STOCKS - 0.1%

      

Germany - 0.1%

      

Bayerische Motoren Werke A.G.

      824         63   

Henkel A.G. & Co. KGaA

      2,696         322   
  

 

 

     

 

 

  
        385   
     

 

 

  

Total Preferred Stocks

(Cost $244)

         385   
     

 

 

  

RIGHTS - 0.0%

      

Spain - 0.0%

      

Repsol S.A.*

      16,817         6   
  

 

 

     

 

 

  

Total Rights

(Cost $6)

         6   
     

 

 

  

INVESTMENT COMPANIES - 0.6%

  

   

Northern Institutional Funds - Government Assets Portfolio, 0.32%(5) (6)

     1,483,209         1,483   
  

 

 

     

 

 

  

Total Investment Companies

(Cost $1,483)

         1,483   
     

 

 

  

Total Investments - 98.8%

(Cost $212,102)

         261,372   
     

 

 

  

Other Assets less Liabilities - 1.2%

         3,112   
     

 

 

  

NET ASSETS - 100.0%

       $ 264,484   
     

 

 

  

 

(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) Value rounds to less than one thousand.
(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(4) Investment in affiliate.

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

 

(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(6) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had outstanding forward foreign currency exchange contracts as follows:

 

COUNTERPARTY

   

CONTRACTS TO
DELIVER
CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		      IN EXCHANGE
FOR CURRENCY		      AMOUNT
(LOCAL
CURRENCY)
(000S)		      SETTLEMENT
DATE		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Citibank

    British Pound      469         United States Dollar         582         3/15/17       $ 3   

Goldman Sachs

    United States Dollar      168         Canadian Dollar         225         3/15/17         (1 ) 

Morgan Stanley

    Australian Dollar      66         United States Dollar         48         3/15/17         —   * 

Morgan Stanley

    United States Dollar      24         Japanese Yen         2,751         3/15/17         —   * 

Morgan Stanley

    United States Dollar      200         Japanese Yen         23,280         3/15/17         —   * 

Morgan Stanley

    United States Dollar      96         Swedish Krona         896         3/15/17         3   

Morgan Stanley

    United States Dollar      98         Swiss Franc         100         3/15/17         1   

Societe Generale

    Euro      38         United States Dollar         40         3/15/17         —   * 

Societe Generale

    Euro      381         United States Dollar         400         3/15/17         (3 ) 

Societe Generale

    United States Dollar      300         British Pound         243         3/15/17         1   

Toronto-Dominion Bank

    Canadian Dollar      135         United States Dollar         100         3/15/17         (1 ) 

Toronto-Dominion Bank

    Japanese Yen      35,057         United States Dollar         300         3/15/17         (1 ) 
                 

 

 

  

Total

                   $ 2   
                 

 

 

  

 

* Amount rounds to less than one thousand.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-Mini S&P 500 (United States Dollar)

      25       $ 2,795         Long         3/17       $ (4 ) 

Euro Stoxx 50 (Euro)

      21         688         Long         3/17         14   

FTSE 100 Index (British Pound)

      2         141         Long         3/17         4   

S&P/TSX 60 Index (Canadian Dollar)

      1         179         Long         3/17         (1 ) 

SPI 200 Index (Australian Dollar)

      2         282         Long         3/17         1   

Topix Index (Japanese Yen)

      2         30,360         Long         3/17         9   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

                $ 23   
              

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.1 % 

Consumer Staples

      9.4   

Energy

      6.8   

Financials

      17.2   

Health Care

      12.9   

Industrials

      11.0   

Information Technology

      14.7   

Materials

      4.9   

Real Estate

      4.5   

Telecommunication Services

      3.3   

Utilities

      3.2   
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

United States Dollar

      60.3 % 

Euro

      11.0  

JapaneseYen

      8.7  

British Pound

      5.1  

All other currencies less that 5%

      14.9  
  

 

 

  

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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		     LEVEL 3
(000S)		     TOTAL
(000S)		  

Common Stocks

         

Canada

    $ 10,456     $ —       $ —       $ 10,456  

Denmark

      250       1,822       —         2,072  

Germany

      95       7,445       —         7,540  

Netherlands

      83       3,687       —         3,770  

Portugal

      —         286       —   *      286  

Sweden

      148       4,464       —         4,612  

Switzerland

      1,471       8,887       —         10,358  

United Kingdom

      1,931       13,976       —         15,907  

United States

      152,950       —         —         152,950  

All Other Countries(1)

     —         51,547       —         51,547  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Common Stocks

      167,384       92,114       —   *      259,498  
  

 

 

    

 

 

    

 

 

    

 

 

  

Preferred Stocks(1)

     —         385       —         385  

Rights(1)

     —         6       —         6  

Investment Companies

      1,483       —         —         1,483  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments

    $ 168,867     $ 92,505     $ —   *    $ 261,372  
  

 

 

    

 

 

    

 

 

    

 

 

  

OTHER FINANCIAL INSTRUMENTS

                         

Assets

         

Forward Foreign Currency Exchange Contracts

    $ —       $ 8     $ —       $ 8  

Futures Contracts

      28       —         —         28  

Liabilities

         

Forward Foreign Currency Exchange Contracts

      —         (6 )      —         (6 ) 

Futures Contracts

      (5 )      —         —         (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Other Financial Instruments

    $ 23     $ 2     $ —       $ 25  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Classifications as defined in the Schedule of Investments.
* Amount rounds to less than one thousand.

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

At December 31, 2016, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

 

     Value
(000S)		     

Reason

Common Stocks

      

Denmark

    $ 250      Valuations at official close price
  

 

 

     

 

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

GLOBAL SUSTAINABILITY INDEX FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

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

 

    BALANCE
AS OF
3/31/16
(000S)		     REALIZED
GAINS
(LOSSES)
(000S)		     CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     PURCHASES
(000S)		     SALES
(000S)		     TRANSFERS
INTO
LEVEL 3
(000S)		     TRANSFERS
OUT OF
LEVEL 3
(000S)		     BALANCE
AS OF
12/31/16
(000S)		     CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD AT
12/31/16
(000S)		  

Common Stocks

                  

Portugal

   $ —   *    $ —        $ —   *    $ —        $ —        $ —        $ —        $ —   *    $ —   * 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

* Amount rounds to less than one thousand.

The Fund valued the security included in the Balance as of 12/31/16 above using valuations provided by the adviser’s pricing and valuation committee.

 

     FAIR VALUE AT
12/31/16
(000S)		     VALUATION TECHNIQUES    UNOBSERVABLE INPUTS

Common Stock

    $ —   *    Market Comparable Companies    Price to Earnings Multiple/Liquidity Discount
  

 

 

       

 

* Amount rounds to less than one thousand.

The significant unobservable inputs used in the fair value measurement is the price to earnings multiple along with liquidity discounts. Significant increases (decreases) in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 215,756   
  

 

 

  

Gross tax appreciation of investments

    $ 54,461   

Gross tax depreciation of investments

      (8,845 ) 
  

 

 

  

Net tax appreciation of investments

    $ 45,616   
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

   VALUE,
BEGINNING
OF PERIOD
(000S)		     PURCHASES
(000S)		     SALES
PROCEEDS
(000S)		     NET CHANGE
IN UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     NET REALIZED
GAINS
(LOSSES)
(000S)		     DIVIDEND
INCOME
(000S)		     VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

   $ 5,302      $ 44,789      $ 48,608      $ —        $ —        $ 8      $ 1,483   

Northern Trust Corp.

     182        47        —          78        —          4        307   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 5,484      $ 44,836      $ 48,608      $ 78      $ —        $ 12      $ 1,790   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

INTERNATIONAL EQUITY INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2(1)

     

Australia - 7.4%

      

AGL Energy Ltd.

      212,278      $ 3,377  

Alumina Ltd.

      817,997        1,076  

Amcor Ltd.

      358,236        3,859  

AMP Ltd.

      951,079        3,450  

APA Group

      355,971        2,199  

Aristocrat Leisure Ltd.

      174,706        1,949  

ASX Ltd.

      61,872        2,216  

Aurizon Holdings Ltd.

      632,518        2,302  

AusNet Services

      611,264        696  

Australia & New Zealand Banking Group Ltd.

      919,016        20,119  

Bank of Queensland Ltd.

      119,312        1,020  

Bendigo & Adelaide Bank Ltd.

      153,748        1,407  

BGP Holdings PLC* (2)

     1,085,479        —    

BHP Billiton Ltd.

      1,016,057        18,137  

BHP Billiton PLC

      662,901        10,481  

Boral Ltd.

      363,277        1,413  

Brambles Ltd.

      491,632        4,385  

Caltex Australia Ltd.

      78,864        1,732  

Challenger Ltd.

      173,005        1,399  

CIMIC Group Ltd.

      30,466        766  

Coca-Cola Amatil Ltd.

      176,211        1,285  

Cochlear Ltd.

      18,177        1,605  

Commonwealth Bank of Australia

      539,212        31,981  

Computershare Ltd.

      143,043        1,286  

Crown Resorts Ltd.

      122,944        1,025  

CSL Ltd.

      142,735        10,311  

Dexus Property Group

      309,065        2,151  

Domino’s Pizza Enterprises Ltd.

      20,738        966  

DUET Group

      791,754        1,565  

Flight Centre Travel Group Ltd.

      19,289        434  

Fortescue Metals Group Ltd.

      486,424        2,054  

Goodman Group

      574,141        2,962  

GPT Group (The)

      573,993        2,081  

Harvey Norman Holdings Ltd.

      169,434        628  

Healthscope Ltd.

      587,468        968  

Incitec Pivot Ltd.

      520,614        1,346  

Insurance Australia Group Ltd.

      783,319        3,376  

LendLease Group

      176,088        1,852  

Macquarie Group Ltd.

      97,162        6,125  

Medibank Pvt Ltd.

      894,895        1,820  

Mirvac Group

      1,179,294        1,810  

National Australia Bank Ltd.

      840,640        18,554  

Newcrest Mining Ltd.

      235,779        3,324  

Oil Search Ltd.

      421,593        2,177  

Orica Ltd.

      124,131        1,577  

Origin Energy Ltd.

      549,697        2,607  

Qantas Airways Ltd.

      152,328        365  

QBE Insurance Group Ltd.

      427,859        3,843  

Ramsay Health Care Ltd.

      44,184        2,178  

REA Group Ltd.

      17,515        696  

Santos Ltd.

      507,953        1,467  

Scentre Group

      1,686,656        5,661  

SEEK Ltd.

      110,723        1,186  

Sonic Healthcare Ltd.

      126,071        1,946  

South32 Ltd.

      683,909        1,348  

South32 Ltd. (ASE Exchange)

      1,032,138        2,037  

Stockland

      770,220        2,543  

Suncorp Group Ltd.

      397,880        3,870  

Sydney Airport

      350,299        1,509  

Tabcorp Holdings Ltd.

      278,131        965  

Tatts Group Ltd.

      463,656        1,497  

Telstra Corp. Ltd.

      1,354,295        4,977  

TPG Telecom Ltd.

      114,160        560  

Transurban Group

      639,688        4,764  

Treasury Wine Estates Ltd.

      229,286        1,764  

Vicinity Centres

      1,036,912        2,243  

Vocus Communications Ltd.

      169,133        471  

Wesfarmers Ltd.

      352,471        10,701  

Westfield Corp.

      616,761        4,186  

Westpac Banking Corp.

      1,051,342        24,629  

Woodside Petroleum Ltd.

      237,842        5,338  

Woolworths Ltd.

      405,854        7,042  
  

 

 

     

 

 

  
        285,639  
     

 

 

  

Austria - 0.2%

      

ANDRITZ A.G.

      21,590        1,084  

Erste Group Bank A.G.*

      96,525        2,826  

Immoeast A.G.* (2)

     62,543        —    

OMV A.G.

      46,732        1,646  

Raiffeisen Bank International A.G.*

      41,033        751  

voestalpine A.G.

      34,460        1,353  
  

 

 

     

 

 

  
        7,660  
     

 

 

  

Belgium - 1.2%

      

Ageas

      61,236        2,423  

Anheuser-Busch InBev S.A./N.V.

      239,462        25,289  

Colruyt S.A.

      20,074        993  

Groupe Bruxelles Lambert S.A.

      25,770        2,162  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Belgium - 1.2% continued

      

KBC Group N.V.

      78,050      $ 4,831  

Proximus SADP

      45,991        1,324  

Solvay S.A., Class A

      23,339        2,732  

Telenet Group Holding N.V.*

      16,909        938  

UCB S.A.

      39,339        2,518  

Umicore S.A.

      30,267        1,723  
  

 

 

     

 

 

  
        44,933  
     

 

 

  

Chile - 0.0%

      

Antofagasta PLC

      131,367        1,082  
  

 

 

     

 

 

  

China - 0.0%

      

Yangzijiang Shipbuilding Holdings Ltd.

      664,766        372  
  

 

 

     

 

 

  

Denmark - 1.6%

      

AP Moller - Maersk A/S, Class A

      1,234        1,858  

AP Moller - Maersk A/S, Class B

      2,100        3,341  

Carlsberg A/S, Class B

      34,323        2,962  

Chr Hansen Holding A/S

      31,439        1,739  

Coloplast A/S, Class B

      37,349        2,513  

Danske Bank A/S

      218,812        6,637  

DONG Energy A/S* (3)

     27,947        1,058  

DSV A/S

      59,268        2,637  

Genmab A/S*

      18,359        3,043  

ISS A/S

      53,187        1,792  

Novo Nordisk A/S, Class B

      600,654        21,575  

Novozymes A/S, Class B

      71,774        2,470  

Pandora A/S

      35,166        4,593  

TDC A/S*

      244,737        1,257  

Tryg A/S

      35,998        651  

Vestas Wind Systems A/S

      68,791        4,471  

William Demant Holding A/S*

      40,897        711  
  

 

 

     

 

 

  
        63,308  
     

 

 

  

Finland - 1.0%

      

Elisa OYJ

      45,970        1,494  

Fortum OYJ

      141,907        2,172  

Kone OYJ, Class B

      105,756        4,738  

Metso OYJ

      37,107        1,056  

Neste OYJ

      40,673        1,561  

Nokia OYJ

      105,543        506  

Nokia OYJ (Helsinki Exchange)

      1,723,048        8,287  

Nokian Renkaat OYJ

      35,730        1,332  

Orion OYJ, Class B

      31,855        1,418  

Sampo OYJ, Class A

      140,704        6,292  

Stora Enso OYJ (Registered)

      175,256        1,878  

UPM-Kymmene OYJ

      166,128        4,071  

Wartsila OYJ Abp

      45,648        2,050  
  

 

 

     

 

 

  
        36,855  
     

 

 

  

France - 9.9%

      

Accor S.A.

      53,647        2,000  

Aeroports de Paris

      10,008        1,072  

Air Liquide S.A.

      121,952        13,538  

Airbus Group S.E.

      181,658        11,989  

Alstom S.A.*

      45,301        1,247  

Arkema S.A.

      21,694        2,119  

Atos S.E.

      28,575        3,014  

AXA S.A.

      611,529        15,431  

BNP Paribas S.A.

      334,738        21,323  

Bollore S.A.

      294,346        1,037  

Bollore S.A. (Euronext Paris Exchange)*

      1,982        7  

Bouygues S.A.

      62,434        2,235  

Bureau Veritas S.A.

      84,215        1,632  

Capgemini S.A.

      50,768        4,282  

Carrefour S.A.

      175,966        4,233  

Casino Guichard Perrachon S.A.

      19,048        914  

Christian Dior S.E.

      17,541        3,675  

Cie de Saint-Gobain

      155,907        7,260  

Cie Generale des Etablissements Michelin

      56,835        6,322  

CNP Assurances

      55,080        1,020  

Credit Agricole S.A.

      346,887        4,301  

Danone S.A.

      184,984        11,709  

Dassault Aviation S.A.

      638        712  

Dassault Systemes S.E.

      41,338        3,149  

Edenred

      60,894        1,207  

Eiffage S.A.

      19,509        1,360  

Electricite de France S.A.

      88,318        897  

Engie S.A.

      454,611        5,792  

Essilor International S.A.

      64,700        7,309  

Eurazeo S.A.

      13,439        786  

Eurofins Scientific S.E.

      3,292        1,402  

Eutelsat Communications S.A.

      53,854        1,043  

Fonciere Des Regions

      11,296        985  

Gecina S.A.

      13,389        1,851  

Groupe Eurotunnel S.E. (Registered)

      147,831        1,403  

Hermes International

      8,488        3,481  

 

EQUITY INDEX FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

 

   

France - 9.9% continued

      

ICADE

      12,464      $ 889  

Iliad S.A.

      8,384        1,610  

Imerys S.A.

      11,926        904  

Ingenico Group S.A.

      17,474        1,395  

JCDecaux S.A.

      25,793        757  

Kering

      23,517        5,272  

Klepierre

      70,529        2,770  

Lagardere S.C.A.

      39,512        1,098  

Legrand S.A.

      82,624        4,679  

L’Oreal S.A.

      79,037        14,408  

LVMH Moet Hennessy Louis Vuitton S.E.

      88,106        16,800  

Natixis S.A.

      299,296        1,688  

Orange S.A.

      624,352        9,475  

Pernod Ricard S.A.

      67,573        7,320  

Peugeot S.A.*

      153,018        2,495  

Publicis Groupe S.A.

      60,238        4,156  

Remy Cointreau S.A.

      6,873        586  

Renault S.A.

      61,063        5,430  

Rexel S.A.

      95,877        1,575  

Safran S.A.

      99,527        7,166  

Sanofi

      364,732        29,498  

Schneider Electric S.E.

      4,873        336  

Schneider Electric S.E. (Euronext Paris Exchange)

      171,341        11,906  

SCOR S.E.

      53,429        1,846  

SEB S.A.

      7,613        1,032  

SES S.A.

      114,879        2,530  

SFR Group S.A.*

      29,559        833  

Societe BIC S.A.

      8,906        1,211  

Societe Generale S.A.

      240,495        11,806  

Sodexo S.A.

      29,162        3,351  

Suez

      103,458        1,526  

Technip S.A.

      33,821        2,400  

Thales S.A.

      33,614        3,257  

TOTAL S.A.

      698,135        35,638  

Unibail-Rodamco S.E.

      31,604        7,534  

Valeo S.A.

      76,327        4,386  

Veolia Environnement S.A.

      153,410        2,608  

Vinci S.A.

      158,580        10,786  

Vivendi S.A.

      328,377        6,238  

Wendel S.A.

      9,230        1,111  

Zodiac Aerospace

      63,299        1,453  
  

 

 

     

 

 

  
        383,496  
     

 

 

  

Germany - 8.7%

      

adidas A.G.

      59,043        9,331  

Allianz S.E. (Registered)

      143,729        23,759  

Axel Springer S.E.

      14,229        690  

BASF S.E.

      288,924        26,945  

Bayer A.G. (Registered)

      260,137        27,139  

Bayerische Motoren Werke A.G.

      103,865        9,724  

Beiersdorf A.G.

      31,796        2,698  

Brenntag A.G.

      48,714        2,700  

Commerzbank A.G.

      335,794        2,561  

Continental A.G.

      34,438        6,704  

Covestro A.G.(3)

     22,460        1,545  

Daimler A.G. (Registered)

      302,796        22,472  

Deutsche Bank A.G. (Registered)*

      432,293        7,823  

Deutsche Boerse A.G.*

      65,701        5,353  

Deutsche Lufthansa A.G. (Registered)

      76,305        986  

Deutsche Post A.G. (Registered)

      304,375        9,995  

Deutsche Telekom A.G. (Registered)

      1,034,849        17,778  

Deutsche Wohnen A.G. (Bearer)

      104,948        3,291  

E.ON S.E.

      623,290        4,347  

Evonik Industries A.G.

      51,721        1,540  

Fraport A.G. Frankfurt Airport Services Worldwide

      12,853        759  

Fresenius Medical Care A.G. & Co. KGaA

      68,228        5,785  

Fresenius S.E. & Co. KGaA

      128,550        10,042  

GEA Group A.G.

      57,434        2,302  

Hannover Rueck S.E.

      18,366        1,988  

HeidelbergCement A.G.

      46,331        4,323  

Henkel A.G. & Co. KGaA

      32,325        3,358  

HOCHTIEF A.G.

      6,969        975  

HUGO BOSS A.G.

      20,745        1,280  

Infineon Technologies A.G.

      354,676        6,147  

Innogy S.E.* (3)

     43,239        1,503  

K+S A.G. (Registered)

      60,542        1,447  

LANXESS A.G.

      29,161        1,911  

Linde A.G.

      58,261        9,553  

MAN S.E.

      10,673        1,060  

Merck KGaA

      40,216        4,197  

METRO A.G.

      54,854        1,820  

Muenchener Rueckversicherungs-Gesellschaft A.G. in Muenchen (Registered)

      50,515        9,554  

OSRAM Licht A.G.

      28,153        1,478  

ProSiebenSat.1 Media S.E.

      74,735        2,889  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Germany - 8.7% continued

      

RTL Group S.A.

      12,999      $ 953  

RWE A.G.*

      153,288        1,906  

SAP S.E.

      309,160        27,019  

Siemens A.G. (Registered)

      240,680        29,585  

Symrise A.G.

      38,798        2,360  

Telefonica Deutschland Holding A.G.

      248,034        1,060  

thyssenkrupp A.G.

      118,055        2,813  

TUI A.G. - CDI

      82,086        1,149  

TUI A.G. - CDI (London Exchange)

      73,231        1,046  

United Internet A.G. (Registered)

      38,943        1,516  

Volkswagen A.G.

      10,453        1,501  

Vonovia S.E.

      145,382        4,736  

Zalando S.E.* (3)

     28,358        1,083  
  

 

 

     

 

 

  
        336,479  
     

 

 

  

Hong Kong - 3.2%

      

AIA Group Ltd.

      3,787,286        21,195  

ASM Pacific Technology Ltd.

      43,000        455  

Bank of East Asia (The) Ltd.

      368,514        1,406  

BOC Hong Kong Holdings Ltd.

      1,150,108        4,118  

Cathay Pacific Airways Ltd.

      404,506        532  

Cheung Kong Infrastructure Holdings Ltd.

      215,353        1,713  

Cheung Kong Property Holdings Ltd.

      786,638        4,770  

CK Hutchison Holdings Ltd.

      854,638        9,648  

CLP Holdings Ltd.

      513,514        4,692  

First Pacific Co. Ltd.

      749,539        524  

Galaxy Entertainment Group Ltd.

      754,148        3,244  

Hang Lung Group Ltd.

      290,000        1,008  

Hang Lung Properties Ltd.

      712,501        1,492  

Hang Seng Bank Ltd.

      237,879        4,409  

Henderson Land Development Co. Ltd.

      354,156        1,870  

HK Electric Investments & HK Electric Investments Ltd.(3)

     883,727        729  

HKT Trust & HKT Ltd.

      896,220        1,097  

Hong Kong & China Gas Co. Ltd.

      2,372,272        4,193  

Hong Kong Exchanges & Clearing Ltd.

      364,952        8,588  

Hongkong Land Holdings Ltd.

      355,400        2,243  

Hysan Development Co. Ltd.

      212,501        876  

Jardine Matheson Holdings Ltd.

      77,400        4,270  

Kerry Properties Ltd.

      212,203        572  

Li & Fung Ltd.

      1,969,218        861  

Link REIT

      698,271        4,509  

Melco Crown Entertainment Ltd. ADR

      63,300        1,006  

MGM China Holdings Ltd.

      330,516        682  

MTR Corp. Ltd.

      470,837        2,276  

New World Development Co. Ltd.

      1,794,669        1,881  

NWS Holdings Ltd.

      514,854        837  

PCCW Ltd.

      1,401,926        755  

Power Assets Holdings Ltd.

      430,317        3,791  

Sands China Ltd.

      777,899        3,346  

Shangri-La Asia Ltd.

      432,574        456  

Sino Land Co. Ltd.

      939,906        1,391  

SJM Holdings Ltd.

      687,572        537  

Sun Hung Kai Properties Ltd.

      461,258        5,775  

Swire Pacific Ltd., Class A

      176,551        1,685  

Swire Properties Ltd.

      393,787        1,079  

Techtronic Industries Co. Ltd.

      451,333        1,617  

WH Group Ltd.(3)

     2,570,213        2,069  

Wharf Holdings (The) Ltd.

      428,766        2,818  

Wheelock & Co. Ltd.

      248,021        1,392  

Wynn Macau Ltd.

      513,746        813  

Yue Yuen Industrial Holdings Ltd.

      249,210        902  
  

 

 

     

 

 

  
        124,122  
     

 

 

  

Ireland - 0.8%

      

AerCap Holdings N.V.*

      50,200        2,089  

Bank of Ireland*

      8,882,186        2,184  

CRH PLC

      30,814        1,070  

CRH PLC (Dublin Exchange)

      228,772        7,907  

DCC PLC

      27,436        2,034  

Experian PLC

      304,463        5,893  

Irish Bank Resolution Corp. Ltd.*(2)

      99,788        —    

James Hardie Industries PLC - CDI

      135,708        2,149  

Kerry Group PLC, Class A

      50,947        3,643  

Paddy Power Betfair PLC

      25,521        2,727  

Ryanair Holdings PLC*

      3,071        47  

Ryanair Holdings PLC ADR*

      5,723        476  
  

 

 

     

 

 

  
        30,219  
     

 

 

  

Israel - 0.7%

      

Azrieli Group Ltd.

      14,093        610  

Bank Hapoalim B.M.

      339,908        2,018  

Bank Leumi Le-Israel B.M.*

      441,145        1,813  

Bezeq The Israeli Telecommunication Corp. Ltd.

      639,099        1,214  

Check Point Software Technologies Ltd.*

      41,400        3,497  

Elbit Systems Ltd.

      7,501        757  

 

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Israel - 0.7% continued

      

Frutarom Industries Ltd.

      12,600      $ 643  

Israel Chemicals Ltd.

      177,677        726  

Mizrahi Tefahot Bank Ltd.

      47,878        699  

Mobileye N.V.*

      54,200        2,066  

Nice Ltd.

      18,984        1,302  

Taro Pharmaceutical Industries Ltd.*

      5,000        526  

Teva Pharmaceutical Industries Ltd. ADR

      285,995        10,367  
  

 

 

     

 

 

  
        26,238  
     

 

 

  

Italy - 1.9%

      

Assicurazioni Generali S.p.A.

      367,557        5,459  

Atlantia S.p.A.

      130,312        3,049  

Enel S.p.A.

      2,391,057        10,522  

Eni S.p.A.

      798,501        12,946  

Ferrari N.V.

      12,434        723  

Ferrari N.V. (New York Exchange)

      26,244        1,526  

Intesa Sanpaolo S.p.A.

      3,978,487        10,156  

Intesa Sanpaolo S.p.A. (RSP)

      325,825        766  

Leonardo-Finmeccanica S.p.A.*

      128,809        1,806  

Luxottica Group S.p.A.

      54,341        2,927  

Mediobanca S.p.A.

      140,944        1,150  

Poste Italiane S.p.A.(3)

     157,198        1,043  

Prysmian S.p.A.

      61,877        1,588  

Saipem S.p.A.*

      2,046,612        1,145  

Snam S.p.A.

      786,821        3,237  

Telecom Italia S.p.A.*

      3,243,686        2,856  

Telecom Italia S.p.A. (RSP)*

      1,868,557        1,351  

Tenaris S.A.

      148,657        2,650  

Terna Rete Elettrica Nazionale S.p.A.

      465,466        2,129  

UniCredit S.p.A.

      1,647,491        4,736  

UnipolSai S.p.A.

      388,475        829  
  

 

 

     

 

 

  
        72,594  
     

 

 

  

Japan - 23.8%

      

ABC-Mart, Inc.

      11,000        622  

Acom Co. Ltd.*

      139,300        608  

Aeon Co. Ltd.

      205,900        2,913  

AEON Financial Service Co. Ltd.

      38,800        686  

Aeon Mall Co. Ltd.

      39,780        558  

Air Water, Inc.

      42,169        759  

Aisin Seiki Co. Ltd.

      60,100        2,601  

Ajinomoto Co., Inc.

      172,400        3,467  

Alfresa Holdings Corp.

      64,000        1,055  

Alps Electric Co. Ltd.

      54,700        1,317  

Amada Holdings Co. Ltd.

      101,900        1,135  

ANA Holdings, Inc.

      345,000        928  

Aozora Bank Ltd.

      357,000        1,263  

Asahi Glass Co. Ltd.

      305,000        2,072  

Asahi Group Holdings Ltd.

      123,300        3,888  

Asahi Kasei Corp.

      402,000        3,500  

Asics Corp.

      53,500        1,066  

Astellas Pharma, Inc.

      681,900        9,452  

Bandai Namco Holdings, Inc.

      64,800        1,784  

Bank of Kyoto (The) Ltd.

      100,971        748  

Benesse Holdings, Inc.

      23,100        636  

Bridgestone Corp.

      203,700        7,327  

Brother Industries Ltd.

      77,100        1,386  

Calbee, Inc.

      27,000        845  

Canon, Inc.

      338,100        9,468  

Casio Computer Co. Ltd.

      77,100        1,087  

Central Japan Railway Co.

      45,100        7,407  

Chiba Bank (The) Ltd.

      212,000        1,296  

Chubu Electric Power Co., Inc.

      203,100        2,833  

Chugai Pharmaceutical Co. Ltd.

      67,555        1,935  

Chugoku Bank (The) Ltd.

      54,800        784  

Chugoku Electric Power (The) Co., Inc.

      81,100        950  

Concordia Financial Group Ltd.

      350,200        1,679  

Credit Saison Co. Ltd.

      47,600        847  

CYBERDYNE, Inc.*

      35,100        495  

Dai Nippon Printing Co. Ltd.

      164,000        1,617  

Daicel Corp.

      92,200        1,012  

Dai-ichi Life Holdings, Inc.

      332,600        5,511  

Daiichi Sankyo Co. Ltd.

      191,000        3,901  

Daikin Industries Ltd.

      72,600        6,649  

Daito Trust Construction Co. Ltd.

      22,300        3,349  

Daiwa House Industry Co. Ltd.

      174,100        4,749  

Daiwa House REIT Investment Corp.

      430        1,087  

Daiwa Securities Group, Inc.

      518,000        3,182  

DeNA Co. Ltd.

      35,300        769  

Denso Corp.

      148,800        6,428  

Dentsu, Inc.

      68,518        3,227  

Don Quijote Holdings Co. Ltd.

      35,800        1,322  

East Japan Railway Co.

      104,712        9,033  

Eisai Co. Ltd.

      80,100        4,579  

Electric Power Development Co. Ltd.

      48,200        1,108  

FamilyMart UNY Holdings Co. Ltd.

      25,400        1,687  

FANUC Corp.

      61,500        10,400  

Fast Retailing Co. Ltd.

      16,400        5,851  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Japan - 23.8% continued

      

Fuji Electric Co. Ltd.

      179,000      $ 926  

Fuji Heavy Industries Ltd.

      192,900        7,846  

FUJIFILM Holdings Corp.

      139,300        5,278  

Fujitsu Ltd.

      592,000        3,279  

Fukuoka Financial Group, Inc.

      259,000        1,147  

Hachijuni Bank (The) Ltd.

      142,395        823  

Hakuhodo DY Holdings, Inc.

      71,500        879  

Hamamatsu Photonics K.K.

      41,470        1,088  

Hankyu Hanshin Holdings, Inc.

      72,500        2,322  

Hikari Tsushin, Inc.

      7,100        661  

Hino Motors Ltd.

      85,200        865  

Hirose Electric Co. Ltd.

      9,760        1,207  

Hiroshima Bank (The) Ltd.

      174,000        810  

Hisamitsu Pharmaceutical Co., Inc.

      20,900        1,043  

Hitachi Chemical Co. Ltd.

      29,400        734  

Hitachi Construction Machinery Co. Ltd.

      33,700        728  

Hitachi High-Technologies Corp.

      22,800        918  

Hitachi Ltd.

      1,516,000        8,168  

Hitachi Metals Ltd.

      70,700        955  

Hokuriku Electric Power Co.

      58,600        656  

Honda Motor Co. Ltd.

      509,900        14,845  

Hoshizaki Corp.

      15,200        1,202  

Hoya Corp.

      122,300        5,126  

Hulic Co. Ltd.

      100,000        887  

Idemitsu Kosan Co. Ltd.

      30,500        808  

IHI Corp.*

      450,000        1,167  

Iida Group Holdings Co. Ltd.

      49,264        933  

Inpex Corp.

      301,000        3,005  

Isetan Mitsukoshi Holdings Ltd.

      96,660        1,039  

Isuzu Motors Ltd.

      180,200        2,275  

ITOCHU Corp.

      462,900        6,136  

J Front Retailing Co. Ltd.

      78,600        1,056  

Japan Airlines Co. Ltd.

      36,200        1,056  

Japan Airport Terminal Co. Ltd.

      16,200        585  

Japan Exchange Group, Inc.

      163,600        2,343  

Japan Post Bank Co. Ltd.

      131,000        1,569  

Japan Post Holdings Co. Ltd.

      146,400        1,824  

Japan Prime Realty Investment Corp.

      280        1,103  

Japan Real Estate Investment Corp.

      396        2,160  

Japan Retail Fund Investment Corp.

      830        1,681  

Japan Tobacco, Inc.

      343,000        11,269  

JFE Holdings, Inc.

      164,100        2,490  

JGC Corp.

      69,300        1,255  

JSR Corp.

      64,300        1,012  

JTEKT Corp.

      74,700        1,191  

JX Holdings, Inc.

      669,997        2,825  

Kajima Corp.

      292,000        2,016  

Kakaku.com, Inc.

      48,300        799  

Kamigumi Co. Ltd.

      74,000        704  

Kaneka Corp.

      92,000        748  

Kansai Electric Power (The) Co., Inc.*

      214,000        2,336  

Kansai Paint Co. Ltd.

      65,500        1,205  

Kao Corp.

      157,800        7,466  

Kawasaki Heavy Industries Ltd.

      431,000        1,345  

KDDI Corp.

      573,500        14,480  

Keihan Holdings Co. Ltd.

      171,000        1,120  

Keikyu Corp.

      145,000        1,678  

Keio Corp.

      178,000        1,461  

Keisei Electric Railway Co. Ltd.

      39,800        964  

Keyence Corp.

      15,139        10,373  

Kikkoman Corp.

      45,000        1,437  

Kintetsu Group Holdings Co. Ltd.

      590,000        2,248  

Kirin Holdings Co. Ltd.

      261,100        4,239  

Kobe Steel Ltd.*

      103,500        983  

Koito Manufacturing Co. Ltd.

      35,014        1,849  

Komatsu Ltd.

      288,500        6,512  

Konami Holdings Corp.

      27,100        1,092  

Konica Minolta, Inc.

      136,600        1,353  

Kose Corp.

      10,100        838  

Kubota Corp.

      338,300        4,816  

Kuraray Co. Ltd.

      109,600        1,640  

Kurita Water Industries Ltd.

      33,600        738  

Kyocera Corp.

      102,100        5,064  

Kyowa Hakko Kirin Co. Ltd.

      75,400        1,037  

Kyushu Electric Power Co., Inc.

      131,200        1,419  

Kyushu Financial Group, Inc.*

      109,400        740  

Lawson, Inc.

      20,000        1,404  

LINE Corp.*

      14,500        494  

Lion Corp.

      80,000        1,311  

LIXIL Group Corp.

      82,600        1,872  

M3, Inc.

      59,700        1,503  

Mabuchi Motor Co. Ltd.

      16,300        846  

Makita Corp.

      34,500        2,308  

Marubeni Corp.

      499,300        2,825  

Marui Group Co. Ltd.

      70,600        1,029  

Maruichi Steel Tube Ltd.

      18,800        610  

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Japan - 23.8% continued

      

Mazda Motor Corp.

      180,300      $ 2,929  

McDonald’s Holdings Co. Japan Ltd.

      21,900        572  

Mebuki Financial Group, Inc.

      312,010        1,153  

Medipal Holdings Corp.

      57,500        903  

MEIJI Holdings Co. Ltd.

      36,126        2,834  

Minebea Co. Ltd.

      112,700        1,053  

Miraca Holdings, Inc.

      19,141        857  

MISUMI Group, Inc.

      79,900        1,311  

Mitsubishi Chemical Holdings Corp.

      421,000        2,713  

Mitsubishi Corp.

      479,100        10,180  

Mitsubishi Electric Corp.

      606,300        8,429  

Mitsubishi Estate Co. Ltd.

      392,000        7,770  

Mitsubishi Gas Chemical Co., Inc.

      59,500        1,013  

Mitsubishi Heavy Industries Ltd.

      1,024,000        4,652  

Mitsubishi Logistics Corp.

      40,000        564  

Mitsubishi Materials Corp.

      37,400        1,142  

Mitsubishi Motors Corp.

      214,900        1,222  

Mitsubishi Tanabe Pharma Corp.

      67,700        1,326  

Mitsubishi UFJ Financial Group, Inc.

      3,998,795        24,584  

Mitsubishi UFJ Lease & Finance Co. Ltd.

      139,400        718  

Mitsui & Co. Ltd.

      534,300        7,328  

Mitsui Chemicals, Inc.

      270,000        1,210  

Mitsui Fudosan Co. Ltd.

      279,000        6,438  

Mitsui OSK Lines Ltd.

      373,000        1,030  

Mixi, Inc.

      13,900        506  

Mizuho Financial Group, Inc.

      7,536,389        13,492  

MS&AD Insurance Group Holdings, Inc.

      155,743        4,812  

Murata Manufacturing Co. Ltd.

      59,997        7,990  

Nabtesco Corp.

      37,799        877  

Nagoya Railroad Co. Ltd.

      282,000        1,362  

NEC Corp.

      787,000        2,079  

Nexon Co. Ltd.

      58,000        838  

NGK Insulators Ltd.

      81,200        1,571  

NGK Spark Plug Co. Ltd.

      51,600        1,142  

NH Foods Ltd.

      53,000        1,431  

Nidec Corp.

      74,500        6,407  

Nikon Corp.

      105,200        1,630  

Nintendo Co. Ltd.

      36,000        7,526  

Nippon Building Fund, Inc.

      443        2,455  

Nippon Electric Glass Co. Ltd.

      132,500        715  

Nippon Express Co. Ltd.

      251,000        1,348  

Nippon Paint Holdings Co. Ltd.

      50,000        1,355  

Nippon Prologis REIT, Inc.

      527        1,077  

Nippon Steel & Sumitomo Metal Corp.

      249,261        5,544  

Nippon Telegraph & Telephone Corp.

      218,956        9,204  

Nippon Yusen K.K.

      540,000        1,000  

Nissan Chemical Industries Ltd.

      40,700        1,357  

Nissan Motor Co. Ltd.

      756,500        7,590  

Nisshin Seifun Group, Inc.

      66,605        999  

Nissin Foods Holdings Co. Ltd.

      19,700        1,034  

Nitori Holdings Co. Ltd.

      25,200        2,880  

Nitto Denko Corp.

      52,700        4,035  

NOK Corp.

      33,200        671  

Nomura Holdings, Inc.

      1,135,600        6,694  

Nomura Real Estate Holdings, Inc.

      43,400        737  

Nomura Real Estate Master Fund, Inc.

      1,190        1,800  

Nomura Research Institute Ltd.

      43,274        1,315  

NSK Ltd.

      136,100        1,570  

NTT Data Corp.

      41,100        1,983  

NTT DOCOMO, Inc.

      439,100        9,985  

Obayashi Corp.

      211,200        2,013  

Obic Co. Ltd.

      21,900        955  

Odakyu Electric Railway Co. Ltd.

      87,100        1,721  

Oji Holdings Corp.

      242,000        984  

Olympus Corp.

      92,000        3,172  

Omron Corp.

      59,400        2,273  

Ono Pharmaceutical Co. Ltd.

      130,200        2,839  

Oracle Corp. Japan

      12,500        629  

Oriental Land Co. Ltd.

      69,600        3,929  

ORIX Corp.

      413,400        6,405  

Osaka Gas Co. Ltd.

      611,000        2,347  

Otsuka Corp.

      17,000        792  

Otsuka Holdings Co. Ltd.

      122,915        5,348  

Panasonic Corp.

      690,900        7,012  

Park24 Co. Ltd.

      34,400        932  

Pola Orbis Holdings, Inc.

      8,000        660  

Rakuten, Inc.

      294,700        2,884  

Recruit Holdings Co. Ltd.

      117,400        4,701  

Resona Holdings, Inc.

      702,510        3,616  

Ricoh Co. Ltd.

      219,100        1,849  

Rinnai Corp.

      11,500        926  

Rohm Co. Ltd.

      29,200        1,676  

Ryohin Keikaku Co. Ltd.

      7,300        1,427  

Sankyo Co. Ltd.

      14,700        474  

Santen Pharmaceutical Co. Ltd.

      114,100        1,393  

SBI Holdings, Inc.

      62,760        796  

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Japan - 23.8% continued

      

Secom Co. Ltd.

      67,200      $ 4,904  

Sega Sammy Holdings, Inc.

      61,800        918  

Seibu Holdings, Inc.

      57,400        1,027  

Seiko Epson Corp.

      91,300        1,929  

Sekisui Chemical Co. Ltd.

      121,300        1,930  

Sekisui House Ltd.

      190,200        3,159  

Seven & i Holdings Co. Ltd.

      238,500        9,076  

Seven Bank Ltd.

      179,700        516  

Sharp Corp.*

      504,000        1,161  

Shimadzu Corp.

      68,000        1,081  

Shimamura Co. Ltd.

      7,400        923  

Shimano, Inc.

      23,600        3,694  

Shimizu Corp.

      170,000        1,552  

Shin-Etsu Chemical Co. Ltd.

      123,200        9,495  

Shinsei Bank Ltd.

      597,000        1,004  

Shionogi & Co. Ltd.

      94,700        4,519  

Shiseido Co. Ltd.

      120,300        3,039  

Shizuoka Bank (The) Ltd.

      161,000        1,349  

Showa Shell Sekiyu K.K.

      65,400        608  

SMC Corp.

      18,300        4,355  

SoftBank Group Corp.

      303,400        20,030  

Sohgo Security Services Co. Ltd.

      24,100        924  

Sompo Holdings, Inc.

      112,645        3,804  

Sony Corp.

      393,600        10,939  

Sony Financial Holdings, Inc.

      56,300        873  

Stanley Electric Co. Ltd.

      45,300        1,235  

Start Today Co. Ltd.

      58,200        998  

Sumitomo Chemical Co. Ltd.

      486,000        2,299  

Sumitomo Corp.

      380,000        4,464  

Sumitomo Dainippon Pharma Co. Ltd.

      53,400        917  

Sumitomo Electric Industries Ltd.

      239,600        3,440  

Sumitomo Heavy Industries Ltd.

      184,000        1,182  

Sumitomo Metal Mining Co. Ltd.

      147,000        1,891  

Sumitomo Mitsui Financial Group, Inc.

      420,442        15,939  

Sumitomo Mitsui Trust Holdings, Inc.

      105,819        3,760  

Sumitomo Realty & Development Co. Ltd.

      113,000        2,994  

Sumitomo Rubber Industries Ltd.

      56,400        892  

Sundrug Co. Ltd.

      12,400        857  

Suntory Beverage & Food Ltd.

      45,200        1,870  

Suruga Bank Ltd.

      52,400        1,167  

Suzuken Co. Ltd.

      25,836        843  

Suzuki Motor Corp.

      108,800        3,819  

Sysmex Corp.

      49,298        2,850  

T&D Holdings, Inc.

      179,000        2,357  

Taiheiyo Cement Corp.

      395,000        1,246  

Taisei Corp.

      325,000        2,272  

Taisho Pharmaceutical Holdings Co. Ltd.

      12,200        1,011  

Taiyo Nippon Sanso Corp.

      45,300        523  

Takashimaya Co. Ltd.

      101,000        831  

Takeda Pharmaceutical Co. Ltd.

      225,200        9,301  

TDK Corp.

      38,200        2,619  

Teijin Ltd.

      53,800        1,088  

Terumo Corp.

      108,900        4,012  

THK Co. Ltd.

      39,300        866  

Tobu Railway Co. Ltd.

      297,000        1,472  

Toho Co. Ltd.

      38,100        1,077  

Toho Gas Co. Ltd.

      127,000        1,031  

Tohoku Electric Power Co., Inc.

      140,700        1,775  

Tokio Marine Holdings, Inc.

      215,900        8,828  

Tokyo Electric Power Co. Holdings, Inc.*

      428,100        1,725  

Tokyo Electron Ltd.

      49,800        4,695  

Tokyo Gas Co. Ltd.

      608,000        2,745  

Tokyo Tatemono Co. Ltd.

      65,400        873  

Tokyu Corp.

      328,000        2,406  

Tokyu Fudosan Holdings Corp.

      172,100        1,014  

TonenGeneral Sekiyu K.K.

      98,000        1,031  

Toppan Printing Co. Ltd.

      162,000        1,544  

Toray Industries, Inc.

      468,000        3,783  

Toshiba Corp.*

      1,288,000        3,112  

TOTO Ltd.

      43,900        1,732  

Toyo Seikan Group Holdings Ltd.

      55,100        1,026  

Toyo Suisan Kaisha Ltd.

      29,800        1,078  

Toyoda Gosei Co. Ltd.

      22,400        522  

Toyota Industries Corp.

      49,500        2,351  

Toyota Motor Corp.

      839,844        49,030  

Toyota Tsusho Corp.

      65,900        1,712  

Trend Micro, Inc.

      33,800        1,199  

Tsuruha Holdings, Inc.

      10,800        1,022  

Unicharm Corp.

      127,100        2,776  

United Urban Investment Corp.

      955        1,453  

USS Co. Ltd.

      74,100        1,178  

West Japan Railway Co.

      52,100        3,193  

Yahoo Japan Corp.

      440,900        1,692  

Yakult Honsha Co. Ltd.

      26,400        1,222  

Yamada Denki Co. Ltd.

      212,390        1,142  

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Japan - 23.8% continued

      

Yamaguchi Financial Group, Inc.

      69,000      $ 750  

Yamaha Corp.

      51,800        1,579  

Yamaha Motor Co. Ltd.

      83,100        1,823  

Yamato Holdings Co. Ltd.

      105,900        2,147  

Yamazaki Baking Co. Ltd.

      44,505        859  

Yaskawa Electric Corp.

      76,000        1,179  

Yokogawa Electric Corp.

      76,400        1,103  

Yokohama Rubber (The) Co. Ltd.

      38,400        685  
  

 

 

     

 

 

  
        923,546  
     

 

 

  

Jordan - 0.0%

      

Hikma Pharmaceuticals PLC

      44,461        1,031  
  

 

 

     

 

 

  

Mexico - 0.0%

      

Fresnillo PLC

      67,903        1,008  
  

 

 

     

 

 

  

Netherlands - 4.5%

      

ABN AMRO Group N.V. - CVA(3)

     89,983        1,993  

Aegon N.V.

      566,882        3,117  

Akzo Nobel N.V.

      77,912        4,866  

Altice N.V., Class A*

      116,621        2,307  

Altice N.V., Class B*

      33,370        664  

ArcelorMittal*

      570,871        4,209  

ASML Holding N.V.

      116,565        13,060  

Boskalis Westminster

      29,990        1,040  

EXOR N.V.

      35,718        1,540  

Gemalto N.V.

      20,249        1,169  

Gemalto N.V. (Euronext Paris Exchange)

      3,862        223  

Heineken Holding N.V.

      31,691        2,204  

Heineken N.V.

      72,565        5,435  

ING Groep N.V.

      1,217,756        17,137  

Koninklijke Ahold Delhaize N.V.

      400,960        8,439  

Koninklijke DSM N.V.

      57,388        3,436  

Koninklijke KPN N.V.

      1,097,108        3,249  

Koninklijke Philips N.V.

      296,919        9,050  

Koninklijke Vopak N.V.

      23,633        1,115  

NN Group N.V.

      101,334        3,432  

NXP Semiconductors N.V.*

      92,986        9,114  

QIAGEN N.V.*

      71,706        2,012  

Randstad Holding N.V.

      36,444        1,974  

Royal Dutch Shell PLC, Class A

      1,361,231        37,508  

Royal Dutch Shell PLC, Class A (London Exchange)

      304        8  

Royal Dutch Shell PLC, Class B

      1,178,728        33,636  

Wolters Kluwer N.V.

      97,068        3,510  
  

 

 

     

 

 

  
        175,447  
     

 

 

  

New Zealand - 0.2%

      

Auckland International Airport Ltd.

      287,381        1,245  

Contact Energy Ltd.

      242,459        783  

Fletcher Building Ltd.

      220,066        1,616  

Mercury NZ Ltd.

      213,739        438  

Meridian Energy Ltd.

      411,489        742  

Ryman Healthcare Ltd.

      124,853        704  

Spark New Zealand Ltd.

      554,707        1,312  
  

 

 

     

 

 

  
        6,840  
     

 

 

  

Norway - 0.7%

      

DNB ASA

      303,760        4,518  

Gjensidige Forsikring ASA

      67,330        1,068  

Marine Harvest ASA*

      117,118        2,112  

Norsk Hydro ASA

      410,664        1,960  

Orkla ASA

      249,948        2,261  

Schibsted ASA, Class A

      24,619        565  

Schibsted ASA, Class B

      29,755        631  

Statoil ASA

      352,127        6,416  

Telenor ASA

      241,643        3,603  

Yara International ASA

      54,343        2,140  
  

 

 

     

 

 

  
        25,274  
     

 

 

  

Portugal - 0.1%

      

Banco Espirito Santo S.A. (Registered)*

      882,815        9  

EDP - Energias de Portugal S.A.

      726,359        2,212  

Galp Energia SGPS S.A.

      155,825        2,317  

Jeronimo Martins SGPS S.A.

      77,752        1,206  
  

 

 

     

 

 

  
        5,744  
     

 

 

  

Singapore - 1.2%

      

Ascendas Real Estate Investment Trust

      797,879        1,247  

CapitaLand Commercial Trust

      717,700        729  

CapitaLand Ltd.

      843,350        1,752  

CapitaLand Mall Trust

      734,300        952  

City Developments Ltd.

      131,200        747  

ComfortDelGro Corp. Ltd.

      641,100        1,089  

DBS Group Holdings Ltd.

      563,378        6,722  

Genting Singapore PLC

      1,801,380        1,120  

Global Logistic Properties Ltd.

      802,939        1,216  

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Singapore - 1.2% continued

      

Golden Agri-Resources Ltd.

      2,458,692      $ 726  

Hutchison Port Holdings Trust, Class U

      1,748,600        760  

Jardine Cycle & Carriage Ltd.

      33,173        939  

Keppel Corp. Ltd.

      473,050        1,880  

Oversea-Chinese Banking Corp. Ltd.

      986,044        6,050  

SATS Ltd.

      229,600        767  

Sembcorp Industries Ltd.

      343,444        674  

Singapore Airlines Ltd.

      181,334        1,208  

Singapore Exchange Ltd.

      248,700        1,229  

Singapore Press Holdings Ltd.

      494,895        1,204  

Singapore Technologies Engineering Ltd.

      526,400        1,169  

Singapore Telecommunications Ltd.

      2,533,025        6,357  

StarHub Ltd.

      211,500        409  

Suntec Real Estate Investment Trust

      725,300        822  

United Overseas Bank Ltd.

      405,744        5,694  

UOL Group Ltd.

      160,075        659  

Wilmar International Ltd.

      609,500        1,504  
  

 

 

     

 

 

  
        47,625  
     

 

 

  

South Africa - 0.1%

      

Investec PLC

      206,403        1,365  

Mediclinic International PLC

      115,325        1,090  

Mondi PLC

      115,501        2,360  
  

 

 

     

 

 

  
        4,815  
     

 

 

  

Spain - 3.1%

      

Abertis Infraestructuras S.A.

      201,084        2,813  

ACS Actividades de Construccion y Servicios S.A.

      57,539        1,814  

Aena S.A.(3)

     21,110        2,880  

Amadeus IT Group S.A.

      137,636        6,253  

Banco Bilbao Vizcaya Argentaria S.A.

      2,069,726        13,963  

Banco de Sabadell S.A.

      1,662,732        2,314  

Banco Popular Espanol S.A.

      1,136,447        1,098  

Banco Santander S.A.

      4,593,172        23,977  

Bankia S.A.

      1,391,695        1,422  

Bankinter S.A.

      214,312        1,660  

CaixaBank S.A.

      1,041,794        3,441  

Distribuidora Internacional de Alimentacion S.A.

      210,864        1,035  

Enagas S.A.

      73,949        1,877  

Endesa S.A.

      101,434        2,148  

Ferrovial S.A.

      154,873        2,770  

Gas Natural SDG S.A.

      108,277        2,040  

Grifols S.A.

      94,866        1,885  

Iberdrola S.A.

      1,697,916        11,134  

Industria de Diseno Textil S.A.

      342,561        11,690  

Mapfre S.A.

      347,135        1,059  

Red Electrica Corp. S.A.

      133,423        2,516  

Repsol S.A.

      343,582        4,833  

Telefonica S.A.

      1,463,121        13,568  

Zardoya Otis S.A.

      65,012        549  
  

 

 

     

 

 

  
        118,739  
     

 

 

  

Sweden - 2.8%

      

Alfa Laval AB

      93,026        1,537  

Assa Abloy AB, Class B

      318,182        5,902  

Atlas Copco AB, Class A

      213,299        6,484  

Atlas Copco AB, Class B

      125,536        3,417  

Boliden AB

      85,745        2,234  

Electrolux AB, Class B

      76,577        1,901  

Getinge AB, Class B

      67,940        1,088  

Hennes & Mauritz AB, Class B

      296,465        8,230  

Hexagon AB, Class B

      77,951        2,780  

Husqvarna AB, Class B

      139,690        1,085  

ICA Gruppen AB

      27,052        824  

Industrivarden AB, Class C

      54,587        1,017  

Investor AB, Class B

      142,651        5,331  

Kinnevik AB, Class B

      76,903        1,842  

L E Lundbergforetagen AB, Class B

      12,816        786  

Lundin Petroleum AB*

      55,511        1,203  

Millicom International Cellular S.A. SDR

      22,428        958  

Nordea Bank AB

      950,351        10,565  

Sandvik AB

      330,124        4,075  

Securitas AB, Class B

      99,164        1,560  

Skandinaviska Enskilda Banken AB, Class A

      475,196        4,983  

Skanska AB, Class B

      106,796        2,517  

SKF AB, Class B

      124,762        2,290  

Svenska Cellulosa AB S.C.A., Class B

      190,472        5,371  

Svenska Handelsbanken AB, Class A

      483,678        6,720  

Swedbank AB, Class A

      287,805        6,956  

Swedish Match AB

      57,509        1,827  

Tele2 AB, Class B

      115,220        924  

 

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

      

Sweden - 2.8% continued

      

Telefonaktiebolaget LM Ericsson, Class B

      962,141      $ 5,609  

Telia Co. AB

      834,943        3,359  

Volvo AB, Class B

      483,336        5,632  
  

 

 

     

 

 

  
        109,007  
     

 

 

  

Switzerland - 9.1%

      

ABB Ltd. (Registered)*

      591,334        12,448  

Actelion Ltd. (Registered)*

      30,463        6,585  

Adecco Group A.G. (Registered)

      51,659        3,373  

Aryzta A.G.*

      21,953        967  

Aryzta A.G. (Dublin Exchange)*

      4,637        201  

Baloise Holding A.G. (Registered)

      15,451        1,943  

Barry Callebaut A.G. (Registered)*

      736        901  

Chocoladefabriken Lindt & Spruengli A.G. (Participation Certificate)

      315        1,632  

Chocoladefabriken Lindt & Spruengli A.G. (Registered)

      32        1,944  

Cie Financiere Richemont S.A. (Registered)

      163,881        10,851  

Coca-Cola HBC A.G. - CDI*

      56,040        1,221  

Credit Suisse Group A.G. (Registered)*

      628,136        8,969  

Dufry A.G. (Registered)*

      14,952        1,864  

EMS-Chemie Holding A.G. (Registered)

      2,529        1,285  

Galenica A.G. (Registered)

      1,232        1,387  

Geberit A.G. (Registered)

      11,572        4,631  

Givaudan S.A. (Registered)

      2,891        5,296  

Glencore PLC*

      3,843,208        12,917  

Julius Baer Group Ltd.*

      71,918        3,193  

Kuehne + Nagel International A.G. (Registered)

      16,568        2,187  

LafargeHolcim Ltd. (Registered)*

      84,913        4,461  

LafargeHolcim Ltd. (Registered) (Euronext Paris Exchange)*

      58,340        3,056  

Lonza Group A.G. (Registered)*

      16,973        2,934  

Nestle S.A. (Registered)

      980,037        70,294  

Novartis A.G. (Registered)

      703,054        51,139  

Pargesa Holding S.A. (Bearer)

      11,697        762  

Partners Group Holding A.G.

      5,483        2,566  

Roche Holding A.G. (Genusschein)

      221,193        50,400  

Schindler Holding A.G. (Participation Certificate)

      13,015        2,292  

Schindler Holding A.G. (Registered)

      6,164        1,077  

SGS S.A. (Registered)

      1,706        3,465  

Sika A.G. (Bearer)

      691        3,319  

Sonova Holding A.G. (Registered)

      16,299        1,972  

STMicroelectronics N.V.

      203,102        2,303  

Swatch Group (The) A.G. (Bearer)

      9,779        3,041  

Swatch Group (The) A.G. (Registered)

      16,314        997  

Swiss Life Holding A.G. (Registered)*

      10,162        2,875  

Swiss Prime Site A.G. (Registered)*

      22,377        1,831  

Swiss Re A.G.

      101,932        9,657  

Swisscom A.G. (Registered)

      8,075        3,610  

Syngenta A.G. (Registered)

      29,073        11,489  

UBS Group A.G. (Registered)

      1,156,999        18,113  

Wolseley PLC

      79,431        4,853  

Zurich Insurance Group A.G.*

      47,290        12,989  
  

 

 

     

 

 

  
        353,290  
     

 

 

  

United Kingdom - 15.5%

      

3i Group PLC

      309,881        2,692  

Aberdeen Asset Management PLC

      278,113        884  

Admiral Group PLC

      67,036        1,503  

Anglo American PLC*

      445,887        6,254  

Ashtead Group PLC

      161,151        3,122  

Associated British Foods PLC

      111,053        3,753  

AstraZeneca PLC

      397,720        21,570  

Auto Trader Group PLC(3)

     325,065        1,637  

Aviva PLC

      1,271,942        7,590  

Babcock International Group PLC

      84,468        991  

BAE Systems PLC

      994,659        7,223  

Barclays PLC

      5,323,328        14,623  

Barratt Developments PLC

      320,815        1,825  

Berkeley Group Holdings PLC

      42,004        1,452  

BP PLC

      5,911,940        36,734  

British American Tobacco PLC

      586,699        33,312  

British Land (The) Co. PLC

      313,241        2,427  

BT Group PLC

      2,670,135        12,091  

Bunzl PLC

      106,939        2,767  

Burberry Group PLC

      141,271        2,604  

Capita PLC

      213,431        1,397  

Centrica PLC

      1,720,837        4,958  

CNH Industrial N.V.

      327,559        2,848  

Cobham PLC

      528,589        1,065  

Coca-Cola European Partners PLC

      68,240        2,153  

Compass Group PLC

      515,430        9,501  

Croda International PLC

      41,673        1,635  

Diageo PLC

      791,804        20,485  

Direct Line Insurance Group PLC

      427,060        1,937  

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.2%(1) continued

 

   

United Kingdom - 15.5% continued

      

Dixons Carphone PLC

      309,558      $ 1,350  

easyJet PLC

      54,231        671  

Fiat Chrysler Automobiles N.V.

      262,441        2,393  

Fiat Chrysler Automobiles N.V.

      17,444        158  

G4S PLC

      488,237        1,413  

GKN PLC

      533,694        2,174  

GlaxoSmithKline PLC

      1,533,853        29,292  

Hammerson PLC

      251,841        1,774  

Hargreaves Lansdown PLC

      82,286        1,228  

HSBC Holdings PLC

      6,262,570        50,637  

IMI PLC

      82,939        1,058  

Imperial Brands PLC

      301,156        13,101  

Inmarsat PLC

      141,593        1,306  

InterContinental Hotels Group PLC

      59,146        2,640  

International Consolidated Airlines Group S.A. - CDI

      266,327        1,437  

Intertek Group PLC

      50,211        2,142  

Intu Properties PLC

      292,782        1,017  

ITV PLC

      1,161,436        2,944  

J Sainsbury PLC

      520,493        1,595  

Johnson Matthey PLC

      60,906        2,380  

Kingfisher PLC

      722,684        3,112  

Land Securities Group PLC

      254,031        3,356  

Legal & General Group PLC

      1,891,552        5,761  

Lloyds Banking Group PLC

      20,188,947        15,526  

London Stock Exchange Group PLC

      98,204        3,528  

Marks & Spencer Group PLC

      516,309        2,223  

Meggitt PLC

      245,499        1,386  

Merlin Entertainments PLC(3)

     222,197        1,228  

National Grid PLC

      1,191,752        13,938  

NEX Group PLC

      95,823        549  

Next PLC

      44,864        2,746  

Old Mutual PLC

      1,547,670        3,926  

Pearson PLC

      263,430        2,644  

Persimmon PLC

      98,384        2,147  

Petrofac Ltd.

      86,439        924  

Provident Financial PLC

      46,846        1,647  

Prudential PLC

      810,592        16,168  

Randgold Resources Ltd.

      29,968        2,292  

Reckitt Benckiser Group PLC

      198,759        16,802  

RELX N.V.

      313,242        5,265  

RELX PLC

      214,853        3,823  

RELX PLC (London Exchange)

      131,584        2,340  

Rio Tinto Ltd.

      133,145        5,727  

Rio Tinto PLC

      388,737        14,803  

Rolls-Royce Holdings PLC*

      578,722        4,759  

Royal Bank of Scotland Group PLC*

      1,104,625        3,051  

Royal Mail PLC

      292,900        1,667  

RSA Insurance Group PLC

      317,508        2,290  

Sage Group (The) PLC

      346,095        2,783  

Schroders PLC

      43,025        1,587  

Segro PLC

      255,367        1,445  

Severn Trent PLC

      75,205        2,058  

Sky PLC

      323,926        3,941  

Smith & Nephew PLC

      278,372        4,147  

Smiths Group PLC

      124,216        2,158  

SSE PLC

      320,334        6,124  

St. James’s Place PLC

      163,872        2,038  

Standard Chartered PLC*

      1,029,582        8,433  

Standard Life PLC

      613,579        2,798  

Tate & Lyle PLC

      146,279        1,274  

Taylor Wimpey PLC

      1,039,000        1,951  

Tesco PLC*

      2,559,859        6,516  

TP ICAP PLC

      78,305        418  

Travis Perkins PLC

      79,090        1,414  

Unilever N.V. - CVA

      511,849        21,037  

Unilever PLC

      403,405        16,318  

United Utilities Group PLC

      214,627        2,378  

Vodafone Group PLC

      8,367,537        20,580  

Weir Group (The) PLC

      68,733        1,592  

Whitbread PLC

      58,350        2,712  

William Hill PLC

      262,992        937  

Wm Morrison Supermarkets PLC

      684,950        1,946  

Worldpay Group PLC(3)

     573,411        1,902  

WPP PLC

      402,652        9,002  
  

 

 

     

 

 

  
        602,860  
     

 

 

  

United States - 0.5%

      

Carnival PLC

      60,796        3,080  

Shire PLC

      282,925        16,032  
  

 

 

     

 

 

  
        19,112  
     

 

 

  

Total Common Stocks

(Cost $3,393,695)

         3,807,335  
     

 

 

  

PREFERRED STOCKS - 0.5%(1)

     

Germany - 0.5%

      

Bayerische Motoren Werke A.G.

      17,033        1,306  

FUCHS PETROLUB S.E.

      23,232        976  

 

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

PREFERRED STOCKS - 0.5%(1) continued

      

Germany - 0.5% continued

      

Henkel A.G. & Co. KGaA

      55,771      $ 6,651  

Porsche Automobil Holding S.E.

      48,269        2,624  

Schaeffler A.G.

      55,294        816  

Volkswagen A.G.

      58,175        8,151  
  

 

 

     

 

 

  
        20,524  
     

 

 

  

United Kingdom - 0.0%

      

Rolls-Royce Holdings PLC, Class C*

      45,612,601        56  
  

 

 

     

 

 

  

Total Preferred Stocks

(Cost $18,695)

         20,580  
     

 

 

  

RIGHTS - 0.0%

      

Austria - 0.0%

      

Immoeast A.G.* (2)

     63,165        —    
  

 

 

     

 

 

  

Spain - 0.0%

      

Repsol S.A.*

      354,675        131  
  

 

 

     

 

 

  

Total Rights

(Cost $124)

         131  
     

 

 

  

INVESTMENT COMPANIES - 1.6%

 

   

iShares MSCI EAFE ETF

      435,900        25,164  

Northern Institutional Funds - Government Assets Portfolio, 0.32%(4) (5)

      37,871,525        37,872  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $62,931)

         63,036  
     

 

 

  

Total Investments - 100.3%

(Cost $3,475,445)

         3,891,082  
     

 

 

  

Liabilities less Other Assets - (0.3%)

         (12,096 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 3,878,986  
     

 

 

  

 

(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) Level 3 asset that is worthless, bankrupt or has been delisted.
(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(5) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had outstanding forward foreign currency exchange contracts as follows:

 

COUNTERPARTY

   CONTRACTS TO
DELIVER
CURRENCY		     AMOUNT
(LOCAL
CURRENCY)
(000S)		     IN EXCHANGE
FOR CURRENCY		     AMOUNT
(LOCAL
CURRENCY)
(000S)		     SETTLEMENT
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Bank of Montreal

     British Pound       322       United States Dollar       400       3/15/2017     $ 3  

Bank of Montreal

     Danish Krone       3,771       United States Dollar       530       3/15/2017       (6 ) 

Bank of Montreal

     Euro       2,651       United States Dollar       2,770       3/15/2017       (32 ) 

Bank of Montreal

     Hong Kong Dollar       5,671       United States Dollar       730       3/15/2017       (2 ) 

Bank of Montreal

     Japanese Yen       234,523       United States Dollar       2,010       3/15/2017       (4 ) 

Bank of Montreal

     Swedish Krona       6,438       United States Dollar       690       3/15/2017       (20 ) 

Bank of Montreal

     Swiss Franc       817       United States Dollar       800       3/15/2017       (6 ) 

Bank of Montreal

     United States Dollar       7,700       Japanese Yen       903,064       3/15/2017       56  

Citibank

     United States Dollar       5,500       British Pound       4,496       3/15/2017       51  

Citibank

     United States Dollar       3,128       British Pound       2,518       3/15/2017       (18 ) 

Goldman Sachs

     Euro       1,049       United States Dollar       1,100       3/15/2017       (8 ) 

JPMorgan Chase

     British Pound       3,149       United States Dollar       3,900       3/15/2017       12  

JPMorgan Chase

     Euro       6,147       United States Dollar       6,500       3/15/2017       5  

JPMorgan Chase

     United States Dollar       800       Australian Dollar       1,110       3/15/2017       —   * 

Morgan Stanley

     Australian Dollar       3,050       United States Dollar       2,200       3/15/2017       3  

Morgan Stanley

     Swiss Franc       2,027       United States Dollar       2,000       3/15/2017       1  

Morgan Stanley

     Swiss Franc       2,427       United States Dollar       2,376       3/15/2017       (18 ) 

Morgan Stanley

     United States Dollar       799       Australian Dollar       1,104       3/15/2017       (4 ) 

Morgan Stanley

     United States Dollar       629       Danish Krone       4,466       3/15/2017       6  

Morgan Stanley

     United States Dollar       9,700       Euro       9,293       3/15/2017       119  

Morgan Stanley

     United States Dollar       1,107       Hong Kong Dollar       8,596       3/15/2017       2  

Morgan Stanley

     United States Dollar       5,390       Japanese Yen       627,695       3/15/2017       —   * 

Morgan Stanley

     United States Dollar       152       Singapore Dollar       220       3/15/2017       (1 ) 

Morgan Stanley

     United States Dollar       1,479       Swedish Krona       13,812       3/15/2017       43  

Societe Generale

     Japanese Yen       221,218       United States Dollar       1,900       3/15/2017       —   * 

Societe Generale

     United States Dollar       3,229       Euro       3,081       3/15/2017       26  

Toronto-Dominion Bank

     Japanese Yen       605,455       United States Dollar       5,200       3/15/2017       —   * 

Toronto-Dominion Bank

     United States Dollar       2,200       Australian Dollar       3,075       3/15/2017       15  

Toronto-Dominion Bank

     United States Dollar       900       Hong Kong Dollar       6,982       3/15/2017       1  

Toronto-Dominion Bank

     United States Dollar       800       Swedish Krona       7,337       3/15/2017       9  

Toronto-Dominion Bank

     United States Dollar       2,600       Swiss Franc       2,665       3/15/2017       30  
           

 

 

  

Total

             $ 263  
           

 

 

  

 

* Amount rounds to less than one thousand.

 

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

 

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Euro Stoxx 50 (Euro)

      338      $ 11,659        Long        03/17      $ 299  

FTSE 100 Index (British Pound)

      46        3,997        Long        03/17        104  

Hang Seng Index (Hong Kong Dollar)

      16        2,266        Long        01/17        40  

SPI 200 Index (Australian Dollar)

      6        610        Long        03/17        14  

Topix Index (Japanese Yen)

      115        14,936        Long        03/17        147  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

                $ 604  
              

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.5 % 

Consumer Staples

      11.1  

Energy

      5.4  

Financials

      21.7  

Health Care

      10.6  

Industrials

      13.9  

Information Technology

      5.4  

Materials

      7.8  

Real Estate

      3.7  

Telecommunication Services

      4.5  

Utilities

      3.4  
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Euro

      30.6 % 

Japanese Yen

      24.0  

British Pound

      18.1  

Swiss Franc

      8.5  

Australian Dollar

      7.3  

All other currencies less than 5%

      11.5  
  

 

 

  

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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

            

Denmark

    $ 19,325      $ 43,983      $ —        $ 63,308  

France

      7        383,489        —          383,496  

Hong Kong

      1,006        123,116        —          124,122  

Ireland

      2,565        27,654        —          30,219  

Israel

      16,456        9,782        —          26,238  

Italy

      1,526        71,068        —          72,594  

Netherlands

      9,337        166,110        —          175,447  

Portugal

      —          5,735        9        5,744  

United Kingdom

      2,943        599,917        —          602,860  

All Other Countries(1)

     —          2,323,307        —          2,323,307  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      53,165        3,754,161        9        3,807,335  
  

 

 

     

 

 

     

 

 

     

 

 

  

Preferred Stocks(1)

     —          20,580        —          20,580  

Rights

      —          131        —          131  

Investment Companies

      63,036        —          —          63,036  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 116,201      $ 3,774,872      $ 9      $ 3,891,082  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		     LEVEL 3
(000S)		      TOTAL
(000S)		  

OTHER FINANCIAL INSTRUMENTS

                           

Assets

           

Forward Foreign Currency Exchange Contracts

    $ —        $ 382     $ —        $ 382  

Futures Contracts

      604        —         —          604  

Liabilities

           

Forward Foreign Currency Exchange Contracts

      —          (119 )      —          (119 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total Other Financial Instruments

    $ 604      $ 263     $ —        $ 867  
  

 

 

     

 

 

    

 

 

     

 

 

  

 

(1) Classifications as defined in the Schedule of Investments

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

At December 31, 2016, the Fund had transfers from Level 1 to Level 2 as disclosed below:

Transfers from Level 1 to Level 2

 

     Value
(000S)		     

Reason

Common Stocks

      

Switzerland

    $ 1,864      Valuations at official close price with foreign fair value adjustment
  

 

 

     

At December 31, 2016, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

 

     Value
(000S)		     

Reason

Common Stocks

      

Denmark

    $ 18,613      Valuations at official close price
  

 

 

     

 

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

INTERNATIONAL EQUITY INDEX FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

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

 

     BALANCE
AS OF
3/31/16
(000S)		      REALIZED
GAINS
(LOSSES)
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     PURCHASES
(000S)		      SALES
(000S)		      TRANSFERS
INTO
LEVEL 3
(000S)		      TRANSFERS
OUT OF
LEVEL 3
(000S)		      BALANCE
AS OF
12/31/16
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD
AT 12/31/16
(000S)		  

Common Stock

                          

Portugal

    $ 10      $ —        $ (1 )    $ —        $ —        $ —        $ —        $ 9      $ (1 ) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

The Fund valued the security included in the Balance as of 12/31/16 above using prices provided by investment adviser’s pricing and valuation committee.

 

    FAIR VALUE AT
12/31/16
(000S)		     VALUATION
TECHNIQUES		  

UNOBSERVABLE

INPUTS

Common Stock

   $ 9     Market Comparable Companies  

Price to Earnings Multiple /Liquidity Discount

 

 

 

      

The significant unoberservable inputs used in the fair value measurement is the price to earnings multiple along with liquidity discounts. Significant increases (decreases) in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 3,634,494  
  

 

 

  

Gross tax appreciation of investments

    $ 613,732  

Gross tax depreciation of investments

      (357,144 ) 
  

 

 

  

Net tax appreciation of investments

    $ 256,588  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 28,145      $ 475,623      $ 465,896      $ 37      $ 37,872  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY INDEX FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

MID CAP INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.7%

      

Aerospace & Defense - 2.0%

      

B/E Aerospace, Inc.

      122,266      $ 7,359  

Esterline Technologies Corp.*

      35,691        3,184  

Huntington Ingalls Industries, Inc.

      55,842        10,285  

KLX, Inc.*

      63,626        2,870  

Orbital ATK, Inc.

      70,450        6,180  

Teledyne Technologies, Inc.*

      42,143        5,184  

Triumph Group, Inc.

      60,211        1,596  

Woodward, Inc.

      66,997        4,626  
  

 

 

     

 

 

  
        41,284  
     

 

 

  

Apparel & Textile Products - 0.8%

      

Carter’s, Inc.

      59,500        5,140  

Deckers Outdoor Corp.*

      38,552        2,135  

Fossil Group, Inc.*

      50,872        1,316  

Kate Spade & Co.*

      154,039        2,876  

Skechers U.S.A., Inc., Class A*

      160,401        3,943  
  

 

 

     

 

 

  
        15,410  
     

 

 

  

Asset Management - 0.9%

      

Eaton Vance Corp.

      136,452        5,715  

Federated Investors, Inc., Class B

      111,813        3,162  

Janus Capital Group, Inc.

      172,131        2,284  

Legg Mason, Inc.

      108,317        3,240  

Waddell & Reed Financial, Inc., Class A

      100,161        1,954  

WisdomTree Investments, Inc.

      138,176        1,539  
  

 

 

     

 

 

  
        17,894  
     

 

 

  

Automotive - 0.5%

      

Dana, Inc.

      172,551        3,275  

Gentex Corp.

      345,056        6,794  
  

 

 

     

 

 

  
        10,069  
     

 

 

  

Banking - 7.7%

      

Associated Banc-Corp

      178,655        4,413  

BancorpSouth, Inc.

      102,508        3,183  

Bank of Hawaii Corp.

      51,258        4,546  

Bank of the Ozarks, Inc.

      109,278        5,747  

Cathay General Bancorp

      89,174        3,391  

Chemical Financial Corp.

      85,124        4,611  

Commerce Bancshares, Inc.

      104,954        6,067  

Cullen/Frost Bankers, Inc.

      67,580        5,963  

East West Bancorp, Inc.

      173,980        8,843  

First Horizon National Corp.

      281,394        5,631  

FNB Corp.

      250,866        4,021  

Fulton Financial Corp.

      208,209        3,914  

Hancock Holding Co.

      99,986        4,309  

International Bancshares Corp.

      69,820        2,849  

MB Financial, Inc.

      85,870        4,056  

New York Community Bancorp, Inc.

      585,905        9,322  

PacWest Bancorp

      144,875        7,887  

PrivateBancorp, Inc.

      96,204        5,213  

Prosperity Bancshares, Inc.

      83,590        6,000  

Signature Bank*

      64,584        9,701  

SVB Financial Group*

      62,784        10,777  

Synovus Financial Corp.

      147,160        6,045  

TCF Financial Corp.

      205,750        4,031  

Trustmark Corp.

      81,314        2,899  

UMB Financial Corp.

      52,391        4,040  

Umpqua Holdings Corp.

      264,862        4,974  

Valley National Bancorp

      306,067        3,563  

Washington Federal, Inc.

      107,535        3,694  

Webster Financial Corp.

      110,842        6,017  
  

 

 

     

 

 

  
        155,707  
     

 

 

  

Biotechnology & Pharmaceuticals - 0.6%

 

   

Akorn, Inc.*

      106,133        2,317  

Prestige Brands Holdings, Inc.*

      63,657        3,317  

United Therapeutics Corp.*

      51,079        7,326  
  

 

 

     

 

 

  
        12,960  
     

 

 

  

Chemicals - 2.7%

      

Ashland Global Holdings, Inc.

      74,969        8,193  

Cabot Corp.

      75,046        3,793  

Minerals Technologies, Inc.

      41,905        3,237  

NewMarket Corp.

      11,117        4,712  

Olin Corp.

      198,687        5,088  

PolyOne Corp.

      101,128        3,240  

RPM International, Inc.

      160,709        8,651  

Sensient Technologies Corp.

      53,510        4,205  

Valspar (The) Corp.

      88,041        9,122  

Versum Materials, Inc.*

      131,335        3,687  
  

 

 

     

 

 

  
        53,928  
     

 

 

  

Commercial Services - 1.1%

      

CEB, Inc.

      38,731        2,347  

Deluxe Corp.

      58,668        4,201  

FTI Consulting, Inc.*

      50,743        2,288  

ManpowerGroup, Inc.

      80,760        7,177  

Rollins, Inc.

      115,578        3,904  

Sotheby’s*

      55,536        2,214  
  

 

 

     

 

 

  
        22,131  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.7% continued

 

   

Construction Materials - 1.2%

      

Carlisle Cos., Inc.

      77,741      $ 8,574  

Eagle Materials, Inc.

      58,023        5,717  

Louisiana-Pacific Corp.*

      171,004        3,237  

MDU Resources Group, Inc.

      235,004        6,761  
  

 

 

     

 

 

  
        24,289  
     

 

 

  

Consumer Products - 3.8%

      

Avon Products, Inc.*

      525,764        2,650  

Boston Beer (The) Co., Inc., Class A*

      10,926        1,856  

Dean Foods Co.

      108,799        2,370  

Edgewell Personal Care Co.*

      69,746        5,091  

Energizer Holdings, Inc.

      74,474        3,322  

Flowers Foods, Inc.

      220,541        4,404  

Hain Celestial Group (The), Inc.*

      124,451        4,857  

Helen of Troy Ltd.*

      33,492        2,828  

Ingredion, Inc.

      87,215        10,898  

Lamb Weston Holdings, Inc.*

      167,241        6,330  

Lancaster Colony Corp.

      23,428        3,313  

Post Holdings, Inc.*

      78,160        6,283  

Snyder’s-Lance, Inc.

      102,854        3,944  

Tootsie Roll Industries, Inc.

      21,105        839  

TreeHouse Foods, Inc.*

      68,225        4,925  

WhiteWave Foods (The) Co.*

      213,187        11,853  
  

 

 

     

 

 

  
        75,763  
     

 

 

  

Consumer Services - 0.7%

      

Aaron’s, Inc.

      76,651        2,452  

DeVry Education Group, Inc.

      68,685        2,143  

Graham Holdings Co., Class B

      5,598        2,866  

Service Corp. International

      229,626        6,521  
  

 

 

     

 

 

  
        13,982  
     

 

 

  

Containers & Packaging - 1.7%

      

AptarGroup, Inc.

      75,719        5,562  

Bemis Co., Inc.

      112,798        5,394  

Greif, Inc., Class A

      31,018        1,591  

Owens-Illinois, Inc.*

      196,081        3,414  

Packaging Corp. of America

      112,448        9,538  

Silgan Holdings, Inc.

      45,132        2,310  

Sonoco Products Co.

      120,060        6,327  
  

 

 

     

 

 

  
        34,136  
     

 

 

  

Design, Manufacturing & Distribution - 1.2%

 

   

Arrow Electronics, Inc.*

      107,838        7,689  

Avnet, Inc.

      153,835        7,324  

Jabil Circuit, Inc.

      223,448        5,289  

Tech Data Corp.*

      42,366        3,587  
  

 

 

     

 

 

  
        23,889  
     

 

 

  

Distributors - Consumer Staples - 0.1%

      

United Natural Foods, Inc.*

      60,598        2,892  
  

 

 

     

 

 

  

Distributors - Discretionary - 0.2%

      

SYNNEX Corp.

      34,927        4,227  
  

 

 

     

 

 

  

Electrical Equipment - 3.0%

      

A.O. Smith Corp.

      177,812        8,419  

Belden, Inc.

      50,670        3,789  

Cognex Corp.

      103,157        6,563  

Cree, Inc.*

      120,013        3,167  

Hubbell, Inc.

      61,916        7,226  

Keysight Technologies, Inc.*

      204,451        7,477  

Lennox International, Inc.

      46,683        7,151  

Littelfuse, Inc.

      27,207        4,129  

National Instruments Corp.

      126,904        3,911  

Trimble, Inc.*

      301,737        9,097  
  

 

 

     

 

 

  
        60,929  
     

 

 

  

Engineering & Construction Services - 1.0%

 

   

AECOM*

      185,601        6,749  

Dycom Industries, Inc.*

      37,804        3,035  

EMCOR Group, Inc.

      73,135        5,175  

Granite Construction, Inc.

      47,785        2,628  

KBR, Inc.

      171,351        2,860  
  

 

 

     

 

 

  
        20,447  
     

 

 

  

Forest & Paper Products - 0.2%

      

Domtar Corp.

      75,282        2,938  
  

 

 

     

 

 

  

Gaming, Lodging & Restaurants - 2.5%

      

Brinker International, Inc.

      59,740        2,959  

Buffalo Wild Wings, Inc.*

      22,012        3,398  

Cheesecake Factory (The), Inc.

      53,182        3,184  

Churchill Downs, Inc.

      14,967        2,252  

Cracker Barrel Old Country Store, Inc.

      28,972        4,838  

Domino’s Pizza, Inc.

      57,876        9,216  

Dunkin’ Brands Group, Inc.

      110,370        5,788  

Jack in the Box, Inc.

      38,962        4,350  

Panera Bread Co., Class A*

      26,314        5,397  

 

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.7% continued

 

   

Gaming, Lodging & Restaurants - 2.5% continued

      

Papa John’s International, Inc.

      32,040      $ 2,742  

Texas Roadhouse, Inc.

      77,109        3,720  

Wendy’s (The) Co.

      241,698        3,268  
  

 

 

     

 

 

  
        51,112  
     

 

 

  

Hardware - 2.5%

      

3D Systems Corp.*

      128,240        1,704  

ARRIS International PLC*

      229,390        6,912  

Brocade Communications Systems, Inc.

      484,660        6,053  

Ciena Corp.*

      167,779        4,095  

Diebold Nixdorf, Inc.

      90,345        2,272  

InterDigital, Inc.

      41,214        3,765  

Knowles Corp.*

      107,779        1,801  

NCR Corp.*

      149,646        6,070  

NetScout Systems, Inc.*

      110,657        3,486  

Plantronics, Inc.

      39,952        2,188  

VeriFone Systems, Inc.*

      133,508        2,367  

ViaSat, Inc.*

      62,233        4,121  

Zebra Technologies Corp., Class A*

      63,482        5,444  
  

 

 

     

 

 

  
        50,278  
     

 

 

  

Health Care Facilities & Services - 2.2%

      

Charles River Laboratories

      

International, Inc.*

      56,907        4,336  

HealthSouth Corp.

      108,254        4,464  

LifePoint Health, Inc.*

      48,319        2,744  

MEDNAX, Inc.*

      111,623        7,441  

Molina Healthcare, Inc.*

      51,252        2,781  

Owens & Minor, Inc.

      74,244        2,620  

PAREXEL International Corp.*

      64,152        4,216  

Tenet Healthcare Corp.*

      95,747        1,421  

VCA, Inc.*

      97,799        6,714  

WellCare Health Plans, Inc.*

      53,261        7,301  
  

 

 

     

 

 

  
        44,038  
     

 

 

  

Home & Office Products - 1.8%

      

CalAtlantic Group, Inc.

      88,072        2,995  

Herman Miller, Inc.

      71,981        2,462  

HNI Corp.

      53,531        2,993  

KB Home

      100,591        1,590  

NVR, Inc.*

      4,245        7,085  

Scotts Miracle-Gro (The) Co., Class A

      53,571        5,119  

Tempur Sealy International, Inc.*

      60,664        4,142  

Toll Brothers, Inc.*

      179,727        5,572  

TRI Pointe Group, Inc.*

      175,896        2,019  

Tupperware Brands Corp.

      60,811        3,200  
  

 

 

     

 

 

  
        37,177  
     

 

 

  

Industrial Services - 0.7%

      

MSC Industrial Direct Co., Inc., Class A

      53,878        4,978  

Pool Corp.

      49,891        5,206  

Watsco, Inc.

      31,025        4,595  
  

 

 

     

 

 

  
        14,779  
     

 

 

  

Institutional Financial Services - 1.5%

      

CBOE Holdings, Inc.

      97,788        7,226  

Raymond James Financial, Inc.

      152,203        10,543  

SEI Investments Co.

      161,862        7,990  

Stifel Financial Corp.*

      79,629        3,977  
  

 

 

     

 

 

  
        29,736  
     

 

 

  

Insurance - 4.8%

      

Alleghany Corp.*

      18,574        11,295  

American Financial Group, Inc.

      87,813        7,738  

Aspen Insurance Holdings Ltd.

      72,417        3,983  

Brown & Brown, Inc.

      138,603        6,218  

CNO Financial Group, Inc.

      209,058        4,003  

Endurance Specialty Holdings Ltd.

      77,237        7,137  

Everest Re Group Ltd.

      49,242        10,656  

Genworth Financial, Inc., Class A*

      599,498        2,284  

Hanover Insurance Group (The), Inc.

      51,407        4,679  

Kemper Corp.

      58,436        2,589  

Mercury General Corp.

      43,882        2,642  

Old Republic International Corp.

      293,589        5,578  

Primerica, Inc.

      55,185        3,816  

Reinsurance Group of America, Inc.

      77,391        9,738  

RenaissanceRe Holdings Ltd.

      49,581        6,754  

WR Berkley Corp.

      117,117        7,789  
  

 

 

     

 

 

  
        96,899  
     

 

 

  

Iron & Steel - 1.7%

      

Allegheny Technologies, Inc.

      131,099        2,088  

Carpenter Technology Corp.

      56,308        2,037  

Commercial Metals Co.

      139,164        3,031  

Reliance Steel & Aluminum Co.

      87,237        6,939  

Steel Dynamics, Inc.

      294,021        10,461  

United States Steel Corp.

      207,682        6,856  

Worthington Industries, Inc.

      53,012        2,515  
  

 

 

     

 

 

  
        33,927  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.7% continued

      

Leisure Products - 1.0%

      

Brunswick Corp.

      107,997      $ 5,890  

Polaris Industries, Inc.

      71,702        5,907  

Thor Industries, Inc.

      57,757        5,779  

Vista Outdoor, Inc.*

      70,836        2,614  
  

 

 

     

 

 

  
        20,190  
     

 

 

  

Machinery - 3.7%

      

AGCO Corp.

      81,214        4,699  

Crane Co.

      60,110        4,335  

Curtiss-Wright Corp.

      53,169        5,230  

Graco, Inc.

      66,983        5,566  

IDEX Corp.

      91,916        8,278  

ITT, Inc.

      106,252        4,098  

Joy Global, Inc.

      118,100        3,307  

Kennametal, Inc.

      95,879        2,997  

Lincoln Electric Holdings, Inc.

      74,801        5,735  

MSA Safety, Inc.

      37,465        2,597  

Nordson Corp.

      63,992        7,170  

Oshkosh Corp.

      89,686        5,795  

Regal Beloit Corp.

      53,829        3,728  

Terex Corp.

      127,558        4,022  

Toro (The) Co.

      131,520        7,358  
  

 

 

     

 

 

  
        74,915  
     

 

 

  

Manufactured Goods - 0.4%

      

Timken (The) Co.

      84,008        3,335  

Valmont Industries, Inc.

      27,037        3,810  
  

 

 

     

 

 

  
        7,145  
     

 

 

  

Media - 0.9%

      

AMC Networks, Inc., Class A*

      71,034        3,718  

Cable One, Inc.

      5,643        3,508  

John Wiley & Sons, Inc., Class A

      54,342        2,962  

Meredith Corp.

      43,937        2,599  

New York Times (The) Co., Class A

      146,768        1,952  

Time, Inc.

      118,911        2,123  

WebMD Health Corp.*

      44,507        2,206  
  

 

 

     

 

 

  
        19,068  
     

 

 

  

Medical Equipment & Devices - 4.4%

      

ABIOMED, Inc.*

      48,603        5,477  

Align Technology, Inc.*

      90,231        8,674  

Bio-Rad Laboratories, Inc., Class A*

      25,020        4,561  

Bio-Techne Corp.

      44,874        4,614  

Catalent, Inc.*

      150,076        4,046  

Globus Medical, Inc., Class A*

      86,173        2,138  

Halyard Health, Inc.*

      56,139        2,076  

Hill-Rom Holdings, Inc.

      72,203        4,054  

IDEXX Laboratories, Inc.*

      107,985        12,663  

LivaNova PLC*

      52,475        2,360  

NuVasive, Inc.*

      60,855        4,099  

ResMed, Inc.

      169,779        10,535  

STERIS PLC

      102,646        6,917  

Teleflex, Inc.

      52,976        8,537  

West Pharmaceutical Services, Inc.

      88,083        7,472  
  

 

 

     

 

 

  
        88,223  
     

 

 

  

Metals & Mining - 0.4%

      

Compass Minerals International, Inc.

      40,641        3,184  

Royal Gold, Inc.

      78,517        4,974  
  

 

 

     

 

 

  
        8,158  
     

 

 

  

Oil, Gas & Coal - 4.1%

      

CONSOL Energy, Inc.

      212,519        3,874  

Denbury Resources, Inc.*

      483,014        1,777  

Diamond Offshore Drilling, Inc.*

      77,563        1,373  

Dril-Quip, Inc.*

      45,104        2,709  

Energen Corp.*

      116,750        6,733  

Ensco PLC, Class A

      365,550        3,553  

Gulfport Energy Corp.*

      185,945        4,024  

HollyFrontier Corp.

      211,411        6,926  

Murphy USA, Inc.*

      43,749        2,689  

Nabors Industries Ltd.

      340,782        5,589  

Noble Corp. PLC

      293,895        1,740  

NOW, Inc.*

      129,439        2,650  

Oceaneering International, Inc.

      117,837        3,324  

Oil States International, Inc.*

      62,170        2,425  

Patterson-UTI Energy, Inc.

      178,903        4,816  

QEP Resources, Inc.*

      288,184        5,305  

Rowan Cos. PLC, Class A*

      151,019        2,853  

SM Energy Co.

      115,954        3,998  

Superior Energy Services, Inc.

      182,357        3,078  

TravelCenters of America LLC - (Fractional Shares)* (1)

     80,000        —    

Western Refining, Inc.

      95,202        3,603  

World Fuel Services Corp.

      84,713        3,889  

WPX Energy, Inc.*

      414,190        6,035  
  

 

 

     

 

 

  
        82,963  
     

 

 

  

Passenger Transportation - 0.4%

      

JetBlue Airways Corp.*

      389,410        8,731  
  

 

 

     

 

 

  

 

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.7% continued

 

   

Real Estate - 0.4%

      

Alexander & Baldwin, Inc.

      55,395      $ 2,486  

Jones Lang LaSalle, Inc.

      54,350        5,491  
  

 

 

     

 

 

  
        7,977  
     

 

 

  

Real Estate Investment Trusts - 9.7%

      

Alexandria Real Estate Equities, Inc.

      95,668        10,632  

American Campus Communities, Inc.

      159,201        7,923  

Camden Property Trust

      105,529        8,872  

Care Capital Properties, Inc.

      100,965        2,524  

Communications Sales & Leasing, Inc.

      168,911        4,292  

CoreCivic, Inc.

      141,570        3,463  

Corporate Office Properties Trust

      113,973        3,558  

Cousins Properties, Inc.

      411,013        3,498  

DCT Industrial Trust, Inc.

      109,944        5,264  

Douglas Emmett, Inc.

      173,498        6,343  

Duke Realty Corp.

      427,304        11,349  

Education Realty Trust, Inc.

      87,870        3,717  

EPR Properties

      76,552        5,494  

Equity One, Inc.

      111,964        3,436  

First Industrial Realty Trust, Inc.

      140,574        3,943  

Healthcare Realty Trust, Inc.

      139,371        4,226  

Highwoods Properties, Inc.

      121,012        6,173  

Hospitality Properties Trust

      197,533        6,270  

Kilroy Realty Corp.

      111,278        8,148  

Lamar Advertising Co., Class A

      99,675        6,702  

LaSalle Hotel Properties

      135,993        4,144  

Liberty Property Trust

      177,262        7,002  

Life Storage, Inc.

      55,815        4,759  

Mack-Cali Realty Corp.

      107,839        3,130  

Medical Properties Trust, Inc.

      385,160        4,737  

Mid-America Apartment Communities, Inc.(2)

     —          —    

National Retail Properties, Inc.

      176,862        7,817  

Omega Healthcare Investors, Inc.

      235,082        7,349  

Potlatch Corp.

      48,965        2,039  

Quality Care Properties, Inc.*

      112,570        1,745  

Rayonier, Inc.

      147,799        3,931  

Rayonier, Inc. - (Fractional Shares)(1)

     50,000        —    

Regency Centers Corp.

      125,706        8,667  

Senior Housing Properties Trust

      285,705        5,408  

Tanger Factory Outlet Centers, Inc.

      115,546        4,134  

Taubman Centers, Inc.

      72,639        5,370  

Urban Edge Properties

      110,040        3,027  

Washington Prime Group, Inc.

      222,947        2,321  

Weingarten Realty Investors

      142,290        5,093  
  

 

 

     

 

 

  
        196,500  
     

 

 

  

Recreational Facilities & Services - 0.5%

      

Cinemark Holdings, Inc.

      127,228        4,880  

International Speedway Corp., Class A

      30,806        1,134  

Live Nation Entertainment, Inc.*

      158,798        4,224  
  

 

 

     

 

 

  
        10,238  
     

 

 

  

Renewable Energy - 0.2%

      

EnerSys

      52,244        4,080  
  

 

 

     

 

 

  

Retail - Consumer Staples - 0.8%

      

Big Lots, Inc.

      53,363        2,679  

Casey’s General Stores, Inc.

      47,131        5,603  

CST Brands, Inc.

      91,037        4,383  

Sprouts Farmers Market, Inc.*

      161,293        3,052  
  

 

 

     

 

 

  
        15,717  
     

 

 

  

Retail - Discretionary - 2.3%

      

American Eagle Outfitters, Inc.

      205,508        3,118  

Avis Budget Group, Inc.*

      105,748        3,879  

Cabela’s, Inc.*

      61,751        3,615  

Chico’s FAS, Inc.

      155,876        2,243  

Copart, Inc.*

      122,915        6,811  

Dick’s Sporting Goods, Inc.

      105,872        5,622  

GameStop Corp., Class A

      122,791        3,102  

HSN, Inc.

      38,129        1,308  

J.C. Penney Co., Inc.*

      370,144        3,076  

Office Depot, Inc.

      636,792        2,878  

Restoration Hardware Holdings, Inc.*

      46,178        1,418  

Sally Beauty Holdings, Inc.*

      173,663        4,588  

Williams-Sonoma, Inc.

      98,110        4,747  
  

 

 

     

 

 

  
        46,405  
     

 

 

  

Semiconductors - 2.8%

      

Advanced Micro Devices, Inc.*

      915,182        10,378  

Cirrus Logic, Inc.*

      76,700        4,337  

Cypress Semiconductor Corp.

      386,412        4,421  

Integrated Device Technology, Inc.*

      161,609        3,807  

Intersil Corp., Class A

      164,732        3,674  

IPG Photonics Corp.*

      44,767        4,419  

Microsemi Corp.*

      138,028        7,449  

Monolithic Power Systems, Inc.

      45,190        3,702  

Silicon Laboratories, Inc.*

      50,487        3,282  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.7% continued

      

Semiconductors - 2.8% continued

      

Synaptics, Inc.*

      41,878      $ 2,244  

Teradyne, Inc.

      242,004        6,147  

Vishay Intertechnology, Inc.

      162,170        2,627  
  

 

 

     

 

 

  
        56,487  
     

 

 

  

Software - 4.5%

      

ACI Worldwide, Inc.*

      140,941        2,558  

Acxiom Corp.*

      93,132        2,496  

Allscripts Healthcare Solutions, Inc.*

      224,399        2,291  

ANSYS, Inc.*

      104,177        9,635  

Cadence Design Systems, Inc.*

      345,195        8,706  

CDK Global, Inc.

      179,971        10,742  

CommVault Systems, Inc.*

      50,738        2,608  

Fortinet, Inc.*

      177,565        5,348  

j2 Global, Inc.

      57,742        4,723  

Manhattan Associates, Inc.*

      85,568        4,538  

Mentor Graphics Corp.

      131,899        4,866  

NeuStar, Inc., Class A*

      65,577        2,190  

PTC, Inc.*

      139,225        6,442  

Synopsys, Inc.*

      182,085        10,718  

Tyler Technologies, Inc.*

      40,125        5,729  

Ultimate Software Group (The), Inc.

      34,969        6,377  
  

 

 

     

 

 

  
        89,967  
     

 

 

  

Specialty Finance - 1.3%

      

First American Financial Corp.

      131,985        4,835  

GATX Corp.

      48,087        2,961  

Jack Henry & Associates, Inc.

      94,085        8,353  

SLM Corp.*

      514,769        5,673  

WEX, Inc.*

      46,256        5,162  
  

 

 

     

 

 

  
        26,984  
     

 

 

  

Technology Services - 4.3%

      

Broadridge Financial Solutions, Inc.

      143,408        9,508  

Computer Sciences Corp.

      169,597        10,077  

comScore, Inc.*

      53,994        1,705  

Convergys Corp.

      115,378        2,834  

CoreLogic, Inc.*

      104,014        3,831  

DST Systems, Inc.

      38,525        4,128  

FactSet Research Systems, Inc.

      48,097        7,861  

Fair Isaac Corp.

      37,366        4,455  

Gartner, Inc.*

      99,400        10,046  

Leidos Holdings, Inc.

      172,027        8,797  

MarketAxess Holdings, Inc.

      45,272        6,651  

MAXIMUS, Inc.

      78,069        4,355  

MSCI, Inc.

      113,364        8,931  

Science Applications International Corp.

      53,935        4,574  
  

 

 

     

 

 

  
        87,753  
     

 

 

  

Telecom - 0.2%

      

Telephone & Data Systems, Inc.

      112,886        3,259  
  

 

 

     

 

 

  

Transportation & Logistics - 1.1%

      

Genesee & Wyoming, Inc., Class A*

      73,781        5,121  

Kirby Corp.*

      64,790        4,308  

Landstar System, Inc.

      50,369        4,296  

Old Dominion Freight Line, Inc.*

      83,420        7,157  

Werner Enterprises, Inc.

      53,312        1,437  
  

 

 

     

 

 

  
        22,319  
     

 

 

  

Transportation Equipment - 0.7%

      

Trinity Industries, Inc.

      183,325        5,089  

Wabtec Corp.

      107,286        8,907  
  

 

 

     

 

 

  
        13,996  
     

 

 

  

Utilities - 4.8%

      

Aqua America, Inc.

      213,362        6,409  

Atmos Energy Corp.

      125,348        9,294  

Black Hills Corp.

      64,126        3,933  

Great Plains Energy, Inc.

      259,422        7,095  

Hawaiian Electric Industries, Inc.

      131,053        4,334  

IDACORP, Inc.

      60,646        4,885  

National Fuel Gas Co.

      102,740        5,819  

New Jersey Resources Corp.

      103,610        3,678  

NorthWestern Corp.

      58,092        3,304  

OGE Energy Corp.

      240,256        8,037  

ONE Gas, Inc.

      62,846        4,020  

PNM Resources, Inc.

      95,779        3,285  

Southwest Gas Corp.

      57,114        4,376  

UGI Corp.

      208,438        9,605  

Vectren Corp.

      99,675        5,198  

Westar Energy, Inc.

      170,535        9,610  

WGL Holdings, Inc.

      61,781        4,713  
  

 

 

     

 

 

  
        97,595  
     

 

 

  

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.7% continued

      

Waste & Environment Services & Equipment - 0.7%

 

   

CLARCOR, Inc.

      58,668      $ 4,839  

Clean Harbors, Inc.*

      62,928        3,502  

Donaldson Co., Inc.

      159,084        6,694  
  

 

 

     

 

 

  
        15,035  
     

 

 

  

Total Common Stocks

(Cost $1,491,162)

         1,954,526  
     

 

 

  

INVESTMENT COMPANIES - 3.2%

 

   

Northern Institutional Funds - Government Assets Portfolio, 0.32%(3) (4)

      63,593,314        63,593  
     

 

 

  

Total Investment Companies

(Cost $63,593)

         63,593  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.2%

      

U.S. Treasury Bill,

      

0.46%, 3/2/17(5) (6)

    $ 4,145      $ 4,142  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $4,142)

         4,142  
     

 

 

  

Total Investments - 100.1%

(Cost $1,558,897)

         2,022,261  
     

 

 

  

Liabilities less Other Assets - (0.1%)

         (1,315 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 2,020,946  
     

 

 

  

 

(1) Level 3 asset that is worthless, bankrupt or has been delisted.
(2) Amount rounds to less than one thousand.
(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(4) 7-day yield as of December 31, 2016 is disclosed.
(5) Discount rate at the time of purchase.
(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 December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-Mini S&P MidCap 400

      422      $ 70,014        Long        3/17      $ (890 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      11.3 % 

Consumer Staples

      4.3  

Energy

      4.0  

Financials

      17.1  

Health Care

      7.5  

Industrials

      14.9  

Information Technology

      17.6  

Materials

      7.3  

Real Estate

      10.5  

Telecommunication Services

      0.2  

Utilities

      5.3  
  

 

 

  

Total

      100.0 % 
  

 

 

  

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

   $ 1,954,526     $ —        $ —        $ 1,954,526  

Investment Companies

      63,593       —          —          63,593  

Short-Term Investments

      —         4,142        —          4,142  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 2,018,119     $ 4,142      $ —        $ 2,022,261  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Liabilities

           

Futures Contracts

    $ (890 )    $ —        $ —        $ (890 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

MID CAP INDEX FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,576,521  
  

 

 

  

Gross tax appreciation of investments

    $ 519,952  

Gross tax depreciation of investments

      (74,212 ) 
  

 

 

  

Net tax appreciation of investments

    $ 445,740  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 37,458      $ 319,498      $ 293,363      $ 97      $ 63,593  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

SMALL CAP INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4%

      

Aerospace & Defense - 1.2%

      

AAR Corp.

      19,401      $ 641  

Aerojet Rocketdyne Holdings, Inc.*

      34,791        625  

Aerovironment, Inc.*

      11,919        320  

Astronics Corp.*

      11,362        384  

Ducommun, Inc.*

      6,274        160  

Esterline Technologies Corp.*

      17,262        1,540  

KLX, Inc.*

      30,851        1,392  

Moog, Inc., Class A*

      18,643        1,224  

National Presto Industries, Inc.

      2,898        308  

Smith & Wesson Holding Corp.*

      32,111        677  

Sturm Ruger & Co., Inc.

      10,758        567  

TASER International, Inc.*

      30,299        734  

Teledyne Technologies, Inc.*

      19,916        2,450  

Triumph Group, Inc.

      28,829        764  

Woodward, Inc.

      30,887        2,133  
  

 

 

     

 

 

  
        13,919  
     

 

 

  

Apparel & Textile Products - 0.8%

      

Albany International Corp., Class A

      16,755        776  

Columbia Sportswear Co.

      15,641        912  

Crocs, Inc.*

      43,233        297  

Culp, Inc.

      6,349        236  

Deckers Outdoor Corp.*

      18,889        1,046  

Delta Apparel, Inc.*

      4,121        85  

Fossil Group, Inc.*

      24,514        634  

Iconix Brand Group, Inc.*

      25,638        239  

Movado Group, Inc.

      8,967        258  

Oxford Industries, Inc.

      8,888        534  

Perry Ellis International, Inc.*

      7,229        180  

Sequential Brands Group, Inc.*

      22,843        107  

Steven Madden Ltd.*

      35,938        1,285  

Superior Uniform Group, Inc.

      5,014        98  

Unifi, Inc.*

      9,101        297  

Vince Holding Corp.*

      11,107        45  

Weyco Group, Inc.

      3,584        112  

Wolverine World Wide, Inc.

      56,560        1,242  
  

 

 

     

 

 

  
        8,383  
     

 

 

  

Asset Management - 0.7%

      

Acacia Research Corp.*

      28,967        188  

Associated Capital Group, Inc., Class A

      2,562        84  

B. Riley Financial, Inc.

      5,478        101  

Calamos Asset Management, Inc., Class A

      9,919        85  

Cohen & Steers, Inc.

      12,338        415  

Diamond Hill Investment Group, Inc.

      1,780        374  

Fifth Street Asset Management, Inc.

      3,402        23  

Financial Engines, Inc.

      31,271        1,149  

GAMCO Investors, Inc., Class A

      2,593        80  

Hennessy Advisors, Inc.

      1,684        53  

Janus Capital Group, Inc.

      84,430        1,120  

Kennedy-Wilson Holdings, Inc.

      47,951        983  

Ladenburg Thalmann Financial Services, Inc.*

      57,686        141  

Manning & Napier, Inc.

      8,732        66  

Medley Management, Inc., Class A

      3,439        34  

OM Asset Management PLC

      23,420        340  

Oppenheimer Holdings, Inc., Class A

      6,016        112  

Pzena Investment Management, Inc., Class A

      9,046        101  

Real Industry, Inc.*

      15,751        96  

Safeguard Scientifics, Inc.*

      11,387        153  

Silvercrest Asset Management Group, Inc., Class A

      4,158        55  

Tiptree Financial, Inc., Class A

      13,867        85  

Virtus Investment Partners, Inc.

      2,649        313  

Waddell & Reed Financial, Inc., Class A

      46,284        903  

Westwood Holdings Group, Inc.

      4,698        282  

Wins Finance Holdings, Inc.*

      350        63  

WisdomTree Investments, Inc.

      66,786        744  
  

 

 

     

 

 

  
        8,143  
     

 

 

  

Automotive - 1.1%

      

American Axle & Manufacturing Holdings, Inc.*

      44,593        861  

Cooper Tire & Rubber Co.

      32,320        1,256  

Cooper-Standard Holdings, Inc.*

      8,618        891  

Dana, Inc.

      87,091        1,653  

Dorman Products, Inc.*

      15,458        1,129  

Federal-Mogul Holdings Corp.*

      17,912        185  

Gentherm, Inc.*

      21,159        716  

Horizon Global Corp.*

      10,843        260  

Metaldyne Performance Group, Inc.

      8,740        201  

Methode Electronics, Inc.

      21,235        878  

Miller Industries, Inc.

      6,287        166  

Modine Manufacturing Co.*

      27,671        412  

Motorcar Parts of America, Inc.*

      10,704        288  

Standard Motor Products, Inc.

      12,605        671  

Strattec Security Corp.

      2,048        83  

Superior Industries International, Inc.

      14,818        390  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Automotive - 1.1% continued

      

Tenneco, Inc.*

      32,933      $ 2,057  

Tower International, Inc.

      12,201        346  

Unique Fabricating, Inc.

      3,820        56  
  

 

 

     

 

 

  
        12,499  
     

 

 

  

Banking - 13.2%

      

1st Source Corp.

      9,184        410  

Access National Corp.

      4,823        134  

ACNB Corp.

      3,473        109  

Allegiance Bancshares, Inc.*

      6,401        231  

American National Bankshares, Inc.

      4,755        165  

Ameris Bancorp*

      19,771        862  

Ames National Corp.

      4,715        156  

Arrow Financial Corp.

      6,853        278  

Astoria Financial Corp.

      53,597        1,000  

Atlantic Capital Bancshares, Inc.*

      10,060        191  

Banc of California, Inc.

      28,234        490  

BancFirst Corp.

      4,592        427  

Banco Latinoamericano de Comercio Exterior S.A.

      17,655        520  

Bancorp (The), Inc.*

      29,197        229  

BancorpSouth, Inc.

      50,626        1,572  

Bank Mutual Corp.

      23,240        220  

Bank of Marin Bancorp

      3,487        243  

Bank of NT Butterfield & Son (The) Ltd.

      7,356        231  

Bank of the Ozarks, Inc.

      51,834        2,726  

BankFinancial Corp.

      8,704        129  

Bankwell Financial Group, Inc.

      3,336        108  

Banner Corp.

      17,458        974  

Bar Harbor Bankshares

      3,455        164  

Bear State Financial, Inc.

      10,541        107  

Beneficial Bancorp, Inc.

      40,583        747  

Berkshire Hills Bancorp, Inc.

      19,572        721  

Blue Hills Bancorp, Inc.

      14,296        268  

BNC Bancorp

      23,586        752  

BofI Holding, Inc.*

      34,929        997  

Boston Private Financial Holdings, Inc.

      47,874        792  

Bridge Bancorp, Inc.

      10,867        412  

Brookline Bancorp, Inc.

      40,468        664  

Bryn Mawr Bank Corp.

      9,693        409  

BSB Bancorp, Inc.*

      4,653        135  

C&F Financial Corp.

      1,874        93  

California First National Bancorp

      700        11  

Camden National Corp.

      9,039        402  

Capital Bank Financial Corp., Class A

      14,234        559  

Capital City Bank Group, Inc.

      6,742        138  

Capitol Federal Financial, Inc.

      73,992        1,218  

Capstar Financial Holdings, Inc.*

      1,787        39  

Cardinal Financial Corp.

      18,471        606  

Carolina Financial Corp.

      5,977        184  

Cascade Bancorp*

      18,998        154  

Cathay General Bancorp

      43,399        1,650  

CenterState Banks, Inc.

      26,971        679  

Central Pacific Financial Corp.

      17,624        554  

Central Valley Community Bancorp

      5,109        102  

Century Bancorp, Inc., Class A

      1,829        110  

Charter Financial Corp.

      7,725        129  

Chemical Financial Corp.

      38,444        2,082  

Chemung Financial Corp.

      1,830        67  

Citizens & Northern Corp.

      6,879        180  

City Holding Co.

      8,547        578  

Clifton Bancorp, Inc.

      12,782        216  

CNB Financial Corp.

      8,016        214  

CoBiz Financial, Inc.

      21,744        367  

Codorus Valley Bancorp, Inc.

      4,705        135  

Columbia Banking System, Inc.

      33,940        1,516  

Community Bank System, Inc.

      25,096        1,551  

Community Trust Bancorp, Inc.

      9,037        448  

ConnectOne Bancorp, Inc.

      16,698        433  

County Bancorp, Inc.

      2,821        76  

CU Bancorp*

      9,678        346  

Customers Bancorp, Inc.*

      14,148        507  

CVB Financial Corp.

      59,178        1,357  

Dime Community Bancshares, Inc.

      18,234        366  

Eagle Bancorp, Inc.*

      17,876        1,090  

Enterprise Bancorp, Inc.

      5,243        197  

Enterprise Financial Services Corp.

      11,190        481  

Equity Bancshares, Inc., Class A*

      2,942        99  

ESSA Bancorp, Inc.

      4,751        75  

EverBank Financial Corp.

      59,820        1,163  

Farmers Capital Bank Corp.*

      4,276        180  

Farmers National Banc Corp.

      14,464        205  

FB Financial Corp.*

      3,996        104  

FCB Financial Holdings, Inc., Class A*

      17,405        830  

Fidelity Southern Corp.

      12,120        287  

Financial Institutions, Inc.

      7,993        273  

First Bancorp

      11,526        313  

 

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Banking - 13.2% continued

      

First BanCorp*

      70,261      $ 464  

First Bancorp, Inc.

      5,857        194  

First Busey Corp.

      18,218        561  

First Business Financial Services, Inc.

      4,794        114  

First Citizens BancShares, Inc., Class A

      4,421        1,569  

First Commonwealth Financial Corp.

      51,841        735  

First Community Bancshares, Inc.

      9,139        275  

First Community Financial Partners, Inc.*

      7,918        93  

First Connecticut Bancorp, Inc.

      8,546        194  

First Defiance Financial Corp.

      5,099        259  

First Financial Bancorp

      35,672        1,015  

First Financial Bankshares, Inc.

      37,262        1,684  

First Financial Corp.

      5,858        309  

First Financial Northwest, Inc.

      4,549        90  

First Foundation, Inc.*

      7,668        219  

First Internet Bancorp

      3,040        97  

First Interstate BancSystem, Inc., Class A

      11,517        490  

First Merchants Corp.

      23,792        896  

First Mid-Illinois Bancshares, Inc.

      4,598        156  

First Midwest Bancorp, Inc.

      46,902        1,183  

First NBC Bank Holding Co.*

      9,686        71  

First Northwest Bancorp*

      6,405        100  

First of Long Island (The) Corp.

      12,483        356  

Flushing Financial Corp.

      16,235        477  

FNB Corp.

      122,705        1,967  

Franklin Financial Network, Inc.*

      6,818        285  

Fulton Financial Corp.

      100,297        1,886  

German American Bancorp, Inc.

      8,302        437  

Glacier Bancorp, Inc.

      44,501        1,612  

Great Southern Bancorp, Inc.

      6,494        355  

Great Western Bancorp, Inc.

      34,495        1,504  

Green Bancorp, Inc.*

      12,122        184  

Greene County Bancorp, Inc.

      1,789        41  

Guaranty Bancorp

      9,262        224  

Hancock Holding Co.

      45,215        1,949  

Hanmi Financial Corp.

      18,256        637  

HarborOne Bancorp, Inc.*

      8,501        164  

Heartland Financial USA, Inc.

      13,626        654  

Heritage Commerce Corp.

      15,484        223  

Heritage Financial Corp.

      17,490        450  

Heritage Oaks Bancorp

      13,994        173  

Hilltop Holdings, Inc.

      43,649        1,301  

Hingham Institution for Savings

      817        161  

Home Bancorp, Inc.

      3,359        130  

Home BancShares, Inc.

      70,669        1,962  

HomeTrust Bancshares, Inc.*

      9,634        250  

Hope Bancorp, Inc.

      74,960        1,641  

Horizon Bancorp

      11,681        327  

IBERIABANK Corp.

      25,967        2,175  

Independent Bank Corp.

      15,074        1,062  

Independent Bank Corp. (Berlin Exchange)

      11,872        258  

Independent Bank Group, Inc.

      6,473        404  

International Bancshares Corp.

      31,926        1,303  

Investors Bancorp, Inc.

      173,220        2,416  

Kearny Financial Corp.

      50,215        781  

Lake Sunapee Bank Group

      4,580        108  

Lakeland Bancorp, Inc.

      22,929        447  

Lakeland Financial Corp.

      14,030        664  

LCNB Corp.

      5,117        119  

LegacyTexas Financial Group, Inc.

      25,893        1,115  

Live Oak Bancshares, Inc.

      11,431        211  

Macatawa Bank Corp.

      15,426        161  

MainSource Financial Group, Inc.

      13,668        470  

MB Financial, Inc.

      44,256        2,090  

MBT Financial Corp.

      10,370        118  

Mercantile Bank Corp.*

      9,329        352  

Merchants Bancshares, Inc.

      3,449        187  

Meridian Bancorp, Inc.

      28,138        532  

Middleburg Financial Corp.

      2,726        95  

Midland States Bancorp, Inc.

      2,141        77  

MidWestOne Financial Group, Inc.

      4,991        188  

MutualFirst Financial, Inc.

      3,174        105  

National Bank Holdings Corp., Class A

      13,837        441  

National Bankshares, Inc.

      3,833        167  

National Commerce Corp.*

      4,946        184  

NBT Bancorp, Inc.

      24,867        1,041  

Nicolet Bankshares, Inc.*

      4,500        215  

Northfield Bancorp, Inc.

      24,638        492  

Northrim BanCorp, Inc.

      3,928        124  

Northwest Bancshares, Inc.

      55,512        1,001  

OceanFirst Financial Corp.

      14,966        449  

OFG Bancorp

      25,556        335  

Old Line Bancshares, Inc.

      4,880        117  

Old National Bancorp

      77,344        1,404  

Old Second Bancorp, Inc.

      16,920        187  

Opus Bank

      9,976        300  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Banking - 13.2% continued

      

Oritani Financial Corp.

      22,488      $ 422  

Orrstown Financial Services, Inc.

      4,316        97  

Pacific Continental Corp.

      11,968        261  

Pacific Mercantile Bancorp*

      8,971        65  

Pacific Premier Bancorp, Inc.*

      15,913        563  

Park National Corp.

      7,748        927  

Park Sterling Corp.

      29,842        322  

Peapack Gladstone Financial Corp.

      9,184        284  

Penns Woods Bancorp, Inc.

      2,657        134  

Peoples Bancorp, Inc.

      9,370        304  

Peoples Financial Services Corp.

      4,068        198  

People’s Utah Bancorp

      7,575        203  

Pinnacle Financial Partners, Inc.

      25,186        1,745  

Preferred Bank

      7,030        368  

Premier Financial Bancorp, Inc.*

      5,440        109  

PrivateBancorp, Inc.

      45,844        2,484  

Prosperity Bancshares, Inc.

      39,101        2,807  

Provident Bancorp, Inc.*

      2,654        47  

Provident Financial Holdings, Inc.

      3,872        78  

Provident Financial Services, Inc.

      35,579        1,007  

QCR Holdings, Inc.

      7,090        307  

Renasant Corp.

      23,877        1,008  

Republic Bancorp, Inc., Class A

      5,652        223  

Republic First Bancorp, Inc.*

      29,864        249  

S&T Bancorp, Inc.

      19,920        778  

Sandy Spring Bancorp, Inc.

      13,754        550  

Seacoast Banking Corp. of Florida*

      17,249        381  

ServisFirst Bancshares, Inc.

      26,831        1,005  

Shore Bancshares, Inc.

      7,261        111  

SI Financial Group, Inc.

      6,516        100  

Sierra Bancorp

      6,709        178  

Simmons First National Corp., Class A

      17,132        1,065  

South State Corp.

      13,806        1,207  

Southern First Bancshares, Inc.*

      3,329        120  

Southern Missouri Bancorp, Inc.

      3,422        121  

Southern National Bancorp of Virginia, Inc.

      6,499        106  

Southside Bancshares, Inc.

      15,372        579  

Southwest Bancorp, Inc.

      10,738        311  

State Bank Financial Corp.

      20,394        548  

Sterling Bancorp

      74,055        1,733  

Stock Yards Bancorp, Inc.

      12,437        584  

Stonegate Bank

      7,110        297  

Suffolk Bancorp*

      6,697        287  

Summit Financial Group, Inc.

      4,863        134  

Sun Bancorp, Inc.

      6,292        164  

Territorial Bancorp, Inc.

      4,236        139  

Texas Capital Bancshares, Inc.*

      29,070        2,279  

Tompkins Financial Corp.

      8,430        797  

Towne Bank

      32,507        1,081  

TriCo Bancshares

      11,896        407  

TriState Capital Holdings, Inc.*

      12,626        279  

Triumph Bancorp, Inc.*

      8,880        232  

TrustCo Bank Corp. NY

      53,332        467  

Trustmark Corp.

      39,344        1,403  

UMB Financial Corp.

      26,189        2,020  

Umpqua Holdings Corp.

      128,992        2,422  

Union Bankshares Corp.

      25,172        900  

Union Bankshares, Inc.

      2,279        104  

United Bankshares, Inc.

      38,344        1,773  

United Community Banks, Inc.

      40,828        1,209  

United Community Financial Corp.

      27,108        242  

United Financial Bancorp, Inc.

      29,727        540  

Univest Corp. of Pennsylvania

      14,444        446  

Valley National Bancorp

      144,515        1,682  

Veritex Holdings, Inc.*

      4,834        129  

Washington Federal, Inc.

      52,998        1,820  

Washington Trust Bancorp, Inc.

      8,677        486  

WashingtonFirst Bankshares, Inc.

      4,929        143  

Waterstone Financial, Inc.

      14,870        274  

Webster Financial Corp.

      53,591        2,909  

WesBanco, Inc.

      23,379        1,007  

West Bancorporation, Inc.

      9,599        237  

Westamerica Bancorporation

      14,368        904  

Western New England Bancorp, Inc.

      14,570        136  

Wintrust Financial Corp.

      30,053        2,181  

WSFS Financial Corp.

      16,669        773  

Xenith Bankshares, Inc.*

      4,504        127  

Yadkin Financial Corp.

      29,117        998  
  

 

 

     

 

 

  
        147,067  
     

 

 

  

Biotechnology & Pharmaceuticals - 5.7%

 

   

Acceleron Pharma, Inc.*

      16,016        409  

AcelRx Pharmaceuticals, Inc.*

      20,599        54  

Aceto Corp.

      17,151        377  

Achillion Pharmaceuticals, Inc.*

      69,388        287  

Aclaris Therapeutics, Inc.*

      5,841        158  

Acorda Therapeutics, Inc.*

      25,335        476  

 

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Biotechnology & Pharmaceuticals - 5.7% continued

      

Adamas Pharmaceuticals, Inc.*

      9,730      $ 164  

Aduro Biotech, Inc.*

      20,664        236  

Advaxis, Inc.*

      21,376        153  

Adverum Biotechnologies, Inc.*

      13,333        39  

Aerie Pharmaceuticals, Inc.*

      16,826        637  

Aevi Genomic Medicine, Inc.*

      16,450        85  

Agenus, Inc.*

      41,982        173  

Agile Therapeutics, Inc.*

      8,398        48  

Aimmune Therapeutics, Inc.*

      15,318        313  

Akebia Therapeutics, Inc.*

      20,924        218  

Albany Molecular Research, Inc.*

      15,320        287  

Alder Biopharmaceuticals, Inc.*

      27,390        570  

AMAG Pharmaceuticals, Inc.*

      20,505        714  

Amicus Therapeutics, Inc.*

      82,614        411  

Amphastar Pharmaceuticals, Inc.*

      20,970        386  

Ampio Pharmaceuticals, Inc.*

      25,567        23  

Anavex Life Sciences Corp.*

      19,022        75  

ANI Pharmaceuticals, Inc.*

      4,655        282  

Anika Therapeutics, Inc.*

      8,339        408  

Anthera Pharmaceuticals, Inc.*

      22,078        14  

Applied Genetic Technologies Corp.*

      7,432        69  

Aptevo Therapeutics, Inc.*

      9,437        23  

Aratana Therapeutics, Inc.*

      19,412        139  

Ardelyx, Inc.*

      18,153        258  

Arena Pharmaceuticals, Inc.*

      146,389        208  

Argos Therapeutics, Inc.*

      9,542        47  

ARIAD Pharmaceuticals, Inc.*

      103,280        1,285  

Array BioPharma, Inc.*

      98,378        865  

Arrowhead Pharmaceuticals, Inc.*

      35,814        55  

Asterias Biotherapeutics, Inc.*

      13,293        61  

Atara Biotherapeutics, Inc.*

      13,522        192  

Athersys, Inc.*

      44,301        68  

Audentes Therapeutics, Inc.*

      3,338        61  

Avexis, Inc.*

      2,924        140  

Axovant Sciences Ltd.*

      14,240        177  

Axsome Therapeutics, Inc.*

      6,476        44  

Bellicum Pharmaceuticals, Inc.*

      12,233        167  

BioCryst Pharmaceuticals, Inc.*

      43,368        274  

Bio-Path Holdings, Inc.*

      48,254        65  

BioSpecifics Technologies Corp.*

      3,189        178  

BioTime, Inc.*

      39,442        142  

Bluebird Bio, Inc.*

      23,764        1,466  

Blueprint Medicines Corp.*

      11,746        329  

Cambrex Corp.*

      18,559        1,001  

Cara Therapeutics, Inc.*

      12,563        117  

Celldex Therapeutics, Inc.*

      56,168        199  

Cellular Biomedicine Group, Inc.*

      7,090        93  

Cempra, Inc.*

      25,945        73  

ChemoCentryx, Inc.*

      13,840        102  

Chimerix, Inc.*

      25,396        117  

ChromaDex Corp.*

      16,699        55  

Cidara Therapeutics, Inc.*

      7,871        82  

Clearside Biomedical, Inc.*

      4,792        43  

Clovis Oncology, Inc.*

      18,522        823  

Coherus Biosciences, Inc.*

      17,398        490  

Collegium Pharmaceutical, Inc.*

      9,784        152  

Concert Pharmaceuticals, Inc.*

      9,194        95  

Corcept Therapeutics, Inc.*

      43,976        319  

Corvus Pharmaceuticals, Inc.*

      1,964        28  

Curis, Inc.*

      66,618        205  

Cytokinetics, Inc.*

      19,937        242  

CytomX Therapeutics, Inc.*

      11,904        131  

CytRx Corp.*

      66,190        25  

Depomed, Inc.*

      35,619        642  

Dermira, Inc.*

      14,366        436  

Dimension Therapeutics, Inc.*

      7,145        31  

Durect Corp.*

      77,601        104  

Dynavax Technologies Corp.*

      22,623        89  

Eagle Pharmaceuticals, Inc.*

      5,166        410  

Edge Therapeutics, Inc.*

      9,475        118  

Editas Medicine, Inc.*

      3,859        63  

Egalet Corp.*

      12,911        99  

Eiger BioPharmaceuticals, Inc.*

      2,028        24  

Emergent BioSolutions, Inc.*

      19,130        628  

Enanta Pharmaceuticals, Inc.*

      9,215        309  

Endocyte, Inc.*

      20,192        51  

Epizyme, Inc.*

      23,426        283  

Esperion Therapeutics, Inc.*

      8,349        105  

Exelixis, Inc.*

      132,709        1,979  

FibroGen, Inc.*

      30,606        655  

Five Prime Therapeutics, Inc.*

      15,859        795  

Flex Pharma, Inc.*

      6,203        33  

Flexion Therapeutics, Inc.*

      15,870        302  

Fortress Biotech, Inc.*

      19,998        54  

Galena Biopharma, Inc.*

      5,333        10  

Geron Corp.*

      87,453        181  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Biotechnology & Pharmaceuticals - 5.7% continued

 

   

Global Blood Therapeutics, Inc.*

      9,882      $ 143  

GlycoMimetics, Inc.*

      5,987        36  

Halozyme Therapeutics, Inc.*

      63,715        629  

Heron Therapeutics, Inc.*

      18,492        242  

Heska Corp.*

      3,520        252  

Horizon Pharma PLC*

      94,180        1,524  

Idera Pharmaceuticals, Inc.*

      62,171        93  

Ignyta, Inc.*

      17,209        91  

Immune Design Corp.*

      8,341        46  

ImmunoGen, Inc.*

      49,369        101  

Immunomedics, Inc.*

      57,928        213  

Impax Laboratories, Inc.*

      42,932        569  

Infinity Pharmaceuticals, Inc.*

      27,647        37  

Innoviva, Inc.*

      47,561        509  

Inotek Pharmaceuticals Corp.*

      10,197        62  

Inovio Pharmaceuticals, Inc.*

      38,486        267  

Insmed, Inc.*

      36,162        478  

Insys Therapeutics, Inc.*

      13,375        123  

Intellia Therapeutics, Inc.*

      4,081        53  

Intersect ENT,Inc.*

      14,817        179  

Intra-Cellular Therapies, Inc.*

      19,955        301  

Ironwood Pharmaceuticals, Inc.*

      75,537        1,155  

Kadmon Holdings, Inc.*

      4,717        25  

Karyopharm Therapeutics, Inc.*

      14,334        135  

Keryx Biopharmaceuticals, Inc.*

      45,959        269  

Kite Pharma, Inc.*

      22,882        1,026  

La Jolla Pharmaceutical Co.*

      8,262        145  

Lannett Co., Inc.*

      16,000        353  

Lexicon Pharmaceuticals, Inc.*

      24,675        341  

Lifevantage Corp.*

      8,009        65  

Ligand Pharmaceuticals, Inc.*

      11,113        1,129  

Lion Biotechnologies, Inc.*

      33,800        235  

Lipocine, Inc.*

      9,652        35  

Loxo Oncology, Inc.*

      7,773        250  

MacroGenics, Inc.*

      18,874        386  

MannKind Corp.*

      188,673        120  

Medicines (The) Co.*

      39,308        1,334  

MediciNova, Inc.*

      17,289        104  

Merrimack Pharmaceuticals, Inc.*

      71,339        291  

Minerva Neurosciences, Inc.*

      11,349        133  

Mirati Therapeutics, Inc.*

      6,812        32  

Momenta Pharmaceuticals, Inc.*

      38,327        577  

MyoKardia, Inc.*

      7,692        100  

Myovant Sciences Ltd.*

      6,314        79  

NantKwest, Inc.*

      9,750        56  

Natural Health Trends Corp.

      4,315        107  

Nature’s Sunshine Products, Inc.

      4,056        61  

Nektar Therapeutics*

      82,971        1,018  

Neos Therapeutics, Inc.*

      7,995        47  

NewLink Genetics Corp.*

      12,351        127  

Novavax, Inc.*

      157,062        198  

Nutraceutical International Corp.

      4,729        165  

Ocular Therapeutix, Inc.*

      10,675        89  

Omega Protein Corp.*

      12,760        320  

Omeros Corp.*

      24,053        239  

OncoMed Pharmaceuticals, Inc.*

      12,857        99  

Ophthotech Corp.*

      18,169        88  

Organovo Holdings, Inc.*

      50,616        172  

Osiris Therapeutics, Inc.*

      11,147        55  

Otonomy, Inc.*

      14,000        223  

Pacira Pharmaceuticals, Inc.*

      21,414        692  

Paratek Pharmaceuticals, Inc.*

      10,982        169  

PDL BioPharma, Inc.

      95,455        202  

Pfenex, Inc.*

      10,268        93  

PharmAthene, Inc.*

      36,304        118  

Phibro Animal Health Corp., Class A

      10,891        319  

Portola Pharmaceuticals, Inc.*

      28,782        646  

Prestige Brands Holdings, Inc.*

      30,959        1,613  

Progenics Pharmaceuticals, Inc.*

      40,295        348  

Protagonist Therapeutics, Inc.*

      4,411        97  

Proteostasis Therapeutics, Inc.*

      4,306        53  

Prothena Corp. PLC*

      20,259        997  

PTC Therapeutics, Inc.*

      19,325        211  

Puma Biotechnology, Inc.*

      16,326        501  

Ra Pharmaceuticals, Inc.*

      4,874        74  

Radius Health, Inc.*

      18,430        701  

Reata Pharmaceuticals, Inc., Class A*

      3,315        72  

REGENXBIO, Inc.*

      11,816        219  

Regulus Therapeutics, Inc.*

      22,617        51  

Retrophin, Inc.*

      21,419        405  

Revance Therapeutics, Inc.*

      12,152        252  

Rigel Pharmaceuticals, Inc.*

      58,124        138  

Sage Therapeutics, Inc.*

      17,715        905  

Sangamo BioSciences, Inc.*

      40,750        124  

Sarepta Therapeutics, Inc.*

      29,143        799  

SciClone Pharmaceuticals, Inc.*

      29,544        319  

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Biotechnology & Pharmaceuticals - 5.7% continued

 

   

Selecta Biosciences, Inc.*

      2,554      $ 44  

Senseonics Holdings, Inc.*

      16,273        43  

Seres Therapeutics, Inc.*

      10,374        103  

Sorrento Therapeutics, Inc.*

      15,499        76  

Spark Therapeutics, Inc.*

      11,177        558  

Spectrum Pharmaceuticals, Inc.*

      45,049        200  

Stemline Therapeutics, Inc.*

      10,093        108  

Sucampo Pharmaceuticals, Inc., Class A*

      13,940        189  

Supernus Pharmaceuticals, Inc.*

      27,596        697  

Syndax Pharmaceuticals, Inc.*

      2,769        20  

Synergy Pharmaceuticals, Inc.*

      106,518        649  

Synthetic Biologics, Inc.*

      44,148        34  

Synutra International, Inc.*

      11,399        61  

Syros Pharmaceuticals, Inc.*

      2,705        33  

Teligent, Inc.

      24,303        161  

TESARO, Inc.*

      16,697        2,245  

Tetraphase Pharmaceuticals, Inc.*

      19,772        80  

TG Therapeutics, Inc.*

      22,835        106  

TherapeuticsMD, Inc.*

      87,689        506  

Theravance Biopharma, Inc.*

      23,427        747  

Titan Pharmaceuticals, Inc.*

      10,924        44  

Tokai Pharmaceuticals, Inc.*

      5,289        5  

Trevena, Inc.*

      26,074        153  

Ultragenyx Pharmaceutical, Inc.*

      21,040        1,479  

USANA Health Sciences, Inc.*

      6,104        374  

Vanda Pharmaceuticals, Inc.*

      21,331        340  

Versartis, Inc.*

      18,693        278  

Vital Therapies, Inc.*

      14,911        65  

Voyager Therapeutics, Inc.*

      6,838        87  

vTv Therapeutics, Inc., Class A*

      4,422        21  

WaVe Life Sciences Ltd.*

      4,301        112  

XBiotech, Inc.*

      10,183        103  

Xencor, Inc.*

      21,059        554  

Zafgen, Inc.*

      13,318        42  

ZIOPHARM Oncology, Inc.*

      71,317        382  

Zogenix, Inc.*

      14,699        179  
  

 

 

     

 

 

  
        63,430  
     

 

 

  

Chemicals - 2.7%

      

A. Schulman, Inc.

      16,834        563  

AgroFresh Solutions, Inc.*

      12,798        34  

American Vanguard Corp.

      16,449        315  

Balchem Corp.

      18,368        1,541  

Calgon Carbon Corp.

      29,386        500  

Chemours (The) Co.

      106,996        2,364  

Chemtura Corp.*

      37,113        1,232  

Codexis, Inc.*

      19,536        90  

CSW Industrials, Inc.*

      8,391        309  

Ferro Corp.*

      48,832        700  

FutureFuel Corp.

      14,852        206  

GCP Applied Technologies, Inc.*

      41,309        1,105  

H.B. Fuller Co.

      29,227        1,412  

Hawkins, Inc.

      5,580        301  

Ingevity Corp.*

      24,865        1,364  

Innophos Holdings, Inc.

      11,281        590  

Innospec, Inc.

      13,731        941  

KMG Chemicals, Inc.

      5,304        206  

Koppers Holdings, Inc.*

      11,812        476  

Kraton Corp.*

      17,232        491  

Kronos Worldwide, Inc.

      12,689        151  

Landec Corp.*

      15,848        219  

LSB Industries, Inc.*

      12,436        105  

Lydall, Inc.*

      9,711        601  

Materion Corp.

      11,706        464  

Minerals Technologies, Inc.

      20,226        1,562  

Oil-Dri Corp. of America

      2,982        114  

Olin Corp.

      96,684        2,476  

OMNOVA Solutions, Inc.*

      24,800        248  

PolyOne Corp.

      48,991        1,570  

Quaker Chemical Corp.

      7,530        963  

Rayonier Advanced Materials, Inc.

      24,931        385  

Sensient Technologies Corp.

      25,948        2,039  

Stepan Co.

      11,459        934  

Trecora Resources*

      11,446        158  

Trinseo S.A.

      15,834        939  

Tronox Ltd., Class A

      38,096        393  

Univar, Inc.*

      24,963        708  

Valhi, Inc.

      15,993        55  

WD-40 Co.

      8,199        958  
  

 

 

     

 

 

  
        29,782  
     

 

 

  

Commercial Services - 2.7%

      

ABM Industries, Inc.

      32,503        1,327  

AdvancePierre Foods Holdings, Inc.

      12,580        375  

Advisory Board (The) Co.*

      24,042        799  

Alarm.com Holdings, Inc.

      5,977        166  

AMN Healthcare Services, Inc.*

      27,631        1,062  

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Commercial Services - 2.7% continued

      

ARC Document Solutions, Inc.*

      23,833      $ 121  

Ascent Capital Group, Inc., Class A*

      5,937        97  

Barrett Business Services, Inc.

      4,065        261  

Brady Corp., Class A

      26,642        1,000  

Brink’s (The) Co.

      26,298        1,085  

Care.com, Inc.*

      8,524        73  

CBIZ, Inc.*

      28,860        395  

CEB, Inc.

      18,786        1,138  

Cimpress N.V.*

      14,652        1,342  

Collectors Universe, Inc.

      4,333        92  

CorVel Corp.*

      5,743        210  

CRA International, Inc.

      4,746        174  

Cross Country Healthcare, Inc.*

      18,440        288  

Deluxe Corp.

      28,530        2,043  

Ennis, Inc.

      15,383        267  

Franklin Covey Co.*

      5,975        120  

FTI Consulting, Inc.*

      24,240        1,093  

G&K Services, Inc., Class A

      11,320        1,092  

GP Strategies Corp.*

      7,649        219  

Hackett Group (The), Inc.

      12,947        229  

Healthcare Services Group, Inc.

      41,078        1,609  

Heidrick & Struggles International, Inc.

      10,663        258  

Hill International, Inc.*

      18,131        79  

HMS Holdings Corp.*

      49,035        891  

Huron Consulting Group, Inc.*

      12,702        643  

Information Services Group, Inc.*

      18,151        66  

Insperity, Inc.

      9,097        645  

Kelly Services, Inc., Class A

      17,197        394  

Kforce, Inc.

      14,187        328  

Korn/Ferry International

      33,391        983  

LifeLock, Inc.*

      49,327        1,180  

National Research Corp., Class A

      4,961        94  

Navigant Consulting, Inc.*

      27,556        721  

On Assignment, Inc.*

      29,728        1,313  

Patriot National, Inc.*

      6,768        32  

Quad/Graphics, Inc.

      16,953        456  

Resources Connection, Inc.

      20,683        398  

RPX Corp.*

      28,892        312  

Sotheby’s*

      28,760        1,146  

SP Plus Corp.*

      10,099        284  

TriNet Group, Inc.*

      24,712        633  

TrueBlue, Inc.*

      24,438        602  

UniFirst Corp.

      8,812        1,266  

Vectrus, Inc.*

      6,060        145  

Viad Corp.

      11,735        518  
  

 

 

     

 

 

  
        30,064  
     

 

 

  

Construction Materials - 0.9%

      

Advanced Drainage Systems, Inc.

      20,223        417  

Apogee Enterprises, Inc.

      16,600        889  

Boise Cascade Co.*

      22,913        516  

Continental Building Products, Inc.*

      20,811        481  

Deltic Timber Corp.

      6,274        483  

Forterra, Inc.*

      11,076        240  

Headwaters, Inc.*

      42,618        1,002  

Louisiana-Pacific Corp.*

      84,239        1,595  

Patrick Industries, Inc.*

      8,422        643  

Ply Gem Holdings, Inc.*

      13,104        213  

Smart Sand, Inc.*

      7,035        116  

Summit Materials, Inc., Class A*

      44,814        1,066  

Trex Co., Inc.*

      17,210        1,108  

United States Lime & Minerals, Inc.*

      1,056        80  

Universal Forest Products, Inc.

      11,591        1,184  

US Concrete, Inc.*

      8,397        550  
  

 

 

     

 

 

  
        10,583  
     

 

 

  

Consumer Products - 2.2%

      

Alico, Inc.

      2,118        57  

Alliance One International, Inc.*

      4,849        93  

Amplify Snack Brands, Inc.*

      17,017        150  

Avon Products, Inc.*

      257,319        1,297  

B&G Foods, Inc.

      38,374        1,681  

Boston Beer (The) Co., Inc., Class A*

      5,151        875  

Cal-Maine Foods, Inc.

      18,163        802  

Central Garden & Pet Co.*

      5,866        194  

Central Garden & Pet Co., Class A*

      19,686        608  

Clearwater Paper Corp.*

      9,966        653  

Coca-Cola Bottling Co. Consolidated

      2,743        491  

Craft Brew Alliance, Inc.*

      7,384        125  

Darling Ingredients, Inc.*

      95,847        1,237  

Dean Foods Co.

      53,476        1,165  

elf Beauty, Inc.*

      5,762        167  

Farmer Brothers Co.*

      4,864        178  

Fresh Del Monte Produce, Inc.

      18,857        1,143  

Helen of Troy Ltd.*

      16,342        1,380  

HRG Group, Inc.*

      69,094        1,075  

Inter Parfums, Inc.

      10,213        334  

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Consumer Products - 2.2% continued

      

Inventure Foods, Inc.*

      10,611      $ 105  

J&J Snack Foods Corp.

      8,758        1,169  

John B. Sanfilippo & Son, Inc.

      4,922        346  

Lancaster Colony Corp.

      10,950        1,548  

Lifeway Foods, Inc.*

      2,538        29  

Limoneira Co.

      6,659        143  

MGP Ingredients, Inc.

      7,382        369  

National Beverage Corp.

      6,911        353  

Orchids Paper Products Co.

      5,488        144  

Primo Water Corp.*

      12,196        150  

Revlon, Inc., Class A*

      6,919        202  

Sanderson Farms, Inc.

      11,675        1,100  

Seaboard Corp.*

      156        617  

Seneca Foods Corp., Class A*

      3,788        152  

Snyder’s-Lance, Inc.

      46,946        1,800  

Tejon Ranch Co.*

      8,059        205  

TerraVia Holdings, Inc.*

      43,637        50  

Tootsie Roll Industries, Inc.

      10,156        404  

Turning Point Brands, Inc.*

      3,477        43  

Universal Corp.

      12,976        827  

Vector Group Ltd.

      54,102        1,230  
  

 

 

     

 

 

  
        24,691  
     

 

 

  

Consumer Services - 1.1%

      

Aaron’s, Inc.

      38,389        1,228  

American Public Education, Inc.*

      9,129        224  

Apollo Education Group, Inc.*

      50,356        499  

Bridgepoint Education, Inc.*

      10,654        108  

Bright Horizons Family Solutions, Inc.*

      25,627        1,794  

Cambium Learning Group, Inc.*

      6,958        35  

Capella Education Co.

      6,624        582  

Career Education Corp.*

      38,902        393  

Carriage Services, Inc.

      8,308        238  

DeVry Education Group, Inc.

      36,490        1,138  

Grand Canyon Education, Inc.*

      26,245        1,534  

K12, Inc.*

      19,783        339  

Matthews International Corp., Class A

      18,660        1,434  

Medifast, Inc.

      6,135        255  

Nutrisystem, Inc.

      17,000        589  

Regis Corp.*

      21,618        314  

Rent-A-Center, Inc.

      30,446        343  

Strayer Education, Inc.*

      6,131        494  

Weight Watchers International, Inc.*

      16,123        185  
  

 

 

     

 

 

  
        11,726  
     

 

 

  

Containers & Packaging - 0.3%

      

AEP Industries, Inc.

      2,326        270  

Greif, Inc., Class A

      15,018        771  

Greif, Inc., Class B

      3,336        225  

KapStone Paper and Packaging Corp.

      50,437        1,112  

Multi Packaging Solutions International Ltd.*

      12,411        177  

Multi-Color Corp.

      7,994        620  

Myers Industries, Inc.

      12,455        178  

Tredegar Corp.

      14,940        359  

UFP Technologies, Inc.*

      3,750        96  
  

 

 

     

 

 

  
        3,808  
     

 

 

  

Design, Manufacturing & Distribution - 0.6%

 

   

Benchmark Electronics, Inc.*

      28,815        879  

CTS Corp.

      18,132        406  

Fabrinet*

      20,467        825  

Plexus Corp.*

      19,318        1,044  

Sanmina Corp.*

      42,892        1,572  

Tech Data Corp.*

      20,431        1,730  
  

 

 

     

 

 

  
        6,456  
     

 

 

  

Distributors - Consumer Staples - 0.4%

      

Andersons (The), Inc.

      15,807        707  

Calavo Growers, Inc.

      8,969        551  

Chefs’ Warehouse (The), Inc.*

      11,611        183  

Core-Mark Holding Co., Inc.

      26,684        1,149  

Performance Food Group Co.*

      21,672        520  

United Natural Foods, Inc.*

      28,929        1,381  
  

 

 

     

 

 

  
        4,491  
     

 

 

  

Distributors - Discretionary - 0.5%

      

Bassett Furniture Industries, Inc.

      5,952        181  

ePlus, Inc.*

      3,652        421  

Essendant, Inc.

      21,769        455  

FTD Cos., Inc.*

      10,219        244  

G-III Apparel Group Ltd.*

      25,251        746  

Insight Enterprises, Inc.*

      21,405        865  

PC Connection, Inc.

      6,864        193  

ScanSource, Inc.*

      14,551        587  

SYNNEX Corp.

      17,057        2,064  

Systemax, Inc.

      6,261        55  

Veritiv Corp.*

      4,869        262  
  

 

 

     

 

 

  
        6,073  
     

 

 

  

Electrical Equipment - 1.4%

      

AAON, Inc.

      23,680        783  

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Electrical Equipment - 1.4% continued

      

Allied Motion Technologies, Inc.

      3,405      $ 73  

Argan, Inc.

      7,752        547  

Babcock & Wilcox Enterprises, Inc.*

      26,453        439  

Badger Meter, Inc.

      16,383        605  

Bel Fuse, Inc., Class B

      5,500        170  

Belden, Inc.

      24,488        1,831  

Chase Corp.

      4,181        349  

CompX International, Inc.

      850        14  

Energous Corp.*

      8,638        146  

ESCO Technologies, Inc.

      14,749        836  

FARO Technologies, Inc.*

      9,829        354  

Generac Holdings, Inc.*

      38,156        1,554  

General Cable Corp.

      28,433        542  

Itron, Inc.*

      19,511        1,226  

Kimball Electronics, Inc.*

      16,342        297  

Landauer, Inc.

      5,665        272  

Littelfuse, Inc.

      12,921        1,961  

LSI Industries, Inc.

      13,999        136  

Mesa Laboratories, Inc.

      1,790        220  

NL Industries, Inc.*

      3,800        31  

Novanta, Inc.*

      18,711        393  

OSI Systems, Inc.*

      10,274        782  

Powell Industries, Inc.

      5,081        198  

Preformed Line Products Co.

      1,449        84  

SPX Corp.*

      24,427        579  

Stoneridge, Inc.*

      15,532        275  

Watts Water Technologies, Inc., Class A

      16,161        1,054  
  

 

 

     

 

 

  
        15,751  
     

 

 

  

Engineering & Construction Services - 1.2%

      

Comfort Systems USA, Inc.

      21,793        726  

Dycom Industries, Inc.*

      17,841        1,432  

EMCOR Group, Inc.

      35,331        2,500  

EnerNOC, Inc.*

      15,266        92  

Exponent, Inc.

      14,873        897  

Granite Construction, Inc.

      23,080        1,269  

Great Lakes Dredge & Dock Corp.*

      34,058        143  

IES Holdings, Inc.*

      4,583        88  

Installed Building Products, Inc.*

      11,698        483  

Kratos Defense & Security Solutions, Inc.*

      34,121        253  

Layne Christensen Co.*

      10,606        115  

MasTec, Inc.*

      38,661        1,479  

Mistras Group, Inc.*

      10,179        261  

MYR Group, Inc.*

      8,801        332  

NV5 Global, Inc.*

      4,289        143  

Orion Group Holdings, Inc.*

      15,120        150  

Primoris Services Corp.

      23,763        541  

Team, Inc.*

      16,890        663  

TopBuild Corp.*

      22,581        804  

TRC Cos., Inc.*

      11,158        118  

Tutor Perini Corp.*

      22,202        622  

VSE Corp.

      4,999        194  

Willbros Group, Inc.*

      25,261        82  
  

 

 

     

 

 

  
        13,387  
     

 

 

  

Forest & Paper Products - 0.2%

      

Neenah Paper, Inc.

      9,615        819  

P.H. Glatfelter Co.

      25,408        607  

Schweitzer-Mauduit International, Inc.

      17,576        800  
  

 

 

     

 

 

  
        2,226  
     

 

 

  

Gaming, Lodging & Restaurants - 2.8%

      

Belmond Ltd., Class A*

      49,197        657  

Biglari Holdings, Inc.*

      598        283  

BJ’s Restaurants, Inc.*

      13,719        539  

Bloomin’ Brands, Inc.

      60,793        1,096  

Bob Evans Farms, Inc.

      11,551        615  

Bojangles’,Inc.*

      5,702        106  

Boyd Gaming Corp.*

      47,978        968  

Buffalo Wild Wings, Inc.*

      11,048        1,706  

Caesars Acquisition Co., Class A*

      28,116        380  

Caesars Entertainment Corp.*

      33,037        281  

Carrols Restaurant Group, Inc.*

      20,398        311  

Century Casinos, Inc.*

      12,408        102  

Cheesecake Factory (The), Inc.

      26,518        1,588  

Churchill Downs, Inc.

      7,858        1,182  

Chuy’s Holdings, Inc.*

      9,528        309  

Cracker Barrel Old Country Store, Inc.

      11,203        1,871  

Dave & Buster’s Entertainment, Inc.*

      22,130        1,246  

Del Frisco’s Restaurant Group, Inc.*

      13,751        234  

Del Taco Restaurants, Inc.*

      13,440        190  

Denny’s Corp.*

      44,315        569  

DineEquity, Inc.

      10,131        780  

El Pollo Loco Holdings, Inc.*

      11,798        145  

Eldorado Resorts, Inc.*

      16,560        281  

Empire Resorts, Inc.*

      1,664        38  

Fiesta Restaurant Group, Inc.*

      15,517        463  

Fogo De Chao, Inc.*

      2,760        40  

 

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Gaming, Lodging & Restaurants - 2.8% continued

      

Golden Entertainment, Inc.

      5,938      $ 72  

Habit Restaurants (The), Inc., Class A*

      7,847        135  

ILG, Inc.

      65,837        1,196  

Isle of Capri Casinos, Inc.*

      14,543        359  

J. Alexander’s Holdings, Inc.*

      7,567        81  

Jack in the Box, Inc.

      19,052        2,127  

Jamba, Inc.*

      7,497        77  

Kona Grill, Inc.*

      4,586        57  

La Quinta Holdings, Inc.*

      49,600        705  

Lindblad Expeditions Holdings, Inc.*

      8,557        81  

Luby’s, Inc.*

      11,254        48  

Marriott Vacations Worldwide Corp.

      13,080        1,110  

Monarch Casino & Resort, Inc.*

      6,210        160  

Nathan’s Famous, Inc.*

      1,776        115  

Noodles & Co.*

      6,779        28  

Papa John’s International, Inc.

      15,856        1,357  

Penn National Gaming, Inc.*

      43,875        605  

Pinnacle Entertainment, Inc.*

      31,457        456  

Popeyes Louisiana Kitchen, Inc.*

      12,019        727  

Potbelly Corp.*

      13,830        178  

Red Lion Hotels Corp.*

      8,269        69  

Red Robin Gourmet Burgers, Inc.*

      7,439        419  

Red Rock Resorts, Inc., Class A

      17,735        411  

Ruby Tuesday, Inc.*

      36,152        117  

Ruth’s Hospitality Group, Inc.

      18,493        338  

Scientific Games Corp., Class A*

      30,024        420  

Shake Shack, Inc., Class A*

      9,138        327  

Sonic Corp.

      25,917        687  

Texas Roadhouse, Inc.

      38,676        1,866  

Wingstop, Inc.

      9,150        271  

Zoe’s Kitchen, Inc.*

      11,323        272  
  

 

 

     

 

 

  
        30,851  
     

 

 

  

Hardware - 2.9%

      

3D Systems Corp.*

      62,414        829  

A10 Networks, Inc.*

      25,676        213  

Acacia Communications, Inc.*

      3,050        188  

ADTRAN, Inc.

      28,930        647  

Aerohive Networks, Inc.*

      12,772        73  

AVX Corp.

      27,493        430  

CalAmp Corp.*

      21,014        305  

Ciena Corp.*

      80,204        1,958  

Clearfield, Inc.*

      6,658        138  

Comtech Telecommunications Corp.

      13,123        156  

Control4 Corp.*

      11,370        116  

Cray, Inc.*

      23,585        488  

Daktronics, Inc.

      21,789        233  

Datalink Corp.*

      11,555        130  

Diebold Nixdorf, Inc.

      39,895        1,003  

Digimarc Corp.*

      5,778        173  

Eastman Kodak Co.*

      10,088        156  

Electronics For Imaging, Inc.*

      27,426        1,203  

EMCORE Corp.

      15,167        132  

ExOne (The) Co.*

      6,210        58  

Extreme Networks, Inc.*

      61,225        308  

Finisar Corp.*

      62,763        1,900  

Gigamon, Inc.*

      18,891        860  

GoPro, Inc., Class A*

      59,311        517  

Harmonic, Inc.*

      44,798        224  

IMAX Corp.*

      34,380        1,080  

Immersion Corp.*

      17,241        183  

Infinera Corp.*

      82,150        697  

InterDigital, Inc.

      20,221        1,847  

Ixia*

      37,219        599  

Knowles Corp.*

      51,343        858  

Kopin Corp.*

      36,463        104  

KVH Industries, Inc.*

      8,541        101  

Loral Space & Communications, Inc.*

      7,510        308  

Lumentum Holdings, Inc.*

      29,505        1,140  

Mercury Systems, Inc.*

      22,627        684  

NETGEAR, Inc.*

      18,871        1,026  

NetScout Systems, Inc.*

      52,290        1,647  

Nimble Storage, Inc.*

      36,706        291  

Numerex Corp., Class A*

      7,962        59  

Plantronics, Inc.

      19,317        1,058  

Pure Storage, Inc., Class A*

      39,920        451  

Quantenna Communications, Inc.*

      4,029        73  

Radisys Corp.*

      20,735        92  

ShoreTel, Inc.*

      40,330        288  

Silicom Ltd.

      3,259        134  

Sonus Networks, Inc.*

      27,628        174  

Stratasys Ltd.*

      28,622        473  

Super Micro Computer, Inc.*

      22,419        629  

Telenav, Inc.*

      18,603        131  

TTM Technologies, Inc.*

      42,676        582  

Ubiquiti Networks, Inc.*

      15,207        879  

Universal Electronics, Inc.*

      8,315        537  

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Hardware - 2.9% continued

      

ViaSat, Inc.*

      30,197      $ 2,000  

Viavi Solutions, Inc.*

      136,710        1,118  

Vicor Corp.*

      9,882        149  

Vishay Precision Group, Inc.*

      7,031        133  

Vocera Communications, Inc.*

      14,591        270  

ZAGG, Inc.*

      16,169        115  
  

 

 

     

 

 

  
        32,348  
     

 

 

  

Health Care Facilities & Services - 2.2%

      

AAC Holdings, Inc.*

      5,773        42  

Addus HomeCare Corp.*

      4,445        156  

Adeptus Health, Inc., Class A*

      8,036        61  

Air Methods Corp.*

      19,685        627  

Almost Family, Inc.*

      4,700        207  

Amedisys, Inc.*

      16,432        700  

American Renal Associates Holdings, Inc.*

      5,071        108  

BioScrip, Inc.*

      65,366        68  

Capital Senior Living Corp.*

      16,465        264  

Chemed Corp.

      9,418        1,511  

Civitas Solutions, Inc.*

      8,792        175  

Community Health Systems, Inc.*

      65,156        364  

Diplomat Pharmacy, Inc.*

      26,919        339  

Ensign Group (The), Inc.

      28,056        623  

Enzo Biochem, Inc.*

      22,975        159  

Genesis Healthcare, Inc.*

      22,138        94  

HealthEquity, Inc.*

      25,143        1,019  

HealthSouth Corp.

      51,690        2,132  

Healthways, Inc.*

      18,501        421  

INC Research Holdings, Inc., Class A*

      24,168        1,271  

Independence Holding Co.

      4,138        81  

Invitae Corp.*

      13,284        105  

Kindred Healthcare, Inc.

      49,379        388  

LHC Group, Inc.*

      8,837        404  

Magellan Health, Inc.*

      13,596        1,023  

Medpace Holdings, Inc.*

      4,734        171  

Molina Healthcare, Inc.*

      25,255        1,370  

Natera, Inc.*

      15,183        178  

National HealthCare Corp.

      6,577        498  

NeoGenomics, Inc.*

      30,984        266  

Nobilis Health Corp.

      32,316        68  

Novan, Inc.*

      2,835        77  

OvaScience, Inc.*

      18,287        28  

Owens & Minor, Inc.

      36,259        1,280  

PAREXEL International Corp.*

      30,652        2,014  

PharMerica Corp.*

      17,329        436  

PRA Health Sciences, Inc.*

      14,171        781  

Providence Service (The) Corp.*

      7,617        290  

Quorum Health Corp.*

      17,255        125  

RadNet, Inc.*

      22,655        146  

Select Medical Holdings Corp.*

      62,632        830  

Surgery Partners, Inc.*

      10,834        172  

Surgical Care Affiliates, Inc.*

      15,669        725  

Team Health Holdings, Inc.*

      39,604        1,721  

Teladoc, Inc.*

      12,076        199  

Triple-S Management Corp., Class B*

      13,608        282  

U.S. Physical Therapy, Inc.

      7,048        495  

Universal American Corp.*

      24,511        244  
  

 

 

     

 

 

  
        24,738  
     

 

 

  

Home & Office Products - 1.8%

      

ACCO Brands Corp.*

      62,433        815  

American Woodmark Corp.*

      8,128        612  

Armstrong Flooring, Inc.*

      13,609        271  

AV Homes, Inc.*

      6,871        109  

Beazer Homes USA, Inc.*

      18,340        244  

Caesarstone Ltd.*

      13,878        398  

Cavco Industries, Inc.*

      4,966        496  

Century Communities, Inc.*

      8,873        186  

CSS Industries, Inc.

      5,101        138  

Flexsteel Industries, Inc.

      3,770        232  

Green Brick Partners, Inc.*

      13,599        137  

Griffon Corp.

      17,601        461  

Herman Miller, Inc.

      34,958        1,196  

HNI Corp.

      26,470        1,480  

Hooker Furniture Corp.

      6,680        253  

Hovnanian Enterprises, Inc., Class A*

      70,883        193  

Interface, Inc.

      37,980        705  

iRobot Corp.*

      15,599        912  

KB Home

      48,840        772  

Kimball International, Inc., Class B

      21,479        377  

Knoll, Inc.

      28,222        788  

La-Z-Boy, Inc.

      28,567        887  

LGI Homes, Inc.*

      8,973        258  

Libbey, Inc.

      12,770        248  

Lifetime Brands, Inc.

      6,171        110  

M/I Homes, Inc.*

      13,768        347  

Masonite International Corp.*

      17,712        1,165  

 

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Home & Office Products - 1.8% continued

      

MDC Holdings, Inc.

      24,258      $ 622  

Meritage Homes Corp.*

      22,317        777  

NACCO Industries, Inc., Class A

      2,278        206  

New Home (The) Co., Inc.*

      7,957        93  

PGT Innovations, Inc.*

      28,013        321  

PICO Holdings, Inc.*

      12,493        189  

Quanex Building Products Corp.

      19,988        406  

St. Joe (The) Co.*

      29,655        563  

Steelcase, Inc., Class A

      50,064        896  

Taylor Morrison Home Corp., Class A*

      17,684        341  

TRI Pointe Group, Inc.*

      86,673        995  

UCP, Inc., Class A*

      4,673        56  

WCI Communities, Inc.*

      12,563        295  

William Lyon Homes, Class A*

      13,904        265  
  

 

 

     

 

 

  
        19,815  
     

 

 

  

Industrial Services - 0.6%

      

Anixter International, Inc.*

      16,938        1,373  

Applied Industrial Technologies, Inc.

      21,211        1,260  

CAI International, Inc.*

      9,399        81  

DXP Enterprises, Inc.*

      8,974        312  

H&E Equipment Services, Inc.

      18,418        428  

Kaman Corp.

      15,359        752  

McGrath RentCorp

      13,816        541  

Neff Corp., Class A*

      5,404        76  

SiteOne Landscape Supply, Inc.*

      6,786        236  

Textainer Group Holdings Ltd.

      12,967        97  

Titan Machinery, Inc.*

      10,238        149  

Triton International Ltd.

      23,563        372  

Wesco Aircraft Holdings, Inc.*

      32,231        482  
  

 

 

     

 

 

  
        6,159  
     

 

 

  

Institutional Financial Services - 0.8%

      

BGC Partners, Inc., Class A

      127,200        1,301  

Cowen Group, Inc., Class A*

      14,864        230  

Evercore Partners, Inc., Class A

      22,822        1,568  

FBR & Co.

      3,638        47  

GAIN Capital Holdings, Inc.

      21,619        142  

Greenhill & Co., Inc.

      16,191        449  

Houlihan Lokey, Inc.

      7,154        223  

INTL. FCStone, Inc.*

      8,697        345  

Investment Technology Group, Inc.

      19,095        377  

KCG Holdings, Inc., Class A*

      30,865        409  

Moelis & Co., Class A

      10,887        369  

Piper Jaffray Cos.*

      8,404        609  

PJT Partners, Inc., Class A

      10,327        319  

Stifel Financial Corp.*

      37,480        1,872  

Virtu Financial, Inc., Class A

      14,687        234  
  

 

 

     

 

 

  
        8,494  
     

 

 

  

Insurance - 2.6%

      

Ambac Financial Group, Inc.*

      26,347        593  

American Equity Investment Life Holding Co.

      50,020        1,127  

AMERISAFE, Inc.

      10,998        686  

Argo Group International Holdings Ltd.

      16,792        1,107  

Atlas Financial Holdings, Inc.*

      6,110        110  

Baldwin & Lyons, Inc., Class B

      5,093        128  

Blue Capital Reinsurance Holdings Ltd.

      3,373        62  

Citizens, Inc.*

      26,833        263  

CNO Financial Group, Inc.

      104,612        2,003  

Crawford & Co., Class B

      6,958        87  

Donegal Group, Inc., Class A

      4,521        79  

eHealth, Inc.*

      11,039        118  

EMC Insurance Group, Inc.

      4,750        143  

Employers Holdings, Inc.

      18,628        738  

Enstar Group Ltd.*

      6,634        1,311  

FBL Financial Group, Inc., Class A

      5,761        450  

Federated National Holding Co.

      7,369        138  

Fidelity & Guaranty Life

      6,955        165  

Genworth Financial, Inc., Class A*

      293,886        1,120  

Global Indemnity Ltd.*

      4,987        191  

Greenlight Capital Re Ltd., Class A*

      17,211        392  

Hallmark Financial Services, Inc.*

      8,430        98  

HCI Group, Inc.

      4,999        197  

Heritage Insurance Holdings, Inc.

      15,507        243  

Horace Mann Educators Corp.

      23,566        1,009  

Infinity Property & Casualty Corp.

      6,350        558  

James River Group Holdings Ltd.

      8,298        345  

Kemper Corp.

      23,115        1,024  

Kinsale Capital Group, Inc.

      3,882        132  

Maiden Holdings Ltd.

      40,209        702  

MBIA, Inc.*

      76,424        818  

National General Holdings Corp.

      28,081        702  

National Western Life Group, Inc., Class A

      1,316        409  

Navigators Group (The), Inc.

      6,588        776  

NMI Holdings, Inc., Class A*

      28,593        304  

 

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Insurance - 2.6% continued

      

OneBeacon Insurance Group Ltd., Class A

      12,076      $ 194  

Primerica, Inc.

      27,441        1,898  

Radian Group, Inc.

      125,779        2,261  

RLI Corp.

      22,199        1,401  

Safety Insurance Group, Inc.

      8,259        609  

Selective Insurance Group, Inc.

      33,189        1,429  

State Auto Financial Corp.

      9,191        246  

State National Cos., Inc.

      17,622        244  

Third Point Reinsurance Ltd.*

      39,027        451  

Trupanion, Inc.*

      8,720        135  

United Fire Group, Inc.

      12,503        615  

United Insurance Holdings Corp.

      10,178        154  

Universal Insurance Holdings, Inc.

      19,200        545  

WMIH Corp.*

      118,424        184  
  

 

 

     

 

 

  
        28,694  
     

 

 

  

Iron & Steel - 0.8%

      

AK Steel Holding Corp.*

      182,060        1,859  

ALJ Regional Holdings, Inc.*

      10,820        48  

Allegheny Technologies, Inc.

      63,349        1,009  

Carpenter Technology Corp.

      26,942        975  

Cliffs Natural Resources, Inc.*

      128,843        1,084  

Commercial Metals Co.

      67,084        1,461  

Haynes International, Inc.

      7,337        315  

Olympic Steel, Inc.

      5,248        127  

Ryerson Holding Corp.*

      7,445        99  

Schnitzer Steel Industries, Inc., Class A

      15,155        390  

SunCoke Energy, Inc.*

      38,030        431  

TimkenSteel Corp.*

      23,017        356  

Worthington Industries, Inc.

      26,285        1,247  
  

 

 

     

 

 

  
        9,401  
     

 

 

  

Leisure Products - 0.4%

      

Acushnet Holdings Corp.*

      13,369        263  

Arctic Cat, Inc.*

      7,589        114  

Callaway Golf Co.

      55,346        607  

Camping World Holdings, Inc., Class A

      7,138        233  

Drew Industries, Inc.

      13,859        1,493  

Escalade, Inc.

      5,463        72  

Fox Factory Holding Corp.*

      13,224        367  

JAKKS Pacific, Inc.*

      7,841        40  

Johnson Outdoors, Inc., Class A

      2,748        109  

Malibu Boats, Inc., Class A*

      10,757        205  

Marine Products Corp.

      6,471        90  

MCBC Holdings, Inc.

      4,342        63  

Nautilus, Inc.*

      18,111        335  

Winnebago Industries, Inc.

      15,751        499  
  

 

 

     

 

 

  
        4,490  
     

 

 

  

Machinery - 2.2%

      

Actuant Corp., Class A

      34,435        894  

Alamo Group, Inc.

      5,552        422  

Altra Industrial Motion Corp.

      14,849        548  

Astec Industries, Inc.

      11,359        766  

Briggs & Stratton Corp.

      24,994        556  

CIRCOR International, Inc.

      9,707        630  

Columbus McKinnon Corp.

      11,481        310  

Curtiss-Wright Corp.

      25,839        2,541  

Douglas Dynamics, Inc.

      12,936        435  

Federal Signal Corp.

      34,943        545  

Franklin Electric Co., Inc.

      26,857        1,045  

Gencor Industries, Inc.*

      4,506        71  

Gorman-Rupp (The) Co.

      10,301        319  

Graham Corp.

      5,545        123  

Hardinge, Inc.

      6,817        76  

Hillenbrand, Inc.

      34,498        1,323  

Hurco Cos., Inc.

      3,679        122  

Hyster-Yale Materials Handling, Inc.

      5,482        350  

John Bean Technologies Corp.

      17,013        1,462  

Joy Global, Inc.

      57,423        1,608  

Kadant, Inc.

      6,257        383  

Kennametal, Inc.

      46,152        1,443  

Lindsay Corp.

      6,169        460  

Manitowoc (The) Co., Inc.*

      75,121        449  

Milacron Holdings Corp.*

      8,498        158  

MSA Safety, Inc.

      18,157        1,259  

MTS Systems Corp.

      9,859        559  

Mueller Water Products, Inc., Class A

      91,041        1,212  

NN, Inc.

      15,212        290  

Power Solutions International, Inc.*

      2,614        20  

Raven Industries, Inc.

      21,176        534  

Rexnord Corp.*

      48,265        945  

SPX FLOW, Inc.*

      20,762        666  

Standex International Corp.

      7,426        652  

Sun Hydraulics Corp.

      13,722        548  

Tennant Co.

      10,226        728  

Titan International, Inc.

      26,214        294  
  

 

 

     

 

 

  
        24,746  
     

 

 

  

 

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Manufactured Goods - 1.1%

      

Aegion Corp.*

      20,406      $ 484  

Ampco-Pittsburgh Corp.

      4,971        83  

Atkore International Group, Inc.*

      7,057        169  

AZZ, Inc.

      15,071        963  

Barnes Group, Inc.

      29,355        1,392  

Chart Industries, Inc.*

      17,812        641  

EnPro Industries, Inc.

      12,539        845  

Gibraltar Industries, Inc.*

      18,299        762  

Global Brass & Copper Holdings, Inc.

      12,437        427  

Handy & Harman Ltd.*

      1,427        36  

Insteel Industries, Inc.

      10,144        361  

Lawson Products, Inc.*

      3,618        86  

Mueller Industries, Inc.

      33,106        1,323  

NCI Building Systems, Inc.*

      15,771        247  

Omega Flex, Inc.

      1,590        89  

Park-Ohio Holdings Corp.

      5,023        214  

Proto Labs, Inc.*

      14,417        740  

RBC Bearings, Inc.*

      13,263        1,231  

Rogers Corp.*

      10,581        813  

Simpson Manufacturing Co., Inc.

      24,118        1,055  

TriMas Corp.*

      26,371        620  
  

 

 

     

 

 

  
        12,581  
     

 

 

  

Media - 2.5%

      

Angie’s List, Inc.*

      23,084        190  

Autobytel, Inc.*

      5,049        68  

Bankrate, Inc.*

      27,425        303  

Blucora, Inc.*

      23,204        342  

Boingo Wireless, Inc.*

      20,627        251  

Central European Media Enterprises Ltd., Class A*

      43,161        110  

Daily Journal Corp.*

      644        156  

DHI Group, Inc.*

      29,101        182  

Entercom Communications Corp., Class A

      15,447        236  

Entravision Communications Corp., Class A

      38,819        272  

Eros International PLC*

      17,193        224  

EW Scripps (The) Co., Class A*

      34,689        670  

Gannett Co., Inc.

      68,935        669  

Global Sources Ltd.*

      4,705        42  

Gray Television, Inc.*

      37,750        410  

GrubHub, Inc.*

      47,164        1,774  

HealthStream, Inc.*

      15,185        380  

Hemisphere Media Group, Inc.*

      3,604        40  

Houghton Mifflin Harcourt Co.*

      72,729        789  

Liberty Media Corp.-Liberty Braves, Class A*

      5,307        109  

Liberty Media Corp.-Liberty Braves, Class C*

      18,606        383  

Liberty Media Corp.-Liberty Media, Class A*

      13,447        422  

Liberty Media Corp.-Liberty Media, Class C*

      26,780        839  

Liberty TripAdvisor Holdings, Inc., Class A*

      42,245        636  

Marchex, Inc., Class B*

      18,102        48  

MDC Partners, Inc., Class A

      29,800        195  

Media General, Inc.*

      63,226        1,191  

MeetMe, Inc.*

      23,923        118  

Meredith Corp.

      21,886        1,295  

MSG Networks, Inc., Class A*

      34,539        743  

National CineMedia, Inc.

      35,633        525  

New Media Investment Group, Inc.

      26,314        421  

New York Times (The) Co., Class A

      72,333        962  

Nexstar Broadcasting Group, Inc., Class A

      17,387        1,101  

QuinStreet, Inc.*

      21,776        82  

Quotient Technology, Inc.*

      37,789        406  

Radio One, Inc., Class D*

      14,424        42  

Reis, Inc.

      4,838        108  

RetailMeNot, Inc.*

      22,533        210  

Rubicon Project (The), Inc.*

      21,636        161  

Saga Communications, Inc., Class A

      1,997        100  

Salem Media Group, Inc., Class A

      6,411        40  

Scholastic Corp.

      15,839        752  

Shutterfly, Inc.*

      20,106        1,009  

Shutterstock, Inc.*

      11,137        529  

Sinclair Broadcast Group, Inc., Class A

      38,596        1,287  

Stamps.com, Inc.*

      9,446        1,083  

TechTarget, Inc.*

      9,580        82  

Time, Inc.

      59,897        1,069  

TiVo Corp.*

      68,339        1,428  

Townsquare Media, Inc., Class A*

      5,010        52  

Trade Desk (The), Inc., Class A*

      3,227        89  

tronc, Inc.*

      15,791        219  

TrueCar, Inc.*

      31,608        395  

Web.com Group, Inc.*

      25,051        530  

 

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Media - 2.5% continued

      

WebMD Health Corp.*

      21,753      $ 1,078  

World Wrestling Entertainment, Inc., Class A

      21,335        393  

XO Group, Inc.*

      14,827        288  
  

 

 

     

 

 

  
        27,528  
     

 

 

  

Medical Equipment & Devices - 3.4%

      

Abaxis, Inc.

      12,761        673  

Accelerate Diagnostics, Inc.*

      13,374        277  

Accuray, Inc.*

      46,764        215  

Analogic Corp.

      7,244        601  

AngioDynamics, Inc.*

      15,702        265  

AtriCure, Inc.*

      18,305        358  

Atrion Corp.

      800        406  

Avinger, Inc.*

      11,105        41  

AxoGen, Inc.*

      15,900        143  

BioTelemetry, Inc.*

      15,628        349  

Cardiovascular Systems, Inc.*

      18,543        449  

Catalent, Inc.*

      58,102        1,566  

Cerus Corp.*

      58,910        256  

ConforMIS, Inc.*

      20,822        169  

CONMED Corp.

      16,044        709  

Corindus Vascular Robotics, Inc.*

      32,143        22  

CryoLife, Inc.*

      18,318        351  

Cutera, Inc.*

      7,150        124  

Cynosure, Inc., Class A*

      13,911        634  

Endologix, Inc.*

      47,118        270  

Entellus Medical, Inc.*

      4,381        83  

Exact Sciences Corp.*

      61,403        820  

Exactech, Inc.*

      6,429        175  

Fluidigm Corp.*

      15,971        116  

Foundation Medicine, Inc.*

      7,843        139  

GenMark Diagnostics, Inc.*

      23,953        293  

Genomic Health, Inc.*

      11,057        325  

Glaukos Corp.*

      9,724        334  

Globus Medical, Inc., Class A*

      40,874        1,014  

Haemonetics Corp.*

      29,849        1,200  

Halyard Health, Inc.*

      27,315        1,010  

ICU Medical, Inc.*

      8,579        1,264  

Inogen, Inc.*

      9,582        644  

Insulet Corp.*

      33,693        1,270  

Integer Holdings Corp.*

      17,721        522  

Integra LifeSciences Holdings Corp.*

      17,629        1,512  

Invacare Corp.

      18,855        246  

InVivo Therapeutics Holdings Corp.*

      18,757        79  

iRadimed Corp.*

      2,392        27  

iRhythm Technologies, Inc.*

      4,262        128  

IRIDEX Corp.*

      4,369        61  

K2M Group Holdings, Inc.*

      14,972        300  

LeMaitre Vascular, Inc.

      8,053        204  

Luminex Corp.*

      23,324        472  

Masimo Corp.*

      23,818        1,605  

Meridian Bioscience, Inc.

      24,325        431  

Merit Medical Systems, Inc.*

      25,321        671  

MiMedx Group, Inc.*

      59,682        529  

Myriad Genetics, Inc.*

      39,289        655  

NanoString Technologies, Inc.*

      9,036        201  

Natus Medical, Inc.*

      19,071        664  

Neogen Corp.*

      21,270        1,404  

Nevro Corp.*

      14,000        1,017  

Novocure Ltd.*

      29,460        231  

NuVasive, Inc.*

      28,925        1,948  

NxStage Medical, Inc.*

      37,061        971  

Obalon Therapeutics, Inc.*

      693        6  

OraSure Technologies, Inc.*

      31,839        280  

Orthofix International N.V.*

      10,299        373  

Oxford Immunotec Global PLC*

      13,268        198  

Pacific Biosciences of California, Inc.*

      47,772        182  

Penumbra, Inc.*

      14,818        945  

Quidel Corp.*

      15,646        335  

Repligen Corp.*

      19,709        607  

Rockwell Medical, Inc.*

      28,060        184  

RTI Surgical, Inc.*

      33,887        110  

Second Sight Medical Products, Inc.*

      7,538        15  

Sparton Corp.*

      5,498        131  

Spectranetics (The) Corp.*

      25,004        613  

STAAR Surgical Co.*

      23,892        259  

Surmodics, Inc.*

      7,627        194  

T2 Biosystems, Inc.*

      8,603        45  

Tactile Systems Technology, Inc.*

      2,423        40  

Tandem Diabetes Care, Inc.*

      12,098        26  

TransEnterix, Inc.*

      40,490        53  

Trovagene, Inc.*

      16,478        35  

Utah Medical Products, Inc.

      2,071        151  

Vascular Solutions, Inc.*

      9,853        553  

Veracyte, Inc.*

      7,339        57  

 

EQUITY INDEX FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Medical Equipment & Devices - 3.4% continued

      

ViewRay, Inc.*

      4,057      $ 13  

Wright Medical Group N.V.*

      60,265        1,385  

Zeltiq Aesthetics, Inc.*

      20,608        897  
  

 

 

     

 

 

  
        38,130  
     

 

 

  

Metals & Mining - 0.8%

      

Century Aluminum Co.*

      28,954        248  

Coeur Mining, Inc.*

      104,714        952  

Encore Wire Corp.

      11,874        515  

Fairmount Santrol Holdings, Inc.*

      53,045        625  

Ferroglobe PLC

      38,340        415  

Gold Resource Corp.

      29,096        126  

Harsco Corp.

      47,126        641  

Hecla Mining Co.

      222,862        1,168  

Kaiser Aluminum Corp.

      10,396        808  

Stillwater Mining Co.*

      71,371        1,150  

US Silica Holdings, Inc.

      43,518        2,466  
  

 

 

     

 

 

  
        9,114  
     

 

 

  

Oil, Gas & Coal - 3.1%

      

Abraxas Petroleum Corp.*

      72,130        185  

Adams Resources & Energy, Inc.

      1,163        46  

Alon USA Energy, Inc.

      18,448        210  

Archrock, Inc.

      40,863        539  

Atwood Oceanics, Inc.

      35,853        471  

Bill Barrett Corp.*

      28,177        197  

Bristow Group, Inc.

      19,511        400  

California Resources Corp.*

      18,444        393  

Callon Petroleum Co.*

      84,932        1,305  

CARBO Ceramics, Inc.*

      11,094        116  

Carrizo Oil & Gas, Inc.*

      36,147        1,350  

Clayton Williams Energy, Inc.*

      3,467        413  

Clean Energy Fuels Corp.*

      51,071        146  

Cobalt International Energy, Inc.*

      237,484        290  

Contango Oil & Gas Co.*

      13,008        121  

CVR Energy, Inc.

      9,238        234  

Dawson Geophysical Co.*

      11,752        94  

Delek US Holdings, Inc.

      35,877        864  

Denbury Resources, Inc.*

      204,576        753  

Earthstone Energy, Inc.*

      1,066        15  

Eclipse Resources Corp.*

      34,254        91  

EP Energy Corp., Class A*

      22,531        148  

Era Group, Inc.*

      11,155        189  

Erin Energy Corp.*

      7,533        23  

Evolution Petroleum Corp.

      13,779        138  

EXCO Resources, Inc.*

      88,299        77  

Exterran Corp.*

      18,738        448  

Flotek Industries, Inc.*

      32,029        301  

Forum Energy Technologies, Inc.*

      35,121        773  

Geospace Technologies Corp.*

      7,494        153  

Helix Energy Solutions Group, Inc.*

      66,115        583  

Independence Contract Drilling, Inc.*

      17,505        117  

Isramco, Inc.*

      410        51  

Jones Energy, Inc., Class A*

      33,117        166  

Mammoth Energy Services, Inc.*

      4,660        71  

Matador Resources Co.*

      48,565        1,251  

Matrix Service Co.*

      15,832        359  

McDermott International, Inc.*

      141,651        1,047  

MRC Global, Inc.*

      54,723        1,109  

Natural Gas Services Group, Inc.*

      7,206        232  

Newpark Resources, Inc.*

      48,565        364  

Northern Oil and Gas, Inc.*

      27,323        75  

NOW, Inc.*

      62,515        1,280  

Oasis Petroleum, Inc.*

      136,191        2,062  

Oil States International, Inc.*

      30,058        1,172  

Panhandle Oil and Gas, Inc., Class A

      9,230        217  

Par Pacific Holdings, Inc.*

      17,893        260  

Parker Drilling Co.*

      69,155        180  

PDC Energy, Inc.*

      32,716        2,374  

PHI, Inc. (Non Voting)*

      6,947        125  

Pioneer Energy Services Corp.*

      39,230        269  

Ring Energy, Inc.*

      24,565        319  

RSP Permian, Inc.*

      57,402        2,561  

Sanchez Energy Corp.*

      32,561        294  

SEACOR Holdings, Inc.*

      9,393        669  

Seadrill Ltd.*

      220,474        752  

SemGroup Corp., Class A

      38,696        1,616  

Synergy Resources Corp.*

      108,506        967  

Tesco Corp.*

      26,876        222  

TETRA Technologies, Inc.*

      52,508        264  

Thermon Group Holdings, Inc.*

      18,965        362  

Tidewater, Inc.*

      26,503        90  

Unit Corp.*

      29,807        801  

W&T Offshore, Inc.*

      19,248        53  

Western Refining, Inc.

      47,123        1,784  

Westmoreland Coal Co.*

      10,960        194  
  

 

 

     

 

 

  
        34,795  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    17    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Passenger Transportation - 0.4%

      

Allegiant Travel Co.

      7,713      $ 1,283  

Hawaiian Holdings, Inc.*

      30,793        1,755  

SkyWest, Inc.

      29,318        1,069  
  

 

 

     

 

 

  
        4,107  
     

 

 

  

Real Estate - 0.3%

      

Alexander & Baldwin, Inc.

      27,230        1,222  

Consolidated-Tomoka Land Co.

      2,359        126  

Forestar Group, Inc.*

      19,552        260  

FRP Holdings, Inc.*

      3,636        137  

Griffin Industrial Realty, Inc.

      648        21  

Marcus & Millichap, Inc.*

      8,471        226  

RE/MAX Holdings, Inc., Class A

      10,452        585  

RMR Group (The), Inc., Class A

      4,019        159  

Stratus Properties, Inc.*

      3,618        118  

Trinity Place Holdings, Inc.*

      11,315        105  
  

 

 

     

 

 

  
        2,959  
     

 

 

  

Real Estate Investment Trusts - 8.4%

      

Acadia Realty Trust

      46,633        1,524  

AG Mortgage Investment Trust, Inc.

      16,553        283  

Agree Realty Corp.

      14,737        679  

Alexander’s, Inc.

      1,233        526  

Altisource Residential Corp.

      30,453        336  

American Assets Trust, Inc.

      22,832        984  

Anworth Mortgage Asset Corp.

      54,905        284  

Apollo Commercial Real Estate Finance, Inc.

      41,836        695  

Ares Commercial Real Estate Corp.

      15,463        212  

Armada Hoffler Properties, Inc.

      19,768        288  

ARMOUR Residential REIT, Inc.

      21,632        469  

Ashford Hospitality Prime, Inc.

      13,948        190  

Ashford Hospitality Trust, Inc.

      45,329        352  

Bluerock Residential Growth REIT, Inc.

      11,429        157  

Capstead Mortgage Corp.

      55,545        566  

CareTrust REIT, Inc.

      37,381        573  

CatchMark Timber Trust, Inc., Class A

      22,812        257  

CBL & Associates Properties, Inc.

      98,600        1,134  

Cedar Realty Trust, Inc.

      48,940        320  

Chatham Lodging Trust

      22,030        453  

Chesapeake Lodging Trust

      34,667        896  

City Office REIT, Inc.

      12,926        170  

Colony Capital, Inc., Class A

      65,699        1,330  

Colony Starwood Homes

      37,897        1,092  

Community Healthcare Trust, Inc.

      7,345        169  

CorEnergy Infrastructure Trust, Inc.

      7,133        249  

CoreSite Realty Corp.

      19,594        1,555  

Cousins Properties, Inc.

      197,871        1,684  

CYS Investments, Inc.

      88,351        683  

DiamondRock Hospitality Co.

      117,330        1,353  

DuPont Fabros Technology, Inc.

      43,615        1,916  

Dynex Capital, Inc.

      26,033        178  

Easterly Government Properties, Inc.

      19,245        385  

EastGroup Properties, Inc.

      18,412        1,360  

Education Realty Trust, Inc.

      42,947        1,817  

Farmland Partners, Inc.

      6,730        75  

FelCor Lodging Trust, Inc.

      79,978        641  

First Industrial Realty Trust, Inc.

      67,957        1,906  

First Potomac Realty Trust

      33,740        370  

Four Corners Property Trust, Inc.

      35,405        726  

Franklin Street Properties Corp.

      61,216        793  

GEO Group (The), Inc.

      43,363        1,558  

Getty Realty Corp.

      15,129        386  

Gladstone Commercial Corp.

      12,895        259  

Global Medical REIT, Inc.

      8,822        79  

Global Net Lease, Inc.

      99,892        782  

Government Properties Income Trust

      41,057        783  

Gramercy Property Trust

      246,902        2,267  

Great Ajax Corp.

      8,819        117  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      25,888        492  

Healthcare Realty Trust, Inc.

      66,738        2,023  

Hersha Hospitality Trust

      23,982        516  

Hudson Pacific Properties, Inc.

      62,723        2,181  

Independence Realty Trust, Inc.

      32,237        288  

InfraREIT, Inc.

      23,168        415  

Invesco Mortgage Capital, Inc.

      65,614        958  

Investors Real Estate Trust

      71,050        507  

iStar, Inc.*

      40,367        499  

Kite Realty Group Trust

      48,233        1,132  

Ladder Capital Corp.

      22,305        306  

LaSalle Hotel Properties

      62,351        1,900  

Lexington Realty Trust

      134,499        1,453  

LTC Properties, Inc.

      22,060        1,036  

Mack-Cali Realty Corp.

      52,189        1,515  

MedEquities Realty Trust, Inc.

      12,312        137  

Medical Properties Trust, Inc.

      172,051        2,116  

Monmouth Real Estate Investment Corp.

      37,640        574  

Monogram Residential Trust, Inc.

      98,029        1,061  

 

EQUITY INDEX FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Real Estate Investment Trusts - 8.4% continued

      

MTGE Investment Corp.

      27,082      $ 425  

National Health Investors, Inc.

      21,807        1,617  

National Storage Affiliates Trust

      20,746        458  

New Residential Investment Corp.

      141,776        2,229  

New Senior Investment Group, Inc.

      44,454        435  

New York Mortgage Trust, Inc.

      64,282        424  

New York REIT, Inc.

      96,229        974  

NexPoint Residential Trust, Inc.

      10,297        230  

NorthStar Realty Europe Corp.

      31,848        400  

One Liberty Properties, Inc.

      7,718        194  

Orchid Island Capital, Inc.

      14,287        155  

Owens Realty Mortgage, Inc.

      5,816        108  

Parkway, Inc.*

      24,510        545  

Pebblebrook Hotel Trust

      41,806        1,244  

Pennsylvania Real Estate Investment Trust

      39,989        758  

PennyMac Mortgage Investment Trust

      39,736        650  

Physicians Realty Trust

      79,033        1,498  

Potlatch Corp.

      23,705        987  

Preferred Apartment Communities, Inc., Class A

      13,764        205  

PS Business Parks, Inc.

      11,544        1,345  

QTS Realty Trust, Inc., Class A

      27,376        1,359  

RAIT Financial Trust

      52,827        177  

Ramco-Gershenson Properties Trust

      45,751        759  

Redwood Trust, Inc.

      44,501        677  

Resource Capital Corp.

      17,521        146  

Retail Opportunity Investments Corp.

      62,940        1,330  

Rexford Industrial Realty, Inc.

      38,495        893  

RLJ Lodging Trust

      71,299        1,746  

Ryman Hospitality Properties, Inc.

      25,391        1,600  

Sabra Health Care REIT, Inc.

      37,818        924  

Saul Centers, Inc.

      5,699        380  

Select Income REIT

      37,076        934  

Seritage Growth Properties, Class A

      14,644        625  

Silver Bay Realty Trust Corp.

      19,445        333  

STAG Industrial, Inc.

      44,425        1,060  

Summit Hotel Properties, Inc.

      50,784        814  

Sunstone Hotel Investors, Inc.

      127,020        1,937  

Terreno Realty Corp.

      26,636        759  

Tier REIT, Inc.

      28,179        490  

UMH Properties, Inc.

      14,006        211  

Universal Health Realty Income Trust

      7,284        478  

Urban Edge Properties

      52,490        1,444  

Urstadt Biddle Properties, Inc., Class A

      17,243        416  

Washington Prime Group, Inc.

      108,469        1,129  

Washington Real Estate Investment Trust

      42,764        1,398  

Western Asset Mortgage Capital Corp.

      24,341        245  

Whitestone REIT

      15,989        230  

Xenia Hotels & Resorts, Inc.

      60,454        1,174  
  

 

 

     

 

 

  
        93,519  
     

 

 

  

Recreational Facilities & Services - 0.3%

      

AMC Entertainment Holdings, Inc., Class A

      17,177        578  

ClubCorp Holdings, Inc.

      37,341        536  

International Speedway Corp., Class A

      15,368        565  

Intrawest Resorts Holdings, Inc.*

      9,613        172  

Marcus (The) Corp.

      10,949        345  

Planet Fitness, Inc., Class A

      15,016        302  

Reading International, Inc., Class A*

      9,639        160  

SeaWorld Entertainment, Inc.

      39,234        743  

Speedway Motorsports, Inc.

      7,166        155  
  

 

 

     

 

 

  
        3,556  
     

 

 

  

Renewable Energy - 0.5%

      

Advanced Energy Industries, Inc.*

      23,012        1,260  

Ameresco, Inc., Class A*

      13,494        74  

American Superconductor Corp.*

      6,854        51  

EnerSys

      25,432        1,986  

FuelCell Energy, Inc.*

      18,856        33  

Green Plains, Inc.

      21,178        590  

Pacific Ethanol, Inc.*

      16,606        158  

Plug Power, Inc.*

      102,054        122  

Renewable Energy Group, Inc.*

      22,266        216  

REX American Resources Corp.*

      3,277        324  

Silver Spring Networks, Inc.*

      22,047        293  

Sunrun, Inc.*

      36,807        195  

TerraForm Global, Inc., Class A*

      53,222        210  

TPI Composites, Inc.*

      3,492        56  

Vivint Solar, Inc.*

      11,637        30  
  

 

 

     

 

 

  
        5,598  
     

 

 

  

Retail - Consumer Staples - 0.6%

      

Big Lots, Inc.

      25,973        1,304  

Five Below, Inc.*

      31,288        1,250  

Fred’s, Inc., Class A

      20,386        378  

Ingles Markets, Inc., Class A

      8,121        391  

Natural Grocers by Vitamin Cottage, Inc.*

      5,446        65  

 

NORTHERN FUNDS QUARTERLY REPORT    19    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Retail - Consumer Staples - 0.6% continued

      

Ollie’s Bargain Outlet Holdings, Inc.

      11,755      $ 335  

PriceSmart, Inc.

      11,662        974  

Smart & Final Stores, Inc.*

      13,410        189  

SpartanNash Co.

      21,480        849  

SUPERVALU, Inc.*

      156,249        730  

Village Super Market, Inc., Class A

      4,271        132  

Weis Markets, Inc.

      5,657        378  
  

 

 

     

 

 

  
        6,975  
     

 

 

  

Retail - Discretionary - 3.0%

      

1-800-Flowers.com, Inc., Class A*

      15,097        162  

Abercrombie & Fitch Co., Class A

      39,884        479  

American Eagle Outfitters, Inc.

      97,274        1,476  

America’s Car-Mart, Inc.*

      4,726        207  

Asbury Automotive Group, Inc.*

      11,601        716  

Ascena Retail Group, Inc.*

      101,727        630  

At Home Group, Inc.*

      4,842        71  

Barnes & Noble Education, Inc.*

      23,301        267  

Barnes & Noble, Inc.

      37,241        415  

Beacon Roofing Supply, Inc.*

      34,930        1,609  

Big 5 Sporting Goods Corp.

      10,163        176  

Blue Nile, Inc.

      6,395        260  

BMC Stock Holdings, Inc.*

      32,431        632  

Boot Barn Holdings, Inc.*

      7,978        100  

Buckle (The), Inc.

      16,564        378  

Build-A-Bear Workshop, Inc.*

      7,781        107  

Builders FirstSource, Inc.*

      49,385        542  

Caleres, Inc.

      24,950        819  

Cato (The) Corp., Class A

      15,023        452  

Chegg, Inc.*

      46,863        346  

Chico’s FAS, Inc.

      76,173        1,096  

Children’s Place (The), Inc.

      10,924        1,103  

Citi Trends, Inc.

      8,644        163  

Conn’s, Inc.*

      11,917        151  

Container Store Group (The), Inc.*

      8,503        54  

Destination XL Group, Inc.*

      20,890        89  

DSW, Inc., Class A

      39,116        886  

Duluth Holdings, Inc., Class B

      5,554        141  

Ethan Allen Interiors, Inc.

      14,386        530  

Etsy, Inc.*

      61,561        725  

Express, Inc.*

      43,598        469  

EZCORP, Inc., Class A*

      29,529        314  

Finish Line (The), Inc., Class A

      24,335        458  

FirstCash, Inc.

      27,810        1,307  

Francesca’s Holdings Corp.*

      22,076        398  

Freshpet, Inc.*

      13,395        136  

Gaia, Inc.*

      4,071        35  

Genesco, Inc.*

      11,989        744  

GMS, Inc.*

      4,161        122  

GNC Holdings, Inc., Class A

      40,226        444  

Group 1 Automotive, Inc.

      12,147        947  

Guess?, Inc.

      35,598        431  

Haverty Furniture Cos., Inc.

      11,062        262  

Hibbett Sports, Inc.*

      13,292        496  

HSN, Inc.

      18,299        628  

Kirkland’s, Inc.*

      8,694        135  

Lands’ End, Inc.*

      8,652        131  

Liquidity Services, Inc.*

      15,055        147  

Lithia Motors, Inc., Class A

      13,874        1,343  

Lumber Liquidators Holdings, Inc.*

      15,415        243  

MarineMax, Inc.*

      14,292        277  

Monro Muffler Brake, Inc.

      18,308        1,047  

Office Depot, Inc.

      323,057        1,460  

Overstock.com, Inc.*

      7,914        138  

Party City Holdco, Inc.*

      15,552        221  

PetMed Express, Inc.

      11,383        263  

Pier 1 Imports, Inc.

      47,006        401  

Restoration Hardware Holdings, Inc.*

      22,679        696  

Rush Enterprises, Inc., Class A*

      17,111        546  

Rush Enterprises, Inc., Class B*

      3,541        109  

Sears Holdings Corp.*

      6,606        61  

Sears Hometown and Outlet Stores, Inc.*

      6,577        31  

Select Comfort Corp.*

      27,057        612  

Shoe Carnival, Inc.

      7,907        213  

Sonic Automotive, Inc., Class A

      16,208        371  

Sportsman’s Warehouse Holdings, Inc.*

      15,074        142  

Stage Stores, Inc.

      14,467        63  

Stein Mart, Inc.

      18,626        102  

Tailored Brands, Inc.

      28,666        732  

Tile Shop Holdings, Inc.*

      18,818        368  

Tilly’s, Inc., Class A*

      6,555        86  

Tuesday Morning Corp.*

      27,273        147  

Vera Bradley, Inc.*

      11,799        138  

Vitamin Shoppe, Inc.*

      14,296        340  

Wayfair, Inc., Class A*

      18,527        649  

 

EQUITY INDEX FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

 

   

Retail - Discretionary - 3.0% continued

      

West Marine, Inc.*

      10,326      $ 108  

Winmark Corp.

      1,364        172  

Zumiez, Inc.*

      10,507        230  
  

 

 

     

 

 

  
        33,695  
     

 

 

  

Semiconductors - 4.2%

      

Advanced Micro Devices, Inc.*

      439,252        4,981  

Alpha & Omega Semiconductor Ltd.*

      10,688        227  

Ambarella, Inc.*

      18,671        1,011  

Amkor Technology, Inc.*

      58,089        613  

Applied Micro Circuits Corp.*

      44,298        365  

Applied Optoelectronics, Inc.*

      9,538        224  

Axcelis Technologies, Inc.*

      17,178        250  

Brooks Automation, Inc.

      39,638        677  

Cabot Microelectronics Corp.

      13,665        863  

Cavium, Inc.*

      37,663        2,352  

CEVA, Inc.*

      11,662        391  

Cirrus Logic, Inc.*

      36,593        2,069  

Coherent, Inc.*

      14,130        1,941  

Cohu, Inc.

      15,332        213  

Diodes, Inc.*

      22,466        577  

DSP Group, Inc.*

      12,245        160  

Electro Scientific Industries, Inc.*

      15,971        95  

Entegris, Inc.*

      82,545        1,478  

Exar Corp.*

      23,592        254  

FormFactor, Inc.*

      40,298        451  

GigPeak, Inc.*

      34,779        88  

II-VI, Inc.*

      34,696        1,029  

Impinj, Inc.*

      3,246        115  

Inphi Corp.*

      23,459        1,047  

Integrated Device Technology, Inc.*

      78,699        1,854  

Intersil Corp., Class A

      78,275        1,745  

InvenSense, Inc.*

      47,669        610  

IXYS Corp.

      15,439        184  

Lattice Semiconductor Corp.*

      70,694        520  

MACOM Technology Solutions Holdings, Inc.*

      13,614        630  

MaxLinear, Inc., Class A*

      32,786        715  

Maxwell Technologies, Inc.*

      18,353        94  

Microsemi Corp.*

      66,486        3,588  

MKS Instruments, Inc.

      31,066        1,845  

Monolithic Power Systems, Inc.

      22,684        1,858  

Nanometrics, Inc.*

      14,062        352  

NeoPhotonics Corp.*

      17,942        194  

NVE Corp.

      2,766        198  

Oclaro, Inc.*

      65,692        588  

Park Electrochemical Corp.

      11,293        211  

Photronics, Inc.*

      37,718        426  

Power Integrations, Inc.

      15,960        1,083  

Rambus, Inc.*

      63,214        870  

Rudolph Technologies, Inc.*

      17,492        408  

Semtech Corp.*

      37,744        1,191  

Sigma Designs, Inc.*

      20,654        124  

Silicon Laboratories, Inc.*

      24,076        1,565  

Synaptics, Inc.*

      20,486        1,098  

Ultra Clean Holdings, Inc.*

      19,209        186  

Ultratech, Inc.*

      12,555        301  

Universal Display Corp.*

      24,227        1,364  

Veeco Instruments, Inc.*

      23,133        674  

Vishay Intertechnology, Inc.

      79,642        1,290  

Xcerra Corp.*

      31,433        240  
  

 

 

     

 

 

  
        47,477  
     

 

 

  

Software - 4.2%

      

2U, Inc.*

      21,416        646  

ACI Worldwide, Inc.*

      67,402        1,223  

Actua Corp.*

      20,888        292  

Acxiom Corp.*

      45,271        1,213  

Agilysys, Inc.*

      8,650        90  

Amber Road, Inc.*

      9,993        91  

American Software, Inc., Class A

      14,872        154  

Appfolio, Inc., Class A*

      4,388        105  

Apptio, Inc., Class A*

      4,149        77  

Aspen Technology, Inc.*

      45,464        2,486  

Avid Technology, Inc.*

      17,772        78  

Barracuda Networks, Inc.*

      12,795        274  

Bazaarvoice, Inc.*

      47,586        231  

Benefitfocus, Inc.*

      7,483        222  

Blackbaud, Inc.

      27,558        1,764  

Blackline, Inc.*

      5,947        164  

Box, Inc., Class A*

      28,699        398  

Brightcove, Inc.*

      17,692        142  

BroadSoft, Inc.*

      17,187        709  

Calix, Inc.*

      25,129        194  

Callidus Software, Inc.*

      35,825        602  

Carbonite, Inc.*

      10,617        174  

Castlight Health, Inc., Class B*

      23,486        116  

ChannelAdvisor Corp.*

      13,772        198  

 

NORTHERN FUNDS QUARTERLY REPORT    21    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Software - 4.2% continued

      

CommVault Systems, Inc.*

      22,577      $ 1,160  

Computer Programs & Systems, Inc.

      6,568        155  

Cornerstone OnDemand, Inc.*

      29,413        1,244  

Coupa Software, Inc.*

      5,117        128  

Digi International, Inc.*

      15,008        206  

Ebix, Inc.

      14,682        838  

Envestnet, Inc.*

      24,062        848  

Everbridge, Inc.*

      5,186        96  

Evolent Health, Inc., Class A*

      9,646        143  

Exa Corp.*

      8,054        124  

Five9, Inc.*

      19,182        272  

Glu Mobile, Inc.*

      59,829        116  

Guidance Software, Inc.*

      13,941        99  

Hortonworks, Inc.*

      23,448        195  

HubSpot, Inc.*

      16,939        796  

Imperva, Inc.*

      16,821        646  

InnerWorkings, Inc.*

      22,923        226  

Instructure, Inc.*

      6,104        119  

Intralinks Holdings, Inc.*

      24,407        330  

j2 Global, Inc.

      27,496        2,249  

Jive Software, Inc.*

      33,628        146  

KEYW Holding (The) Corp.*

      20,889        246  

Limelight Networks, Inc.*

      41,887        106  

Lionbridge Technologies, Inc.*

      32,621        189  

LivePerson, Inc.*

      30,636        231  

LogMeIn, Inc.

      14,700        1,419  

Majesco*

      2,000        12  

Mentor Graphics Corp.

      62,541        2,307  

MicroStrategy, Inc., Class A*

      5,540        1,094  

MINDBODY, Inc., Class A*

      8,349        178  

Mitek Systems, Inc.*

      17,088        105  

MobileIron, Inc.*

      27,326        103  

Model N, Inc.*

      13,009        115  

Monotype Imaging Holdings, Inc.

      23,434        465  

NantHealth, Inc.*

      3,848        38  

NeuStar, Inc., Class A*

      31,582        1,055  

New Relic, Inc.*

      12,852        363  

Omnicell, Inc.*

      20,894        708  

Park City Group, Inc.*

      7,278        92  

Paycom Software, Inc.*

      25,692        1,169  

Paylocity Holding Corp.*

      12,674        380  

PDF Solutions, Inc.*

      15,652        353  

pdvWireless, Inc.*

      5,680        128  

Pegasystems, Inc.

      20,961        755  

Progress Software Corp.

      29,099        929  

Proofpoint, Inc.*

      23,833        1,684  

PROS Holdings, Inc.*

      14,660        316  

Q2 Holdings, Inc.*

      15,046        434  

QAD, Inc., Class A

      5,603        170  

Quality Systems, Inc.*

      30,216        397  

Qualys, Inc.*

      15,974        506  

Rapid7, Inc.*

      11,587        141  

RealNetworks, Inc.*

      12,780        62  

RealPage, Inc.*

      31,470        944  

Rosetta Stone, Inc.*

      11,230        100  

Sapiens International Corp. N.V.

      14,663        210  

SPS Commerce, Inc.*

      9,629        673  

Synchronoss Technologies, Inc.*

      24,043        921  

Tabula Rasa HealthCare, Inc.*

      2,973        45  

Take-Two Interactive Software, Inc.*

      48,586        2,395  

Tangoe, Inc.*

      16,077        127  

USA Technologies, Inc.*

      20,993        90  

Varonis Systems, Inc.*

      6,223        167  

VASCO Data Security International, Inc.*

      17,533        239  

Verint Systems, Inc.*

      36,229        1,277  

VirnetX Holding Corp.*

      29,405        65  

Workiva, Inc.*

      12,773        174  

Xactly Corp.*

      13,255        146  

Zendesk, Inc.*

      47,340        1,004  
  

 

 

     

 

 

  
        46,606  
     

 

 

  

Specialty Finance - 1.9%

      

Aircastle Ltd.

      28,090        586  

Altisource Portfolio Solutions S.A.*

      6,717        179  

Arlington Asset Investment Corp., Class A

      13,016        193  

Blackhawk Network Holdings, Inc.*

      32,068        1,208  

Cardtronics PLC, Class A*

      26,322        1,436  

Cass Information Systems, Inc.

      6,400        471  

Ellie Mae, Inc.*

      19,133        1,601  

Encore Capital Group, Inc.*

      13,862        397  

Enova International, Inc.*

      15,186        190  

Essent Group Ltd.*

      43,623        1,412  

Federal Agricultural Mortgage Corp., Class C

      5,005        287  

Flagstar Bancorp, Inc.*

      12,374        333  

 

EQUITY INDEX FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Specialty Finance - 1.9% continued

      

FNFV Group*

      38,668      $ 530  

GATX Corp.

      23,883        1,471  

Green Dot Corp., Class A*

      25,089        591  

HFF, Inc., Class A

      21,127        639  

HomeStreet, Inc.*

      13,799        436  

Impac Mortgage Holdings, Inc.*

      5,980        84  

Investors Title Co.

      838        132  

LendingClub Corp.*

      191,719        1,006  

LendingTree, Inc.*

      3,731        378  

Liberty Tax, Inc.

      3,838        51  

Marlin Business Services Corp.

      5,018        105  

Meta Financial Group, Inc.

      4,839        498  

MGIC Investment Corp.*

      199,281        2,031  

MoneyGram International, Inc.*

      17,610        208  

Nationstar Mortgage Holdings, Inc.*

      19,151        346  

Nelnet, Inc., Class A

      11,860        602  

NewStar Financial, Inc.*

      13,528        125  

Ocwen Financial Corp.*

      58,202        314  

On Deck Capital, Inc.*

      27,914        129  

PennyMac Financial Services, Inc., Class A*

      8,207        137  

PHH Corp.*

      31,253        474  

Planet Payment, Inc.*

      24,629        100  

PRA Group, Inc.*

      26,827        1,049  

Regional Management Corp.*

      6,172        162  

Stewart Information Services Corp.

      13,338        615  

Walker & Dunlop, Inc.*

      16,107        502  

Walter Investment Management Corp.*

      10,924        52  

Willis Lease Finance Corp.*

      2,486        64  

World Acceptance Corp.*

      3,516        226  
  

 

 

     

 

 

  
        21,350  
     

 

 

  

Technology Services - 2.5%

      

Black Box Corp.

      8,552        130  

Bottomline Technologies de, Inc.*

      23,541        589  

CACI International, Inc., Class A*

      14,196        1,764  

Cogint, Inc.*

      8,890        31  

comScore, Inc.*

      27,827        879  

Convergys Corp.

      51,928        1,275  

Cotiviti Holdings, Inc.*

      7,335        252  

CPI Card Group, Inc.

      13,527        56  

CSG Systems International, Inc.

      18,672        904  

Cubic Corp.

      14,803        710  

DMC Global, Inc.

      8,193        130  

Endurance International Group Holdings, Inc.*

      34,968        325  

Engility Holdings, Inc.*

      10,472        353  

EPAM Systems, Inc.*

      28,139        1,810  

EVERTEC, Inc.

      37,173        660  

ExlService Holdings, Inc.*

      18,953        956  

Fair Isaac Corp.

      18,073        2,155  

Forrester Research, Inc.

      5,921        254  

Globant S.A.*

      15,098        503  

ICF International, Inc.*

      10,601        585  

ManTech International Corp., Class A

      14,550        615  

MAXIMUS, Inc.

      37,476        2,091  

Medidata Solutions, Inc.*

      32,083        1,593  

NCI, Inc., Class A

      3,514        49  

NIC, Inc.

      36,961        883  

Perficient, Inc.*

      20,800        364  

PFSweb, Inc.*

      8,577        73  

Rightside Group Ltd.*

      6,642        55  

Science Applications International Corp.

      24,683        2,093  

SecureWorks Corp., Class A*

      3,492        37  

ServiceSource International, Inc.*

      35,493        202  

Sykes Enterprises, Inc.*

      22,743        656  

Syntel, Inc.

      19,085        378  

TeleTech Holdings, Inc.

      9,542        291  

Tessera Holding Corp.*

      28,734        1,270  

Travelport Worldwide Ltd.

      67,138        947  

Unisys Corp.*

      29,300        438  

Vereinigte Aluminium-Werke

      650        13  

Virtusa Corp.*

      16,091        404  

WageWorks, Inc.*

      21,310        1,545  
  

 

 

     

 

 

  
        28,318  
     

 

 

  

Telecom - 1.1%

      

8x8, Inc.*

      51,864        742  

ATN International, Inc.

      6,126        491  

Cincinnati Bell, Inc.*

      24,613        550  

Cogent Communications Holdings, Inc.

      24,243        1,002  

Consolidated Communications Holdings, Inc.

      28,839        774  

DigitalGlobe, Inc.*

      36,817        1,055  

EarthLink Holdings Corp.

      60,646        342  

FairPoint Communications, Inc.*

      12,243        229  

General Communication, Inc., Class A*

      15,532        302  

 

NORTHERN FUNDS QUARTERLY REPORT    23    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Telecom - 1.1% continued

      

Global Eagle Entertainment, Inc.*

      27,037      $ 175  

Globalstar, Inc.*

      217,011        343  

Gogo, Inc.*

      32,965        304  

GTT Communications, Inc.*

      15,378        442  

Hawaiian Telcom Holdco, Inc.*

      3,488        86  

HC2 Holdings, Inc.*

      20,036        119  

IDT Corp., Class B

      10,168        189  

Inteliquent, Inc.

      19,234        441  

Intelsat S.A.*

      20,073        54  

Iridium Communications, Inc.*

      48,142        462  

Lumos Networks Corp.*

      10,958        171  

NII Holdings, Inc.*

      33,169        71  

ORBCOMM, Inc.*

      38,208        316  

RigNet, Inc.*

      7,350        170  

RingCentral, Inc., Class A*

      34,283        706  

Shenandoah Telecommunications Co.

      27,127        741  

Spok Holdings, Inc.

      12,056        250  

Straight Path Communications, Inc., Class B*

      5,474        186  

Vonage Holdings Corp.*

      112,260        769  

West Corp.

      25,421        629  

Windstream Holdings, Inc.

      55,810        409  

Zix Corp.*

      30,401        150  
  

 

 

     

 

 

  
        12,670  
     

 

 

  

Transportation & Logistics - 1.6%

      

Air Transport Services Group, Inc.*

      28,626        457  

ArcBest Corp.

      14,515        401  

Ardmore Shipping Corp.

      16,877        125  

Atlas Air Worldwide Holdings, Inc.*

      14,225        742  

Celadon Group, Inc.

      15,669        112  

Costamare, Inc.

      15,217        85  

Covenant Transportation Group, Inc., Class A*

      6,800        132  

DHT Holdings, Inc.

      53,736        222  

Dorian LPG Ltd.*

      14,880        122  

Echo Global Logistics, Inc.*

      16,973        425  

Forward Air Corp.

      17,473        828  

Frontline Ltd.

      37,840        269  

GasLog Ltd.

      23,874        384  

Gener8 Maritime, Inc.*

      22,864        102  

Golar LNG Ltd.

      56,167        1,289  

Heartland Express, Inc.

      26,670        543  

Hornbeck Offshore Services, Inc.*

      19,137        138  

Hub Group, Inc., Class A*

      19,663        860  

International Seaways, Inc.*

      7,702        108  

Knight Transportation, Inc.

      38,940        1,287  

Marten Transport Ltd.

      13,595        317  

Matson, Inc.

      25,172        891  

Mobile Mini, Inc.

      25,886        783  

Navios Maritime Acquisition Corp.

      44,628        76  

Nordic American Tankers Ltd.

      58,004        487  

Overseas Shipholding Group, Inc., Class A*

      23,106        89  

P.A.M. Transportation Services, Inc.*

      1,586        41  

Radiant Logistics, Inc.*

      23,139        90  

Roadrunner Transportation Systems, Inc.*

      17,789        185  

Saia, Inc.*

      14,636        646  

Scorpio Bulkers, Inc.*

      33,255        168  

Scorpio Tankers, Inc.

      96,830        439  

Ship Finance International Ltd.

      35,128        522  

Swift Transportation Co.*

      43,482        1,059  

Teekay Corp.

      29,248        235  

Teekay Tankers Ltd., Class A

      67,819        153  

Universal Logistics Holdings, Inc.

      4,687        77  

USA Truck, Inc.*

      5,326        46  

Werner Enterprises, Inc.

      25,885        698  

XPO Logistics, Inc.*

      57,179        2,468  

YRC Worldwide, Inc.*

      18,892        251  
  

 

 

     

 

 

  
        18,352  
     

 

 

  

Transportation Equipment - 0.3%

      

American Railcar Industries, Inc.

      4,537        205  

Blue Bird Corp.*

      2,712        42  

FreightCar America, Inc.

      6,969        104  

Greenbrier (The) Cos., Inc.

      15,817        657  

Meritor, Inc.*

      47,823        594  

Navistar International Corp.*

      28,778        903  

Spartan Motors, Inc.

      19,273        178  

Supreme Industries, Inc., Class A

      7,563        119  

Wabash National Corp.*

      37,471        593  

Workhorse Group, Inc.*

      6,665        47  
  

 

 

     

 

 

  
        3,442  
     

 

 

  

Utilities - 3.5%

      

ALLETE, Inc.

      28,955        1,859  

American States Water Co.

      21,349        973  

Artesian Resources Corp., Class A

      4,790        153  

 

EQUITY INDEX FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.4% continued

      

Utilities - 3.5% continued

      

Atlantic Power Corp.*

      69,148      $ 173  

Atlantica Yield PLC

      34,124        660  

Avista Corp.

      36,957        1,478  

Black Hills Corp.

      30,147        1,849  

California Water Service Group

      27,945        947  

Chesapeake Utilities Corp.

      9,160        613  

Connecticut Water Service, Inc.

      6,329        354  

Consolidated Water Co. Ltd.

      7,949        86  

Delta Natural Gas Co., Inc.

      4,003        117  

Dynegy, Inc.*

      68,285        578  

El Paso Electric Co.

      23,586        1,097  

Empire District Electric (The) Co.

      25,647        874  

Genie Energy Ltd., Class B*

      6,829        39  

Global Water Resources, Inc.

      4,822        44  

IDACORP, Inc.

      29,468        2,374  

MGE Energy, Inc.

      20,405        1,333  

Middlesex Water Co.

      9,244        397  

New Jersey Resources Corp.

      50,197        1,782  

Northwest Natural Gas Co.

      15,929        953  

NorthWestern Corp.

      28,386        1,614  

NRG Yield, Inc., Class A

      20,692        318  

NRG Yield, Inc., Class C

      36,967        584  

ONE Gas, Inc.

      30,461        1,948  

Ormat Technologies, Inc.

      22,669        1,216  

Otter Tail Corp.

      22,216        906  

Pattern Energy Group, Inc.

      38,874        738  

PNM Resources, Inc.

      46,649        1,600  

PNM Resources, Inc. - (Fractional Shares)(1)

     50,000        —    

Portland General Electric Co.

      52,181        2,261  

SJW Group

      9,599        537  

South Jersey Industries, Inc.

      46,661        1,572  

Southwest Gas Corp.

      27,622        2,116  

Spark Energy, Inc., Class A

      2,844        86  

Spire, Inc.

      26,053        1,682  

TerraForm Power, Inc., Class A*

      51,374        658  

Unitil Corp.

      8,224        373  

WGL Holdings, Inc.

      29,508        2,251  

York Water (The) Co.

      7,473        286  
  

 

 

     

 

 

  
        39,479  
     

 

 

  

Waste & Environment Services & Equipment - 0.7%

      

Advanced Disposal Services, Inc.*

      13,311        296  

Aqua Metals, Inc.*

      6,256        82  

AquaVenture Holdings Ltd.*

      4,299        106  

Cantel Medical Corp.

      20,906        1,646  

Casella Waste Systems, Inc., Class A*

      22,800        283  

CECO Environmental Corp.

      16,875        235  

CLARCOR, Inc.

      27,802        2,293  

Energy Recovery, Inc.*

      20,059        208  

Heritage-Crystal Clean, Inc.*

      7,852        123  

Tetra Tech, Inc.

      33,672        1,453  

US Ecology, Inc.

      12,680        623  
  

 

 

     

 

 

  
        7,348  
     

 

 

  

Total Common Stocks

(Cost $767,712)

         1,099,814  
     

 

 

  

RIGHTS - 0.0%

      

Biotechnology & Pharmaceuticals - 0.0%

      

Dyax Corp. (Contingent Value Rights)* (1)

      80,916        —    

Omthera Pharmaceuticals, Inc. (Contingent Value Rights)* (1)

     3,681        —    

Tobira Therapeutics, Inc. (Contingent Value Rights)*

      5,175        40  
  

 

 

     

 

 

  
        40  
     

 

 

  

Telecom - 0.0%

      

Leap Wireless International, Inc. (Contingent Value Rights)*

      30,708        92  
  

 

 

     

 

 

  

Total Rights

(Cost $ — )

         132  
     

 

 

  

OTHER - 0.0%(1)

     

Escrow DLB Oil & Gas*

      1,200        —    

Escrow Gerber Scientific, Inc.*

      9,016        —    

Escrow Position PetroCorp*

      420        —    
  

 

 

     

 

 

  

Total Other

(Cost $ — )

         —    
     

 

 

  
     NUMBER
OF WARRANTS		      VALUE
(000S)		  

WARRANTS - 0.0%

      

Asterias Biotherapeutics, Inc., Exp. 9/30/20, Strike $5.00*

      1,136      $ 1  
  

 

 

     

 

 

  

Total Warrants

(Cost $1)

         1  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    25    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 1.5%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(2) (3)

      16,922,710      $ 16,923  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $16,923)

         16,923  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.2%

      

U.S. Treasury Bill,

      

0.46%, 3/2/17(4) (5)

    $ 2,100      $ 2,098  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $2,098)

         2,098  
     

 

 

  

Total Investments - 100.1%

(Cost $786,734)

         1,118,968  
     

 

 

  

Liabilities less Other Assets - (0.1%)

         (1,501 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 1,117,467  
     

 

 

  

 

(1) Level 3 asset that is worthless, bankrupt or has been delisted.
(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(3) 7-day yield as of December 31, 2016 is disclosed.
(4) Discount rate at the time of purchase.
(5) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Russell 2000 Mini Index

      313      $ 21,235        Long        3/17      $ (130 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.5 % 

Consumer Staples

      3.0  

Energy

      3.8  

Financials

      19.8  

Health Care

      12.1  

Industrials

      14.6  

Information Technology

      17.0  

Materials

      4.9  

Real Estate

      7.9  

Telecommunication Services

      0.8  

Utilities

      3.6  
  

 

 

  

Total

      100.0 % 
  

 

 

  

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

   $ 1,099,814     $ —        $ —        $ 1,099,814  

Rights(1)

     —         —          132        132  

Warrants

      1       —          —          1  

Investment Companies

      16,923       —          —          16,923  

Short-Term Investments

      —         2,098        —          2,098  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 1,116,738     $ 2,098      $ 132      $ 1,118,968  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Liabilities

           

Futures Contracts

    $ (130 )    $ —        $ —        $ (130 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

EQUITY INDEX FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

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

 

     BALANCE
AS OF
3/31/16
(000S)		      REALIZED
GAINS
(LOSSES)
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		      PURCHASES
(000S)		      SALES
(000S)		      TRANSFERS
INTO
LEVEL 3
(000S)		      TRANSFERS
OUT OF
LEVEL 3
(000S)		      BALANCE
AS OF
12/31/16
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD
AT  12/31/16
(000S)		  

Rights

                           

Biotechnology &

Pharmaceuticals

    $ —        $ —        $ —        $ —        $ —        $ 40      $ —        $ 40      $ 40  

Telecom

      —          —          92        —          —          —          —          92        92  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ —        $ —        $ 92      $ —        $ —        $ 40      $ —        $ 132      $ 132  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

The Fund valued the securities in the Balance as of 12/31/2016 above using valuations provided by the adviser’s pricing and valuation committee.

 

     FAIR VALUE AT
12/31/16
(000S)		      VALUTION
TECHNIQUES		    UNOBSERVABLE INPUTS

Rights

         

Biotechnology &

         

Pharmaceuticals

    $ 40      Consensus Pricing    Time Period Discount

Telecom

      92      Consensus Pricing    Recovery Value
  

 

 

        

Total

    $ 132        
  

 

 

        

The unobservable inputs are reviewed and compared to publicly available information for reasonableness. Values are reviewed based on available restructuring and recovery information. Values are compared to historical averages and general sector trends are taken into account. In general, an increase (decrease) in recovery or reduction (increase) in dilution would, in isolation, result in a significantly higher (lower) fair value measurement.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 797,542  
  

 

 

  

Gross tax appreciation of investments

    $ 399,892  

Gross tax depreciation of investments

      (78,466 ) 
  

 

 

  

Net tax appreciation of investments

    $ 321,426  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 21,467      $ 126,793      $ 131,337      $ 29      $ 16,923  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    27    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

STOCK INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9%

      

Aerospace & Defense - 2.3%

      

Arconic, Inc.

      165,647      $ 3,071  

Boeing (The) Co.

      215,604        33,565  

General Dynamics Corp.

      107,528        18,566  

Harris Corp.

      46,633        4,779  

L-3 Communications Holdings, Inc.

      29,043        4,418  

Lockheed Martin Corp.

      94,645        23,656  

Northrop Grumman Corp.

      66,219        15,401  

Raytheon Co.

      110,313        15,665  

Rockwell Collins, Inc.

      48,952        4,541  

Textron, Inc.

      101,327        4,920  

TransDigm Group, Inc.

      18,808        4,682  

United Technologies Corp.

      287,679        31,535  
  

 

 

     

 

 

  
        164,799  
     

 

 

  

Apparel & Textile Products - 0.6%

      

Hanesbrands, Inc.

      141,595        3,054  

Michael Kors Holdings Ltd.*

      62,148        2,671  

NIKE, Inc., Class B

      501,902        25,512  

PVH Corp.

      29,975        2,705  

Ralph Lauren Corp.

      21,346        1,928  

Under Armour, Inc., Class A*

      68,587        1,993  

Under Armour, Inc., Class C*

      69,147        1,740  

VF Corp.

      124,294        6,631  
  

 

 

     

 

 

  
        46,234  
     

 

 

  

Asset Management - 0.9%

      

Affiliated Managers Group, Inc.*

      20,753        3,015  

Ameriprise Financial, Inc.

      59,347        6,584  

BlackRock, Inc.

      45,643        17,369  

Charles Schwab (The) Corp.

      453,001        17,880  

E*TRADE Financial Corp.*

      103,150        3,574  

Franklin Resources, Inc.

      130,113        5,150  

Invesco Ltd.

      153,370        4,653  

Leucadia National Corp.

      121,007        2,813  

T. Rowe Price Group, Inc.

      91,383        6,878  
  

 

 

     

 

 

  
        67,916  
     

 

 

  

Automotive - 0.8%

      

BorgWarner, Inc.

      75,162        2,964  

Delphi Automotive PLC

      101,779        6,855  

Ford Motor Co.

      1,465,976        17,782  

General Motors Co.

      521,082        18,155  

Goodyear Tire & Rubber (The) Co.

      97,756        3,018  

Harley-Davidson, Inc.

      66,602        3,886  

Harman International Industries, Inc.

      26,082        2,899  
  

 

 

     

 

 

  
        55,559  
     

 

 

  

Banking - 6.7%

      

Bank of America Corp.

      3,795,946        83,890  

BB&T Corp.

      304,907        14,337  

Citigroup, Inc.

      1,070,601        63,626  

Citizens Financial Group, Inc.

      192,364        6,854  

Comerica, Inc.

      64,509        4,394  

Fifth Third Bancorp

      283,954        7,658  

Huntington Bancshares, Inc.

      406,288        5,371  

JPMorgan Chase & Co.

      1,344,153        115,987  

KeyCorp

      406,058        7,419  

M&T Bank Corp.

      58,259        9,113  

People’s United Financial, Inc.

      116,104        2,248  

PNC Financial Services Group (The), Inc.

      182,775        21,377  

Regions Financial Corp.

      462,453        6,641  

SunTrust Banks, Inc.

      184,431        10,116  

US Bancorp

      600,246        30,835  

Wells Fargo & Co.

      1,697,949        93,574  

Zions Bancorporation

      76,239        3,281  
  

 

 

     

 

 

  
        486,721  
     

 

 

  

Biotechnology & Pharmaceuticals - 7.8%

 

   

AbbVie, Inc.

      610,432        38,225  

Alexion Pharmaceuticals, Inc.*

      84,240        10,307  

Allergan PLC*

      140,911        29,593  

Amgen, Inc.

      279,445        40,858  

Biogen, Inc.*

      81,728        23,176  

Bristol-Myers Squibb Co.

      627,788        36,688  

Celgene Corp.*

      291,191        33,705  

Eli Lilly & Co.

      364,946        26,842  

Endo International PLC*

      74,803        1,232  

Gilead Sciences, Inc.

      494,883        35,439  

Johnson & Johnson

      1,021,968        117,741  

Mallinckrodt PLC*

      39,359        1,961  

Merck & Co., Inc.

      1,035,708        60,972  

Mylan N.V.*

      172,911        6,597  

Perrigo Co. PLC

      53,881        4,484  

Pfizer, Inc.

      2,279,563        74,040  

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9% continued

 

   

Biotechnology & Pharmaceuticals - 7.8% continued

      

Regeneron Pharmaceuticals, Inc.*

      28,396      $ 10,424  

Vertex Pharmaceuticals, Inc.*

      93,175        6,864  

Zoetis, Inc.

      185,539        9,932  
  

 

 

     

 

 

  
        569,080  
     

 

 

  

Chemicals - 1.9%

      

Air Products & Chemicals, Inc.

      81,628        11,740  

Albemarle Corp.

      42,054        3,620  

Avery Dennison Corp.

      33,774        2,372  

CF Industries Holdings, Inc.

      88,092        2,773  

Dow Chemical (The) Co.

      421,220        24,102  

E.I. du Pont de Nemours & Co.

      326,540        23,968  

Eastman Chemical Co.

      55,420        4,168  

FMC Corp.

      50,514        2,857  

International Flavors & Fragrances, Inc.

      29,765        3,507  

LyondellBasell Industries N.V., Class A

      125,520        10,767  

Monsanto Co.

      164,507        17,308  

Mosaic (The) Co.

      131,340        3,852  

PPG Industries, Inc.

      99,173        9,398  

Praxair, Inc.

      107,203        12,563  

Sherwin-Williams (The) Co.

      30,365        8,160  
  

 

 

     

 

 

  
        141,155  
     

 

 

  

Commercial Services - 0.3%

      

Cintas Corp.

      32,209        3,722  

Ecolab, Inc.

      98,572        11,555  

H&R Block, Inc.

      83,019        1,909  

Robert Half International, Inc.

      48,530        2,367  
  

 

 

     

 

 

  
        19,553  
     

 

 

  

Construction Materials - 0.2%

      

Martin Marietta Materials, Inc.

      23,953        5,307  

Vulcan Materials Co.

      49,535        6,199  
  

 

 

     

 

 

  
        11,506  
     

 

 

  

Consumer Products - 7.2%

      

Altria Group, Inc.

      732,615        49,539  

Archer-Daniels-Midland Co.

      216,202        9,870  

Brown-Forman Corp., Class B

      68,142        3,061  

Campbell Soup Co.

      72,960        4,412  

Church & Dwight Co., Inc.

      97,020        4,287  

Clorox (The) Co.

      48,368        5,805  

Coca-Cola (The) Co.

      1,458,115        60,454  

Colgate-Palmolive Co.

      334,001        21,857  

Conagra Brands, Inc.

      155,619        6,155  

Constellation Brands, Inc., Class A

      66,779        10,238  

Coty, Inc., Class A

      175,326        3,210  

Dr. Pepper Snapple Group, Inc.

      69,038        6,260  

Estee Lauder (The) Cos., Inc., Class A

      83,465        6,384  

General Mills, Inc.

      222,271        13,730  

Hershey (The) Co.

      52,406        5,420  

Hormel Foods Corp.

      100,716        3,506  

JM Smucker (The) Co.

      43,776        5,606  

Kellogg Co.

      95,001        7,003  

Kimberly-Clark Corp.

      134,551        15,355  

Kraft Heinz (The) Co.

      224,155        19,573  

McCormick & Co., Inc. (Non Voting)

      43,073        4,020  

Mead Johnson Nutrition Co.

      69,126        4,891  

Molson Coors Brewing Co., Class B

      69,264        6,740  

Mondelez International, Inc., Class A

      580,232        25,722  

Monster Beverage Corp.*

      152,354        6,755  

PepsiCo, Inc.

      538,777        56,372  

Philip Morris International, Inc.

      582,817        53,322  

Procter & Gamble (The) Co.

      1,005,296        84,525  

Reynolds American, Inc.

      310,644        17,409  

Tyson Foods, Inc., Class A

      109,165        6,733  
  

 

 

     

 

 

  
        528,214  
     

 

 

  

Containers & Packaging - 0.8%

      

3M Co.

      225,929        40,344  

Ball Corp.

      65,987        4,953  

International Paper Co.

      154,409        8,193  

Sealed Air Corp.

      72,136        3,271  

WestRock Co.

      93,892        4,767  
  

 

 

     

 

 

  
        61,528  
     

 

 

  

Distributors - Consumer Staples - 0.1%

      

Sysco Corp.

      188,997        10,465  
  

 

 

     

 

 

  

Distributors - Discretionary - 0.1%

      

Fastenal Co.

      109,058        5,124  

LKQ Corp.

      115,761        3,548  
  

 

 

     

 

 

  
        8,672  
     

 

 

  

Electrical Equipment - 3.2%

      

Acuity Brands, Inc.

      16,529        3,816  

Allegion PLC

      36,326        2,325  

AMETEK, Inc.

      86,953        4,226  

Amphenol Corp., Class A

      115,729        7,777  

Eaton Corp. PLC

      169,716        11,386  

Emerson Electric Co.

      241,474        13,462  

Fortive Corp.

      112,740        6,046  

 

EQUITY INDEX FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9% continued

      

Electrical Equipment - 3.2% continued

 

   

General Electric Co.

      3,322,955      $ 105,005  

Honeywell International, Inc.

      286,289        33,167  

Ingersoll-Rand PLC

      97,082        7,285  

Johnson Controls International PLC

      351,833        14,492  

Rockwell Automation, Inc.

      48,024        6,455  

Roper Technologies, Inc.

      38,111        6,977  

TE Connectivity Ltd.

      133,477        9,247  
  

 

 

     

 

 

  
        231,666  
     

 

 

  

Engineering & Construction Services - 0.1%

 

   

Fluor Corp.

      52,590        2,762  

Jacobs Engineering Group, Inc.*

      45,252        2,580  

Quanta Services, Inc.*

      56,706        1,976  
  

 

 

     

 

 

  
        7,318  
     

 

 

  

Gaming, Lodging & Restaurants - 1.5%

 

   

Carnival Corp.

      157,532        8,201  

Chipotle Mexican Grill, Inc.*

      10,844        4,091  

Darden Restaurants, Inc.

      46,548        3,385  

Marriott International, Inc., Class A

      120,250        9,942  

McDonald’s Corp.

      311,918        37,967  

Royal Caribbean Cruises Ltd.

      62,783        5,151  

Starbucks Corp.

      546,703        30,353  

Wyndham Worldwide Corp.

      40,762        3,113  

Wynn Resorts Ltd.

      29,556        2,557  

Yum! Brands, Inc.

      130,915        8,291  
  

 

 

     

 

 

  
        113,051  
     

 

 

  

Hardware - 4.7%

      

Apple, Inc.

      2,003,055        231,994  

Cisco Systems, Inc.

      1,885,452        56,978  

Corning, Inc.

      357,398        8,674  

F5 Networks, Inc.*

      24,530        3,550  

FLIR Systems, Inc.

      51,778        1,874  

Garmin Ltd.

      43,005        2,085  

HP, Inc.

      642,884        9,541  

Juniper Networks, Inc.

      143,458        4,054  

Motorola Solutions, Inc.

      62,562        5,186  

NetApp, Inc.

      102,844        3,627  

Pitney Bowes, Inc.

      68,949        1,047  

Seagate Technology PLC

      110,649        4,224  

Western Digital Corp.

      107,244        7,287  
  

 

 

     

 

 

  
        340,121  
     

 

 

  

Health Care Facilities & Services - 2.6%

 

   

Aetna, Inc.

      131,816        16,346  

AmerisourceBergen Corp.

      63,110        4,935  

Anthem, Inc.

      98,968        14,229  

Cardinal Health, Inc.

      120,243        8,654  

Centene Corp.*

      64,207        3,628  

Cigna Corp.

      96,441        12,864  

DaVita, Inc.*

      58,988        3,787  

Envision Healthcare Corp.*

      44,283        2,803  

Express Scripts Holding Co.*

      231,659        15,936  

HCA Holdings, Inc.*

      109,785        8,126  

Henry Schein, Inc.*

      30,124        4,570  

Humana, Inc.

      56,009        11,427  

Laboratory Corp. of America Holdings*

      38,689        4,967  

McKesson Corp.

      84,933        11,929  

Patterson Cos., Inc.

      31,067        1,275  

Quest Diagnostics, Inc.

      52,088        4,787  

UnitedHealth Group, Inc.

      357,540        57,221  

Universal Health Services, Inc., Class B

      33,684        3,583  
  

 

 

     

 

 

  
        191,067  
     

 

 

  

Home & Office Products - 0.6%

      

D.R. Horton, Inc.

      128,235        3,505  

Fortune Brands Home & Security, Inc.

      58,193        3,111  

Leggett & Platt, Inc.

      50,088        2,448  

Lennar Corp., Class A

      74,096        3,181  

Masco Corp.

      123,194        3,896  

Mohawk Industries, Inc.*

      23,554        4,703  

Newell Brands, Inc.

      181,237        8,092  

PulteGroup, Inc.

      112,289        2,064  

Snap-on, Inc.

      21,670        3,712  

Stanley Black & Decker, Inc.

      56,641        6,496  

Whirlpool Corp.

      28,153        5,117  
  

 

 

     

 

 

  
        46,325  
     

 

 

  

Industrial Services - 0.1%

      

United Rentals, Inc.*

      31,446        3,320  

W.W. Grainger, Inc.

      20,548        4,772  
  

 

 

     

 

 

  
        8,092  
     

 

 

  

Institutional Financial Services - 1.7%

      

Bank of New York Mellon (The) Corp.

      397,106        18,815  

CME Group, Inc.

      127,445        14,701  

Goldman Sachs Group (The), Inc.

      138,903        33,260  

Intercontinental Exchange, Inc.

      223,728        12,623  

Morgan Stanley

      541,607        22,883  

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9% continued

 

   

Institutional Financial Services - 1.7% continued

 

   

Nasdaq, Inc.

      42,633      $ 2,861  

Northern Trust Corp.(1)

     80,837        7,198  

State Street Corp.

      136,179        10,584  
  

 

 

     

 

 

  
        122,925  
     

 

 

  
     

Insurance - 4.3%

      

Aflac, Inc.

      153,253        10,666  

Allstate (The) Corp.

      138,238        10,246  

American International Group, Inc.

      366,506        23,937  

Aon PLC

      98,798        11,019  

Arthur J. Gallagher & Co.

      66,908        3,477  

Assurant, Inc.

      21,554        2,002  

Berkshire Hathaway, Inc., Class B*

      713,303        116,254  

Chubb Ltd.

      174,793        23,094  

Cincinnati Financial Corp.

      56,188        4,256  

Hartford Financial Services Group (The), Inc.

      141,854        6,759  

Lincoln National Corp.

      85,817        5,687  

Loews Corp.

      103,807        4,861  

Marsh & McLennan Cos., Inc.

      193,568        13,083  

MetLife, Inc.

      412,869        22,250  

Principal Financial Group, Inc.

      100,446        5,812  

Progressive (The) Corp.

      217,821        7,733  

Prudential Financial, Inc.

      161,505        16,806  

Torchmark Corp.

      41,219        3,040  

Travelers (The) Cos., Inc.

      106,677        13,059  

Unum Group

      87,736        3,854  

Willis Towers Watson PLC

      48,288        5,905  

XL Group Ltd.

      101,799        3,793  
  

 

 

     

 

 

  
        317,593  
     

 

 

  

Iron & Steel - 0.1%

      

Nucor Corp.

      119,760        7,128  
  

 

 

     

 

 

  

Leisure Products - 0.1%

      

Hasbro, Inc.

      42,469        3,304  

Mattel, Inc.

      128,359        3,536  
  

 

 

     

 

 

  
        6,840  
     

 

 

  

Machinery - 0.9%

      

Caterpillar, Inc.

      219,779        20,382  

Deere & Co.

      108,664        11,197  

Dover Corp.

      58,590        4,390  

Flowserve Corp.

      49,161        2,362  

Illinois Tool Works, Inc.

      118,695        14,536  

Parker-Hannifin Corp.

      50,117        7,016  

Pentair PLC

      62,444        3,501  

Xylem, Inc.

      67,504        3,343  
  

 

 

     

 

 

  
        66,727  
     

 

 

  

Media - 7.7%

      

Alphabet, Inc., Class A*

      111,221        88,137  

Alphabet, Inc., Class C*

      111,481        86,043  

CBS Corp., Class B (Non Voting)

      147,222        9,366  

Charter Communications, Inc., Class A*

      81,340        23,419  

Comcast Corp., Class A

      895,239        61,816  

Discovery Communications, Inc., Class A*

      56,765        1,556  

Discovery Communications, Inc., Class C*

      83,304        2,231  

Expedia, Inc.

      45,278        5,129  

Facebook, Inc., Class A*

      879,291        101,163  

Interpublic Group of (The) Cos., Inc.

      150,032        3,512  

Netflix, Inc.*

      161,209        19,958  

News Corp., Class A

      142,222        1,630  

News Corp., Class B

      45,373        535  

Omnicom Group, Inc.

      88,587        7,540  

Priceline Group (The), Inc.*

      18,535        27,174  

Scripps Networks Interactive, Inc., Class A

      35,866        2,560  

TEGNA, Inc.

      80,194        1,715  

Time Warner, Inc.

      289,654        27,960  

TripAdvisor, Inc.*

      43,054        1,996  

Twenty-First Century Fox, Inc., Class A

      397,761        11,153  

Twenty-First Century Fox, Inc., Class B

      182,811        4,982  

VeriSign, Inc.*

      34,411        2,618  

Viacom, Inc., Class B

      130,480        4,580  

Walt Disney (The) Co.

      549,953        57,316  

Yahoo!, Inc.*

      329,768        12,752  
  

 

 

     

 

 

  
        566,841  
     

 

 

  

Medical Equipment & Devices - 3.0%

      

Abbott Laboratories

      553,174        21,247  

Agilent Technologies, Inc.

      121,705        5,545  

Baxter International, Inc.

      183,979        8,158  

Becton Dickinson and Co.

      79,786        13,209  

Boston Scientific Corp.*

      511,883        11,072  

C.R. Bard, Inc.

      27,639        6,209  

Cooper (The) Cos., Inc.

      18,205        3,185  

Danaher Corp.

      228,668        17,799  

 

EQUITY INDEX FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9% continued

 

Medical Equipment & Devices - 3.0% continued

      

DENTSPLY SIRONA, Inc.

      86,502      $ 4,994  

Edwards Lifesciences Corp.*

      80,322        7,526  

Hologic, Inc.*

      103,980        4,172  

Illumina, Inc.*

      55,181        7,065  

Intuitive Surgical, Inc.*

      14,561        9,234  

Medtronic PLC

      515,830        36,743  

Mettler-Toledo International, Inc.*

      9,850        4,123  

PerkinElmer, Inc.

      41,502        2,164  

St. Jude Medical, Inc.

      107,347        8,608  

Stryker Corp.

      116,766        13,990  

Thermo Fisher Scientific, Inc.

      148,349        20,932  

Varian Medical Systems, Inc.*

      34,859        3,130  

Waters Corp.*

      30,391        4,084  

Zimmer Biomet Holdings, Inc.

      75,255        7,766  
  

 

 

     

 

 

  
        220,955  
     

 

 

  

Metals & Mining - 0.2%

      

Freeport-McMoRan, Inc.*

      470,697        6,209  

Newmont Mining Corp.

      198,721        6,770  
  

 

 

     

 

 

  
        12,979  
     

 

 

  

Oil, Gas & Coal - 7.5%

      

Anadarko Petroleum Corp.

      209,971        14,641  

Apache Corp.

      142,547        9,048  

Baker Hughes, Inc.

      158,853        10,321  

Cabot Oil & Gas Corp.

      174,808        4,084  

Chesapeake Energy Corp.*

      281,217        1,974  

Chevron Corp.

      709,147        83,467  

Cimarex Energy Co.

      35,836        4,870  

Concho Resources, Inc.*

      54,887        7,278  

ConocoPhillips

      465,499        23,340  

Devon Energy Corp.

      196,720        8,984  

EOG Resources, Inc.

      216,559        21,894  

EQT Corp.

      64,922        4,246  

Exxon Mobil Corp.

      1,557,698        140,598  

FMC Technologies, Inc.*

      84,313        2,996  

Halliburton Co.

      324,816        17,569  

Helmerich & Payne, Inc.

      40,818        3,159  

Hess Corp.

      100,211        6,242  

Kinder Morgan, Inc.

      721,254        14,937  

Marathon Oil Corp.

      318,349        5,511  

Marathon Petroleum Corp.

      198,299        9,984  

Murphy Oil Corp.

      60,597        1,886  

National Oilwell Varco, Inc.

      141,984        5,316  

Newfield Exploration Co.*

      73,732        2,986  

Noble Energy, Inc.

      160,770        6,119  

Occidental Petroleum Corp.

      287,092        20,450  

ONEOK, Inc.

      79,361        4,556  

Phillips 66

      166,335        14,373  

Pioneer Natural Resources Co.

      63,764        11,482  

Range Resources Corp.

      69,853        2,400  

Schlumberger Ltd.

      522,672        43,878  

Southwestern Energy Co.*

      182,626        1,976  

Spectra Energy Corp.

      263,539        10,829  

Tesoro Corp.

      43,682        3,820  

Transocean Ltd.*

      146,396        2,158  

Valero Energy Corp.

      170,053        11,618  

Williams (The) Cos., Inc.

      256,716        7,994  
  

 

 

     

 

 

  
        546,984  
     

 

 

  

Passenger Transportation - 0.6%

      

Alaska Air Group, Inc.

      46,307        4,109  

American Airlines Group, Inc.

      194,657        9,088  

Delta Air Lines, Inc.

      276,621        13,607  

Southwest Airlines Co.

      231,236        11,525  

United Continental Holdings, Inc.*

      108,456        7,904  
  

 

 

     

 

 

  
        46,233  
     

 

 

  

Real Estate - 0.1%

      

CBRE Group, Inc., Class A*

      113,222        3,565  
  

 

 

     

 

 

  

Real Estate Investment Trusts - 2.8%

      

American Tower Corp.

      159,899        16,898  

Apartment Investment & Management Co., Class A

      59,187        2,690  

AvalonBay Communities, Inc.

      51,583        9,138  

Boston Properties, Inc.

      57,738        7,262  

Crown Castle International Corp.

      135,443        11,752  

Digital Realty Trust, Inc.

      59,441        5,841  

Equinix, Inc.

      26,807        9,581  

Equity Residential

      137,334        8,839  

Essex Property Trust, Inc.

      24,503        5,697  

Extra Space Storage, Inc.

      47,245        3,649  

Federal Realty Investment Trust

      27,086        3,849  

General Growth Properties, Inc.

      219,238        5,477  

HCP, Inc.

      176,444        5,244  

Host Hotels & Resorts, Inc.

      278,938        5,255  

Iron Mountain, Inc.

      91,249        2,964  

Kimco Realty Corp.

      158,759        3,994  

Macerich (The) Co.

      45,690        3,237  

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9% continued

 

   

Real Estate Investment Trusts - 2.8% continued

 

   

Mid-America Apartment Communities, Inc.

      42,829      $ 4,194  

Prologis, Inc.

      198,530        10,480  

Public Storage

      56,021        12,521  

Realty Income Corp.

      97,156        5,585  

Simon Property Group, Inc.

      118,012        20,967  

SL Green Realty Corp.

      37,903        4,076  

UDR, Inc.

      100,973        3,684  

Ventas, Inc.

      133,008        8,316  

Vornado Realty Trust

      64,568        6,739  

Welltower, Inc.

      136,191        9,115  

Weyerhaeuser Co.

      280,964        8,454  
  

 

 

     

 

 

  
        205,498  
     

 

 

  

Renewable Energy - 0.0%

      

First Solar, Inc.*

      28,775        923  

Retail - Consumer Staples - 2.3%

      

Costco Wholesale Corp.

      164,193        26,289  

CVS Health Corp.

      400,624        31,613  

Dollar General Corp.

      95,492        7,073  

Dollar Tree, Inc.*

      88,712        6,847  

Kroger (The) Co.

      354,681        12,240  

Target Corp.

      211,023        15,242  

Walgreens Boots Alliance, Inc.

      321,496        26,607  

Wal-Mart Stores, Inc.

      565,704        39,102  

Whole Foods Market, Inc.

      119,503        3,676  
  

 

 

     

 

 

  
        168,689  
     

 

 

  

Retail - Discretionary - 4.4%

      

Advance Auto Parts, Inc.

      27,670        4,680  

Amazon.com, Inc.*

      148,149        111,093  

AutoNation, Inc.*

      24,193        1,177  

AutoZone, Inc.*

      10,844        8,564  

Bed Bath & Beyond, Inc.

      57,345        2,331  

Best Buy Co., Inc.

      102,297        4,365  

CarMax, Inc.*

      71,486        4,603  

Coach, Inc.

      104,916        3,674  

eBay, Inc.*

      390,553        11,596  

Foot Locker, Inc.

      51,112        3,623  

Gap (The), Inc.

      82,967        1,862  

Genuine Parts Co.

      55,875        5,338  

Home Depot (The), Inc.

      457,600        61,355  

Kohl’s Corp.

      65,824        3,250  

L Brands, Inc.

      90,242        5,942  

Lowe’s Cos., Inc.

      326,763        23,239  

Macy’s, Inc.

      114,582        4,103  

Nordstrom, Inc.

      44,050        2,111  

O’Reilly Automotive, Inc.*

      35,495        9,882  

Ross Stores, Inc.

      148,978        9,773  

Signet Jewelers Ltd.

      26,255        2,475  

Staples, Inc.

      244,090        2,209  

Tiffany & Co.

      40,010        3,098  

TJX (The) Cos., Inc.

      244,888        18,398  

Tractor Supply Co.

      49,005        3,715  

Ulta Salon Cosmetics & Fragrance, Inc.*

      22,025        5,615  

Urban Outfitters, Inc.*

      33,595        957  
  

 

 

     

 

 

  
        319,028  
     

 

 

  

Semiconductors - 3.3%

      

Analog Devices, Inc.

      115,829        8,411  

Applied Materials, Inc.

      406,128        13,106  

Broadcom Ltd.

      149,273        26,387  

Intel Corp.

      1,780,315        64,572  

KLA-Tencor Corp.

      58,751        4,623  

Lam Research Corp.

      61,113        6,461  

Linear Technology Corp.

      90,321        5,632  

Microchip Technology, Inc.

      81,184        5,208  

Micron Technology, Inc.*

      391,306        8,577  

NVIDIA Corp.

      202,474        21,612  

Qorvo, Inc.*

      47,737        2,517  

QUALCOMM, Inc.

      554,831        36,175  

Skyworks Solutions, Inc.

      69,680        5,202  

Texas Instruments, Inc.

      375,525        27,402  

Xilinx, Inc.

      94,775        5,722  
  

 

 

     

 

 

  
        241,607  
     

 

 

  

Software - 4.4%

      

Activision Blizzard, Inc.

      256,871        9,276  

Adobe Systems, Inc.*

      186,743        19,225  

Akamai Technologies, Inc.*

      65,091        4,340  

Autodesk, Inc.*

      73,517        5,441  

CA, Inc.

      117,659        3,738  

Cerner Corp.*

      113,436        5,373  

Citrix Systems, Inc.*

      58,558        5,230  

Electronic Arts, Inc.*

      113,350        8,927  

Intuit, Inc.

      91,534        10,491  

Microsoft Corp.

      2,920,684        181,491  

Oracle Corp.

      1,125,714        43,284  

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9% continued

 

   

Software - 4.4% continued

      

Red Hat, Inc.*

      67,740      $ 4,722  

salesforce.com, Inc.*

      239,788        16,416  

Symantec Corp.

      233,998        5,590  
  

 

 

     

 

 

  
        323,544  
     

 

 

  

Specialty Finance - 2.8%

      

Alliance Data Systems Corp.

      21,657        4,949  

American Express Co.

      288,782        21,393  

Capital One Financial Corp.

      181,166        15,805  

Discover Financial Services

      148,043        10,672  

Fidelity National Information Services, Inc.

      123,279        9,325  

Fiserv, Inc.*

      81,513        8,663  

Global Payments, Inc.

      57,542        3,994  

Mastercard, Inc., Class A

      357,560        36,918  

Navient Corp.

      114,721        1,885  

PayPal Holdings, Inc.*

      421,546        16,639  

Synchrony Financial

      294,497        10,681  

Total System Services, Inc.

      62,649        3,072  

Visa, Inc., Class A

      701,529        54,733  

Western Union (The) Co.

      183,013        3,975  
  

 

 

     

 

 

  
        202,704  
     

 

 

  

Technology Services - 2.4%

      

Accenture PLC, Class A

      233,017        27,293  

Automatic Data Processing, Inc.

      169,444        17,415  

Cognizant Technology Solutions Corp., Class A*

      227,908        12,770  

CSRA, Inc.

      55,304        1,761  

Dun & Bradstreet (The) Corp.

      13,828        1,678  

Equifax, Inc.

      44,917        5,311  

Hewlett Packard Enterprise Co.

      625,990        14,485  

International Business Machines Corp.

      325,015        53,949  

Moody’s Corp.

      62,455        5,888  

Nielsen Holdings PLC

      126,231        5,295  

Paychex, Inc.

      120,872        7,359  

S&P Global, Inc.

      97,315        10,465  

Teradata Corp.*

      49,016        1,332  

Verisk Analytics, Inc.*

      58,388        4,739  

Xerox Corp.

      317,510        2,772  
  

 

 

     

 

 

  
        172,512  
     

 

 

  

Telecom - 2.6%

      

AT&T, Inc.

      2,306,775        98,107  

CenturyLink, Inc.

      206,390        4,908  

Frontier Communications Corp.

      439,259        1,485  

Level 3 Communications, Inc.*

      109,519        6,173  

Verizon Communications, Inc.

      1,531,254        81,738  
  

 

 

     

 

 

  
        192,411  
     

 

 

  

Transportation & Logistics - 1.6%

      

C.H. Robinson Worldwide, Inc.

      53,423        3,914  

CSX Corp.

      351,840        12,641  

Expeditors International of Washington, Inc.

      67,763        3,589  

FedEx Corp.

      91,823        17,097  

JB Hunt Transport Services, Inc.

      33,015        3,205  

Kansas City Southern

      40,405        3,428  

Norfolk Southern Corp.

      109,654        11,850  

Ryder System, Inc.

      19,851        1,478  

Union Pacific Corp.

      309,555        32,095  

United Parcel Service, Inc., Class B

      258,887        29,679  
  

 

 

     

 

 

  
        118,976  
     

 

 

  

Transportation Equipment - 0.2%

      

Cummins, Inc.

      57,918        7,916  

PACCAR, Inc.

      131,707        8,416  
  

 

 

     

 

 

  
        16,332  
     

 

 

  

Utilities - 3.1%

      

AES Corp.

      249,630        2,901  

Alliant Energy Corp.

      84,862        3,215  

Ameren Corp.

      90,758        4,761  

American Electric Power Co., Inc.

      184,886        11,640  

American Water Works Co., Inc.

      66,640        4,822  

CenterPoint Energy, Inc.

      162,601        4,007  

CMS Energy Corp.

      104,350        4,343  

Consolidated Edison, Inc.

      114,690        8,450  

Dominion Resources, Inc.

      235,535        18,040  

DTE Energy Co.

      67,325        6,632  

Duke Energy Corp.

      258,942        20,099  

Edison International

      122,408        8,812  

Entergy Corp.

      67,351        4,948  

Eversource Energy

      118,976        6,571  

Exelon Corp.

      346,844        12,310  

FirstEnergy Corp.

      160,011        4,956  

NextEra Energy, Inc.

      175,540        20,970  

NiSource, Inc.

      121,082        2,681  

NRG Energy, Inc.

      118,297        1,450  

PG&E Corp.

      189,971        11,545  

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 98.9% continued

      

Utilities - 3.1% continued

      

Pinnacle West Capital Corp.

      41,993      $ 3,277  

PPL Corp.

      255,366        8,695  

Public Service Enterprise Group, Inc.

      190,196        8,346  

SCANA Corp.

      53,368        3,911  

Sempra Energy

      93,971        9,457  

Southern (The) Co.

      368,165        18,110  

WEC Energy Group, Inc.

      118,454        6,947  

Xcel Energy, Inc.

      191,182        7,781  
  

 

 

     

 

 

  
        229,677  
     

 

 

  

Waste & Environment Services & Equipment - 0.3%

      

Republic Services, Inc.

      86,693        4,946  

Stericycle, Inc.*

      32,123        2,475  

Waste Management, Inc.

      152,838        10,837  
  

 

 

     

 

 

  
        18,258  
     

 

 

  

Total Common Stocks

(Cost $4,159,239)

         7,237,971  
     

 

 

  

INVESTMENT COMPANIES - 0.8%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(2) (3)

      60,529,977        60,530  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $60,530)

         60,530  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.1%

      

U.S. Treasury Bill,

      

0.46%, 3/2/17(4) (5)

    $ 6,310      $ 6,305  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $6,305)

         6,305  
     

 

 

  

Total Investments - 99.8%

(Cost $4,226,074)

         7,304,806  
     

 

 

  

Other Assets less Liabilities - 0.2%

         12,831  
     

 

 

  

NET ASSETS - 100.0%

       $ 7,317,637  
     

 

 

  

 

(1) Investment in affiliate.
(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(3) 7-day yield as of December 31, 2016 is disclosed.
(4) Discount rate at the time of purchase.
(5) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-Mini S&P 500

      696      $ 77,820        Long        3/17      $ 92  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.0 % 

Consumer Staples

      9.4  

Energy

      7.5  

Financials

      14.8  

Health Care

      13.6  

Industrials

      10.3  

Information Technology

      20.8  

Materials

      2.8  

Real Estate

      2.9  

Telecommunication Services

      2.7  

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).

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

   $ 7,237,971      $ —        $ —        $ 7,237,971  

Investment Companies

      60,530        —          —          60,530  

Short-Term Investments

      —          6,305        —          6,305  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 7,298,501      $ 6,305      $ —        $ 7,304,806  
  

 

 

     

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                            

Assets

            

Futures Contracts

    $ 92      $ —        $ —        $ 92  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 4,321,913  
  

 

 

  

Gross tax appreciation of investments

    $ 3,073,095  

Gross tax depreciation of investments

      (90,202 ) 
  

 

 

  

Net tax appreciation of investments

    $ 2,982,893  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

   VALUE,
BEGINNING
OF PERIOD
(000S)		     PURCHASES
(000S)		     SALES
PROCEEDS
(000S)		     NET CHANGE
IN UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     NET REALIZED
GAINS
(LOSSES)
(000S)		     DIVIDEND
INCOME
(000S)		     VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

   $ 38,970     $ 378,195     $ 356,635     $ —       $ —       $ 58     $ 60,530  

Northern Trust Corp.

     5,267       —         —         1,931       —         91       7,198  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 44,237     $ 378,195     $ 356,635     $ 1,931     $ —       $ 149     $ 67,728  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

MONEY MARKET FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ABS COMMERCIAL PAPER - 13.3%

      

ABS Other - 13.3%

      

Alpine Securitization Ltd.,

      

0.75%, 1/12/17(1)

    $ 3,000      $ 2,999  

Bedford Row Funding Corp.,

      

0.67%, 1/10/17(1)

      3,000        2,999  

Bennington Stark Capital Co. LLC,

      

0.71%, 1/3/17(1)

      3,000        3,000  

Concord Minutemen Capital Co. LLC, Class A,

      

0.71%, 1/6/17

      3,000        3,000  

Liberty Street Funding LLC,

      

0.71%, 1/6/17

      1,800        1,800  

0.72%, 1/6/17

      1,600        1,600  

Ridgefield Funding Co. LLC,

      

0.65%, 1/3/17(1)

      2,500        2,500  

Thunder Bay Funding LLC,

      

0.71%, 1/10/17(1)

      1,500        1,500  

Victory Receivables Corp.,

      

0.88%, 1/23/17(1)

      3,300        3,298  
  

 

 

     

 

 

  
        22,696  
     

 

 

  

Total ABS Commercial Paper

(Cost $22,696)

         22,696  
     

 

 

  

CERTIFICATES OF DEPOSIT - 9.4%

      

Banking - 9.4%

      

Mitsubishi UFJ Trust & Banking Corp.,

      

1.21%, 1/11/17(2)

      1,500        1,500  

National Australia Bank Ltd.,

      

1.28%, 2/24/17(2)

      3,500        3,502  

Norinchukin Bank, New York Branch,

      

0.90%, 1/17/17

      3,000        3,000  

Shizuoka Bank Ltd., New York Branch,

      

0.90%, 2/1/17

      3,000        3,000  

Toronto Dominion Bank, New York,

      

0.78%, 1/31/17

      5,000        5,000  
  

 

 

     

 

 

  
        16,002  
     

 

 

  

Total Certificates of Deposit

(Cost $16,002)

         16,002  
     

 

 

  

COMMERCIAL PAPER - 5.4%

      

Banking - 3.6%

      

Bank of Montreal, Chicago Branch,

      

0.96%, 2/15/17

      3,000        2,996  

United Overseas Bank Ltd.,

      

0.76%, 1/20/17(1)

      750        750  

0.76%, 1/23/17(1)

      2,375        2,374  
  

 

 

     

 

 

  
        6,120  
     

 

 

  

Foreign Agencies - 1.8%

      

Korea Development Bank,

      

0.74%, 2/3/17

      3,000        2,998  
  

 

 

     

 

 

  

Total Commercial Paper

(Cost $9,118)

         9,118  
     

 

 

  

CORPORATE NOTES/BONDS - 0.3%

      

Banking - 0.3%

      

Australia and New Zealand Banking Group,

      

1.25%, 1/10/17

      525        525  
  

 

 

     

 

 

  

Total Corporate Notes/Bonds

(Cost $525)

         525  
     

 

 

  

EURODOLLAR TIME DEPOSITS - 10.3%

      

Banking - 10.3%

      

Australia and New Zealand Banking Group,

      

0.55%, 1/3/17

      7,500        7,500  

Credit Agricole S.A., London Branch,

      

0.60%, 1/3/17

      5,000        5,000  

Nordea Bank Finland PLC, New York,

      

0.50%, 1/3/17

      5,000        5,000  
  

 

 

     

 

 

  
        17,500  
     

 

 

  

Total Eurodollar Time Deposits

(Cost $17,500)

         17,500  
     

 

 

  

MUNICIPAL INVESTMENTS - 46.1%

      

Arizona - 3.4%

      

Pima County IDA MFH Revenue Refunding Bonds, Eastside Place Apartments Project,

     

(FNMA LOC),

      

0.73%, 1/10/17(3)

      5,845        5,845  
  

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL INVESTMENTS - 46.1% continued

      

Arkansas - 3.1%

      

Benton County Public Facilities Board College Parking Revenue Refunding Bonds, Series A, Northwest Arkansas Community,

      

(FHLB of Dallas LOC),

      

0.74%, 1/10/17(3)

    $ 5,350      $ 5,350  
  

 

 

     

 

 

  

California - 7.1%

      

California State Pollution Control Financing Authority PCR Refunding Bonds, Series C, Pacific Gas & Electric,

      

(Mizuho Bank Ltd. LOC),

      

0.73%, 1/3/17(3)

      8,000        8,000  

Corona City MFH Revenue Refunding Bonds, Series A, Country Hills Project,

      

(FHLMC LOC),

      

0.78%, 1/10/17(3)

      4,075        4,075  
  

 

 

     

 

 

  
        12,075  
     

 

 

  

Florida - 4.9%

      

Florida State HFA Revenue Bonds,

      

(FNMA LOC),

      

0.76%, 1/10/17(3)

      5,000        5,000  

JEA Electric System Revenue Bonds, Series Three-C-1,

      

0.73%, 1/10/17(3)

      3,300        3,300  
  

 

 

     

 

 

  
        8,300  
     

 

 

  

Maryland -1.8%

      

Maryland State Department of Housing & Community Development Administration Taxable Revenue Bonds, Series E,

      

0.75%, 1/10/17(3)

      3,000        3,000  
  

 

 

     

 

 

  

Missouri - 3.0%

      

Springfield IDA Revenue Bonds, ABEC Inc. Project,

      

0.80%, 1/10/17(3)

      5,090        5,090  
  

 

 

     

 

 

  

Pennsylvania - 7.2%

     

Allegheny County IDA Health Care Revenue Bonds, Series B, Vincentian Collaborative,

      

(PNC Bank N.A. LOC),

      

0.78%, 1/10/17(3)

      4,725        4,725  

Haverford Township School District G.O. Limited Bonds,

      

(TD Bank N.A. LOC),

      

0.73%, 1/10/17(3)

      7,500        7,500  
  

 

 

     

 

 

  
        12,225  
     

 

 

  

South Carolina - 1.8%

      

South Carolina State Finance & Development Authority MFH Revenue Bonds, Brookside Apartments,

      

(FHLMC LOC),

      

0.72%, 1/10/17(3)

      3,000        3,000  
  

 

 

     

 

 

  

Tennessee - 2.9%

      

Metropolitan Government Nashville & Davidson County IDB MFH Revenue Bonds,

      

(FNMA LOC),

      

0.74%, 1/10/17(3)

      5,000        5,000  
  

 

 

     

 

 

  

Texas - 3.2%

      

Texas State Department of Housing & Community Affairs Revenue Bonds, Series A-1, Timber Point Apartments,

      

(FHLMC LOC),

      

0.78%, 1/10/17(3)

      5,430        5,430  
  

 

 

     

 

 

  

Utah - 2.9%

      

Utah State Housing Corp. Multifamily Revenue Bonds, Series A, Florentine Villas,

      

(FHLMC LOC),

      

0.74%, 1/10/17(3)

      5,000        5,000  
  

 

 

     

 

 

  

Vermont - 2.9%

      

Vermont Economic Development Authority Municipal Interest Bearing CP,

      

(JPMorgan Chase Bank N.A. LOC),

      

0.95%, 2/17/17

      5,000        5,000  
  

 

 

     

 

 

  

 

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL INVESTMENTS - 46.1% continued

      

Washington - 1.9%

      

Washington State Higher Education Facilities Authority Revenue Bonds, Whitman College Project,

      

0.75%, 1/10/17(3)

    $ 3,185      $ 3,185  
  

 

 

     

 

 

  

Total Municipal Investments

(Cost $78,500)

         78,500  
     

 

 

  

Investments, at Amortized Cost

($144,341)

         144,341  
     

 

 

  

REPURCHASE AGREEMENTS - 14.5%(4)

      

Repurchase Agreements - 14.5%

      

Citigroup Global Markets, Inc., dated 12/30/16, repurchase price $24,579

      

0.53%, 1/3/17

      24,578        24,578  
  

 

 

     

 

 

  

Total Repurchase Agreements

(Cost $24,578)

         24,578  
     

 

 

  

Total Investments - 99.3%

(Cost $168,919)(5)

         168,919  
     

 

 

  

Other Assets less Liabilities - 0.7%

         1,218  
     

 

 

  

NET ASSETS - 100.0%

       $ 170,137  
     

 

 

  

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined in accordance with procedures established by the Board of Trustees of Northern Funds.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed.
(3) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the date when principal payments may be due, taking into account any call options exercised and any permissible maturity shortening features.
(4) The nature and terms of the collateral received for the repurchase agreements are as follows:

 

NAME

    FAIR
VALUE
(000S)		      COUPON
RATES		   MATURITY
DATES		  

U.S. Treasury Notes

    $ 25,070      0.88%     6/15/19  
  

 

 

       

 

(5) The cost for federal income tax purposes was approximately $168,919,000.

Percentages shown are based on Net Assets.

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Investments held by Money Market Fund(1)

    $ —        $ 168,919      $ —        $ 168,919  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

            

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

CP - Commercial Paper

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

HFA - Housing Finance Authority

IDA - Industrial Development Authority

IDB - Industrial Development Board

G.O. - General Obligation

LOC - Line of Credit

MFH - Multifamily Housing

PCR - Pollution Control Revenue

 

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

 

MUNICIPAL MONEY MARKET FUND    DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL INVESTMENTS - 91.3%

      

Alabama - 2.6%

      

Chatom Alabama IDB Gulf Opportunity Zone Revenue Bonds, Powersouth Energy Cooperative,

      

(Natural Rural Utilities Cooperative Finance Corp. LOC),

      

0.86%, 1/10/17(1)

    $ 2,000      $ 2,000  
  

 

 

     

 

 

  

Alaska - 2.6%

      

Alaska State Industrial Development & Export Authority Revenue Refunding Bonds, Series A, Greater Fairbanks,

      

(MUFG Union Bank N.A. LOC),

      

0.73%, 1/10/17(1)

      2,000        2,000  
  

 

 

     

 

 

  

California - 10.9%

      

California Statewide Communities Development Authority MFH Revenue Bonds, Series OO (AMT), Imperial Park Apartments,

      

(FHLMC LOC),

      

0.78%, 1/10/17(1)

      3,000        3,000  

California Statewide Communities Development Authority MFH Revenue Bonds, Series WW (AMT), David Avenue Apartments,

      

(FHLMC LOC),

      

0.78%, 1/10/17(1)

      5,300        5,300  
  

 

 

     

 

 

  
        8,300  
     

 

 

  

Colorado - 4.9%

      

Colorado State Educational & Cultural Facilities Authority Revenue Bonds, Series B-1, National Jewish Federation Board Program,

      

(Toronto-Dominion Bank LOC),

      

0.71%, 1/3/17(1)

      1,500        1,500  

Colorado State Educational & Cultural Facilities Authority Revenue Refunding Bonds, Capital Christian Schools,

      

(FHLB of San Francisco LOC),

      

0.72%, 1/10/17(1)

      2,200        2,200  
  

 

 

     

 

 

  
        3,700  
     

 

 

  

District of Columbia - 1.7%

      

District of Columbia Revenue Bonds, Center of Internship and Academic,

      

(Branch Banking & Trust Co. LOC),

      

0.77%, 1/10/17(1)

      1,265        1,265  
  

 

 

     

 

 

  

Florida - 2.9%

      

Highlands County Health Facilities Authority Revenue Bonds, Series A, Hospital Adventist Health System,

      

0.72%, 1/10/17(1)

      2,200        2,200  
  

 

 

     

 

 

  

Illinois - 12.8%

      

Illinois State Development Finance Authority Revenue Bonds, St. Ignatius College Project,

      

(PNC Bank N.A. LOC),

      

0.90%, 1/10/17(1)

      1,500        1,500  

Illinois State Development Finance Authority Revenue Bonds, Wheaton Academy Project,

      

(BMO Harris Bank N.A. LOC),

      

0.90%, 1/10/17(1)

      2,500        2,500  

Illinois State Finance Authority Revenue Bonds, Series A, University of Chicago Medical Center,

      

(Bank of America N.A. LOC),

      

0.69%, 1/3/17(1)

      1,700        1,700  

Quad Cities Regional Economic Development Authority Revenue Bonds, Two Rivers YMCA Project,

      

(U.S. Bank N.A. LOC),

      

0.73%, 1/3/17(1)

      2,100        2,100  

Quad Cities Regional EDA Revenue Bonds, Augustana College,

      

(BMO Harris Bank N.A. LOC),

      

0.73%, 1/10/17(1)

      1,900        1,900  
  

 

 

     

 

 

  
        9,700  
     

 

 

  

Indiana - 1.3%

      

Tippecanoe Count Industrial Revenue Bonds, Faith Properties Inc. Projects,

      

0.77%, 1/10/17(1)

      1,000        1,000  
  

 

 

     

 

 

  

Iowa - 3.3%

      

Iowa State Finance Authority Community Revenue Bonds, Series B, Wesley Retirement Services,

      

(Bank of America N.A. LOC),

      

0.73%, 1/10/17(1)

      2,500        2,500  
  

 

 

     

 

 

  

Kansas - 2.6%

      

Olathe City Health Facilities Revenue Bonds, Series B, Olathe Medical Center,

      

(Bank of America N.A. LOC),

      

 

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL INVESTMENTS - 91.3% continued

      

Kansas - 2.6% continued

      

0.73%, 1/3/17(1)

    $ 2,000      $ 2,000  
  

 

 

     

 

 

  

Louisiana - 7.5%

      

East Baton Rouge Parish IDA Development Board, Inc. Revenue Bonds, Series A, Exxon Mobil Project,

      

0.67%, 1/3/17(1)

      1,200        1,200  

Louisiana State Offshore Terminal Authority Deepwater Port Revenue Refunding Bonds, Series A, 1st Stage Loop LLC,

      

(JPMorgan Chase Bank N.A. LOC),

      

0.72%, 1/3/17(1)

      2,000        2,000  

Lousiana State Public Facilities Authority Multifamily Revenue Refunding Bonds,

      

(FNMA LOC),

      

0.77%, 1/10/17(1)

      2,500        2,500  
  

 

 

     

 

 

  
        5,700  
     

 

 

  

Massachusetts - 2.9%

      

Commonwealth of Massachusetts G.O. Limited Bonds, Series A, Consolidated Loan,

      

0.69%, 1/3/17(1)

      2,185        2,185  
  

 

 

     

 

 

  

Michigan - 4.2%

      

Michigan State Strategic Fund Limited Obligation Revenue Bonds, Henry Ford Museum Village Project,

      

(Comerica Bank LOC),

      

0.79%, 1/3/17(1)

      1,600        1,600  

University of Michigan General Revenue Bonds, Series A,

      

0.60%, 1/3/17(1)

      900        900  

University of Michigan General Revenue Bonds, Series D-1,

      

0.66%, 1/3/17(1)

      670        670  
  

 

 

     

 

 

  
        3,170  
     

 

 

  

Mississippi - 1.9%

      

Mississippi State Business Finance Corp. Commission Gulf Opportunity Zone Revenue Bonds, Series B, Chevron USA, Inc.,

      

0.74%, 1/3/17(1)

      600        600  

Mississippi State Business Finance Corp. Commission Gulf Opportunity Zone Revenue Bonds, Series H, Chevron USA, Inc.,

      

(Chevron Corp. Gtd.),

      

0.74%, 1/3/17(1)

      860        860  
  

 

 

     

 

 

  
        1,460  
     

 

 

  

Missouri - 2.4%

      

St. Louis Missouri City IDA Revenue Bonds, Mid-America Transplant Services,

      

(BMO Harris Bank N.A. LOC),

      

0.75%, 1/3/17(1)

      1,845        1,845  
  

 

 

     

 

 

  

New York - 6.6%

      

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series B, Samaritan Medical Center,

      

(HSBC Bank USA N.A. LOC),

      

0.74%, 1/10/17(1)

      1,500        1,500  

New York State HFA Revenue Bonds, Series A, 160 Madison Avenue,

      

(PNC Bank N.A. LOC),

      

0.75%, 1/3/17(1)

      1,000        1,000  

New York State HFA Revenue Bonds, Series S, 160 Madison Avenue,

      

(PNC Bank N.A. LOC),

      

0.75%, 1/3/17(1)

      900        900  

New York State HFA Revenue Bonds, Series S, 19 India Street,

      

(JPMorgan Chase Bank N.A. LOC),

      

0.84%, 1/10/17(1)

      1,500        1,500  

New York State Mortgage Agency Homeowner Mortgage Revenue Bonds, Series 159 (Non AMT),

      

0.78%, 1/10/17(1)

      100        100  
  

 

 

     

 

 

  
        5,000  
     

 

 

  

North Carolina - 1.3%

      

North Carolina State Medical Care Commission Hospital Revenue Bonds, Series B, Moses Cone Health System,

      

0.67%, 1/3/17(1)

      1,000        1,000  
  

 

 

     

 

 

  

 

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL INVESTMENTS - 91.3% continued

      

Ohio - 1.5%

      

Ohio State University Revenue Bonds,

      

0.70%, 1/10/17(1)

    $ 1,100      $ 1,100  
  

 

 

     

 

 

  

Tennessee - 4.0%

      

Sevier County Public Building Authority Revenue Bonds, Series 6-A1, Local Government Public Improvement,

      

0.77%, 1/10/17(1)

      3,000        3,000  
  

 

 

     

 

 

  

Texas - 11.4%

      

Bexar County Health Facilities Development Corp. Revenue Bonds, Series A, El Centro Del Barrio Project,

      

(JPMorgan Chase Bank N.A. LOC),

      

0.83%, 1/10/17(1)

      1,610        1,610  

Harris County Health Facilities Development Corp. Revenue Refunding Bonds, Series A-2, Methodist Hospital System,

      

0.72%, 1/3/17(1)

      2,000        2,000  

San Antonio MFH Finance Corp. Revenue Bonds, Artisan San Pedro Apartments,

      

(FHLMC LOC),

      

0.74%, 1/10/17(1)

      5,000        5,000  
  

 

 

     

 

 

  
        8,610  
     

 

 

  

Wyoming - 2.0%

      

Lincoln County PCR Refunding Bonds, Exxon Mobil Project (Non-AMT),

      

0.67%, 1/3/17(1)

      1,500        1,500  
  

 

 

     

 

 

  

Total Municipal Investments

(Cost $69,235)

         69,235  
     

 

 

  

Total Investments - 91.3%

(Cost $69,235)(2)

         69,235  
     

 

 

  

Other Assets less Liabilities - 8.7%

         6,626  
     

 

 

  

NET ASSETS - 100.0%

       $ 75,861  
     

 

 

  

 

(1) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the date when principal payments may be due, taking into account any call options exercised and any permissible maturity shortening features.
(2) The cost for federal income tax purposes was approximately $69,235,000.

Percentages shown are based on Net Assets.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF TOTAL
INVESTMENTS		  

Hospital

      26.5 % 

Housing

      26.4  

School

      11.7  

IDB & PCR

      5.9  

University

      5.7  

All other sectors less than 5%

      23.8  
  

 

 

  

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 valuations of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Investments held by Municipal Money Market Fund(1)

    $ —        $ 69,235      $ —        $ 69,235  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

 

MUNICIPAL MONEY MARKET FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

EXPLANATIONS OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AMT - Alternative Minimum Tax

EDA - Economic Development Authority

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

HFA - Housing Finance Authority

IDA - Industrial Development Authority

IDB - Industrial Development Board

LOC - Letter of Credit

MFH - Multifamily Housing

PCR - Pollution Control Revenue

 

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

U.S. GOVERNMENT MONEY MARKET FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 50.3%(1)

      

Federal Farm Credit Bank - 5.2%

      

FFCB Bond,

      

0.80%, 6/16/17

    $ 4,000      $ 4,002  

FFCB Discount Notes,

      

0.54%, 1/4/17(2)

      4,000        4,000  

0.54%, 1/6/17(2)

      15,000        14,999  

0.68%, 1/17/17(2)

      10,000        9,997  

0.67%, 1/23/17(2)

      7,000        6,997  

0.56%, 2/1/17(2)

      3,000        2,999  

0.56%, 2/2/17(2)

      15,000        14,993  

0.57%, 2/7/17(2)

      12,000        11,992  

0.57%, 2/10/17(2)

      8,000        7,995  

0.74%, 2/14/17(2)

      7,000        6,994  

0.74%, 2/17/17(2)

      7,000        6,993  

0.69%, 2/22/17(2)

      11,000        10,989  

0.55%, 3/7/17(2)

      3,000        2,997  

0.61%, 3/8/17(2)

      2,000        1,998  

0.61%, 3/10/17(2)

      6,000        5,993  

0.62%, 3/17/17(2)

      4,000        3,995  

0.61%, 4/4/17(2)

      3,000        2,995  

0.61%, 4/11/17(2)

      2,000        1,997  

0.54%, 4/12/17(2)

      5,000        4,993  

0.60%, 4/19/17(2)

      4,000        3,992  

0.63%, 5/2/17(2)

      4,000        3,992  

0.64%, 5/9/17(2)

      2,000        1,996  

0.64%, 5/15/17(2)

      6,000        5,986  

0.61%, 5/18/17(2)

      15,000        14,967  

0.61%, 5/18/17(2)

      2,000        1,996  

0.61%, 6/2/17(2)

      5,000        4,987  

0.61%, 6/12/17(2)

      10,000        9,973  

0.63%, 6/28/17(2)

      4,000        3,988  

0.64%, 7/3/17(2)

      6,000        5,981  

0.55%, 7/6/17(2)

      3,000        2,992  

0.64%, 7/7/17(2)

      11,000        10,964  

0.61%, 7/11/17(2)

      15,000        14,952  

0.64%, 7/13/17(2)

      8,000        7,973  

0.64%, 7/19/17(2)

      11,000        10,962  

0.67%, 7/21/17(2)

      15,000        14,945  

0.66%, 8/3/17(2)

      8,000        7,969  

0.66%, 8/4/17(2)

      5,000        4,980  

0.68%, 8/4/17(2)

      43,000        42,828  

0.68%, 8/8/17(2)

      9,000        8,963  

0.65%, 8/9/17(2)

      44,000        43,828  

0.69%, 8/10/17(2)

      38,000        37,841  

0.69%, 8/11/17(2)

      13,000        12,946  

0.66%, 8/15/17(2)

      4,000        3,984  

0.67%, 8/16/17(2)

      12,000        11,948  

0.70%, 8/16/17(2)

      40,000        39,828  

0.67%, 8/18/17(2)

      2,000        1,991  

0.69%, 8/18/17(2)

      50,000        49,784  

0.69%, 8/23/17(2)

      37,000        36,836  

0.70%, 9/7/17(2)

      6,000        5,971  

0.71%, 9/7/17(2)

      15,000        14,928  

0.71%, 9/8/17(2)

      15,000        14,927  

0.82%, 9/11/17(2)

      17,000        16,903  

0.86%, 10/30/17(2)

      17,000        16,879  

0.86%, 11/16/17(2)

      25,000        24,812  

FFCB Notes,

      

0.83%, 1/3/17(3)

      32,000        31,997  

0.91%, 1/3/17(3)

      36,000        35,993  

0.76%, 1/5/17(3)

      20,000        19,993  

0.67%, 1/6/17(3)

      5,000        5,000  

0.72%, 1/7/17(3)

      9,000        9,000  

0.82%, 1/8/17(3)

      20,000        19,999  

0.65%, 1/10/17(3)

      5,000        5,000  

0.77%, 1/12/17(3)

      9,000        8,999  

0.81%, 1/12/17(3)

      7,000        6,999  

0.83%, 1/18/17(3)

      7,000        6,999  

0.71%, 1/20/17(3)

      3,000        3,000  

0.86%, 1/20/17(3)

      7,000        7,000  

0.86%, 1/21/17(3)

      19,000        18,998  

0.65%, 1/25/17(3)

      6,000        6,000  

0.89%, 1/25/17(3)

      15,000        15,000  

0.77%, 1/27/17(3)

      7,000        6,990  

0.78%, 1/29/17(3)

      4,000        4,000  
  

 

 

     

 

 

  
        857,677  
     

 

 

  

Federal Home Loan Bank - 39.8%

      

FHLB Bonds,

      

0.54%, 1/9/17

      17,000        17,000  

0.43%, 1/11/17

      103,000        102,999  

0.45%, 1/18/17

      15,000        15,000  

0.47%, 1/20/17

      14,000        14,000  

0.56%, 1/20/17

      18,000        18,000  

0.47%, 1/25/17

      20,000        19,999  

0.57%, 4/21/17

      17,000        16,997  

FHLB Discount Notes,

      

0.34%, 1/4/17(2)

      64,000        63,998  

 

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 50.3%(1) continued

      

Federal Home Loan Bank - 39.8% continued

      

0.37%, 1/4/17(2)

    $ 644,000      $ 643,980  

0.29%, 1/17/17(2)

      238,000        237,968  

0.55%, 1/27/17(2)

      212,180        212,101  

0.55%, 1/27/17(2)

      27,000        26,990  

0.50%, 2/1/17(2)

      212,500        212,407  

0.52%, 2/1/17(2)

      86,000        85,962  

0.51%, 2/3/17(2)

      242,100        241,989  

0.51%, 2/6/17(2)

      70,000        69,964  

0.52%, 2/8/17(2)

      250,000        249,860  

0.54%, 2/8/17(2)

      250,000        249,860  

0.54%, 2/8/17(2)

      652,800        652,435  

0.61%, 2/10/17(2)

      485,208        484,928  

0.61%, 2/10/17(2)

      30,000        29,983  

0.51%, 2/13/17(2)

      20,000        19,988  

0.51%, 2/13/17(2)

      225,000        224,863  

0.54%, 2/14/17(2)

      156,000        155,897  

0.52%, 2/15/17(2)

      228,713        228,562  

0.53%, 2/15/17(2)

      68,000        67,955  

0.54%, 2/15/17(2)

      250,000        249,835  

0.55%, 2/16/17(2)

      110,000        109,924  

0.53%, 2/17/17(2)

      100,000        99,930  

0.55%, 2/17/17(2)

      110,000        109,923  

0.55%, 2/21/17(2)

      85,000        84,934  

0.56%, 2/21/17(2)

      210,000        209,836  

0.52%, 2/22/17(2)

      70,000        69,947  

0.53%, 2/22/17(2)

      35,000        34,973  

0.54%, 2/22/17(2)

      78,400        78,341  

0.53%, 2/24/17(2)

      102,000        101,919  

0.59%, 2/24/17(2)

      7,000        6,994  

0.39%, 2/28/17(2)

      75,000        74,953  

0.53%, 3/1/17(2)

      105,000        104,909  

0.53%, 3/6/17(2)

      100,000        99,908  

0.53%, 3/8/17(2)

      130,000        129,875  

0.51%, 3/22/17(2)

      61,000        60,931  

0.58%, 5/1/17(2)

      14,000        13,973  

FHLB Notes,

      

0.70%, 1/1/17(3)

      6,000        6,000  

0.64%, 1/6/17(3)

      65,000        65,000  

0.68%, 1/7/17(3)

      4,000        4,000  

0.68%, 1/8/17(3)

      50,000        50,000  

0.73%, 1/21/17(3)

      9,000        9,000  

0.74%, 1/21/17(3)

      4,000        4,000  

0.84%, 1/26/17(3)

      2,000        2,000  

0.75%, 1/27/17(4)

      21,000        21,000  

0.75%, 2/7/17(4)

      6,000        6,000  

0.75%, 2/10/17(4)

      12,000        12,000  

0.75%, 2/13/17(4)

      10,000        10,000  

0.77%, 2/17/17(4)

      25,000        25,000  

0.92%, 2/22/17(3)

      5,000        5,000  

0.77%, 2/26/17(3)

      40,000        40,000  

0.77%, 3/1/17(3)

      59,000        59,000  

0.78%, 3/7/17(3)

      85,000        84,995  

0.81%, 3/23/17(3)

      35,000        35,000  

0.88%, 3/26/17(3)

      107,000        107,003  
  

 

 

     

 

 

  
        6,549,788  
     

 

 

  

Federal Home Loan Mortgage Corporation - 3.2%

      

FHLMC Bonds,

      

0.50%, 1/27/17

      67,925        67,924  

0.75%, 3/9/17

      22,000        22,000  

0.88%, 6/16/17

      9,000        9,010  

0.75%, 7/14/17

      15,000        15,008  

FHLMC Discount Notes,

      

0.52%, 5/10/17(2)

      40,000        39,925  

0.56%, 5/18/17(2)

      83,000        82,826  

FHLMC Note,

      

0.67%, 1/12/17

      5,000        5,000  

FHLMC Notes,

      

0.84%, 1/8/17(3)

      25,000        25,000  

0.69%, 1/13/17

      5,000        5,000  

0.65%, 1/17/17(3)

      103,000        103,000  

0.74%, 1/20/17(3)

      100,000        99,995  

0.87%, 1/21/17(3)

      14,000        13,999  

0.80%, 1/27/17(3)

      38,000        37,998  
  

 

 

     

 

 

  
        526,685  
     

 

 

  

Federal National Mortgage Association - 2.1%

      

FNMA Bonds,

      

1.25%, 1/30/17

      24,384        24,398  

5.00%, 2/13/17

      16,000        16,079  

5.38%, 6/12/17

      4,000        4,083  

FNMA Discount Notes,

      

0.35%, 1/3/17(2)

      86,734        86,732  

0.37%, 1/3/17(2)

      125,000        124,997  

0.43%, 4/3/17(2)

      32,972        32,927  

 

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 50.3%(1) continued

 

Federal National Mortgage Association - 2.1% continued

      

0.49%, 4/3/17(2)

    $ 46,568      $ 46,500  

FNMA Note,

      

0.66%, 1/8/17(3)

      11,000        10,999  
  

 

 

     

 

 

  
        346,715  
     

 

 

  

Total U.S. Government Agencies

(Cost $8,280,865)

         8,280,865  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 22.5%

      

U.S. Treasury Bills - 4.5%

      

0.46%, 1/12/17(2)

      170,000        169,975  

0.41%, 2/9/17(2)

      451,000        450,801  

0.46%, 3/2/17(2)

      7,000        6,992  

0.54%, 5/11/17(2)

      118,000        117,772  
  

 

 

     

 

 

  
        745,540  
     

 

 

  

U.S. Treasury Floating Rate Notes - 9.1%

      

0.63%, 1/3/17(3)

      33,000        32,994  

0.69%, 1/3/17(3)

      91,000        90,979  

0.73%, 1/3/17(3)

      15,000        14,999  

0.75%, 1/3/17(3)

      308,000        308,463  

0.83%, 1/3/17(3)

      1,057,300        1,059,393  
  

 

 

     

 

 

  
        1,506,828  
     

 

 

  

U.S. Treasury Notes - 8.9%

      

0.75%, 1/15/17

      34,000        34,001  

0.50%, 1/31/17

      58,000        57,997  

3.00%, 2/28/17

      13,000        13,050  

0.63%, 5/31/17

      81,476        81,495  

0.88%, 6/15/17

      175,000        175,223  

0.63%, 6/30/17

      157,000        157,026  

2.50%, 6/30/17

      150,000        151,429  

0.50%, 7/31/17

      65,000        64,941  

0.88%, 8/15/17

      226,000        226,355  

0.63%, 8/31/17

      153,000        152,973  

1.88%, 8/31/17

      108,000        108,876  

1.00%, 9/15/17

      100,000        100,221  

0.75%, 10/31/17

      100,000        100,006  

1.88%, 10/31/17

      38,000        38,350  
  

 

 

     

 

 

  
        1,461,943  
     

 

 

  

Total U.S. Government Obligations

(Cost $3,714,311)

         3,714,311  
     

 

 

  

Investments, at Amortized

Cost ($11,995,176)

         11,995,176  
     

 

 

  

REPURCHASE AGREEMENTS - 27.6%

      

Joint Repurchase Agreements - 0.0%(5) (6)

      

Bank of America Securities LLC, dated 12/30/16, repurchase price $1,607

      

0.29%, 1/9/17

      1,607        1,607  
  

 

 

     

 

 

  

Repurchase Agreements - 27.6%(7)

      

Bank of Montreal, dated 12/6/16, repurchase price $200,091

      

0.43%, 1/13/17

      200,000        200,000  

Bank of Nova Scotia, dated 12/30/16, repurchase price $1,300,073

      

0.50%, 1/3/17

      1,300,000        1,300,000  

BNP Paribas S.A., dated 11/28/16, repurchase price $275,093

      

0.33%, 1/4/17

      275,000        275,000  

BNP Paribas S.A., dated 12/30/16, repurchase price $760,043

      

0.50%, 1/3/17

      760,000        760,000  

Citigroup Global Markets, Inc., dated 12/30/16, repurchase price $95,952

      

0.51%, 1/3/17

      95,947        95,947  

Credit Suisse Securities, dated 12/22/16, repurchase price $250,076

      

0.52%, 1/12/17

      250,000        250,000  

Deutsche Bank Securities, Inc., dated 12/30/16, repurchase price $150,008

      

0.50%, 1/3/17

      150,000        150,000  

Federal Reserve Bank of New York, dated 12/30/16, repurchase price $875,049

      

0.50%, 1/3/17

      875,000        875,000  

 

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

 

U.S. GOVERNMENT MONEY MARKET FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

REPURCHASE AGREEMENTS - 27.6% continued

      

Repurchase Agreements - 27.6%(7) continued

  

Societe Generale, New York Branch,dated 12/30/16, repurchase price $250,025

      

0.51%, 1/6/17

    $ 250,000       $ 250,000   

Societe Generale, New York Branch,dated 12/30/16, repurchase price $395,023

      

0.51%, 1/3/17

      395,000         395,000   
  

 

 

     

 

 

  
        4,550,947   
     

 

 

  

Total Repurchase Agreements

(Cost $4,552,554)

         4,552,554   
     

 

 

  

Total Investments - 100.4%

(Cost $16,547,730)(8)

         16,547,730   
     

 

 

  

Liabilities less Other Assets - (0.4%)

         (72,129 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 16,475,601   
     

 

 

  

 

(1) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(2) Discount rate at the time of purchase.
(3) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity and/or credit risk.
(4) Variable rate security. Rate as of December 31, 2016 is disclosed.
(5) Interest rates are reset daily and interest is payable monthly.
(6) 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 Notes

    $ 1,640         0.13%         4/15/17   
  

 

 

     

 

 

     

 

 

  

 

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

 

NAME

    FAIR
VALUE
(000S)		      COUPON
RATES		    MATURITY
DATES		  

FHLMC

    $ 69,071       1.00% - 6.50%      3/8/17 - 12/1/46   

FNMA

    $ 283,749       0.88% - 7.00%      2/8/18 - 1/1/47   

GNMA

    $ 266,021       2.00% - 7.00%      1/15/29 - 10/20/46   

U.S. Treasury Bills

    $ 31       0.00%      1/5/17 - 9/14/17   

U.S. Treasury Bonds

    $ 2,064,755       0.00% - 8.13%      11/15/17 - 2/15/46   

U.S. Treasury Notes

    $ 1,949,987       0.13% - 2.75%      1/31/17 - 8/15/25   
  

 

 

        

Total

    $ 4,633,614         
  

 

 

        

 

(8) The cost for federal income tax purposes was approximately $16,547,730,000.

Percentages shown are based on Net Assets.

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Investments held by U.S. Government Money Market Fund(1)

    $ —         $ 16,547,730       $ —         $ 16,547,730   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

FFCB - Federal Farm Credit Bank

FHLB - Federal Home Loan Mortgage Corporation

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

GNMA - Government National Mortgage Association

 

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

U.S. GOVERNMENT SELECT MONEY MARKET FUND   

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 64.1%(1)

  

Federal Farm Credit Bank - 14.4%

      

FFCB Discount Notes,

      

0.36%, 1/3/17(2)

    $ 25,000       $ 24,999   

0.54%, 1/4/17(2)

      4,000         4,000   

0.54%, 1/6/17(2)

      15,000         14,999   

0.63%, 1/9/17(2)

      10,000         9,999   

0.67%, 1/23/17(2)

      8,000         7,997   

0.56%, 1/25/17(2)

      5,000         4,998   

0.56%, 2/2/17(2)

      7,000         6,997   

0.57%, 2/7/17(2)

      5,000         4,997   

0.68%, 2/7/17(2)

      14,000         13,991   

0.71%, 2/7/17(2)

      5,000         4,997   

0.57%, 2/10/17(2)

      10,000         9,994   

0.74%, 2/14/17(2)

      9,000         8,992   

0.74%, 2/17/17(2)

      8,000         7,992   

0.69%, 2/22/17(2)

      13,000         12,987   

0.55%, 3/7/17(2)

      4,000         3,996   

0.61%, 3/8/17(2)

      2,000         1,998   

0.61%, 3/10/17(2)

      7,000         6,992   

0.62%, 3/17/17(2)

      4,000         3,995   

0.61%, 4/4/17(2)

      4,000         3,994   

0.61%, 4/11/17(2)

      2,000         1,997   

0.60%, 4/19/17(2)

      5,000         4,991   

0.64%, 4/19/17(2)

      4,000         3,993   

0.64%, 4/27/17(2)

      2,000         1,996   

0.63%, 5/2/17(2)

      4,000         3,992   

0.64%, 5/9/17(2)

      2,000         1,995   

0.64%, 5/15/17(2)

      7,000         6,984   

0.61%, 5/18/17(2)

      2,000         1,995   

0.61%, 6/2/17(2)

      5,000         4,987   

0.66%, 6/21/17(2)

      5,000         4,985   

0.64%, 7/3/17(2)

      5,000         4,984   

0.55%, 7/6/17(2)

      3,000         2,992   

0.64%, 7/7/17(2)

      10,000         9,967   

0.64%, 7/13/17(2)

      7,000         6,976   

0.67%, 7/21/17(2)

      6,000         5,978   

0.67%, 7/28/17(2)

      10,000         9,962   

0.66%, 8/3/17(2)

      7,000         6,973   

0.66%, 8/4/17(2)

      5,000         4,980   

0.68%, 8/4/17(2)

      5,000         4,980   

0.68%, 8/8/17(2)

      6,000         5,975   

0.69%, 8/10/17(2)

      8,000         7,967   

0.69%, 8/11/17(2)

      3,000         2,987   

0.66%, 8/15/17(2)

      3,000         2,988   

0.67%, 8/18/17(2)

      2,000         1,992   

0.69%, 8/23/17(2)

      8,000         7,965   

0.70%, 9/7/17(2)

      3,000         2,985   

0.71%, 9/7/17(2)

      6,000         5,971   

0.71%, 9/8/17(2)

      6,000         5,971   

0.69%, 10/5/17(2)

      10,000         9,948   

0.71%, 10/12/17(2)

      2,000         1,989   

FFCB Notes,

      

0.62%, 1/2/17(3)

      15,000         15,000   

0.83%, 1/3/17(3)

      33,000         32,996   

0.91%, 1/3/17(3)

      5,000         4,999   

0.63%, 1/4/17(3)

      18,000         18,000   

0.82%, 1/4/17(3)

      6,000         5,999   

0.76%, 1/5/17(3)

      21,000         20,993   

0.67%, 1/6/17(3)

      10,000         10,000   

0.78%, 1/6/17(3)

      6,000         5,999   

0.72%, 1/7/17(3)

      10,000         10,000   

0.82%, 1/8/17(3)

      6,000         6,000   

0.65%, 1/10/17(3)

      10,000         10,000   

0.77%, 1/12/17(3)

      8,000         7,999   

0.81%, 1/12/17(3)

      8,000         7,999   

0.83%, 1/18/17(3)

      8,000         7,999   

0.71%, 1/20/17(3)

      5,000         5,000   

0.86%, 1/20/17(3)

      8,000         8,000   

0.86%, 1/21/17(3)

      20,000         19,997   

0.78%, 1/22/17(3)

      27,000         26,971   

0.65%, 1/25/17(3)

      1,000         1,000   

0.77%, 1/27/17(3)

      7,000         6,990   
  

 

 

     

 

 

  
        543,300   
     

 

 

  

Federal Home Loan Bank - 42.9%

      

FHLB Bonds,

      

0.54%, 1/9/17

      20,000         20,000   

0.43%, 1/11/17

      31,000         31,000   

0.45%, 1/18/17

      16,000         16,000   

0.56%, 1/20/17

      20,000         20,000   

0.47%, 1/25/17

      19,000         18,999   

0.54%, 1/25/17

      14,000         14,000   

0.57%, 4/21/17

      16,000         15,998   

4.88%, 5/17/17

      6,000         6,094   

0.88%, 5/24/17

      6,000         6,004   

FHLB Discount Notes,

      

0.34%, 1/4/17(2)

      15,000         15,000   

0.37%, 1/4/17(2)

      25,000         24,999   

 

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 64.1%(1) continued

  

Federal Home Loan Bank - 42.9% continued

  

0.38%, 1/4/17(2)

    $ 33,000       $ 32,999   

0.55%, 1/27/17(2)

      32,000         31,987   

0.50%, 2/1/17(2)

      49,000         48,978   

0.52%, 2/1/17(2)

      81,200         81,164   

0.53%, 2/1/17(2)

      20,000         19,991   

0.52%, 2/2/17(2)

      65,000         64,970   

0.51%, 2/6/17(2)

      15,000         14,992   

0.54%, 2/8/17(2)

      95,000         94,946   

0.61%, 2/10/17(2)

      6,000         5,996   

0.51%, 2/13/17(2)

      50,000         49,969   

0.54%, 2/14/17(2)

      144,000         143,905   

0.52%, 2/15/17(2)

      172,000         171,888   

0.53%, 2/15/17(2)

      15,000         14,990   

0.55%, 2/16/17(2)

      25,000         24,983   

0.53%, 2/17/17(2)

      143,400         143,301   

0.55%, 2/17/17(2)

      25,000         24,983   

0.55%, 2/21/17(2)

      20,000         19,984   

0.52%, 2/22/17(2)

      15,000         14,989   

0.53%, 2/24/17(2)

      8,000         7,993   

0.53%, 3/8/17(2)

      29,000         28,972   

0.58%, 5/1/17(2)

      13,000         12,975   

0.57%, 5/10/17(2)

      35,000         34,929   

FHLB Notes,

      

0.62%, 1/2/17(3)

      10,000         10,000   

0.68%, 1/7/17(3)

      5,000         5,000   

0.73%, 1/21/17(3)

      19,000         19,000   

0.76%, 1/25/17(3)

      30,000         30,000   

0.84%, 1/26/17(3)

      3,000         3,000   

0.75%, 1/27/17(3)

      24,000         24,000   

0.74%, 1/28/17(3)

      11,000         11,000   

0.75%, 2/7/17(3)

      33,000         32,999   

0.75%, 2/10/17(3)

      49,000         48,999   

0.75%, 2/13/17(3)

      20,000         20,000   

0.77%, 2/17/17(3)

      50,000         49,999   

0.92%, 2/22/17(3)

      10,000         10,000   

0.77%, 2/26/17(3)

      40,000         40,000   

0.77%, 3/1/17(3)

      13,000         13,000   

0.78%, 3/7/17(3)

      5,000         5,000   

0.81%, 3/23/17(3)

      15,000         15,000   

0.88%, 3/26/17(3)

      6,000         6,000   
  

 

 

     

 

 

  
        1,620,975   
     

 

 

  

Tennessee Valley Authority - 6.8%

      

Tennessee Valley Authority Discount Notes,

      

0.52%, 1/3/17(2)

      194,000         193,995   

0.51%, 1/17/17(2)

      62,000         61,986   
  

 

 

     

 

 

  
        255,981   
     

 

 

  

Total U.S. Government Agencies

(Cost $2,420,256)

         2,420,256   
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 18.6%

      

U.S. Treasury Bills - 6.4%

      

0.46%, 1/12/17(2)

      50,000         49,993   

0.41%, 2/9/17(2)

      108,000         107,953   

0.67%, 3/2/17(2)

      7,000         6,992   

0.54%, 5/11/17(2)

      78,000         77,849   
  

 

 

     

 

 

  
        242,787   
     

 

 

  

U.S. Treasury Floating Rate Notes - 4.7%

      

0.63%, 1/3/17(3)

      16,000         15,997   

0.69%, 1/3/17(3)

      21,000         20,995   

0.75%, 1/3/17(3)

      91,000         91,127   

0.83%, 1/3/17(3)

      48,000         48,019   
  

 

 

     

 

 

  
        176,138   
     

 

 

  

U.S. Treasury Notes - 7.5%

      

0.75%, 1/15/17

      38,000         38,001   

0.50%, 1/31/17

      33,000         32,999   

3.00%, 2/28/17

      16,000         16,061   

0.63%, 5/31/17

      57,000         57,012   

0.88%, 6/15/17

      5,000         5,006   

0.63%, 6/30/17

      8,000         8,001   

0.88%, 8/15/17

      49,000         49,077   

0.63%, 8/31/17

      33,000         32,994   

1.88%, 8/31/17

      26,000         26,211   

0.75%, 10/31/17

      10,000         10,001   

1.88%, 10/31/17

      8,000         8,074   
  

 

 

     

 

 

  
        283,437   
     

 

 

  

Total U.S. Government Obligations

(Cost $702,362)

         702,362   
     

 

 

  

Investments, at Amortized Cost

($3,122,618)

         3,122,618   
     

 

 

  

 

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

REPURCHASE AGREEMENTS - 17.3%

  

Repurchase Agreements - 17.3%(4)

      

Bank of America N.A., dated 12/30/16, repurchase price $280,016

      

0.50%, 1/3/17

    $ 280,000       $ 280,000   

Citigroup Global Markets, Inc., dated 12/30/16, repurchase price $95,952

      

0.51%, 1/3/17

      3,104         3,104   

Mizuho Securities USA, Inc., dated 12/30/16, repurchase price $370,021

      

0.50%, 1/3/17

      370,000         370,000   
  

 

 

     

 

 

  
        653,104   
     

 

 

  

Total Repurchase Agreements

(Cost $653,104)

         653,104   
     

 

 

  

Total Investments - 100.0%

(Cost $3,775,722)(5)

         3,775,722   
     

 

 

  

Other Assets less Liabilities - 0.0%

         1,815   
     

 

 

  

NET ASSETS - 100.0%

       $ 3,777,537   
     

 

 

  

 

(1) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(2) Discount rate at the time of purchase.
(3) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity and/or credit risk.
(4) The nature and terms of the collateral received for the repurchase agreements are as follows:

 

NAME

    FAIR
VALUE
(000S)		      COUPON
RATES		    MATURITY
DATES		  

FHLMC

    $ 509,928       3.00% - 4.00%      11/1/2031 - 12/1/2046   

FNMA

    $ 159,572       3.00% - 4.00%      12/1/2031 - 1/1/2047   

U.S. Treasury Bonds

    $ 3,197       0.00%      8/15/2028 - 8/15/2044   
  

 

 

        

Total

    $ 672,697         
  

 

 

        

 

(5) The cost for federal income tax purposes was approximately $3,775,722,000.

Percentages shown are based on Net Assets.

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. The following table summarizes the valuations of the Fund’s investments, which are carried at amortized cost, which approximates fair value, by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Investments held by U.S. Government Select Money Market Fund(1)

    $ —         $ 3,775,722       $ —         $ 3,775,722   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

FFCB - Federal Farm Credit Bank

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

 

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

 

CORE BOND FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 6.1%

      

Commercial Mortgage-Backed Securities - 4.1%

      

Citigroup Commercial Mortgage Trust, Series 2013-GC11, Class A2

      

1.99%, 4/10/46

    $ 1,195      $ 1,199  

Commercial Mortgage Trust, Series 2013-CR9, Class A2

      

3.06%, 7/10/45

      164        166  

Commercial Mortgage Trust, Series 2014-CR16, Class A2

      

3.04%, 4/10/47

      220        225  

Commercial Mortgage Trust, Series 2014-LC15, Class A2

      

2.84%, 4/10/47

      100        102  

Commercial Mortgage Trust, Series 2015-PC1, Class A2

      

3.15%, 7/10/50

      1,270        1,303  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C14, Class A2

      

3.02%, 8/15/46

      2,320        2,369  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A2

      

3.05%, 4/15/47

      2,560        2,621  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A2

      

2.92%, 2/15/47

      375        382  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, Class A2

      

2.85%, 6/15/47

      640        652  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class A2

      

3.10%, 12/15/47

      880        903  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C23, Class A2

      

2.98%, 7/15/50

      150        153  

WFRBS Commercial Mortgage Trust, Series 2013-UBS1, Class A2

      

2.93%, 3/15/46

      500        510  

WFRBS Commercial Mortgage Trust, Series 2014-C20, Class A2

      

3.04%, 5/15/47

      290        297  
  

 

 

     

 

 

  
        10,882  
     

 

 

  

Credit Card - 1.8%

      

Citibank Credit Card Issuance Trust, Series 2016-A1, Class A1

      

1.75%, 11/19/21

      2,400        2,389  

Discover Card Execution Note Trust, Series 2016-A4, Class A4

      

1.39%, 3/15/22

      2,475        2,447  
  

 

 

     

 

 

  
        4,836  
     

 

 

  

Other - 0.2%

      

CNH Equipment Trust, Series 2016-C, Class A3

      

1.44%, 12/15/21

      705        698  
  

 

 

     

 

 

  

Total Asset-Backed Securities

(Cost $16,526)

         16,416  
     

 

 

  

CORPORATE BONDS - 34.1%

      

Aerospace & Defense - 0.4%

      

Lockheed Martin Corp.,

      

2.50%, 11/23/20

      200        202  

3.10%, 1/15/23

      55        55  

3.80%, 3/1/45

      215        204  

Northrop Grumman Corp.,

      

3.25%, 8/1/23

      192        196  

United Technologies Corp.,

      

3.75%, 11/1/46

      385        366  
  

 

 

     

 

 

  
        1,023  
     

 

 

  

Auto Parts Manufacturing - 0.1%

      

Delphi Corp.,

      

4.15%, 3/15/24

      185        191  
  

 

 

     

 

 

  

Automobiles Manufacturing - 1.4%

      

Ford Motor Co.,

      

7.45%, 7/16/31

      280        352  

Ford Motor Credit Co. LLC,

      

3.10%, 5/4/23

      345        333  

3.66%, 9/8/24

      550        537  

General Motors Co.,

      

4.88%, 10/2/23

      20        21  

General Motors Financial Co., Inc.,

      

3.20%, 7/13/20

      490        492  

3.70%, 11/24/20

      660        671  

3.20%, 7/6/21

      340        337  

4.25%, 5/15/23

      680        688  

 

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 34.1% continued

 

   

Automobiles Manufacturing - 1.4% continued

 

   

Nissan Motor Acceptance Corp.,

      

2.35%, 3/4/19(1)

   $ 280      $ 281  
  

 

 

     

 

 

  
        3,712  
     

 

 

  

Banks - 0.9%

      

Capital One N.A.,

      

1.50%, 3/22/18

      355        353  

PNC Bank N.A.,

      

2.70%, 11/1/22

      205        202  

3.25%, 6/1/25

      520        519  

PNC Financial Services Group (The), Inc.,

      

4.85%, 6/1/23(2)

     625        600  

US Bancorp,

      

3.10%, 4/27/26

      270        263  

Wells Fargo Bank N.A.,

      

2.15%, 12/6/19

      515        515  
  

 

 

     

 

 

  
        2,452  
     

 

 

  

Biotechnology - 1.0%

      

Amgen, Inc.,

      

4.40%, 5/1/45

      630        604  

Biogen, Inc.,

      

2.90%, 9/15/20

      210        213  

Celgene Corp.,

      

5.25%, 8/15/43

      345        364  

Gilead Sciences, Inc.,

      

4.40%, 12/1/21

      325        350  

5.65%, 12/1/41

      315        364  

Roche Holdings, Inc.,

      

1.75%, 1/28/22(1)

     710        682  
  

 

 

     

 

 

  
        2,577  
     

 

 

  

Cable & Satellite - 1.0%

      

Charter Communications Operating LLC/Charter Communications Operating Capital,

      

4.46%, 7/23/22

      435        454  

6.48%, 10/23/45

      565        653  

Comcast Corp.,

      

6.30%, 11/15/17

      425        443  

3.38%, 2/15/25

      865        874  

6.40%, 5/15/38

      285        365  
  

 

 

     

 

 

  
        2,789  
     

 

 

  

Chemicals - 0.4%

      

Eastman Chemical Co.,

      

3.60%, 8/15/22

      10        10  

3.80%, 3/15/25

      182        184  

4.65%, 10/15/44

      425        421  

PPG Industries, Inc.,

      

2.30%, 11/15/19

      260        261  

Westlake Chemical Corp.,

      

3.60%, 7/15/22

      120        120  
  

 

 

     

 

 

  
        996  
     

 

 

  

Communications Equipment - 0.5%

      

Apple, Inc.,

      

2.70%, 5/13/22

      480        483  

3.25%, 2/23/26

      395        395  

4.45%, 5/6/44

      150        156  

3.85%, 8/4/46

      210        201  
  

 

 

     

 

 

  
        1,235  
     

 

 

  

Consumer Finance - 0.8%

      

American Express Credit Corp.,

      

2.38%, 5/26/20

      285        285  

Capital One Financial Corp.,

      

4.20%, 10/29/25

      1,040        1,043  

Visa, Inc.,

      

2.80%, 12/14/22

      815        820  
  

 

 

     

 

 

  
        2,148  
     

 

 

  

Consumer Services - 0.3%

      

Ecolab, Inc.,

      

1.45%, 12/8/17

      425        425  

3.70%, 11/1/46

      440        400  
  

 

 

     

 

 

  
        825  
     

 

 

  

Containers & Packaging - 0.2%

      

International Paper Co.,

      

4.40%, 8/15/47

      680        643  
  

 

 

     

 

 

  

Diversified Banks - 5.5%

      

Bank of America Corp.,

      

5.70%, 1/24/22

      55        62  

4.13%, 1/22/24

      195        203  

4.00%, 4/1/24

      5        5  

4.00%, 1/22/25

      1,015        1,016  

4.45%, 3/3/26

      371        382  

6.11%, 1/29/37

      480        563  

5.00%, 1/21/44

      587        643  

4.75%, 4/21/45

      30        30  

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 34.1% continued

      

Diversified Banks - 5.5% continued

      

Citigroup, Inc.,

      

2.05%, 12/7/18

    $ 235      $ 235  

2.90%, 12/8/21

      635        633  

4.50%, 1/14/22

      380        405  

4.05%, 7/30/22

      200        207  

3.88%, 3/26/25

      366        364  

4.60%, 3/9/26

      970        1,002  

3.40%, 5/1/26

      540        525  

4.45%, 9/29/27

      950        965  

4.13%, 7/25/28

      550        543  

6.68%, 9/13/43

      523        663  

JPMorgan Chase & Co.,

      

7.90%, 4/30/18(2)

     389        403  

6.30%, 4/23/19

      290        317  

5.00%, 7/1/19(2)

     265        264  

5.30%, 5/1/20(2)

     280        286  

2.55%, 3/1/21

      200        199  

2.70%, 5/18/23

      35        34  

3.90%, 7/15/25

      900        925  

4.25%, 10/1/27

      500        514  

4.95%, 6/1/45

      70        75  

Wells Fargo & Co.,

      

7.98%, 3/15/18(2)

     125        131  

2.15%, 1/30/20

      250        249  

2.60%, 7/22/20

      195        196  

2.50%, 3/4/21

      245        243  

3.50%, 3/8/22

      180        185  

3.00%, 4/22/26

      970        926  

4.30%, 7/22/27

      178        183  

3.90%, 5/1/45

      470        446  

4.75%, 12/7/46

      680        690  
  

 

 

     

 

 

  
        14,712  
     

 

 

  

Electrical Equipment Manufacturing - 0.6%

 

   

Fortive Corp.,

      

3.15%, 6/15/26(1)

     160        158  

Keysight Technologies, Inc.,

      

3.30%, 10/30/19

      235        239  

Roper Technologies, Inc.,

      

6.25%, 9/1/19

      125        137  

3.00%, 12/15/20

      620        628  

3.85%, 12/15/25

      510        516  
  

 

 

     

 

 

  
        1,678  
     

 

 

  

Entertainment Content - 0.1%

      

Time Warner, Inc.,

      

4.85%, 7/15/45

      320        320  
  

 

 

     

 

 

  

Exploration & Production - 0.8%

      

Apache Corp.,

      

4.75%, 4/15/43

      595        613  

ConocoPhillips Co.,

      

4.95%, 3/15/26

      1,285        1,418  

Kerr-McGee Corp.,

      

6.95%, 7/1/24

      150        177  
  

 

 

     

 

 

  
        2,208  
     

 

 

  

Financial Services - 2.9%

      

FMR LLC,

      

6.45%, 11/15/39(1)

     675        823  

Goldman Sachs Group (The), Inc.,

      

2.63%, 1/31/19

      570        576  

5.75%, 1/24/22

      520        585  

4.00%, 3/3/24

      487        505  

3.75%, 5/22/25

      470        471  

3.75%, 2/25/26

      457        458  

6.45%, 5/1/36

      420        501  

6.75%, 10/1/37

      520        642  

4.80%, 7/8/44

      675        709  

KKR Group Finance Co. LLC,

      

6.38%, 9/29/20(1)

     105        118  

Morgan Stanley,

      

2.50%, 1/24/19

      345        349  

2.38%, 7/23/19

      310        311  

2.63%, 11/17/21

      290        286  

4.00%, 7/23/25

      7        7  

5.00%, 11/24/25

      260        278  

3.88%, 1/27/26

      695        702  

4.30%, 1/27/45

      326        325  
  

 

 

     

 

 

  
        7,646  
     

 

 

  

Food & Beverage - 1.0%

      

Anheuser-Busch InBev Finance, Inc.,

      

1.90%, 2/1/19

      360        361  

3.70%, 2/1/24

      95        98  

4.90%, 2/1/46

      535        578  

Beam Suntory, Inc.,

      

3.25%, 6/15/23

      390        381  

Diageo Investment Corp.,

      

2.88%, 5/11/22

      359        361  

 

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 34.1% continued

 

   

Food & Beverage - 1.0% continued

      

Molson Coors Brewing Co.,

      

5.00%, 5/1/42

    $ 315      $ 329  

PepsiCo, Inc.,

      

3.60%, 3/1/24

      135        141  

Tyson Foods, Inc.,

      

2.65%, 8/15/19

      300        303  

4.88%, 8/15/34

      195        199  
  

 

 

     

 

 

  
        2,751  
     

 

 

  

Hardware - 0.1%

      

NetApp, Inc.,

      

2.00%, 12/15/17

      227        228  
  

 

 

     

 

 

  

Health Care Facilities & Services - 0.7%

 

   

Cardinal Health, Inc.,

      

1.70%, 3/15/18

      483        482  

4.50%, 11/15/44

      635        629  

Laboratory Corp. of America Holdings,

 

   

2.63%, 2/1/20

      150        150  

McKesson Corp.,

      

4.88%, 3/15/44

      560        570  
  

 

 

     

 

 

  
        1,831  
     

 

 

  

Home Improvement - 0.3%

      

Stanley Black & Decker, Inc.,

      

1.62%, 11/17/18

      670        666  
  

 

 

     

 

 

  

Industrial Other - 0.1%

      

SBA Tower Trust,

      

2.93%, 12/11/17(1)

     195        195  

WW Grainger, Inc.,

      

4.60%, 6/15/45

      165        177  
  

 

 

     

 

 

  
        372  
     

 

 

  

Life Insurance - 0.6%

      

MetLife, Inc.,

      

6.40%, 12/15/36

      237        256  

Protective Life Corp.,

      

8.45%, 10/15/39

      510        676  

Prudential Financial, Inc.,

      

2.35%, 8/15/19

      195        197  

Reinsurance Group of America, Inc.,

      

4.70%, 9/15/23

      439        465  
  

 

 

     

 

 

  
        1,594  
     

 

 

  

Machinery Manufacturing - 0.2%

      

Ingersoll-Rand Global Holding Co. Ltd.,

 

   

6.88%, 8/15/18

      225        243  

Parker-Hannifin Corp.,

      

4.20%, 11/21/34

      345        353  
  

 

 

     

 

 

  
        596  
     

 

 

  

Managed Care - 1.3%

      

Aetna, Inc.,

      

3.20%, 6/15/26

      860        851  

Anthem, Inc.,

      

1.88%, 1/15/18

      100        100  

2.25%, 8/15/19

      515        514  

4.65%, 8/15/44

      505        511  

Humana, Inc.,

      

3.85%, 10/1/24

      395        405  

4.63%, 12/1/42

      245        235  

UnitedHealth Group, Inc.,

      

3.75%, 7/15/25

      350        362  

3.10%, 3/15/26

      505        498  
  

 

 

     

 

 

  
        3,476  
     

 

 

  

Mass Merchants - 0.1%

      

Wal-Mart Stores, Inc.,

      

3.30%, 4/22/24

      385        396  
  

 

 

     

 

 

  

Medical Equipment & Devices Manufacturing - 0.4%

 

   

Abbott Laboratories,

      

2.55%, 3/15/22

      885        865  

Zimmer Biomet Holdings, Inc.,

      

3.55%, 4/1/25

      285        278  
  

 

 

     

 

 

  
        1,143  
     

 

 

  

Metals & Mining - 0.1%

      

Commercial Metals Co.,

      

7.35%, 8/15/18

      130        138  
  

 

 

     

 

 

  

Oil & Gas Services & Equipment - 0.1%

 

   

Halliburton Co.,

      

3.80%, 11/15/25

      180        183  
  

 

 

     

 

 

  

Pharmaceuticals - 0.3%

      

AbbVie, Inc.,

      

4.50%, 5/14/35

      540        530  

Zoetis, Inc.,

      

4.70%, 2/1/43

      379        369  
  

 

 

     

 

 

  
        899  
     

 

 

  

 

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 34.1% continued

 

   

Pipeline - 1.3%

      

Boardwalk Pipelines L.P.,

      

5.95%, 6/1/26

    $ 175      $ 190  

Energy Transfer Partners L.P.,

      

3.60%, 2/1/23

      320        315  

Enterprise Products Operating LLC,

      

6.30%, 9/15/17

      225        232  

EQT Midstream Partners L.P.,

      

4.13%, 12/1/26

      325        317  

Kinder Morgan Energy Partners L.P.,

      

5.95%, 2/15/18

      430        448  

Kinder Morgan, Inc.,

      

5.05%, 2/15/46

      335        332  

Plains All American Pipeline L.P./PAA Finance Corp.,

      

4.50%, 12/15/26

      900        913  

Sunoco Logistics Partners Operations L.P.,

      

4.25%, 4/1/24

      235        237  

3.90%, 7/15/26

      620        600  
  

 

 

     

 

 

  
        3,584  
     

 

 

  

Power Generation - 0.2%

      

Exelon Generation Co. LLC,

      

2.95%, 1/15/20

      220        222  

4.00%, 10/1/20

      425        442  
  

 

 

     

 

 

  
        664  
     

 

 

  

Property & Casualty Insurance - 0.3%

      

American International Group, Inc.,

      

3.38%, 8/15/20

      350        360  

Berkshire Hathaway, Inc.,

      

2.20%, 3/15/21

      160        160  

Chubb INA Holdings, Inc.,

      

2.30%, 11/3/20

      200        200  
  

 

 

     

 

 

  
        720  
     

 

 

  

Publishing & Broadcasting - 0.3%

      

21st Century Fox America, Inc.,

      

7.25%, 5/18/18

      215        230  

NBCUniversal Enterprise, Inc.,

      

5.25%, 3/19/21(1) (3)

      495        520  
  

 

 

     

 

 

  
        750  
     

 

 

  

Railroad - 0.7%

      

Burlington Northern Santa Fe LLC,

      

3.05%, 3/15/22

      215        220  

3.65%, 9/1/25

      160        168  

4.55%, 9/1/44

      295        314  

CSX Corp.,

      

4.75%, 5/30/42

      670        697  

3.95%, 5/1/50

      245        220  

Union Pacific Corp.,

      

3.38%, 2/1/35

      175        166  
  

 

 

     

 

 

  
        1,785  
     

 

 

  

Real Estate - 1.3%

      

American Tower Corp.,

      

3.13%, 1/15/27

      550        508  

EPR Properties,

      

4.50%, 4/1/25

      600        593  

HCP, Inc.,

      

3.88%, 8/15/24

      235        235  

Host Hotels & Resorts L.P.,

      

4.00%, 6/15/25

      150        148  

Omega Healthcare Investors, Inc.,

      

5.25%, 1/15/26

      410        421  

Simon Property Group L.P.,

      

2.35%, 1/30/22

      450        444  

Ventas Realty L.P.,

      

3.25%, 10/15/26

      305        289  

5.70%, 9/30/43

      230        258  

WEA Finance LLC/Westfield UK & Europe Finance PLC,

      

1.75%, 9/15/17(1)

     210        210  

Welltower, Inc.,

      

4.25%, 4/1/26

      435        451  
  

 

 

     

 

 

  
        3,557  
     

 

 

  

Refining & Marketing - 0.2%

      

Phillips 66,

      

4.65%, 11/15/34

      395        411  
  

 

 

     

 

 

  

Restaurants - 0.4%

      

McDonald’s Corp.,

      

2.10%, 12/7/18

      355        357  

2.75%, 12/9/20

      335        339  

4.70%, 12/9/35

      265        280  
  

 

 

     

 

 

  
        976  
     

 

 

  

Retail - Consumer Discretionary - 1.3%

      

Amazon.com, Inc.,

      

3.80%, 12/5/24

      690        725  

4.80%, 12/5/34

      520        572  

 

 

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 34.1% continued

 

   

Retail - Consumer Discretionary - 1.3% continued

 

   

ERAC USA Finance LLC,

      

3.85%, 11/15/24(1)

   $ 125      $ 127  

7.00%, 10/15/37(1)

     690        874  

4.50%, 2/15/45(1)

     85        81  

Home Depot (The), Inc.,

      

2.00%, 4/1/21

      700        695  

TJX (The) Cos., Inc.,

      

2.25%, 9/15/26

      405        373  
  

 

 

     

 

 

  
        3,447  
     

 

 

  

Retail - Consumer Staples - 0.1%

      

Bunge Ltd. Finance Corp.,

      

8.50%, 6/15/19

      115        132  

Sysco Corp.,

      

3.30%, 7/15/26

      95        93  
  

 

 

     

 

 

  
        225  
     

 

 

  

Semiconductors - 0.2%

      

KLA-Tencor Corp.,

      

4.13%, 11/1/21

      375        391  

5.65%, 11/1/34

      135        141  
  

 

 

     

 

 

  
        532  
     

 

 

  

Software & Services - 0.4%

      

CA, Inc.,

      

2.88%, 8/15/18

      205        208  

International Business Machines Corp.,

      

1.80%, 5/17/19

      365        365  

Oracle Corp.,

      

2.40%, 9/15/23

      445        431  
  

 

 

     

 

 

  
        1,004  
     

 

 

  

Supermarkets & Pharmacies - 0.9%

      

CVS Health Corp.,

      

2.25%, 8/12/19

      354        356  

2.75%, 12/1/22

      475        468  

5.13%, 7/20/45

      290        323  

Walgreens Boots Alliance, Inc.,

      

2.60%, 6/1/21

      495        492  

3.30%, 11/18/21

      430        438  

3.80%, 11/18/24

      245        249  
  

 

 

     

 

 

  
        2,326  
     

 

 

  

Tobacco - 0.8%

      

Altria Group, Inc.,

      

5.38%, 1/31/44

      655        757  

Reynolds American, Inc.,

      

4.45%, 6/12/25

      480        507  

5.85%, 8/15/45

      355        420  

RJ Reynolds Tobacco Co.,

      

8.13%, 6/23/19

      430        490  
  

 

 

     

 

 

  
        2,174  
     

 

 

  

Transportation & Logistics - 0.3%

      

FedEx Corp.,

      

4.75%, 11/15/45

      785        813  
  

 

 

     

 

 

  

Utilities - 1.2%

      

Berkshire Hathaway Energy Co.,

      

3.50%, 2/1/25

      755        770  

CMS Energy Corp.,

      

8.75%, 6/15/19

      220        254  

Dominion Gas Holdings LLC,

      

4.60%, 12/15/44

      255        254  

Dominion Resources, Inc.,

      

2.50%, 12/1/19

      280        283  

Duke Energy Florida LLC,

      

3.40%, 10/1/46

      225        200  

Exelon Corp.,

      

5.63%, 6/15/35

      170        188  

Jersey Central Power & Light Co.,

      

4.70%, 4/1/24(1)

     225        239  

NextEra Energy Capital Holdings, Inc.,

      

2.40%, 9/15/19

      330        332  

Southern Power Co.,

      

4.95%, 12/15/46

      570        556  
  

 

 

     

 

 

  
        3,076  
     

 

 

  

Waste & Environment Services & Equipment - 0.2%

 

   

Waste Management, Inc.,

      

3.13%, 3/1/25

      615        616  
  

 

 

     

 

 

  

Wireless Telecommunications Services - 1.8%

 

   

AT&T, Inc.,

      

3.00%, 6/30/22

      745        731  

4.13%, 2/17/26

      665        673  

4.50%, 5/15/35

      255        247  

4.80%, 6/15/44

      870        822  

 

 

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 34.1% continued

 

   

Wireless Telecommunications Services - 1.8% continued

 

   

Verizon Communications, Inc.,

      

3.50%, 11/1/21

    $ 735      $ 759  

4.15%, 3/15/24

      430        449  

5.01%, 8/21/54

      1,166        1,160  
  

 

 

     

 

 

  
        4,841  
     

 

 

  

Total Corporate Bonds
(Cost $91,657)

         90,929  
     

 

 

  

FOREIGN ISSUER BONDS - 5.8%

 

   

Banks - 1.0%

      

Australia & New Zealand Banking Group Ltd.,

      

4.50%, 3/19/24(1)

     460        471  

Commonwealth Bank of Australia,

      

1.75%, 11/7/19(1)

     815        808  

Credit Suisse A.G.,

      

5.40%, 1/14/20

      345        370  

3.00%, 10/29/21

      280        283  

Lloyds Bank PLC,

      

6.50%, 9/14/20(1)

     215        238  

Lloyds Banking Group PLC,

      

4.50%, 11/4/24

      50        51  

5.30%, 12/1/45

      150        155  

Toronto-Dominion Bank (The),

      

3.63%, 9/15/31(4)

     335        327  
  

 

 

     

 

 

  
        2,703  
     

 

 

  

Chemicals - 0.3%

      

Agrium, Inc.,

      

4.90%, 6/1/43

      170        169  

LYB International Finance B.V.,

      

4.00%, 7/15/23

      165        172  

4.88%, 3/15/44

      70        73  

LyondellBasell Industries N.V.,

      

5.00%, 4/15/19

      215        227  

Potash Corp. of Saskatchewan, Inc.,

      

3.25%, 12/1/17

      115        117  
  

 

 

     

 

 

  
        758  
     

 

 

  

Commercial Finance - 0.3%

      

AerCap Ireland Capital Ltd./AerCap Global Aviation Trust,

      

4.50%, 5/15/21

      530        549  

5.00%, 10/1/21

      370        389  
  

 

 

     

 

 

  
        938  
     

 

 

  

Diversified Banks - 0.9%

      

BNP Paribas S.A.,

      

2.38%, 5/21/20

      50        50  

4.38%, 9/28/25(1)

     455        452  

HSBC Holdings PLC,

      

5.63%, 1/17/20(2)

     445        439  

5.25%, 3/14/44

      695        744  

Nordea Bank AB,

      

5.50%, 9/23/19(1) (2)

      305        303  

Royal Bank of Canada,

      

4.65%, 1/27/26

      415        442  
  

 

 

     

 

 

  
        2,430  
     

 

 

  

Electrical Equipment Manufacturing - 0.5%

      

Siemens Financieringsmaatschappij N.V.,

      

1.70%, 9/15/21(1)

     655        629  

2.00%, 9/15/23(1)

     590        557  

Tyco Electronics Group S.A.,

      

6.55%, 10/1/17

      180        187  
  

 

 

     

 

 

  
        1,373  
     

 

 

  

Exploration & Production - 0.3%

      

Canadian Natural Resources Ltd.,

      

6.75%, 2/1/39

      730        852  
  

 

 

     

 

 

  

Financial Services - 0.2%

      

UBS Group Funding Jersey Ltd.,

      

2.95%, 9/24/20(1)

     460        460  
  

 

 

     

 

 

  

Food & Beverage - 0.3%

      

Danone S.A.,

      

2.59%, 11/2/23(1)

     550        530  

Suntory Holdings Ltd.,

      

2.55%, 9/29/19(1)

     360        362  
  

 

 

     

 

 

  
        892  
     

 

 

  

Integrated Oils - 1.2%

      

BP Capital Markets PLC,

      

1.38%, 11/6/17

      365        365  

3.54%, 11/4/24

      480        487  

3.02%, 1/16/27

      415        400  

 

 

NORTHERN FUNDS QUARTERLY REPORT     7     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 5.8% continued

 

   

Integrated Oils - 1.2% continued

      

Petro-Canada,

      

6.05%, 5/15/18

    $ 345      $ 365  

Petroleos Mexicanos,

      

5.38%, 3/13/22(1) (5)

      1,060        1,085  

Shell International Finance B.V.,

      

2.13%, 5/11/20

      265        265  

Suncor Energy, Inc.,

      

3.60%, 12/1/24

      365        374  
  

 

 

     

 

 

  
        3,341  
     

 

 

  

Metals & Mining - 0.3%

      

Vale Overseas Ltd.,

      

4.38%, 1/11/22

      725        712  
  

 

 

     

 

 

  

Pharmaceuticals - 0.3%

      

Actavis Funding SCS,

      

4.55%, 3/15/35

      215        213  

Teva Pharmaceutical Finance Netherlands III B.V.,

      

4.10%, 10/1/46

      545        467  
  

 

 

     

 

 

  
        680  
     

 

 

  

Property & Casualty Insurance - 0.2%

      

Allied World Assurance Co. Holdings Ltd.,

      

5.50%, 11/15/20

      384        414  
  

 

 

     

 

 

  

Total Foreign Issuer Bonds
(Cost $15,580)

         15,553  
     

 

 

  

U.S. GOVERNMENT AGENCIES - 21.7%(6)

     

Fannie Mae - 21.1%

      

Pool #535714

      

7.50%, 1/1/31

      8        9  

Pool #555599

      

7.00%, 4/1/33

      18        20  

Pool #656035

      

7.50%, 9/1/32

      2        2  

Pool #712130

      

7.00%, 6/1/33

      11        13  

Pool #845182

      

5.50%, 11/1/35

      17        18  

Pool #890009

      

5.50%, 9/1/36

      94        105  

Pool #890384

      

4.50%, 10/1/41

      19        20  

Pool #893082

      

3.15%, 9/1/36(4)

     119        126  

Pool #932638

      

5.00%, 3/1/40

      266        294  

Pool #AA7583

      

4.50%, 6/1/39

      21        22  

Pool #AB1470

      

4.50%, 9/1/40

      274        296  

Pool #AB3114

      

5.00%, 6/1/41

      208        227  

Pool #AB9522

      

3.50%, 5/1/43

      1,380        1,423  

Pool #AC6118

      

4.50%, 11/1/39

      268        289  

Pool #AC9581

      

5.50%, 1/1/40

      149        168  

Pool #AD0915

      

5.50%, 12/1/38

      152        171  

Pool #AD1645

      

5.00%, 3/1/40

      29        32  

Pool #AD6929

      

5.00%, 6/1/40

      185        202  

Pool #AD7775

      

4.50%, 8/1/40

      549        595  

Pool #AH1507

      

4.50%, 12/1/40

      350        380  

Pool #AH9109

      

4.50%, 4/1/41

      22        24  

Pool #AI8193

      

4.50%, 8/1/41

      1,069        1,150  

Pool #AL4408

      

4.50%, 11/1/43

      1,489        1,617  

Pool #AL4908

      

4.00%, 2/1/44

      384        407  

Pool #AL5686

      

4.00%, 9/1/44

      1,062        1,123  

Pool #AL8352

      

3.00%, 10/1/44

      4,290        4,289  

Pool #AL9069

      

3.00%, 3/1/44

      5,455        5,453  

Pool #AQ9333

      

4.00%, 1/1/43

      1,005        1,064  

 

FIXED INCOME FUNDS    8     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 21.7%(6) continued

 

Fannie Mae - 21.1% continued

      

Pool #AS3473

      

4.00%, 10/1/44

    $ 2,221      $ 2,335  

Pool #AS3655

      

4.50%, 10/1/44

      923        993  

Pool #AS3797

      

5.00%, 11/1/44

      851        929  

Pool #AS5722

      

3.50%, 9/1/45

      427        438  

Pool #AS6075

      

4.00%, 10/1/45

      2,202        2,316  

Pool #AS6184

      

3.50%, 11/1/45

      3,367        3,469  

Pool #AS6520

      

3.50%, 1/1/46

      2,437        2,499  

Pool #AS6730

      

3.50%, 2/1/46

      2,151        2,206  

Pool #AS7375

      

3.00%, 6/1/46

      1,220        1,213  

Pool #AS7568

      

4.50%, 7/1/46

      3,534        3,809  

Pool #AU7032

      

4.00%, 11/1/43

      3,718        3,936  

Pool #AW2706

      

4.00%, 4/1/44

      2,173        2,286  

Pool #AW6233

      

4.50%, 6/1/44

      964        1,046  

Pool #AZ7903

      

4.00%, 6/1/41

      1,426        1,505  

Pool #BC0326

      

3.50%, 12/1/45

      2,298        2,357  

Pool #BC4898

      

3.50%, 2/1/46

      2,379        2,440  

Pool #MA2522

      

3.50%, 2/1/46

      1,593        1,634  

Pool #MA2642

      

3.50%, 6/1/46

      1,308        1,343  
  

 

 

     

 

 

  
        56,293  
     

 

 

  

Freddie Mac - 0.2%

      

Pool #1B3575

      

5.96%, 9/1/37(4)

     16        16  

Pool #1G2296

      

6.12%, 11/1/37(4)

     103        110  

Pool #1J0365

      

3.02%, 4/1/37(4)

     132        139  

Pool #1J2840

      

3.15%, 9/1/37(4)

     173        184  
  

 

 

     

 

 

  
        449  
     

 

 

  

Freddie Mac Gold - 0.4%

      

Pool #A65182

      

6.50%, 9/1/37

      293        337  

Pool #C02790

      

6.50%, 4/1/37

      154        179  

Pool #C02838

      

5.50%, 5/1/37

      139        155  

Pool #C03517

      

4.50%, 9/1/40

      207        224  

Pool #G01954

      

5.00%, 11/1/35

      132        144  
  

 

 

     

 

 

  
        1,039  
     

 

 

  

Government National Mortgage Association I - 0.0%

      

Pool #604183

      

5.50%, 4/15/33

      5        6  

Pool #633627

      

5.50%, 9/15/34

      6        7  
  

 

 

     

 

 

  
        13  
     

 

 

  

Total U.S. Government Agencies
(Cost $58,661)

         57,794  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 18.7%

      

U.S. Treasury Bonds - 0.8%

      

2.25%, 8/15/46

      2,460        2,069  
  

 

 

     

 

 

  

U.S. Treasury Inflation Indexed Bonds - 1.1%

      

1.00%, 2/15/46

      2,785        2,853  
  

 

 

     

 

 

  

U.S. Treasury Inflation Indexed Notes - 4.1%

      

0.13%, 4/15/19

      2,725        2,846  

0.13%, 4/15/21

      3,900        4,000  

0.13%, 7/15/26

      4,170        4,066  
  

 

 

     

 

 

  
        10,912  
     

 

 

  

U.S. Treasury Notes - 12.7%

      

1.25%, 12/31/18

      9,165        9,174  

1.38%, 12/15/19

      9,070        9,049  

 

NORTHERN FUNDS QUARTERLY REPORT     9     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CORE BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 18.7% continued

 

U.S. Treasury Notes - 12.7% continued

 

   

2.00%, 12/31/21

    $ 14,220      $ 14,272  

2.25%, 12/31/23

      15        15  

2.00%, 11/15/26

      1,470        1,414  
  

 

 

     

 

 

  
        33,924  
     

 

 

  

Total U.S. Government Obligations

(Cost $49,914)

         49,758  
     

 

 

  

MUNICIPAL BONDS - 0.3%

      

Alabama - 0.3%

      

Alabama Economic Settlement Authority Taxable Revenue Bonds, Series B,

      

3.16%, 9/15/25

      395        397  

4.26%, 9/15/32

      340        350  
  

 

 

     

 

 

  
        747  
     

 

 

  

Total Municipal Bonds

(Cost $735)

         747  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 21.8%

 

   

Northern Institutional Funds - Government Assets Portfolio, 0.32%(7) (8)

      58,109,086      $ 58,109  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $58,109)

         58,109  
     

 

 

  

Total Investments - 108.5%

(Cost $291,182)

         289,306  
     

 

 

  

Liabilities less Other Assets - (8.5%)

 

      (22,633 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 266,673  
     

 

 

  

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the perpetual call date.
(3) Perpetual call security.
(4) Variable rate security. Rate as of December 31, 2016 is disclosed.
(5) Restricted security that has been deemed illiquid. At December 31, 2016, the value of this restricted illiquid security amounted to approximately $1,085,000 or 0.4% of net assets. Additional information on this restricted illiquid security is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

Petroleos Mexicanos,

      

5.38%, 3/13/22

      12/6/16      $ 1,054  

 

(6) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(7) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(8) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      17.2 % 

U.S. Agency

      20.0  

AAA

      5.7  

AA

      1.5  

A

      12.1  

BBB

      23.1  

BB

      0.3  

Cash Equivalents

      20.1  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

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

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

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

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

 

FIXED INCOME FUNDS     10     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Asset-Backed Securities(1)

   $ —        $ 16,416      $ —        $ 16,416  

Corporate Bonds(1)

     —          90,929        —          90,929  

Foreign Issuer Bonds(1)

     —          15,553        —          15,553  

U.S. Government Agencies(1)

     —          57,794        —          57,794  

U.S. Government Obligations(1)

     —          49,758        —          49,758  

Municipal Bonds(1)

     —          747        —          747  

Investment Companies

      58,109        —          —          58,109  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 58,109      $ 231,197      $ —        $ 289,306  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 291,238  
  

 

 

  

Gross tax appreciation of investments

    $ 1,536  

Gross tax depreciation of investments

      (3,468 ) 
  

 

 

  

Net tax depreciation of investments

    $ (1,932 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S		      DIVIDEND
INCOME
(000S)		      VALUE,
END OF
PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 37,330      $ 469,151      $ 448,372      $ 65      $ 58,109  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

Fannie Mae - Federal National Mortgage Association

Freddie Mac - Federal Home Loan Mortgage Corporation

 

NORTHERN FUNDS QUARTERLY REPORT     11     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

FIXED INCOME FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 6.2%

      

Commercial Mortgage-Backed Securities - 4.1%

      

Citigroup Commercial Mortgage Trust, Series 2013-GC11, Class A2

      

1.99%, 4/10/46

    $ 1,620      $ 1,626  

Commercial Mortgage Trust, Series 2013-CR9, Class A2

      

3.06%, 7/10/45

      2,090        2,122  

Commercial Mortgage Trust, Series 2014-CR16, Class A2

      

3.04%, 4/10/47

      155        158  

Commercial Mortgage Trust, Series 2015-CR23, Class A2

      

2.85%, 5/10/48

      690        704  

Commercial Mortgage Trust, Series 2015-PC1, Class A2

      

3.15%, 7/10/50

      1,030        1,057  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C14, Class A2

      

3.02%, 8/15/46

      13,859        14,150  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A2

      

3.05%, 4/15/47

      12,990        13,298  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C23, Class A2

      

3.18%, 9/15/47

      840        865  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A2

      

2.92%, 2/15/47

      1,715        1,748  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, Class A2

      

2.85%, 6/15/47

      3,880        3,954  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class A2

      

3.10%, 12/15/47

      2,485        2,549  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C23, Class A2

      

2.98%, 7/15/50

      1,575        1,610  

Wells Fargo Commercial Mortgage Trust, Series 2015-NXS1, Class A2

      

2.63%, 5/15/48

      300        304  

WFRBS Commercial Mortgage Trust, Series 2013-UBS1, Class A2

      

2.93%, 3/15/46

      6,925        7,057  

WFRBS Commercial Mortgage Trust, Series 2014-C20, Class A2

      

3.04%, 5/15/47

      915        937  
  

 

 

     

 

 

  
        52,139  
     

 

 

  

Credit Card - 1.8%

      

Citibank Credit Card Issuance Trust, Series 2016-A1, Class A1

      

1.75%, 11/19/21

      11,500        11,449  

Discover Card Execution Note Trust, Series 2016-A4, Class A4

      

1.39%, 3/15/22

      11,910        11,774  
  

 

 

     

 

 

  
        23,223  
     

 

 

  

Other - 0.3%

      

CNH Equipment Trust, Series 2016-C, Class A3

      

1.44%, 12/15/21

      3,465        3,431  
  

 

 

     

 

 

  

Total Asset-Backed Securities

(Cost $79,155)

         78,793  
     

 

 

  

CORPORATE BONDS - 42.8%

      

Aerospace & Defense - 0.5%

      

Lockheed Martin Corp.,

      

2.50%, 11/23/20

      1,115        1,124  

3.80%, 3/1/45

      1,760        1,667  

TransDigm, Inc.,

      

6.00%, 7/15/22

      2,000        2,080  

United Technologies Corp.,

      

3.75%, 11/1/46

      1,910        1,818  
  

 

 

     

 

 

  
        6,689  
     

 

 

  

Auto Parts Manufacturing - 0.4%

      

American Axle & Manufacturing, Inc.,

      

6.25%, 3/15/21

      3,330        3,438  

Delphi Corp.,

      

4.15%, 3/15/24

      990        1,021  
  

 

 

     

 

 

  
        4,459  
     

 

 

  

Automobiles Manufacturing - 1.2%

      

Ford Motor Co.,

      

7.45%, 7/16/31

      1,580        1,983  

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 42.8% continued

 

Automobiles Manufacturing - 1.2% continued

 

   

Ford Motor Credit Co. LLC,

      

3.10%, 5/4/23

    $ 1,705      $ 1,647  

3.66%, 9/8/24

      3,540        3,454  

General Motors Co.,

      

4.88%, 10/2/23

      105        110  

6.25%, 10/2/43

      2,715        3,001  

General Motors Financial Co., Inc.,

      

4.38%, 9/25/21

      1,631        1,692  

4.25%, 5/15/23

      3,555        3,598  
  

 

 

     

 

 

  
        15,485  
     

 

 

  

Banks - 0.6%

      

PNC Financial Services Group (The), Inc.,

      

4.85%, 6/1/23(1)

     3,495        3,356  

US Bancorp,

      

3.10%, 4/27/26

      2,060        2,006  

Wells Fargo Bank N.A.,

      

2.15%, 12/6/19

      2,370        2,368  
  

 

 

     

 

 

  
        7,730  
     

 

 

  

Biotechnology - 1.0%

      

Amgen, Inc.,

      

4.40%, 5/1/45

      1,680        1,610  

Biogen, Inc.,

      

2.90%, 9/15/20

      1,310        1,327  

Celgene Corp.,

      

5.25%, 8/15/43

      2,510        2,648  

Gilead Sciences, Inc.,

      

4.40%, 12/1/21

      1,900        2,044  

5.65%, 12/1/41

      1,830        2,115  

Roche Holdings, Inc.,

      

1.75%, 1/28/22(2)

     2,825        2,715  
  

 

 

     

 

 

  
        12,459  
     

 

 

  

Cable & Satellite - 1.1%

      

CCO Holdings LLC/CCO Holdings Capital Corp.,

      

5.25%, 3/15/21

      2,465        2,539  

Charter Communications Operating LLC/Charter Communications Operating Capital,

      

4.46%, 7/23/22

      3,270        3,417  

6.48%, 10/23/45

      2,765        3,196  

Comcast Corp.,

      

3.38%, 2/15/25

      2,525        2,552  

6.40%, 5/15/38

      1,540        1,972  
  

 

 

     

 

 

  
        13,676  
     

 

 

  

Chemicals - 0.7%

      

CF Industries, Inc.,

      

6.88%, 5/1/18

      2,000        2,105  

5.15%, 3/15/34

      1,520        1,292  

Eastman Chemical Co.,

      

3.60%, 8/15/22

      295        302  

3.80%, 3/15/25

      1,119        1,129  

4.65%, 10/15/44

      2,396        2,376  

Tronox Finance LLC,

      

7.50%, 3/15/22(2)

     2,125        1,982  
  

 

 

     

 

 

  
        9,186  
     

 

 

  

Commercial Finance - 0.2%

      

International Lease Finance Corp.,

      

6.25%, 5/15/19

      2,000        2,150  
  

 

 

     

 

 

  

Communications Equipment - 0.2%

      

Apple, Inc.,

      

2.70%, 5/13/22

      1,285        1,293  

4.45%, 5/6/44

      645        668  

3.85%, 8/4/46

      1,120        1,073  
  

 

 

     

 

 

  
        3,034  
     

 

 

  

Consumer Finance - 0.3%

      

American Express Credit Corp.,

      

2.38%, 5/26/20

      1,500        1,499  

Capital One Financial Corp.,

      

4.20%, 10/29/25

      2,025        2,032  
  

 

 

     

 

 

  
        3,531  
     

 

 

  

Consumer Services - 0.8%

      

ADT (The) Corp.,

      

4.13%, 6/15/23

      1,305        1,246  

APX Group, Inc.,

      

6.38%, 12/1/19

      2,500        2,572  

Ecolab, Inc.,

      

3.70%, 11/1/46

      2,185        1,986  

Prime Security Services Borrower LLC/Prime Finance, Inc.,

      

9.25%, 5/15/23(2)

     1,350        1,470  

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 42.8% continued

 

   

Consumer Services - 0.8% continued

      

Service Corp. International,

      

4.50%, 11/15/20

    $ 1,186      $ 1,207  

5.38%, 1/15/22

      1,600        1,664  
  

 

 

     

 

 

  
        10,145  
     

 

 

  

Containers & Packaging - 1.8%

      

Crown Americas LLC/Crown Americas Capital Corp. IV,

      

4.50%, 1/15/23

      2,750        2,805  

Crown Americas LLC/Crown Americas Capital Corp. V,

      

4.25%, 9/30/26(2)

     3,735        3,520  

Graphic Packaging International, Inc.,

      

4.75%, 4/15/21

      1,970        2,069  

International Paper Co.,

      

4.40%, 8/15/47

      3,230        3,052  

Plastipak Holdings, Inc.,

      

6.50%, 10/1/21(2)

     2,500        2,613  

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) S.A.,

      

5.75%, 10/15/20

      2,250        2,320  

8.25%, 2/15/21

      706        729  

5.13%, 7/15/23(2)

     2,700        2,757  

Sealed Air Corp.,

      

4.88%, 12/1/22(2)

     2,500        2,569  
  

 

 

     

 

 

  
        22,434  
     

 

 

  

Diversified Banks - 6.0%

      

Bank of America Corp.,

      

5.70%, 1/24/22

      255        286  

4.00%, 1/22/25

      3,695        3,700  

4.45%, 3/3/26

      1,948        2,007  

6.11%, 1/29/37

      3,320        3,892  

5.00%, 1/21/44

      3,409        3,733  

4.75%, 4/21/45

      135        137  

Citigroup, Inc.,

      

2.05%, 12/7/18

      1,115        1,115  

2.90%, 12/8/21

      2,925        2,917  

4.50%, 1/14/22

      1,720        1,834  

4.05%, 7/30/22

      2,515        2,603  

6.30%, 5/15/24(1)

     2,080        2,062  

3.88%, 3/26/25

      2,790        2,772  

4.60%, 3/9/26

      1,099        1,136  

3.40%, 5/1/26

      2,192        2,130  

4.45%, 9/29/27

      3,095        3,144  

4.13%, 7/25/28

      2,700        2,667  

6.68%, 9/13/43

      3,787        4,800  

JPMorgan Chase & Co.,

      

7.90%, 4/30/18(1)

     3,015        3,122  

6.30%, 4/23/19

      2,245        2,453  

5.00%, 7/1/19(1)

     3,185        3,177  

5.30%, 5/1/20(1)

     2,415        2,465  

2.55%, 3/1/21

      1,105        1,101  

3.90%, 7/15/25

      2,460        2,530  

4.25%, 10/1/27

      2,520        2,589  

4.95%, 6/1/45

      325        346  

Wells Fargo & Co.,

      

7.98%, 3/15/18(1)

     2,575        2,691  

2.15%, 1/30/20

      1,965        1,956  

2.50%, 3/4/21

      1,400        1,390  

3.50%, 3/8/22

      965        993  

3.00%, 4/22/26

      2,880        2,748  

4.30%, 7/22/27

      478        492  

3.90%, 5/1/45

      3,666        3,477  

4.75%, 12/7/46

      3,145        3,192  
  

 

 

     

 

 

  
        75,657  
     

 

 

  

Electrical Equipment Manufacturing - 0.7%

 

   

Fortive Corp.,

      

3.15%, 6/15/26(2)

     2,855        2,814  

Keysight Technologies, Inc.,

      

3.30%, 10/30/19

      1,480        1,503  

Roper Technologies, Inc.,

      

6.25%, 9/1/19

      1,750        1,925  

3.85%, 12/15/25

      2,475        2,505  
  

 

 

     

 

 

  
        8,747  
     

 

 

  

Entertainment Content - 0.1%

      

Time Warner, Inc.,

      

4.85%, 7/15/45

      1,635        1,637  
  

 

 

     

 

 

  

Entertainment Resources - 0.2%

      

National CineMedia LLC,

      

5.75%, 8/15/26

      3,078        3,124  
  

 

 

     

 

 

  

Exploration & Production - 1.8%

      

Apache Corp.,

      

4.75%, 4/15/43

      2,835        2,920  

Kerr-McGee Corp.,

      

6.95%, 7/1/24

      1,005        1,186  

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 42.8% continued

 

   

Exploration & Production - 1.8% continued

 

   

Murphy Oil Corp.,

      

6.88%, 8/15/24

    $ 3,270      $ 3,482  

Newfield Exploration Co.,

      

5.38%, 1/1/26

      1,920        1,958  

QEP Resources, Inc.,

      

6.88%, 3/1/21

      3,000        3,187  

SM Energy Co.,

      

5.63%, 6/1/25

      3,565        3,440  

6.75%, 9/15/26

      890        917  

Southwestern Energy Co.,

      

6.70%, 1/23/25

      2,655        2,715  

WPX Energy, Inc.,

      

5.25%, 9/15/24

      2,680        2,600  
  

 

 

     

 

 

  
        22,405  
     

 

 

  

Financial Services - 3.7%

      

Ares Capital Corp.,

      

4.88%, 11/30/18

      2,561        2,655  

Charles Schwab (The) Corp.,

      

4.63%, 3/1/22(1)

     3,310        3,111  

FMR LLC,

      

6.45%, 11/15/39(2)

     3,915        4,773  

Goldman Sachs Group (The), Inc.,

      

2.63%, 1/31/19

      1,865        1,885  

5.38%, 5/10/20(1)

     1,910        1,929  

5.75%, 1/24/22

      2,140        2,406  

4.00%, 3/3/24

      1,880        1,950  

3.75%, 5/22/25

      2,395        2,401  

3.75%, 2/25/26

      1,340        1,344  

6.45%, 5/1/36

      2,841        3,386  

6.75%, 10/1/37

      2,782        3,435  

4.80%, 7/8/44

      3,650        3,832  

KKR Group Finance Co. LLC,

      

6.38%, 9/29/20(2)

     2,195        2,472  

Morgan Stanley,

      

2.38%, 7/23/19

      1,450        1,454  

2.63%, 11/17/21

      1,370        1,354  

5.00%, 11/24/25

      1,875        2,003  

3.88%, 1/27/26

      1,565        1,581  

4.30%, 1/27/45

      2,654        2,645  

Prospect Capital Corp.,

      

5.88%, 3/15/23

      1,450        1,481  
  

 

 

     

 

 

  
        46,097  
     

 

 

  

Food & Beverage - 1.3%

      

Anheuser-Busch InBev Finance, Inc.,

      

1.90%, 2/1/19

      1,490        1,492  

4.90%, 2/1/46

      1,965        2,124  

Beam Suntory, Inc.,

      

3.25%, 6/15/23

      2,150        2,103  

Diageo Investment Corp.,

      

2.88%, 5/11/22

      1,875        1,886  

Lamb Weston Holdings, Inc.,

      

4.88%, 11/1/26(2)

     1,710        1,692  

Molson Coors Brewing Co.,

      

5.00%, 5/1/42

      1,608        1,681  

Smithfield Foods, Inc.,

      

6.63%, 8/15/22

      3,020        3,182  

Tyson Foods, Inc.,

      

2.65%, 8/15/19

      1,370        1,383  

4.88%, 8/15/34

      1,210        1,233  
  

 

 

     

 

 

  
        16,776  
     

 

 

  

Health Care Facilities & Services - 0.6%

 

   

Cardinal Health, Inc.,

      

1.70%, 3/15/18

      1,140        1,139  

4.50%, 11/15/44

      2,245        2,226  

Laboratory Corp. of America Holdings,

 

   

2.63%, 2/1/20

      715        714  

McKesson Corp.,

      

4.88%, 3/15/44

      2,855        2,904  
  

 

 

     

 

 

  
        6,983  
     

 

 

  

Home Improvement - 0.2%

      

ServiceMaster (The) Co. LLC,

      

5.13%, 11/15/24(2)

     2,300        2,334  

Stanley Black & Decker, Inc.,

      

1.62%, 11/17/18

      50        50  
  

 

 

     

 

 

  
        2,384  
     

 

 

  

Homebuilders - 0.4%

      

Lennar Corp.,

      

4.13%, 12/1/18

      2,000        2,045  

4.75%, 5/30/25

      2,500        2,438  
  

 

 

     

 

 

  
        4,483  
     

 

 

  

Industrial Other - 0.6%

      

Herc Rentals, Inc.,

      

7.75%, 6/1/24(2) (3)

      2,840        2,985  

SBA Tower Trust,

      

2.93%, 12/11/17(2)

     1,865        1,867  

 

FIXED INCOME FUNDS    4     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 42.8% continued

 

   

Industrial Other - 0.6% continued

      

United Rentals North America, Inc.,

      

7.63%, 4/15/22

    $ 719      $ 757  

6.13%, 6/15/23

      1,250        1,325  

WW Grainger, Inc.,

      

4.60%, 6/15/45

      1,000        1,071  
  

 

 

     

 

 

  
        8,005  
     

 

 

  

Life Insurance - 0.7%

      

MetLife, Inc.,

      

6.40%, 12/15/36

      746        806  

Protective Life Corp.,

      

8.45%, 10/15/39

      4,725        6,259  

Prudential Financial, Inc.,

      

2.35%, 8/15/19

      1,775        1,792  
  

 

 

     

 

 

  
        8,857  
     

 

 

  

Machinery Manufacturing - 0.2%

      

Parker-Hannifin Corp.,

      

4.20%, 11/21/34

      2,000        2,044  
  

 

 

     

 

 

  

Managed Care - 1.5%

      

Aetna, Inc.,

      

3.20%, 6/15/26

      3,595        3,556  

4.25%, 6/15/36

      1,950        1,955  

Anthem, Inc.,

      

1.88%, 1/15/18

      1,290        1,291  

3.50%, 8/15/24

      1,500        1,496  

4.65%, 8/15/44

      2,720        2,753  

Centene Corp.,

      

4.75%, 1/15/25

      2,280        2,226  

Humana, Inc.,

      

3.85%, 10/1/24

      2,685        2,749  

4.63%, 12/1/42

      1,425        1,367  

UnitedHealth Group, Inc.,

      

3.10%, 3/15/26

      2,025        1,997  
  

 

 

     

 

 

  
        19,390  
     

 

 

  

Medical Equipment & Devices Manufacturing - 0.1%

 

   

Zimmer Biomet Holdings, Inc.,

      

3.55%, 4/1/25

      1,025        998  
  

 

 

     

 

 

  

Metals & Mining - 0.3%

      

Commercial Metals Co.,

      

7.35%, 8/15/18

      2,065        2,189  

Steel Dynamics, Inc.,

      

5.00%, 12/15/26(2) (3)

      1,490        1,484  
  

 

 

     

 

 

  
        3,673  
     

 

 

  

Oil & Gas Services & Equipment - 0.3%

 

   

Halliburton Co.,

      

3.80%, 11/15/25

      1,585        1,610  

Rowan Cos., Inc.,

      

7.38%, 6/15/25

      2,665        2,718  
  

 

 

     

 

 

  
        4,328  
     

 

 

  

Pharmaceuticals - 0.2%

      

AbbVie, Inc.,

      

4.50%, 5/14/35

      1,311        1,288  

Zoetis, Inc.,

      

4.70%, 2/1/43

      1,925        1,874  
  

 

 

     

 

 

  
        3,162  
     

 

 

  

Pipeline - 1.6%

      

Boardwalk Pipelines L.P.,

      

5.95%, 6/1/26

      915        994  

Energy Transfer Equity L.P.,

      

5.50%, 6/1/27

      3,480        3,393  

EQT Midstream Partners L.P.,

      

4.13%, 12/1/26

      1,635        1,594  

Kinder Morgan, Inc.,

      

5.05%, 2/15/46

      1,625        1,609  

PBF Logistics L.P./PBF Logistics Finance Corp.,

      

6.88%, 5/15/23

      2,830        2,780  

Sunoco Logistics Partners Operations L.P.,

      

3.90%, 7/15/26

      1,015        982  

Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,

      

5.25%, 5/1/23

      2,290        2,313  

Tesoro Logistics L.P./Tesoro Logistics Finance Corp.,

      

5.88%, 10/1/20

      1,474        1,520  

Williams (The) Cos., Inc.,

      

5.75%, 6/24/44

      4,705        4,564  
  

 

 

     

 

 

  
        19,749  
     

 

 

  

Power Generation - 0.5%

      

Exelon Generation Co. LLC,

      

2.95%, 1/15/20

      1,600        1,619  

4.00%, 10/1/20

      1,630        1,694  

NRG Yield Operating LLC,

      

5.00%, 9/15/26(2)

     2,840        2,712  
  

 

 

     

 

 

  
        6,025  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 42.8% continued

 

   

Property & Casualty Insurance - 0.3%

      

American International Group, Inc.,

      

3.38%, 8/15/20

    $ 1,540      $ 1,584  

Berkshire Hathaway, Inc.,

      

2.20%, 3/15/21

      850        848  

Chubb INA Holdings, Inc.,

      

2.30%, 11/3/20

      1,230        1,230  
  

 

 

     

 

 

  
        3,662  
     

 

 

  

Publishing & Broadcasting - 0.6%

      

21st Century Fox America, Inc.,

      

7.25%, 5/18/18

      2,210        2,369  

CBS Radio, Inc.,

      

7.25%, 11/1/24(2)

     2,340        2,457  

NBCUniversal Enterprise, Inc.,

      

5.25%, 3/19/21(2) (4)

     2,525        2,651  
  

 

 

     

 

 

  
        7,477  
     

 

 

  

Railroad - 0.9%

      

Burlington Northern Santa Fe LLC,

      

3.05%, 3/15/22

      1,150        1,178  

4.55%, 9/1/44

      1,195        1,271  

CSX Corp.,

      

4.75%, 5/30/42

      3,610        3,758  

3.95%, 5/1/50

      2,085        1,875  

Union Pacific Corp.,

      

4.16%, 7/15/22

      1,872        2,017  

3.38%, 2/1/35

      1,035        979  
  

 

 

     

 

 

  
        11,078  
     

 

 

  

Real Estate - 1.6%

      

American Tower Corp.,

      

3.13%, 1/15/27

      2,700        2,491  

Communications Sales & Leasing, Inc./CSL Capital LLC,

      

7.13%, 12/15/24(2)

     3,880        3,919  

EPR Properties,

      

4.50%, 4/1/25

      1,500        1,482  

ESH Hospitality, Inc.,

      

5.25%, 5/1/25(2)

     2,355        2,343  

HCP, Inc.,

      

3.88%, 8/15/24

      1,585        1,584  

Host Hotels & Resorts L.P.,

      

4.00%, 6/15/25

      1,225        1,207  

Omega Healthcare Investors, Inc.,

      

5.25%, 1/15/26

      1,925        1,978  

Ventas Realty L.P.,

      

3.25%, 10/15/26

      1,560        1,480  

5.70%, 9/30/43

      1,745        1,960  

Welltower, Inc.,

      

4.25%, 4/1/26

      2,060        2,135  
  

 

 

     

 

 

  
        20,579  
     

 

 

  

Refining & Marketing - 0.6%

      

PBF Holding Co. LLC/PBF Finance Corp.,

      

8.25%, 2/15/20

      2,165        2,219  

Phillips 66,

      

4.65%, 11/15/34

      1,000        1,041  

Sunoco L.P./Sunoco Finance Corp.,

      

6.38%, 4/1/23

      2,150        2,177  

Western Refining, Inc.,

      

6.25%, 4/1/21

      1,730        1,795  
  

 

 

     

 

 

  
        7,232  
     

 

 

  

Restaurants - 0.6%

      

Landry’s, Inc.,

      

6.75%, 10/15/24(2)

     2,920        2,964  

McDonald’s Corp.,

      

2.10%, 12/7/18

      2,065        2,077  

2.75%, 12/9/20

      792        801  

4.70%, 12/9/35

      1,555        1,645  
  

 

 

     

 

 

  
        7,487  
     

 

 

  

Retail - Consumer Discretionary - 1.9%

      

Amazon.com, Inc.,

      

3.80%, 12/5/24

      1,205        1,266  

4.80%, 12/5/34

      3,755        4,133  

ERAC USA Finance LLC,

      

3.85%, 11/15/24(2)

     1,515        1,540  

7.00%, 10/15/37(2)

     4,140        5,246  

4.50%, 2/15/45(2)

     670        639  

L Brands, Inc.,

      

6.75%, 7/1/36

      1,420        1,438  

Penske Automotive Group, Inc.,

      

5.50%, 5/15/26

      2,675        2,641  

PetSmart, Inc.,

      

7.13%, 3/15/23(2)

     5,070        5,171  

TJX (The) Cos., Inc.,

      

2.25%, 9/15/26

      2,040        1,879  
  

 

 

     

 

 

  
        23,953  
     

 

 

  

 

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 42.8% continued

 

   

Retail - Consumer Staples - 0.2%

      

Bunge Ltd. Finance Corp.,

      

8.50%, 6/15/19

    $ 1,535      $ 1,759  

Sysco Corp.,

      

3.30%, 7/15/26

      525        515  
  

 

 

     

 

 

  
        2,274  
     

 

 

  

Software & Services - 0.5%

      

CA, Inc.,

      

2.88%, 8/15/18

      1,325        1,343  

Nuance Communications, Inc.,

      

5.63%, 12/15/26(2)

     4,730        4,651  
  

 

 

     

 

 

  
        5,994  
     

 

 

  

Supermarkets & Pharmacies - 0.8%

      

CVS Health Corp.,

      

2.25%, 8/12/19

      2,098        2,110  

2.75%, 12/1/22

      2,330        2,295  

5.13%, 7/20/45

      1,795        2,001  

Rite Aid Corp.,

      

6.13%, 4/1/23(2)

     2,285        2,456  

Walgreens Boots Alliance, Inc.,

      

3.80%, 11/18/24

      1,315        1,338  
  

 

 

     

 

 

  
        10,200  
     

 

 

  

Tobacco - 0.7%

      

Altria Group, Inc.,

      

5.38%, 1/31/44

      2,680        3,096  

Reynolds American, Inc.,

      

5.85%, 8/15/45

      2,372        2,809  

RJ Reynolds Tobacco Co.,

      

8.13%, 6/23/19

      2,475        2,823  
  

 

 

     

 

 

  
        8,728  
     

 

 

  

Utilities - 1.3%

      

AES Corp.,

      

5.50%, 3/15/24

      1,850        1,882  

5.50%, 4/15/25

      2,435        2,435  

CMS Energy Corp.,

      

8.75%, 6/15/19

      2,155        2,488  

Dominion Gas Holdings LLC,

      

4.60%, 12/15/44

      2,005        1,995  

Duke Energy Florida LLC,

      

3.40%, 10/1/46

      1,135        1,010  

Exelon Corp.,

      

5.63%, 6/15/35

      2,695        2,982  

Jersey Central Power & Light Co.,

      

4.70%, 4/1/24(2)

     1,305        1,389  

Southern Power Co.,

      

4.95%, 12/15/46

      2,745        2,675  
  

 

 

     

 

 

  
        16,856  
     

 

 

  

Waste & Environment Services & Equipment - 0.5%

 

   

Advanced Disposal Services, Inc.,

      

5.63%, 11/15/24(2)

     2,360        2,348  

Clean Harbors, Inc.,

      

5.25%, 8/1/20

      1,770        1,812  

5.13%, 6/1/21

      2,000        2,046  
  

 

 

     

 

 

  
        6,206  
     

 

 

  

Wireless Telecommunications Services - 2.0%

 

   

AT&T, Inc.,

      

3.00%, 6/30/22

      1,995        1,959  

4.13%, 2/17/26

      3,505        3,549  

4.80%, 6/15/44

      4,470        4,224  

Sprint Corp.,

      

7.13%, 6/15/24

      3,500        3,605  

Verizon Communications, Inc.,

      

3.65%, 9/14/18

      2,820        2,913  

4.15%, 3/15/24

      3,070        3,208  

5.01%, 8/21/54

      6,448        6,414  
  

 

 

     

 

 

  
        25,872  
     

 

 

  

Wireline Telecommunications Services - 0.5%

 

   

Frontier Communications Corp.,

      

8.88%, 9/15/20

      2,090        2,226  

Windstream Services LLC,

      

6.38%, 8/1/23

      2,125        1,896  

Zayo Group LLC/Zayo Capital, Inc.,

      

6.38%, 5/15/25

      2,200        2,299  
  

 

 

     

 

 

  
        6,421  
     

 

 

  

Total Corporate Bonds

(Cost $537,140)

         539,521  
     

 

 

  

FOREIGN ISSUER BONDS - 5.6%

 

   

Banks - 0.9%

      

Credit Suisse A.G.,

      

5.40%, 1/14/20

      2,560        2,745  

3.00%, 10/29/21

      875        883  

Lloyds Bank PLC,

      

6.50%, 9/14/20(2)

     3,200        3,539  

 

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 5.6% continued

 

   

Banks - 0.9% continued

      

Lloyds Banking Group PLC,

      

4.50%, 11/4/24

    $ 1,272      $ 1,295  

5.30%, 12/1/45

      794        820  

Toronto-Dominion Bank (The),

      

3.63%, 9/15/31(5)

     1,675        1,636  
  

 

 

     

 

 

  
        10,918  
     

 

 

  

Cable & Satellite - 0.6%

      

Altice Financing S.A.,

      

6.63%, 2/15/23(2)

     2,050        2,106  

Virgin Media Secured Finance PLC,

      

5.25%, 1/15/26(2)

     2,800        2,765  

Ziggo Secured Finance B.V.,

      

5.50%, 1/15/27(2)

     2,345        2,286  
  

 

 

     

 

 

  
        7,157  
     

 

 

  

Chemicals - 0.3%

      

Agrium, Inc.,

      

4.90%, 6/1/43

      1,010        1,006  

LYB International Finance B.V.,

      

4.00%, 7/15/23

      780        815  

4.88%, 3/15/44

      305        316  

LyondellBasell Industries N.V.,

      

5.00%, 4/15/19

      1,700        1,796  
  

 

 

     

 

 

  
        3,933  
     

 

 

  

Commercial Finance - 0.4%

      

AerCap Ireland Capital Ltd./AerCap Global Aviation Trust,

      

4.50%, 5/15/21

      1,533        1,589  

5.00%, 10/1/21

      1,015        1,067  

4.63%, 7/1/22

      510        525  

Dana Financing Luxembourg S.a.r.l.,

      

6.50%, 6/1/26(2)

     2,135        2,231  
  

 

 

     

 

 

  
        5,412  
     

 

 

  

Containers & Packaging - 0.2%

      

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.,

      

7.25%, 5/15/24(2)

     1,970        2,076  
  

 

 

     

 

 

  

Diversified Banks - 0.6%

      

BNP Paribas S.A.,

      

2.38%, 5/21/20

      420        418  

4.38%, 9/28/25(2)

     3,410        3,390  

HSBC Holdings PLC,

      

5.25%, 3/14/44

      3,746        4,012  
  

 

 

     

 

 

  
        7,820  
     

 

 

  

Electrical Equipment Manufacturing - 0.2%

      

Siemens Financieringsmaatschappij N.V.,

      

2.00%, 9/15/23(2)

     2,880        2,718  
  

 

 

     

 

 

  

Exploration & Production - 0.3%

      

Canadian Natural Resources Ltd.,

      

6.75%, 2/1/39

      3,400        3,967  
  

 

 

     

 

 

  

Financial Services - 0.2%

      

UBS Group Funding Jersey Ltd.,

      

2.95%, 9/24/20(2)

     2,140        2,141  
  

 

 

     

 

 

  

Food & Beverage - 0.7%

      

Danone S.A.,

      

2.59%, 11/2/23(2)

     2,745        2,645  

ESAL GmbH,

      

6.25%, 2/5/23(2)

     1,800        1,806  

JBS Investments GmbH,

      

7.25%, 4/3/24(2)

     1,650        1,724  

Suntory Holdings Ltd.,

      

2.55%, 9/29/19(2)

     2,890        2,907  
  

 

 

     

 

 

  
        9,082  
     

 

 

  

Hardware - 0.2%

      

Seagate HDD Cayman,

      

4.75%, 1/1/25

      2,470        2,353  
  

 

 

     

 

 

  

Integrated Oils - 0.2%

      

BP Capital Markets PLC,

      

3.02%, 1/16/27

      2,100        2,027  

Petro-Canada,

      

6.05%, 5/15/18

      960        1,014  
  

 

 

     

 

 

  
        3,041  
     

 

 

  

Metals & Mining - 0.3%

      

Alcoa Nederland Holding B.V.,

      

6.75%, 9/30/24(2)

     950        1,031  

Vale Overseas Ltd.,

      

4.38%, 1/11/22

      2,730        2,682  
  

 

 

     

 

 

  
        3,713  
     

 

 

  

 

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 5.6% continued

      

Pharmaceuticals - 0.3%

      

Actavis Funding SCS,

      

4.55%, 3/15/35

    $ 1,620      $ 1,603  

Teva Pharmaceutical Finance Netherlands III B.V.,

      

4.10%, 10/1/46

      2,790        2,391  
  

 

 

     

 

 

  
        3,994  
     

 

 

  

Property & Casualty Insurance - 0.2%

      

Allied World Assurance Co. Holdings Ltd.,

      

5.50%, 11/15/20

      2,070        2,233  
  

 

 

     

 

 

  

Total Foreign Issuer Bonds

(Cost $70,524)

         70,558  
     

 

 

  

U.S. GOVERNMENT AGENCIES - 22.5%(6)

     

Fannie Mae - 21.6%

      

Pool #255498

      

5.50%, 12/1/34

      238        267  

Pool #256883

      

6.00%, 9/1/37

      22        25  

Pool #535714

      

7.50%, 1/1/31

      30        34  

Pool #545003

      

8.00%, 5/1/31

      2        2  

Pool #545437

      

7.00%, 2/1/32

      62        73  

Pool #545556

      

7.00%, 4/1/32

      39        45  

Pool #555189

      

7.00%, 12/1/32

      262        300  

Pool #581806

      

7.00%, 7/1/31

      75        81  

Pool #585617

      

7.00%, 5/1/31(7)

     —          —    

Pool #745148

      

5.00%, 1/1/36

      146        160  

Pool #888538

      

5.50%, 1/1/37

      359        402  

Pool #890009

      

5.50%, 9/1/36

      1,518        1,701  

Pool #893082

      

3.15%, 9/1/36(5)

     1,317        1,396  

Pool #919638

      

5.50%, 9/1/37

      714        797  

Pool #929035

      

6.50%, 1/1/38

      351        406  

Pool #932638

      

5.00%, 3/1/40

      5,023        5,555  

Pool #955782

      

6.50%, 10/1/37

      97        110  

Pool #990702

      

6.50%, 9/1/38

      1,863        2,154  

Pool #AB1470

      

4.50%, 9/1/40

      2,029        2,187  

Pool #AB3114

      

5.00%, 6/1/41

      2,682        2,938  

Pool #AB9522

      

3.50%, 5/1/43

      19,618        20,222  

Pool #AC6767

      

4.50%, 1/1/40

      1,722        1,864  

Pool #AC9581

      

5.50%, 1/1/40

      3,747        4,217  

Pool #AD0915

      

5.50%, 12/1/38

      135        151  

Pool #AD6929

      

5.00%, 6/1/40

      2,307        2,521  

Pool #AH1166

      

4.50%, 12/1/40

      5,780        6,244  

Pool #AH1507

      

4.50%, 12/1/40

      6,627        7,182  

Pool #AL4408

      

4.50%, 11/1/43

      8,428        9,148  

Pool #AL5686

      

4.00%, 9/1/44

      5,524        5,839  

Pool #AL8352

      

3.00%, 10/1/44

      23,545        23,538  

Pool #AL9069

      

3.00%, 3/1/44

      11,514        11,510  

Pool #AQ9333

      

4.00%, 1/1/43

      4,987        5,279  

Pool #AS2703

      

4.00%, 6/1/44

      5,856        6,175  

Pool #AS3473

      

4.00%, 10/1/44

      9,766        10,269  

Pool #AS3655

      

4.50%, 10/1/44

      3,471        3,734  

 

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 22.5%(6) continued

      

Fannie Mae - 21.6% continued

      

Pool #AS3797

      

5.00%, 11/1/44

    $ 3,705      $ 4,046  

Pool #AS6075

      

4.00%, 10/1/45

      5,370        5,648  

Pool #AS6184

      

3.50%, 11/1/45

      14,435        14,876  

Pool #AS6520

      

3.50%, 1/1/46

      5,928        6,081  

Pool #AS6730

      

3.50%, 2/1/46

      11,231        11,520  

Pool #AS7568

      

4.50%, 7/1/46

      12,545        13,521  

Pool #AU7032

      

4.00%, 11/1/43

      30,556        32,345  

Pool #AW6233

      

4.50%, 6/1/44

      7,841        8,502  

Pool #AZ7903

      

4.00%, 6/1/41

      5,407        5,706  

Pool #BC0326

      

3.50%, 12/1/45

      5,573        5,716  

Pool #BC4898

      

3.50%, 2/1/46

      10,663        10,936  

Pool #MA2522

      

3.50%, 2/1/46

      7,728        7,927  

Pool #MA2642

      

3.50%, 6/1/46

      9,144        9,384  
  

 

 

     

 

 

  
        272,734  
     

 

 

  

Freddie Mac - 0.4%

      

Pool #1B3575

      

5.96%, 9/1/37(5)

     194        194  

Pool #1G2296

      

6.12%, 11/1/37(5)

     1,085        1,152  

Pool #1J0365

      

3.02%, 4/1/37(5)

     1,330        1,407  

Pool #1J2840

      

3.15%, 9/1/37(5)

     1,278        1,362  

Pool #848076

      

4.93%, 6/1/38(5)

     479        490  
  

 

 

     

 

 

  
        4,605  
     

 

 

  

Freddie Mac Gold - 0.5%

      

Pool #A65182

      

6.50%, 9/1/37

      2,045        2,352  

Pool #A92650

      

5.50%, 6/1/40

      196        218  

Pool #C00910

      

7.50%, 1/1/30

      242        291  

Pool #C02790

      

6.50%, 4/1/37

      1,018        1,187  

Pool #C02838

      

5.50%, 5/1/37

      1,540        1,719  

Pool #G01954

      

5.00%, 11/1/35

      925        1,012  
  

 

 

     

 

 

  
        6,779  
     

 

 

  

Total U.S. Government Agencies

(Cost $285,389)

         284,118  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 13.6%

      

U.S. Treasury Bonds - 0.4%

      

2.25%, 8/15/46

      6,390        5,373  
  

 

 

     

 

 

  

U.S. Treasury Inflation Indexed Bonds - 1.0%

      

1.00%, 2/15/46

      11,975        12,267  
  

 

 

     

 

 

  

U.S. Treasury Inflation Indexed Notes - 4.1%

      

0.13%, 4/15/19

      12,535        13,092  

0.13%, 4/15/21

      18,675        19,154  

0.13%, 7/15/26

      19,690        19,200  
  

 

 

     

 

 

  
        51,446  
     

 

 

  

U.S. Treasury Notes - 8.1%

      

1.38%, 12/15/19

      50,605        50,484  

2.00%, 12/31/21

      51,320        51,509  
  

 

 

     

 

 

  
        101,993  
     

 

 

  

Total U.S. Government Obligations

(Cost $172,030)

         171,079  
     

 

 

  

MUNICIPAL BONDS - 0.3%

      

Alabama - 0.3%

      

Alabama Economic Settlement Authority Taxable Revenue Bonds, Series B,

      

3.16%, 9/15/25

      1,825        1,835  

4.26%, 9/15/32

      1,580        1,624  
  

 

 

     

 

 

  
        3,459  
     

 

 

  

Total Municipal Bonds

(Cost $3,405)

         3,459  
     

 

 

  

 

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 12.7%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(8) (9)

      159,761,901      $ 159,762  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $159,762)

         159,762  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.1%

      

U.S. Treasury Bill,

      

0.45%, 2/23/17(10) (11)

    $ 1,000      $ 1,000  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $1,000)

         1,000  
     

 

 

  

Total Investments - 103.8%

(Cost $1,308,405)

         1,308,290  
     

 

 

  

Liabilities less Other Assets - (3.8%)

         (47,877 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 1,260,413  
     

 

 

  

 

(1) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the perpetual call date.
(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(3) Restricted security that has been deemed illiquid. At December 31, 2016, the value of these restricted illiquid securities amounted to approximately $4,469,000 or 0.4% of net assets. Additional information on these restricted illiquid securities is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

Herc Rentals, Inc.,

      

7.75%, 6/1/24

      12/13/16      $ 2,996  

Steel Dynamics, Inc.,

      

5.00%, 12/15/26

      11/29/16        1,490  

 

(4) Perpetual call security.
(5) Variable rate security. Rate as of December 31, 2016 is disclosed.
(6) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(7) Principal Amount and Value rounds to less than one thousand.
(8) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(9) 7-day yield as of December 31, 2016 is disclosed.
(10) Discount rate at the time of purchase.
(11) Security pledged as collateral to cover margin requirements for open futures contracts.

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		     NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

10-Year U.S. Treasury Note

      (81 )    $ 10,067        Short        3/17      $ 2  

Ultra Long Term U.S. Treasury Bond

      (96 )      15,384        Short        3/17        (133 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total

               $ (131 ) 
             

 

 

  

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:    

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENT		  

U.S. Treasury

      13.2 % 

U.S. Agency

      21.7  

AAA

      6.0  

AA

      0.7  

A

      9.1  

BBB

      23.4  

BB

      7.3  

B

      5.8  

CCC

      0.6  

Cash Equivalents

      12.2  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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).

 

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

FIXED INCOME FUND continued    DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Asset-Backed Securities(1)

   $ —       $ 78,793      $ —        $ 78,793  

Corporate Bonds(1)

     —         539,521        —          539,521  

Foreign Issuer Bonds(1)

     —         70,558        —          70,558  

U.S. Government Agencies(1)

     —         284,118        —          284,118  

U.S. Government Obligations(1)

     —         171,079        —          171,079  

Municipal Bonds(1)

     —         3,459        —          3,459  

Investment Companies

      159,762       —          —          159,762  

Short-Term Investments

      —         1,000        —          1,000  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 159,762     $ 1,148,528      $ —        $ 1,308,290  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Assets

           

Futures Contracts

    $ 2     $ —        $ —        $ 2  

Liabilities

           

Futures Contracts

      (133 )      —          —          (133 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Other Financial Instruments

    $ (131 )    $ —        $ —        $ (131 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,308,639  
  

 

 

  

Gross tax appreciation of investments

    $ 17,029  

Gross tax depreciation of investments

      (17,378 ) 
  

 

 

  

Net tax depreciation of investments

    $ (349 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 153,501      $ 2,006,141      $ 1,999,880      $ 244      $ 159,762  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

Fannie Mae - Federal National Mortgage Association

Freddie Mac - Federal Home Loan Mortgage Corporation

 

FIXED INCOME FUNDS     12    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

HIGH YIELD FIXED INCOME FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 68.1%

      

Aerospace & Defense - 1.2%

      

StandardAero Aviation Holdings, Inc.,

      

10.00%, 7/15/23(1)

   $ 23,725      $ 24,971  

TransDigm, Inc.,

      

6.50%, 5/15/25

      30,829        32,293  
  

 

 

     

 

 

  
        57,264  
     

 

 

  

Auto Parts Manufacturing - 0.8%

      

MPG Holdco I, Inc.,

      

7.38%, 10/15/22

      33,605        35,117  
  

 

 

     

 

 

  

Biotechnology - 0.6%

      

Sterigenics-Nordion Topco LLC,

      

8.13%, 11/1/21(1) (2)

      27,000        26,865  
  

 

 

     

 

 

  

Building Materials - 0.8%

      

FBM Finance, Inc.,

      

8.25%, 8/15/21(1)

     29,025        30,621  

Stock Building Supply LLC,

      

5.50%, 10/1/24(1)

     6,925        6,908  
  

 

 

     

 

 

  
        37,529  
     

 

 

  

Cable & Satellite - 2.0%

      

DISH DBS Corp.,

      

7.75%, 7/1/26

      23,467        26,459  

Hughes Satellite Systems Corp.,

      

6.63%, 8/1/26(1)

     10,600        10,653  

Midcontinent Communications/Midcontinent Finance Corp.,

      

6.88%, 8/15/23(1)

     25,495        27,152  

WaveDivision Escrow LLC/WaveDivision Escrow Corp.,

      

8.13%, 9/1/20(1)

     27,724        28,833  
  

 

 

     

 

 

  
        93,097  
     

 

 

  

Casinos & Gaming - 2.2%

      

Caesars Entertainment Resort Properties LLC/Caesars Entertainment Resort Properties,

      

8.00%, 10/1/20

      26,583        27,846  

Eldorado Resorts, Inc.,

      

7.00%, 8/1/23

      24,151        25,600  

Mohegan Tribal Gaming Authority,

      

7.88%, 10/15/24(1)

     18,025        18,386  

Rivers Pittsburgh Borrower L.P./Rivers Pittsburgh Finance Corp.,

      

6.13%, 8/15/21(1)

     27,700        28,323  
  

 

 

     

 

 

  
        100,155  
     

 

 

  

Chemicals - 0.6%

      

CVR Partners L.P./CVR Nitrogen Finance Corp.,

      

9.25%, 6/15/23(1)

     27,775        28,608  
  

 

 

     

 

 

  

Communications Equipment - 0.5%

      

CPI International, Inc.,

      

8.75%, 2/15/18

      23,789        24,146  
  

 

 

     

 

 

  

Consumer Finance - 2.0%

      

Alliance Data Systems Corp.,

      

5.88%, 11/1/21(1)

     3,275        3,324  

5.38%, 8/1/22(1)

     27,315        26,359  

OneMain Financial Holdings LLC,

      

7.25%, 12/15/21(1)

     31,596        32,939  

Quicken Loans, Inc.,

      

5.75%, 5/1/25(1)

     30,912        30,062  
  

 

 

     

 

 

  
        92,684  
     

 

 

  

Consumer Products - 2.3%

      

Avon International Operations, Inc.,

      

7.88%, 8/15/22(1)

     27,500        29,081  

Clearwater Paper Corp.,

      

5.38%, 2/1/25(1)

     22,000        21,780  

Kronos Acquisition Holdings, Inc.,

      

9.00%, 8/15/23(1)

     24,725        24,663  

Revlon Consumer Products Corp.,

      

6.25%, 8/1/24

      29,750        30,494  
  

 

 

     

 

 

  
        106,018  
     

 

 

  

Consumer Services - 0.5%

      

Prime Security Services Borrower LLC/Prime Finance, Inc.,

      

9.25%, 5/15/23(1)

     23,485        25,569  
  

 

 

     

 

 

  

Containers & Packaging - 0.5%

      

PaperWorks Industries, Inc.,

      

9.50%, 8/15/19(1)

     22,149        19,159  

Plastipak Holdings, Inc.,

      

6.50%, 10/1/21(1)

     1,814        1,896  
  

 

 

     

 

 

  
        21,055  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 68.1% continued

 

   

Department Stores - 0.3%

      

J.C. Penney Corp., Inc.,

      

8.13%, 10/1/19

    $ 12,337      $ 13,324  
  

 

 

     

 

 

  

Entertainment Resources - 1.1%

      

AMC Entertainment Holdings, Inc.,

      

5.88%, 11/15/26(1)

     26,276        26,867  

ClubCorp Club Operations, Inc.,

      

8.25%, 12/15/23(1)

     24,450        25,917  
  

 

 

     

 

 

  
        52,784  
     

 

 

  

Exploration & Production - 6.5%

      

Carrizo Oil & Gas, Inc.,

      

7.50%, 9/15/20

      26,421        27,346  

Chesapeake Energy Corp.,

      

8.00%, 1/15/25(1)

     25,700        26,214  

Denbury Resources, Inc.,

      

9.00%, 5/15/21(1)

     28,358        30,698  

Gulfport Energy Corp.,

      

6.00%, 10/15/24(1)

     17,425        17,730  

Hilcorp Energy I L.P./Hilcorp Finance Co.,

      

5.00%, 12/1/24(1)

     14,146        14,040  

5.75%, 10/1/25(1)

     9,585        9,705  

Laredo Petroleum, Inc.,

      

6.25%, 3/15/23

      27,775        28,747  

Murphy Oil Corp.,

      

6.88%, 8/15/24

      24,770        26,380  

Oasis Petroleum, Inc.,

      

6.88%, 3/15/22

      13,925        14,273  

6.88%, 1/15/23

      13,937        14,285  

Range Resources Corp.,

      

5.00%, 3/15/23(1)

     3,974        3,934  

SM Energy Co.,

      

6.13%, 11/15/22

      10,775        10,910  

5.63%, 6/1/25

      13,110        12,651  

6.75%, 9/15/26

      3,450        3,553  

Southwestern Energy Co.,

      

6.70%, 1/23/25

      33,518        34,272  

WPX Energy, Inc.,

      

6.00%, 1/15/22

      27,822        28,518  
  

 

 

     

 

 

  
        303,256  
     

 

 

  

Food & Beverage - 1.7%

      

Dole Food Co., Inc.,

      

7.25%, 5/1/19(1)

     23,440        23,909  

Pilgrim’s Pride Corp.,

      

5.75%, 3/15/25(1)

     26,733        26,666  

Simmons Foods, Inc.,

      

7.88%, 10/1/21(1)

     25,844        26,619  
  

 

 

     

 

 

  
        77,194  
     

 

 

  

Health Care Facilities & Services - 2.6%

 

   

AMN Healthcare, Inc.,

      

5.13%, 10/1/24(1)

     26,050        25,985  

Envision Healthcare Corp.,

      

6.25%, 12/1/24(1)

     14,700        15,508  

Jaguar Holding Co. II/Pharmaceutical Product Development LLC,

      

6.38%, 8/1/23(1)

     22,441        24,012  

RegionalCare Hospital Partners Holdings, Inc.,

      

8.25%, 5/1/23(1)

     27,075        27,007  

Tenet Healthcare Corp.,

      

8.13%, 4/1/22

      27,725        26,159  
  

 

 

     

 

 

  
        118,671  
     

 

 

  

Homebuilders - 1.3%

      

AV Homes, Inc.,

      

8.50%, 7/1/19

      21,150        21,838  

TRI Pointe Group, Inc./TRI Pointe Homes, Inc.,

      

5.88%, 6/15/24

      35,410        36,472  
  

 

 

     

 

 

  
        58,310  
     

 

 

  

Industrial Other - 1.3%

      

Ahern Rentals, Inc.,

      

7.38%, 5/15/23(1)

     17,575        14,763  

BlueLine Rental Finance Corp.,

      

7.00%, 2/1/19(1)

     22,258        21,702  

MasTec, Inc.,

      

4.88%, 3/15/23

      24,125        23,582  
  

 

 

     

 

 

  
        60,047  
     

 

 

  

Investment Companies - 0.8%

      

Nationstar Mortgage LLC/Nationstar Capital Corp.,

      

9.63%, 5/1/19

      6,689        6,999  

Prospect Capital Corp.,

      

5.88%, 3/15/23

      29,093        29,719  
  

 

 

     

 

 

  
        36,718  
     

 

 

  

 

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 68.1% continued

 

   

Life Insurance - 0.7%

      

Fidelity & Guaranty Life Holdings, Inc.,

      

6.38%, 4/1/21(1)

   $ 33,757      $ 33,588  
  

 

 

     

 

 

  

Machinery Manufacturing - 0.9%

      

Manitowoc Foodservice, Inc.,

      

9.50%, 2/15/24

      12,550        14,464  

Xerium Technologies, Inc.,

      

9.50%, 8/15/21(1)

     26,625        26,558  
  

 

 

     

 

 

  
        41,022  
     

 

 

  

Managed Care - 0.7%

      

MPH Acquisition Holdings LLC,

      

7.13%, 6/1/24(1)

     28,900        30,420  

Manufactured Goods - 0.5%

      

Park-Ohio Industries, Inc.,

      

8.13%, 4/1/21

      21,188        21,877  

Media Non-Cable - 1.1%

      

National CineMedia LLC,

      

5.75%, 8/15/26

      27,450        27,862  

Sterling Entertainment Enterprises LLC,

      

9.75%, 12/15/19

      23,800        24,454  
  

 

 

     

 

 

  
        52,316  
     

 

 

  

Metals & Mining - 3.6%

      

AK Steel Corp.,

      

7.63%, 5/15/20

      34,493        35,183  

Aleris International, Inc.,

      

9.50%, 4/1/21(1)

     28,510        30,577  

Freeport-McMoRan, Inc.,

      

5.45%, 3/15/43

      35,425        29,315  

Joseph T Ryerson & Son, Inc.,

      

11.00%, 5/15/22(1)

     26,128        28,741  

Novelis Corp.,

      

6.25%, 8/15/24(1)

     20,350        21,571  

United States Steel Corp.,

      

8.38%, 7/1/21(1)

     20,640        22,818  
  

 

 

     

 

 

  
        168,205  
     

 

 

  

Oil & Gas Services & Equipment - 0.6%

 

   

Nabors Industries, Inc.,

      

5.50%, 1/15/23(1)

     17,075        17,779  

Rowan Cos., Inc.,

      

7.38%, 6/15/25

      10,450        10,659  
  

 

 

     

 

 

  
        28,438  
     

 

 

  

Pharmaceuticals - 1.3%

      

inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc.,

      

7.50%, 10/1/24(1)

     30,775        32,234  

JPR Royalty Sub LLC,

      

14.00%, 9/1/20(1) (3)

      8,000        4,000  

Nature’s Bounty (The) Co.,

      

7.63%, 5/15/21(1)

     23,925        24,762  
  

 

 

     

 

 

  
        60,996  
     

 

 

  

Pipeline - 3.9%

      

American Midstream Partners L.P./American Midstream Finance Corp.,

      

8.50%, 12/15/21(1)

     15,450        15,334  

Cheniere Corpus Christi Holdings LLC,

      

7.00%, 6/30/24(1)

     25,350        27,442  

Energy Transfer Equity L.P.,

      

7.50%, 10/15/20

      25,715        28,672  

Genesis Energy L.P./Genesis Energy Finance Corp.,

      

6.00%, 5/15/23

      26,175        26,633  

Global Partners L.P./GLP Finance Corp.,

      

7.00%, 6/15/23

      25,679        24,780  

Martin Midstream Partners L.P./Martin Midstream Finance Corp.,

      

7.25%, 2/15/21

      26,940        26,603  

PBF Logistics L.P./PBF Logistics Finance Corp.,

      

6.88%, 5/15/23

      30,507        29,973  
  

 

 

     

 

 

  
        179,437  
     

 

 

  

Power Generation - 2.2%

      

Calpine Corp.,

      

5.50%, 2/1/24

      36,505        35,227  

Dynegy, Inc.,

      

7.38%, 11/1/22

      25,543        24,394  

7.63%, 11/1/24

      10,325        9,525  

NRG Energy, Inc.,

      

6.63%, 3/15/23

      23,750        23,809  

7.25%, 5/15/26(1)

     7,350        7,313  
  

 

 

     

 

 

  
        100,268  
     

 

 

  

 

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 68.1% continued

      

Property & Casualty Insurance - 0.7%

      

Hub Holdings LLC/Hub Holdings Finance, Inc. (100% Cash),

      

8.13%, 7/15/19(1) (2)

    $ 8,150      $ 8,129  

HUB International Ltd.,

      

7.88%, 10/1/21(1)

     24,936        26,343  
  

 

 

     

 

 

  
        34,472  
     

 

 

  

Publishing & Broadcasting - 1.4%

      

CBS Radio, Inc.,

      

7.25%, 11/1/24(1)

     27,200        28,560  

Lee Enterprises, Inc.,

      

9.50%, 3/15/22(1)

     32,496        34,446  
  

 

 

     

 

 

  
        63,006  
     

 

 

  

Railroad - 0.6%

      

Florida East Coast Holdings Corp.,

      

6.75%, 5/1/19(1)

     27,741        28,712  
  

 

 

     

 

 

  

Real Estate - 1.5%

      

Crescent Communities LLC/Crescent Ventures, Inc.,

      

8.88%, 10/15/21(1)

     28,725        28,941  

ESH Hospitality, Inc.,

      

5.25%, 5/1/25(1)

     24,719        24,595  

Howard Hughes (The) Corp.,

      

6.88%, 10/1/21

      14,390        15,164  
  

 

 

     

 

 

  
        68,700  
     

 

 

  

Real Estate Investment Trusts - 1.2%

      

Communications Sales & Leasing, Inc./CSL Capital LLC,

      

8.25%, 10/15/23

      11,150        11,819  

7.13%, 12/15/24(1)

     14,850        14,998  

Qualitytech L.P./QTS Finance Corp.,

      

5.88%, 8/1/22

      30,104        30,631  
  

 

 

     

 

 

  
        57,448  
     

 

 

  

Refining & Marketing - 2.8%

      

Citgo Holding, Inc.,

      

10.80%, 2/15/20(1)

     28,404        30,463  

PBF Holding Co. LLC/PBF Finance Corp.,

      

8.25%, 2/15/20

      36,237        37,143  

Sunoco L.P./Sunoco Finance Corp.,

      

6.38%, 4/1/23

      31,775        32,172  

Western Refining Logistics L.P./WNRL Finance Corp.,

      

7.50%, 2/15/23

      30,100        32,508  
  

 

 

     

 

 

  
        132,286  
     

 

 

  

Restaurants - 0.6%

      

Landry’s, Inc.,

      

6.75%, 10/15/24(1)

     28,150        28,572  
  

 

 

     

 

 

  

Retail - 1.0%

      

CST Brands, Inc.,

      

5.00%, 5/1/23

      30,308        31,293  

Neiman Marcus Group Ltd. LLC,

      

8.00%, 10/15/21(1)

     23,474        17,430  
  

 

 

     

 

 

  
        48,723  
     

 

 

  

Retail - Consumer Discretionary - 3.4%

      

Asbury Automotive Group, Inc.,

      

6.00%, 12/15/24

      23,725        24,259  

GameStop Corp.,

      

6.75%, 3/15/21(1)

     33,725        33,978  

L Brands, Inc.,

      

6.88%, 11/1/35

      34,700        35,394  

Penske Automotive Group, Inc.,

      

5.50%, 5/15/26

      31,475        31,082  

PetSmart, Inc.,

      

7.13%, 3/15/23(1)

     30,562        31,173  
  

 

 

     

 

 

  
        155,886  
     

 

 

  

Retail - Consumer Staples - 0.5%

      

C&S Group Enterprises LLC,

      

5.38%, 7/15/22(1)

     23,925        23,088  
  

 

 

     

 

 

  

Software & Services - 2.1%

      

Inception Merger Sub, Inc./Rackspace Hosting, Inc.,

      

8.63%, 11/15/24(1)

     27,225        28,816  

Infor US, Inc.,

      

6.50%, 5/15/22

      23,513        24,512  

Nuance Communications, Inc.,

      

5.63%, 12/15/26(1)

     19,075        18,756  

Sophia L.P./Sophia Finance, Inc.,

      

9.00%, 9/30/23(1)

     25,097        26,666  
  

 

 

     

 

 

  
        98,750  
     

 

 

  

 

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 68.1% continued

      

Supermarkets & Pharmacies - 1.3%

      

Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC,

      

5.75%, 3/15/25(1)

   $ 26,040      $ 25,780  

Rite Aid Corp.,

      

6.13%, 4/1/23(1)

     31,858        34,247  
  

 

 

     

 

 

  
        60,027  
     

 

 

  

Utilities - 1.5%

      

AES Corp.,

      

6.00%, 5/15/26

      30,266        30,720  

AmeriGas Partners L.P./AmeriGas Finance Corp.,

      

5.50%, 5/20/25

      12,850        12,979  

NGL Energy Partners L.P./NGL Energy Finance Corp.,

      

7.50%, 11/1/23

      23,150        23,902  
  

 

 

     

 

 

  
        67,601  
     

 

 

  

Waste & Environment Services & Equipment - 1.3%

      

Advanced Disposal Services, Inc.,

      

5.63%, 11/15/24(1)

     28,375        28,233  

Covanta Holding Corp.,

      

6.38%, 10/1/22

      32,088        32,560  
  

 

 

     

 

 

  
        60,793  
     

 

 

  

Wireless Telecommunications Services - 1.2%

      

Sprint Communications, Inc.,

      

7.00%, 8/15/20

      11,475        12,165  

Sprint Corp.,

      

7.25%, 9/15/21

      21,450        22,790  

7.88%, 9/15/23

      20,945        22,359  
  

 

 

     

 

 

  
        57,314  
     

 

 

  

Wireline Telecommunications Services - 1.9%

      

Frontier Communications Corp.,

      

10.50%, 9/15/22

      30,465        32,028  

GCI, Inc.,

      

6.88%, 4/15/25

      34,784        35,306  

Windstream Services LLC,

      

7.75%, 10/15/20

      11,975        12,310  

7.50%, 6/1/22

      9,175        8,991  
  

 

 

     

 

 

  
        88,635  
     

 

 

  

Total Corporate Bonds

(Cost $3,093,334)

         3,158,991  
     

 

 

  

FOREIGN ISSUER BONDS - 24.8%

      

Airlines - 1.4%

      

Air Canada,

      

7.75%, 4/15/21(1)

     17,563        19,627  

Virgin Australia Holdings Ltd.,

      

7.88%, 10/15/21(1)

     28,275        28,416  

VistaJet Malta Finance PLC/VistaJet Co. Finance LLC,

      

7.75%, 6/1/20(1)

     21,894        15,107  
  

 

 

     

 

 

  
        63,150  
     

 

 

  

Auto Parts Manufacturing - 0.6%

      

Dana Financing Luxembourg S.a.r.l.,

      

6.50%, 6/1/26(1)

     27,225        28,450  
  

 

 

     

 

 

  

Banks - 0.5%

      

ING Groep N.V.,

      

6.50%, 4/16/25(4)

     26,585        25,638  
  

 

 

     

 

 

  

Cable & Satellite - 1.7%

      

Altice Financing S.A.,

      

6.63%, 2/15/23(1)

     27,193        27,941  

VTR Finance B.V.,

      

6.88%, 1/15/24(1)

     22,850        23,593  

Ziggo Secured Finance B.V.,

      

5.50%, 1/15/27(1)

     29,675        28,927  
  

 

 

     

 

 

  
        80,461  
     

 

 

  

Casinos & Gaming - 0.4%

      

International Game Technology PLC,

      

6.50%, 2/15/25(1)

     17,470        18,737  
  

 

 

     

 

 

  

Chemicals - 0.7%

      

INEOS Group Holdings S.A.,

      

5.63%, 8/1/24(1)

     30,846        30,615  
  

 

 

     

 

 

  

Containers & Packaging - 0.7%

      

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.,

      

7.25%, 5/15/24(1)

     29,850        31,454  
  

 

 

     

 

 

  

Diversified Banks - 3.6%

      

Barclays PLC,

      

8.25%, 12/15/18(4)

     24,914        25,919  

BNP Paribas S.A.,

      

7.63%, 3/30/21(1) (4)

      25,350        26,747  

Credit Agricole S.A.,

      

7.88%, 1/23/24(1) (4)

      30,587        30,896  

Credit Suisse Group A.G.,

      

7.50%, 12/11/23(1) (4)

      30,000        31,387  

 

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 24.8% continued

      

Diversified Banks - 3.6% continued

      

Societe Generale S.A.,

      

7.38%, 9/13/21(1) (4)

    $ 28,275      $ 28,227  

Standard Chartered PLC,

      

7.50%, 4/2/22(1) (4)

      25,525        25,461  
  

 

 

     

 

 

  
        168,637  
     

 

 

  

Food & Beverage - 1.4%

      

JBS Investments GmbH,

      

7.25%, 4/3/24(1)

     28,900        30,200  

Marfrig Holdings Europe B.V.,

      

8.00%, 6/8/23(1)

     31,875        32,994  
  

 

 

     

 

 

  
        63,194  
     

 

 

  

Foreign Wireless - 0.7%

      

SFR Group S.A.,

      

7.38%, 5/1/26(1)

     31,575        32,364  
  

 

 

     

 

 

  

Integrated Oils - 1.4%

      

Petrobras Global Finance B.V.,

      

4.38%, 5/20/23

      18,950        16,557  

6.75%, 1/27/41

      15,675        13,167  

Petroleos Mexicanos,

      

6.50%, 3/13/27(1)

     32,550        33,575  
  

 

 

     

 

 

  
        63,299  
     

 

 

  

Metals & Mining - 4.6%

      

Alcoa Nederland Holding B.V.,

      

6.75%, 9/30/24(1)

     10,075        10,932  

7.00%, 9/30/26(1)

     17,550        19,217  

ArcelorMittal,

      

7.75%, 3/1/41

      35,525        37,834  

First Quantum Minerals Ltd.,

      

7.25%, 10/15/19(1)

     10,937        11,046  

7.00%, 2/15/21(1)

     14,894        14,814  

7.25%, 5/15/22(1)

     12,350        12,165  

FMG Resources (August 2006) Pty. Ltd.,

      

9.75%, 3/1/22(1)

     24,335        28,230  

Teck Resources Ltd.,

      

6.00%, 8/15/40

      8,575        8,146  

6.25%, 7/15/41

      17,275        16,648  

5.40%, 2/1/43

      17,200        15,222  

Vale Overseas Ltd.,

      

6.88%, 11/21/36

      37,725        37,159  
  

 

 

     

 

 

  
        211,413  
     

 

 

  

Oil & Gas Services & Equipment - 2.6%

      

Ensco PLC,

      

4.50%, 10/1/24

      10,392        8,911  

5.75%, 10/1/44

      42,436        30,766  

Noble Holding International Ltd.,

      

7.75%, 1/15/24

      17,325        16,296  

Transocean, Inc.,

      

6.50%, 11/15/20

      18,665        18,478  

8.13%, 12/15/21

      19,743        19,743  

Weatherford International Ltd.,

      

7.75%, 6/15/21

      13,800        13,938  

8.25%, 6/15/23

      14,000        14,245  
  

 

 

     

 

 

  
        122,377  
     

 

 

  

Paper & Packaging - 1.2%

      

Cascades, Inc.,

      

5.50%, 7/15/22(1)

     25,616        26,000  

Coveris Holdings S.A.,

      

7.88%, 11/1/19(1)

     30,145        29,919  
  

 

 

     

 

 

  
        55,919  
     

 

 

  

Software & Services - 0.6%

      

Sixsigma Networks Mexico S.A. de C.V.,

      

8.25%, 11/7/21(1)

     29,150        27,401  
  

 

 

     

 

 

  

Trucking & Leasing - 0.5%

      

Fly Leasing Ltd.,

      

6.75%, 12/15/20

      22,440        23,450  
  

 

 

     

 

 

  

Wireless Telecommunications Services - 1.9%

      

Digicel Group Ltd.,

      

8.25%, 9/30/20(1)

     35,635        30,574  

Millicom International Cellular S.A.,

      

6.00%, 3/15/25(1)

     32,300        31,735  

Wind Acquisition Finance S.A.,

      

7.38%, 4/23/21(1)

     24,460        25,438  
  

 

 

     

 

 

  
        87,747  
     

 

 

  

Wireline Telecommunications Services - 0.3%

      

Columbus Cable Barbados Ltd.,

      

7.38%, 3/30/21(1)

     14,921        15,878  
  

 

 

     

 

 

  

Total Foreign Issuer Bonds

(Cost $1,118,900)

         1,150,184  
     

 

 

  

 

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

TERM LOANS - 2.5%(5)

     

Consumer Services - 0.5%

      

Trugreen L.P., Initial Term Loan,

      

6.50%, 4/13/23

    $ 22,555      $ 22,837  
  

 

 

     

 

 

  

Department Stores - 0.3%

      

J.C. Penney Corp, Inc., Loan,

      

5.25%, 6/23/23

      14,118        14,183  
  

 

 

     

 

 

  

Machinery - 0.3%

      

Manitowoc Foodservice, Inc., Term B Loan,

      

5.75%, 3/3/23

      16,923        17,191  
  

 

 

     

 

 

  

Refining & Marketing - 0.7%

      

CITGO Holdings, Inc., Term Loan,

      

9.50%, 5/12/18

      9,955        10,074  

Gulf Finance LLC, Tranche B Term Loan,

      

6.25%, 8/25/23

      22,020        22,130  
  

 

 

     

 

 

  
        32,204  
     

 

 

  

Retail - 0.2%

      

Neiman Marcus Group Ltd. LLC, Other Term Loan,

      

4.25%, 10/25/20

      9,873        8,581  
  

 

 

     

 

 

  

Retail - Consumer Discretionary - 0.5%

      

Bass Pro Group LLC, Initial Term Loan,

      

12/15/23(6)

     6,100        6,042  

5.97%, 12/15/23

      17,800        17,632  
  

 

 

     

 

 

  
        23,674  
     

 

 

  

Total Term Loans

(Cost $118,358)

         118,670  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

PREFERRED STOCKS - 0.7%

      

Banks - 0.7%

      

GMAC Capital Trust I

      1,331,138      $ 33,811  
  

 

 

     

 

 

  

Total Preferred Stocks

(Cost $33,469)

         33,811  
     

 

 

  

INVESTMENT COMPANIES - 3.2%

 

   

Northern Institutional Funds - Government Assets Portfolio, 0.32%(7) (8)

      146,851,951        146,852  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $146,852)

         146,852  
     

 

 

  

Total Investments - 99.3%

(Cost $4,510,913)

         4,608,508  
     

 

 

  

Other Assets less Liabilities - 0.7%

         32,787  
     

 

 

  

NET ASSETS - 100.0%

       $ 4,641,295  
     

 

 

  

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(2) Security is a payment in-kind bond (PIK), distributions received in-kind unless otherwise noted in the description.
(3) Restricted security that has been deemed illiquid. At December 31, 2016, the value of this restricted illiquid security amounted to approximately $4,000,000 or 0.1% of net assets. Additional information on this restricted illiquid security is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

JPR Royalty Sub LLC,

      

14.00%, 9/1/20

      3/10/11      $
 8,000
  

 

(4) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the perpetual call date.
(5) Variable rate security. Rate as of December 31, 2016 is disclosed.
(6) Position is unsettled. Contract rate was not determined at December 31, 2016 and does not take effect until settlement date.
(7) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(8) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

 

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD FIXED INCOME FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

BBB

      2.9 % 

BB

      26.3  

B

      50.5  

CCC

      15.9  

Not Rated

      1.3  

Cash Equivalents

      3.1  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Corporate Bonds(1)

   $ —        $ 3,158,991      $ —        $ 3,158,991  

Foreign Issuer Bonds(1)

     —          1,150,184        —          1,150,184  

Term Loans(1)

     —          118,670        —          118,670  

Preferred Stocks(1)

     33,811        —          —          33,811  

Investment Companies

      146,852        —          —          146,852  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 180,663      $ 4,427,845      $ —        $ 4,608,508  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 4,521,634  
  

 

 

  

Gross tax appreciation of investments

    $ 130,426  

Gross tax depreciation of investments

      (43,552 ) 
  

 

 

  

Net tax appreciation of investments

    $ 86,874  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016,were as follows:

 

AFFILIATE

    VALUE
BEGINNING
OF PERIOD
(000S)		      PURCHASE
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE,
END OF
PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 265,422      $ 2,363,600      $ 2,482,170      $ 303      $ 146,852  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

SHORT BOND FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 21.0%

      

Automobile - 3.5%

      

Carmax Auto Owner Trust, Series 2016-3, Class A3

      

1.39%, 5/17/21

    $ 3,570      $ 3,546  

CarMax Auto Owner Trust, Series 2016-4, Class A3

      

1.40%, 8/15/21

      4,565        4,516  

Honda Auto Receivables Owner Trust, Series 2016-4 , Class A3

      

1.21%, 12/18/20

      4,565        4,529  

Nissan Auto Receivables Owner Trust, Series 2016-B, Class A3

      

1.32%, 1/15/21

      1,235        1,228  

Nissan Auto Receivables Owner Trust, Series 2016-C, Class A3

      

1.18%, 1/15/21

      2,120        2,100  

Toyota Auto Receivables, Series 2016-C, Class A3

      

1.14%, 8/17/20

      945        939  
  

 

 

     

 

 

  
        16,858  
     

 

 

  

Commercial Mortgage-Backed Securities - 7.3%

      

Commercial Mortgage Trust, Series 2013-CR6, Class A2

      

2.12%, 3/10/46

      2,690        2,707  

Commercial Mortgage Trust, Series 2014-CR16, Class A2

      

3.04%, 4/10/47

      2,230        2,280  

Commercial Mortgage Trust, Series 2014-CR19, Class A2

      

2.97%, 8/10/47

      490        501  

Commercial Mortgage Trust, Series 2014-LC15, Class A2

      

2.84%, 4/10/47

      5,375        5,479  

Commercial Mortgage Trust, Series 2015-PC1, Class A2

      

3.15%, 7/10/50

      1,645        1,688  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C14, Class A2

      

3.02%, 8/15/46

      4,690        4,789  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C16, Class A2

      

3.07%, 12/15/46

      1,180        1,203  

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A2

      

3.05%, 4/15/47

      5,655        5,789  

JPMBB Commercial Mortgage Securities Trust, Series 2015-C29, Class A2

      

2.92%, 5/15/48

      870        890  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A2

      

2.92%, 2/15/47

      700        713  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16, Class A2

      

2.85%, 6/15/47

      980        999  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C17, Class A2

      

3.12%, 8/15/47

      1,672        1,719  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class A2

      

3.10%, 12/15/47

      1,270        1,303  

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C23, Class A2

      

2.98%, 7/15/50

      905        925  

Wells Fargo Commercial Mortgage Trust, Series 2015-NXS1, Class A2

      

2.63%, 5/15/48

      45        46  

Wells Fargo Commercial Mortgage Trust, Series 2015-NXS2, Class A2

      

3.02%, 7/15/58

      2,535        2,596  

WFRBS Commercial Mortgage Trust, Series 2013-UBS1, Class A2

      

2.93%, 3/15/46

      520        530  

WFRBS Commercial Mortgage Trust, Series 2014-C20, Class A2

      

3.04%, 5/15/47

      1,080        1,106  
  

 

 

     

 

 

  
        35,263  
     

 

 

  

Credit Card - 8.1%

      

Capital One Multi-Asset Execution Trust, Series 2016-A4, Class A4

      

1.33%, 6/15/22

      5,000        4,933  

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 21.0% continued

      

Credit Card - 8.1% continued

      

Capital One Multi-Asset Execution Trust, Series 2016-A6, Class A

      

1.82%, 9/15/22

    $ 4,630      $ 4,618  

Chase Issuance Trust, Series 2016-A2, Class A

      

1.37%, 6/15/21

      5,330        5,279  

Chase Issuance Trust, Series 2016-A5, Class A5

      

1.27%, 7/15/21

      4,614        4,552  

Citibank Credit Card Issuance Trust, Series 2016-A1, Class A1

      

1.75%, 11/19/21

      4,575        4,555  

Discover Card Execution Note Trust, Series 2016-A1, Class A1

      

1.64%, 7/15/21

      5,725        5,724  

Discover Card Execution Note Trust, Series 2016-A4, Class A4

      

1.39%, 3/15/22

      4,380        4,330  

Synchrony Credit Card Master Note Trust, Series 2016-1, Class A

      

2.04%, 3/15/22

      4,825        4,845  
  

 

 

     

 

 

  
        38,836  
     

 

 

  

Other - 2.1%

      

CNH Equipment Trust, Series 2016-A, Class A3

      

1.48%, 4/15/21

      4,960        4,935  

CNH Equipment Trust, Series 2016-B, Class A3

      

1.63%, 8/15/21

      1,285        1,280  

John Deere Owner Trust, Series 2016-A, Class A3

      

1.36%, 4/15/20

      4,055        4,044  
  

 

 

     

 

 

  
        10,259  
     

 

 

  

Total Asset-Backed Securities

(Cost $101,800)

         101,216  
     

 

 

  

CORPORATE BONDS - 49.9%

      

Aerospace & Defense - 1.1%

      

Boeing Capital Corp.,

      

2.90%, 8/15/18

      605        618  

Lockheed Martin Corp.,

      

1.85%, 11/23/18

      1,100        1,105  

TransDigm, Inc.,

      

6.00%, 7/15/22

      750        780  

United Technologies Corp.,

      

1.80%, 6/1/17

      220        221  

1.78%, 5/4/18(1)

      630        630  

1.50%, 11/1/19

      1,900        1,886  
  

 

 

     

 

 

  
        5,240  
     

 

 

  

Auto Parts Manufacturing - 0.8%

      

American Axle & Manufacturing, Inc.,

      

6.25%, 3/15/21

      1,300        1,342  

Goodyear Tire & Rubber (The) Co.,

      

7.00%, 5/15/22

      2,490        2,627  
  

 

 

     

 

 

  
        3,969  
     

 

 

  

Automobiles Manufacturing - 6.4%

      

American Honda Finance Corp.,

      

1.45%, 9/20/17(2)

      1,690        1,694  

1.55%, 12/11/17

      82        82  

1.34%, 7/13/18(2)

      430        431  

1.70%, 2/22/19

      725        722  

1.20%, 7/12/19

      820        805  

2.25%, 8/15/19

      723        730  

Daimler Finance North America LLC,

      

1.60%, 8/3/17(3)

      410        410  

1.35%, 3/2/18(2) (3)

      350        351  

1.65%, 3/2/18(3)

      1,215        1,213  

Ford Motor Credit Co. LLC,

      

4.25%, 2/3/17

      3,010        3,016  

1.68%, 9/8/17

      2,000        1,997  

2.55%, 10/5/18

      3,325        3,344  

2.94%, 1/8/19

      3,200        3,237  

General Motors Financial Co., Inc.,

      

2.35%, 10/4/19

      1,875        1,853  

Hyundai Capital America,

      

2.40%, 10/30/18(3)

      1,525        1,531  

2.00%, 7/1/19(3)

      1,000        992  

Nissan Motor Acceptance Corp.,

      

2.00%, 3/8/19(3)

      2,545        2,539  

Toyota Motor Credit Corp.,

      

1.34%, 7/13/18(2)

      534        536  

2.00%, 10/24/18

      1,100        1,107  

1.70%, 2/19/19

      1,055        1,052  

1.40%, 5/20/19

      660        653  

1.55%, 10/18/19

      1,860        1,837  

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 49.9% continued

      

Automobiles Manufacturing - 6.4% continued

      

Volkswagen Group of America Finance LLC,

      

1.60%, 11/20/17(3)

    $ 1,040      $ 1,037  
  

 

 

     

 

 

  
        31,169  
     

 

 

  

Banks - 5.2%

      

Bank of America N.A.,

      

1.26%, 6/15/17(2)

      1,160        1,159  

1.65%, 3/26/18

      1,665        1,667  

2.05%, 12/7/18

      1,225        1,232  

BB&T Corp.,

      

1.57%, 6/15/20(2)

      1,175        1,177  

Capital One N.A.,

      

1.65%, 2/5/18

      2,310        2,306  

Discover Bank,

      

2.60%, 11/13/18

      1,670        1,684  

HSBC USA, Inc.,

      

2.00%, 8/7/18

      1,500        1,500  

JPMorgan Chase Bank N.A.,

      

6.00%, 10/1/17

      600        619  

1.59%, 9/23/19(2)

      1,915        1,916  

1.65%, 9/23/19

      1,660        1,643  

PNC Bank N.A.,

      

1.50%, 2/23/18

      1,375        1,373  

1.80%, 11/5/18

      2,115        2,119  

1.95%, 3/4/19

      800        801  

SunTrust Bank,

      

1.35%, 2/15/17

      665        665  

US Bank N.A.,

      

1.40%, 4/26/19

      1,560        1,543  

Wells Fargo Bank N.A.,

      

1.62%, 1/22/18(2)

      990        995  

1.75%, 5/24/19

      2,080        2,070  

2.15%, 12/6/19

      860        859  
  

 

 

     

 

 

  
        25,328  
     

 

 

  

Biotechnology - 0.4%

      

Celgene Corp.,

      

2.13%, 8/15/18

      935        939  

Gilead Sciences, Inc.,

      

1.85%, 9/4/18

      940        943  
  

 

 

     

 

 

  
        1,882  
     

 

 

  

Cable & Satellite - 0.7%

      

CCO Holdings LLC/CCO Holdings Capital Corp.,

      

5.25%, 3/15/21

      500        515  

Comcast Corp.,

      

6.30%, 11/15/17

      1,275        1,328  

5.70%, 5/15/18

      1,265        1,335  
  

 

 

     

 

 

  
        3,178  
     

 

 

  

Casinos & Gaming - 0.3%

      

GLP Capital L.P./GLP Financing II, Inc.,

      

4.38%, 4/15/21

      1,320        1,370  
  

 

 

     

 

 

  

Chemicals - 0.2%

      

Sherwin-Williams (The) Co.,

      

1.35%, 12/15/17

      430        429  

Tronox Finance LLC,

      

7.50%, 3/15/22(3)

      775        723  
  

 

 

     

 

 

  
        1,152  
     

 

 

  

Commercial Finance - 1.1%

      

Air Lease Corp.,

      

5.63%, 4/1/17

      1,180        1,191  

2.13%, 1/15/20

      1,860        1,832  

International Lease Finance Corp.,

      

6.25%, 5/15/19

      2,039        2,192  
  

 

 

     

 

 

  
        5,215  
     

 

 

  

Communications Equipment - 0.4%

      

Apple, Inc.,

      

1.13%, 5/3/18(2)

      838        840  

Cisco Systems, Inc.,

      

1.40%, 2/28/18

      810        811  

1.43%, 3/1/19(2)

      150        151  
  

 

 

     

 

 

  
        1,802  
     

 

 

  

Consumer Finance - 1.1%

      

Ally Financial, Inc.,

      

3.25%, 2/13/18

      1,000        1,005  

American Express Co.,

      

1.51%, 5/22/18(2)

      790        792  

4.90%, 3/15/20(4)

      1,320        1,252  

American Express Credit Corp.,

      

1.88%, 11/5/18

      200        200  

1.70%, 10/30/19

      1,045        1,035  

Synchrony Financial,

      

1.88%, 8/15/17

      955        956  
  

 

 

     

 

 

  
        5,240  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 49.9% continued

      

Consumer Products - 0.4%

      

Kimberly-Clark Corp.,

      

1.40%, 2/15/19

    $ 555      $ 552  

Procter & Gamble (The) Co.,

      

1.90%, 11/1/19

      1,500        1,513  
  

 

 

     

 

 

  
        2,065  
     

 

 

  

Consumer Services - 0.5%

      

ADT (The) Corp.,

      

4.13%, 6/15/23

      545        521  

APX Group, Inc.,

      

6.38%, 12/1/19

      625        643  

Ecolab, Inc.,

      

1.45%, 12/8/17

      140        140  

Prime Security Services Borrower LLC/Prime Finance, Inc.,

      

9.25%, 5/15/23(3)

      500        544  

Service Corp. International,

      

5.38%, 1/15/22

      550        572  
  

 

 

     

 

 

  
        2,420  
     

 

 

  

Containers & Packaging - 0.4%

      

Graphic Packaging International, Inc.,

      

4.75%, 4/15/21

      500        525  

Plastipak Holdings, Inc.,

      

6.50%, 10/1/21(3)

      650        679  

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) S.A.,

      

5.75%, 10/15/20

      750        774  

8.25%, 2/15/21

      173        179  
  

 

 

     

 

 

  
        2,157  
     

 

 

  

Diversified Banks - 3.6%

      

Bank of America Corp.,

      

5.75%, 12/1/17

      165        171  

2.00%, 1/11/18

      1,765        1,769  

2.07%, 3/22/18(2)

      800        805  

Citigroup, Inc.,

      

1.80%, 2/5/18

      1,795        1,794  

1.70%, 4/27/18

      820        818  

2.05%, 12/7/18

      1,145        1,145  

2.05%, 6/7/19

      1,295        1,290  

5.80%, 11/15/19(4)

      3,515        3,546  

JPMorgan Chase & Co.,

      

1.78%, 1/25/18(2)

      759        764  

1.70%, 3/1/18

      428        428  

7.90%, 4/30/18(4)

      1,370        1,418  

5.30%, 5/1/20(4)

      875        893  

Wells Fargo & Co.,

      

5.63%, 12/11/17

      890        923  

7.98%, 3/15/18(4)

      1,370        1,432  
  

 

 

     

 

 

  
        17,196  
     

 

 

  

Electrical Equipment Manufacturing - 1.2%

      

General Electric Co.,

      

1.25%, 5/15/17

      39        39  

5.25%, 12/6/17

      2,470        2,559  

Honeywell International, Inc.,

      

1.40%, 10/30/19

      2,510        2,487  

Roper Technologies, Inc.,

      

1.85%, 11/15/17

      560        561  
  

 

 

     

 

 

  
        5,646  
     

 

 

  

Entertainment Content - 0.2%

      

Walt Disney (The) Co.,

      

1.65%, 1/8/19

      555        555  

0.88%, 7/12/19

      420        412  
  

 

 

     

 

 

  
        967  
     

 

 

  

Exploration & Production - 0.3%

      

ConocoPhillips Co.,

      

1.50%, 5/15/18

      940        937  

QEP Resources, Inc.,

      

6.88%, 3/1/21

      410        435  
  

 

 

     

 

 

  
        1,372  
     

 

 

  

Financial Services - 2.9%

      

BlackRock, Inc.,

      

6.25%, 9/15/17

      1,775        1,838  

Charles Schwab (The) Corp.,

      

1.50%, 3/10/18

      1,435        1,435  

4.63%, 3/1/22(4)

      1,070        1,006  

Goldman Sachs Group (The), Inc.,

      

1.92%, 4/25/19(2)

      1,290        1,299  

2.00%, 4/25/19

      615        613  

2.55%, 10/23/19

      235        237  

1.76%, 12/13/19(2)

      1,145        1,145  

2.30%, 12/13/19

      1,555        1,553  

5.38%, 5/10/20(4)

      400        404  

 

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 49.9% continued

 

Financial Services - 2.9% continued

      

Morgan Stanley,

      

2.26%, 2/1/19(2)

    $ 1,650      $ 1,680  

2.45%, 2/1/19

      2,655        2,673  
  

 

 

     

 

 

  
        13,883  
     

 

 

  

Food & Beverage - 2.9%

      

Anheuser-Busch InBev Finance, Inc.,

      

1.29%, 2/1/19(2)

      1,500        1,502  

1.90%, 2/1/19

      1,110        1,112  

Anheuser-Busch InBev Worldwide, Inc.,

      

1.38%, 7/15/17

      3,225        3,228  

Coca-Cola (The) Co.,

      

1.38%, 5/30/19

      1,045        1,038  

Constellation Brands, Inc.,

      

3.88%, 11/15/19

      1,475        1,527  

General Mills, Inc.,

      

1.40%, 10/20/17

      1,000        1,001  

Lamb Weston Holdings, Inc.,

      

4.88%, 11/1/26(3)

      570        564  

PepsiCo, Inc.,

      

1.25%, 4/30/18

      835        834  

2.25%, 1/7/19

      520        526  

1.35%, 10/4/19

      2,606        2,586  

Smithfield Foods, Inc.,

      

5.25%, 8/1/18(3)

      301        304  
  

 

 

     

 

 

  
        14,222  
     

 

 

  

Hardware - 0.0%

      

NetApp, Inc.,

      

2.00%, 12/15/17

      162        162  
     

 

 

  

Health Care Facilities & Services - 0.1%

      

Cardinal Health, Inc.,

      

1.90%, 6/15/17

      70        70  

2.40%, 11/15/19

      575        579  
  

 

 

     

 

 

  
        649  
     

 

 

  

Home & Office Products Manufacturing - 0.3%

      

Newell Brands, Inc.,

      

2.15%, 10/15/18

      1,405        1,412  
  

 

 

     

 

 

  

Home Improvement - 0.6%

      

ServiceMaster (The) Co. LLC,

      

5.13%, 11/15/24(3)

      775        787  

Stanley Black & Decker, Inc.,

      

2.45%, 11/17/18

      900        908  

Whirlpool Corp.,

      

1.65%, 11/1/17

      1,000        1,001  
  

 

 

     

 

 

  
        2,696  
     

 

 

  

Homebuilders - 0.2%

      

Lennar Corp.,

      

4.13%, 12/1/18

      1,000        1,023  
  

 

 

     

 

 

  

Industrial Other - 0.4%

      

SBA Tower Trust,

      

2.93%, 12/11/17(3)

      605        606  

United Rentals North America, Inc.,

      

7.63%, 4/15/22

      175        184  

6.13%, 6/15/23

      1,035        1,097  
  

 

 

     

 

 

  
        1,887  
     

 

 

  

Integrated Oils - 1.5%

      

Chevron Corp.,

      

1.34%, 11/9/17

      1,265        1,264  

1.35%, 11/15/17

      820        821  

1.10%, 12/5/17

      1,333        1,330  

Exxon Mobil Corp.,

      

1.44%, 3/1/18

      805        806  

1.31%, 3/6/18

      2,130        2,130  

1.71%, 3/1/19

      815        817  
  

 

 

     

 

 

  
        7,168  
     

 

 

  

Life Insurance - 0.1%

      

New York Life Global Funding,

      

1.55%, 11/2/18(3)

      445        444  
     

 

 

  

Machinery Manufacturing - 2.4%

      

Caterpillar Financial Services Corp.,

      

1.25%, 11/6/17

      595        594  

1.62%, 2/23/18(2)

      1,680        1,688  

1.80%, 11/13/18

      860        860  

1.35%, 5/18/19

      1,320        1,302  

Illinois Tool Works, Inc.,

      

1.95%, 3/1/19

      1,810        1,819  

John Deere Capital Corp.,

      

1.13%, 6/12/17

      56        56  

1.18%, 12/15/17(2)

      200        200  

1.17%, 1/16/18(2)

      200        200  

1.60%, 7/13/18

      955        955  

 

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 49.9% continued

 

Machinery Manufacturing - 2.4% continued

 

1.95%, 3/4/19

    $ 1,230      $ 1,234  

1.25%, 10/9/19

      975        958  

1.26%, 10/9/19(2)

      1,625        1,625  
  

 

 

     

 

 

  
        11,491  
     

 

 

  

Managed Care - 0.7%

      

Aetna, Inc.,

      

1.70%, 6/7/18

      410        410  

Anthem, Inc.,

      

1.88%, 1/15/18

      50        50  

Centene Corp.,

      

4.75%, 1/15/25

      745        727  

UnitedHealth Group, Inc.,

      

1.40%, 10/15/17

      65        65  

1.40%, 12/15/17

      605        605  

1.90%, 7/16/18

      885        889  

1.70%, 2/15/19

      795        793  
  

 

 

     

 

 

  
        3,539  
     

 

 

  

Mass Merchants - 0.3%

      

Costco Wholesale Corp.,

      

1.13%, 12/15/17

      145        145  

Target Corp.,

      

5.38%, 5/1/17

      625        634  

Wal-Mart Stores, Inc.,

      

1.13%, 4/11/18

      692        690  
  

 

 

     

 

 

  
        1,469  
     

 

 

  

Medical Equipment & Devices Manufacturing - 0.9%

      

Becton Dickinson and Co.,

      

1.80%, 12/15/17

      781        783  

Danaher Corp.,

      

1.65%, 9/15/18

      555        556  

Medtronic, Inc.,

      

1.50%, 3/15/18

      945        945  

Zimmer Biomet Holdings, Inc.,

      

2.00%, 4/1/18

      2,000        2,002  
  

 

 

     

 

 

  
        4,286  
     

 

 

  

Oil & Gas Services & Equipment - 0.4%

      

Cameron International Corp.,

      

1.40%, 6/15/17

      1,815        1,814  
  

 

 

     

 

 

  

Pharmaceuticals - 0.9%

      

Bristol-Myers Squibb Co.,

      

1.75%, 3/1/19

      380        379  

Eli Lilly & Co.,

      

1.25%, 3/1/18

      990        990  

Johnson & Johnson,

      

1.13%, 3/1/19

      1,100        1,091  

Pfizer, Inc.,

      

1.20%, 6/1/18

      1,250        1,247  

2.10%, 5/15/19

      835        843  
  

 

 

     

 

 

  
        4,550  
     

 

 

  

Pipeline - 0.7%

      

Enterprise Products Operating LLC,

      

1.65%, 5/7/18

      1,365        1,361  

Regency Energy Partners L.P./Regency Energy Finance Corp.,

      

5.88%, 3/1/22

      760        836  

Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,

      

5.25%, 5/1/23

      775        783  

Tesoro Logistics L.P./Tesoro Logistics Finance Corp.,

      

5.88%, 10/1/20

      357        368  
  

 

 

     

 

 

  
        3,348  
     

 

 

  

Property & Casualty Insurance - 0.6%

      

Berkshire Hathaway Finance Corp.,

      

1.45%, 3/7/18

      730        731  

1.50%, 3/7/18(2)

      216        217  

Berkshire Hathaway, Inc.,

      

2.10%, 8/14/19

      2,100        2,119  
  

 

 

     

 

 

  
        3,067  
     

 

 

  

Publishing & Broadcasting - 0.5%

      

21st Century Fox America, Inc.,

      

7.25%, 5/18/18

      460        493  

CBS Radio, Inc.,

      

7.25%, 11/1/24(3)

      765        803  

NBCUniversal Enterprise, Inc.,

      

1.57%, 4/15/18(2) (3)

      440        443  

5.25%, 3/19/21(3) (5)

      814        855  
  

 

 

     

 

 

  
        2,594  
     

 

 

  

Real Estate - 0.8%

      

ERP Operating L.P.,

      

5.75%, 6/15/17

      1,500        1,530  

ESH Hospitality, Inc.,

      

5.25%, 5/1/25(3)

      760        756  

 

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 49.9% continued

 

Real Estate - 0.8% continued

      

Ventas Realty L.P.,

      

1.25%, 4/17/17

    $ 895      $ 895  

WEA Finance LLC/Westfield UK & Europe Finance PLC,

      

1.75%, 9/15/17(3)

      530        530  
  

 

 

     

 

 

  
        3,711  
     

 

 

  

Refining & Marketing - 0.3%

      

PBF Holding Co. LLC/PBF Finance Corp.,

      

8.25%, 2/15/20

      790        810  

Phillips 66,

      

2.95%, 5/1/17

      390        392  

Western Refining, Inc.,

      

6.25%, 4/1/21

      225        233  
  

 

 

     

 

 

  
        1,435  
     

 

 

  

Restaurants - 0.3%

      

McDonald’s Corp.,

      

5.30%, 3/15/17

      785        791  

2.10%, 12/7/18

      785        790  
  

 

 

     

 

 

  
        1,581  
     

 

 

  

Retail - Consumer Discretionary - 1.2%

      

ERAC USA Finance LLC,

      

6.38%, 10/15/17(3) (6)

      945        979  

Home Depot (The), Inc.,

      

2.25%, 9/10/18

      460        466  

2.00%, 6/15/19

      915        923  

Lowe’s Cos., Inc.,

      

1.15%, 4/15/19

      1,490        1,472  

Penske Automotive Group, Inc.,

      

5.50%, 5/15/26

      950        938  

PetSmart, Inc.,

      

7.13%, 3/15/23(3)

      825        842  
  

 

 

     

 

 

  
        5,620  
     

 

 

  

Semiconductors - 0.3%

      

Intel Corp.,

      

1.35%, 12/15/17

      811        812  

KLA-Tencor Corp.,

      

2.38%, 11/1/17

      510        513  
  

 

 

     

 

 

  
        1,325  
     

 

 

  

Software & Services - 0.7%

      

International Business Machines Corp.,

      

5.70%, 9/14/17

      440        453  

1.07%, 2/6/18(2)

      250        250  

1.80%, 5/17/19

      870        870  

Microsoft Corp.,

      

1.30%, 11/3/18

      1,065        1,064  

Oracle Corp.,

      

1.46%, 1/15/19(2)

      555        560  

2.25%, 10/8/19

      306        310  
  

 

 

     

 

 

  
        3,507  
     

 

 

  

Supermarkets & Pharmacies - 1.2%

      

CVS Health Corp.,

      

1.90%, 7/20/18

      1,395        1,400  

Rite Aid Corp.,

      

6.13%, 4/1/23(3)

      780        839  

Walgreens Boots Alliance, Inc.,

      

1.75%, 11/17/17

      1,390        1,393  

1.75%, 5/30/18

      2,015        2,017  
  

 

 

     

 

 

  
        5,649  
     

 

 

  

Tobacco - 0.6%

      

Philip Morris International, Inc.,

      

1.25%, 11/9/17

      855        854  

Reynolds American, Inc.,

      

2.30%, 6/12/18

      1,850        1,862  
  

 

 

     

 

 

  
        2,716  
     

 

 

  

Transportation & Logistics - 0.5%

      

PACCAR Financial Corp.,

      

1.75%, 8/14/18

      1,090        1,095  

1.65%, 2/25/19

      1,320        1,315  
  

 

 

     

 

 

  
        2,410  
     

 

 

  

Utilities - 1.1%

      

CenterPoint Energy Resources Corp.,

      

6.13%, 11/1/17

      45        47  

NextEra Energy Capital Holdings, Inc.,

      

1.59%, 6/1/17

      920        921  

2.06%, 9/1/17

      1,065        1,070  

Public Service Electric & Gas Co.,

      

2.30%, 9/15/18

      31        31  

Public Service Enterprise Group, Inc.,

      

1.60%, 11/15/19

      1,935        1,907  

 

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 49.9% continued

 

Utilities - 1.1% continued

      

Southern (The) Co.,

      

1.30%, 8/15/17

    $ 1,150      $ 1,149  

Southern Power Co.,

      

1.85%, 12/1/17

      110        110  
  

 

 

     

 

 

  
        5,235  
     

 

 

  

Waste & Environment Services & Equipment - 0.3%

      

Advanced Disposal Services, Inc.,

      

5.63%, 11/15/24(3)

      760        756  

Clean Harbors, Inc.,

      

5.25%, 8/1/20

      725        742  
  

 

 

     

 

 

  
        1,498  
     

 

 

  

Wireless Telecommunications Services - 1.3%

      

AT&T, Inc.,

      

1.60%, 2/15/17

      27        27  

1.40%, 12/1/17

      1,200        1,197  

Verizon Communications, Inc.,

      

1.10%, 11/1/17

      1,695        1,691  

3.65%, 9/14/18

      1,055        1,090  

1.28%, 8/15/19(2)

      1,465        1,464  

1.38%, 8/15/19

      645        635  
  

 

 

     

 

 

  
        6,104  
     

 

 

  

Wireline Telecommunications Services - 0.6%

      

Frontier Communications Corp.,

      

8.88%, 9/15/20

      740        788  

6.25%, 9/15/21

      1,500        1,421  

Zayo Group LLC/Zayo Capital, Inc.,

      

6.38%, 5/15/25

      800        836  
  

 

 

     

 

 

  
        3,045  
     

 

 

  

Total Corporate Bonds

(Cost $240,996)

         240,908  
     

 

 

  

FOREIGN ISSUER BONDS - 12.2%

      

Banks - 6.5%

      

Australia & New Zealand Banking Group Ltd.,

      

2.00%, 11/16/18

      1,150        1,153  

Barclays Bank PLC,

      

1.49%, 2/17/17(2)

      655        655  

Commonwealth Bank of Australia,

      

1.38%, 9/6/18(3)

      3,035        3,015  

1.75%, 11/7/19(3)

      1,325        1,314  

Credit Suisse A.G.,

      

1.58%, 1/29/18(2)

      250        250  

1.70%, 4/27/18

      1,645        1,641  

ING Bank N.V.,

      

1.80%, 3/16/18(3)

      1,595        1,593  

2.05%, 8/17/18(3)

      1,550        1,551  

Macquarie Bank Ltd.,

      

1.60%, 10/27/17(3)

      2,610        2,610  

Mizuho Bank Ltd.,

      

1.80%, 3/26/18(3)

      2,610        2,606  

National Australia Bank Ltd.,

      

2.75%, 3/9/17

      285        286  

National Bank of Canada,

      

2.10%, 12/14/18

      1,425        1,431  

Skandinaviska Enskilda Banken AB,

      

1.50%, 9/13/19

      1,300        1,278  

1.53%, 9/13/19(2) (3)

      2,040        2,041  

Sumitomo Mitsui Banking Corp.,

      

1.95%, 7/23/18

      1,410        1,409  

1.76%, 10/19/18

      1,390        1,384  

Svenska Handelsbanken AB,

      

1.44%, 9/6/19(2)

      1,520        1,520  

Toronto-Dominion Bank (The),

      

1.63%, 3/13/18

      400        401  

1.45%, 9/6/18

      1,265        1,259  

1.95%, 1/22/19

      810        811  

Westpac Banking Corp.,

      

1.95%, 11/23/18

      1,310        1,312  

1.47%, 8/19/19(2)

      1,990        1,992  
  

 

 

     

 

 

  
        31,512  
     

 

 

  

Cable & Satellite - 0.3%

      

Altice Financing S.A.,

      

6.63%, 2/15/23(3)

      650        668  

Ziggo Secured Finance B.V.,

      

5.50%, 1/15/27(3)

      755        736  
  

 

 

     

 

 

  
        1,404  
     

 

 

  

Commercial Finance - 0.2%

      

AerCap Ireland Capital Ltd./AerCap Global Aviation Trust,

      

2.75%, 5/15/17

      1,090        1,091  
  

 

 

     

 

 

  

 

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 12.2% continued

      

Containers & Packaging - 0.1%

      

Ardagh Packaging Finance

      

PLC/Ardagh Holdings USA, Inc.,

      

7.25%, 5/15/24(3)

    $ 530      $ 558  
  

 

 

     

 

 

  

Diversified Banks - 1.4%

      

Bank of Montreal,

      

1.80%, 7/31/18

      875        876  

Bank of Nova Scotia (The),

      

1.71%, 1/15/19(2)

      310        312  

BNP Paribas S.A.,

      

2.38%, 9/14/17

      565        569  

HSBC Holdings PLC,

      

5.63%, 1/17/20(4)

      1,705        1,682  

Nordea Bank AB,

      

1.88%, 9/17/18(3)

      1,455        1,454  

5.50%, 9/23/19(3) (4)

      1,430        1,421  

Royal Bank of Canada,

      

1.43%, 7/30/18(2)

      620        621  
  

 

 

     

 

 

  
        6,935  
     

 

 

  

Electrical Equipment Manufacturing - 1.0%

      

Johnson Controls International PLC,

      

1.40%, 11/2/17

      695        696  

Siemens Financieringsmaatschappij N.V.,

      

1.28%, 9/13/19(2) (3)

      1,670        1,667  

1.30%, 9/13/19(3)

      1,670        1,638  

Tyco Electronics Group S.A.,

      

6.55%, 10/1/17

      660        685  
  

 

 

     

 

 

  
        4,686  
     

 

 

  

Financial Services - 0.2%

      

Mitsubishi UFJ Trust & Banking Corp.,

      

1.60%, 10/16/17(3)

      895        894  
  

 

 

     

 

 

  

Food & Beverage - 1.0%

      

Danone S.A.,

      

1.69%, 10/30/19(3)

      1,775        1,753  

Diageo Capital PLC,

      

5.75%, 10/23/17

      595        615  

Pernod Ricard S.A.,

      

2.95%, 1/15/17(3)

      756        756  

Suntory Holdings Ltd.,

      

1.65%, 9/29/17(3)

      1,495        1,496  
  

 

 

     

 

 

  
        4,620  
     

 

 

  

Integrated Oils - 0.8%

      

BP Capital Markets PLC,

      

1.85%, 5/5/17

      1,505        1,508  

Shell International Finance B.V.,

      

1.25%, 11/10/17

      1,110        1,110  

1.38%, 9/12/19

      1,060        1,045  

Total Capital International S.A.,

      

1.55%, 6/28/17

      275        276  
  

 

 

     

 

 

  
        3,939  
     

 

 

  

Machinery Manufacturing - 0.2%

      

Pentair Finance S.A.,

      

1.88%, 9/15/17

      1,070        1,072  
  

 

 

     

 

 

  

Pharmaceuticals - 0.4%

      

Actavis Funding SCS,

      

2.35%, 3/12/18

      1,385        1,393  

Sanofi,

      

1.25%, 4/10/18

      535        534  
  

 

 

     

 

 

  
        1,927  
     

 

 

  

Tobacco - 0.1%

      

Imperial Brands Finance PLC,

      

2.05%, 7/20/18(3)

      380        380  
  

 

 

     

 

 

  

Total Foreign Issuer Bonds

(Cost $59,171)

         59,018  
     

 

 

  

U.S. GOVERNMENT AGENCIES - 0.9%(7)

      

Fannie Mae - 0.1%

      

Pool #555649,

      

7.50%, 10/1/32

      29        33  

Pool #893082

      

3.15%, 9/1/36(2)

      183        194  

Pool #AD0915

      

5.50%, 12/1/38

      63        71  

Pool #AI3471,

      

5.00%, 6/1/41

      207        227  
  

 

 

     

 

 

  
        525  
     

 

 

  

Freddie Mac - 0.0%

      

Pool #1B3617,

      

3.21%, 10/1/37(2)

      161        171  
  

 

 

     

 

 

  

Freddie Mac Gold - 0.1%

      

Pool #A92650

      

5.50%, 6/1/40

      285        316  
  

 

 

     

 

 

  

 

 

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT BOND FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 0.9%(7) continued

 

Government National Mortgage Association - 0.7%

 

Series 2011-41, Class PA,

      

4.00%, 1/20/41

    $ 958      $ 980  

Series 2012-123, Class A,

      

1.04%, 7/16/46

      1,811        1,709  

Series 2013-12, Class KA,

      

1.50%, 12/16/43

      54        54  

Series 2013-17, Class AF,

      

1.21%, 11/16/43

      677        660  
  

 

 

     

 

 

  
        3,403  
     

 

 

  

Total U.S. Government Agencies

(Cost $4,505)

         4,415  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 12.6%

      

U.S. Treasury Inflation Indexed Notes - 4.9%

      

1.38%, 7/15/18

      10,035        11,672  

0.13%, 4/15/19

      11,235        11,734  
  

 

 

     

 

 

  
        23,406  
     

 

 

  

U.S. Treasury Notes - 7.7%

      

1.25%, 12/31/18

      22,905        22,928  

1.38%, 12/15/19

      14,335        14,301  
  

 

 

     

 

 

  
        37,229  
     

 

 

  

Total U.S. Government Obligations

(Cost $60,600)

         60,635  
     

 

 

  

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 7.8%

 

Northern Institutional Funds - Government Assets Portfolio, 0.32%(8) (9)

      37,471,679      $ 37,472  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $37,472)

         37,472  
     

 

 

  

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.2%

 

U.S. Treasury Bill,

      

0.47%, 2/23/17(10) (11)

    $ 1,000      $ 999  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $1,000)

         999  
     

 

 

  

Total Investments - 104.6%

(Cost $505,544)

         504,663  
     

 

 

  

Liabilities less Other Assets - (4.6%)

         (22,032 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 482,631  
     

 

 

  

 

(1) Step coupon bond. Rate as of December 31, 2016 is disclosed.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed.
(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(4) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the perpetual call date.
(5) Perpetual call security.
(6) Restricted security that has been deemed illiquid. At December 31, 2016, the value of this restricted illiquid security amounted to approximately $979,000 or 0.2% of net assets. Additional information on this restricted illiquid security is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

ERAC USA Finance LLC,

      

6.38%, 10/15/17

      12/16/16      $ 980  

 

(7) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(8) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(9) 7-day yield as of December 31, 2016 is disclosed.
(10) Discount rate at the time of purchase.
(11) Security pledged as collateral to cover margin requirements for open futures contracts.

Percentages shown are based on Net Assets.

At Decemeber 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		     NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

5-Year U.S. Treasury Note

      (137 )    $ 16,120        Short        4/17      $ 75  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

FIXED INCOME FUNDS     10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      12.9 % 

U.S. Agency

      0.2  

AAA

      20.6  

AA

      11.0  

A

      22.9  

BBB

      18.0  

BB

      4.4  

B

      2.4  

CCC

      0.3  

Cash Equivalents

      7.3  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Asset-Backed Securities(1)

    $ —        $ 101,216      $ —        $ 101,216  

Corporate Bonds(1)

      —          240,908        —          240,908  

Foreign Issuer Bonds(1)

      —          59,018        —          59,018  

U.S. Government Agencies(1)

      —          4,415        —          4,415  

U.S. Government Obligations(1)

      —          60,635        —          60,635  

Investment Companies

      37,472        —          —          37,472  

Short-Term Investments

      —          999        —          999  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 37,472      $ 467,191      $ —        $ 504,663  
  

 

 

     

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                            

Assets

            

Futures Contracts

    $ 75      $ —        $ —        $ 75  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) Classifications as defined in the Schedule of Investments

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 505,544  
  

 

 

  

Gross tax appreciation of investments

    $ 1,104  

Gross tax depreciation of investments

      (1,985 ) 
  

 

 

  

Net tax depreciation of investments

    $ (881 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 22,235      $ 680,814      $ 665,577      $ 38      $ 37,472  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

Fannie Mae - Federal National Mortgage Association

Freddie Mac - Federal Home Loan Mortgage Corporation

 

NORTHERN FUNDS QUARTERLY REPORT     11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 21.5%(1)

      

Fannie Mae - 10.1%

      

0.88%, 8/2/19

    $ 3,000      $ 2,958  

1.38%, 10/7/21

      1,500        1,459  

Pool #555649,

      

7.50%, 10/1/32

      56        63  

Pool #893082

      

3.15%, 9/1/36(2)

      488        517  

Pool #AB6782,

      

2.50%, 11/1/27

      1,070        1,073  

Pool #AL1869

      

3.00%, 6/1/27

      743        764  

Pool #AO7970,

      

2.50%, 6/1/27

      994        997  

Pool #AQ9360,

      

2.50%, 1/1/28

      2,682        2,690  

Pool #AS7568

      

4.50%, 7/1/46

      4,109        4,429  
  

 

 

     

 

 

  
        14,950  
     

 

 

  

Federal Home Loan Bank - 4.0%

      

Federal Home Loan Banks,

      

1.25%, 1/16/19

      3,000        2,999  

1.88%, 11/29/21

      3,000        2,981  
  

 

 

     

 

 

  
        5,980  
     

 

 

  

Freddie Mac - 2.5%

      

Pool #1J0365

      

3.02%, 4/1/37(2)

      524        555  

Pool #1J2840

      

3.15%, 9/1/37(2)

      1,119        1,192  

Pool #1Q0323

      

3.71%, 5/1/37(2)

      1,871        1,958  

Pool #410092,

      

2.66%, 11/1/24(2)

      7        7  
  

 

 

     

 

 

  
        3,712  
     

 

 

  

Freddie Mac Gold - 1.8%

      

Pool #G08617,

      

4.50%, 11/1/44

      1,083        1,163  

Pool #V60613,

      

2.50%, 9/1/29

      1,502        1,508  
  

 

 

     

 

 

  
        2,671  
     

 

 

  

Government National Mortgage Association - 3.1%

      

Series 2012-123, Class A,

      

1.04%, 7/16/46

      2,117        1,998  

Series 2013-12, Class KA,

      

1.50%, 12/16/43

      531        527  

Series 2013-17,Class AF,

      

1.21%, 11/16/43

      2,157        2,102  
  

 

 

     

 

 

  
        4,627  
     

 

 

  

Total U.S. Government Agencies

(Cost $32,320)

         31,940  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 71.5%

      

U.S. Treasury Inflation Indexed Notes - 5.2%

      

0.13%, 4/15/21

      7,500        7,693  
  

 

 

     

 

 

  

U.S. Treasury Notes - 66.3%

      

1.25%, 12/31/18

      42,640        42,683  

1.38%, 12/15/19

      41,370        41,272  

1.63%, 7/31/20

      1,000        999  

2.00%, 12/31/21

      13,450        13,499  
  

 

 

     

 

 

  
        98,453  
     

 

 

  

Total U.S. Government Obligations

(Cost $106,114)

         106,146  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 43.9%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(3) (4)

      65,195,959      $ 65,196  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $65,196)

         65,196  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.8%

      

U.S. Treasury Bill,

      

0.47%, 2/23/17(5) (6)

    $ 1,150      $ 1,149  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $1,149)

         1,149  
     

 

 

  

Total Investments - 137.7%

(Cost $204,779)

         204,431  
     

 

 

  

Liabilities less Other Assets - (37.7%)

         (55,983 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 148,448  
     

 

 

  

 

(1) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed.

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND continued

 

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(4) 7-day yield as of December 31, 2016 is disclosed.
(5) Discount rate at the time of purchase.
(6) Security pledged as collateral to cover margin requirements for open futures contracts.

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		     NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

5-Year U.S. Treasury Note

      95     $ 11,178        Long        4/17      $ (54 ) 

10-Year U.S. Treasury Note

      (59 )      7,333        Short        3/17        50  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total

               $ (4 ) 
             

 

 

  

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      54.7 % 

U.S. Agency

      13.4  

Cash Equivalents

      31.9  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

U.S. Government Agencies(1)

    $ —       $ 31,940      $ —        $ 31,940  

U.S. Government Obligations(1)

      —         106,146        —          106,146  

Investment Companies

      65,196       —          —          65,196  

Short-Term Investments

      —         1,149        —          1,149  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 65,196     $ 139,235      $ —        $ 204,431  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Assets

           

Futures Contracts

    $ 50     $ —        $ —        $ 50  

Liabilities

           

Futures Contracts

      (54 )      —          —          (54 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Other Financial Instruments

    $ (4 )    $ —        $ —        $ (4 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $   204,779  
  

 

 

  

Gross tax appreciation of investments

    $ 346  

Gross tax depreciation of investments

      (694 ) 
  

 

 

  

Net tax depreciation of investments

    $ (348 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - U.S. Government Portfolio

    $ 15,306      $ 909,910      $ 860,020      $ 29      $ 65,196  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF ABBREVIATIONS & ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

Fannie Mae - Federal National Mortgage Association

Freddie Mac - Federal Home Loan Mortgage Corporation

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 7.0%

      

Automobiles Manufacturing - 1.4%

      

Ford Motor Credit Co. LLC,

      

2.55%, 10/5/18

    $ 2,000      $ 2,011  

General Motors Financial Co., Inc.,

      

2.94%, 1/15/19(1)

      32,000        32,566  

Hyundai Capital America,

      

2.40%, 10/30/18(2)

      12,500        12,552  
  

 

 

     

 

 

  
        47,129  
     

 

 

  

Banks - 1.2%

      

Capital One N.A.,

      

1.65%, 2/5/18

      10,000        9,981  

2.35%, 8/17/18

      5,500        5,532  

Citizens Bank N.A.,

      

1.60%, 12/4/17

      16,000        15,983  

KeyBank N.A.,

      

1.60%, 8/22/19

      4,000        3,945  

MUFG Americas Holdings Corp.,

      

1.63%, 2/9/18

      5,000        4,982  
  

 

 

     

 

 

  
        40,423  
     

 

 

  

Consumer Finance - 0.3%

      

Synchrony Financial,

      

2.11%, 2/3/20(1)

      9,000        8,898  
  

 

 

     

 

 

  

Diversified Banks - 1.2%

      

Bank of America Corp.,

      

2.07%, 3/22/18(1)

      2,000        2,013  

1.92%, 1/15/19(1)

      5,000        5,045  

Citigroup, Inc.,

      

1.80%, 2/5/18

      5,000        4,997  

1.64%, 4/8/19(1)

      18,000        18,022  

2.05%, 6/7/19

      8,000        7,970  
  

 

 

     

 

 

  
        38,047  
     

 

 

  

Financial Services - 1.4%

      

Goldman Sachs Group (The), Inc.,

      

2.30%, 12/13/19

      25,000        24,971  

Morgan Stanley,

      

2.16%, 4/25/18(1)

      4,000        4,042  

2.45%, 2/1/19

      5,500        5,538  

2.28%, 4/21/21(1)

      10,000        10,210  
  

 

 

     

 

 

  
        44,761  
     

 

 

  

Medical Equipment & Devices Manufacturing - 0.1%

      

Becton Dickinson and Co.,

      

1.80%, 12/15/17

      3,864        3,873  
  

 

 

     

 

 

  

Oil & Gas Services & Equipment - 0.6%

      

Schlumberger Holdings Corp.,

      

2.35%, 12/21/18

      20,000        20,165  
  

 

 

     

 

 

  

Pharmaceuticals - 0.3%

      

AbbVie, Inc.,

      

1.80%, 5/14/18

      10,000        10,007  
  

 

 

     

 

 

  

Tobacco - 0.1%

      

Reynolds American, Inc.,

      

2.30%, 6/12/18

      5,000        5,032  
  

 

 

     

 

 

  

Wireless Telecommunications Services - 0.4%

      

Verizon Communications, Inc.,

      

2.71%, 9/14/18(1)

      11,623        11,882  
  

 

 

     

 

 

  

Total Corporate Bonds

(Cost $229,100)

         230,217  
     

 

 

  

FOREIGN ISSUER BONDS - 4.0%

      

Automobiles Manufacturing - 0.3%

      

Hyundai Capital Services, Inc.,

      

1.79%, 3/18/17(1) (2)

      4,000        4,001  

1.63%, 8/30/19

      5,000        4,920  
  

 

 

     

 

 

  
        8,921  
     

 

 

  

Banks - 1.0%

      

Sumitomo Mitsui Banking Corp.,

      

1.95%, 7/23/18

      15,000        14,989  

Westpac Banking Corp.,

      

1.60%, 8/19/19

      19,000        18,774  
  

 

 

     

 

 

  
        33,763  
     

 

 

  

Diversified Banks - 1.3%

      

HSBC Holdings PLC,

      

2.59%, 5/25/21(1)

      10,000        10,214  

Societe Generale S.A.,

      

2.08%, 10/1/18(1)

      24,000        24,205  

Sumitomo Mitsui Financial Group, Inc.,

      

2.63%, 3/9/21(1)

      10,000        10,288  
  

 

 

     

 

 

  
        44,707  
     

 

 

  

Financial Services - 0.8%

      

UBS Group Funding Jersey Ltd.,

      

2.44%, 9/24/20(1) (2)

      25,000        25,289  
  

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 4.0% continued

 

Pharmaceuticals - 0.6%

      

Actavis Funding SCS,

      

2.35%, 3/12/18

    $ 9,500      $ 9,555  

Mylan N.V.,

      

3.00%, 12/15/18(2)

      10,000        10,072  
  

 

 

     

 

 

  
        19,627  
     

 

 

  

Total Foreign Issuer Bonds

(Cost $131,473)

         132,307  
     

 

 

  

U.S. GOVERNMENT AGENCIES - 0.7%(3)

      

Fannie Mae - 0.7%

      

0.88%, 8/2/19

      24,000        23,667  
  

 

 

     

 

 

  

Total U.S. Government Agencies

(Cost $23,965)

         23,667  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 1.8%

      

U.S. Treasury Notes - 1.8%

      

0.75%, 7/31/18

      30,000        29,839  

0.75%, 7/15/19

      30,000        29,564  
  

 

 

     

 

 

  
        59,403  
     

 

 

  

Total U.S. Government Obligations

(Cost $59,986)

         59,403  
     

 

 

  

MUNICIPAL BONDS - 66.4%

      

Alabama - 1.4%

      

Alabama State G.O. Unlimited Bonds, Series B,

      

5.00%, 11/1/18

      5,045        5,388  

Alabama State Public School & College Authority Capital Improvement Revenue Bonds, Prerefunded,

      

5.00%, 12/1/17(4)

      40,000        41,468  
  

 

 

     

 

 

  
        46,856  
     

 

 

  

Alaska - 0.6%

      

Alaska State G.O. Unlimited Bonds, Series B,

      

5.00%, 8/1/18

      4,900        5,190  

Anchorage General Purpose G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 9/1/18

      12,085        12,813  
  

 

 

     

 

 

  
        18,003  
     

 

 

  

Arizona - 0.4%

      

Maricopa County IDA Revenue Refunding Bonds, Banner Health Obligation Group,

      

4.00%, 1/1/19

      2,700        2,835  

Phoenix G.O. Limited Refunding Bonds, Series C,

      

4.00%, 7/1/19

      10,650        11,318  
  

 

 

     

 

 

  
        14,153  
     

 

 

  

California - 6.3%

      

California State Earthquake Authority Taxable Revenue Bonds,

      

1.82%, 7/1/17

      2,500        2,503  

California State Floating G.O. Unlimited Refunding Bonds, Series A,

      

1.17%, 5/1/18(5)

      9,000        8,989  

California State G.O. Unlimited Bonds,

      

5.00%, 8/1/18

      9,510        10,081  

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 3/1/18

      12,125        12,678  

5.00%, 8/1/18

      16,100        17,066  

California State Health Facilities Financing Authority Revenue Refunding Bonds, Lucile Packard Stanford Hospital,

      

5.00%, 8/15/17

      2,000        2,049  

California State Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, The J. Paul Getty Trust,

      

1.00%, 4/2/18(5)

      21,000        21,008  

California State Municipal Finance Authority Multifamily Housing Revenue Bonds, Series A, Stevenson House Apartments,

      

0.85%, 11/1/17

      3,000        2,992  

California State Public Works Board Lease Revenue Bonds, Series H,

      

5.00%, 12/1/17

      7,280        7,539  

California State Various Purpose G.O. Unlimited Refunding Bonds,

      

5.00%, 4/1/17

      4,000        4,042  

Los Angeles Community College District G.O. Unlimited Bonds, Series G,

      

3.00%, 8/1/17

      4,000        4,049  

 

FIXED INCOME FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

California - 6.3% continued

      

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue Refunding Bonds, Proposition A First Tier Senior,

      

5.00%, 7/1/18

    $ 6,280      $ 6,649  

Los Angeles Department of Airports Subordinate Revenue Bonds, Series A (AMT),

      

5.00%, 5/15/18

      1,500        1,574  

5.00%, 5/15/19

      2,000        2,154  

Los Angeles Multifamily Revenue Bonds, Hancock Gardens Senior Housing,

      

0.80%, 11/1/17

      8,200        8,180  

Los Angeles TRANS, Series B,

      

3.00%, 6/29/17

      19,000        19,195  

Nuveen AMT-Free Municipal Income Fund Tax-Exempt Preferreds, Important Shares Institutional Municipal Fund,

      

1.19%, 7/1/18(2) (5) (6)

      7,000        7,000  

Oakland G.O. Unlimited Refunding Bonds, Series A,

      

4.00%, 1/15/17

      2,550        2,553  

Orange County Sanitation District Revenue Refunding Bonds COPS, Series B, Certificates Anticipation Notes,

      

2.00%, 12/15/18

      47,000        47,594  

Sacramento County Water Financing Authority Revenue Bonds, Series A, Water Agency Zones 40 & 41 (NATL Insured),

      

5.00%, 6/1/17

      1,000        1,016  

San Diego Unified School District G.O. Unlimited Refunding Bonds, Series R-3,

      

5.00%, 7/1/18

      10,000        10,577  

Santa Clara Unified School District G.O. Unlimited Refunding Bonds,

      

5.00%, 7/1/17

      1,725        1,761  

University of California Limited Project Revenue Refunding Bonds, Series I,

      

5.00%, 5/15/17

      4,000        4,062  
  

 

 

     

 

 

  
        205,311  
     

 

 

  

Colorado - 0.7%

      

Colorado State Housing Finance Authority Corp. Multifamily Revenue Bonds, Traditions Englewood Project,

      

0.90%, 12/1/17

      4,225        4,219  

Denver City & County Airport System Revenue Bonds, Series D (AMT) (NATL Insured),

      

5.25%, 11/15/18

      18,050        18,625  
  

 

 

     

 

 

  
        22,844  
     

 

 

  

Connecticut - 3.4%

      

Connecticut State G.O. Unlimited Bonds,

      

5.00%, 8/1/18

      15,000        15,819  

Connecticut State G.O. Unlimited Bonds, Series A,

      

3.00%, 3/15/17

      5,435        5,458  

Connecticut State G.O. Unlimited Bonds, Series A, SIFMA Index,

      

1.14%, 3/1/18(1)

      2,500        2,494  

Connecticut State G.O. Unlimited Bonds, Series B, SIFMA Index,

      

1.21%, 3/1/19(1)

      1,500        1,501  

Connecticut State G.O. Unlimited Bonds, Series D, SIFMA Index,

      

1.60%, 8/15/18(1)

      1,500        1,502  

Connecticut State G.O. Unlimited Bonds, Series E,

      

4.00%, 10/15/19

      8,000        8,451  

Connecticut State Health & Educational Facilities Authority Adjustable Revenue Bonds, Series U2, Yale University,

      

1.00%, 2/6/19(5)

      17,250        17,029  

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series X-2, Yale University,

      

0.90%, 2/1/18(5)

      28,000        27,891  

Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series A-1, Yale University,

      

1.00%, 7/1/19(5)

      16,300        16,018  

Connecticut State Special Tax Obligation Revenue Bonds, Series A,

      

3.00%, 8/1/17

      4,800        4,857  

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

Connecticut - 3.4% continued

      

Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Bonds, Series A,

      

4.00%, 9/1/17

    $ 2,000      $ 2,040  

Greenwich G.O. Unlimited Bonds,

      

5.00%, 1/15/19

      4,200        4,518  

Hartford County Metropolitan District G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 6/1/18

      2,280        2,397  
  

 

 

     

 

 

  
        109,975  
     

 

 

  

Delaware - 0.0%

      

Delaware State G.O. Unlimited Bonds, Series B,

      

5.00%, 2/1/17

      1,540        1,546  
  

 

 

     

 

 

  

Florida - 4.1%

      

Broward County Airport System Revenue Bonds, Series A (AMT),

      

5.00%, 10/1/18

      2,500        2,647  

Broward County Airport System Revenue Refunding Bonds, Series C (AMT),

      

5.00%, 10/1/17

      4,125        4,241  

Citizens Property Insurance Corp. High Account Senior Secured Revenue Bonds, Series A-1,

      

5.50%, 6/1/17

      4,750        4,837  

Citizens Property Insurance Corp. High Risk Senior Secured Revenue Bonds, Series A-1,

      

5.25%, 6/1/17

      4,450        4,527  

Citizens Property Insurance Corp. Revenue Bonds, Series A1,

      

5.00%, 6/1/18

      3,400        3,515  

Citizens Property Insurance Corp. Senior Secured Revenue Bonds, Series A-1,

      

5.00%, 6/1/17

      7,100        7,216  

5.00%, 6/1/18

      6,870        7,210  

5.00%, 6/1/19

      9,355        10,076  

Citizens Property Insurance Corp. Senior Secured Revenue Bonds, Series A-1, Coastal Account,

      

5.00%, 6/1/18

      12,200        12,803  

Citizens Property Insurance Corp. Senior Secured Variable Revenue Bonds, Series A-2,

      

1.57%, 6/1/18(1)

      14,000        13,970  

Florida State Board of Education G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 1/1/18

      25,000        25,995  

Florida State Department of Environmental Protection Preservation Revenue Refunding Bonds,

      

5.00%, 7/1/17

      6,200        6,323  

Florida State Housing Finance Corp. Multifamily Mortgage Revenue Bonds, Towers of Jacksonville,

      

0.70%, 5/1/17

      4,500        4,493  

Florida State Housing Finance Corp. Revenue Bonds, Series A, Hilltop Landings Apartments,

      

0.75%, 3/1/17

      3,000        3,000  

Florida State Turnpike Authority Revenue Refunding Bonds, Series A, Department of Transportation,

      

5.00%, 7/1/18

      2,000        2,115  

Jacksonville Special Revenue Bonds, Series A-1, Prerefunded, Escrowed to Maturity,

      

5.00%, 10/1/17

      1,185        1,221  

Jacksonville Special Revenue Bonds, Series A-1, Unrefunded Balance,

      

5.00%, 10/1/17

      815        839  

Lakeland Energy System Revenue Refunding Bonds,

      

1.47%, 10/1/17(1)

      1,000        1,001  

Miami-Dade County Aviation International Airport Revenue Bonds, Series D (AGM Insured), Prerefunded,

      

5.25%, 10/1/17(4)

      3,000        3,096  

Miami-Dade County Aviation Revenue Bonds, Series C (AMT), Miami International Airport (AGM Insured),

      

5.25%, 10/1/18

      7,975        8,212  

 

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

Florida - 4.1% continued

      

Miami-Dade County Housing Finance Authority Multifamily Revenue Bonds, Golfside Villas Apartments Project,

      

0.85%, 4/1/17

    $ 2,000      $ 1,999  

Tampa Bay Water Regional Water Supply Authority Utility System Revenue Refunding Bonds,

      

5.00%, 10/1/18

      4,000        4,261  
  

 

 

     

 

 

  
        133,597  
     

 

 

  

Georgia - 2.1%

      

Atlanta Airport Revenue Refunding Bonds, Series C (AMT),

      

5.00%, 1/1/17

      3,840        3,841  

Atlanta Water & Wastewater Revenue Bonds, Series A (NATL Insured),

      

5.50%, 11/1/18

      15,305        16,473  

Burke County Development Authority Pollution Control Variable Revenue Bonds, Georgia Power Co. Plant Vogtle Project,

      

1.55%, 6/1/18(5)

      28,100        28,152  

Burke County Development Authority Pollution Control Variable Revenue Refunding Bonds, Georgia Transmission Co. Plant,

      

1.30%, 5/3/18(5)

      9,000        9,015  

Gwinnett County School District Sales Tax G.O. Unlimited Bonds, Series A,

      

4.50%, 10/1/17

      4,500        4,621  

Peach County Development Authority Student Housing Facilities Revenue Bonds, USG Real Estate Foundation LLC,

      

1.20%, 10/1/18

      7,750        7,689  
  

 

 

     

 

 

  
        69,791  
     

 

 

  

Hawaii - 0.1%

      

Hawaii State G.O. Unlimited Bonds, Series FB,

      

5.00%, 4/1/19

      3,000        3,239  
  

 

 

     

 

 

  

Illinois - 0.7%

      

Chicago O’Hare International Airport General Revenue Refunding Bonds, Series B, Senior Lien,

      

5.00%, 1/1/19

      7,700        8,206  

Illinois State Finance Authority Revenue Bonds, University of Chicago, Prerefunded,

      

5.00%, 7/1/17(4)

      15,000        15,306  
  

 

 

     

 

 

  
        23,512  
     

 

 

  

Indiana - 1.4%

      

Indiana State Transportation Finance Authority Revenue Refunding Bonds, Series B (NATL Insured),

      

5.50%, 12/1/18

      5,000        5,397  

Indianapolis Local Public Improvement Bond Bank Revenue Refunding Bonds, Series D (AMT), Indianapolis Airport Authority,

      

4.00%, 1/1/18

      5,000        5,131  

5.00%, 1/1/19

      3,820        4,066  

Whiting Environmental Facilities Variable Revenue Bonds (AMT), BP Products North America,

      

1.47%, 12/2/19(5)

      30,000        29,691  
  

 

 

     

 

 

  
        44,285  
     

 

 

  

Iowa - 0.0%

      

Davenport G.O. Unlimited Bonds, Series A,

      

5.00%, 6/1/17

      1,465        1,489  
  

 

 

     

 

 

  

Kansas - 1.0%

      

Kansas State Department of Transportation Highway Adjustable Revenue Refunding Bonds, Series B-5, Libor Index,

      

0.73%, 9/1/18(1)

      7,000        6,953  

0.81%, 9/1/19(1)

      6,565        6,499  

 

NORTHERN FUNDS QUARTERLY REPORT    5     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

Kansas - 1.0% continued

      

Kansas State Department of Transportation Highway Convertible Revenue Bonds, Series B-1, Prerefunded,

      

5.00%, 9/1/18(4)

    $ 15,000      $ 15,928  

Kansas State Development Finance Authority Revolving Funds Revenue Bonds, Series K, Department of Health,

      

5.00%, 3/1/18

      1,900        1,987  
  

 

 

     

 

 

  
        31,367  
     

 

 

  

Kentucky - 0.6%

      

Harrison County Healthcare Revenue BANS, Harrison Memorial Hospital,

      

1.50%, 5/1/17

      5,000        5,001  

Kentucky State Economic Development Finance Authority Revenue Bonds, Catholic Health Initiatives,

      

1.32%, 2/1/20(5)

      10,000        9,874  

Kentucky State Rural Water Financial Corp. Public Project Revenue Notes, Series D-1, Construction Notes,

      

2.00%, 6/1/17

      5,000        5,022  
  

 

 

     

 

 

  
        19,897  
     

 

 

  

Louisiana - 1.4%

      

Ernest N Morial-New Orleans Exhibit Hall Authority Special Tax Refunding Bonds,

      

4.00%, 7/15/17

      1,000        1,015  

Louisiana State Citizens Property Insurance Corp. Revenue Refunding Bonds,

      

5.00%, 6/1/17

      4,150        4,215  

Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series A, Second Lien, Libor Index,

      

0.90%, 5/1/18(5)

      19,000        18,871  

Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series B-2, Second Lien, Libor Index,

      

0.98%, 5/1/18(5)

      21,500        21,355  

Shreveport Water & Sewer Improvement G.O. Unlimited Bonds,

      

4.00%, 9/1/17

      1,000        1,019  
  

 

 

     

 

 

  
        46,475  
     

 

 

  

Maine - 0.1%

      

Maine State Turnpike Authority Revenue Bonds (AMBAC Insured), Prerefunded,

      

5.25%, 7/1/17(4)

      2,000        2,044  
  

 

 

     

 

 

  

Maryland - 5.6%

      

Anne Arundel County G.O. Limited Refunding Bonds,

      

5.00%, 10/1/17

      12,000        12,364  

5.00%, 10/1/18

      6,500        6,926  

Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds,

      

5.00%, 2/1/17

      5,500        5,520  

5.00%, 8/1/17

      5,425        5,555  

Baltimore County G.O. Unlimited Bonds,

      

5.00%, 2/1/19

      3,000        3,230  

Baltimore County Metropolitan District 78th Issue G.O. Unlimited Bonds,

      

5.00%, 2/1/18

      1,500        1,564  

Baltimore Wastewater Projects Subordinate Revenue Bonds, Series C,

      

3.00%, 7/1/17

      760        768  

Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series B,

      

5.00%, 3/15/17

      6,300        6,355  

Maryland State Department of Transportation Consolidated Revenue Bonds,

      

5.00%, 2/15/17

      2,000        2,010  

5.50%, 6/1/17

      6,200        6,320  

Maryland State Department of Transportation Consolidated Revenue Refunding Bonds,

      

4.00%, 9/1/19

      24,650        26,325  

Maryland State G.O. Unlimited Bonds, First Series,

      

5.00%, 6/1/19

      18,000        19,563  

Maryland State G.O. Unlimited Bonds, First Series B,

      

5.00%, 3/15/17

      1,000        1,009  

Maryland State G.O. Unlimited Bonds, Second Series A, Local Facilities Loan,

      

5.00%, 8/1/18

      2,300        2,439  

 

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

Maryland - 5.6% continued

      

Maryland State G.O. Unlimited Bonds, Series A,

      

5.00%, 3/1/18

    $ 25,300      $ 26,462  

Maryland State G.O. Unlimited Refunding Bonds, First Series B,

      

4.50%, 8/1/17

      5,000        5,105  

Maryland State Health & Higher Educational Facilities Authority Variable Revenue Bonds, Johns Hopkins Health System,

      

0.99%, 5/15/18(5)

      9,900        9,856  

1.01%, 5/15/18(5)

      19,625        19,542  

Maryland State Stadium Authority Revenue Bonds, Baltimore City Public Schools,

      

5.00%, 5/1/18

      1,500        1,577  

5.00%, 5/1/19

      1,250        1,353  

Montgomery County G.O. Unlimited Bonds, Series B,

      

5.00%, 12/1/17

      5,000        5,184  

5.00%, 12/1/18

      14,000        15,003  
  

 

 

     

 

 

  
        184,030  
     

 

 

  

Massachusetts - 1.5%

      

Massachusetts State Development Finance Agency Revenue Bonds, Series A, Harvard University, Prerefunded, Escrowed to Maturity,

      

5.00%, 11/15/17

      585        606  

Massachusetts State Development Finance Agency Revenue Bonds, Series A, Harvard University, Unrefunded Balance,

      

5.00%, 11/15/17

      1,415        1,465  

Massachusetts State Development Finance Agency Revenue Refunding Bonds, Series A, Harvard University,

      

5.00%, 7/15/19

      2,675        2,918  

Massachusetts State Development Finance Agency Variable Revenue Bonds, Series M, Partners Healthcare,

      

1.27%, 1/30/18(5)

      24,580        24,587  

Massachusetts State Health & Educational Facilities Authority Variable Revenue Bonds, Series A, University of Massachusetts,

      

1.15%, 4/1/19(5)

      3,000        2,975  

Massachusetts State Transportation Fund Revenue Bonds, Series A, Rail Enhancement Program,

      

5.00%, 6/1/17

      10,635        10,818  

Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Subseries A, MWRA Program,

      

6.00%, 8/1/18

      1,000        1,076  

Springfield G.O. Limited Refunding Bonds

      

(State Aid Withholding),

      

5.00%, 8/1/18

      3,000        3,168  
  

 

 

     

 

 

  
        47,613  
     

 

 

  

Michigan - 0.4%

      

Grand Rapids Water Supply System Revenue Refunding Bonds,

      

5.00%, 1/1/18

      2,000        2,078  

Michigan State Finance Authority Unemployment Obligation Assessment Revenue Bonds, Series A,

      

5.00%, 1/1/19

      1,240        1,329  

Michigan State Hospital Finance Authority Revenue Bonds, Ascension Health Credit Group, Prerefunded,

      

0.95%, 2/1/18(7)

      195        194  

Michigan State Hospital Finance Authority Revenue Bonds, Ascension Health Credit Group, Unrefunded Balance,

      

0.95%, 2/1/18(5)

      5,805        5,786  

Romeo Community School District G.O. Unlimited Refunding Bonds

      

(Q-SBLF Insured),

      

2.00%, 5/1/17

      2,115        2,121  

Warren Downtown Development G.O. Limited Tax Refunding Bonds,

      

2.00%, 10/1/17

      900        905  
  

 

 

     

 

 

  
        12,413  
     

 

 

  

Minnesota - 2.3%

      

Edina G.O. Unlimited Refunding Bonds, Series B,

      

3.00%, 2/1/17

      3,690        3,697  

 

NORTHERN FUNDS QUARTERLY REPORT    7     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

Minnesota - 2.3% continued

      

Minneapolis Special School District No. 1 G.O. Unlimited Bonds, Series A (School District Credit Program),

      

4.00%, 2/1/18

    $ 1,840      $ 1,898  

Minneapolis Special School District No. 1 G.O. Unlimited Bonds, Series B, Alternative Facility (School District Credit Program),

      

4.00%, 2/1/18

      1,830        1,888  

Minnesota State G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/19

      13,070        14,261  

Minnesota State Rural Water Finance Authority Public Project Construction Revenue Notes,

      

2.00%, 10/1/17

      8,000        8,052  

Minnesota State Various Purpose G.O. Unlimited Bonds, Series B,

      

5.00%, 8/1/19

      10,750        11,730  

Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series F,

      

4.00%, 8/1/17

      1,900        1,935  

Orono Independent School District No. 278 Building G.O. Unlimited Refunding Bonds, Series D (School District Credit Program),

      

4.00%, 2/1/19

      3,070        3,235  

Osseo Independent School District No. 279 Building G.O. Unlimited Refunding Bonds, Series C (School District Credit Program),

      

5.00%, 2/1/17

      2,850        2,860  

Saint Paul Housing and Redevelopment Authority Multifamily Revenue Bonds, Cambric Apartments Project,

      

0.85%, 6/1/17

      7,000        6,996  

Todd Morrison Cass & Wadena Counties United Hospital District Healthcare Revenue BANS, Series A, Lakewood Health System,

      

1.30%, 12/1/18

      6,590        6,549  

University of Minnesota Revenue Bonds, Series B,

      

4.00%, 1/1/17

      1,600        1,600  

University of Minnesota State Supported Stadium Debt Revenue Refunding Bonds,

      

5.00%, 8/1/17

      2,695        2,759  

Wayzata Independent School District No. 284 G.O. Unlimited Refunding Bonds (School District Credit Program),

      

5.00%, 2/1/17

      7,620        7,647  
  

 

 

     

 

 

  
        75,107  
     

 

 

  

Missouri - 0.3%

      

Metropolitan Saint Louis Sewer District Wastewater System Revenue Refunding & Improvement Bonds, Series B,

      

4.00%, 5/1/18

      1,775        1,842  

Missouri Joint Municipal Electric Utility Commission Power Project Revenue Refunding Bonds,

      

5.00%, 1/1/17

      2,000        2,000  

Missouri State Board of Public Buildings Special Obligation Revenue Bonds, Series A,

      

3.00%, 4/1/18

      1,500        1,536  

4.00%, 4/1/19

      5,000        5,289  
  

 

 

     

 

 

  
        10,667  
     

 

 

  

Municipal States Pooled Securities - 0.7%

      

BB&T Municipal Trust Certificates Revenue Bonds, Class C (Rabobank Nederland LOC),

      

1.42%, 11/15/17(1) (2) (6)

      6,702        6,694  

Nuveen Enhanced Municipal Credit Opportunities Fund Tax-Exempt Preferreds (AMT), Important Shares Institutional Municipal Fund,

      

1.47%, 10/1/17(1) (2) (6)

      15,000        15,001  
  

 

 

     

 

 

  
        21,695  
     

 

 

  

Nebraska - 0.1%

      

Lincoln Electric System Revenue Refunding Bonds,

      

5.00%, 9/1/19

      3,000        3,277  
  

 

 

     

 

 

  

 

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

Nevada - 3.9%

      

Clark County Airport Revenue Bonds, Series B (AMT), Junior Subordinate Lien,

      

5.00%, 7/1/17

    $ 21,060      $ 21,457  

Clark County Airport System Revenue Refunding Bonds, Series A-1 (AMT), Subordinate Lien,

      

5.00%, 7/1/17

      10,000        10,188  

Clark County G.O. Limited Refunding Bank Bonds, Series A,

      

5.00%, 11/1/17

      19,000        19,634  

Clark County G.O. Limited Refunding Bonds, Series A,

      

5.00%, 7/1/17

      14,400        14,695  

Clark County School District Building G.O. Limited Refunding Bonds, Series C,

      

4.00%, 6/15/17

      2,675        2,711  

Clark County School District G.O. Limited Bonds, Series D,

      

5.00%, 6/15/18

      4,000        4,212  

Clark County School District G.O. Limited Refunding Bonds, Series A,

      

5.00%, 6/15/17

      52,500        53,453  

Las Vegas Valley Water District G.O. Limited Refunding Bonds, Series A, Water Improvement,

      

3.00%, 6/1/18

      1,000        1,026  
  

 

 

     

 

 

  
        127,376  
     

 

 

  

New Jersey - 0.5%

      

Monmouth County G.O. Unlimited Bonds,

      

5.00%, 7/15/19

      1,000        1,091  

Morris County Improvement Authority Revenue Refunding Bonds, GTD Loan (County Gtd.),

      

3.00%, 5/1/18

      2,250        2,306  

New Jersey State EDA Variable Revenue Refunding Bonds, School Facilities Construction,

      

1.45%, 2/1/17(1)

      6,485        6,485  

New Jersey State Educational Facilities Authority Revenue Bonds, Series D, Princeton University,

      

5.00%, 7/1/17

      2,000        2,041  

New Jersey State Housing & Mortgage Finance Agency Multifamily Revenue Refunding Bonds, Series B,

      

1.25%, 5/1/19

      5,500        5,442  
  

 

 

     

 

 

  
        17,365  
     

 

 

  

New Mexico - 1.1%

      

Albuquerque Bernalillo County Water Utility Authority Joint Water & Sewer Revenue Refunding Bonds, Series A, Senior Lien,

      

5.00%, 7/1/17

      2,200        2,246  

Albuquerque Bernalillo County Water Utility Authority Joint Water & Sewer Revenue Refunding Bonds, Series B, Subordinate Lien,

      

5.00%, 7/1/17

      1,200        1,225  

Las Cruces State Shared Gross Receipts TRB,

      

4.00%, 6/1/17

      2,165        2,192  

New Mexico State Capital Projects G.O. Unlimited Bonds,

      

5.00%, 3/1/18

      11,000        11,501  

New Mexico State Hospital Equipment Loan Council Revenue Bonds, Presbyterian Healthcare Services,

      

5.00%, 8/1/17

      1,385        1,416  

New Mexico State Municipal Energy Acquisition Authority Gas Supply Variable Revenue Bonds, Subseries B,

      

1.16%, 8/1/19(5)

      16,450        16,349  
  

 

 

     

 

 

  
        34,929  
     

 

 

  

New York - 7.1%

      

Brookhaven G.O. Limited Bonds, Series A,

      

3.00%, 2/1/17

      6,565        6,578  

Long Island Power Authority Electric System Variable Revenue Refunding Bonds, Series C,

      

1.31%, 11/1/18(5)

      13,100        13,151  

 

NORTHERN FUNDS QUARTERLY REPORT     9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

      

New York - 7.1% continued

      

Metropolitan Transportation Authority Dedicated Tax Fund Floating Revenue Refunding Bonds, Subseries B-3C,

      

1.17%, 11/1/19(5)

    $ 5,425      $ 5,425  

Metropolitan Transportation Authority Revenue Bonds, Series A,

      

5.00%, 11/15/18

      1,630        1,739  

Metropolitan Transportation Authority Variable Revenue Refunding Bonds, Subseries D2 (AGM Insured),

      

1.03%, 5/15/18(5)

      9,425        9,427  

New York City Housing Development Corp. Multifamily Housing Revenue Bonds, Series D-1-B,

      

1.35%, 5/1/18

      7,000        7,000  

New York G.O. Unlimited Bonds, Series E,

      

5.00%, 8/1/17

      2,685        2,748  

New York G.O. Unlimited Bonds, Series I,

      

5.00%, 8/1/17

      3,025        3,096  

New York G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 8/1/17

      8,500        8,700  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series A, NYU Hospital Center, Prerefunded,

      

5.00%, 7/1/17(4)

      4,000        4,083  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series A, St. Johns University (NATL Insured), Prerefunded,

      

5.25%, 7/1/17(4)

      10,420        10,645  

New York State Dormitory Authority Non State Supported Debt Revenue Refunding Bonds, Series B, Columbia University,

      

5.00%, 10/1/18

      1,000        1,066  

New York State Dormitory Authority Personal Income Tax General Purpose Revenue Bonds, Series A,

      

5.00%, 2/15/17

      3,400        3,418  

New York State Dormitory Authority Personal Income Taxable Revenue Refunding Bonds, Series E,

      

2.00%, 3/15/18

      1,500        1,517  

New York State Dormitory Authority Sales Tax Revenue Refunding Bonds, Series A,

      

5.00%, 3/15/17

      22,500        22,698  

New York State Dormitory Authority Sales TRB, Series 2015B-A,

      

5.00%, 3/15/17

      10,000        10,088  

New York State Dormitory Authority Sales TRB, Series A, Group A,

      

5.00%, 3/15/19

      11,640        12,580  

New York State Dormitory Authority State Supported Debt Revenue Refunding Bonds, Series A, Department of Health,

      

5.00%, 7/1/19

      3,840        4,165  

New York State G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 4/15/17

      10,000        10,125  

New York State Housing Finance Agency Affordable Housing Revenue Bonds, Series F (SonyMA/GNMA/FNMA/FHLMC Insured),

      

1.20%, 11/1/18

      6,550        6,521  

New York State Transportation Development Corp. Special Facility Revenue Refunding Bonds (AMT), Terminal One Group Association,

      

5.00%, 1/1/17

      5,000        5,001  

5.00%, 1/1/18

      9,565        9,912  

New York State Urban Development Corp. Personal Income Tax Revenue Refunding Bonds, Series A,

      

5.00%, 9/15/17

      26,280        27,029  

5.00%, 9/15/18

      17,240        18,348  

New York State Urban Development Corp. Personal Income TRB, Series A,

      

5.00%, 3/15/17

      4,000        4,035  

5.00%, 3/15/17

      5,000        5,043  

 

FIXED INCOME FUNDS     10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

      

New York - 7.1% continued

      

Nuveen AMT-Free Municipal Income Fund Tax-Exempt Preferreds, Important Shares Institutional Municipal Fund,

      

1.34%, 10/1/17(2) (5) (6)

    $ 15,000      $ 15,001  

Port Authority of New York & New Jersey Consolidated Revenue Refunding Bonds, Series 197 (AMT),

      

5.00%, 11/15/19

      4,405        4,791  
  

 

 

     

 

 

  
        233,930  
     

 

 

  

North Carolina - 0.3%

      

Mecklenburg County G.O. Unlimited Bonds, Series A,

      

5.00%, 4/1/17

      3,000        3,032  

Wake County Public Improvement G.O. Unlimited Bonds,

      

5.00%, 9/1/17

      5,670        5,824  
  

 

 

     

 

 

  
        8,856  
     

 

 

  

North Dakota - 0.0%

      

Fargo G.O. Unlimited Refunding & Improvement Bonds, Series F,

      

5.00%, 5/1/17

      1,065        1,080  
  

 

 

     

 

 

  

Ohio - 4.8%

      

Allen County Hospital Facilities Revenue Bonds, Series B, Adjustable Mercy Health,

      

1.47%, 5/1/20(5)

      50,000        49,630  

Columbus G.O. Limited Bonds, Series B,

      

2.00%, 7/1/17

      2,290        2,302  

Columbus G.O. Unlimited Refunding Bonds, Series 1,

      

5.00%, 7/1/18

      1,000        1,058  

Crawford County Hospital Facilities Revenue Refunding Bonds, Avita Health System,

      

1.43%, 11/1/17

      23,500        23,501  

Eaton Vance Ohio Municipal Income Trust Tax-Exempt Preferreds (AMT),

      

2.22%, 9/1/19(2) (5) (6)

      11,400        11,401  

Lancaster Port Authority Gas Variable Revenue Refunding Bonds,

      

1.13%, 8/1/19(5)

      21,500        21,312  

Northeast Regional Sewer District Revenue Refunding Bonds,

      

5.00%, 11/15/17

      3,000        3,103  

Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 9/15/18

      3,000        3,193  

Ohio State G.O. Unlimited Bonds, Series B,

      

2.00%, 9/1/17

      2,660        2,679  

4.00%, 9/1/18

      2,390        2,501  

Ohio State G.O. Unlimited Bonds, Series C,

      

2.00%, 11/1/17

      5,170        5,214  

Ohio State Higher Educational Facility Commission Revenue Bonds, Series A-2, Cleveland Clinic Health System Obligation,

      

1.19%, 1/1/18(1)

      2,000        1,996  

Ohio State Housing Finance Agency Residential Mortgage Revenue Refunding Bonds, Series K,

      

1.00%, 9/1/18

      1,475        1,465  

Ohio State Infrastructure Improvement G.O. Unlimited Bonds, Series B,

      

3.00%, 9/1/17

      5,200        5,271  

Ohio State Major New State Infrastructure Project Revenue Bonds, Series 2016-1,

      

5.00%, 12/15/18

      2,500        2,680  

Ohio State Water Development Authority Solid Waste Revenue Bonds (AMT), Waste Management,

      

1.70%, 11/1/18(5)

      11,215        11,215  

University of Cincinnati Receipts Revenue Bonds, Series A, Floating Rate Notes,

      

0.97%, 6/1/18(1)

      8,275        8,245  
  

 

 

     

 

 

  
        156,766  
     

 

 

  

Oklahoma - 0.3%

      

Oklahoma City G.O. Unlimited Refunding Bonds,

      

2.00%, 3/1/17

      2,000        2,004  

 

NORTHERN FUNDS QUARTERLY REPORT     11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

      

Oklahoma - 0.3% continued

      

Oklahoma Housing Finance Agency Collateralized Revenue Bonds, Savanna Landing Apartments,

      

0.85%, 7/1/18(5)

    $ 6,000      $ 5,953  

Tulsa G.O. Unlimited Bonds,

      

2.00%, 3/1/17

      2,930        2,936  
  

 

 

     

 

 

  
        10,893  
     

 

 

  

Oregon - 0.1%

      

Portland Sewer System Revenue Refunding Bonds, Series B, Second Lien,

      

5.00%, 6/1/17

      2,000        2,034  
  

 

 

     

 

 

  

Pennsylvania - 1.8%

      

North Penn Water Authority Variable Revenue Refunding Bonds,

      

0.82%, 11/1/19(1)

      1,000        989  

0.91%, 11/1/19(5)

      4,080        4,046  

Pennsylvania State Economic Development Financing Authority Revenue Bonds, Series A, UPMC,

      

4.00%, 2/1/17

      1,430        1,434  

Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Revenue Bonds, Series A, Waste Management, Inc. Project,

      

1.50%, 5/1/18(5)

      2,000        2,000  

Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Revenue Bonds, Waste Management Project,

      

1.55%, 12/3/18(5)

      1,000        992  

Pennsylvania State G.O. Unlimited Bonds, First Series,

      

5.00%, 3/15/17

      27,200        27,435  

Pennsylvania State Higher Educational Facilities Authority Revenue Refunding Bonds, University of Pennsylvania Health System,

      

5.00%, 8/15/17

      3,500        3,584  

Pennsylvania State Turnpike Commission Variable Revenue Refunding Bonds, Series A-2,

      

1.42%, 12/1/19(1)

      2,500        2,490  

Pennsylvania State Turnpike Commission Variable Revenue Refunding Bonds, Series B-1,

      

1.32%, 12/1/18(1)

      12,000        11,995  

Swarthmore Borough Authority Revenue Refunding Bonds, Series A, Swarthmore College,

      

5.00%, 9/15/18

      2,280        2,426  
  

 

 

     

 

 

  
        57,391  
     

 

 

  

Rhode Island - 0.1%

      

Rhode Island State & Providence Plantations G.O. Unlimited Refunding Bonds, Series A, Consolidated Capital Development Loan,

      

4.00%, 8/1/17

      2,475        2,519  
  

 

 

     

 

 

  

South Carolina - 0.4%

      

Horry County School District G.O. Unlimited Refunding Bonds, Series B (SCSDE Insured),

      

5.00%, 3/1/18

      3,560        3,724  

Lexington County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (SCSDE Insured),

      

5.00%, 2/1/17

      2,840        2,850  

Richland County School District No. 2 G.O. Unlimited Refunding Bonds, Series C (SCSDE Insured),

      

5.00%, 2/1/17

      8,000        8,029  
  

 

 

     

 

 

  
        14,603  
     

 

 

  

Tennessee - 1.0%

      

Knox County G.O. Unlimited Refunding Bonds,

      

5.00%, 4/1/17

      3,000        3,032  

Metropolitan Government of Nashville & Davidson County Electric System Revenue Refunding Bonds, Series B,

      

5.00%, 5/15/19

      2,000        2,167  

Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding Bonds,

      

5.00%, 7/1/19

      6,000        6,525  

 

FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

      

Tennessee - 1.0% continued

      

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board Revenue Bonds, Radnor Towers Apartment Project,

      

0.90%, 4/1/18(5)

    $ 4,500      $ 4,484  

Shelby County G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 4/1/18

      10,000        10,493  

Tennessee State G.O. Unlimited Bonds, Series A,

      

4.00%, 8/1/17

      3,000        3,054  

5.00%, 8/1/18

      2,325        2,466  
  

 

 

     

 

 

  
        32,221  
     

 

 

  

Texas - 6.5%

      

Beckville Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

3.00%, 2/15/17

      980        983  

Carrollton G.O. Limited Refunding & Improvement Bonds,

      

4.00%, 8/15/17

      1,000        1,019  

Dallas Independent School District Variable Building Multi-Modal G.O. Unlimited Bonds, Series B-3 (PSF-Gtd.),

      

5.00%, 2/15/19(5)

      3,000        3,212  

Fort Worth Water & Sewer Revenue Refunding & Improvement Bonds, Series A,

      

5.00%, 2/15/17

      7,865        7,906  

Georgetown Independent School District Variable G.O. Unlimited Refunding Bonds,

      

2.00%, 8/1/18(5)

      5,000        5,027  

Grapevine-Colleyville Independent School District G.O. Unlimited Bonds (PSF-Gtd.),

      

5.00%, 8/15/19

      2,830        3,087  

Harlandale Independent School District G.O. Unlimited Bonds (PSF-Gtd.),

      

2.00%, 8/15/18(5)

      5,000        5,044  

Harris County Cultural Education Facilities Finance Corp. Variable Revenue Bonds, Memorial Hermann Hospital,

      

1.30%, 12/1/19(5)

      1,950        1,946  

Houston Combined Utility System Revenue Refunding Bonds, Series C, First Lien,

      

5.00%, 11/15/18

      1,000        1,069  

Houston G.O. Limited Refunding Bonds, Series A,

      

5.00%, 3/1/17

      15,700        15,810  

5.00%, 3/1/19

      9,000        9,683  

Houston Independent School District House G.O. Limited Tax Bonds, Series B (PSF-Gtd.),

      

1.70%, 6/1/18(5)

      5,500        5,540  

Houston Independent School District Variable G.O. Limited Tax Refunding Bonds (PSF-Gtd.),

      

1.70%, 6/1/18(5)

      12,500        12,558  

Houston Public Improvement G.O. Limited Refunding Bonds, Series A,

      

5.00%, 3/1/19

      2,835        3,052  

Houston Utility System Revenue Refunding Bonds, Series B, First Lien,

      

5.00%, 11/15/18

      1,000        1,069  

Irving G.O Limited Refunding & Improvement Bonds,

      

5.50%, 9/15/18

      3,000        3,217  

Judson Independent School District Building G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

4.00%, 2/1/19

      1,980        2,087  

Katy Independent School District Variable G.O. Unlimited Refunding Bonds, Series C (PSF-Gtd.),

      

1.02%, 8/15/19(5)

      7,000        6,974  

Lewisville Refunding & Improvement G.O. Limited Bonds,

      

5.00%, 2/15/19

      1,000        1,074  

Lone Star College System G.O. Limited, Prerefunded,

      

5.00%, 8/15/18(4)

      10,000        10,612  

 

NORTHERN FUNDS QUARTERLY REPORT    13    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

      

Texas - 6.5% continued

      

Lower Colorado River Authority Revenue Refunding Bonds, Series D,

      

5.00%, 5/15/17

    $ 2,220      $ 2,252  

Lubbock Waterworks G.O. Limited Bonds, Certificates of Obligation,

      

5.00%, 2/15/17

      1,000        1,005  

McAllen G.O. Limited Refunding Bonds,

      

4.00%, 2/15/17

      1,360        1,365  

Montgomery County G.O. Limited Refunding Tax Bonds, Series A,

      

5.00%, 3/1/19

      3,000        3,232  

North Texas Tollway Authority Revenue Refunding Bonds, Series A,

      

5.00%, 1/1/19

      1,500        1,602  

North Texas Tollway Authority Variable Revenue Refunding Bonds, Series A, First Tier,

      

1.52%, 1/1/19(5)

      7,250        7,258  

Nuveen Quality Income Municipal Fund Tax-Exempt Preferreds (AMT), Important Shares Institutional Municipal Fund,

      

1.62%, 11/1/18(1) (2) (6)

      18,000        18,006  

San Antonio Electric & Gas Variable Revenue Refunding Bonds, Series B, Junior Lien,

      

1.75%, 12/1/18(5)

      12,000        12,023  

San Antonio G.O. Limited Bonds, Certificates of Obligation,

      

5.00%, 2/1/19

      2,900        3,117  

San Antonio G.O. Limited Refunding Bonds,

      

5.00%, 2/1/19

      8,975        9,648  

San Antonio G.O. Limited Tax Notes,

      

5.00%, 2/1/18

      5,645        5,886  

5.00%, 2/1/19

      9,535        10,250  

Texas State A&M University Financing System Revenue Bonds, Series A,

      

4.00%, 5/15/19

      1,000        1,060  

Texas State Transportation Commission Highway Improvement G.O. Unlimited Bonds,

      

5.00%, 4/1/18

      10,000        10,493  

Texas State Transportation Commission State Highway Fund Revenue Bonds, Series A,

      

5.00%, 10/1/19

      10,000        10,959  

Texas State Transportation Commission State Highway Fund Revenue Refunding Bonds, Series A, First Tier,

      

5.00%, 4/1/18

      9,000        9,443  

University of Texas Permanent University Fund Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/18

      2,000        2,115  

University of Texas Revenue Bonds, Series E,

      

5.00%, 8/15/19

      2,000        2,183  
  

 

 

     

 

 

  
        212,866  
     

 

 

  

Utah - 0.0%

      

Utah State G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 7/1/18

      1,500        1,587  
  

 

 

     

 

 

  

Virginia - 1.1%

      

Fairfax Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding),

      

5.00%, 4/1/19

      2,500        2,705  

Henrico County Public Improvement G.O. Unlimited Refunding Bonds,

      

5.00%, 7/15/19

      3,000        3,271  

Newport News G.O. Unlimited Refunding Bonds,

      

3.00%, 7/15/17

      2,035        2,058  

3.00%, 7/15/18

      1,780        1,831  

Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series A, 21st Century College,

      

5.00%, 2/1/17

      4,725        4,742  

Virginia State Public School Authority School Technology & Security Notes Revenue Bonds, Series IV,

      

5.00%, 4/15/18

      7,650        8,036  

 

FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 66.4% continued

 

Virginia - 1.1% continued

      

5.00%, 4/15/19

    $ 11,000      $ 11,899  

Virginia State Public School Authority Special Obligation Prince William County Revenue Refunding Bonds

      

(State Aid Withholding),

      

5.00%, 8/1/18

      2,400        2,546  
  

 

 

     

 

 

  
        37,088  
     

 

 

  

Washington - 1.5%

      

Central Puget Sound Regional Transportation Authority Revenue Refunding Bonds, Series P-1,

      

5.00%, 2/1/17

      1,500        1,506  

Central Puget Sound Regional Transportation Authority Sales & TRB, Series S-2A, Green Bonds,

      

1.42%, 11/1/18(5)

      25,000        25,029  

Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project No. 3,

      

5.00%, 7/1/18

      6,855        7,250  

King County G.O. Limited Refunding Bonds, Series E,

      

5.00%, 12/1/18

      4,000        4,286  

Washington State Motor Fuel Tax G.O. Unlimited Bonds, Series E,

      

5.00%, 2/1/17

      4,500        4,516  

Washington State Refunding COPS, State & Local Agency Real & Person

      

(State Intercept Program),

      

5.00%, 7/1/18

      7,335        7,736  
  

 

 

     

 

 

  
        50,323  
     

 

 

  

West Virginia - 0.1%

      

West Virginia State EDA Revenue BANS, Shepherd University Foundation,

      

1.20%, 2/1/18

      4,250        4,243  
  

 

 

     

 

 

  

Wisconsin - 0.6%

      

Wisconsin State G.O. Unlimited Bonds, Series A,

      

5.00%, 5/1/18

      4,000        4,208  

Wisconsin State G.O. Unlimited Bonds, Series C,

      

5.00%, 5/1/18

      8,505        8,947  

Wisconsin State Petroleum Inspection Fee Revenue Bonds, Series 1,

      

4.00%, 7/1/19

      7,000        7,439  
  

 

 

     

 

 

  
        20,594  
     

 

 

  

Total Municipal Bonds

(Cost $2,184,605)

         2,175,850  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 0.4%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(8) (9)

      11,400,578      $ 11,401  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $11,401)

         11,401  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 17.6%

      

Augusta Housing Authority Revenue Bonds, Gardens At Harvest Point Apartments,

      

0.90%, 6/1/17(5)

    $ 17,000      $ 16,982  

Bay Area Toll Bridge Authority Variable Revenue Bonds, Series A,

      

1.00%, 4/3/17(5)

      37,840        37,823  

Bucks County IDA Solid Waste Revenue Bonds (AMT), Variable Waste Management, Inc. Project,

      

1.38%, 2/1/17(5)

      3,150        3,150  

Burke County Development Authority PCR Bonds, Georgia Power Co. Plant Vogtle Project,

      

1.38%, 4/4/17(5)

      2,350        2,352  

Burke County Development Authority Pollution Control Variable Revenue Bonds, Georgia Power Co. Plant Vogtle,

      

1.75%, 6/1/17(5)

      1,040        1,042  

Burlington Environmental Improvement Variable Revenue Refunding Bonds, Power & Light

      

(Mizuho Bank Ltd. LOC),

      

0.77%, 1/9/17(5)

      4,000        4,000  

 

NORTHERN FUNDS QUARTERLY REPORT    15    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 17.6% continued

      

California State Department of Water Resources Central Valley Project Water System Variable Revenue Bonds, Series AT,

      

1.02%, 12/1/17(5)

    $ 9,000      $ 8,999  

California State Index Floating Rate G.O. Unlimited Bonds, Series D,

      

1.14%, 12/1/17(5)

      5,000        5,002  

Charles City & County EDA Solid Waste Disposal Revenue Bonds (AMT), Variable Waste Management,

      

1.60%, 5/1/17(5)

      3,350        3,355  

Corpus Christi Utility System Variable Revenue Bonds, Series B, Junior Lien,

      

2.00%, 7/15/17(5)

      17,400        17,409  

Eaton Vance New York Municipal Income Trust Tax-Exempt Preferreds (AMT),

      

2.22%, 1/9/17(2) (5) (6)

      11,000        11,001  

Escambia County Solid Waste Disposal Revenue Bonds, Gulf Power Co. Project,

      

1.40%, 12/1/17(5)

      8,000        8,006  

Gilliam County Solid Waste Management Disposal Variable Revenue Bonds, Series A (AMT),

      

2.50%, 5/1/17(5)

      5,000        5,022  

Grant County Public Utility District No. 2 Variable Revenue Bonds, Series K,

      

1.04%, 12/1/17(5)

      10,000        9,975  

Harris County Cultural Education Facilities Finance Corp. Variable Revenue Refunding Bonds, Memorial Hermann Hospital,

      

0.71%, 1/9/17(5)

      12,000        12,000  

Houston Independent School District House G.O. Limited Tax Bonds, Series B (PSF-Gtd.),

      

0.95%, 6/1/17(5)

      5,900        5,895  

Illinois State Educational Facilities Authority Adjustable Revenue Bonds, Series B-3, University of Chicago,

      

0.50%, 3/7/17(5)

      33,950        33,910  

Illinois State Finance Authority Revenue Bonds, Series A, University of Chicago Medical Center,

      

0.69%, 1/2/17(5)

      10,000        10,000  

Illinois State Finance Authority Variable Revenue Bonds, Subseries C-1, Advocate Health,

      

0.75%, 1/9/17(5)

      20,000        20,000  

Illinois State Health Facilities Authority Variable Revenue Bonds, Evanston Hospital Corp.,

      

0.72%, 1/9/17(5)

      19,300        19,300  

Indiana State Health Facility Financing Authority Revenue Bonds, Series A-3, Ascension Health Subordinate Credit Group,

      

4.00%, 8/1/17(5)

      4,630        4,706  

Indiana State Health Facility Financing Authority Variable Revenue Bonds, Ascension Health Subordinate Credit,

      

1.15%, 12/1/17(5)

      1,845        1,842  

Kansas State Development Finance Authority MFH Revenue Bonds, Series B (AMT), Boulevard Apartments

      

(U.S. Bank N.A. LOC),

      

0.78%, 1/9/17(5)

      15,000        15,000  

Lehigh County IDA Revenue Refunding Bonds, Series A, Ppl Electric Utilities Corp.,

      

0.90%, 9/1/17(5)

      8,000        7,977  

Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series C, Johns Hopkins Health System,

      

1.24%, 11/15/17(5)

      5,000        5,013  

Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series C, Johns Hopkins Health System,

      

1.24%, 11/15/17(5)

      4,945        4,957  

Massachusetts State G.O. Limited RANS, Series A,

      

2.00%, 4/24/17

      36,000        36,124  

Massachusetts State G.O. Limited RANS, Series B,

      

2.00%, 5/22/17

      11,000        11,049  

Massachusetts State Housing Finance Agency Multifamily Conduit Variable Revenue Bonds, Wood Ridge,

      

1.05%, 6/1/17(5)

      3,200        3,198  

Metropolitan Atlanta Rapid Transit Authority Sales Tax Variable Revenue Bonds, Series A,

      

1.02%, 7/1/17(5)

      22,500        22,483  

 

FIXED INCOME FUNDS     16     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 17.6% continued

      

Metropolitan Atlanta Rapid Transit Authority Sales Tax Variable Revenue Bonds, Series B, Second Indenture,

      

1.00%, 7/1/17(5)

    $ 7,500      $ 7,493  

Metropolitan Transportation Authority Dedicated Tax Fund Variable Revenue Refunding Bonds, Series 2008A-2A,

      

1.10%, 6/1/17(5)

      4,870        4,870  

Metropolitan Transportation Authority Revenue BANS, Series A-2C,

      

2.00%, 2/1/17

      27,200        27,226  

Metropolitan Transportation Authority Variable Revenue Refunding Bonds, Subseries G-4,

      

1.25%, 11/1/17(5)

      8,010        8,032  

Miami-Dade County IDA Solid Waste Disposal Revenue Bonds (AMT), Waste Management, Inc. Project,

      

1.50%, 8/1/17(5)

      2,500        2,503  

Michigan State Strategic Fund Exempt Facilities Adjustable Revenue Bonds (AMT), Waste Management, Inc. Project,

      

1.50%, 8/1/17(5)

      2,500        2,502  

Minnesota State G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/17

      13,070        13,381  

Minnesota State Various Purpose G.O. Unlimited Bonds, Series B,

      

5.00%, 8/1/17

      3,000        3,071  

Mississippi State Business Finance Corp. Solid Waste Disposal Revenue Bonds, Waste Management, Inc. Project,

      

1.13%, 9/1/17(5)

      2,250        2,249  

New Jersey State Housing & Mortgage Finance Agency Multifamily Conduit Revenue Bonds, Series U, Oakwood Towers Project,

      

0.80%, 5/1/17(5)

      6,700        6,689  

New York City Health & Hospital Corp. Variable Revenue Bonds, Series E, Health System

      

(J.P. Morgan Chase Bank N.A. LOC),

      

0.71%, 1/9/17(5)

      10,375        10,375  

New York City Municipal Water Finance Authority Water & Sewer System Adjustable Revenue Bonds, Series AA-1, Second Generation,

      

0.77%, 1/2/17(5)

      9,000        9,000  

New York City Municipal Water Finance Authority Water & Sewer System Adjustable Revenue Bonds, Series F-1,

      

0.76%, 1/2/17(5)

      9,000        9,000  

Ohio State Higher Educational Facility Commission Revenue Bonds, Cleveland Clinic Health System,

      

0.70%, 1/2/17(5)

      4,000        4,000  

Oregon State G.O. Limited TANS, Series A,

      

2.00%, 6/30/17

      18,000        18,098  

Oregon State Health & Science University Variable Revenue Bonds, Series B-3

      

(U.S. Bank N.A. LOC),

      

0.71%, 1/2/17(5)

      10,000        10,000  

Rutherford County Health and Educational Facilities Housing Board Multifamily Revenue Bonds, Collateral Imperial Gardens Project,

      

0.95%, 7/1/17(5)

      2,000        1,997  

Saint Louis Park Variable Revenue Refunding Bonds, Westwind Apartments Project

      

(Fannie Mae LOC),

      

0.80%, 1/9/17(5)

      4,000        4,000  

San Antonio Water System Variable Revenue Refunding Bonds, Series B, Junior Lien,

      

1.12%, 11/1/17(5)

      21,500        21,506  

San Jose Multifamily Housing Revenue Bonds, Casa Del Pueblo Apartments,

      

0.95%, 6/1/17(5)

      7,000        6,992  

Shelby County Health Educational & Housing Facilities Board MFH Variable Revenue Bonds, Series A-1, Gateway Projects

      

(Fannie Mae LOC),

      

0.73%, 1/9/17(5)

      4,000        4,000  

Texas State Transportation Commission State Highway Fund Floating Revenue Bonds, Series B, First Tier,

      

1.07%, 4/1/17(5)

      43,000        42,998  

 

NORTHERN FUNDS QUARTERLY REPORT     17    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 17.6% continued

 

University Area Joint Authority Sewer Variable Revenue Refunding Bonds,

      

1.12%, 11/1/17(5)

    $ 5,400      $ 5,391  

Wisconsin State Health & Educational Facilities Authority Variable Revenue Bonds, Series B1, Aurora Health Care Services,

      

1.25%, 8/15/17(5)

      5,200        5,198  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $578,423)

         578,143  
     

 

 

  

Total Investments - 97.9%

(Cost $3,218,953)

         3,210,988  
     

 

 

  

Other Assets less Liabilities - 2.1%

         68,628  
     

 

 

  

NET ASSETS - 100.0%

       $ 3,279,616  
     

 

 

  

 

(1) Variable rate security. Rate as of December 31, 2016 is disclosed.
(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(3) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(4) Maturity date represents the prerefunded date.
(5) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the puttable date.
(6) Restricted security that has been deemed illiquid. At December 31, 2016, the value of these restricted illiquid securities amounted to approximately $84,104,000 or 2.6% of net assets. Additional information on these restricted illiquid securities is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

BB&T Municipal Trust Certificates Revenue Bonds, Class C (Rabobank Nederland LOC),

      

1.42%, 11/15/17

      11/19/14      $ 6,702  

Eaton Vance Ohio Municipal Income Trust Tax-Exempt Preferreds (AMT),

      

2.22%, 9/1/19

      2/24/16        11,400  

Nuveen AMT-Free Municipal Income Fund Tax-Exempt Preferreds, Important Shares Institutional Municipal Fund,

      

1.34%, 10/1/17

      3/27/14        15,000  

Nuveen AMT-Free Municipal Income Fund Tax-Exempt Preferreds, Important Shares Institutional Municipal Fund,

      

1.19%, 7/1/18

      12/17/14        7,000  

Nuveen Enhanced Municipal Credit Opportunities Fund Tax-Exempt Preferreds (AMT), Important Shares Institutional Municipal Fund,

      

1.47%, 10/1/17

      3/27/14        15,000  

Nuveen Quality Income Municipal Fund Tax-Exempt Preferreds (AMT), Important Shares Institutional Municipal Fund,

      

1.62%, 11/1/18

      4/7/15        18,000  

Eaton Vance New York Municipal Income Trust Tax-Exempt Preferreds (AMT),

      

2.22%, 1/9/17

      2/24/16        11,000  

 

(7) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the prerefunded date.
(8) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(9) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      1.9 % 

U.S. Agency

      0.7  

AAA

      15.9  

AA

      43.7  

A

      20.8  

BBB

      6.2  

A1+ (Short Term)

      2.2  

A1 (Short Term)

      5.7  

Not Rated

      2.5  

Cash Equivalents

      0.4  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are compiled from two external rating agencies: Moody’s and S&P Global. We report the lowest rating of the two in the event there are any differences between them. If neither of these rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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.

 

 

FIXED INCOME FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Corporate Bonds(1)

    $ —        $ 230,217      $ —        $ 230,217  

Foreign Issuer Bonds(1)

      —          132,307        —          132,307  

U.S. Government Agencies(1)

      —          23,667        —          23,667  

U.S. Government Obligations(1)

      —          59,403        —          59,403  

Municipal Bonds(1)

      —          2,175,850        —          2,175,850  

Investment Companies

      11,401        —          —          11,401  

Short-Term Investments

      —          578,143        —          578,143  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 11,401      $ 3,199,587      $ —        $ 3,210,988  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 3,218,957  
  

 

 

  

Gross tax appreciation of investments

    $ 2,999  

Gross tax depreciation of investments

      (10,968 ) 
  

 

 

  

Net tax depreciation of investments

    $ (7,969 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE,
END OF
PERIOD
(000S)		  

Northern Institutional Funds - Tax-Exempt Portfolio

    $ 6,297      $ 978,007      $ 984,304      $ 22      $ —    

Northern Institutional Funds - U.S. Government Portfolio

      —          399,070        387,669        18        11,401  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 6,297      $ 1,377,077      $ 1,371,973      $ 40      $ 11,401  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Institutional Funds - Tax-Exempt Portfolio was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BANS - Bond Anticipation Notes

COPS - Certificates of Participation

EDA - Economic Development Authority

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

GNMA - Government National Mortgage Association

Gtd. - Guaranteed

IDA - Industrial Development Authority

LOC - Letter of Credit

MFH - Multi-Family Housing

NATL - National Public Finance Guarantee Corporation

PCR - Pollution Control Revenue

PSF - Permanent School Fund

Q-SBLF - Qualified School Bond Loan Fund

RANS - Revenue Anticipation Notes

SCSDE - South Carolina State Department of Education

SIFMA - Securities Industry and Financial Markets Association

SonyMA - State of New York Mortgage Agency

TANS - Tax Anticipation Notes

TRANS - Tax and Revenue Aticipation Notes

TRB - Tax Revenue Bonds

 

NORTHERN FUNDS QUARTERLY REPORT    19    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

ULTRA-SHORT FIXED INCOME FUND    DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 11.6%

 

Auto Floor Plan - 1.2%

      

Ford Credit Floorplan Master Owner Trust, Series 2014-1, Class A1

      

1.20%, 2/15/19

    $ 2,000      $ 2,000  

Ford Credit Floorplan Master Owner Trust, Series 2016-3, Class A1

      

1.55%, 7/15/21

      3,000        2,969  

Ford Credit Floorplan Master Owner Trust, Series 2016-5, Class A2

      

1.11%, 11/15/21(1)

      5,000        5,000  

GMF Floorplan Owner Revolving Trust, Series 2016-1, Class A1

      

1.96%, 5/17/21(2)

      2,500        2,492  

Wells Fargo Dealer Floorplan Master Note Trust, Series 2014-1, Class A

      

1.12%, 7/20/19(1)

      12,810        12,812  
  

 

 

     

 

 

  
        25,273  
     

 

 

  

Automobile - 4.0%

      

Ally Auto Receivables Trust, Series 2015-2, Class A2A

      

0.98%, 3/15/18

      793        793  

Ally Auto Receivables Trust, Series 2016-1, Class A2A

      

1.20%, 8/15/18

      1,924        1,925  

AmeriCredit Automobile Receivables Trust, Series 2016-1, Class A2A

      

1.34%, 4/8/20

      2,500        2,499  

AmeriCredit Automobile Receivables Trust, Series 2016-2, Class A2A

      

1.42%, 10/8/19

      1,247        1,248  

AmeriCredit Automobile Receivables Trust, Series 2016-3, Class A2A

      

1.37%, 11/8/19

      4,800        4,802  

AmeriCredit Automobile Receivables, Series 2016-1, Class A2B

      

1.40%, 6/10/19(1)

      3,439        3,443  

ARI Fleet Lease Trust, Series 2014-A, Class A2

      

0.81%, 11/15/22(2)

      391        390  

ARI Fleet Lease Trust, Series 2015-A, Class A2

      

1.11%, 11/15/18(2)

      954        953  

BMW Vehicle Lease Trust, Series 2015-2, Class A2A

      

1.07%, 1/22/18

      1,677        1,677  

California Republic Auto Receivables Trust, Series 2016-1, Class A2

      

1.50%, 12/17/18

      1,961        1,963  

CarMax Auto Owner Trust, Series 2015-2, Class A2A

      

0.82%, 6/15/18

      85        85  

CarMax Auto Owner Trust, Series 2016-2, Class A2A

      

1.24%, 6/17/19

      1,795        1,795  

CarMax Auto Owner Trust, Series 2016-4, Class A2

      

1.21%, 11/15/19

      8,250        8,234  

Chesapeake Funding II LLC, Series 2016-2A, Class A1

      

1.88%, 6/15/28(2)

      7,000        6,982  

Chrysler Capital Auto Receivables Trust, Series 2016-BA, Class A2

      

1.36%, 1/15/20(2)

      3,000        2,996  

Enterprise Fleet Financing LLC, Series 2015-1, Class A2

      

1.30%, 9/20/20(2)

      1,251        1,250  

Enterprise Fleet Financing LLC, Series 2016-1, Class A2

      

1.83%, 9/20/21(2)

      4,834        4,836  

Enterprise Fleet Financing LLC, Series 2016-2, Class A2

      

1.74%, 2/22/22(2)

      4,000        3,989  

GM Financial Automobile Leasing Trust, Series 2015-1, Class A2

      

1.10%, 12/20/17

      464        464  

GM Financial Automobile Leasing Trust, Series 2015-2, Class A2B

      

1.16%, 4/20/18(1)

      2,079        2,078  

GM Financial Automobile Leasing Trust, Series 2016-1, Class A2A

      

1.30%, 7/20/18

      1,631        1,632  

Huntington Auto Trust, Series 2016-1, Class A1

      

0.85%, 12/15/17

      8,349        8,349  

Huntington Auto Trust, Series 2016-1, Class A2

      

1.29%, 5/15/19

      5,000        4,998  

Mercedes-Benz Auto Lease Trust, Series 2016-B, Class A2

      

1.15%, 1/15/19

      1,500        1,498  

 

 

NORTHERN FUNDS QUARTERLY REPORT    1     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 11.6% continued

 

Automobile - 4.0% continued

      

Nissan Auto Lease Trust, Series 2016-A, Class A2A

      

1.22%, 8/15/18

    $ 2,841      $ 2,841  

Nissan Auto Lease Trust, Series 2016-B, Class A2A

      

1.26%, 12/17/18

      3,000        2,998  

Santander Drive Auto Receivables Trust, Series 2015-4, Class A2A

      

1.20%, 12/17/18

      93        93  

Santander Drive Auto Receivables Trust, Series 2015-5, Class A2A

      

1.12%, 12/17/18

      548        548  

Santander Drive Auto Receivables Trust, Series 2016-3, Class A2

      

1.34%, 11/15/19

      4,000        4,001  

Securitized Term Auto Receivables Trust, Series 2016-1, Class A2A

      

1.28%, 11/26/18(2) (3)

      2,000        1,998  

SMART ABS Trust, Series 2016-2US, Class A1

      

0.77%, 10/16/17

      1,819        1,819  

World Omni Automobile Lease Securitization Trust, Series 2016-A, Class A2A

      

1.20%, 2/15/19

      4,500        4,493  
  

 

 

     

 

 

  
        87,670  
     

 

 

  

Credit Card - 5.5%

      

Capital One Multi-Asset Execution Trust, Series 2014-A5, Class A5

      

1.48%, 7/15/20

      5,500        5,511  

Capital One Multi-Asset Execution Trust, Series 2015-A5, Class A5

      

1.60%, 5/17/21

      3,500        3,510  

Capital One Multi-Asset Execution Trust, Series 2016-A1, Class A1

      

1.15%, 2/15/22(1)

      14,000        14,057  

Capital One Multi-Asset Execution Trust, Series 2016-A7, Class A7

      

1.12%, 9/16/24(1)

      3,250        3,251  

CARDS II Trust, Series 2015-2A, Class A

      

1.22%, 7/15/20(1)

      2,500        2,503  

Chase Issuance Trust, Series 2014-A1, Class A1

      

1.15%, 1/15/19

      2,000        2,000  

Chase Issuance Trust, Series 2016-A6, Class A6

      

1.10%, 1/15/20

      5,000        4,988  

Citibank Credit Card Issuance Trust, Series 2014-A2, Class A2

      

1.02%, 2/22/19

      5,000        5,000  

Citibank Credit Card Issuance Trust, Series 2014-A4, Class A4

      

1.23%, 4/24/19

      5,000        5,002  

Citibank Credit Card Issuance Trust, Series 2016-A1, Class A1

      

1.75%, 11/19/21

      3,250        3,236  

Citibank Credit Card Issuance Trust, Series 2016-A3, Class A3

      

1.27%, 12/7/23(1)

      15,000        15,007  

Discover Card Execution Note Trust, Series 2014-A3, Class A3

      

1.22%, 10/15/19

      3,000        3,001  

Discover Card Execution Note Trust, Series 2015-A3, Class A

      

1.45%, 3/15/21

      8,000        7,987  

Discover Card Execution Note Trust, Series 2016-A1, Class A1

      

1.64%, 7/15/21

      10,000        9,998  

Discover Card Execution Note Trust, Series 2016-A4, Class A4

      

1.39%, 3/15/22

      4,000        3,954  

Evergreen Credit Card Trust, Series 2016-1, Class A

      

1.42%, 4/15/20(1) (2) (3)

      4,000        4,018  

Evergreen Credit Card Trust, Series 2016-3, Class A

      

1.20%, 11/16/20(1) (2) (3)

      4,000        4,001  

First National Master Note Trust, Series 2015-1, Class A

      

1.47%, 9/15/20(1)

      2,000        2,006  

Golden Credit Card Trust, Series 2016-1A, Class A

      

1.30%, 1/15/20(1) (2)

      4,250        4,261  

Golden Credit Card Trust, Series 2016-5A, Class A

      

1.60%, 9/15/21(2)

      4,000        3,957  

Synchrony Credit Card Master Note Trust, Series 2015-2, Class A

      

1.60%, 4/15/21

      2,000        2,002  

 

FIXED INCOME FUNDS     2     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 11.6% continued

 

Credit Card - 5.5% continued

 

World Financial Network Credit Card Master Trust, Series 2015-A, Class A

      

1.18%, 2/15/22(1)

    $ 2,500      $ 2,505  

World Financial Network Credit Card Master Trust, Series 2016-C, Class A

      

1.72%, 8/15/23

      8,000        7,933  
  

 

 

     

 

 

  
        119,688  
     

 

 

  

Other - 0.5%

      

CNH Equipment Trust, Series 2016-B, Class A2A

      

1.31%, 10/15/19

      1,000        1,000  

Dell Equipment Finance Trust, Series 2015-1, Class A2

      

1.01%, 7/24/17(2)

      83        83  

John Deere Owner Trust, Series 2015-B, Class A2

      

0.98%, 6/15/18

      1,555        1,555  

Kubota Credit Owner Trust, Series 2015-1A, Class A2

      

0.94%, 12/15/17(2)

      205        205  

Verizon Owner Trust, Series 2016-1A, Class A

      

1.42%, 1/20/21(2)

      2,500        2,483  

Verizon Owner Trust, Series 2016-2A, Class A

      

1.68%, 5/20/21(2)

      4,500        4,482  

Volvo Financial Equipment LLC, Series 2015-1A, Class A2

      

0.95%, 11/15/17(2)

      214        214  
  

 

 

     

 

 

  
        10,022  
     

 

 

  

Whole Loan - 0.4%

      

Permanent Master Issuer PLC, Series 2015-1A, Class A1

      

1.38%, 7/15/42(1) (2) (3)

      4,000        4,003  

Silverstone Master Issuer PLC, Series 2016-1A, Class 1A1

      

1.63%, 1/21/70(1) (2) (3)

      5,000        5,024  
  

 

 

     

 

 

  
        9,027  
     

 

 

  

Total Asset-Backed Securities

(Cost $251,837)

         251,680  
     

 

 

  

CORPORATE BONDS - 40.2%

      

Aerospace & Defense - 0.6%

      

United Technologies Corp.,

      

1.50%, 11/1/19

      12,510        12,418  
  

 

 

     

 

 

  

Automobiles Manufacturing - 5.8%

      

American Honda Finance Corp.,

      

1.50%, 9/11/17(2)

      700        702  

1.19%, 11/19/18(1)

      13,500        13,510  

1.70%, 2/22/19

      4,000        3,984  

1.74%, 2/22/19(1)

      4,650        4,695  

1.20%, 7/12/19

      3,300        3,241  

Daimler Finance North America LLC,

      

1.35%, 3/2/18(1) (2)

      3,600        3,605  

1.65%, 3/2/18(2)

      6,000        5,992  

1.75%, 8/1/18(1) (2)

      5,000        5,031  

Ford Motor Credit Co. LLC,

      

1.68%, 9/8/17

      2,000        1,997  

2.55%, 10/5/18

      1,500        1,508  

1.78%, 3/12/19(1)

      15,000        15,022  

General Motors Financial Co., Inc.,

      

2.94%, 1/15/19(1)

      18,000        18,318  

Harley-Davidson Financial Services, Inc.,

      

2.25%, 1/15/19(2)

      4,000        4,017  

Nissan Motor Acceptance Corp.,

      

1.49%, 3/3/17(1) (2)

      10,000        10,009  

1.66%, 4/6/18(1) (2)

      5,000        5,027  

Toyota Motor Credit Corp.,

      

1.25%, 10/5/17

      1,000        1,000  

1.55%, 10/18/19

      9,000        8,891  

1.32%, 3/12/20(1)

      13,000        13,017  

Volkswagen Group of America Finance LLC,

      

1.29%, 5/23/17(1) (2)

      4,000        3,996  

1.39%, 5/22/18(1) (2)

      1,000        995  
  

 

 

     

 

 

  
        124,557  
     

 

 

  

Banks - 2.9%

      

Capital One N.A.,

      

1.50%, 9/5/17

      4,100        4,095  

1.65%, 2/5/18

      3,000        2,994  

2.35%, 8/17/18

      2,750        2,766  

1.72%, 9/13/19(1)

      9,500        9,534  

HSBC USA, Inc.,

      

1.88%, 9/24/18(1)

      5,000        5,011  

1.51%, 11/13/19(1)

      10,000        9,967  

 

NORTHERN FUNDS QUARTERLY REPORT    3     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 40.2% continued

 

Banks - 2.9% continued

      

MUFG Americas Holdings Corp.,

      

1.63%, 2/9/18

    $ 2,000      $ 1,993  

PNC Bank N.A.,

      

1.85%, 7/20/18

      5,000        5,009  

1.35%, 12/7/18(1)

      5,000        5,003  

2.20%, 1/28/19

      3,500        3,519  

Wells Fargo Bank N.A.,

      

1.65%, 1/22/18

      2,000        2,000  

1.75%, 5/24/19

      6,200        6,170  

1.60%, 12/6/19(1)

      5,000        5,012  
  

 

 

     

 

 

  
        63,073  
     

 

 

  

Biotechnology - 2.4%

      

Amgen, Inc.,

      

2.13%, 5/15/17

      3,000        3,010  

1.25%, 5/22/17

      2,384        2,384  

1.52%, 5/22/19(1)

      11,965        12,038  

Celgene Corp.,

      

2.13%, 8/15/18

      2,500        2,510  

Gilead Sciences, Inc.,

      

1.85%, 9/4/18

      2,300        2,309  

Roche Holdings, Inc.,

      

1.34%, 9/30/19(1) (2)

      29,100        29,126  
  

 

 

     

 

 

  
        51,377  
     

 

 

  

Chemicals - 0.2%

      

Monsanto Co.,

      

1.15%, 6/30/17

      5,000        4,996  
  

 

 

     

 

 

  

Commercial Finance - 0.3%

      

GATX Corp.,

      

1.25%, 3/4/17

      6,000        5,998  
  

 

 

     

 

 

  

Communications Equipment - 2.0%

      

Apple, Inc.,

      

1.13%, 5/3/18(1)

      3,778        3,786  

1.74%, 2/22/19(1)

      16,860        17,093  

Cisco Systems, Inc.,

      

1.60%, 2/28/19

      4,500        4,490  

1.43%, 3/1/19(1)

      17,500        17,600  
  

 

 

     

 

 

  
        42,969  
     

 

 

  

Consumer Finance - 0.9%

      

American Express Credit Corp.,

      

1.66%, 11/5/18(1)

      2,400        2,415  

1.46%, 10/30/19(1)

      3,150        3,155  

1.70%, 10/30/19

      4,000        3,961  

1.67%, 5/26/20(1)

      7,500        7,541  

Synchrony Financial,

      

1.88%, 8/15/17

      3,500        3,503  
  

 

 

     

 

 

  
        20,575  
     

 

 

  

Diversified Banks - 2.6%

      

Bank of America Corp.,

      

2.07%, 3/22/18(1)

      6,000        6,040  

1.92%, 1/15/19(1)

      3,000        3,027  

1.87%, 4/1/19(1)

      5,000        5,024  

2.30%, 4/19/21(1)

      7,000        7,191  

Citigroup, Inc.,

      

1.64%, 4/8/19(1)

      5,000        5,006  

2.02%, 12/8/21(1)

      5,000        5,019  

JPMorgan Chase & Co.,

      

1.44%, 3/1/18(1)

      4,200        4,208  

1.52%, 1/28/19(1)

      4,000        4,013  

1.84%, 1/23/20(1)

      7,000        7,077  

Wells Fargo & Co.,

      

1.50%, 1/16/18

      2,000        1,998  

1.51%, 4/23/18(1)

      1,215        1,220  

1.34%, 4/22/19(1)

      6,983        6,969  
  

 

 

     

 

 

  
        56,792  
     

 

 

  

Electrical Equipment Manufacturing - 1.3%

      

General Electric Co.,

      

1.71%, 4/2/18(1)

      3,991        4,020  

1.39%, 1/14/19(1)

      3,100        3,120  

1.50%, 1/9/20(1)

      10,000        10,077  

Honeywell International, Inc.,

      

1.40%, 10/30/19

      11,000        10,898  
  

 

 

     

 

 

  
        28,115  
     

 

 

  

Entertainment Content - 0.4%

      

Walt Disney (The) Co.,

      

1.10%, 12/1/17

      5,189        5,185  

1.65%, 1/8/19

      2,345        2,347  

1.25%, 5/30/19(1)

      1,000        1,000  
  

 

 

     

 

 

  
        8,532  
     

 

 

  

Financial Services - 2.7%

      

Bank of New York Mellon (The) Corp.,

      

1.43%, 9/11/19(1)

      8,000        8,009  

1.78%, 8/17/20(1)

      2,000        2,030  

 

FIXED INCOME FUNDS     4     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 40.2% continued

 

Financial Services - 2.7% continued

      

General Electric Co./LJ VP Holdings LLC,

      

3.80%, 6/18/19(2)

    $ 2,475      $ 2,587  

Goldman Sachs Group (The), Inc.,

      

1.76%, 12/13/19(1)

      10,000        10,000  

2.16%, 9/15/20(1)

      7,000        7,065  

Morgan Stanley,

      

1.74%, 1/5/18(1)

      5,000        5,019  

2.16%, 4/25/18(1)

      1,000        1,011  

1.73%, 1/24/19(1)

      4,000        4,025  

2.45%, 2/1/19

      5,000        5,034  

1.62%, 7/23/19(1)

      5,000        5,021  

2.28%, 4/21/21(1)

      4,000        4,084  

State Street Corp.,

      

1.81%, 8/18/20(1)

      5,000        5,067  
  

 

 

     

 

 

  
        58,952  
     

 

 

  

Food & Beverage - 1.8%

      

Anheuser-Busch InBev Finance, Inc.,

      

1.29%, 2/1/19(1)

      24,945        24,973  

Anheuser-Busch InBev Worldwide, Inc.,

      

1.38%, 7/15/17

      6,093        6,098  

1.58%, 8/1/18(1)

      8,625        8,678  
  

 

 

     

 

 

  
        39,749  
     

 

 

  

Health Care Facilities & Services - 0.2%

      

Express Scripts Holding Co.,

      

1.25%, 6/2/17

      5,250        5,230  
  

 

 

     

 

 

  

Home Improvement - 0.2%

      

Stanley Black & Decker, Inc.,

      

1.62%, 11/17/18

      3,000        2,982  

Whirlpool Corp.,

      

1.35%, 3/1/17

      1,000        1,000  
  

 

 

     

 

 

  
        3,982  
     

 

 

  

Integrated Oils - 1.5%

      

Chevron Corp.,

      

1.37%, 3/2/18

      12,695        12,682  

1.32%, 11/15/19(1)

      8,500        8,504  

Exxon Mobil Corp.,

      

1.44%, 3/1/18

      1,000        1,001  

1.71%, 3/1/19

      7,500        7,516  

1.71%, 3/1/19(1)

      1,770        1,794  
  

 

 

     

 

 

  
        31,497  
     

 

 

  

Machinery Manufacturing - 1.9%

      

Caterpillar Financial Services Corp.,

      

1.12%, 6/9/17(1)

      1,880        1,881  

1.25%, 8/18/17

      4,300        4,301  

1.70%, 6/16/18

      4,600        4,604  

1.80%, 11/13/18

      5,750        5,750  

1.35%, 5/18/19

      9,876        9,739  

John Deere Capital Corp.,

      

1.20%, 10/10/17

      7,000        6,995  

1.35%, 1/16/18

      1,500        1,498  

1.30%, 3/12/18

      535        534  

1.60%, 7/13/18

      1,000        1,000  

1.44%, 1/8/19(1)

      1,055        1,061  

1.95%, 1/8/19

      3,000        3,013  
  

 

 

     

 

 

  
        40,376  
     

 

 

  

Managed Care - 0.6%

      

UnitedHealth Group, Inc.,

      

1.90%, 7/16/18

      12,000        12,053  
  

 

 

     

 

 

  

Mass Merchants - 0.1%

      

Wal-Mart Stores, Inc.,

      

1.13%, 4/11/18

      3,250        3,242  
  

 

 

     

 

 

  

Medical Equipment & Devices Manufacturing - 0.6%

      

Becton Dickinson and Co.,

      

1.80%, 12/15/17

      2,319        2,324  

Medtronic, Inc.,

      

1.50%, 3/15/18

      1,835        1,835  

1.76%, 3/15/20(1)

      2,355        2,378  

Zimmer Biomet Holdings, Inc.,

      

1.45%, 4/1/17

      6,250        6,252  
  

 

 

     

 

 

  
        12,789  
     

 

 

  

Oil & Gas Services & Equipment - 0.1%

      

Cameron International Corp.,

      

1.40%, 6/15/17

      3,300        3,299  
  

 

 

     

 

 

  

Pharmaceuticals - 1.7%

      

AbbVie, Inc.,

      

1.80%, 5/14/18

      4,000        4,003  

Eli Lilly & Co.,

      

1.25%, 3/1/18

      3,705        3,706  

1.95%, 3/15/19

      1,225        1,233  

Merck & Co., Inc.,

      

1.26%, 2/10/20(1)

      18,714        18,811  

 

NORTHERN FUNDS QUARTERLY REPORT    5     FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 40.2% continued

 

Pharmaceuticals - 1.7% continued

      

Pfizer, Inc.,

      

1.10%, 5/15/17

    $ 5,000      $ 5,000  

1.50%, 6/15/18

      4,000        4,006  
  

 

 

     

 

 

  
        36,759  
     

 

 

  

Pipeline - 0.1%

      

Enterprise Products Operating LLC,

      

1.65%, 5/7/18

      3,000        2,992  
  

 

 

     

 

 

  

Property & Casualty Insurance - 0.9%

      

Berkshire Hathaway Finance Corp.,

      

1.60%, 5/15/17

      1,005        1,007  

1.17%, 1/12/18(1)

      6,000        6,016  

1.17%, 8/15/19(1)

      8,350        8,373  

1.30%, 8/15/19

      3,000        2,963  

Berkshire Hathaway, Inc.,

      

1.03%, 8/6/18(1)

      1,554        1,555  
  

 

 

     

 

 

  
        19,914  
     

 

 

  

Publishing & Broadcasting - 0.4%

      

NBCUniversal Enterprise, Inc.,

      

1.57%, 4/15/18(1) (2)

      9,137        9,193  
  

 

 

     

 

 

  

Real Estate - 0.7%

      

Simon Property Group L.P.,

      

1.50%, 2/1/18(2)

      5,950        5,948  

Ventas Realty L.P.,

      

1.25%, 4/17/17

      4,000        3,998  

WEA Finance LLC/Westfield UK & Europe Finance PLC,

      

1.75%, 9/15/17(2)

      5,000        5,003  
  

 

 

     

 

 

  
        14,949  
     

 

 

  

Retail - Consumer Discretionary - 1.3%

      

Amazon.com, Inc.,

      

1.20%, 11/29/17

      3,975        3,976  

AutoZone, Inc.,

      

1.30%, 1/13/17

      5,050        5,050  

Home Depot (The), Inc.,

      

2.00%, 6/15/19

      1,611        1,625  

Lowe’s Cos., Inc.,

      

1.63%, 4/15/17

      2,500        2,503  

1.56%, 9/14/18(1)

      4,550        4,585  

1.15%, 4/15/19

      1,000        988  

1.37%, 9/10/19(1)

      9,850        9,874  
  

 

 

     

 

 

  
        28,601  
     

 

 

  

Retail - Consumer Staples - 0.1%

      

Sysco Corp.,

      

1.90%, 4/1/19

      1,350        1,346  
  

 

 

     

 

 

  

Semiconductors - 0.4%

      

Intel Corp.,

      

1.35%, 12/15/17

      6,880        6,890  

KLA-Tencor Corp.,

      

2.38%, 11/1/17

      1,000        1,006  
  

 

 

     

 

 

  
        7,896  
     

 

 

  

Software & Services - 1.0%

      

International Business Machines Corp.,

      

1.27%, 2/12/19(1)

      2,500        2,511  

Microsoft Corp.,

      

1.10%, 8/8/19

      3,000        2,960  

Oracle Corp.,

      

1.20%, 10/15/17

      8,330        8,332  

1.46%, 1/15/19(1)

      7,990        8,055  
  

 

 

     

 

 

  
        21,858  
     

 

 

  

Supermarkets & Pharmacies - 0.6%

      

CVS Health Corp.,

      

1.90%, 7/20/18

      4,000        4,015  

Kroger (The) Co.,

      

2.00%, 1/15/19

      3,500        3,508  

Walgreens Boots Alliance, Inc.,

      

1.75%, 5/30/18

      4,500        4,505  
  

 

 

     

 

 

  
        12,028  
     

 

 

  

Transportation & Logistics - 1.1%

      

PACCAR Financial Corp.,

      

1.10%, 6/6/17

      3,000        2,999  

1.40%, 11/17/17

      3,000        3,005  

1.45%, 3/9/18

      1,000        1,000  

1.40%, 5/18/18

      12,345        12,332  

1.75%, 8/14/18

      2,000        2,009  

1.20%, 8/12/19

      1,500        1,476  
  

 

 

     

 

 

  
        22,821  
     

 

 

  

Utilities - 1.8%

      

Exelon Corp.,

      

1.55%, 6/9/17

      4,000        3,993  

Public Service Enterprise Group, Inc.,

      

1.60%, 11/15/19

      10,000        9,856  

Sempra Energy,

      

1.63%, 10/7/19

      5,000        4,936  

 

FIXED INCOME FUNDS     6     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 40.2% continued

      

Utilities - 1.8% continued

      

Southern (The) Co.,

      

1.30%, 8/15/17

    $ 9,500      $ 9,495  

WEC Energy Group, Inc.,

      

1.65%, 6/15/18

      7,500        7,493  

Xcel Energy, Inc.,

      

1.20%, 6/1/17

      3,000        2,997  
  

 

 

     

 

 

  
        38,770  
     

 

 

  

Wireless Telecommunications Services - 1.0%

      

AT&T, Inc.,

      

2.40%, 3/15/17

      4,000        4,010  

Verizon Communications, Inc.,

      

2.71%, 9/14/18(1)

      14,345        14,665  

1.76%, 6/17/19(1)

      4,000        4,036  
  

 

 

     

 

 

  
        22,711  
     

 

 

  

Total Corporate Bonds

(Cost $869,946)

         870,409  
     

 

 

  

FOREIGN ISSUER BONDS - 24.2%

      

Automobiles Manufacturing - 0.4%

      

Hyundai Capital Services, Inc.,

      

1.79%, 3/18/17(1) (2)

      3,000        3,001  

1.63%, 8/30/19(2)

      5,000        4,920  
  

 

 

     

 

 

  
        7,921  
     

 

 

  

Banks - 8.3%

      

Australia & New Zealand Banking Group Ltd.,

      

1.50%, 1/16/18

      4,000        3,997  

1.47%, 5/15/18(1)

      3,500        3,512  

Banque Federative du Credit Mutuel S.A.,

      

1.73%, 1/20/17(1) (2)

      2,500        2,501  

BNZ International Funding Ltd.,

      

1.90%, 2/26/18(2)

      3,500        3,503  

BPCE S.A.,

      

1.63%, 2/10/17

      1,700        1,700  

Commonwealth Bank of Australia,

      

1.52%, 11/7/19(1) (2)

      14,900        14,907  

1.78%, 9/6/21(1) (2)

      5,604        5,612  

Cooperatieve Rabobank U.A.,

      

1.38%, 8/9/19

      10,000        9,842  

DNB Bank ASA,

      

2.00%, 6/2/21(1) (2)

      10,000        10,086  

HSBC Bank PLC,

      

1.55%, 5/15/18(1) (2)

      3,000        3,001  

ING Bank N.V.,

      

1.52%, 3/16/18(1) (2)

      4,500        4,508  

2.05%, 8/17/18(2)

      5,000        5,004  

1.65%, 8/15/19(2)

      3,000        2,959  

Lloyds Bank PLC,

      

1.49%, 3/16/18(1)

      7,300        7,310  

1.45%, 5/14/18(1)

      3,950        3,958  

2.05%, 1/22/19

      4,900        4,895  

Macquarie Bank Ltd.,

      

1.65%, 3/24/17(2)

      5,000        5,004  

1.52%, 10/27/17(1) (2)

      5,500        5,506  

Mizuho Bank Ltd.,

      

1.80%, 3/26/18(2)

      3,000        2,996  

National Australia Bank Ltd.,

      

1.52%, 7/23/18(1) (2)

      1,400        1,404  

1.38%, 7/12/19

      1,000        982  

Santander UK PLC,

      

1.38%, 3/13/17

      5,000        5,001  

Shinhan Bank,

      

1.53%, 4/8/17(1) (2)

      3,000        2,999  

Skandinaviska Enskilda Banken AB,

      

1.50%, 9/13/19

      6,620        6,509  

Sumitomo Mitsui Banking Corp.,

      

1.95%, 7/23/18

      5,000        4,996  

Suncorp-Metway Ltd.,

      

1.70%, 3/28/17(2)

      5,000        4,995  

Svenska Handelsbanken,

      

1.53%, 1/11/19(1)

      6,100        6,098  

Svenska Handelsbanken AB,

      

1.48%, 6/17/19(1)

      2,500        2,502  

1.44%, 9/6/19(1)

      8,136        8,136  

Toronto-Dominion Bank (The),

      

1.63%, 3/13/18

      3,737        3,741  

1.40%, 4/30/18

      3,000        2,993  

Westpac Banking Corp.,

      

1.20%, 5/19/17

      1,250        1,250  

1.63%, 7/30/18(1)

      5,000        5,027  

1.65%, 5/13/19

      5,282        5,226  

1.60%, 8/19/19

      7,000        6,917  

1.76%, 8/19/21(1)

      10,000        10,029  
  

 

 

     

 

 

  
        179,606  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 24.2% continued

      

Diversified Banks - 3.9%

      

Bank of Montreal,

      

1.35%, 8/28/18

    $ 1,000      $ 995  

1.50%, 7/18/19

      4,450        4,392  

1.73%, 8/27/21(1)

      7,000        7,018  

Bank of Nova Scotia (The),,

      

1.56%, 12/5/19(1)

      10,000        10,012  

BNP Paribas S.A.,

      

2.40%, 12/12/18

      5,550        5,594  

Credit Agricole S.A.,

      

1.68%, 4/15/19(1) (2)

      10,000        10,043  

1.92%, 6/10/20(1) (2)

      4,000        4,014  

HSBC Holdings PLC,

      

2.59%, 5/25/21(1)

      10,000        10,214  

Mizuho Financial Group, Inc.,

      

2.35%, 4/12/21(1) (2)

      2,700        2,746  

2.10%, 9/13/21(1)

      5,000        4,998  

Nordea Bank AB,

      

1.63%, 5/15/18(2)

      2,100        2,095  

1.63%, 9/30/19(2)

      9,000        8,886  

Societe Generale S.A.,

      

2.08%, 10/1/18(1)

      3,000        3,026  

Sumitomo Mitsui Financial Group, Inc.,

      

2.63%, 3/9/21(1)

      10,000        10,288  
  

 

 

     

 

 

  
        84,321  
     

 

 

  

Electrical Equipment Manufacturing - 1.2%

      

Siemens Financieringsmaatschappij N.V.,

      

1.21%, 5/25/18(1) (2)

      2,550        2,551  

1.45%, 5/25/18(2)

      7,000        6,992  

1.28%, 9/13/19(1) (2)

      5,025        5,015  

1.30%, 9/13/19(2)

      11,815        11,592  
  

 

 

     

 

 

  
        26,150  
     

 

 

  

Exploration & Production - 1.0%

      

CNPC General Capital Ltd.,

      

1.80%, 5/14/17(1) (2)

      2,500        2,501  

Sinopec Group Overseas Development 2014 Ltd.,

      

1.80%, 4/10/19(1) (2)

      20,000        20,031  
  

 

 

     

 

 

  
        22,532  
     

 

 

  

Financial Services - 1.1%

      

Hutchison Whampoa International 14 Ltd.,

      

1.63%, 10/31/17(2)

      4,000        3,991  

UBS A.G.,

      

1.54%, 8/14/19(1)

      8,500        8,523  

UBS Group Funding Jersey Ltd.,

      

2.44%, 9/24/20(1) (2)

      10,000        10,116  
  

 

 

     

 

 

  
        22,630  
     

 

 

  

Food & Beverage - 1.2%

      

Mondelez International Holdings Netherlands B.V.,

      

1.63%, 10/28/19(2)

      10,000        9,803  

Suntory Holdings Ltd.,

      

1.65%, 9/29/17(2)

      15,000        15,006  
  

 

 

     

 

 

  
        24,809  
     

 

 

  

Government Agencies - 0.7%

      

Kommunalbanken A.S.,

      

1.08%, 9/8/21(1) (2) (3)

      10,000        9,995  

Korea Expressway Corp.,

      

1.63%, 4/28/17(2)

      5,000        4,997  
  

 

 

     

 

 

  
        14,992  
     

 

 

  

Government Development Banks - 0.2%

      

Export-Import Bank of Korea,

      

1.50%, 10/21/19

      3,000        2,954  

Svensk Exportkredit AB,

      

1.21%, 1/14/19(1)

      1,500        1,505  
  

 

 

     

 

 

  
        4,459  
     

 

 

  

Government Regional - 0.2%

      

Province of Ontario Canada,

      

1.63%, 1/18/19

      4,000        3,999  
  

 

 

     

 

 

  

Integrated Oils - 3.9%

      

BP Capital Markets PLC,

      

1.23%, 2/10/17(1)

      2,000        2,000  

1.67%, 2/13/18

      3,000        3,003  

1.38%, 5/10/18

      1,000        997  

1.63%, 9/26/18(1)

      5,000        5,019  

1.68%, 5/3/19

      1,000        993  

1.84%, 9/16/21(1)

      4,300        4,317  

CNOOC Nexen Finance 2014 ULC,

      

1.63%, 4/30/17

      1,000        999  

Shell International Finance B.V.,

      

1.46%, 11/10/18(1)

      4,000        4,027  

1.63%, 11/10/18

      7,000        7,008  

1.38%, 5/10/19

      5,000        4,955  

1.30%, 9/12/19(1)

      1,545        1,546  

 

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 24.2% continued

      

Integrated Oils - 3.9% continued

      

1.38%, 9/12/19

    $ 13,426      $ 13,238  

1.35%, 5/11/20(1)

      5,035        5,038  

Statoil ASA,

      

1.15%, 5/15/18

      3,750        3,727  

1.20%, 5/15/18(1)

      8,770        8,766  

1.34%, 11/8/18(1)

      6,000        6,007  

Total Capital International S.A.,

      

1.00%, 1/10/17

      1,200        1,200  

1.45%, 8/10/18(1)

      3,969        3,979  

2.13%, 1/10/19

      7,000        7,056  
  

 

 

     

 

 

  
        83,875  
     

 

 

  

Metals & Mining - 0.2%

      

BHP Billiton Finance USA Ltd.,

      

2.05%, 9/30/18

      3,900        3,922  
  

 

 

     

 

 

  

Pharmaceuticals - 1.0%

      

Actavis Funding SCS,

      

1.30%, 6/15/17

      9,000        8,995  

2.35%, 3/12/18

      5,000        5,029  

AstraZeneca PLC,

      

1.44%, 11/16/18(1)

      3,000        3,017  

Mylan N.V.,

      

2.50%, 6/7/19(2)

      2,000        1,989  

Sanofi,

      

1.25%, 4/10/18

      3,277        3,271  
  

 

 

     

 

 

  
        22,301  
     

 

 

  

Pipeline - 0.1%

      

TransCanada PipeLines Ltd.,

      

1.88%, 1/12/18

      2,000        2,003  
  

 

 

     

 

 

  

Power Generation - 0.3%

      

Electricite de France S.A.,

      

1.34%, 1/20/17(1) (2)

      6,000        6,001  
  

 

 

     

 

 

  

Software & Services - 0.1%

      

Tencent Holdings Ltd.,

      

2.00%, 5/2/17(2)

      3,000        3,001  
  

 

 

     

 

 

  

Supranationals - 0.1%

      

Corp. Andina de Fomento,

      

1.50%, 8/8/17

      3,000        2,999  
  

 

 

     

 

 

  

Wireless Telecommunications Services - 0.1%

      

KT Corp.,

      

1.75%, 4/22/17(2)

      3,000        2,999  
  

 

 

     

 

 

  

Wireline Telecommunications Services - 0.2%

      

Deutsche Telekom International Finance B.V.,

      

1.50%, 9/19/19(2)

      5,000        4,919  
  

 

 

     

 

 

  

Total Foreign Issuer Bonds

(Cost $523,683)

         523,439  
     

 

 

  

U.S. GOVERNMENT AGENCIES - 3.7%(4)

      

Fannie Mae - 0.2%

      

2.50%, 9/28/17

      4,400        4,453  
  

 

 

     

 

 

  

Federal Home Loan Bank - 3.5%

      

Federal Home Loan Banks,

      

0.43%, 1/11/17

      75,000        74,998  

0.88%, 6/29/18

      1,000        997  
  

 

 

     

 

 

  
        75,995  
     

 

 

  

Total U.S. Government Agencies

(Cost $80,451)

         80,448  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 13.2%

      

U.S. Treasury Notes - 13.2%

      

0.75%, 10/31/17

      5,000        4,996  

1.00%, 2/15/18

      13,500        13,505  

0.75%, 3/31/18

      10,000        9,971  

0.63%, 4/30/18

      10,000        9,951  

0.75%, 4/30/18

      1,000        997  

0.63%, 6/30/18

      23,000        22,855  

0.75%, 7/31/18

      5,000        4,973  

0.75%, 8/31/18

      10,000        9,938  

1.00%, 9/15/18

      20,000        19,958  

0.75%, 9/30/18

      15,000        14,899  

1.25%, 12/15/18

      39,000        39,043  

0.75%, 2/15/19

      5,000        4,950  

0.88%, 4/15/19

      41,000        40,632  

0.88%, 5/15/19

      7,000        6,933  

0.88%, 6/15/19

      40,000        39,581  

0.75%, 7/15/19

      7,000        6,898  

0.88%, 9/15/19

      10,000        9,869  

1.00%, 10/15/19

      25,000        24,732  
  

 

 

     

 

 

  
        284,681  
     

 

 

  

Total U.S. Government Obligations

(Cost $286,537)

         284,681  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 0.1%

      

Texas - 0.1%

      

Harris County-Houston Sports Authority Taxable Revenue Refunding Bonds,
Series B,

      

1.89%, 11/15/17

    $ 1,915      $ 1,924  
  

 

 

     

 

 

  

Total Municipal Bonds

(Cost $1,915)

         1,924  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 6.8%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(5) (6)

      146,147,388      $ 146,147  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $146,147)

         146,147  
     

 

 

  

Total Investments - 99.8%

(Cost $2,160,516)

         2,158,728  
     

 

 

  

Other Assets less Liabilities - 0.2%

         4,672  
     

 

 

  

NET ASSETS - 100.0%

       $ 2,163,400  
     

 

 

  

 

(1) Variable rate security. Rate as of December 31, 2016 is disclosed.
(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(3) Restricted security that has been deemed illiquid. At December 31, 2016, the value of these restricted illiquid securities amounted to approximately $29,039,000 or 1.3% of net assets. Additional information on these restricted illiquid securities is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

Evergreen Credit Card Trust, Series 2016-1, Class A,

      

1.42%, 4/15/20

      5/13/16      $ 4,000  

Evergreen Credit Card Trust, Series 2016-3, Class A,

      

1.20%, 11/16/20

      11/17/16        4,000  

Kommunalbanken A.S.,

      

1.08%, 9/8/21

      12/13/16        9,909  

Permanent Master Issuer PLC, Series 2015-1A, Class A1,

      

1.38%, 7/15/42

      10/14/15        4,000  

Securitized Term Auto Receivables Trust, Series 2016-1, Class A2A,

      

1.28%, 11/26/18

      10/14/16        2,000  

Silverstone Master Issuer PLC, Series 2016-1A, Class 1A1,

      

1.63%, 1/21/70

      2/18/16        5,000  

 

(4) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(6) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      13.2 % 

U.S. Agency

      3.7  

AAA

      11.8  

AA

      17.5  

A

      33.1  

BBB

      13.4  

Not Rated

      0.5  

Cash Equivalents

      6.8  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

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

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

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

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

 

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Asset-Backed Securities(1)

    $ —        $ 251,680      $ —        $ 251,680  

Corporate Bonds(1)

      —          870,409        —          870,409  

Foreign Issuer Bonds(1)

      —          523,439        —          523,439  

U.S. Government Agencies(1)

      —          80,448        —          80,448  

U.S. Government Obligations(1)

      —          284,681        —          284,681  

Municipal Bonds

      —          1,924        —          1,924  

Investment Companies

      146,147        —          —          146,147  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 146,147      $ 2,012,581      $ —        $ 2,158,728  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 2,160,516  
  

 

 

  

Gross tax appreciation of investments

    $ 3,484  

Gross tax depreciation of investments

      (5,272 ) 
  

 

 

  

Net tax depreciation of investments

    $ (1,788 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 53,916      $ 1,134,553      $ 1,042,322      $ 90      $ 146,147  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

Fannie Mae - Federal National Mortgage Association

 

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

U.S. GOVERNMENT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 23.8%(1)

      

Fannie Mae - 10.7%

      

0.88%, 8/2/19

    $ 500      $ 493  

1.38%, 10/7/21

      500        486  

Pool #555649,

      

7.50%, 10/1/32

      58        65  

Pool #893082

      

3.15%, 9/1/36(2)

      151        160  

Pool #AB6782,

      

2.50%, 11/1/27

      171        171  

Pool #AO7970,

      

2.50%, 6/1/27

      124        125  

Pool #AQ9360,

      

2.50%, 1/1/28

      423        425  

Pool #AS7568

      

4.50%, 7/1/46

      689        742  
  

 

 

     

 

 

  
        2,667  
     

 

 

  

Federal Home Loan Bank - 4.0%

      

Federal Home Loan Banks,

      

1.25%, 1/16/19

      500        500  

1.88%, 11/29/21

      500        496  
  

 

 

     

 

 

  
        996  
     

 

 

  

Freddie Mac - 3.4%

      

Pool #1J0365

      

3.02%, 4/1/37(2)

      296        313  

Pool #1J2840

      

3.15%, 9/1/37(2)

      474        505  

Pool #410092,

      

2.66%, 11/1/24(2)

      19        20  
  

 

 

     

 

 

  
        838  
     

 

 

  

Freddie Mac Gold - 2.5%

      

Pool #G08617,

      

4.50%, 11/1/44

      175        188  

Pool #V60613,

      

2.50%, 9/1/29

      432        433  
  

 

 

     

 

 

  
        621  
     

 

 

  

Government National Mortgage Association - 3.2%

      

Series 2012-123, Class A,

      

1.04%, 7/16/46

      371        350  

Series 2013-12, Class KA,

      

1.50%, 12/16/43

      93        93  

Series 2013-17, Class AF,

      

1.21%, 11/16/43

      380        370  
  

 

 

     

 

 

  
        813  
     

 

 

  

Government National Mortgage Association I - 0.0%

      

Pool #268360,

      

10.00%, 4/15/19

      2        2  

Pool #270288,

      

10.00%, 6/15/19

      6        6  
  

 

 

     

 

 

  
        8  
     

 

 

  

Total U.S. Government Agencies

(Cost $5,994)

         5,943  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 68.1%

      

U.S. Treasury Inflation Indexed Notes - 5.5%

      

0.13%, 4/15/21

      1,350        1,385  
  

 

 

     

 

 

  

U.S. Treasury Notes - 62.6%

      

1.25%, 12/31/18

      4,365        4,369  

1.63%, 4/30/19

      415        418  

1.38%, 12/15/19

      2,910        2,903  

1.38%, 4/30/20

      120        119  

2.00%, 2/28/21

      2,055        2,071  

2.00%, 12/31/21

      1,210        1,214  

1.75%, 3/31/22

      400        395  

2.25%, 12/31/23

      3,480        3,482  

2.00%, 11/15/26

      700        674  
  

 

 

     

 

 

  
        15,645  
     

 

 

  

Total U.S. Government Obligations

(Cost $17,025)

         17,030  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 42.2%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(3) (4)

      10,533,864      $ 10,534  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $10,534)

         10,534  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 2.0%

 

U.S. Treasury Bill,

      

0.47%, 2/23/17(5) (6)

    $ 500      $ 500  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $500)

         500  
     

 

 

  

Total Investments - 136.1%

(Cost $34,053)

         34,007  
     

 

 

  

Liabilities less Other Assets - (36.1%)

         (9,017 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 24,990  
     

 

 

  

 

(1) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed.
(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(4) 7-day yield as of December 31, 2016 is disclosed.
(5) Discount rate at the time of purchase.
(6) Security pledged as collateral to cover margin requirements for open futures contracts.

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

5-Year U.S. Treasury Note

      17      $ 2,000        Long        4/17      $ (7 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      53.9 % 

U.S. Agency

      15.1  

Cash Equivalents

      31.0  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

U.S. Government Agencies(1)

    $ —       $ 5,943      $ —        $ 5,943  

U.S. Government Obligations(1)

      —         17,030        —          17,030  

Investment Companies

      10,534       —          —          10,534  

Short-term Investments

      —         500        —          500  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 10,534     $ 23,473      $ —        $ 34,007  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Liabilities

           

Futures Contracts

    $ (7 )    $ —        $ —        $ (7 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

(1) Classifications as defined in the Schedule of Investments

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 34,053  
  

 

 

  

Gross tax appreciation of investments

    $ 109  

Gross tax depreciation of investments

      (155 ) 
  

 

 

  

Net tax depreciation of investments

    $ (46 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - U.S. Government Portfolio

    $ 2,000      $ 105,097      $ 96,563      $ 4      $ 10,534  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

Fannie Mae - Federal National Mortgage Association

Freddie Mac - Federal Home Loan Mortgage Corporation

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

BOND INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6%

      

Automobile - 0.2%

      

AmeriCredit Automobile Receivables Trust, Series 2014-3, Class C

      

2.58%, 9/8/20

    $ 100      $ 101  

AmeriCredit Automobile Receivables Trust, Series 2014-3, Class D

      

3.13%, 10/8/20

      50        51  

AmeriCredit Automobile Receivables Trust, Series 2014-4, Class D

      

3.07%, 11/9/20

      100        101  

AmeriCredit Automobile Receivables Trust, Series 2015-2, Class C

      

2.40%, 1/8/21

      100        101  

AmeriCredit Automobile Receivables Trust, Series 2016-4, Class A3

      

1.53%, 7/8/21

      50        50  

AmeriCredit Automobile Receivables Trust, Series 2016-4, Class B

      

1.83%, 12/8/21

      50        50  

AmeriCredit Automobile Receivables Trust, Series 2016-4, Class C

      

2.41%, 7/8/22

      50        50  

AmeriCredit Automobile Receivables Trust, Series 2016-4, Class D

      

2.74%, 12/8/22

      60        59  

BMW Vehicle Owner Trust, Series 2016-A, Class A3

      

1.16%, 11/25/20

      250        248  

Capital Auto Receivables Asset Trust, Series 2013-4, Class D

      

3.22%, 5/20/19

      50        51  

CarMax Auto Owner Trust, Series 2015-3, Class A3

      

1.63%, 5/15/20

      100        100  

CarMax Auto Owner Trust, Series 2016-2, Class A3

      

1.52%, 2/16/21

      100        100  

Carmax Auto Owner Trust, Series 2016-3, Class A3

      

1.39%, 5/17/21

      100        99  

CarMax Auto Owner Trust, Series 2016-4, Class A3

      

1.40%, 8/15/21

      100        99  

Ford Auto Credit Owner Trust, Series 2016-C, Class A3

      

1.22%, 3/15/21

      100        99  

Ford Credit Auto Owner Trust, Series 2016-B, Class A3

      

1.33%, 10/15/20

      150        149  

Ford Credit Auto Owner Trust, Series 2016-B, Class A4

      

1.52%, 8/15/21

      100        99  

Ford Credit Auto Owner Trust, Series 2016-B, Class B

      

1.85%, 9/15/21

      50        50  

GM Financial Automobile Leasing Trust, Series 2015-3, Class A3

      

1.69%, 3/20/19

      200        200  

Honda Auto Receivables Owner Trust, Class 2016-2, Series A3

      

1.39%, 4/15/20

      100        100  

Honda Auto Receivables Owner Trust, Class 2016-2, Series A4

      

1.62%, 8/15/22

      150        150  

Honda Auto Receivables Owner Trust, Series 2015-4, Class A3

      

1.23%, 9/23/19

      200        199  

Honda Auto Receivables Owner Trust, Series 2016-3, Class A3

      

1.16%, 5/18/20

      100        99  

Huntington Auto Trust, Series 2016-1, Class A3

      

1.59%, 11/16/20

      100        100  

Hyundai Auto Receivables Trust, Series 2015-C, Class A3

      

1.46%, 2/18/20

      500        500  

Hyundai Auto Receivables Trust, Series 2016-A, Class A3

      

1.56%, 9/15/20

      330        330  

Hyundai Auto Receivables Trust, Series 2016-A, Class A4

      

1.73%, 5/16/22

      250        249  

Mercedes-Benz Auto Receivables Trust, Series 2015-1, Class A3

      

1.34%, 12/16/19

      100        100  

Nissan Auto Lease Trust, Series 2016-B, Class A3

      

1.50%, 7/15/19

      150        150  

Nissan Auto Receivables Owner Trust, Series 2014-B, Class A4

      

1.66%, 3/15/21

      200        200  

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6% continued

      

Automobile - 0.2% continued

      

Nissan Auto Receivables Owner Trust, Series 2016-B, Class A3

      

1.32%, 1/15/21

    $ 236       $ 235   

Nissan Auto Receivables Owner Trust, Series 2016-B, Class A4

      

1.54%, 10/17/22

      150         148   

Santander Drive Auto Receivables Trust, Series 2014-2, Class D

      

2.76%, 2/18/20

      75         76   

Santander Drive Auto Receivables Trust, Series 2014-3, Class D

      

2.65%, 8/17/20

      50         51   

Santander Drive Auto Receivables Trust, Series 2014-4, Class D

      

3.10%, 11/16/20

      50         51   

Santander Drive Auto Receivables Trust, Series 2015-4, Class C

      

2.97%, 3/15/21

      100         101   

Santander Drive Auto Receivables Trust, Series 2016-3, Class B

      

1.89%, 6/15/21

      100         99   

Santander Drive Auto Receivables Trust, Series 2016-3, Class C

      

2.46%, 3/15/22

      100         99   

Santander Drive Auto Receivables Trust, Series 2016-3, Class D

      

2.80%, 8/15/22

      100         99   

Toyota Auto Receivables Owner Trust, Series 2016-A, Class A3

      

1.25%, 3/16/20

      250         249   

Toyota Auto Receivables Owner Trust, Series 2016-A, Class A4

      

1.47%, 9/15/21

      150         149   

Toyota Auto Receivables Owner Trust, Series 2016-D, Class A3

      

1.23%, 10/15/20

      100         99   

World Omni Auto Receivables Trust, Series 2014-A, Class A4

      

1.53%, 6/15/20

      100         100   

World Omni Auto Receivables Trust, Series 2015-B, Class A3

      

1.49%, 12/15/20

      253         253   

World Omni Auto Receivables Trust, Series 2016-A, Class A4

      

1.95%, 5/16/22

      250         249   
  

 

 

     

 

 

  
        6,092   
     

 

 

  

Commercial Mortgage-Backed Securities - 1.1%

      

Banc of America Commercial Mortgage Trust, Series 2016-UB10, Class A4

      

3.17%, 7/15/49

      300         297   

CFCRE Commercial Mortgage Trust, Series 2016-C3, Class A3

      

3.87%, 1/10/48

      300         312   

CFCRE Commercial Mortgage Trust, Series 2016-C4, Class A4

      

3.28%, 5/10/58

      250         248   

Citigroup Commercial Mortgage Trust, Series 2012-GC8, Class A4

      

3.02%, 9/10/45

      400         409   

Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class A4

      

4.37%, 9/10/46(1)

      350         381   

Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class AS

      

4.65%, 9/10/46(1)

      100         109   

Citigroup Commercial Mortgage Trust, Series 2014-GC25, Class A4

      

3.64%, 10/10/47

      100         104   

Citigroup Commercial Mortgage Trust, Series 2015-GC27, Class A5

      

3.14%, 2/10/48

      200         200   

Citigroup Commercial Mortgage Trust, Series 2015-P1, Class A5

      

3.72%, 9/15/48

      200         209   

Citigroup Commercial Mortgage Trust, Series 2016-C1, Class A4

      

3.21%, 5/10/49

      250         249   

Citigroup Commercial Mortgage Trust, Series 2016-C3, Class A4

      

3.15%, 11/15/49

      150         148   

Citigroup Commercial Mortgage Trust, Series 2016-GC36, Class A5

      

3.62%, 2/10/49

      300         308   

 

FIXED INCOME INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

   DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6%

      

Commercial Mortgage-Backed Securities - 1.1% continued

      

Citigroup Commercial Mortgage Trust, Series 2016-GC37, Class A4

      

3.31%, 4/10/49

    $ 250       $ 250   

Citigroup Commercial Mortgage Trust, Series 2016-P3, Class A4

      

3.33%, 4/15/49

      250         251   

Commercial Mortgage Pass Through Certificates, Series 2012-CR3, Class A3

      

2.82%, 10/15/45

      245         248   

Commercial Mortgage Trust, Series 2012-CR2, Class A4

      

3.15%, 8/15/45

      335         346   

Commercial Mortgage Trust, Series 2012-CR4, Class A3

      

2.85%, 10/15/45

      150         152   

Commercial Mortgage Trust, Series 2012-CR5, Class A4

      

2.77%, 12/10/45

      100         101   

Commercial Mortgage Trust, Series 2012-LC4, Class A4

      

3.29%, 12/10/44

      100         104   

Commercial Mortgage Trust, Series 2013-CR10, Class A4

      

4.21%, 8/10/46(1)

      100         108   

Commercial Mortgage Trust, Series 2013-CR12, Class A4

      

4.05%, 10/10/46

      300         320   

Commercial Mortgage Trust, Series 2013-CR9, Class A4

      

4.23%, 7/10/45(1)

      200         217   

Commercial Mortgage Trust, Series 2013-LC6, Class A4

      

2.94%, 1/10/46

      150         152   

Commercial Mortgage Trust, Series 2014-CR19, Class A5

      

3.80%, 8/10/47

      300         314   

Commercial Mortgage Trust, Series 2014-UBS5, Class A4

      

3.84%, 9/10/47

      300         313   

Commercial Mortgage Trust, Series 2014-UBS6, Class A5

      

3.64%, 12/10/47

      250         258   

Commercial Mortgage Trust, Series 2015-CR24, Class A5

      

3.70%, 8/10/48

      500         519   

Commercial Mortgage Trust, Series 2015-DC1, Class A2

      

2.87%, 2/10/48

      200         204   

Commercial Mortgage Trust, Series 2015-DC1, Class A5

      

3.35%, 2/10/48

      200         202   

Commercial Mortgage Trust, Series 2015-LC19, Class A4

      

3.18%, 2/10/48

      500         504   

Commercial Mortgage Trust, Series 2015-PC1, Class A5

      

3.90%, 7/10/50

      200         209   

CSAIL Commercial Mortgage Trust, Series 2015-C1, Class A4

      

3.51%, 4/15/50

      225         231   

CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4

      

3.72%, 8/15/48

      500         521   

CSAIL Commercial Mortgage Trust, Series 2016-C6, Class A5

      

3.09%, 1/15/49

      100         99   

CSAIL Commercial Mortgage Trust, Series 2016-C7, Class A5

      

3.50%, 11/15/49

      200         201   

GS Mortgage Securities Corp. II, Series 2013-GC10, Class A5

      

2.94%, 2/10/46

      100         101   

GS Mortgage Securities Trust, Series 2011-GC5, Class A4

      

3.71%, 8/10/44

      150         158   

GS Mortgage Securities Trust, Series 2012-GC6, Class A3

      

3.48%, 1/10/45

      200         209   

GS Mortgage Securities Trust, Series 2012-GCJ9, Class A3

      

2.77%, 11/10/45

      175         176   

GS Mortgage Securities Trust, Series 2013-GC12, Class A4

      

3.14%, 6/10/46

      100         102   

GS Mortgage Securities Trust, Series 2013-GC13, Class A5

      

4.03%, 7/10/46(1)

      200         216   

GS Mortgage Securities Trust, Series 2013-GC14, Class A5

      

4.24%, 8/10/46

      150         162   

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6% continued

      

Commercial Mortgage-Backed Securities - 1.1% continued

     

GS Mortgage Securities Trust, Series 2014-GC18, Class A4

      

4.07%, 1/10/47

    $ 500       $ 532   

GS Mortgage Securities Trust, Series 2014-GC20, Class A5

      

4.00%, 4/10/47

      100         106   

GS Mortgage Securities Trust, Series 2014-GC24, Class A5

      

3.93%, 9/10/47

      300         317   

GS Mortgage Securities Trust, Series 2014-GC26, Class A5

      

3.63%, 11/10/47

      250         259   

GS Mortgage Securities Trust, Series 2015-GC28, Class A2

      

2.90%, 2/10/48

      150         153   

GS Mortgage Securities Trust, Series 2016-GS2, Class A4

      

3.05%, 5/10/49

      100         99   

GS Mortgage Securities Trust, Series 2016-GS3, Class A4

      

2.85%, 10/10/49

      200         194   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C5, Class A3

      

4.17%, 8/15/46

      169         181   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-C6, Class A3

      

3.51%, 5/15/45

      200         209   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2012-CBX, Class A4

      

3.48%, 6/15/45

      250         262   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class A5

      

3.14%, 12/15/47

      150         154   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS

      

3.37%, 12/15/47

      50         51   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C13, Class A4

      

3.99%, 1/15/46(1)

      100         107   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C14, Class A2

      

3.02%, 8/15/46

      500         511   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A2

      

3.05%, 4/15/47

      500         512   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class A4

      

4.00%, 4/15/47

      500         531   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A5

      

3.81%, 7/15/47

      500         524   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C22, Class A4

      

3.80%, 9/15/47

      500         522   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C24, Class A2

      

2.94%, 11/15/47

      250         256   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C24, Class A5

      

3.64%, 11/15/47

      200         207   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C25, Class A5

      

3.67%, 11/15/47

      150         156   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2015-C30, Class A5

      

3.82%, 7/15/48

      200         208   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2016-JP3, Class A5

      

2.87%, 8/15/49

      200         194   

JP Morgan Chase Commercial Mortgage Securities Trust, Series 2016-JP3, Class AS

      

3.14%, 8/15/49

      100         98   

 

FIXED INCOME INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6% continued

      

Commercial Mortgage-Backed Securities - 1.1% continued

      

JPMDB Commercial Mortgage Securities Trust, Series 2016-C2, Class A2

      

2.66%, 6/15/49

    $ 100       $ 101   

JPMDB Commercial Mortgage Securities Trust, Series 2016-C2, Class A4

      

3.14%, 6/15/49

      100         100   

JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Class A3

      

3.14%, 12/15/49

      150         149   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class A4

      

4.17%, 8/15/46(1)

      200         215   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C7, Class A4

      

2.92%, 2/15/46

      175         176   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C9, Class A4

      

3.10%, 5/15/46

      200         202   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A2

      

2.92%, 2/15/47

      200         204   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A3

      

3.67%, 2/15/47

      100         105   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A5

      

4.06%, 2/15/47

      200         212   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C17, Class A5

      

3.74%, 8/15/47

      400         417   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A2

      

3.19%, 10/15/47

      500         515   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C20, Class A2

      

2.79%, 2/15/48

      500         508   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C26, Class A5

      

3.53%, 10/15/48

      100         102   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C29, Class A4

      

3.33%, 5/15/49

      250         250   

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C30, Class A5

      

2.86%, 9/15/49

      250         239   

Morgan Stanley Capital I Trust, Series 2012-C4, Class A4

      

3.24%, 3/15/45

      150         155   

UBS Commercial Mortgage Trust, Series 2012-C1, Class A3

      

3.40%, 5/10/45

      395         412   

UBS-Barclays Commercial Mortgage Trust, Series 2012-C3, Class A4

      

3.09%, 8/10/49

      125         128   

UBS-Barclays Commercial Mortgage Trust, Series 2012-C4, Class A5

      

2.85%, 12/10/45

      100         101   

UBS-Barclays Commercial Mortgage Trust, Series 2013-C5, Class A4

      

3.19%, 3/10/46

      100         102   

UBS-Barclays Commercial Mortgage Trust, Series 2013-C6, Class A4

      

3.24%, 4/10/46

      100         102   

UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1, Class A3

      

3.60%, 1/10/45

      150         155   

Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class A3

      

2.92%, 10/15/45

      150         153   

Wells Fargo Commercial Mortgage Trust, Series 2013-LC12, Class A4

      

4.22%, 7/15/46(1)

      100         108   

Wells Fargo Commercial Mortgage Trust, Series 2015-C26, Class A4

      

3.17%, 2/15/48

      100         100   

 

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6% continued

      

Commercial Mortgage-Backed Securities - 1.1% continued

      

Wells Fargo Commercial Mortgage Trust, Series 2015-C30, Class A4

      

3.66%, 9/15/58

    $ 250      $ 259  

Wells Fargo Commercial Mortgage Trust, Series 2015-LC20, Class A5

      

3.18%, 4/15/50

      200        200  

Wells Fargo Commercial Mortgage Trust, Series 2015-NXS1, Class A2

      

2.63%, 5/15/48

      500        507  

Wells Fargo Commercial Mortgage Trust, Series 2015-NXS2, Class A5

      

3.77%, 7/15/58(1)

      300        312  

Wells Fargo Commercial Mortgage Trust, Series 2015-NXS4, Class A4

      

3.72%, 12/15/48

      300        311  

Wells Fargo Commercial Mortgage Trust, Series 2016-C32, Class A4

      

3.56%, 1/15/59

      200        205  

Wells Fargo Commercial Mortgage Trust, Series 2016-C33, Class A4

      

3.43%, 3/15/59

      250        253  

Wells Fargo Commercial Mortgage Trust, Series 2016-C35, Class A4

      

2.93%, 7/15/48

      100        97  

Wells Fargo Commercial Mortgage Trust, Series 2016-C36, Class A4

      

3.07%, 11/15/59

      250        245  

Wells Fargo Commercial Mortgage Trust, Series 2016-LC24, Class A4

      

2.94%, 10/15/49

      200        194  

Wells Fargo Commercial Mortgage Trust, Series 2016-NXS6, Class A4

      

2.92%, 11/15/49

      150        145  

WFRBS Commercial Mortgage Trust, Series 2011-C5, Class A4

      

3.67%, 11/15/44

      150        158  

WFRBS Commercial Mortgage Trust, Series 2012-C6, Class A4

      

3.44%, 4/15/45

      175        183  

WFRBS Commercial Mortgage Trust, Series 2012-C7, Class A2

      

3.43%, 6/15/45

      250        261  

WFRBS Commercial Mortgage Trust, Series 2013-C12, Class A4

      

3.20%, 3/15/48

      600        614  

WFRBS Commercial Mortgage Trust, Series 2013-C12, Class AS

      

3.56%, 3/15/48

      50        51  

WFRBS Commercial Mortgage Trust, Series 2013-C13, Class A4

      

3.00%, 5/15/45

      500        505  

WFRBS Commercial Mortgage Trust, Series 2013-C14, Class A5

      

3.34%, 6/15/46

      150        154  

WFRBS Commercial Mortgage Trust, Series 2013-C16, Class A2

      

3.22%, 9/15/46

      100        102  

WFRBS Commercial Mortgage Trust, Series 2013-C16, Class A5

      

4.42%, 9/15/46

      250        272  

WFRBS Commercial Mortgage Trust, Series 2014-C22, Class A5

      

3.75%, 9/15/57

      500        521  

WFRBS Commercial Mortgage Trust, Series 2014-C25, Class A5

      

3.63%, 11/15/47

      250        258  

WFRBS Commercial Mortgage Trust, Series 2014-LC14,Class A5

      

4.05%, 3/15/47

      100        106  
  

 

 

     

 

 

  
        27,189  
     

 

 

  

Credit Card - 0.3%

      

BA Credit Card Trust, Series 2015-A2, Class A

      

1.36%, 9/15/20

      200        200  

Barclays Dryrock Issuance Trust, Series 2014-3, Class A

      

2.41%, 7/15/22

      150        152  

Barclays Dryrock Issuance Trust, Series 2015-2, Class A

      

1.56%, 3/15/21

      100        100  

Capital One Multi-Asset Execution Trust, Series 2015-A5, Class A5

      

1.60%, 5/17/21

      180        181  

Capital One Multi-Asset Execution Trust, Series 2016-A3, Class A3

      

1.34%, 4/15/22

      255        252  

Capital One Multi-Asset Execution Trust, Series 2016-A4, Class A4

      

1.33%, 6/15/22

      200        197  

 

FIXED INCOME INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6% continued

      

Credit Card - 0.3% continued

      

Capital One Multi-Asset Execution Trust, Series 2016-A5, Class A5

      

1.66%, 6/17/24

    $ 100      $ 97  

Chase Issuance Trust, Series 2012-A4, Class A4

      

1.58%, 8/16/21

      250        248  

Chase Issuance Trust, Series 2012-A7, Class A7

      

2.16%, 9/16/24

      200        195  

Chase Issuance Trust, Series 2014-A2, Class A2

      

2.77%, 3/15/23

      150        153  

Chase Issuance Trust, Series 2015-A4, Class A4

      

1.84%, 4/15/22

      300        299  

Chase Issuance Trust, Series 2015-A5, Class A5

      

1.36%, 4/15/20

      200        200  

Chase Issuance Trust, Series 2016-A4, Class A4

      

1.49%, 7/15/22

      150        147  

Chase Issuance Trust, Series 2016-A5, Class A5

      

1.27%, 7/15/21

      250        247  

Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3

      

6.15%, 6/15/39

      150        197  

Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1

      

2.88%, 1/23/23

      300        308  

Citibank Credit Card Issuance Trust, Series 2014-A5, Class A5

      

2.68%, 6/7/23

      150        153  

Citibank Credit Card Issuance Trust, Series 2014-A6, Class A6

      

2.15%, 7/15/21

      350        353  

Citibank Credit Card Issuance Trust, Series 2014-A8, Class A8

      

1.73%, 4/9/20

      200        201  

Discover Card Execution Note Trust, Series 2012-A6, Class A6

      

1.67%, 1/18/22

      350        349  

Discover Card Execution Note Trust, Series 2014-A4, Class A4

      

2.12%, 12/15/21

      400        403  

Discover Card Execution Note Trust, Series 2015-A2, Class A

      

1.90%, 10/17/22

      100        100  

Discover Card Execution Note Trust, Series 2015-A3, Class A

      

1.45%, 3/15/21

      150        150  

Discover Card Execution Note Trust, Series 2015-A4, Class A4

      

2.19%, 4/17/23

      200        200  

Discover Card Execution Note Trust, Series 2016-A1, Class A1

      

1.64%, 7/15/21

      250        250  

Discover Card Execution Note Trust, Series 2016-A4, Class A4

      

1.39%, 3/15/22

      150        148  

Synchrony Credit Card Master Note Trust, Series 2012-7, Class A

      

1.76%, 9/15/22

      100        99  

Synchrony Credit Card Master Note Trust, Series 2015-1, Class A

      

2.37%, 3/15/23

      150        151  

Synchrony Credit Card Master Note Trust, Series 2015-2, Class A

      

1.60%, 4/15/21

      200        200  

Synchrony Credit Card Master Note Trust, Series 2016-1, Class A

      

2.04%, 3/15/22

      200        201  

Synchrony Credit Card Master Note Trust, Series 2016-2, Class A

      

2.21%, 5/15/24

      100        99  

World Financial Network Credit Card Master Trust, Series 2013-A, Class A

      

1.61%, 12/15/21

      200        200  

World Financial Network Credit Card Master Trust, Series 2015-B, Class A

      

2.55%, 6/17/24

      100        101  
  

 

 

     

 

 

  
        6,531  
     

 

 

  

Other - 0.0%

      

AEP Texas Central Transition Funding lll LLC, Series 2012-1, Class A3

      

2.85%, 3/1/26

      100        101  

CenterPoint Energy Restoration Bond Co. LLC, Series 2009-1, Class A3

      

4.24%, 8/15/23

      100        106  

 

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

ASSET-BACKED SECURITIES - 1.6% continued

      

Other - continued

      

CenterPoint Energy Transition Bond Co. IV LLC, Series 2012-1, Class A3

      

3.03%, 10/15/25

    $ 150      $ 152  

Entergy Texas Restoration Funding LLC, Series 2009-A, Class A3

      

4.38%, 11/1/23

      100        107  
  

 

 

     

 

 

  
        466  
     

 

 

  

Total Asset-Backed Securities

(Cost $40,205)

         40,278  
     

 

 

  

CORPORATE BONDS - 24.1%

      

Advertising & Marketing - 0.0%

      

Interpublic Group of (The) Cos., Inc.,

      

4.20%, 4/15/24

      150        154  

Omnicom Group, Inc.,

      

6.25%, 7/15/19

      300        331  

3.63%, 5/1/22

      496        510  
  

 

 

     

 

 

  
        995  
     

 

 

  

Aerospace & Defense - 0.5%

      

Boeing (The) Co.,

      

0.95%, 5/15/18

      200        199  

7.95%, 8/15/24

      250        330  

2.85%, 10/30/24

      110        110  

6.13%, 2/15/33

      135        173  

3.30%, 3/1/35

      55        51  

6.63%, 2/15/38

      100        135  

5.88%, 2/15/40

      75        95  

3.50%, 3/1/45

      500        464  

General Dynamics Corp.,

      

3.88%, 7/15/21

      250        266  

2.25%, 11/15/22

      500        494  

2.13%, 8/15/26

      350        323  

3.60%, 11/15/42

      155        147  

Harris Corp.,

      

4.40%, 12/15/20

      950        1,002  

L-3 Communications Corp.,

      

5.20%, 10/15/19

      250        269  

4.95%, 2/15/21

      40        43  

Lockheed Martin Corp.,

      

4.25%, 11/15/19

      500        533  

2.50%, 11/23/20

      355        358  

3.55%, 1/15/26

      1,100        1,124  

3.60%, 3/1/35

      135        128  

4.07%, 12/15/42

      868        857  

Northrop Grumman Corp.,

      

1.75%, 6/1/18

      125        125  

5.05%, 8/1/19

      170        182  

5.05%, 11/15/40

      250        279  

4.75%, 6/1/43

      250        272  

Precision Castparts Corp.,

      

1.25%, 1/15/18

      210        210  

2.50%, 1/15/23

      500        492  

3.90%, 1/15/43

      100        99  

4.38%, 6/15/45

      350        368  

Raytheon Co.,

      

4.40%, 2/15/20

      510        544  

2.50%, 12/15/22

      1,150        1,144  

4.70%, 12/15/41

      100        110  

United Technologies Corp.,

      

7.50%, 9/15/29

      100        139  

6.05%, 6/1/36

      600        752  

6.13%, 7/15/38

      175        223  

5.70%, 4/15/40

      500        611  

4.50%, 6/1/42

      700        749  

3.75%, 11/1/46

      500        476  
  

 

 

     

 

 

  
        13,876  
     

 

 

  

Airlines - 0.0%

      

Continental Airlines Pass Through Trust, Series 2009-2, Class A,

      

7.25%, 11/10/19

      252        281  

Southwest Airlines Co. Pass Through Trust, Series 2007-1,

      

6.15%, 8/1/22

      332        369  
  

 

 

     

 

 

  
        650  
     

 

 

  

Apparel & Textile Products - 0.0%

      

NIKE, Inc.,

      

2.38%, 11/1/26

      250        236  

3.63%, 5/1/43

      75        71  

3.38%, 11/1/46

      500        451  

VF Corp.,

      

3.50%, 9/1/21

      150        156  

6.00%, 10/15/33

      100        119  

6.45%, 11/1/37

      30        38  
  

 

 

     

 

 

  
        1,071  
     

 

 

  

 

FIXED INCOME INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Auto Parts Manufacturing - 0.0%

      

BorgWarner, Inc.,

      

4.38%, 3/15/45

    $ 170      $ 164  

Delphi Corp.,

      

4.15%, 3/15/24

      300        309  
  

 

 

     

 

 

  
        473  
     

 

 

  

Automobiles Manufacturing - 0.8%

      

American Honda Finance Corp.,

      

1.60%, 7/13/18

      180        180  

2.13%, 10/10/18

      75        76  

2.25%, 8/15/19

      250        252  

2.15%, 3/13/20

      800        798  

1.65%, 7/12/21

      400        385  

1.70%, 9/9/21

      500        483  

Daimler Finance North America LLC,

      

8.50%, 1/18/31

      175        264  

Ford Motor Co.,

      

7.45%, 7/16/31

      350        439  

4.75%, 1/15/43

      500        475  

Ford Motor Credit Co. LLC,

      

2.88%, 10/1/18

      200        202  

2.02%, 5/3/19

      600        595  

1.90%, 8/12/19

      200        197  

2.60%, 11/4/19

      200        200  

2.46%, 3/27/20

      260        257  

3.16%, 8/4/20

      860        866  

3.20%, 1/15/21

      1,200        1,202  

3.34%, 3/18/21

      500        504  

5.88%, 8/2/21

      500        552  

3.22%, 1/9/22

      200        198  

4.25%, 9/20/22

      1,300        1,339  

3.10%, 5/4/23

      1,000        966  

General Motors Co.,

      

3.50%, 10/2/18

      3,000        3,060  

6.25%, 10/2/43

      550        608  

6.75%, 4/1/46

      145        170  

General Motors Financial Co., Inc.,

      

6.75%, 6/1/18

      500        531  

3.20%, 7/13/20

      395        396  

3.20%, 7/6/21

      485        481  

4.38%, 9/25/21

      400        415  

3.45%, 4/10/22

      500        494  

3.70%, 5/9/23

      600        590  

Toyota Motor Credit Corp.,

      

1.38%, 1/10/18

      500        499  

1.55%, 7/13/18

      90        90  

2.00%, 10/24/18

      400        402  

2.10%, 1/17/19

      100        101  

1.70%, 2/19/19

      660        658  

2.13%, 7/18/19

      100        100  

4.50%, 6/17/20

      300        322  

1.90%, 4/8/21

      300        294  

2.25%, 10/18/23

      545        525  
  

 

 

     

 

 

  
        20,166  
     

 

 

  

Banks - 0.9%

      

Bank of America N.A.,

      

6.00%, 10/15/36

      250        302  

Bank One Corp.,

      

7.75%, 7/15/25

      54        68  

BB&T Corp.,

      

1.45%, 1/12/18

      80        80  

2.05%, 6/19/18

      100        100  

2.25%, 2/1/19

      100        101  

2.45%, 1/15/20

      450        454  

Branch Banking & Trust Co.,

      

2.30%, 10/15/18

      500        505  

2.85%, 4/1/21

      650        660  

3.63%, 9/16/25

      250        254  

3.80%, 10/30/26

      250        257  

Capital One N.A.,

      

1.50%, 3/22/18

      250        249  

2.40%, 9/5/19

      250        251  

Citizens Bank N.A.,

      

2.50%, 3/14/19

      250        252  

2.55%, 5/13/21

      250        248  

Comerica Bank,

      

2.50%, 6/2/20

      500        500  

Discover Bank,

      

2.00%, 2/21/18

      500        500  

2.60%, 11/13/18

      250        252  

3.20%, 8/9/21

      250        251  

Fifth Third Bancorp,

      

2.88%, 7/27/20

      500        505  

3.50%, 3/15/22

      200        205  

4.30%, 1/16/24

      220        226  

8.25%, 3/1/38

      275        382  

 

NORTHERN FUNDS QUARTERLY REPORT     9    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Banks - 0.9% continued

      

Fifth Third Bank,

      

1.63%, 9/27/19

    $ 350      $ 346  

2.25%, 6/14/21

      200        198  

2.88%, 10/1/21

      250        253  

HSBC Bank USA N.A.,

      

4.88%, 8/24/20

      300        318  

7.00%, 1/15/39

      350        462  

HSBC USA, Inc.,

      

1.63%, 1/16/18

      180        180  

2.63%, 9/24/18

      80        81  

2.38%, 11/13/19

      250        251  

2.35%, 3/5/20

      700        695  

2.75%, 8/7/20

      750        751  

3.50%, 6/23/24

      1,000        1,004  

Huntington Bancshares, Inc.,

      

3.15%, 3/14/21

      500        507  

KeyBank N.A.,

      

2.50%, 12/15/19

      250        253  

2.25%, 3/16/20

      1,000        996  

3.30%, 6/1/25

      250        250  

KeyCorp,

      

2.30%, 12/13/18

      250        251  

5.10%, 3/24/21

      25        27  

Manufacturers & Traders Trust Co.,

      

1.45%, 3/7/18

      500        499  

MUFG Americas Holdings Corp.,

      

2.25%, 2/10/20

      170        168  

3.50%, 6/18/22

      150        153  

MUFG Union Bank N.A.,

      

2.63%, 9/26/18

      250        253  

PNC Bank N.A.,

      

1.85%, 7/20/18

      250        250  

1.45%, 7/29/19

      250        247  

2.30%, 6/1/20

      500        500  

2.70%, 11/1/22

      750        738  

2.95%, 1/30/23

      250        246  

3.80%, 7/25/23

      250        258  

PNC Financial Services Group (The), Inc.,

      

6.70%, 6/10/19

      600        666  

4.38%, 8/11/20

      500        532  

3.30%, 3/8/22

      150        154  

2.85%, 11/9/22(2)

      100        99  

SunTrust Bank,

      

7.25%, 3/15/18

      125        133  

2.75%, 5/1/23

      350        341  

SunTrust Banks, Inc.,

      

2.35%, 11/1/18

      25        25  

2.50%, 5/1/19

      200        202  

US Bancorp,

      

1.95%, 11/15/18

      200        201  

4.13%, 5/24/21

      200        214  

3.00%, 3/15/22

      115        117  

2.95%, 7/15/22

      1,200        1,207  

2.38%, 7/22/26

      1,000        926  

US Bank N.A.,

      

1.35%, 1/26/18

      500        499  

Wachovia Corp.,

      

5.75%, 2/1/18

      600        626  

Wells Fargo Bank N.A.,

      

5.85%, 2/1/37

      250        294  

6.60%, 1/15/38

      300        382  

Wells Fargo Capital X,

      

5.95%, 12/15/36

      100        104  
  

 

 

     

 

 

  
        23,459  
     

 

 

  

Biotechnology - 0.5%

      

Amgen, Inc.,

      

5.70%, 2/1/19

      500        537  

2.20%, 5/22/19

      750        756  

4.50%, 3/15/20

      425        453  

4.10%, 6/15/21

      165        174  

1.85%, 8/19/21

      150        144  

3.88%, 11/15/21

      250        262  

6.38%, 6/1/37

      100        120  

6.40%, 2/1/39

      100        121  

5.75%, 3/15/40

      935        1,052  

5.15%, 11/15/41

      250        264  

5.65%, 6/15/42

      100        110  

5.38%, 5/15/43

      200        218  

4.40%, 5/1/45

      250        240  

Biogen, Inc.,

      

2.90%, 9/15/20

      200        203  

4.05%, 9/15/25

      95        98  

5.20%, 9/15/45

      100        107  

Celgene Corp.,

      

2.13%, 8/15/18

      85        85  

 

FIXED INCOME INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Biotechnology - 0.5% continued

      

2.30%, 8/15/18

    $ 35      $ 35  

2.25%, 5/15/19

      165        165  

3.63%, 5/15/24

      1,000        1,005  

3.88%, 8/15/25

      265        269  

5.25%, 8/15/43

      85        90  

5.00%, 8/15/45

      250        260  

Gilead Sciences, Inc.,

      

2.05%, 4/1/19

      100        100  

2.35%, 2/1/20

      85        85  

2.55%, 9/1/20

      240        242  

4.50%, 4/1/21

      200        215  

3.25%, 9/1/22

      145        148  

3.50%, 2/1/25

      500        506  

3.65%, 3/1/26

      500        507  

4.60%, 9/1/35

      1,375        1,426  

5.65%, 12/1/41

      330        381  

4.50%, 2/1/45

      250        250  

4.75%, 3/1/46

      1,015        1,050  
  

 

 

     

 

 

  
        11,678  
     

 

 

  

Cable & Satellite - 0.4%

      

Charter Communications Operating LLC/Charter Communications Operating Capital,

      

3.58%, 7/23/20

      410        418  

4.46%, 7/23/22

      1,600        1,672  

4.91%, 7/23/25

      1,285        1,354  

Comcast Corp.,

      

3.38%, 2/15/25

      1,320        1,334  

3.38%, 8/15/25

      1,000        1,006  

7.05%, 3/15/33

      140        188  

5.65%, 6/15/35

      5        6  

6.45%, 3/15/37

      590        762  

6.95%, 8/15/37

      450        614  

6.40%, 5/15/38

      635        813  

6.40%, 3/1/40

      145        189  

4.75%, 3/1/44

      500        536  

Time Warner Cable LLC,

      

8.75%, 2/14/19

      300        338  

6.55%, 5/1/37

      145        164  

7.30%, 7/1/38

      705        867  

6.75%, 6/15/39

      130        151  

Time Warner Entertainment Co. L.P.,

      

8.38%, 7/15/33

      260        341  
  

 

 

     

 

 

  
        10,753  
     

 

 

  

Chemicals - 0.4%

      

Air Products & Chemicals, Inc.,

      

3.00%, 11/3/21

      300        309  

2.75%, 2/3/23

      250        250  

Airgas, Inc.,

      

1.65%, 2/15/18

      250        250  

2.90%, 11/15/22

      150        151  

3.65%, 7/15/24

      70        73  

Cabot Corp.,

      

2.55%, 1/15/18

      300        301  

Dow Chemical (The) Co.,

      

4.25%, 11/15/20

      155        164  

4.13%, 11/15/21

      200        211  

3.00%, 11/15/22

      100        100  

7.38%, 11/1/29

      100        131  

4.25%, 10/1/34

      150        148  

9.40%, 5/15/39

      300        465  

5.25%, 11/15/41

      400        432  

4.38%, 11/15/42

      500        485  

E.I. du Pont de Nemours & Co.,

      

4.63%, 1/15/20

      185        198  

2.80%, 2/15/23

      630        619  

6.50%, 1/15/28

      100        122  

5.60%, 12/15/36

      250        280  

4.15%, 2/15/43

      250        235  

Eastman Chemical Co.,

      

2.70%, 1/15/20

      120        121  

4.80%, 9/1/42

      200        199  

4.65%, 10/15/44

      100        99  

Lubrizol Corp.,

      

6.50%, 10/1/34

      50        63  

Monsanto Co.,

      

5.13%, 4/15/18

      240        250  

2.20%, 7/15/22

      65        62  

5.50%, 8/15/25

      50        56  

4.20%, 7/15/34

      55        53  

5.88%, 4/15/38

      256        283  

4.40%, 7/15/44

      250        242  

 

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Chemicals - 0.4% continued

      

Mosaic (The) Co.,

      

3.75%, 11/15/21

    $ 1,000      $ 1,027  

5.45%, 11/15/33

      250        248  

4.88%, 11/15/41

      100        87  

PPG Industries, Inc.,

      

2.30%, 11/15/19

      250        251  

Praxair, Inc.,

      

1.25%, 11/7/18

      150        149  

4.50%, 8/15/19

      400        426  

4.05%, 3/15/21

      100        106  

2.45%, 2/15/22

      250        248  

2.20%, 8/15/22

      150        147  

2.70%, 2/21/23

      250        247  

3.55%, 11/7/42

      125        116  

Sherwin-Williams (The) Co.,

      

4.55%, 8/1/45

      30        30  

Westlake Chemical Corp.,

      

3.60%, 7/15/22

      65        65  
  

 

 

     

 

 

  
        9,499  
     

 

 

  

Commercial Finance - 0.2%

      

Air Lease Corp.,

      

3.38%, 1/15/19

      65        66  

3.75%, 2/1/22

      125        129  

3.00%, 9/15/23

      245        234  

4.25%, 9/15/24

      350        355  

GATX Corp.,

      

2.38%, 7/30/18

      35        35  

5.20%, 3/15/44

      35        35  

International Lease Finance Corp.,

      

8.25%, 12/15/20

      1,000        1,165  

Private Export Funding Corp.,

      

1.45%, 8/15/19

      2,000        1,993  
  

 

 

     

 

 

  
        4,012  
     

 

 

  

Communications Equipment - 0.5%

      

Apple, Inc.,

      

2.10%, 5/6/19

      470        474  

2.85%, 2/23/23

      340        342  

2.40%, 5/3/23

      1,940        1,889  

3.45%, 5/6/24

      3,555        3,662  

2.50%, 2/9/25

      425        408  

3.25%, 2/23/26

      1,030        1,031  

2.45%, 8/4/26

      500        469  

3.85%, 5/4/43

      230        220  

4.45%, 5/6/44

      250        259  

3.45%, 2/9/45

      250        221  

Cisco Systems, Inc.,

      

1.65%, 6/15/18

      60        60  

4.95%, 2/15/19

      120        128  

2.13%, 3/1/19

      875        887  

2.45%, 6/15/20

      160        162  

2.20%, 2/28/21

      1,000        998  

2.90%, 3/4/21

      50        51  

1.85%, 9/20/21

      465        454  

2.20%, 9/20/23

      750        722  

5.90%, 2/15/39

      690        876  

Juniper Networks, Inc.,

      

4.60%, 3/15/21

      100        107  

5.95%, 3/15/41

      100        102  
  

 

 

     

 

 

  
        13,522  
     

 

 

  

Construction Materials Manufacturing - 0.0%

      

Martin Marietta Materials, Inc.,

      

6.60%, 4/15/18

      100        106  

Owens Corning,

      

4.20%, 12/15/22

      190        197  

3.40%, 8/15/26

      400        380  
  

 

 

     

 

 

  
        683  
     

 

 

  

Consumer Finance - 0.4%

      

American Express Co.,

      

7.00%, 3/19/18

      300        319  

2.65%, 12/2/22

      632        622  

3.63%, 12/5/24

      125        125  

American Express Credit Corp.,

      

1.80%, 7/31/18

      500        501  

1.70%, 10/30/19

      325        322  

2.38%, 5/26/20

      300        300  

2.25%, 5/5/21

      1,180        1,166  

Capital One Bank USA N.A.,

      

2.25%, 2/13/19

      300        301  

2.30%, 6/5/19

      300        301  

Capital One Financial Corp.,

      

2.45%, 4/24/19

      500        503  

4.75%, 7/15/21

      131        142  

3.75%, 4/24/24

      1,000        1,013  

Fidelity National Information Services, Inc.,

      

2.00%, 4/15/18

      40        40  

5.00%, 3/15/22

      200        206  

 

FIXED INCOME INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Consumer Finance - 0.4% continued

      

Fiserv, Inc.,

      

4.63%, 10/1/20

    $ 250      $ 267  

3.50%, 10/1/22

      50        51  

HSBC Finance Corp.,

      

6.68%, 1/15/21

      500        562  

Mastercard, Inc.,

      

2.00%, 11/21/21

      130        129  

Synchrony Financial,

      

2.70%, 2/3/20

      250        249  

3.70%, 8/4/26

      1,000        961  

Total System Services, Inc.,

      

2.38%, 6/1/18

      200        201  

Visa, Inc.,

      

2.20%, 12/14/20

      500        502  

2.80%, 12/14/22

      1,250        1,257  

3.15%, 12/14/25

      1,250        1,255  

Western Union (The) Co.,

      

6.20%, 6/21/40

      120        122  
  

 

 

     

 

 

  
        11,417  
     

 

 

  

Consumer Products - 0.2%

      

Clorox (The) Co.,

      

3.05%, 9/15/22

      250        254  

Colgate-Palmolive Co.,

      

0.90%, 5/1/18

      250        249  

2.45%, 11/15/21

      1,000        1,004  

2.30%, 5/3/22

      165        163  

1.95%, 2/1/23

      250        240  

2.10%, 5/1/23

      250        242  

Estee Lauder (The) Cos., Inc.,

      

2.35%, 8/15/22

      50        49  

6.00%, 5/15/37

      100        120  

4.38%, 6/15/45

      150        155  

Kimberly-Clark Corp.,

      

6.25%, 7/15/18

      150        161  

2.15%, 8/15/20

      150        150  

2.40%, 3/1/22

      50        50  

6.63%, 8/1/37

      350        480  

3.70%, 6/1/43

      100        95  

3.20%, 7/30/46

      125        109  

Procter & Gamble (The) Co.,

      

1.90%, 11/1/19

      100        101  

1.85%, 2/2/21

      190        188  

2.30%, 2/6/22

      215        215  

3.10%, 8/15/23

      250        257  

5.55%, 3/5/37

      5        6  

Unilever Capital Corp.,

      

2.10%, 7/30/20

      670        668  

4.25%, 2/10/21

      250        269  

5.90%, 11/15/32

      125        162  
  

 

 

     

 

 

  
        5,387  
     

 

 

  

Consumer Services - 0.0%

      

Ecolab, Inc.,

      

2.25%, 1/12/20

      100        100  

4.35%, 12/8/21

      250        270  

3.25%, 1/14/23

      65        66  

2.70%, 11/1/26

      70        67  

5.50%, 12/8/41

      455        535  
  

 

 

     

 

 

  
        1,038  
     

 

 

  

Containers & Packaging - 0.1%

      

3M Co.,

      

1.38%, 8/7/18

      350        350  

5.70%, 3/15/37

      350        440  

International Paper Co.,

      

4.75%, 2/15/22

      104        112  

3.65%, 6/15/24

      250        253  

3.00%, 2/15/27

      1,000        943  

7.30%, 11/15/39

      45        57  

6.00%, 11/15/41

      250        281  

5.15%, 5/15/46

      250        261  

Packaging Corp. of America,

      

4.50%, 11/1/23

      100        106  

3.65%, 9/15/24

      250        251  

Sonoco Products Co.,

      

4.38%, 11/1/21

      25        26  

5.75%, 11/1/40

      150        168  

WestRock MWV LLC,

      

7.95%, 2/15/31

      100        132  

WestRock RKT Co.,

      

3.50%, 3/1/20

      150        154  
  

 

 

     

 

 

  
        3,534  
     

 

 

  

Department Stores - 0.1%

      

Kohl’s Corp.,

      

4.00%, 11/1/21

      85        89  

3.25%, 2/1/23

      100        99  

4.75%, 12/15/23

      250        260  

 

NORTHERN FUNDS QUARTERLY REPORT     13    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Department Stores - 0.1% continued

      

Macy’s Retail Holdings, Inc.,

      

3.88%, 1/15/22

    $ 30      $ 31  

2.88%, 2/15/23

      150        143  

6.90%, 4/1/29

      305        345  

6.90%, 1/15/32

      250        278  

4.50%, 12/15/34

      100        89  

5.13%, 1/15/42

      40        37  

Nordstrom, Inc.,

      

6.25%, 1/15/18

      325        340  

4.00%, 10/15/21

      150        157  

7.00%, 1/15/38

      50        59  
  

 

 

     

 

 

  
        1,927  
     

 

 

  

Design, Manufacturing & Distribution - 0.0%

      

Arrow Electronics, Inc.,

      

3.00%, 3/1/18

      85        86  
  

 

 

     

 

 

  

Diversified Banks - 1.8%

      

Bank of America Corp.,

      

2.00%, 1/11/18

      1,155        1,158  

6.88%, 4/25/18

      505        537  

5.65%, 5/1/18

      450        471  

6.88%, 11/15/18

      275        299  

2.60%, 1/15/19

      300        303  

2.65%, 4/1/19

      850        859  

7.63%, 6/1/19

      1,040        1,169  

2.25%, 4/21/20

      1,000        994  

5.00%, 5/13/21

      400        436  

5.70%, 1/24/22

      1,000        1,123  

4.10%, 7/24/23

      100        104  

4.00%, 4/1/24

      165        170  

4.20%, 8/26/24

      1,500        1,528  

4.00%, 1/22/25

      500        501  

3.95%, 4/21/25

      1,000        995  

4.45%, 3/3/26

      500        515  

3.50%, 4/19/26

      300        296  

4.25%, 10/22/26

      100        101  

6.11%, 1/29/37

      150        176  

7.75%, 5/14/38

      275        379  

5.88%, 2/7/42

      250        302  

5.00%, 1/21/44

      600        657  

4.88%, 4/1/44

      595        646  

Citigroup, Inc.,

      

1.70%, 4/27/18

      210        210  

1.75%, 5/1/18

      150        150  

2.55%, 4/8/19

      65        66  

2.50%, 7/29/19

      250        252  

2.40%, 2/18/20

      710        709  

2.70%, 3/30/21

      575        574  

4.50%, 1/14/22

      735        784  

4.05%, 7/30/22

      90        93  

3.38%, 3/1/23

      150        151  

3.50%, 5/15/23

      190        189  

3.88%, 10/25/23

      200        206  

4.00%, 8/5/24

      150        151  

3.88%, 3/26/25

      750        745  

3.70%, 1/12/26

      500        497  

4.60%, 3/9/26

      205        212  

3.20%, 10/21/26

      500        478  

4.30%, 11/20/26

      325        328  

6.63%, 6/15/32

      100        121  

6.00%, 10/31/33

      350        395  

6.13%, 8/25/36

      125        145  

8.13%, 7/15/39

      1,180        1,753  

5.88%, 1/30/42

      30        36  

5.30%, 5/6/44

      300        323  

4.75%, 5/18/46

      1,530        1,532  

JPMorgan Chase & Co.,

      

6.00%, 1/15/18

      1,610        1,679  

1.80%, 1/25/18

      1,000        1,001  

1.63%, 5/15/18

      200        200  

2.35%, 1/28/19

      1,750        1,764  

6.30%, 4/23/19

      500        546  

2.25%, 1/23/20

      1,000        998  

4.95%, 3/25/20

      375        404  

2.75%, 6/23/20

      200        202  

4.40%, 7/22/20

      300        319  

4.63%, 5/10/21

      250        269  

4.35%, 8/15/21

      615        658  

3.25%, 9/23/22

      210        212  

3.63%, 5/13/24

      250        254  

3.88%, 9/10/24

      1,250        1,265  

3.90%, 7/15/25

      255        262  

3.20%, 6/15/26

      500        489  

6.40%, 5/15/38

      1,054        1,366  

5.60%, 7/15/41

      405        484  

5.40%, 1/6/42

      100        117  

 

FIXED INCOME INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Diversified Banks - 1.8% continued

      

5.63%, 8/16/43

    $ 150      $ 172  

4.85%, 2/1/44

      500        556  

4.95%, 6/1/45

      1,000        1,066  

Wells Fargo & Co.,

      

2.15%, 1/15/19

      135        136  

2.60%, 7/22/20

      675        679  

3.00%, 1/22/21

      100        102  

4.60%, 4/1/21

      500        537  

2.10%, 7/26/21

      250        243  

3.50%, 3/8/22

      1,000        1,029  

3.45%, 2/13/23

      125        125  

4.13%, 8/15/23

      200        207  

3.30%, 9/9/24

      1,500        1,485  

3.00%, 2/19/25

      250        240  

3.00%, 4/22/26

      1,950        1,861  

4.30%, 7/22/27

      110        113  

5.38%, 2/7/35

      425        483  

4.65%, 11/4/44

      375        369  

3.90%, 5/1/45

      950        901  

4.40%, 6/14/46

      850        814  
  

 

 

     

 

 

  
        47,426  
     

 

 

  

Educational Services - 0.0%

      

Board of Trustees of The Leland Stanford Junior University (The),

      

4.75%, 5/1/19

      200        214  

California Institute of Technology,

      

4.70%, 11/1/11(3)

      110        104  

George Washington University (The),

      

3.49%, 9/15/22

      50        51  

Johns Hopkins University,

      

4.08%, 7/1/53

      100        100  

Massachusetts Institute of Technology,

      

5.60%, 7/1/11(3)

      190        230  

4.68%, 7/1/14(4)

      15        15  

Northwestern University,

      

4.64%, 12/1/44

      50        57  

Princeton University,

      

4.95%, 3/1/19

      100        107  

Trustees of Dartmouth College,

      

4.75%, 6/1/19

      102        109  

University of Pennsylvania,

      

4.67%, 9/1/12(5)

      100        99  
  

 

 

     

 

 

  
        1,086  
     

 

 

  

Electrical Equipment Manufacturing - 0.5%

      

ABB Finance USA, Inc.,

      

4.38%, 5/8/42

      250        262  

Amphenol Corp.,

      

3.13%, 9/15/21

      100        102  

Emerson Electric Co.,

      

5.25%, 10/15/18

      325        346  

5.00%, 4/15/19

      1,000        1,069  

2.63%, 12/1/21

      225        227  

2.63%, 2/15/23

      85        84  

6.00%, 8/15/32

      25        30  

6.13%, 4/15/39

      50        64  

General Electric Co.,

      

1.63%, 4/2/18

      250        251  

5.63%, 5/1/18

      1,575        1,662  

2.10%, 12/11/19

      125        126  

4.38%, 9/16/20

      115        124  

4.63%, 1/7/21

      400        434  

3.15%, 9/7/22

      750        766  

2.70%, 10/9/22

      580        580  

3.10%, 1/9/23

      500        507  

3.45%, 5/15/24

      1,850        1,902  

6.75%, 3/15/32

      150        200  

6.15%, 8/7/37

      150        194  

5.88%, 1/14/38

      800        1,007  

6.88%, 1/10/39

      300        423  

4.50%, 3/11/44

      250        268  

Honeywell International, Inc.,

      

4.25%, 3/1/21

      794        859  

3.35%, 12/1/23

      290        298  

2.50%, 11/1/26

      750        710  

5.70%, 3/15/37

      125        154  

Rockwell Automation, Inc.,

      

6.25%, 12/1/37

      150        185  

Roper Technologies, Inc.,

      

2.05%, 10/1/18

      120        120  

3.00%, 12/15/20

      125        127  
  

 

 

     

 

 

  
        13,081  
     

 

 

  

Entertainment Content - 0.3%

      

CBS Corp.,

      

4.63%, 5/15/18

      25        26  

2.30%, 8/15/19

      200        201  

5.75%, 4/15/20

      585        646  

3.70%, 8/15/24

      825        831  

 

NORTHERN FUNDS QUARTERLY REPORT    15    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Entertainment Content - 0.3% continued

      

5.50%, 5/15/33

    $ 235      $ 244  

Scripps Networks Interactive, Inc.,

      

2.75%, 11/15/19

      200        203  

Time Warner, Inc.,

      

2.10%, 6/1/19

      75        75  

4.88%, 3/15/20

      30        32  

4.75%, 3/29/21

      5        5  

3.40%, 6/15/22

      50        50  

3.60%, 7/15/25

      470        467  

3.88%, 1/15/26

      65        65  

6.50%, 11/15/36

      850        1,028  

6.20%, 3/15/40

      55        64  

6.10%, 7/15/40

      200        228  

5.38%, 10/15/41

      500        529  

Viacom, Inc.,

      

2.20%, 4/1/19

      80        79  

3.25%, 3/15/23

      310        297  

3.88%, 4/1/24

      395        383  

6.88%, 4/30/36

      600        654  

4.50%, 2/27/42

      300        249  

Walt Disney (The) Co.,

      

5.50%, 3/15/19

      400        432  

1.85%, 5/30/19

      40        40  

3.75%, 6/1/21

      510        542  

2.55%, 2/15/22

      295        296  

4.13%, 12/1/41

      105        108  

3.70%, 12/1/42

      130        125  

3.00%, 7/30/46

      250        213  
  

 

 

     

 

 

  
        8,112  
     

 

 

  

Exploration & Production - 0.5%

      

Anadarko Petroleum Corp.,

      

3.45%, 7/15/24

      515        506  

7.95%, 6/15/39

      45        58  

6.20%, 3/15/40

      15        17  

4.50%, 7/15/44

      500        470  

Apache Corp.,

      

3.25%, 4/15/22

      180        183  

6.00%, 1/15/37

      360        414  

5.10%, 9/1/40

      250        262  

5.25%, 2/1/42

      260        277  

ConocoPhillips,

      

6.65%, 7/15/18

      100        107  

5.75%, 2/1/19

      209        225  

5.90%, 10/15/32

      270        311  

ConocoPhillips Co.,

      

2.40%, 12/15/22

      1,835        1,774  

4.95%, 3/15/26

      1,000        1,104  

Devon Energy Corp.,

      

3.25%, 5/15/22

      765        760  

7.95%, 4/15/32

      165        209  

Devon Financing Co. LLC,

      

7.88%, 9/30/31

      345        438  

EOG Resources, Inc.,

      

5.63%, 6/1/19

      215        232  

4.10%, 2/1/21

      729        768  

2.63%, 3/15/23

      150        145  

EQT Corp.,

      

4.88%, 11/15/21

      325        347  

Hess Corp.,

      

7.13%, 3/15/33

      690        787  

Kerr-McGee Corp.,

      

7.88%, 9/15/31

      70        90  

Marathon Oil Corp.,

      

2.80%, 11/1/22

      560        535  

3.85%, 6/1/25

      1,000        970  

6.80%, 3/15/32

      175        195  

Noble Energy, Inc.,

      

5.63%, 5/1/21

      114        119  

Occidental Petroleum Corp.,

      

4.10%, 2/1/21

      750        797  

3.13%, 2/15/22

      150        153  

4.40%, 4/15/46

      275        280  

Pioneer Natural Resources Co.,

      

6.88%, 5/1/18

      100        106  

3.95%, 7/15/22

      85        88  

7.20%, 1/15/28

      100        121  

Tosco Corp.,

      

8.13%, 2/15/30

      245        336  
  

 

 

     

 

 

  
        13,184  
     

 

 

  

Financial Services - 1.7%

      

Ameriprise Financial, Inc.,

      

7.30%, 6/28/19

      75        84  

5.30%, 3/15/20

      95        103  

4.00%, 10/15/23

      250        262  

3.70%, 10/15/24

      500        511  

2.88%, 9/15/26

      435        415  

 

FIXED INCOME INDEX FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Financial Services - 1.7% continued

      

Bank of New York Mellon (The) Corp.,

      

1.30%, 1/25/18

    $ 500      $ 500  

1.35%, 3/6/18

      150        150  

2.20%, 5/15/19

      65        65  

5.45%, 5/15/19

      75        81  

2.15%, 2/24/20

      855        852  

2.05%, 5/3/21

      500        491  

3.55%, 9/23/21

      1,455        1,515  

2.20%, 8/16/23

      285        272  

Bear Stearns (The) Cos. LLC,

      

7.25%, 2/1/18

      535        566  

BlackRock, Inc.,

      

5.00%, 12/10/19

      250        271  

4.25%, 5/24/21

      280        301  

3.38%, 6/1/22

      250        259  

3.50%, 3/18/24

      250        259  

Charles Schwab (The) Corp.,

      

1.50%, 3/10/18

      300        300  

2.20%, 7/25/18

      35        35  

4.45%, 7/22/20

      250        267  

3.00%, 3/10/25

      335        329  

CME Group, Inc.,

      

5.30%, 9/15/43

      125        146  

Goldman Sachs Group (The), Inc.,

      

5.95%, 1/18/18

      1,435        1,495  

6.15%, 4/1/18

      815        857  

2.63%, 1/31/19

      1,180        1,193  

2.55%, 10/23/19

      400        403  

2.30%, 12/13/19

      130        130  

5.38%, 3/15/20

      1,295        1,405  

2.60%, 4/23/20

      250        250  

2.75%, 9/15/20

      75        75  

2.63%, 4/25/21

      175        174  

5.25%, 7/27/21

      2,540        2,784  

5.75%, 1/24/22

      750        843  

3.63%, 1/22/23

      1,000        1,021  

4.00%, 3/3/24

      250        259  

3.85%, 7/8/24

      500        510  

3.75%, 5/22/25

      2,115        2,120  

3.75%, 2/25/26

      1,540        1,544  

5.95%, 1/15/27

      150        171  

6.75%, 10/1/37

      1,165        1,439  

6.25%, 2/1/41

      300        372  

4.80%, 7/8/44

      100        105  

4.75%, 10/21/45

      500        528  

Jefferies Group LLC,

      

8.50%, 7/15/19

      50        57  

5.13%, 1/20/23

      315        330  

Legg Mason, Inc.,

      

2.70%, 7/15/19

      65        65  

Morgan Stanley,

      

6.63%, 4/1/18

      1,435        1,518  

2.50%, 1/24/19

      750        758  

7.30%, 5/13/19

      645        719  

5.63%, 9/23/19

      475        515  

2.65%, 1/27/20

      600        603  

2.80%, 6/16/20

      190        192  

5.75%, 1/25/21

      1,000        1,110  

2.50%, 4/21/21

      510        504  

5.50%, 7/28/21

      1,088        1,206  

2.63%, 11/17/21

      500        494  

4.10%, 5/22/23

      1,280        1,314  

3.88%, 4/29/24

      1,410        1,446  

3.70%, 10/23/24

      500        506  

4.00%, 7/23/25

      1,215        1,245  

3.13%, 7/27/26

      250        239  

6.25%, 8/9/26

      100        119  

3.95%, 4/23/27

      490        485  

6.38%, 7/24/42

      300        386  

4.30%, 1/27/45

      575        573  

Nasdaq, Inc.,

      

3.85%, 6/30/26

      1,060        1,053  

National Rural Utilities Cooperative Finance Corp.,

      

2.15%, 2/1/19

      165        166  

2.30%, 11/15/19

      500        504  

2.00%, 1/27/20

      50        50  

3.05%, 2/15/22

      35        36  

2.85%, 1/27/25

      1,000        983  

8.00%, 3/1/32

      50        71  

State Street Corp.,

      

2.55%, 8/18/20

      1,000        1,010  

3.10%, 5/15/23

      225        225  

3.70%, 11/20/23

      550        573  

3.30%, 12/16/24

      120        121  

 

NORTHERN FUNDS QUARTERLY REPORT    17    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Financial Services - 1.7% continued

      

2.65%, 5/19/26

    $ 450      $ 427  

TD Ameritrade Holding Corp.,

      

2.95%, 4/1/22

      80        81  
  

 

 

     

 

 

  
        45,396  
     

 

 

  

Food & Beverage - 1.1%

      

Anheuser-Busch Cos. LLC,

      

5.50%, 1/15/18

      375        390  

5.95%, 1/15/33

      100        118  

5.75%, 4/1/36

      100        117  

6.45%, 9/1/37

      50        64  

Anheuser-Busch InBev Finance, Inc.,

      

1.25%, 1/17/18

      360        360  

2.15%, 2/1/19

      500        503  

2.65%, 2/1/21

      1,000        1,006  

3.30%, 2/1/23

      1,500        1,527  

3.65%, 2/1/26

      780        792  

4.70%, 2/1/36

      1,000        1,052  

4.00%, 1/17/43

      150        143  

4.63%, 2/1/44

      250        260  

4.90%, 2/1/46

      1,910        2,064  

Anheuser-Busch InBev Worldwide, Inc.,

      

5.38%, 1/15/20

      450        491  

2.50%, 7/15/22

      60        59  

8.20%, 1/15/39

      750        1,128  

3.75%, 7/15/42

      65        58  

Archer-Daniels-Midland Co.,

      

5.45%, 3/15/18

      141        148  

4.48%, 3/1/21

      34        37  

2.50%, 8/11/26

      305        288  

4.02%, 4/16/43

      56        55  

Beam Suntory, Inc.,

      

1.75%, 6/15/18

      250        249  

Brown-Forman Corp.,

      

1.00%, 1/15/18

      65        65  

3.75%, 1/15/43

      50        46  

4.50%, 7/15/45

      200        209  

Campbell Soup Co.,

      

4.25%, 4/15/21

      500        533  

2.50%, 8/2/22

      205        203  

3.80%, 8/2/42

      40        36  

Coca-Cola (The) Co.,

      

1.65%, 3/14/18

      125        125  

1.15%, 4/1/18

      250        249  

2.45%, 11/1/20

      500        505  

3.15%, 11/15/20

      260        270  

3.30%, 9/1/21

      250        261  

2.50%, 4/1/23

      355        351  

3.20%, 11/1/23

      100        103  

2.55%, 6/1/26

      770        730  

Coca-Cola European Partners US LLC,

      

3.25%, 8/19/21

      500        508  

Conagra Brands, Inc.,

      

3.25%, 9/15/22

      55        55  

3.20%, 1/25/23

      118        118  

7.00%, 10/1/28

      200        244  

Dr Pepper Snapple Group, Inc.,

      

3.13%, 12/15/23

      85        85  

Dr. Pepper Snapple Group, Inc.,

      

2.60%, 1/15/19

      80        81  

2.00%, 1/15/20

      90        89  

2.55%, 9/15/26

      95        88  

General Mills, Inc.,

      

2.20%, 10/21/19

      300        301  

3.15%, 12/15/21

      500        511  

3.65%, 2/15/24

      75        78  

5.40%, 6/15/40

      70        79  

Hershey (The) Co.,

      

2.30%, 8/15/26

      365        339  

JM Smucker (The) Co.,

      

3.50%, 3/15/25

      500        504  

4.38%, 3/15/45

      250        248  

Kellogg Co.,

      

3.25%, 5/21/18

      130        133  

2.75%, 3/1/23

      350        342  

4.50%, 4/1/46

      500        489  

Kraft Heinz Foods Co.,

      

2.80%, 7/2/20

      370        373  

3.50%, 6/6/22

      880        895  

3.95%, 7/15/25

      140        142  

3.00%, 6/1/26

      130        122  

5.00%, 7/15/35

      500        525  

5.00%, 6/4/42

      205        210  

5.20%, 7/15/45

      670        701  

4.38%, 6/1/46

      125        118  

Mead Johnson Nutrition Co.,

      

4.90%, 11/1/19

      250        268  

 

FIXED INCOME INDEX FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Food & Beverage - 1.1% continued

      

5.90%, 11/1/39

    $ 451      $ 510  

Molson Coors Brewing Co.,

      

2.10%, 7/15/21

      245        239  

5.00%, 5/1/42

      1,075        1,124  

PepsiCo, Inc.,

      

5.00%, 6/1/18

      650        683  

2.25%, 1/7/19

      500        506  

4.50%, 1/15/20

      300        323  

2.15%, 10/14/20

      285        285  

3.00%, 8/25/21

      770        792  

2.75%, 3/5/22

      385        390  

2.75%, 4/30/25

      500        490  

3.50%, 7/17/25

      100        103  

2.85%, 2/24/26

      115        113  

2.38%, 10/6/26

      245        232  

4.88%, 11/1/40

      265        294  

4.00%, 3/5/42

      50        50  

3.60%, 8/13/42

      50        47  

4.25%, 10/22/44

      320        330  

4.60%, 7/17/45

      130        142  

Tyson Foods, Inc.,

      

2.65%, 8/15/19

      290        293  

4.50%, 6/15/22

      300        319  

4.88%, 8/15/34

      100        102  
  

 

 

     

 

 

  
        29,608  
     

 

 

  

Forest & Paper Products Manufacturing - 0.1%

      

Domtar Corp.,

      

6.75%, 2/15/44

      100        102  

Georgia-Pacific LLC,

      

8.00%, 1/15/24

      500        638  

7.75%, 11/15/29

      500        673  
  

 

 

     

 

 

  
        1,413  
     

 

 

  

Hardware - 0.2%

      

Corning, Inc.,

      

4.25%, 8/15/20

      250        264  

5.75%, 8/15/40

      170        187  

Diamond 1 Finance Corp./Diamond 2 Finance Corp.,

      

4.42%, 6/15/21(6)

      1,215        1,257  

5.45%, 6/15/23(6)

      450        477  

8.10%, 7/15/36(6)

      500        595  

8.35%, 7/15/46(6)

      440        542  

HP, Inc.,

      

4.38%, 9/15/21

      540        568  

4.65%, 12/9/21

      200        213  

4.05%, 9/15/22

      25        26  

6.00%, 9/15/41

      275        277  

NetApp, Inc.,

      

3.25%, 12/15/22

      150        149  

Pitney Bowes, Inc.,

      

4.63%, 3/15/24

      150        148  
  

 

 

     

 

 

  
        4,703  
     

 

 

  

Health Care Facilities & Services - 0.3%

      

AmerisourceBergen Corp.,

      

3.25%, 3/1/25

      135        134  

4.25%, 3/1/45

      60        57  

Cardinal Health, Inc.,

      

1.70%, 3/15/18

      25        25  

4.63%, 12/15/20

      697        748  

3.20%, 6/15/22

      150        152  

3.75%, 9/15/25

      250        258  

4.60%, 3/15/43

      35        35  

4.50%, 11/15/44

      175        174  

Catholic Health Initiatives,

      

1.60%, 11/1/17

      85        85  

Express Scripts Holding Co.,

      

4.75%, 11/15/21

      500        537  

4.50%, 2/25/26

      1,130        1,163  

6.13%, 11/15/41

      21        24  

4.80%, 7/15/46

      250        239  

Laboratory Corp. of America Holdings,

      

2.50%, 11/1/18

      385        388  

2.63%, 2/1/20

      1,175        1,174  

4.70%, 2/1/45

      300        296  

McKesson Corp.,

      

1.40%, 3/15/18

      80        80  

2.70%, 12/15/22

      120        117  

3.80%, 3/15/24

      160        165  

6.00%, 3/1/41

      250        289  

4.88%, 3/15/44

      355        361  

Memorial Sloan-Kettering Cancer Center,

      

4.13%, 7/1/52

      100        97  

Quest Diagnostics, Inc.,

      

4.75%, 1/30/20

      340        363  

 

NORTHERN FUNDS QUARTERLY REPORT    19    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Health Care Facilities & Services - 0.3% continued

      

2.50%, 3/30/20

    $ 130      $ 130  

3.45%, 6/1/26

      115        113  

5.75%, 1/30/40

      28        30  
  

 

 

     

 

 

  
        7,234  
     

 

 

  

Home & Office Products Manufacturing - 0.1%

      

Newell Brands, Inc.,

      

2.60%, 3/29/19

      230        233  

2.88%, 12/1/19

      125        127  

3.15%, 4/1/21

      500        509  

3.85%, 4/1/23

      1,000        1,037  

4.20%, 4/1/26

      100        104  

5.50%, 4/1/46

      250        287  
  

 

 

     

 

 

  
        2,297  
     

 

 

  

Home Improvement - 0.0%

      

Stanley Black & Decker, Inc.,

      

3.40%, 12/1/21

      265        274  

2.90%, 11/1/22

      65        65  

Whirlpool Corp.,

      

4.85%, 6/15/21

      100        109  

4.70%, 6/1/22

      100        109  

3.70%, 3/1/23

      100        102  

4.50%, 6/1/46

      90        88  
  

 

 

     

 

 

  
        747  
     

 

 

  

Industrial Other - 0.1%

      

Fluor Corp.,

      

3.50%, 12/15/24

      1,425        1,441  
  

 

 

     

 

 

  

Integrated Oils - 0.3%

      

Chevron Corp.,

      

1.56%, 5/16/19

      435        433  

2.19%, 11/15/19

      805        813  

2.43%, 6/24/20

      500        505  

2.42%, 11/17/20

      1,000        1,007  

2.10%, 5/16/21

      560        555  

2.36%, 12/5/22

      445        437  

3.19%, 6/24/23

      210        215  

3.33%, 11/17/25

      225        229  

2.95%, 5/16/26

      190        187  

Exxon Mobil Corp.,

      

1.91%, 3/6/20

      1,070        1,069  

2.73%, 3/1/23

      105        105  

2.71%, 3/6/25

      500        487  

3.57%, 3/6/45

      590        550  

4.11%, 3/1/46

      350        358  
  

 

 

     

 

 

  
        6,950  
     

 

 

  

Internet Media - 0.0%

      

Alphabet, Inc.,

      

3.63%, 5/19/21

      250        265  
  

 

 

     

 

 

  

Leisure Products Manufacturing - 0.0%

      

Hasbro, Inc.,

      

3.15%, 5/15/21

      35        35  

6.35%, 3/15/40

      250        291  

Mattel, Inc.,

      

1.70%, 3/15/18

      35        35  

2.35%, 5/6/19

      150        151  

6.20%, 10/1/40

      50        55  
  

 

 

     

 

 

  
        567  
     

 

 

  

Life Insurance - 0.3%

      

Aflac, Inc.,

      

6.45%, 8/15/40

      15        20  

Lincoln National Corp.,

      

4.85%, 6/24/21

      100        108  

4.00%, 9/1/23

      275        287  

6.15%, 4/7/36

      10        12  

6.30%, 10/9/37

      100        118  

MetLife, Inc.,

      

3.05%, 12/15/22

      965        974  

4.37%, 9/15/23

      150        161  

6.38%, 6/15/34

      485        610  

5.70%, 6/15/35

      350        412  

6.40%, 12/15/36

      150        162  

4.05%, 3/1/45

      500        480  

Primerica, Inc.,

      

4.75%, 7/15/22

      100        107  

Principal Financial Group, Inc.,

      

4.63%, 9/15/42

      40        42  

Protective Life Corp.,

      

7.38%, 10/15/19

      300        340  

8.45%, 10/15/39

      425        563  

Prudential Financial, Inc.,

      

2.30%, 8/15/18

      140        141  

2.35%, 8/15/19

      200        202  

5.38%, 6/21/20

      175        192  

 

FIXED INCOME INDEX FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Life Insurance - 0.3% continued

      

4.50%, 11/15/20

    $ 270      $ 289  

3.50%, 5/15/24

      85        87  

5.75%, 7/15/33

      50        57  

5.70%, 12/14/36

      200        231  

6.63%, 12/1/37

      200        254  

8.88%, 6/15/38(1)

      450        486  

5.63%, 5/12/41

      260        300  

5.63%, 6/15/43(1)

      200        208  

5.20%, 3/15/44(1)

      65        64  

Reinsurance Group of America, Inc.,

      

5.00%, 6/1/21

      550        594  

Torchmark Corp.,

      

3.80%, 9/15/22

      420        429  

Voya Financial, Inc.,

      

4.80%, 6/15/46

      1,000        972  
  

 

 

     

 

 

  
        8,902  
     

 

 

  

Machinery Manufacturing - 0.5%

      

Caterpillar Financial Services Corp.,

      

1.30%, 3/1/18

      40        40  

5.45%, 4/15/18

      300        314  

3.75%, 11/24/23

      1,000        1,050  

Caterpillar, Inc.,

      

3.90%, 5/27/21

      500        527  

3.40%, 5/15/24

      1,000        1,030  

5.20%, 5/27/41

      450        522  

3.80%, 8/15/42

      102        98  

4.30%, 5/15/44

      150        156  

Deere & Co.,

      

2.60%, 6/8/22

      125        124  

5.38%, 10/16/29

      250        300  

8.10%, 5/15/30

      100        146  

Dover Corp.,

      

4.30%, 3/1/21

      310        331  

Eaton Corp.,

      

2.75%, 11/2/22

      1,500        1,486  

IDEX Corp.,

      

4.20%, 12/15/21

      200        205  

Illinois Tool Works, Inc.,

      

1.95%, 3/1/19

      130        131  

3.38%, 9/15/21

      250        261  

3.50%, 3/1/24

      250        260  

3.90%, 9/1/42

      200        200  

Ingersoll-Rand Global Holding Co. Ltd.,

      

4.25%, 6/15/23

      1,500        1,587  

John Deere Capital Corp.,

      

1.30%, 3/12/18

      250        249  

1.60%, 7/13/18

      215        215  

5.75%, 9/10/18

      200        214  

1.70%, 1/15/20

      150        148  

2.05%, 3/10/20

      1,250        1,246  

2.45%, 9/11/20

      100        100  

3.15%, 10/15/21

      250        256  

2.80%, 1/27/23

      150        150  

2.80%, 3/6/23

      500        500  

Kennametal, Inc.,

      

2.65%, 11/1/19

      100        99  

Parker-Hannifin Corp.,

      

3.30%, 11/21/24

      215        218  

4.20%, 11/21/34

      200        204  

4.45%, 11/21/44

      500        528  
  

 

 

     

 

 

  
        12,895  
     

 

 

  

Managed Care - 0.4%

      

Aetna, Inc.,

      

4.13%, 6/1/21

      250        266  

2.40%, 6/15/21

      290        289  

2.75%, 11/15/22

      400        393  

3.20%, 6/15/26

      1,355        1,341  

4.25%, 6/15/36

      290        291  

6.63%, 6/15/36

      40        51  

6.75%, 12/15/37

      150        195  

4.50%, 5/15/42

      100        101  

Anthem, Inc.,

      

1.88%, 1/15/18

      205        205  

2.30%, 7/15/18

      165        166  

3.30%, 1/15/23

      430        429  

3.50%, 8/15/24

      160        160  

5.95%, 12/15/34

      50        57  

4.63%, 5/15/42

      525        528  

Cigna Corp.,

      

3.25%, 4/15/25

      330        321  

6.15%, 11/15/36

      45        52  

5.38%, 2/15/42

      310        345  

Humana, Inc.,

      

2.63%, 10/1/19

      100        101  

3.85%, 10/1/24

      85        87  

 

NORTHERN FUNDS QUARTERLY REPORT    21    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Managed Care - 0.4% continued

      

8.15%, 6/15/38

    $ 280      $ 381  

UnitedHealth Group, Inc.,

      

1.63%, 3/15/19

      210        209  

4.70%, 2/15/21

      300        325  

2.88%, 3/15/22

      1,300        1,317  

3.75%, 7/15/25

      430        445  

5.80%, 3/15/36

      250        304  

6.63%, 11/15/37

      640        837  

6.88%, 2/15/38

      170        231  
  

 

 

     

 

 

  
        9,427  
     

 

 

  

Mass Merchants - 0.3%

      

Target Corp.,

      

2.30%, 6/26/19

      1,000        1,016  

3.88%, 7/15/20

      195        207  

2.90%, 1/15/22

      515        525  

3.63%, 4/15/46

      500        465  

Wal-Mart Stores, Inc.,

      

1.13%, 4/11/18

      350        349  

3.63%, 7/8/20

      200        211  

4.25%, 4/15/21

      600        649  

3.30%, 4/22/24

      625        643  

5.88%, 4/5/27

      250        309  

5.25%, 9/1/35

      175        209  

6.50%, 8/15/37

      750        1,016  

6.20%, 4/15/38

      275        363  

5.63%, 4/1/40

      555        687  

4.88%, 7/8/40

      90        102  

5.00%, 10/25/40

      100        115  

5.63%, 4/15/41

      375        466  

4.00%, 4/11/43

      415        417  

4.75%, 10/2/43

      100        112  
  

 

 

     

 

 

  
        7,861  
     

 

 

  

Medical Equipment & Devices Manufacturing - 0.6%

      

Abbott Laboratories,

      

2.95%, 3/15/25

      1,000        963  

4.75%, 11/30/36

      555        564  

Agilent Technologies, Inc.,

      

3.20%, 10/1/22

      225        225  

3.88%, 7/15/23

      250        257  

Baxter International, Inc.,

      

1.70%, 8/15/21

      60        58  

3.50%, 8/15/46

      350        294  

Becton Dickinson and Co.,

      

2.68%, 12/15/19

      374        380  

3.25%, 11/12/20

      430        442  

3.13%, 11/8/21

      150        154  

3.30%, 3/1/23

      130        131  

6.00%, 5/15/39

      290        338  

4.69%, 12/15/44

      55        57  

Boston Scientific Corp.,

      

2.65%, 10/1/18

      80        81  

2.85%, 5/15/20

      130        132  

3.85%, 5/15/25

      250        251  

7.38%, 1/15/40

      100        124  

C.R. Bard, Inc.,

      

1.38%, 1/15/18

      160        160  

3.00%, 5/15/26

      660        630  

Life Technologies Corp.,

      

6.00%, 3/1/20

      500        545  

Medtronic, Inc.,

      

1.50%, 3/15/18

      280        280  

2.50%, 3/15/20

      1,000        1,011  

4.13%, 3/15/21

      500        531  

3.13%, 3/15/22

      150        153  

3.50%, 3/15/25

      750        772  

4.38%, 3/15/35

      1,275        1,349  

6.50%, 3/15/39

      100        130  

5.55%, 3/15/40

      200        233  

4.50%, 3/15/42

      100        104  

4.63%, 3/15/44

      100        107  

4.63%, 3/15/45

      500        541  

St. Jude Medical, Inc.,

      

3.25%, 4/15/23

      140        139  

4.75%, 4/15/43

      150        147  

Stryker Corp.,

      

2.63%, 3/15/21

      500        502  

4.10%, 4/1/43

      50        47  

4.38%, 5/15/44

      200        194  

4.63%, 3/15/46

      750        765  

Thermo Fisher Scientific, Inc.,

      

1.85%, 1/15/18

      115        115  

3.60%, 8/15/21

      250        258  

3.30%, 2/15/22

      320        325  

4.15%, 2/1/24

      100        104  

2.95%, 9/19/26

      155        146  

 

FIXED INCOME INDEX FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Medical Equipment & Devices Manufacturing - 0.6% continued

      

Zimmer Biomet Holdings, Inc.,

      

2.70%, 4/1/20

    $ 120      $ 120  

3.38%, 11/30/21

      250        252  

3.15%, 4/1/22

      500        499  

3.55%, 4/1/25

      120        117  
  

 

 

     

 

 

  
        14,727  
     

 

 

  

Metals & Mining - 0.1%

      

Barrick North America Finance LLC,

      

4.40%, 5/30/21

      79        83  

7.50%, 9/15/38

      100        116  

Newmont Mining Corp.,

      

5.88%, 4/1/35

      100        107  

4.88%, 3/15/42

      150        141  

Nucor Corp.,

      

5.85%, 6/1/18

      200        211  

4.00%, 8/1/23

      250        263  

6.40%, 12/1/37

      150        187  

5.20%, 8/1/43

      125        141  

Southern Copper Corp.,

      

3.88%, 4/23/25

      100        99  

7.50%, 7/27/35

      300        346  

6.75%, 4/16/40

      90        97  

5.88%, 4/23/45

      500        491  
  

 

 

     

 

 

  
        2,282  
     

 

 

  

Oil & Gas Services & Equipment - 0.2%

      

Baker Hughes, Inc.,

      

3.20%, 8/15/21

      1,075        1,098  

5.13%, 9/15/40

      210        231  

Halliburton Co.,

      

3.50%, 8/1/23

      715        726  

4.85%, 11/15/35

      75        79  

7.45%, 9/15/39

      840        1,128  

Nabors Industries, Inc.,

      

4.63%, 9/15/21

      295        300  

5.50%, 1/15/23(6)

      250        260  

Oceaneering International, Inc.,

      

4.65%, 11/15/24

      100        99  
  

 

 

     

 

 

  
        3,921  
     

 

 

  

Pharmaceuticals - 0.8%

      

AbbVie, Inc.,

      

2.50%, 5/14/20

      440        440  

2.30%, 5/14/21

      800        784  

2.90%, 11/6/22

      1,000        988  

3.60%, 5/14/25

      225        223  

4.40%, 11/6/42

      415        390  

4.70%, 5/14/45

      840        824  

Actavis, Inc.,

      

3.25%, 10/1/22

      1,000        996  

Allergan, Inc.,

      

1.35%, 3/15/18

      100        99  

Baxalta, Inc.,

      

2.88%, 6/23/20

      370        370  

5.25%, 6/23/45

      625        667  

Bristol-Myers Squibb Co.,

      

1.75%, 3/1/19

      500        499  

2.00%, 8/1/22

      600        585  

Eli Lilly & Co.,

      

1.25%, 3/1/18

      165        165  

1.95%, 3/15/19

      35        35  

GlaxoSmithKline Capital, Inc.,

      

5.65%, 5/15/18

      800        843  

5.38%, 4/15/34

      150        176  

6.38%, 5/15/38

      530        697  

4.20%, 3/18/43

      20        21  

Johnson & Johnson,

      

1.88%, 12/5/19

      300        302  

1.65%, 3/1/21

      185        182  

3.55%, 5/15/21

      250        265  

2.45%, 3/1/26

      500        478  

6.95%, 9/1/29

      100        137  

4.38%, 12/5/33

      250        275  

5.95%, 8/15/37

      100        131  

4.85%, 5/15/41

      400        469  

Merck & Co., Inc.,

      

2.35%, 2/10/22

      1,000        993  

2.80%, 5/18/23

      300        301  

2.75%, 2/10/25

      500        491  

3.60%, 9/15/42

      25        24  

4.15%, 5/18/43

      60        62  

Merck Sharp & Dohme Corp.,

      

5.00%, 6/30/19

      725        785  

5.85%, 6/30/39

      575        725  

Mylan, Inc.,

      

5.40%, 11/29/43

      85        80  

 

NORTHERN FUNDS QUARTERLY REPORT    23    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Pharmaceuticals - 0.8% continued

      

Novartis Capital Corp.,

      

4.40%, 4/24/20

    $ 185      $ 198  

2.40%, 9/21/22

      40        40  

3.40%, 5/6/24

      250        258  

4.40%, 5/6/44

      250        270  

Pfizer, Inc.,

      

1.95%, 6/3/21

      1,000        989  

2.20%, 12/15/21

      90        90  

3.40%, 5/15/24

      150        155  

7.20%, 3/15/39

      700        1,011  

4.40%, 5/15/44

      500        528  

4.13%, 12/15/46

      350        356  

Pharmacia LLC,

      

6.60%, 12/1/28

      125        159  

Teva Pharmaceutical Finance Co. LLC,

      

6.15%, 2/1/36

      45        50  

Wyeth LLC,

      

5.95%, 4/1/37

      725        912  

Zoetis, Inc.,

      

1.88%, 2/1/18

      40        40  

3.25%, 2/1/23

      500        499  

4.70%, 2/1/43

      40        39  
  

 

 

     

 

 

  
        20,096  
     

 

 

  

Pipeline - 0.8%

      

Buckeye Partners L.P.,

      

4.88%, 2/1/21

      50        53  

4.35%, 10/15/24

      35        36  

5.60%, 10/15/44

      500        506  

El Paso Natural Gas Co. LLC,

      

8.63%, 1/15/22

      360        440  

8.38%, 6/15/32

      471        584  

Enable Midstream Partners L.P.,

      

2.40%, 5/15/19

      250        245  

3.90%, 5/15/24

      200        190  

Enbridge Energy Partners L.P.,

      

5.20%, 3/15/20

      210        224  

4.20%, 9/15/21

      65        68  

7.50%, 4/15/38

      50        59  

Energy Transfer Partners L.P.,

      

4.90%, 2/1/24

      770        796  

6.63%, 10/15/36

      1,010        1,094  

7.50%, 7/1/38

      200        232  

Enterprise Products Operating LLC,

      

2.55%, 10/15/19

      100        101  

5.25%, 1/31/20

      1,000        1,082  

3.35%, 3/15/23

      365        370  

3.90%, 2/15/24

      1,495        1,542  

3.70%, 2/15/26

      105        105  

3.95%, 2/15/27

      500        512  

6.88%, 3/1/33

      50        61  

7.55%, 4/15/38

      485        627  

6.45%, 9/1/40

      30        36  

5.95%, 2/1/41

      40        45  

Kinder Morgan Energy Partners L.P.,

      

6.85%, 2/15/20

      70        78  

6.50%, 4/1/20

      165        183  

3.50%, 9/1/23

      715        705  

4.30%, 5/1/24

      170        174  

7.40%, 3/15/31

      380        450  

7.30%, 8/15/33

      125        147  

6.55%, 9/15/40

      85        93  

6.38%, 3/1/41

      145        157  

5.63%, 9/1/41

      335        336  

5.00%, 8/15/42

      95        91  

5.40%, 9/1/44

      250        249  

Kinder Morgan, Inc.,

      

6.50%, 9/15/20

      255        286  

7.75%, 1/15/32

      50        61  

Magellan Midstream Partners L.P.,

      

4.25%, 2/1/21

      200        212  

5.00%, 3/1/26

      500        548  

5.15%, 10/15/43

      20        21  

4.20%, 3/15/45

      30        27  

ONEOK Partners L.P.,

      

3.38%, 10/1/22

      70        70  

5.00%, 9/15/23

      40        44  

6.20%, 9/15/43

      100        111  

Phillips 66 Partners L.P.,

      

3.61%, 2/15/25

      566        554  

Plains All American Pipeline L.P./PAA Finance Corp.,

      

4.65%, 10/15/25

      1,075        1,111  

4.50%, 12/15/26

      245        249  

6.65%, 1/15/37

      125        136  

5.15%, 6/1/42

      130        121  

 

FIXED INCOME INDEX FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Pipeline - 0.8% continued

      

Regency Energy Partners L.P./Regency Energy Finance Corp.,

      

6.50%, 7/15/21

    $ 860      $ 888  

5.50%, 4/15/23

      155        160  

Southern Union Co.,

      

8.25%, 11/15/29

      25        29  

Spectra Energy Capital LLC,

      

6.20%, 4/15/18

      350        366  

8.00%, 10/1/19

      1,000        1,137  

3.30%, 3/15/23

      200        193  

7.50%, 9/15/38

      50        61  

Spectra Energy Partners L.P.,

      

2.95%, 9/25/18

      55        56  

3.38%, 10/15/26

      200        191  

5.95%, 9/25/43

      300        340  

Sunoco Logistics Partners Operations L.P.,

      

4.25%, 4/1/24

      200        202  

5.95%, 12/1/25

      175        195  

5.30%, 4/1/44

      100        97  

Tennessee Gas Pipeline Co. LLC,

      

7.00%, 3/15/27

      505        588  

7.00%, 10/15/28

      100        117  

8.38%, 6/15/32

      215        268  

7.63%, 4/1/37

      5        6  

Transcontinental Gas Pipe Line Co. LLC,

      

5.40%, 8/15/41

      130        130  

Williams Partners L.P.,

      

6.30%, 4/15/40

      875        934  

5.80%, 11/15/43

      200        205  

Williams Partners L.P./ACMP Finance Corp.,

      

6.13%, 7/15/22

      155        160  

4.88%, 3/15/24

      325        328  
  

 

 

     

 

 

  
        21,873  
     

 

 

  

Power Generation - 0.1%

      

Consumers Energy Co.,

      

6.13%, 3/15/19

      200        218  

2.85%, 5/15/22

      545        554  

Delmarva Power & Light Co.,

      

4.00%, 6/1/42

      200        194  

Exelon Generation Co. LLC,

      

5.20%, 10/1/19

      225        241  

4.25%, 6/15/22

      250        259  

System Energy Resources, Inc.,

      

4.10%, 4/1/23

      160        164  
  

 

 

     

 

 

  
        1,630  
     

 

 

  

Property & Casualty Insurance - 0.5%

      

Alleghany Corp.,

      

4.95%, 6/27/22

      55        60  

Allstate (The) Corp.,

      

5.55%, 5/9/35

      50        59  

6.13%, 5/15/37(1)

      100        97  

5.20%, 1/15/42

      225        241  

6.50%, 5/15/57(1)

      225        255  

American International Group, Inc.,

      

3.75%, 7/10/25

      895        901  

3.90%, 4/1/26

      950        967  

4.80%, 7/10/45

      45        47  

4.38%, 1/15/55

      105        96  

Aon Corp.,

      

5.00%, 9/30/20

      200        215  

Assurant, Inc.,

      

2.50%, 3/15/18

      50        51  

Berkshire Hathaway Finance Corp.,

      

1.30%, 5/15/18

      65        65  

5.40%, 5/15/18

      300        316  

5.75%, 1/15/40

      255        314  

4.40%, 5/15/42

      100        105  

4.30%, 5/15/43

      125        129  

Berkshire Hathaway, Inc.,

      

2.10%, 8/14/19

      250        252  

2.75%, 3/15/23

      75        75  

3.13%, 3/15/26

      1,400        1,391  

4.50%, 2/11/43

      300        319  

Chubb (The) Corp.,

      

5.75%, 5/15/18

      325        343  

6.00%, 5/11/37

      50        62  

6.50%, 5/15/38

      85        114  

Chubb INA Holdings, Inc.,

      

5.90%, 6/15/19

      355        388  

2.70%, 3/13/23

      300        297  

3.35%, 5/3/26

      1,000        1,013  

6.70%, 5/15/36

      50        66  

4.15%, 3/13/43

      100        101  

 

NORTHERN FUNDS QUARTERLY REPORT    25    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Property & Casualty Insurance - 0.5% continued

      

CNA Financial Corp.,

      

7.35%, 11/15/19

    $ 250      $ 284  

Hartford Financial Services Group (The), Inc.,

      

5.50%, 3/30/20

      250        273  

5.13%, 4/15/22

      145        161  

5.95%, 10/15/36

      285        326  

Infinity Property & Casualty Corp.,

      

5.00%, 9/19/22

      115        117  

Loews Corp.,

      

2.63%, 5/15/23

      250        243  

4.13%, 5/15/43

      75        72  

Marsh & McLennan Cos., Inc.,

      

2.35%, 3/6/20

      450        450  

3.50%, 3/10/25

      125        126  

Progressive (The) Corp.,

      

3.75%, 8/23/21

      330        349  

Transatlantic Holdings, Inc.,

      

8.00%, 11/30/39

      70        89  

Travelers (The) Cos., Inc.,

      

5.80%, 5/15/18

      375        396  

6.25%, 6/15/37

      375        482  

5.35%, 11/1/40

      25        29  

4.60%, 8/1/43

      75        81  
  

 

 

     

 

 

  
        11,817  
     

 

 

  

Publishing & Broadcasting - 0.3%

      

21st Century Fox America, Inc.,

      

6.90%, 3/1/19

      30        33  

3.70%, 9/15/24

      915        927  

6.40%, 12/15/35

      40        48  

8.15%, 10/17/36

      15        20  

6.15%, 3/1/37

      70        82  

6.65%, 11/15/37

      550        677  

7.85%, 3/1/39

      100        134  

6.90%, 8/15/39

      310        389  

4.95%, 10/15/45

      500        514  

Discovery Communications LLC,

      

5.63%, 8/15/19

      250        270  

4.38%, 6/15/21

      880        928  

3.30%, 5/15/22

      340        339  

3.25%, 4/1/23

      750        731  

6.35%, 6/1/40

      195        207  

Historic TW, Inc.,

      

6.88%, 6/15/18

      250        267  

NBCUniversal Media LLC,

      

2.88%, 1/15/23

      1,340        1,337  

6.40%, 4/30/40

      115        149  

4.45%, 1/15/43

      10        10  

Time Warner Cos., Inc.,

      

6.95%, 1/15/28

      540        674  
  

 

 

     

 

 

  
        7,736  
     

 

 

  

Railroad - 0.3%

      

Burlington Northern Santa Fe LLC,

      

5.75%, 3/15/18

      100        105  

4.10%, 6/1/21

      20        21  

3.05%, 9/1/22

      440        449  

3.75%, 4/1/24

      355        373  

3.40%, 9/1/24

      190        196  

6.20%, 8/15/36

      455        583  

5.75%, 5/1/40

      225        275  

4.40%, 3/15/42

      280        292  

CSX Corp.,

      

4.25%, 6/1/21

      100        107  

3.70%, 11/1/23

      50        52  

3.40%, 8/1/24

      500        509  

2.60%, 11/1/26

      270        253  

6.00%, 10/1/36

      100        119  

6.15%, 5/1/37

      190        233  

6.22%, 4/30/40

      365        455  

5.50%, 4/15/41

      50        57  

Kansas City Southern,

      

2.35%, 5/15/20

      100        99  

Norfolk Southern Corp.,

      

5.90%, 6/15/19

      320        349  

3.25%, 12/1/21

      250        257  

2.90%, 2/15/23

      450        447  

7.25%, 2/15/31

      500        672  

7.05%, 5/1/37

      90        122  

3.95%, 10/1/42

      20        19  

Union Pacific Corp.,

      

4.16%, 7/15/22

      437        471  

2.95%, 1/15/23

      35        35  

2.75%, 4/15/23

      65        65  

3.65%, 2/15/24

      524        547  

 

FIXED INCOME INDEX FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

 

Railroad - 0.3% continued

      

2.75%, 3/1/26

    $ 300      $ 293  

4.75%, 9/15/41

      100        109  

4.30%, 6/15/42

      200        207  
  

 

 

     

 

 

  
        7,771  
     

 

 

  

Real Estate - 0.5%

      

Alexandria Real Estate Equities, Inc.,

      

4.60%, 4/1/22

      100        106  

American Campus Communities Operating Partnership L.P.,

      

4.13%, 7/1/24

      100        102  

American Tower Corp.,

      

3.40%, 2/15/19

      130        133  

4.70%, 3/15/22

      345        368  

5.00%, 2/15/24

      250        269  

AvalonBay Communities, Inc.,

      

6.10%, 3/15/20

      150        167  

3.63%, 10/1/20

      75        78  

2.95%, 9/15/22

      50        50  

Boston Properties L.P.,

      

5.88%, 10/15/19

      500        545  

3.85%, 2/1/23

      150        154  

3.13%, 9/1/23

      135        132  

Camden Property Trust,

      

2.95%, 12/15/22

      150        147  

Corporate Office Properties L.P.,

      

3.60%, 5/15/23

      90        87  

5.25%, 2/15/24

      100        104  

DDR Corp.,

      

3.50%, 1/15/21

      150        152  

3.38%, 5/15/23

      115        112  

Digital Realty Trust L.P.,

      

5.25%, 3/15/21

      150        163  

3.63%, 10/1/22

      250        252  

Duke Realty L.P.,

      

4.38%, 6/15/22

      100        107  

EPR Properties,

      

7.75%, 7/15/20

      50        57  

5.75%, 8/15/22

      100        108  

Equity Commonwealth,

      

5.88%, 9/15/20

      100        107  

Equity One, Inc.,

      

3.75%, 11/15/22

      100        102  

ERP Operating L.P.,

      

4.75%, 7/15/20

      335        360  

4.63%, 12/15/21

      111        121  

4.50%, 6/1/45

      55        55  

Essex Portfolio L.P.,

      

3.25%, 5/1/23

      50        50  

3.88%, 5/1/24

      200        204  

Federal Realty Investment Trust,

      

3.00%, 8/1/22

      25        25  

HCP, Inc.,

      

3.15%, 8/1/22

      100        99  

4.25%, 11/15/23

      90        92  

3.88%, 8/15/24

      860        860  

3.40%, 2/1/25

      200        191  

Healthcare Realty Trust, Inc.,

      

5.75%, 1/15/21

      200        220  

Highwoods Realty L.P.,

      

3.63%, 1/15/23

      100        99  

Hospitality Properties Trust,

      

6.70%, 1/15/18

      75        77  

4.50%, 6/15/23

      365        364  

Host Hotels & Resorts L.P.,

      

4.00%, 6/15/25

      215        212  

Kilroy Realty L.P.,

      

3.80%, 1/15/23

      200        201  

Kimco Realty Corp.,

      

3.20%, 5/1/21

      240        244  

Lexington Realty Trust,

      

4.40%, 6/15/24

      200        196  

Liberty Property L.P.,

      

4.13%, 6/15/22

      250        260  

4.40%, 2/15/24

      80        84  

Mid-America Apartments L.P.,

      

3.75%, 6/15/24

      100        100  

National Retail Properties, Inc.,

      

3.80%, 10/15/22

      100        103  

3.30%, 4/15/23

      100        99  

Piedmont Operating Partnership L.P.,

      

4.45%, 3/15/24

      100        100  

Realty Income Corp.,

      

2.00%, 1/31/18

      250        251  

3.25%, 10/15/22

      265        267  

4.65%, 8/1/23

      185        198  

 

NORTHERN FUNDS QUARTERLY REPORT    27    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

 

   

Real Estate - 0.5% continued

      

Senior Housing Properties Trust,

      

3.25%, 5/1/19

    $ 75      $ 75  

4.75%, 5/1/24

      125        125  

Simon Property Group L.P.,

      

2.75%, 2/1/23

      100        99  

3.38%, 10/1/24

      1,000        1,009  

UDR, Inc.,

      

4.63%, 1/10/22

      165        177  

Ventas Realty L.P.,

      

5.70%, 9/30/43

      100        112  

Ventas Realty L.P./Ventas Capital Corp.,

      

4.25%, 3/1/22

      395        418  

3.25%, 8/15/22

      320        323  

Vornado Realty L.P.,

      

5.00%, 1/15/22

      160        173  

Washington Real Estate Investment Trust,

      

4.95%, 10/1/20

      215        226  

Welltower, Inc.,

      

2.25%, 3/15/18

      25        25  

4.13%, 4/1/19

      75        78  

5.13%, 3/15/43

      150        155  

Weyerhaeuser Co.,

      

4.63%, 9/15/23

      185        199  

6.88%, 12/15/33

      740        900  
  

 

 

     

 

 

  
        12,828  
     

 

 

  

Refining & Marketing - 0.1%

      

Marathon Petroleum Corp.,

      

3.63%, 9/15/24

      305        301  

6.50%, 3/1/41

      256        274  

Phillips 66,

      

4.65%, 11/15/34

      395        411  

5.88%, 5/1/42

      305        361  

Valero Energy Corp.,

      

9.38%, 3/15/19

      100        115  

7.50%, 4/15/32

      765        940  

10.50%, 3/15/39

      325        497  
  

 

 

     

 

 

  
        2,899  
     

 

 

  

Restaurants - 0.1%

      

McDonald’s Corp.,

      

5.35%, 3/1/18

      100        104  

2.20%, 5/26/20

      1,890        1,891  

3.63%, 5/20/21

      100        104  

6.30%, 10/15/37

      505        635  

3.70%, 2/15/42

      100        89  

Starbucks Corp.,

      

2.10%, 2/4/21

      540        538  

3.85%, 10/1/23

      200        213  

4.30%, 6/15/45

      200        210  
  

 

 

     

 

 

  
        3,784  
     

 

 

  

Retail - Consumer Discretionary - 0.5%

      

Amazon.com, Inc.,

      

2.60%, 12/5/19

      530        540  

2.50%, 11/29/22

      150        148  

3.80%, 12/5/24

      1,000        1,051  

4.80%, 12/5/34

      1,050        1,156  

AutoZone, Inc.,

      

7.13%, 8/1/18

      1,000        1,081  

4.00%, 11/15/20

      250        262  

2.50%, 4/15/21

      95        94  

3.70%, 4/15/22

      55        57  

3.13%, 7/15/23

      135        134  

eBay, Inc.,

      

2.20%, 8/1/19

      100        100  

2.60%, 7/15/22

      500        485  

4.00%, 7/15/42

      235        196  

Home Depot (The), Inc.,

      

2.25%, 9/10/18

      65        66  

4.40%, 4/1/21

      250        271  

2.63%, 6/1/22

      475        477  

2.70%, 4/1/23

      125        125  

3.00%, 4/1/26

      170        170  

2.13%, 9/15/26

      275        254  

5.88%, 12/16/36

      350        442  

5.40%, 9/15/40

      500        596  

5.95%, 4/1/41

      405        515  

4.88%, 2/15/44

      405        455  

Lowe’s Cos., Inc.,

      

4.63%, 4/15/20

      100        107  

3.80%, 11/15/21

      500        531  

3.12%, 4/15/22

      500        512  

3.88%, 9/15/23

      400        425  

3.13%, 9/15/24

      150        151  

5.80%, 10/15/36

      100        121  

5.80%, 4/15/40

      350        429  

5.13%, 11/15/41

      50        57  

 

FIXED INCOME INDEX FUNDS    28    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Retail - Consumer Discretionary - 0.5% continued

      

4.65%, 4/15/42

    $ 50      $ 53  

3.70%, 4/15/46

      250        233  

QVC, Inc.,

      

4.45%, 2/15/25

      415        399  

5.45%, 8/15/34

      450        410  

Staples, Inc.,

      

2.75%, 1/12/18

      125        126  

TJX (The) Cos., Inc.,

      

2.75%, 6/15/21

      150        153  

2.50%, 5/15/23

      705        690  

2.25%, 9/15/26

      1,000        921  
  

 

 

     

 

 

  
        13,993  
     

 

 

  

Retail - Consumer Staples - 0.1%

      

Bunge Ltd. Finance Corp.,

      

8.50%, 6/15/19

      310        355  

3.25%, 8/15/26

      715        687  

Sysco Corp.,

      

2.60%, 10/1/20

      1,080        1,089  

2.60%, 6/12/22

      95        93  

3.30%, 7/15/26

      120        118  

6.63%, 3/17/39

      200        254  
  

 

 

     

 

 

  
        2,596  
     

 

 

  

Semiconductors - 0.3%

      

Altera Corp.,

      

2.50%, 11/15/18

      20        20  

4.10%, 11/15/23

      1,340        1,442  

Applied Materials, Inc.,

      

3.90%, 10/1/25

      500        527  

5.85%, 6/15/41

      100        120  

Intel Corp.,

      

2.70%, 12/15/22

      395        397  

3.70%, 7/29/25

      500        527  

4.00%, 12/15/32

      150        155  

4.80%, 10/1/41

      250        275  

4.90%, 7/29/45

      730        817  

KLA-Tencor Corp.,

      

4.65%, 11/1/24

      300        318  

Maxim Integrated Products, Inc.,

      

3.38%, 3/15/23

      50        49  

QUALCOMM, Inc.,

      

3.00%, 5/20/22

      100        101  

3.45%, 5/20/25

      1,000        1,017  

4.65%, 5/20/35

      760        803  

Texas Instruments, Inc.,

      

1.00%, 5/1/18

      300        299  
  

 

 

     

 

 

  
        6,867  
     

 

 

  

Software & Services - 1.0%

      

Autodesk, Inc.,

      

3.60%, 12/15/22

      500        501  

CA, Inc.,

      

2.88%, 8/15/18

      80        81  

4.50%, 8/15/23

      250        260  

Computer Sciences Corp.,

      

4.45%, 9/15/22

      200        207  

Equifax, Inc.,

      

3.30%, 12/15/22

      365        371  

Hewlett Packard Enterprise Co.,

      

3.60%, 10/15/20(6)

      805        819  

4.90%, 10/15/25(6)

      1,445        1,487  

6.35%, 10/15/45(6)

      200        202  

International Business Machines Corp.,

      

7.63%, 10/15/18

      1,045        1,154  

2.25%, 2/19/21

      1,000        999  

2.90%, 11/1/21

      235        240  

3.38%, 8/1/23

      425        437  

3.63%, 2/12/24

      375        391  

7.00%, 10/30/25

      385        495  

3.45%, 2/19/26

      490        501  

6.50%, 1/15/28

      100        127  

5.60%, 11/30/39

      275        335  

Microsoft Corp.,

      

1.00%, 5/1/18

      100        100  

4.20%, 6/1/19

      250        266  

2.00%, 11/3/20

      650        651  

1.55%, 8/8/21

      165        160  

2.65%, 11/3/22

      415        418  

3.63%, 12/15/23

      335        353  

3.13%, 11/3/25

      1,810        1,830  

2.40%, 8/8/26

      535        505  

3.50%, 2/12/35

      130        125  

4.20%, 11/3/35

      40        42  

4.50%, 10/1/40

      890        946  

3.50%, 11/15/42

      150        137  

4.88%, 12/15/43

      365        405  

4.45%, 11/3/45

      360        384  

 

NORTHERN FUNDS QUARTERLY REPORT    29    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Software & Services - 1.0% continued

      

3.70%, 8/8/46

    $ 950      $ 894  

4.00%, 2/12/55

      350        331  

3.95%, 8/8/56

      335        316  

Moody’s Corp.,

      

4.88%, 2/15/24

      250        270  

Oracle Corp.,

      

5.75%, 4/15/18

      150        159  

5.00%, 7/8/19

      15        16  

2.25%, 10/8/19

      30        30  

1.90%, 9/15/21

      2,305        2,253  

2.50%, 5/15/22

      280        278  

2.40%, 9/15/23

      565        547  

3.40%, 7/8/24

      2,075        2,114  

2.95%, 5/15/25

      1,000        980  

2.65%, 7/15/26

      1,230        1,168  

4.30%, 7/8/34

      10        10  

6.13%, 7/8/39

      290        365  

5.38%, 7/15/40

      470        546  

4.00%, 7/15/46

      500        478  

4.38%, 5/15/55

      25        25  

S&P Global, Inc.,

      

6.55%, 11/15/37

      100        119  

Symantec Corp.,

      

4.20%, 9/15/20

      140        144  

Xerox Corp.,

      

6.35%, 5/15/18

      410        432  

5.63%, 12/15/19

      120        129  

2.80%, 5/15/20

      290        285  

3.80%, 5/15/24

      130        125  

6.75%, 12/15/39

      60        60  
  

 

 

     

 

 

  
        27,003  
     

 

 

  

Supermarkets & Pharmacies - 0.4%

      

CVS Health Corp.,

      

1.90%, 7/20/18

      215        216  

2.25%, 8/12/19

      95        95  

4.13%, 5/15/21

      100        106  

2.75%, 12/1/22

      850        837  

3.88%, 7/20/25

      2,138        2,206  

5.30%, 12/5/43

      750        850  

5.13%, 7/20/45

      330        368  

Kroger (The) Co.,

      

6.15%, 1/15/20

      25        28  

2.95%, 11/1/21

      660        664  

3.40%, 4/15/22

      400        408  

2.65%, 10/15/26

      1,135        1,054  

7.50%, 4/1/31

      200        269  

6.90%, 4/15/38

      100        128  

Walgreen Co.,

      

5.25%, 1/15/19

      131        139  

Walgreens Boots Alliance, Inc.,

      

2.70%, 11/18/19

      100        101  

2.60%, 6/1/21

      1,500        1,491  

3.45%, 6/1/26

      375        368  

4.50%, 11/18/34

      50        50  

4.65%, 6/1/46

      635        644  
  

 

 

     

 

 

  
        10,022  
     

 

 

  

Tobacco - 0.3%

      

Altria Group, Inc.,

      

9.25%, 8/6/19

      56        66  

4.75%, 5/5/21

      725        790  

2.85%, 8/9/22

      100        100  

2.95%, 5/2/23

      100        100  

2.63%, 9/16/26

      95        90  

4.25%, 8/9/42

      135        133  

4.50%, 5/2/43

      250        254  

5.38%, 1/31/44

      370        427  

3.88%, 9/16/46

      440        406  

Philip Morris International, Inc.,

      

5.65%, 5/16/18

      875        922  

1.38%, 2/25/19

      130        129  

4.50%, 3/26/20

      250        268  

4.13%, 5/17/21

      250        267  

2.90%, 11/15/21

      300        304  

2.63%, 3/6/23

      100        98  

3.38%, 8/11/25

      250        254  

6.38%, 5/16/38

      280        359  

3.88%, 8/21/42

      150        139  

4.13%, 3/4/43

      100        97  

4.88%, 11/15/43

      100        108  

4.25%, 11/10/44

      350        346  

Reynolds American, Inc.,

      

3.25%, 6/12/20

      861        882  

7.25%, 6/15/37

      500        655  

6.15%, 9/15/43

      65        79  

5.85%, 8/15/45

      310        367  
  

 

 

     

 

 

  
        7,640  
     

 

 

  

 

FIXED INCOME INDEX FUNDS    30    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Transportation & Logistics - 0.2%

      

Cummins, Inc.,

      

4.88%, 10/1/43

    $ 90      $ 100  

FedEx Corp.,

      

8.00%, 1/15/19

      290        325  

2.30%, 2/1/20

      250        250  

2.70%, 4/15/23

      685        676  

4.00%, 1/15/24

      100        105  

3.90%, 2/1/35

      100        96  

3.88%, 8/1/42

      50        46  

4.10%, 4/15/43

      50        47  

JB Hunt Transport Services, Inc.,

      

3.85%, 3/15/24

      95        96  

PACCAR Financial Corp.,

      

1.45%, 3/9/18

      365        365  

1.75%, 8/14/18

      100        100  

2.20%, 9/15/19

      100        101  

2.25%, 2/25/21

      250        248  

Ryder System, Inc.,

      

2.50%, 3/1/18

      100        101  

2.55%, 6/1/19

      135        136  

2.65%, 3/2/20

      900        905  

United Parcel Service of America, Inc.,

      

8.38%, 4/1/20

      50        59  

United Parcel Service, Inc.,

      

5.50%, 1/15/18

      625        651  

2.45%, 10/1/22

      160        159  

6.20%, 1/15/38

      160        211  

3.63%, 10/1/42

      105        100  

3.40%, 11/15/46

      290        267  
  

 

 

     

 

 

  
        5,144  
     

 

 

  

Travel & Lodging - 0.1%

      

Hyatt Hotels Corp.,

      

3.38%, 7/15/23

      1,430        1,410  

Marriott International, Inc.,

      

6.75%, 5/15/18

      200        213  

3.00%, 3/1/19

      250        255  

3.38%, 10/15/20

      125        128  

3.13%, 10/15/21

      750        758  

3.25%, 9/15/22

      50        51  

3.13%, 2/15/23

      150        146  

3.13%, 6/15/26

      130        123  

Wyndham Worldwide Corp.,

      

2.50%, 3/1/18

      20        20  

4.25%, 3/1/22

      100        104  
  

 

 

     

 

 

  
        3,208  
     

 

 

  

Utilities - 2.2%

      

Alabama Power Co.,

      

6.13%, 5/15/38

      50        63  

5.50%, 3/15/41

      150        176  

4.10%, 1/15/42

      730        726  

3.85%, 12/1/42

      60        57  

Ameren Illinois Co.,

      

2.70%, 9/1/22

      500        501  

3.25%, 3/1/25

      500        505  

American Water Capital Corp.,

      

3.40%, 3/1/25

      35        36  

6.59%, 10/15/37

      125        167  

4.30%, 12/1/42

      75        79  

Appalachian Power Co.,

      

4.60%, 3/30/21

      250        268  

6.38%, 4/1/36

      1,000        1,228  

7.00%, 4/1/38

      75        99  

Arizona Public Service Co.,

      

8.75%, 3/1/19

      250        284  

4.50%, 4/1/42

      230        242  

4.70%, 1/15/44

      100        107  

Atmos Energy Corp.,

      

4.15%, 1/15/43

      250        244  

4.13%, 10/15/44

      75        75  

Baltimore Gas & Electric Co.,

      

3.50%, 11/15/21

      275        286  

2.40%, 8/15/26

      130        121  

Berkshire Hathaway Energy Co.,

      

2.40%, 2/1/20

      150        150  

6.13%, 4/1/36

      600        749  

6.50%, 9/15/37

      200        260  

CenterPoint Energy Houston Electric LLC,

      

2.25%, 8/1/22

      105        103  

4.50%, 4/1/44

      50        54  

CenterPoint Energy Resources Corp.,

      

6.00%, 5/15/18

      85        89  

6.63%, 11/1/37

      50        60  

5.85%, 1/15/41

      50        57  

 

NORTHERN FUNDS QUARTERLY REPORT    31    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Utilities - 2.2% continued

      

CMS Energy Corp.,

      

6.25%, 2/1/20

    $ 200      $ 221  

3.00%, 5/15/26

      40        38  

4.70%, 3/31/43

      301        315  

Commonwealth Edison Co.,

      

5.80%, 3/15/18

      300        315  

6.45%, 1/15/38

      200        262  

3.80%, 10/1/42

      90        86  

4.60%, 8/15/43

      100        108  

Connecticut Light & Power (The) Co.,

      

2.50%, 1/15/23

      420        411  

4.30%, 4/15/44

      15        15  

Consolidated Edison Co. of New York, Inc.,

      

4.45%, 6/15/20

      250        268  

3.30%, 12/1/24

      185        188  

5.30%, 3/1/35

      150        172  

5.85%, 3/15/36

      100        121  

6.20%, 6/15/36

      200        251  

6.75%, 4/1/38

      100        135  

5.50%, 12/1/39

      85        100  

5.70%, 6/15/40

      450        545  

4.45%, 3/15/44

      100        104  

Consolidated Edison, Inc.,

      

2.00%, 5/15/21

      85        83  

Constellation Energy Group, Inc.,

      

7.60%, 4/1/32

      100        131  

Dominion Gas Holdings LLC,

      

2.50%, 12/15/19

      280        283  

Dominion Resources, Inc.,

      

6.40%, 6/15/18

      20        21  

2.50%, 12/1/19

      90        91  

5.25%, 8/1/33

      250        270  

5.95%, 6/15/35

      750        867  

7.00%, 6/15/38

      20        26  

4.90%, 8/1/41

      35        37  

4.05%, 9/15/42

      100        93  

DTE Electric Co.,

      

5.60%, 6/15/18

      125        132  

2.65%, 6/15/22

      160        161  

6.63%, 6/1/36

      200        264  

5.70%, 10/1/37

      50        62  

3.95%, 6/15/42

      100        99  

DTE Energy Co.,

      

6.38%, 4/15/33

      50        61  

Duke Energy Carolinas LLC,

      

5.25%, 1/15/18

      200        208  

5.10%, 4/15/18

      65        68  

3.90%, 6/15/21

      50        53  

6.45%, 10/15/32

      106        134  

6.10%, 6/1/37

      150        185  

6.00%, 1/15/38

      35        43  

6.05%, 4/15/38

      175        221  

3.75%, 6/1/45

      350        333  

Duke Energy Corp.,

      

6.25%, 6/15/18

      100        106  

3.75%, 4/15/24

      100        103  

3.75%, 9/1/46

      120        108  

Duke Energy Florida LLC,

      

5.65%, 6/15/18

      225        238  

3.10%, 8/15/21

      25        26  

6.35%, 9/15/37

      50        64  

6.40%, 6/15/38

      285        376  

3.40%, 10/1/46

      290        258  

Duke Energy Florida Project Finance LLC,

      

2.54%, 9/1/29

      400        378  

Duke Energy Indiana, Inc.,

      

6.35%, 8/15/38

      25        33  

6.45%, 4/1/39

      225        295  

4.20%, 3/15/42

      100        99  

4.90%, 7/15/43

      1,000        1,108  

Duke Energy Ohio, Inc.,

      

3.80%, 9/1/23

      130        136  

Duke Energy Progress LLC,

      

5.30%, 1/15/19

      150        160  

3.00%, 9/15/21

      150        154  

2.80%, 5/15/22

      100        101  

4.10%, 3/15/43

      200        200  

Entergy Arkansas, Inc.,

      

3.05%, 6/1/23

      250        251  

Entergy Louisiana LLC,

      

6.50%, 9/1/18

      100        107  

5.40%, 11/1/24

      150        173  

3.05%, 6/1/31

      950        899  

Entergy Texas, Inc.,

      

7.13%, 2/1/19

      250        275  

 

FIXED INCOME INDEX FUNDS    32    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Utilities - 2.2% continued

      

Eversource Energy,

      

2.80%, 5/1/23

    $ 105      $ 103  

3.15%, 1/15/25

      100        99  

Exelon Corp.,

      

5.63%, 6/15/35

      75        83  

Florida Power & Light Co.,

      

5.65%, 2/1/37

      335        406  

5.95%, 2/1/38

      150        192  

5.96%, 4/1/39

      250        323  

5.69%, 3/1/40

      400        497  

4.13%, 2/1/42

      250        256  

4.05%, 6/1/42

      100        102  

Georgia Power Co.,

      

4.25%, 12/1/19

      500        531  

2.40%, 4/1/21

      75        75  

2.85%, 5/15/22

      100        100  

5.40%, 6/1/40

      250        286  

4.30%, 3/15/42

      60        61  

4.30%, 3/15/43

      100        101  

Great Plains Energy, Inc.,

      

5.29%, 6/15/22(2)

      220        239  

Interstate Power & Light Co.,

      

4.70%, 10/15/43

      50        52  

Kansas City Power & Light Co.,

      

3.15%, 3/15/23

      500        496  

5.30%, 10/1/41

      50        53  

KeySpan Corp.,

      

5.80%, 4/1/35

      425        482  

Louisville Gas & Electric Co.,

      

4.38%, 10/1/45

      475        499  

MidAmerican Energy Co.,

      

5.30%, 3/15/18

      500        521  

3.50%, 10/15/24

      100        103  

4.80%, 9/15/43

      100        111  

4.40%, 10/15/44

      150        159  

Midamerican Funding LLC,

      

6.93%, 3/1/29

      50        66  

Mississippi Power Co.,

      

4.25%, 3/15/42

      355        307  

National Fuel Gas Co.,

      

4.90%, 12/1/21

      150        159  

3.75%, 3/1/23

      250        244  

Nevada Power Co.,

      

6.65%, 4/1/36

      100        132  

6.75%, 7/1/37

      1,000        1,314  

5.45%, 5/15/41

      35        41  

NextEra Energy Capital Holdings, Inc.,

      

6.65%, 6/15/67(1)

      25        22  

NiSource Finance Corp.,

      

5.45%, 9/15/20

      200        218  

5.95%, 6/15/41

      100        119  

5.25%, 2/15/43

      100        111  

4.80%, 2/15/44

      80        84  

Northern States Power Co.,

      

5.25%, 3/1/18

      125        131  

6.25%, 6/1/36

      100        130  

5.35%, 11/1/39

      1,065        1,276  

NSTAR Electric Co.,

      

2.38%, 10/15/22

      100        98  

Oglethorpe Power Corp.,

      

5.38%, 11/1/40

      150        168  

4.20%, 12/1/42

      50        48  

4.55%, 6/1/44

      260        257  

Ohio Power Co.,

      

6.60%, 2/15/33

      100        123  

Oklahoma Gas & Electric Co.,

      

4.55%, 3/15/44

      65        70  

Oncor Electric Delivery Co. LLC,

      

6.80%, 9/1/18

      225        243  

4.10%, 6/1/22

      250        267  

7.25%, 1/15/33

      200        277  

7.50%, 9/1/38

      145        209  

Pacific Gas & Electric Co.,

      

4.25%, 5/15/21

      432        460  

3.25%, 9/15/21

      45        46  

2.45%, 8/15/22

      100        99  

3.75%, 2/15/24

      1,000        1,042  

6.05%, 3/1/34

      550        688  

5.80%, 3/1/37

      100        122  

5.40%, 1/15/40

      160        187  

3.75%, 8/15/42

      50        47  

4.60%, 6/15/43

      125        132  

4.30%, 3/15/45

      250        256  

PacifiCorp,

      

2.95%, 2/1/22

      100        102  

 

NORTHERN FUNDS QUARTERLY REPORT    33    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Utilities - 2.2% continued

      

5.25%, 6/15/35

    $ 50      $ 57  

6.10%, 8/1/36

      200        252  

6.25%, 10/15/37

      275        356  

6.00%, 1/15/39

      60        76  

PECO Energy Co.,

      

5.35%, 3/1/18

      25        26  

4.80%, 10/15/43

      100        112  

Potomac Electric Power Co.,

      

3.60%, 3/15/24

      150        155  

PPL Capital Funding, Inc.,

      

4.20%, 6/15/22

      50        53  

3.50%, 12/1/22

      1,035        1,058  

5.00%, 3/15/44

      100        106  

PPL Electric Utilities Corp.,

      

3.00%, 9/15/21

      500        507  

2.50%, 9/1/22

      50        49  

6.25%, 5/15/39

      275        356  

5.20%, 7/15/41

      35        41  

4.13%, 6/15/44

      100        101  

Progress Energy, Inc.,

      

7.75%, 3/1/31

      50        69  

PSEG Power LLC,

      

2.45%, 11/15/18

      35        35  

3.00%, 6/15/21

      315        316  

Public Service Co. of Colorado,

      

3.20%, 11/15/20

      1,000        1,032  

2.25%, 9/15/22

      100        98  

2.50%, 3/15/23

      150        148  

Public Service Co. of Oklahoma,

      

4.40%, 2/1/21

      50        53  

6.63%, 11/15/37

      125        159  

Public Service Electric & Gas Co.,

      

5.30%, 5/1/18

      575        603  

2.30%, 9/15/18

      165        167  

3.00%, 5/15/25

      500        500  

5.38%, 11/1/39

      250        294  

3.95%, 5/1/42

      50        50  

3.65%, 9/1/42

      30        29  

Puget Energy, Inc.,

      

3.65%, 5/15/25

      500        493  

Puget Sound Energy, Inc.,

      

5.48%, 6/1/35

      25        29  

6.27%, 3/15/37

      75        94  

5.80%, 3/15/40

      250        305  

5.64%, 4/15/41

      80        97  

San Diego Gas & Electric Co.,

      

3.00%, 8/15/21

      65        67  

3.60%, 9/1/23

      200        209  

6.13%, 9/15/37

      50        64  

4.50%, 8/15/40

      150        161  

3.95%, 11/15/41

      100        100  

4.30%, 4/1/42

      150        156  

SCANA Corp.,

      

4.75%, 5/15/21

      75        78  

4.13%, 2/1/22

      135        136  

Sempra Energy,

      

6.15%, 6/15/18

      400        424  

2.40%, 3/15/20

      250        250  

2.88%, 10/1/22

      60        59  

6.00%, 10/15/39

      250        298  

Sierra Pacific Power Co.,

      

3.38%, 8/15/23

      160        164  

South Carolina Electric & Gas Co.,

      

5.25%, 11/1/18

      116        123  

6.05%, 1/15/38

      265        328  

4.35%, 2/1/42

      115        117  

5.10%, 6/1/65

      50        55  

Southern (The) Co.,

      

2.45%, 9/1/18

      35        35  

2.35%, 7/1/21

      2,000        1,966  

3.25%, 7/1/26

      1,000        973  

Southern California Edison Co.,

      

5.50%, 8/15/18

      100        106  

3.88%, 6/1/21

      150        159  

2.40%, 2/1/22

      180        179  

6.65%, 4/1/29

      300        372  

6.00%, 1/15/34

      100        124  

5.35%, 7/15/35

      586        687  

5.55%, 1/15/37

      275        329  

5.95%, 2/1/38

      100        126  

6.05%, 3/15/39

      50        64  

5.50%, 3/15/40

      150        180  

3.90%, 3/15/43

      150        148  

Southern California Gas Co.,

      

5.75%, 11/15/35

      150        182  

3.75%, 9/15/42

      575        562  

 

FIXED INCOME INDEX FUNDS    34    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Utilities - 2.2% continued

      

Southern Co. Gas Capital Corp.,

      

3.50%, 9/15/21

    $ 1,150      $ 1,182  

5.88%, 3/15/41

      100        116  

Southern Power Co.,

      

2.38%, 6/1/20

      155        154  

5.25%, 7/15/43

      60        60  

Southwestern Electric Power Co.,

      

5.88%, 3/1/18

      400        419  

3.55%, 2/15/22

      150        155  

2.75%, 10/1/26

      130        123  

6.20%, 3/15/40

      200        240  

Southwestern Public Service Co.,

      

6.00%, 10/1/36

      100        120  

Tampa Electric Co.,

      

2.60%, 9/15/22

      220        216  

4.10%, 6/15/42

      50        48  

Union Electric Co.,

      

3.90%, 9/15/42

      50        49  

Virginia Electric & Power Co.,

      

1.20%, 1/15/18

      75        75  

5.40%, 4/30/18

      425        446  

2.95%, 1/15/22

      95        96  

6.00%, 1/15/36

      37        46  

6.00%, 5/15/37

      15        19  

8.88%, 11/15/38

      300        478  

4.65%, 8/15/43

      150        163  

4.45%, 2/15/44

      75        79  

Westar Energy, Inc.,

      

4.13%, 3/1/42

      215        213  

4.10%, 4/1/43

      60        60  

4.63%, 9/1/43

      150        161  

Western Massachusetts Electric Co.,

      

3.50%, 9/15/21

      85        87  

Wisconsin Electric Power Co.,

      

5.70%, 12/1/36

      150        183  

Wisconsin Power & Light Co.,

      

2.25%, 11/15/22

      300        292  

4.10%, 10/15/44

      100        101  

Wisconsin Public Service Corp.,

      

4.75%, 11/1/44

      100        110  

Xcel Energy, Inc.,

      

4.70%, 5/15/20

      100        106  

6.50%, 7/1/36

      100        126  
  

 

 

     

 

 

  
        57,820  
     

 

 

  

Waste & Environment Services & Equipment - 0.1%

      

Republic Services, Inc.,

      

3.80%, 5/15/18

      165        170  

5.50%, 9/15/19

      220        239  

5.00%, 3/1/20

      400        432  

5.25%, 11/15/21

      500        556  

3.55%, 6/1/22

      100        104  

3.20%, 3/15/25

      290        288  

Waste Management, Inc.,

      

6.10%, 3/15/18

      250        263  

2.90%, 9/15/22

      110        110  

3.13%, 3/1/25

      1,000        1,001  

3.90%, 3/1/35

      125        124  

4.10%, 3/1/45

      500        495  
  

 

 

     

 

 

  
        3,782  
     

 

 

  

Wireless Telecommunications Services - 0.9%

      

Ameritech Capital Funding Corp.,

      

6.45%, 1/15/18

      50        52  

AT&T, Inc.,

      

1.75%, 1/15/18

      55        55  

2.80%, 2/17/21

      310        308  

4.45%, 5/15/21

      625        661  

3.80%, 3/15/22

      505        518  

3.90%, 3/11/24

      760        769  

4.45%, 4/1/24

      645        672  

3.40%, 5/15/25

      2,025        1,952  

4.13%, 2/17/26

      905        916  

6.35%, 3/15/40

      45        51  

6.00%, 8/15/40

      1,095        1,204  

5.35%, 9/1/40

      333        342  

5.55%, 8/15/41

      315        328  

4.80%, 6/15/44

      250        236  

4.50%, 3/9/48

      1,406        1,263  

New Cingular Wireless Services, Inc.,

      

8.75%, 3/1/31

      400        572  

Verizon Communications, Inc.,

      

4.50%, 9/15/20

      500        535  

4.60%, 4/1/21

      225        241  

3.00%, 11/1/21

      365        368  

 

NORTHERN FUNDS QUARTERLY REPORT    35    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CORPORATE BONDS - 24.1% continued

      

Wireless Telecommunications Services - 0.9% continued

      

3.50%, 11/1/21

    $ 15      $ 16  

5.15%, 9/15/23

      3,750        4,147  

2.63%, 8/15/26

      250        230  

6.40%, 9/15/33

      1,065        1,285  

5.05%, 3/15/34

      35        37  

4.40%, 11/1/34

      85        84  

6.25%, 4/1/37

      810        960  

6.40%, 2/15/38

      865        1,044  

7.35%, 4/1/39

      1,005        1,297  

6.00%, 4/1/41

      445        511  

5.01%, 8/21/54

      1,150        1,144  

4.67%, 3/15/55

      1,065        1,000  
  

 

 

     

 

 

  
        22,798  
     

 

 

  

Wireline Telecommunications Services - 0.1%

      

Pacific Bell Telephone Co.,

      

7.13%, 3/15/26

      1,390        1,687  

Qwest Corp.,

      

6.88%, 9/15/33

      98        94  
  

 

 

     

 

 

  
        1,781  
     

 

 

  

Total Corporate Bonds

(Cost $620,249)

         630,839  
     

 

 

  

FOREIGN ISSUER BONDS - 8.8%

      

Advertising & Marketing - 0.0%

      

WPP Finance 2010,

      

3.63%, 9/7/22

      100        102  
  

 

 

     

 

 

  

Auto Parts Manufacturing - 0.0%

      

Delphi Automotive PLC,

      

4.25%, 1/15/26

      1,000        1,035  
  

 

 

     

 

 

  

Banks - 1.0%

      

Australia & New Zealand Banking Group Ltd.,

      

2.25%, 6/13/19

      500        502  

2.30%, 6/1/21

      250        246  

Barclays Bank PLC,

      

5.14%, 10/14/20

      500        528  

BNP Paribas/BNP Paribas U.S. Medium-Term Note Program LLC,

      

3.25%, 3/3/23

      250        252  

BPCE S.A.,

      

2.50%, 7/15/19

      500        503  

2.65%, 2/3/21

      250        250  

4.00%, 4/15/24

      250        259  

Canadian Imperial Bank of Commerce,

      

1.55%, 1/23/18

      150        150  

Commonwealth Bank of Australia,

      

2.50%, 9/20/18

      250        253  

2.25%, 3/13/19

      250        251  

2.30%, 3/12/20

      1,000        995  

Cooperatieve Rabobank U.A.,

      

1.70%, 3/19/18

      125        125  

1.38%, 8/9/19

      500        492  

4.50%, 1/11/21

      1,000        1,075  

3.88%, 2/8/22

      750        792  

3.95%, 11/9/22

      250        257  

3.38%, 5/21/25

      500        507  

5.75%, 12/1/43

      250        290  

Credit Suisse A.G.,

      

6.00%, 2/15/18

      250        260  

1.70%, 4/27/18

      500        499  

5.30%, 8/13/19

      1,000        1,079  

5.40%, 1/14/20

      500        536  

3.00%, 10/29/21

      1,250        1,262  

3.63%, 9/9/24

      750        755  

Credit Suisse Group Funding Guernsey Ltd.,

      

4.55%, 4/17/26

      650        675  

4.88%, 5/15/45

      500        513  

Deutsche Bank A.G.,

      

2.50%, 2/13/19

      250        248  

National Australia Bank Ltd.,

      

1.88%, 7/23/18

      250        250  

2.00%, 1/14/19

      500        500  

Santander UK PLC,

      

3.05%, 8/23/18

      200        203  

2.50%, 3/14/19

      90        90  

2.38%, 3/16/20

      750        746  

4.00%, 3/13/24

      250        260  

Skandinaviska Enskilda Banken AB,

      

1.88%, 9/13/21

      980        948  

Sumitomo Mitsui Banking Corp.,

      

2.50%, 7/19/18

      250        252  

2.25%, 7/11/19

      785        784  

2.45%, 1/16/20

      510        508  

3.00%, 1/18/23

      210        208  

3.65%, 7/23/25

      500        510  

 

FIXED INCOME INDEX FUNDS    36    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Banks - 1.0% continued

      

Svenska Handelsbanken AB,

      

1.63%, 3/21/18

    $ 900      $ 899  

2.50%, 1/25/19

      250        253  

2.45%, 3/30/21

      250        248  

1.88%, 9/7/21

      275        265  

Toronto-Dominion Bank (The),

      

1.40%, 4/30/18

      165        165  

1.75%, 7/23/18

      370        370  

2.63%, 9/10/18

      200        203  

2.25%, 11/5/19

      270        272  

2.13%, 4/7/21

      2,000        1,969  

Westpac Banking Corp.,

      

2.25%, 7/30/18

      250        252  

2.25%, 1/17/19

      250        251  

4.88%, 11/19/19

      250        268  

2.30%, 5/26/20

      350        348  

2.10%, 5/13/21

      365        357  

2.00%, 8/19/21

      250        243  

2.70%, 8/19/26

      1,000        948  
  

 

 

     

 

 

  
        26,124  
     

 

 

  

Chemicals - 0.2%

      

Agrium, Inc.,

      

3.15%, 10/1/22

      200        199  

3.38%, 3/15/25

      1,135        1,099  

7.13%, 5/23/36

      100        125  

6.13%, 1/15/41

      100        114  

5.25%, 1/15/45

      250        260  

LYB International Finance B.V.,

      

4.00%, 7/15/23

      185        193  

5.25%, 7/15/43

      565        608  

LyondellBasell Industries N.V.,

      

5.00%, 4/15/19

      1,500        1,585  

4.63%, 2/26/55

      35        33  

Potash Corp. of Saskatchewan, Inc.,

      

4.88%, 3/30/20

      100        106  

3.00%, 4/1/25

      180        170  

5.88%, 12/1/36

      50        55  

5.63%, 12/1/40

      250        270  
  

 

 

     

 

 

  
        4,817  
     

 

 

  

Commercial Finance - 0.0%

      

AerCap Ireland Capital Ltd./AerCap Global Aviation Trust,

      

3.95%, 2/1/22

      250        252  
  

 

 

     

 

 

  

Communications Equipment - 0.0%

      

Telefonaktiebolaget LM Ericsson,

      

4.13%, 5/15/22

      150        151  
  

 

 

     

 

 

  

Diversified Banks - 0.8%

      

Bank of Montreal,

      

1.45%, 4/9/18

      250        249  

1.80%, 7/31/18

      550        550  

2.38%, 1/25/19

      35        35  

1.50%, 7/18/19

      335        331  

2.10%, 12/12/19

      180        180  

2.55%, 11/6/22

      300        296  

Bank of Nova Scotia (The),

      

2.05%, 6/5/19

      700        701  

2.13%, 9/11/19

      225        226  

1.85%, 4/14/20

      200        197  

4.38%, 1/13/21

      250        267  

2.45%, 3/22/21

      735        732  

1.88%, 4/26/21

      387        378  

Barclays PLC,

      

3.25%, 1/12/21

      1,000        1,001  

3.20%, 8/10/21

      725        717  

3.65%, 3/16/25

      700        677  

5.25%, 8/17/45

      200        214  

BNP Paribas S.A.,

      

2.45%, 3/17/19

      110        111  

5.00%, 1/15/21

      1,000        1,091  

HSBC Holdings PLC,

      

5.10%, 4/5/21

      1,100        1,189  

2.95%, 5/25/21

      1,600        1,599  

4.88%, 1/14/22

      500        540  

4.00%, 3/30/22

      500        517  

6.50%, 9/15/37

      300        372  

6.80%, 6/1/38

      150        190  

5.25%, 3/14/44

      1,000        1,071  

Mitsubishi UFJ Financial Group, Inc.,

      

2.19%, 9/13/21

      820        797  

Mizuho Financial Group, Inc.,

      

2.27%, 9/13/21

      470        456  

Royal Bank of Canada,

      

2.20%, 7/27/18

      350        352  

1.80%, 7/30/18

      250        251  

2.00%, 10/1/18

      320        322  

2.15%, 3/15/19

      500        502  

1.63%, 4/15/19

      250        249  

 

NORTHERN FUNDS QUARTERLY REPORT    37    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Diversified Banks - 0.8% continued

      

2.20%, 9/23/19

    $ 275      $ 277  

1.88%, 2/5/20

      325        323  

2.15%, 3/6/20

      500        497  

2.10%, 10/14/20

      250        249  

2.50%, 1/19/21

      200        201  

2.30%, 3/22/21

      250        248  

Societe Generale S.A.,

      

2.63%, 10/1/18

      250        253  

Sumitomo Mitsui Financial Group, Inc.,

      

2.06%, 7/14/21

      495        479  

2.63%, 7/14/26

      1,000        929  
  

 

 

     

 

 

  
        19,816  
     

 

 

  

Electrical Equipment Manufacturing - 0.0%

      

Johnson Controls International PLC,

      

5.00%, 3/30/20

      155        167  

5.70%, 3/1/41

      250        283  

4.63%, 7/2/44(2)

      465        462  

Tyco Electronics Group S.A.,

      

3.50%, 2/3/22

      125        129  

7.13%, 10/1/37

      50        65  
  

 

 

     

 

 

  
        1,106  
     

 

 

  

Exploration & Production - 0.2%

      

Burlington Resources Finance Co.,

      

7.20%, 8/15/31

      320        412  

7.40%, 12/1/31

      120        157  

Canadian Natural Resources Ltd.,

      

1.75%, 1/15/18

      80        80  

3.45%, 11/15/21

      665        680  

3.80%, 4/15/24

      175        174  

3.90%, 2/1/25

      760        762  

7.20%, 1/15/32

      15        18  

6.45%, 6/30/33

      135        152  

6.75%, 2/1/39

      200        233  

CNOOC Finance 2013 Ltd.,

      

3.00%, 5/9/23

      250        241  

ConocoPhillips Canada Funding Co. I,

      

5.95%, 10/15/36

      220        258  

Encana Corp.,

      

6.63%, 8/15/37

      180        194  

Nexen Energy ULC,

      

6.20%, 7/30/19

      215        234  

7.88%, 3/15/32

      75        100  

5.88%, 3/10/35

      210        236  

6.40%, 5/15/37

      390        462  
  

 

 

     

 

 

  
        4,393  
     

 

 

  

Financial Services - 0.3%

      

GE Capital International Funding Co. Unlimited Co.,

      

3.37%, 11/15/25

      500        508  

4.42%, 11/15/35

      3,000        3,144  

Invesco Finance PLC,

      

4.00%, 1/30/24

      100        104  

Nomura Holdings, Inc.,

      

6.70%, 3/4/20

      386        431  

UBS A.G.,

      

2.38%, 8/14/19

      2,000        2,010  

4.88%, 8/4/20

      400        433  
  

 

 

     

 

 

  
        6,630  
     

 

 

  

Food & Beverage - 0.0%

      

Diageo Capital PLC,

      

1.13%, 4/29/18

      275        273  

3.88%, 4/29/43

      175        167  
  

 

 

     

 

 

  
        440  
     

 

 

  

Government Agencies - 0.1%

      

Japan Bank for International Cooperation,

      

1.75%, 11/13/18

      500        499  

1.75%, 5/29/19

      1,000        994  

1.88%, 4/20/21

      800        781  
  

 

 

     

 

 

  
        2,274  
     

 

 

  

Government Development Banks - 0.8%

      

Export Development Canada,

      

1.50%, 10/3/18

      250        251  

1.50%, 5/26/21

      1,000        976  

Export-Import Bank of Korea,

      

4.00%, 1/29/21

      1,000        1,046  

2.63%, 5/26/26

      1,000        943  

Korea Development Bank (The),

      

3.00%, 3/17/19

      200        204  

3.00%, 9/14/22

      215        217  

Kreditanstalt fuer Wiederaufbau,

      

4.38%, 3/15/18

      375        389  

1.88%, 4/1/19

      1,000        1,007  

 

FIXED INCOME INDEX FUNDS    38    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Government Development Banks - 0.8% continued

      

1.75%, 10/15/19

    $ 1,000      $ 1,001  

4.00%, 1/27/20

      1,500        1,599  

1.88%, 6/30/20

      3,000        2,994  

2.75%, 9/8/20

      500        514  

2.75%, 10/1/20

      1,000        1,029  

2.63%, 1/25/22

      900        917  

2.00%, 10/4/22

      250        245  

2.13%, 1/17/23

      1,000        985  

2.00%, 5/2/25

      1,500        1,435  

0.00%, 4/18/36(7)

      500        267  

Landwirtschaftliche Rentenbank,

      

1.00%, 4/4/18

      500        498  

1.88%, 9/17/18

      200        202  

1.38%, 10/23/19

      140        139  

2.38%, 6/10/25

      1,000        982  

Oesterreichische Kontrollbank A.G.,

      

1.63%, 3/12/19

      300        300  

1.13%, 4/26/19

      350        345  

2.38%, 10/1/21

      1,000        1,004  

Svensk Exportkredit AB,

      

1.88%, 6/23/20

      500        497  

1.75%, 3/10/21

      500        491  
  

 

 

     

 

 

  
        20,477  
     

 

 

  

Government Local - 0.0%

      

Japan Finance Organization for Municipalities,

      

4.00%, 1/13/21

      500        526  
  

 

 

     

 

 

  

Government Regional - 0.3%

      

Hydro-Quebec,

      

9.40%, 2/1/21

      200        249  

Province of British Columbia Canada,

      

2.65%, 9/22/21

      150        153  

2.00%, 10/23/22

      300        294  

7.25%, 9/1/36

      175        261  

Province of Manitoba Canada,

      

1.75%, 5/30/19

      100        100  

9.25%, 4/1/20

      150        181  

2.10%, 9/6/22

      100        98  

Province of Nova Scotia Canada,

      

8.25%, 7/30/22

      350        438  

Province of Ontario Canada,

      

1.20%, 2/14/18

      250        249  

1.65%, 9/27/19

      250        249  

4.00%, 10/7/19

      835        882  

4.40%, 4/14/20

      500        539  

2.45%, 6/29/22

      500        500  

2.50%, 4/27/26

      500        482  

Province of Quebec Canada,

      

4.63%, 5/14/18

      350        365  

2.75%, 8/25/21

      100        102  

2.63%, 2/13/23

      875        877  

7.50%, 7/15/23

      300        378  

7.13%, 2/9/24

      100        125  

2.88%, 10/16/24

      250        251  

7.50%, 9/15/29

      375        525  

Province of Saskatchewan Canada,

      

8.50%, 7/15/22

      200        255  
  

 

 

     

 

 

  
        7,553  
     

 

 

  

Hardware - 0.0%

      

Seagate HDD Cayman,

      

4.88%, 6/1/27

      370        334  

5.75%, 12/1/34

      142        121  
  

 

 

     

 

 

  
        455  
     

 

 

  

Integrated Oils - 0.9%

      

BP Capital Markets PLC,

      

4.75%, 3/10/19

      155        164  

2.52%, 1/15/20

      290        292  

2.50%, 11/6/22

      1,035        1,014  

2.75%, 5/10/23

      1,140        1,119  

3.99%, 9/26/23

      120        126  

3.81%, 2/10/24

      540        561  

3.54%, 11/4/24

      650        660  

CNOOC Nexen Finance 2014 ULC,

      

4.25%, 4/30/24

      300        307  

Ecopetrol S.A.,

      

4.13%, 1/16/25

      1,000        937  

Husky Energy, Inc.,

      

6.15%, 6/15/19

      50        54  

7.25%, 12/15/19

      10        11  

4.00%, 4/15/24

      100        102  

Petro-Canada,

      

6.05%, 5/15/18

      50        53  

5.95%, 5/15/35

      430        506  

6.80%, 5/15/38

      130        169  

Petroleos Mexicanos,

      

3.50%, 7/18/18

      85        86  

 

NORTHERN FUNDS QUARTERLY REPORT    39    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Integrated Oils - 0.9% continued

      

3.50%, 7/23/20

    $ 2,900      $ 2,838  

5.50%, 1/21/21

      570        586  

4.88%, 1/24/22

      4,000        4,012  

3.50%, 1/30/23

      75        69  

6.63%, 6/15/35

      200        197  

6.50%, 6/2/41

      190        178  

5.63%, 1/23/46

      1,000        830  

Shell International Finance B.V.,

      

1.38%, 5/10/19

      745        738  

2.13%, 5/11/20

      280        280  

2.38%, 8/21/22

      1,140        1,120  

2.25%, 1/6/23

      560        541  

3.25%, 5/11/25

      260        260  

2.88%, 5/10/26

      80        77  

6.38%, 12/15/38

      870        1,122  

3.63%, 8/21/42

      200        181  

4.55%, 8/12/43

      120        125  

4.38%, 5/11/45

      330        334  

Statoil ASA,

      

5.25%, 4/15/19

      415        446  

2.75%, 11/10/21

      895        904  

7.75%, 6/15/23

      100        126  

3.70%, 3/1/24

      115        120  

3.25%, 11/10/24

      125        127  

7.15%, 1/15/29

      250        333  

4.25%, 11/23/41

      350        349  

Suncor Energy, Inc.,

      

6.10%, 6/1/18

      480        508  

7.15%, 2/1/32

      200        254  

5.95%, 12/1/34

      50        59  

Total Capital International S.A.,

      

2.10%, 6/19/19

      1,000        1,005  

2.75%, 6/19/21

      325        329  

2.88%, 2/17/22

      490        494  

3.70%, 1/15/24

      125        131  
  

 

 

     

 

 

  
        24,834  
     

 

 

  

Internet Media - 0.0%

      

Baidu, Inc.,

      

3.25%, 8/6/18

      210        213  

3.50%, 11/28/22

      200        200  
  

 

 

     

 

 

  
        413  
     

 

 

  

Life Insurance - 0.0%

      

AXA S.A.,

      

8.60%, 12/15/30

      75        103  
  

 

 

     

 

 

  

Machinery Manufacturing - 0.0%

      

Ingersoll-Rand Luxembourg Finance S.A.,

      

4.65%, 11/1/44

      35        36  
  

 

 

     

 

 

  

Medical Equipment & Devices Manufacturing - 0.1%

      

Koninklijke Philips N.V.,

      

3.75%, 3/15/22

      1,250        1,303  

6.88%, 3/11/38

      225        278  

5.00%, 3/15/42

      100        102  
  

 

 

     

 

 

  
        1,683  
     

 

 

  

Metals & Mining - 0.1%

      

Barrick Gold Corp.,

      

4.10%, 5/1/23

      93        95  

BHP Billiton Finance USA Ltd.,

      

2.05%, 9/30/18

      200        201  

6.50%, 4/1/19

      200        219  

3.25%, 11/21/21

      250        258  

4.13%, 2/24/42

      600        590  

Goldcorp, Inc.,

      

2.13%, 3/15/18

      200        200  

Rio Tinto Alcan, Inc.,

      

6.13%, 12/15/33

      100        111  

5.75%, 6/1/35

      100        107  

Rio Tinto Finance USA Ltd.,

      

9.00%, 5/1/19

      228        263  

Rio Tinto Finance USA PLC,

      

2.88%, 8/21/22

      145        146  

4.75%, 3/22/42

      150        161  

4.13%, 8/21/42

      300        295  

Vale Overseas Ltd.,

      

4.38%, 1/11/22

      155        152  
  

 

 

     

 

 

  
        2,798  
     

 

 

  

Pharmaceuticals - 0.6%

      

Actavis Funding SCS,

      

2.45%, 6/15/19

      125        125  

3.00%, 3/12/20

      1,500        1,521  

3.85%, 6/15/24

      2,000        2,018  

3.80%, 3/15/25

      1,180        1,181  

4.85%, 6/15/44

      870        863  

4.75%, 3/15/45

      360        353  

 

FIXED INCOME INDEX FUNDS    40    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Pharmaceuticals - 0.6% continued

      

AstraZeneca PLC,

      

1.95%, 9/18/19

    $ 225      $ 225  

2.38%, 11/16/20

      300        299  

6.45%, 9/15/37

      450        582  

4.00%, 9/18/42

      250        237  

GlaxoSmithKline Capital PLC,

      

2.85%, 5/8/22

      1,000        1,008  

Mylan N.V.,

      

3.15%, 6/15/21(6)

      1,250        1,227  

3.95%, 6/15/26(6)

      285        267  

Novartis Securities Investment Ltd.,

      

5.13%, 2/10/19

      850        910  

Perrigo Finance Unlimited Co.,

      

3.50%, 3/15/21

      250        253  

Sanofi,

      

1.25%, 4/10/18

      40        40  

4.00%, 3/29/21

      500        532  

Shire Acquisitions Investments Ireland DAC,

      

2.40%, 9/23/21

      1,000        966  

Teva Pharmaceutical Finance Co. B.V.,

      

3.65%, 11/10/21

      156        158  

Teva Pharmaceutical Finance IV B.V.,

      

3.65%, 11/10/21

      210        213  

Teva Pharmaceutical Finance Netherlands III B.V.,

      

2.20%, 7/21/21

      1,540        1,473  

3.15%, 10/1/26

      1,000        922  
  

 

 

     

 

 

  
        15,373  
     

 

 

  

Pipeline - 0.1%

      

Enbridge, Inc.,

      

4.00%, 10/1/23

      150        152  

4.50%, 6/10/44

      40        37  

TransCanada PipeLines Ltd.,

      

3.13%, 1/15/19

      235        240  

9.88%, 1/1/21

      175        220  

5.85%, 3/15/36

      200        239  

6.20%, 10/15/37

      840        1,042  

6.35%, 5/15/67(1)

      100        83  
  

 

 

     

 

 

  
        2,013  
     

 

 

  

Property & Casualty Insurance - 0.1%

      

Aon PLC,

      

4.25%, 12/12/42

      450        422  

Aspen Insurance Holdings Ltd.,

      

4.65%, 11/15/23

      270        278  

Endurance Specialty Holdings Ltd.,

      

7.00%, 7/15/34

      100        121  

Trinity Acquisition PLC,

      

6.13%, 8/15/43

      75        80  

Willis Group Holdings PLC,

      

5.75%, 3/15/21

      450        492  

XLIT Ltd.,

      

4.45%, 3/31/25

      210        208  

6.25%, 5/15/27

      50        59  

5.25%, 12/15/43

      250        258  
  

 

 

     

 

 

  
        1,918  
     

 

 

  

Publishing & Broadcasting - 0.0%

      

Grupo Televisa S.A.B.,

      

6.63%, 1/15/40

      570        597  
  

 

 

     

 

 

  

Railroad - 0.1%

      

Canadian National Railway Co.,

      

5.55%, 3/1/19

      500        538  

2.85%, 12/15/21

      85        86  

2.75%, 3/1/26

      250        244  

6.90%, 7/15/28

      25        33  

6.25%, 8/1/34

      15        20  

6.20%, 6/1/36

      40        52  

6.38%, 11/15/37

      20        26  

3.50%, 11/15/42

      150        139  

Canadian Pacific Railway Co.,

      

6.50%, 5/15/18

      50        53  

5.95%, 5/15/37

      710        846  
  

 

 

     

 

 

  
        2,037  
     

 

 

  

Software & Services - 0.0%

      

Thomson Reuters Corp.,

      

3.95%, 9/30/21

      200        208  

5.50%, 8/15/35

      150        159  

5.65%, 11/23/43

      285        314  
  

 

 

     

 

 

  
        681  
     

 

 

  

Sovereigns - 1.0%

      

Canada Government International Bond,

      

1.63%, 2/27/19

      165        166  

Chile Government International Bond,

      

3.25%, 9/14/21

      400        413  

 

NORTHERN FUNDS QUARTERLY REPORT    41    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Sovereigns - 1.0% continued

      

3.13%, 1/21/26

    $ 500      $ 493  

3.63%, 10/30/42

      200        186  

Colombia Government International Bond,

      

7.38%, 3/18/19

      250        278  

4.38%, 7/12/21

      1,000        1,047  

4.50%, 1/28/26

      500        515  

7.38%, 9/18/37

      350        425  

6.13%, 1/18/41

      250        270  

5.63%, 2/26/44

      500        515  

5.00%, 6/15/45

      500        474  

Hungary Government International Bond,

      

6.38%, 3/29/21

      1,000        1,120  

Israel Government International Bond,

      

5.13%, 3/26/19

      250        269  

4.00%, 6/30/22

      250        265  

4.50%, 1/30/43

      200        199  

Korea International Bond,

      

7.13%, 4/16/19

      150        168  

3.88%, 9/11/23

      200        214  

Mexico Government International Bond,

      

5.95%, 3/19/19

      500        540  

5.13%, 1/15/20

      1,360        1,460  

3.50%, 1/21/21

      1,000        1,016  

4.00%, 10/2/23

      150        150  

7.50%, 4/8/33

      100        126  

6.75%, 9/27/34

      750        889  

6.05%, 1/11/40

      820        887  

4.75%, 3/8/44

      1,000        909  

5.55%, 1/21/45

      500        511  

4.60%, 1/23/46

      500        449  

4.35%, 1/15/47

      500        429  

Panama Government International Bond,

      

4.00%, 9/22/24

      575        585  

3.75%, 3/16/25

      500        496  

6.70%, 1/26/36

      550        667  

Peruvian Government International Bond,

      

7.35%, 7/21/25

      500        642  

6.55%, 3/14/37

      500        628  

5.63%, 11/18/50

      600        680  

Philippine Government International Bond,

      

4.20%, 1/21/24

      1,000        1,075  

10.63%, 3/16/25

      500        768  

5.50%, 3/30/26

      200        236  

7.75%, 1/14/31

      500        703  

6.38%, 10/23/34

      500        650  

5.00%, 1/13/37

      500        564  

Republic of Italy Government International Bond,

      

5.38%, 6/15/33

      175        187  

Republic of Poland Government International Bond,

      

6.38%, 7/15/19

      400        444  

5.13%, 4/21/21

      150        164  

3.00%, 3/17/23

      1,000        980  

4.00%, 1/22/24

      150        153  

Republic of South Africa Government International Bond,

      

6.88%, 5/27/19

      275        297  

5.38%, 7/24/44

      500        492  

Uruguay Government International Bond,

      

7.63%, 3/21/36

      250        312  

4.13%, 11/20/45

      400        329  
  

 

 

     

 

 

  
        25,435  
     

 

 

  

Supermarkets & Pharmacies - 0.0%

      

Koninklijke Ahold Delhaize N.V.,

      

5.70%, 10/1/40

      400        443  
  

 

 

     

 

 

  

Supranationals - 1.7%

      

African Development Bank,

      

0.88%, 3/15/18

      250        249  

1.13%, 3/4/19

      165        163  

1.00%, 5/15/19

      1,000        986  

1.13%, 9/20/19

      375        369  

1.25%, 7/26/21

      500        480  

Asian Development Bank,

      

0.88%, 4/26/18

      395        393  

1.13%, 6/5/18

      1,000        997  

5.59%, 7/16/18

      50        53  

1.75%, 9/11/18

      150        151  

1.38%, 1/15/19

      250        249  

1.75%, 3/21/19

      1,500        1,508  

1.88%, 4/12/19

      150        151  

 

FIXED INCOME INDEX FUNDS    42    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Supranationals - 1.7% continued

      

1.50%, 1/22/20

    $ 250      $ 249  

1.38%, 3/23/20

      250        247  

2.13%, 11/24/21

      100        99  

2.00%, 4/24/26

      1,000        948  

Corp. Andina de Fomento,

      

4.38%, 6/15/22

      613        650  

Council Of Europe Development Bank,

      

1.75%, 11/14/19

      1,000        1,000  

European Bank for Reconstruction & Development,

      

1.00%, 6/15/18

      150        149  

1.75%, 6/14/19

      200        200  

1.75%, 11/26/19

      1,000        1,002  

1.50%, 3/16/20

      250        248  

1.13%, 8/24/20

      500        488  

European Investment Bank,

      

1.00%, 3/15/18

      2,000        1,992  

1.25%, 5/15/18

      2,500        2,496  

1.00%, 6/15/18

      1,650        1,642  

1.63%, 12/18/18

      400        401  

1.88%, 3/15/19

      250        252  

1.25%, 12/16/19

      1,000        984  

1.63%, 3/16/20

      250        248  

2.50%, 4/15/21

      1,500        1,519  

2.13%, 10/15/21

      200        199  

3.25%, 1/29/24

      250        261  

2.50%, 10/15/24

      1,000        995  

2.13%, 4/13/26

      1,500        1,431  

4.88%, 2/15/36

      200        249  

Inter-American Development Bank,

      

0.88%, 3/15/18

      500        498  

1.75%, 8/24/18

      250        252  

4.25%, 9/10/18

      400        419  

1.13%, 9/12/19

      200        197  

3.88%, 9/17/19

      600        635  

1.75%, 10/15/19

      1,000        1,003  

3.88%, 2/14/20

      500        532  

1.88%, 6/16/20

      1,000        1,000  

1.88%, 3/15/21

      250        248  

1.25%, 9/14/21

      550        530  

3.00%, 2/21/24

      150        155  

2.13%, 1/15/25

      500        484  

2.00%, 6/2/26

      1,000        946  

3.88%, 10/28/41

      200        217  

International Bank for Reconstruction & Development,

      

1.00%, 6/15/18

      2,000        1,992  

1.88%, 3/15/19

      2,500        2,517  

1.38%, 3/30/20

      1,500        1,483  

2.25%, 6/24/21

      500        503  

1.38%, 9/20/21

      2,000        1,937  

1.63%, 2/10/22

      1,000        972  

2.50%, 11/25/24

      600        599  

2.13%, 3/3/25

      700        674  

2.50%, 7/29/25

      500        496  

4.75%, 2/15/35

      25        30  

International Finance Corp.,

      

0.88%, 6/15/18

      500        497  

1.25%, 7/16/18

      1,000        999  

1.75%, 9/16/19

      250        251  

1.13%, 7/20/21

      1,000        959  

Nordic Investment Bank,

      

1.88%, 6/14/19

      200        201  

1.50%, 9/29/20

      200        198  
  

 

 

     

 

 

  
        45,122  
     

 

 

  

Travel & Lodging - 0.0%

      

Carnival Corp.,

      

3.95%, 10/15/20

      250        264  
  

 

 

     

 

 

  

Winding Up Agencies - 0.0%

      

FMS Wertmanagement AoeR,

      

1.63%, 11/20/18

      300        301  
  

 

 

     

 

 

  

Wireless Telecommunications Services - 0.2%

      

America Movil S.A.B. de C.V.,

      

3.13%, 7/16/22

      295        291  

6.13%, 11/15/37

      505        572  

Rogers Communications, Inc.,

      

6.80%, 8/15/18

      700        755  

3.00%, 3/15/23

      80        79  

3.63%, 12/15/25

      1,000        1,011  

4.50%, 3/15/43

      45        44  

5.45%, 10/1/43

      130        143  

Vodafone Group PLC,

      

2.95%, 2/19/23

      1,290        1,251  

7.88%, 2/15/30

      170        222  

6.25%, 11/30/32

      970        1,113  

6.15%, 2/27/37

      135        151  
  

 

 

     

 

 

  
        5,632  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    43    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

FOREIGN ISSUER BONDS - 8.8% continued

      

Wireline Telecommunications Services - 0.2%

      

British Telecommunications PLC,

      

5.95%, 1/15/18

    $ 575      $ 599  

2.35%, 2/14/19

      150        151  

9.13%, 12/15/30

      100        153  

Deutsche Telekom International Finance B.V.,

      

8.75%, 6/15/30

      400        588  

Orange S.A.,

      

5.38%, 7/8/19

      600        647  

9.00%, 3/1/31

      610        917  

Telefonica Emisiones S.A.U.,

      

5.46%, 2/16/21

      155        169  

4.57%, 4/27/23

      1,250        1,311  

7.05%, 6/20/36

      205        238  

Telefonos de Mexico S.A.B. de C.V.,

      

5.50%, 11/15/19

      305        329  
  

 

 

     

 

 

  
        5,102  
     

 

 

  

Total Foreign Issuer Bonds

(Cost $230,507)

         230,936  
     

 

 

  

U.S. GOVERNMENT AGENCIES - 31.3%(8)

      

Fannie Mae - 13.4%

      

Fannie Mae Multifamily Remic Trust, Series 2015-M12, Class A2,

      

2.79%, 5/25/25(1)

      250        249  

Fannie Mae,

      

1.88%, 9/18/18

      1,000        1,012  

1.63%, 11/27/18

      1,000        1,008  

1.88%, 2/19/19

      1,000        1,012  

1.75%, 6/20/19

      1,000        1,011  

1.13%, 7/26/19

      3,002        2,978  

0.88%, 8/2/19

      2,000        1,972  

1.75%, 9/12/19

      1,000        1,010  

1.75%, 11/26/19

      3,000        3,023  

2.63%, 9/6/24

      1,000        1,010  

2.13%, 4/24/26

      1,000        946  

7.13%, 1/15/30

      1,500        2,140  

6.63%, 11/15/30

      200        278  

5.63%, 7/15/37

      1,000        1,334  

Fannie Mae-Aces, Series 2009-M1, Class A2,

      

4.29%, 7/25/19

      369        387  

Fannie Mae-Aces, Series 2011-M2, Class A2,

      

3.65%, 4/25/21

      195        203  

Fannie Mae-Aces, Series 2011-M5, Class A2,

      

2.94%, 7/25/21

      500        513  

Fannie Mae-Aces, Series 2011-M7, Class A2,

      

2.58%, 9/25/18

      171        173  

Fannie Mae-Aces, Series 2012-M8, Class ASQ3,

      

1.80%, 12/25/19

      100        100  

Fannie Mae-Aces, Series 2012-M9, Class A2,

      

2.48%, 4/25/22

      225        226  

Fannie Mae-Aces, Series 2013-M14, Class A2,

      

3.33%, 10/25/23(1)

      200        207  

Fannie Mae-Aces, Series 2013-M6, Class 1AC,

      

3.96%, 2/25/43(1)

      150        152  

Fannie Mae-Aces, Series 2013-M9, Class A2,

      

2.39%, 1/25/23(1)

      150        148  

Fannie Mae-Aces, Series 2014-M13, Class A2,

      

3.02%, 8/25/24(1)

      100        101  

Fannie Mae-Aces, Series 2014-M3, Class A2,

      

3.47%, 1/25/24(1)

      350        365  

Fannie Mae-Aces, Series 2014-M4, Class A2,

      

3.35%, 3/25/24(1)

      545        562  

Fannie Mae-Aces, Series 2014-M4, Class ASQ2,

      

1.27%, 1/25/17

      2        2  

Fannie Mae-Aces, Series 2015-M1, Class A2,

      

2.53%, 9/25/24

      150        147  

Fannie Mae-Aces, Series 2015-M11, Class A2,

      

2.83%, 4/25/25(1)

      500        499  

Fannie Mae-Aces, Series 2015-M3, Class A2,

      

2.72%, 10/25/24

      250        248  

 

FIXED INCOME INDEX FUNDS    44    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Fannie Mae-Aces, Series 2015-M7, Class ASQ2,

      

1.55%, 4/25/18

    $ 400      $ 400  

Fannie Mae-Aces, Series 2016-M1, Class ASQ2,

      

2.13%, 2/25/21(1)

      500        498  

Fannie Mae-Aces, Series 2016-M3, Class A2,

      

2.70%, 2/25/26

      100        98  

Fannie Mae-Aces, Series 2016-M4, Class A2,

      

2.58%, 3/25/26

      100        97  

Fannie Mae-Aces, Series 2016-M5, Class A2,

      

2.47%, 4/25/26

      250        240  

Fannie Mae-Aces, Series 2016-M7, Class AV2,

      

2.16%, 10/25/23

      250        244  

Fannie Mae-Aces, Series 2016-M9, Class A2,

      

2.29%, 6/25/26

      100        94  

Pool #255376,

      

6.00%, 8/1/19

      19        20  

Pool #256792,

      

6.50%, 6/1/22

      42        45  

Pool #256925,

      

6.00%, 10/1/37

      35        40  

Pool #256959,

      

6.00%, 11/1/37

      164        185  

Pool #256985,

      

7.00%, 11/1/37

      49        56  

Pool #257042,

      

6.50%, 1/1/38

      346        393  

Pool #257106,

      

4.50%, 1/1/28

      9        9  

Pool #257237,

      

4.50%, 6/1/28

      47        51  

Pool #257243,

      

7.00%, 6/1/38

      193        220  

Pool #357630,

      

5.00%, 10/1/19

      15        16  

Pool #707791,

      

5.00%, 6/1/33

      183        200  

Pool #709239,

      

5.00%, 7/1/18

      68        70  

Pool #725185,

      

5.00%, 2/1/19

      18        18  

Pool #725425,

      

5.50%, 4/1/34

      65        72  

Pool #730811,

      

4.50%, 8/1/33

      101        109  

Pool #735222,

      

5.00%, 2/1/35

      39        43  

Pool #735358,

      

5.50%, 2/1/35

      164        185  

Pool #735502,

      

6.00%, 4/1/35

      23        26  

Pool #737853,

      

5.00%, 9/1/33

      315        344  

Pool #745336,

      

5.00%, 3/1/36

      812        888  

Pool #745418,

      

5.50%, 4/1/36

      61        68  

Pool #745754,

      

5.00%, 9/1/34

      450        494  

Pool #745826,

      

6.00%, 7/1/36

      209        237  

Pool #746272,

      

4.00%, 10/1/18

      45        46  

Pool #747383,

      

5.50%, 10/1/33

      108        120  

Pool #755632,

      

5.00%, 4/1/34

      121        133  

Pool #772730,

      

5.00%, 4/1/34

      143        156  

Pool #790406,

      

6.00%, 9/1/34

      95        109  

Pool #793666,

      

5.50%, 9/1/34

      99        112  

Pool #796250,

      

5.50%, 11/1/34

      53        59  

Pool #800471,

      

5.50%, 10/1/34

      356        395  

Pool #807701,

      

4.50%, 12/1/19

      14        14  

 

NORTHERN FUNDS QUARTERLY REPORT    45    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #811944,

      

4.50%, 1/1/20

    $ 23      $ 23  

Pool #817795,

      

6.00%, 8/1/36

      43        48  

Pool #826057,

      

5.00%, 7/1/35

      114        126  

Pool #826585,

      

5.00%, 8/1/35

      190        207  

Pool #828523,

      

5.00%, 7/1/35

      56        61  

Pool #831676,

      

6.50%, 8/1/36

      24        28  

Pool #832628,

      

5.50%, 9/1/20

      32        33  

Pool #833067,

      

5.50%, 9/1/35

      222        249  

Pool #833163,

      

5.00%, 9/1/35

      117        128  

Pool #840577,

      

5.00%, 10/1/20

      18        19  

Pool #844909,

      

4.50%, 10/1/20

      5        6  

Pool #845425,

      

6.00%, 2/1/36

      172        195  

Pool #847921,

      

5.50%, 11/1/20

      99        105  

Pool #863759,

      

4.00%, 12/1/20

      11        12  

Pool #864435,

      

4.50%, 12/1/20

      45        47  

Pool #868435,

      

6.00%, 4/1/36

      238        273  

Pool #869710,

      

6.00%, 4/1/36

      75        85  

Pool #871135,

      

6.00%, 1/1/37

      57        66  

Pool #880505,

      

6.00%, 8/1/21

      9        10  

Pool #881818,

      

6.50%, 8/1/36

      166        190  

Pool #885769,

      

6.00%, 6/1/36

      26        30  

Pool #885866,

      

6.00%, 6/1/36

      81        93  

Pool #887111,

      

5.50%, 5/1/20

      19        20  

Pool #888100,

      

5.50%, 9/1/36

      255        286  

Pool #888152,

      

5.00%, 5/1/21

      40        42  

Pool #888205,

      

6.50%, 2/1/37

      61        70  

Pool #888447,

      

4.00%, 5/1/21

      22        23  

Pool #889224,

      

5.50%, 1/1/37

      299        335  

Pool #889390,

      

6.00%, 3/1/23

      40        43  

Pool #889401,

      

6.00%, 3/1/38

      139        157  

Pool #889415,

      

6.00%, 5/1/37

      598        688  

Pool #889579,

      

6.00%, 5/1/38

      301        341  

Pool #889630,

      

6.50%, 3/1/38

      39        44  

Pool #889886,

      

7.00%, 12/1/37

      48        55  

Pool #889970,

      

5.00%, 12/1/36

      225        246  

Pool #890234,

      

6.00%, 10/1/38

      146        168  

Pool #890329,

      

4.00%, 4/1/26

      2,914        3,095  

Pool #890339,

      

5.00%, 9/1/20

      86        88  

Pool #892536,

      

6.50%, 9/1/36

      57        64  

Pool #892968,

      

6.50%, 8/1/21

      5        5  

Pool #893363,

      

5.00%, 6/1/36

      76        83  

Pool #893366,

      

5.00%, 4/1/35

      122        133  

 

FIXED INCOME INDEX FUNDS    46    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #898417,

      

6.00%, 10/1/36

    $ 30      $ 34  

Pool #899079,

      

5.00%, 3/1/37

      76        83  

Pool #902414,

      

5.50%, 11/1/36

      147        164  

Pool #905090,

      

5.50%, 10/1/21

      19        20  

Pool #906090,

      

5.50%, 1/1/37

      148        166  

Pool #910147,

      

5.00%, 3/1/22

      58        60  

Pool #912414,

      

4.50%, 1/1/22

      28        29  

Pool #915499,

      

5.00%, 3/1/37

      142        155  

Pool #915870,

      

7.00%, 4/1/37

      19        22  

Pool #918515,

      

5.00%, 6/1/37

      121        132  

Pool #923123,

      

5.00%, 4/1/36

      10        11  

Pool #923166,

      

7.50%, 1/1/37

      25        29  

Pool #928261,

      

4.50%, 3/1/36

      99        107  

Pool #928584,

      

6.50%, 8/1/37

      334        394  

Pool #928909,

      

6.00%, 12/1/37

      2        2  

Pool #928915,

      

6.00%, 11/1/37

      13        14  

Pool #930606,

      

4.00%, 2/1/39

      702        739  

Pool #931195,

      

4.50%, 5/1/24

      164        173  

Pool #931665,

      

4.50%, 7/1/24

      536        565  

Pool #932023,

      

5.00%, 1/1/38

      116        127  

Pool #932741,

      

4.50%, 4/1/40

      490        531  

Pool #934466,

      

5.50%, 9/1/23

      105        113  

Pool #940623,

      

5.50%, 8/1/37

      52        58  

Pool #943388,

      

6.00%, 6/1/37

      239        271  

Pool #943617,

      

6.00%, 8/1/37

      156        177  

Pool #945876,

      

5.50%, 8/1/37

      18        20  

Pool #946527,

      

7.00%, 9/1/37

      32        34  

Pool #947216,

      

6.00%, 10/1/37

      70        79  

Pool #949391,

      

5.50%, 8/1/22

      8        9  

Pool #953018,

      

6.50%, 10/1/37

      129        146  

Pool #953910,

      

6.00%, 11/1/37

      75        85  

Pool #955771,

      

6.50%, 10/1/37

      92        109  

Pool #959604,

      

6.50%, 11/1/37

      14        16  

Pool #959880,

      

5.50%, 11/1/37

      41        46  

Pool #962687,

      

5.00%, 4/1/38

      163        177  

Pool #963735,

      

4.50%, 6/1/23

      81        86  

Pool #965389,

      

6.00%, 10/1/23

      47        49  

Pool #966660,

      

6.00%, 12/1/37

      2        2  

Pool #968037,

      

6.00%, 1/1/38

      68        76  

Pool #969632,

      

6.50%, 1/1/38

      44        51  

Pool #970013,

      

4.50%, 6/1/38

      144        155  

Pool #972452,

      

5.50%, 3/1/38

      273        303  

 

NORTHERN FUNDS QUARTERLY REPORT    47    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #975365,

      

5.00%, 6/1/23

    $ 47      $ 50  

Pool #976963,

      

5.50%, 2/1/38

      1,698        1,889  

Pool #981704,

      

5.00%, 6/1/23

      175        187  

Pool #981854,

      

5.50%, 7/1/38

      132        148  

Pool #984075,

      

4.50%, 6/1/23

      46        49  

Pool #986760,

      

5.50%, 7/1/38

      425        473  

Pool #987114,

      

5.50%, 9/1/23

      15        15  

Pool #987115,

      

5.50%, 9/1/23

      17        18  

Pool #992472,

      

6.00%, 10/1/38

      58        66  

Pool #992491,

      

4.50%, 10/1/23

      46        49  

Pool #993055,

      

5.50%, 12/1/38

      37        41  

Pool #995018,

      

5.50%, 6/1/38

      101        113  

Pool #995203,

      

5.00%, 7/1/35

      654        718  

Pool #995266,

      

5.00%, 12/1/23

      410        436  

Pool #995737,

      

5.00%, 2/1/38

      1,156        1,262  

Pool #995879,

      

6.00%, 4/1/39

      151        171  

Pool #AA0649,

      

5.00%, 12/1/38

      370        408  

Pool #AA2939,

      

4.50%, 4/1/39

      684        742  

Pool #AA4482,

      

4.00%, 4/1/39

      616        652  

Pool #AA4562,

      

4.50%, 9/1/39

      662        719  

Pool #AA8978,

      

4.50%, 7/1/39

      144        157  

Pool #AA9357,

      

4.50%, 8/1/39

      634        683  

Pool #AB1048,

      

4.50%, 5/1/40

      884        956  

Pool #AB2067,

      

3.50%, 1/1/41

      1,147        1,183  

Pool #AB2092,

      

4.00%, 1/1/41

      514        544  

Pool #AB2272,

      

4.50%, 2/1/41

      813        882  

Pool #AB2693,

      

4.50%, 4/1/41

      536        589  

Pool #AB2768,

      

4.50%, 4/1/41

      662        717  

Pool #AB3035,

      

5.00%, 5/1/41

      1,066        1,166  

Pool #AB3246,

      

5.00%, 7/1/41

      328        361  

Pool #AB4057,

      

4.00%, 12/1/41

      2,121        2,240  

Pool #AB4293,

      

3.50%, 1/1/42

      1,395        1,438  

Pool #AB5049,

      

4.00%, 4/1/42

      2,214        2,333  

Pool #AB6016,

      

3.50%, 8/1/42

      979        1,009  

Pool #AB6293,

      

3.50%, 9/1/27

      1,720        1,794  

Pool #AB6472,

      

2.00%, 10/1/27

      742        727  

Pool #AB7076,

      

3.00%, 11/1/42

      3,109        3,108  

Pool #AB7503,

      

3.00%, 1/1/43

      1,446        1,446  

Pool #AB7733,

      

3.00%, 1/1/43

      2,690        2,689  

Pool #AB8787,

      

2.00%, 3/1/28

      1,474        1,444  

Pool #AB8823,

      

3.00%, 3/1/43

      4,764        4,763  

Pool #AB9019,

      

3.00%, 4/1/43

      1,172        1,171  

 

FIXED INCOME INDEX FUNDS    48    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #AB9136,

      

2.50%, 4/1/43

    $ 130      $ 124  

Pool #AB9363,

      

3.50%, 5/1/43

      3,505        3,613  

Pool #AB9990,

      

3.00%, 7/1/33

      279        285  

Pool #AC2947,

      

5.50%, 9/1/39

      537        600  

Pool #AC2969,

      

5.00%, 9/1/39

      2,253        2,489  

Pool #AC3263,

      

4.50%, 9/1/29

      242        260  

Pool #AC3312,

      

4.50%, 10/1/39

      1,204        1,299  

Pool #AC4861,

      

4.50%, 11/1/24

      402        423  

Pool #AC5040,

      

4.00%, 10/1/24

      240        253  

Pool #AC6118

      

4.50%, 11/1/39

      338        364  

Pool #AC6742,

      

4.50%, 1/1/40

      1,285        1,394  

Pool #AC8518,

      

5.00%, 12/1/39

      604        658  

Pool #AC9581

      

5.50%, 1/1/40

      1,377        1,550  

Pool #AD0119,

      

6.00%, 7/1/38

      427        484  

Pool #AD0585,

      

4.50%, 12/1/39

      619        675  

Pool #AD0639,

      

6.00%, 12/1/38

      131        148  

Pool #AD0969,

      

5.50%, 8/1/37

      509        569  

Pool #AD5241,

      

4.50%, 7/1/40

      519        560  

Pool #AD5525,

      

5.00%, 6/1/40

      594        654  

Pool #AD5556,

      

4.00%, 6/1/25

      184        193  

Pool #AD7859,

      

5.00%, 6/1/40

      353        386  

Pool #AE0949,

      

4.00%, 2/1/41

      1,356        1,432  

Pool #AE0971,

      

4.00%, 5/1/25

      146        155  

Pool #AE0981,

      

3.50%, 3/1/41

      1,043        1,075  

Pool #AE1807,

      

4.00%, 10/1/40

      1,740        1,832  

Pool #AE3873,

      

4.50%, 10/1/40

      253        273  

Pool #AE5436,

      

4.50%, 10/1/40

      332        358  

Pool #AE5767,

      

2.92%, 5/1/41(1)

      91        95  

Pool #AH0525,

      

4.00%, 12/1/40

      1,446        1,527  

Pool #AH1295,

      

3.50%, 1/1/26

      474        495  

Pool #AH2488,

      

3.11%, 2/1/41(1)

      91        95  

Pool #AH3226,

      

5.00%, 2/1/41

      132        145  

Pool #AH4158,

      

4.00%, 1/1/41

      273        288  

Pool #AH5573,

      

4.00%, 2/1/41

      1,147        1,214  

Pool #AH5614,

      

3.50%, 2/1/26

      530        553  

Pool #AH8854,

      

4.50%, 4/1/41

      394        426  

Pool #AI1247,

      

4.00%, 4/1/26

      245        258  

Pool #AI3470,

      

4.50%, 6/1/41

      564        608  

Pool #AI4361,

      

3.05%, 9/1/41(1)

      46        48  

Pool #AI4380,

      

3.30%, 11/1/41(1)

      39        41  

Pool #AI5603,

      

4.50%, 7/1/41

      295        318  

Pool #AI7743,

      

4.00%, 8/1/41

      393        413  

 

NORTHERN FUNDS QUARTERLY REPORT    49    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #AI9137,

      

2.50%, 11/1/27

    $ 2,046      $ 2,052  

Pool #AI9555,

      

4.00%, 9/1/41

      726        765  

Pool #AI9828,

      

2.86%, 11/1/41(1)

      117        122  

Pool #AJ2001,

      

3.01%, 10/1/41(1)

      86        91  

Pool #AJ4093,

      

3.50%, 10/1/26

      132        138  

Pool #AJ4408,

      

4.50%, 10/1/41

      180        194  

Pool #AJ6086,

      

3.00%, 12/1/26

      356        366  

Pool #AJ9152,

      

3.50%, 12/1/26

      1,658        1,729  

Pool #AJ9218,

      

4.00%, 2/1/42

      997        1,050  

Pool #AJ9326,

      

3.50%, 1/1/42

      1,593        1,643  

Pool #AJ9355,

      

3.00%, 1/1/27

      845        870  

Pool #AK4524,

      

4.50%, 3/1/42

      2,659        2,864  

Pool #AK4813,

      

3.50%, 3/1/42

      670        691  

Pool #AK4945,

      

3.50%, 2/1/42

      757        781  

Pool #AK7766,

      

2.50%, 3/1/27

      998        1,001  

Pool #AK9444,

      

4.00%, 3/1/42

      294        311  

Pool #AL0442,

      

5.50%, 6/1/40

      143        160  

Pool #AL0766,

      

4.00%, 9/1/41

      1,645        1,742  

Pool #AL1449,

      

4.00%, 1/1/42

      1,679        1,774  

Pool #AL1849,

      

6.00%, 2/1/39

      578        664  

Pool #AL1939,

      

3.50%, 6/1/42

      1,784        1,840  

Pool #AL2243,

      

4.00%, 3/1/42

      1,729        1,826  

Pool #AL2303,

      

4.50%, 6/1/26

      466        486  

Pool #AL2326,

      

4.50%, 4/1/42

      3,438        3,706  

Pool #AL2397,

      

2.70%, 8/1/42(1)

      183        188  

Pool #AL2438,

      

3.00%, 9/1/27

      2,136        2,197  

Pool #AL2893,

      

3.50%, 12/1/42

      3,983        4,108  

Pool #AL3396,

      

2.50%, 3/1/28

      902        905  

Pool #AL3950,

      

1.73%, 8/1/43(1)

      90        92  

Pool #AL4408

      

4.50%, 11/1/43

      2,255        2,447  

Pool #AL4462,

      

2.50%, 6/1/28

      1,492        1,497  

Pool #AL4908

      

4.00%, 2/1/44

      1,720        1,820  

Pool #AL5167,

      

3.50%, 1/1/34

      438        455  

Pool #AL5254,

      

3.00%, 11/1/27

      1,175        1,209  

Pool #AL5377,

      

4.00%, 6/1/44

      4,307        4,564  

Pool #AL5734,

      

3.50%, 9/1/29

      1,405        1,472  

Pool #AL5785,

      

4.00%, 9/1/44

      2,532        2,684  

Pool #AL5953,

      

2.78%, 10/1/44(1)

      351        359  

Pool #AL6488,

      

3.50%, 8/1/43

      879        907  

Pool #AL7807,

      

3.00%, 11/1/30

      3,445        3,544  

Pool #AL8469,

      

3.50%, 4/1/31

      647        679  

Pool #AL8908,

      

3.00%, 8/1/46

      1,104        1,099  

 

FIXED INCOME INDEX FUNDS    50    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #AL8951,

      

3.00%, 8/1/46

    $ 984      $ 979  

Pool #AO0752,

      

3.00%, 4/1/42

      892        891  

Pool #AO0800,

      

3.00%, 4/1/27

      766        787  

Pool #AO2973,

      

3.50%, 5/1/42

      1,976        2,041  

Pool #AO4136,

      

3.50%, 6/1/42

      1,244        1,282  

Pool #AO7970,

      

2.50%, 6/1/27

      506        508  

Pool #AO8031,

      

3.50%, 7/1/42

      3,252        3,353  

Pool #AO8629,

      

3.50%, 7/1/42

      588        606  

Pool #AP6273,

      

3.00%, 10/1/42

      939        938  

Pool #AQ6784,

      

3.50%, 12/1/42

      1,093        1,121  

Pool #AQ8185,

      

2.50%, 1/1/28

      295        296  

Pool #AQ8647,

      

3.50%, 12/1/42

      1,487        1,533  

Pool #AR1706,

      

2.50%, 1/1/28

      4,805        4,819  

Pool #AR3054,

      

3.00%, 1/1/28

      1,144        1,177  

Pool #AR3792,

      

3.00%, 2/1/43

      865        864  

Pool #AR8151,

      

3.00%, 3/1/43

      1,556        1,555  

Pool #AR9188,

      

2.50%, 3/1/43

      191        183  

Pool #AR9582,

      

3.00%, 3/1/43

      537        537  

Pool #AS0018,

      

3.00%, 7/1/43

      3,430        3,429  

Pool #AS0275,

      

3.00%, 8/1/33

      357        364  

Pool #AS3600,

      

3.00%, 10/1/29

      2,285        2,348  

Pool #AS3657,

      

4.50%, 10/1/44

      2,391        2,572  

Pool #AS4085,

      

4.00%, 12/1/44

      879        930  

Pool #AS4306,

      

3.00%, 1/1/45

      1,488        1,480  

Pool #AS4458,

      

3.50%, 2/1/45

      4,954        5,093  

Pool #AS4715,

      

3.00%, 4/1/45

      1,339        1,332  

Pool #AS5090,

      

2.50%, 6/1/30

      552        554  

Pool #AS5324,

      

2.50%, 7/1/30

      1,188        1,191  

Pool #AS5500,

      

3.00%, 7/1/35

      580        588  

Pool #AS5666,

      

4.00%, 8/1/45

      2,099        2,207  

Pool #AS5892,

      

3.50%, 10/1/45

      2,224        2,281  

Pool #AS6192,

      

3.50%, 11/1/45

      4,037        4,145  

Pool #AS6262,

      

3.50%, 11/1/45

      2,508        2,572  

Pool #AS6332,

      

3.50%, 12/1/45

      2,763        2,834  

Pool #AS6398,

      

3.50%, 12/1/45

      1,842        1,890  

Pool #AS6730

      

3.50%, 2/1/46

      3,584        3,677  

Pool #AS6887,

      

2.50%, 3/1/31

      1,096        1,099  

Pool #AS7149,

      

3.00%, 5/1/46

      1,744        1,738  

Pool #AS7157,

      

3.00%, 5/1/46

      1,150        1,144  

Pool #AS7247,

      

4.00%, 5/1/46

      894        941  

Pool #AS7343,

      

3.00%, 6/1/46

      1,068        1,062  

Pool #AS7480,

      

2.00%, 7/1/31

      287        279  

 

NORTHERN FUNDS QUARTERLY REPORT    51    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #AS7580,

      

3.00%, 7/1/46

    $ 1,277      $ 1,270  

Pool #AS8067,

      

3.00%, 10/1/46

      1,751        1,741  

Pool #AS8074,

      

3.00%, 10/1/46

      995        990  

Pool #AS8178,

      

3.00%, 10/1/36

      347        351  

Pool #AS8194,

      

2.50%, 10/1/31

      3,450        3,460  

Pool #AT0666,

      

3.50%, 4/1/43

      664        685  

Pool #AT2720,

      

3.00%, 5/1/43

      1,568        1,568  

Pool #AT3164,

      

3.00%, 4/1/43

      2,573        2,572  

Pool #AT3180,

      

3.00%, 5/1/43

      3,076        3,075  

Pool #AT5026,

      

3.00%, 5/1/43

      2,755        2,754  

Pool #AU1657,

      

2.50%, 7/1/28

      708        710  

Pool #AU1689,

      

3.50%, 8/1/43

      2,973        3,065  

Pool #AU1808,

      

3.00%, 8/1/43

      2,527        2,526  

Pool #AU3164,

      

3.00%, 8/1/33

      309        315  

Pool #AU4336,

      

2.23%, 8/1/43(1)

      397        403  

Pool #AU5918,

      

3.00%, 9/1/43

      2,276        2,276  

Pool #AU5919,

      

3.50%, 9/1/43

      1,814        1,869  

Pool #AV0691,

      

4.00%, 12/1/43

      3,456        3,658  

Pool #AV2339,

      

4.00%, 12/1/43

      740        783  

Pool #AW2472,

      

2.54%, 6/1/44(1)

      495        509  

Pool #AW8167,

      

3.50%, 2/1/42

      799        824  

Pool #AW8595,

      

3.00%, 8/1/29

      575        591  

Pool #AX2163,

      

3.50%, 11/1/44

      1,098        1,127  

Pool #AX4413,

      

4.00%, 11/1/44

      2,582        2,715  

Pool #AX4839,

      

3.50%, 11/1/44

      2,009        2,060  

Pool #AX6139,

      

4.00%, 11/1/44

      3,088        3,256  

Pool #AY0544,

      

2.50%, 8/1/27

      2,193        2,200  

Pool #AY3062,

      

3.00%, 11/1/26

      676        696  

Pool #AY5580,

      

3.50%, 6/1/45

      6,172        6,338  

Pool #AY9555,

      

3.00%, 5/1/45

      2,131        2,119  

Pool #AZ1449,

      

3.00%, 7/1/45

      1,385        1,377  

Pool #AZ2186,

      

2.43%, 8/1/45(1)

      86        87  

Pool #AZ2936,

      

3.00%, 9/1/45

      712        708  

Pool #AZ2947,

      

4.00%, 9/1/45

      2,053        2,159  

Pool #AZ4775,

      

3.50%, 10/1/45

      1,246        1,278  

Pool #AZ5284,

      

2.60%, 7/1/45(1)

      411        419  

Pool #BA0394,

      

2.73%, 11/1/45(1)

      427        435  

Pool #BA2911,

      

3.00%, 11/1/30

      675        693  

Pool #BC0326

      

3.50%, 12/1/45

      880        903  

Pool #BC1105,

      

3.50%, 2/1/46

      3,104        3,184  

Pool #BC1510,

      

3.00%, 8/1/46

      938        933  

Pool #BC3705,

      

2.42%, 1/1/46(1)

      120        122  

 

FIXED INCOME INDEX FUNDS    52    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Fannie Mae - 13.4% continued

      

Pool #MA0361,

      

4.00%, 3/1/30

    $ 245      $ 259  

Pool #MA0667,

      

4.00%, 3/1/31

      585        620  

Pool #MA0706,

      

4.50%, 4/1/31

      753        810  

Pool #MA0711,

      

3.50%, 4/1/31

      355        366  

Pool #MA0804,

      

4.00%, 7/1/31

      401        425  

Pool #MA0976,

      

3.50%, 2/1/32

      798        830  

Pool #MA1107,

      

3.50%, 7/1/32

      984        1,024  

Pool #MA1138,

      

3.50%, 8/1/32

      538        559  

Pool #MA1141,

      

3.00%, 8/1/32

      272        277  

Pool #MA1200,

      

3.00%, 10/1/32

      1,463        1,499  

Pool #MA1239,

      

3.50%, 11/1/32

      736        766  

Pool #MA1432,

      

3.00%, 5/1/33

      1,464        1,494  

Pool #MA1511,

      

2.50%, 7/1/33

      422        413  

Pool #MA1764,

      

4.00%, 1/1/34

      676        717  

Pool #MA2320,

      

3.00%, 7/1/35

      1,264        1,281  

Pool #MA2473,

      

3.50%, 12/1/35

      605        627  

Pool #MA2489,

      

2.50%, 12/1/30

      1,773        1,777  

Pool #MA2512,

      

4.00%, 1/1/46

      865        910  

Pool #MA2670,

      

3.00%, 7/1/46

      2,906        2,890  

Pool #MA2672,

      

3.00%, 7/1/36

      674        683  

Pool #MA2705,

      

3.00%, 8/1/46

      2,065        2,053  

Pool #MA2737,

      

3.00%, 9/1/46

      925        920  

Pool #MA2738,

      

3.00%, 9/1/36

      980        993  

Pool #MA2771,

      

3.00%, 10/1/46

      989        984  

Pool #MA2775,

      

2.50%, 10/1/31

      588        590  

Pool #MA2817,

      

2.50%, 11/1/36

      298        291  

Pool TBA,

      

1/17/31(9)

      1,500        1,527  

1/17/46(9)

      18,300        18,488  
  

 

 

     

 

 

  
        350,684  
     

 

 

  

Federal Home Loan Bank - 0.4%

      

Federal Home Loan Banks,

      

0.88%, 6/29/18

      5,000        4,983  

0.63%, 8/7/18

      5,000        4,960  

5.50%, 7/15/36

      500        656  
  

 

 

     

 

 

  
        10,599  
     

 

 

  

Freddie Mac - 1.5%

      

FHLMC Multifamily Structured Pass Through Certificates, Series K006, Class A2,

      

4.25%, 1/25/20

      185        196  

FHLMC Multifamily Structured Pass Through Certificates, Series K007, Class A2,

      

4.22%, 3/25/20

      245        261  

FHLMC Multifamily Structured Pass Through Certificates, Series K008, Class A2,

      

3.53%, 6/25/20

      263        275  

FHLMC Multifamily Structured Pass Through Certificates, Series K011, Class A2,

      

4.08%, 11/25/20(1)

      785        840  

FHLMC Multifamily Structured Pass Through Certificates, Series K013, Class A2,

      

3.97%, 1/25/21(1)

      575        615  

 

NORTHERN FUNDS QUARTERLY REPORT    53    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac - 1.5% continued

      

FHLMC Multifamily Structured Pass Through Certificates, Series K014, Class A2,

      

3.87%, 4/25/21

    $ 350      $ 372  

FHLMC Multifamily Structured Pass Through Certificates, Series K017, Class A2,

      

2.87%, 12/25/21

      100        103  

FHLMC Multifamily Structured Pass Through Certificates, Series K018, Class A2,

      

2.79%, 1/25/22

      500        511  

FHLMC Multifamily Structured Pass Through Certificates, Series K019, Class A1,

      

1.46%, 9/25/21

      288        285  

FHLMC Multifamily Structured Pass Through Certificates, Series K020, Class A2,

      

2.37%, 5/25/22

      250        250  

FHLMC Multifamily Structured Pass Through Certificates, Series K023, Class A2,

      

2.31%, 8/25/22

      350        349  

FHLMC Multifamily Structured Pass Through Certificates, Series K024, Class A2,

      

2.57%, 9/25/22

      200        202  

FHLMC Multifamily Structured Pass Through Certificates, Series K025, Class A1,

      

1.88%, 4/25/22

      393        391  

FHLMC Multifamily Structured Pass Through Certificates, Series K027, Class A2,

      

2.64%, 1/25/23

      750        758  

FHLMC Multifamily Structured Pass Through Certificates, Series K028, Class A2,

      

3.11%, 2/25/23

      300        311  

FHLMC Multifamily Structured Pass Through Certificates, Series K029, Class A2,

      

3.32%, 2/25/23(1)

      250        262  

FHLMC Multifamily Structured Pass Through Certificates, Series K030, Class A2,

      

3.25%, 4/25/23(1)

      300        313  

FHLMC Multifamily Structured Pass Through Certificates, Series K031, Class A2,

      

3.30%, 4/25/23(1)

     227        238  

FHLMC Multifamily Structured Pass Through Certificates, Series K032, Class A2,

      

3.31%, 5/25/23(1)

      365        382  

FHLMC Multifamily Structured Pass Through Certificates, Series K033, Class A2,

      

3.06%, 7/25/23(1)

      350        361  

FHLMC Multifamily Structured Pass Through Certificates, Series K040, Class A2,

      

3.24%, 9/25/24

      300        310  

FHLMC Multifamily Structured Pass Through Certificates, Series K041, Class A2,

      

3.17%, 10/25/24

      300        309  

FHLMC Multifamily Structured Pass Through Certificates, Series K042, Class A2,

      

2.67%, 12/25/24

      200        199  

FHLMC Multifamily Structured Pass Through Certificates, Series K043, Class A2,

      

3.06%, 12/25/24

      200        204  

FHLMC Multifamily Structured Pass Through Certificates, Series K046, Class A2,

      

3.21%, 3/25/25

      250        257  

FHLMC Multifamily Structured Pass Through Certificates, Series K053, Class A2,

      

3.00%, 12/25/25

      300        303  

FHLMC Multifamily Structured Pass Through Certificates, Series K054, Class A2,

      

2.75%, 1/25/26

      250        247  

 

FIXED INCOME INDEX FUNDS    54    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac - 1.5% continued

      

FHLMC Multifamily Structured Pass Through Certificates, Series K055, Class A2,

      

2.67%, 3/25/26

    $ 500      $ 490  

FHLMC Multifamily Structured Pass Through Certificates, Series K056, Class A2,

      

2.53%, 5/25/26

      400        387  

FHLMC Multifamily Structured Pass Through Certificates, Series K058, Class A2,

      

2.65%, 9/25/49

      150        146  

FHLMC Multifamily Structured Pass Through Certificates, Series K503, Class A2,

      

2.46%, 8/25/19

      300        305  

FHLMC Multifamily Structured Pass Through Certificates, Series K703, Class A2,

      

2.70%, 5/25/18

      148        150  

FHLMC Multifamily Structured Pass Through Certificates, Series K704, Class A2,

      

2.41%, 8/25/18

      222        225  

FHLMC Multifamily Structured Pass Through Certificates, Series K710, Class A2,

      

1.88%, 5/25/19

      300        302  

FHLMC Multifamily Structured Pass Through Certificates, Series K712, Class A2,

      

1.87%, 11/25/19

      500        501  

FHLMC Multifamily Structured Pass Through Certificates, Series K716, Class A2,

      

3.13%, 6/25/21

      500        520  

FHLMC Multifamily Structured Pass Through Certificates, Series K718, Class A2,

      

2.79%, 1/25/22

      250        255  

FHLMC Multifamily Structured Pass Through Certificates, Series K719, Class A2,

      

2.73%, 6/25/22(1)

      100        101  

FHLMC Multifamily Structured Pass Through Certificates, Series K722, Class A2,

      

2.41%, 3/25/23

      250        249  

Freddie Mac,

      

1.00%, 9/27/17

      3,000        3,004  

0.75%, 1/12/18

      2,000        1,996  

0.88%, 3/7/18

      1,000        999  

1.00%, 5/25/18

      8,000        7,975  

3.75%, 3/27/19

      1,000        1,053  

1.13%, 4/15/19

      4,000        3,984  

1.75%, 5/30/19

      1,000        1,009  

1.25%, 10/2/19

      1,000        994  

1.38%, 5/1/20

      1,000        992  

2.38%, 1/13/22

      3,000        3,049  

6.75%, 3/15/31

      1,200        1,691  
  

 

 

     

 

 

  
        39,481  
     

 

 

  

Freddie Mac Gold - 7.8%

      

Pool #A16753,

      

5.00%, 11/1/33

      69        76  

Pool #A17665,

      

5.00%, 1/1/34

      82        90  

Pool #A27950,

      

5.50%, 11/1/34

      370        416  

Pool #A31136,

      

5.50%, 1/1/35

      223        250  

Pool #A39306,

      

5.50%, 11/1/35

      193        216  

Pool #A46224,

      

5.00%, 7/1/35

      37        40  

Pool #A48104,

      

5.00%, 1/1/36

      65        72  

Pool #A51296,

      

6.00%, 8/1/36

      24        27  

Pool #A54897,

      

6.50%, 8/1/36

      81        91  

Pool #A56110,

      

5.50%, 12/1/36

      252        279  

Pool #A57604,

      

5.00%, 3/1/37

      254        277  

Pool #A58718,

      

5.50%, 3/1/37

      28        32  

 

NORTHERN FUNDS QUARTERLY REPORT    55    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac Gold - 7.8% continued

      

Pool #A59081,

      

5.50%, 4/1/37

    $ 256      $ 285  

Pool #A60942,

      

5.00%, 5/1/37

      75        82  

Pool #A61560,

      

5.50%, 10/1/36

      403        453  

Pool #A61573,

      

5.00%, 9/1/34

      1,079        1,198  

Pool #A61597,

      

5.50%, 12/1/35

      41        45  

Pool #A64474,

      

5.50%, 9/1/37

      21        24  

Pool #A67116,

      

7.00%, 10/1/37

      16        18  

Pool #A68761,

      

5.50%, 9/1/37

      134        149  

Pool #A69169,

      

4.50%, 12/1/37

      74        79  

Pool #A69303,

      

6.00%, 11/1/37

      31        35  

Pool #A73778,

      

5.00%, 2/1/38

      124        135  

Pool #A74134,

      

7.00%, 2/1/38

      23        24  

Pool #A78507,

      

5.00%, 6/1/38

      527        581  

Pool #A81606,

      

6.00%, 9/1/38

      18        20  

Pool #A83008,

      

5.50%, 11/1/38

      383        426  

Pool #A84432,

      

4.50%, 2/1/39

      73        78  

Pool #A88476,

      

4.50%, 9/1/39

      2,061        2,233  

Pool #A88566,

      

5.00%, 9/1/39

      1,031        1,137  

Pool #A89346,

      

4.50%, 10/1/39

      1,090        1,172  

Pool #A90749,

      

4.50%, 1/1/40

      972        1,050  

Pool #A91541,

      

5.00%, 3/1/40

      286        313  

Pool #A91626,

      

4.50%, 3/1/40

      563        608  

Pool #A91942,

      

4.50%, 4/1/40

      415        450  

Pool #A94672,

      

4.50%, 10/1/40

      570        615  

Pool #A96296,

      

4.00%, 1/1/41

      706        746  

Pool #A96310,

      

4.00%, 1/1/41

      497        525  

Pool #A96995,

      

4.00%, 2/1/41

      1,154        1,215  

Pool #A97443,

      

4.50%, 3/1/41

      498        537  

Pool #B10630,

      

4.50%, 11/1/18

      67        68  

Pool #B17658,

      

4.50%, 1/1/20

      2        2  

Pool #B18502,

      

5.50%, 6/1/20

      9        9  

Pool #B18931,

      

4.50%, 3/1/20

      7        8  

Pool #C03457,

      

4.50%, 2/1/40

      360        387  

Pool #C03812,

      

3.50%, 4/1/42

      820        850  

Pool #C03821,

      

3.50%, 4/1/42

      1,641        1,691  

Pool #C04268,

      

3.00%, 10/1/42

      3,197        3,196  

Pool #C09004,

      

3.50%, 7/1/42

      528        544  

Pool #C09042,

      

3.50%, 5/1/43

      686        706  

Pool #C09063,

      

4.00%, 9/1/44

      595        626  

Pool #C09066,

      

3.50%, 10/1/44

      806        826  

Pool #C91009,

      

5.00%, 11/1/26

      23        25  

Pool #C91247,

      

5.00%, 4/1/29

      173        189  

 

FIXED INCOME INDEX FUNDS    56    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac Gold - 7.8% continued

      

Pool #C91354,

      

4.00%, 1/1/31

    $ 587      $ 623  

Pool #C91370,

      

4.50%, 5/1/31

      315        339  

Pool #C91388,

      

3.50%, 2/1/32

      344        357  

Pool #C91402,

      

4.00%, 10/1/31

      491        521  

Pool #C91408,

      

3.50%, 11/1/31

      337        348  

Pool #C91485,

      

3.50%, 8/1/32

      529        549  

Pool #C91811,

      

4.00%, 1/1/35

      232        247  

Pool #C91826,

      

3.00%, 5/1/35

      411        417  

Pool #C91858,

      

3.00%, 12/1/35

      434        440  

Pool #C91879,

      

3.00%, 6/1/36

      479        486  

Pool #C91891,

      

3.00%, 9/1/36

      494        499  

Pool #D97197,

      

5.00%, 2/1/27

      9        9  

Pool #D97564,

      

5.00%, 1/1/28

      151        165  

Pool #D99094,

      

3.00%, 3/1/32

      358        365  

Pool #E03033,

      

3.00%, 2/1/27

      763        784  

Pool #E04044,

      

3.50%, 8/1/27

      1,134        1,185  

Pool #E04072,

      

2.50%, 8/1/27

      344        345  

Pool #E99030,

      

4.50%, 9/1/18

      54        56  

Pool #G01907,

      

4.50%, 8/1/34

      42        45  

Pool #G01974,

      

5.00%, 12/1/35

      388        424  

Pool #G02064,

      

5.00%, 2/1/36

      181        197  

Pool #G02069,

      

5.50%, 3/1/36

      31        35  

Pool #G02386,

      

6.00%, 11/1/36

      295        333  

Pool #G02391,

      

6.00%, 11/1/36

      9        11  

Pool #G02540,

      

5.00%, 11/1/34

      82        90  

Pool #G02649,

      

6.00%, 1/1/37

      12        14  

Pool #G02702,

      

6.50%, 1/1/37

      45        50  

Pool #G02789,

      

6.00%, 4/1/37

      1,025        1,169  

Pool #G02911,

      

6.00%, 4/1/37

      15        17  

Pool #G02973,

      

6.00%, 6/1/37

      36        41  

Pool #G03121,

      

5.00%, 6/1/36

      160        174  

Pool #G03134,

      

5.50%, 8/1/36

      63        71  

Pool #G03176,

      

5.00%, 8/1/37

      52        57  

Pool #G03218,

      

6.00%, 9/1/37

      40        46  

Pool #G03351,

      

6.00%, 9/1/37

      77        88  

Pool #G03513,

      

6.00%, 11/1/37

      90        102  

Pool #G03600,

      

7.00%, 11/1/37

      39        44  

Pool #G03737,

      

6.50%, 11/1/37

      617        698  

Pool #G03992,

      

6.00%, 3/1/38

      99        112  

Pool #G04287,

      

5.00%, 5/1/38

      183        200  

Pool #G04459,

      

5.50%, 6/1/38

      141        157  

Pool #G04611,

      

6.00%, 7/1/38

      245        281  

 

NORTHERN FUNDS QUARTERLY REPORT     57    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac Gold - 7.8% continued

      

Pool #G04650,

      

6.50%, 9/1/38

    $ 168      $ 192  

Pool #G04817,

      

5.00%, 9/1/38

      96        105  

Pool #G05082,

      

5.00%, 3/1/38

      229        251  

Pool #G05167,

      

4.50%, 2/1/39

      251        270  

Pool #G05457,

      

4.50%, 5/1/39

      1,311        1,414  

Pool #G05725,

      

4.50%, 11/1/39

      532        577  

Pool #G05733,

      

5.00%, 11/1/39

      429        472  

Pool #G05870,

      

4.50%, 4/1/40

      633        687  

Pool #G05876,

      

4.50%, 4/1/40

      1,722        1,876  

Pool #G05969,

      

5.00%, 8/1/40

      274        301  

Pool #G05971,

      

5.50%, 8/1/40

      1,319        1,469  

Pool #G06020,

      

5.50%, 12/1/39

      1,084        1,208  

Pool #G06767,

      

5.00%, 10/1/41

      903        989  

Pool #G06947,

      

6.00%, 5/1/40

      302        342  

Pool #G07030,

      

4.00%, 6/1/42

      2,993        3,170  

Pool #G07098,

      

3.50%, 7/1/42

      901        928  

Pool #G07152,

      

4.00%, 6/1/42

      2,296        2,425  

Pool #G07171,

      

4.00%, 8/1/42

      1,200        1,269  

Pool #G07445,

      

2.50%, 7/1/43

      779        741  

Pool #G07787,

      

4.00%, 8/1/44

      4,232        4,475  

Pool #G07924,

      

3.50%, 1/1/45

      1,207        1,242  

Pool #G07961,

      

3.50%, 3/1/45

      2,447        2,514  

Pool #G07998,

      

4.50%, 7/1/44

      604        651  

Pool #G08189,

      

7.00%, 3/1/37

      33        38  

Pool #G08192,

      

5.50%, 4/1/37

      70        78  

Pool #G08341,

      

5.00%, 4/1/39

      1,327        1,444  

Pool #G08477,

      

3.50%, 2/1/42

      958        986  

Pool #G08537,

      

3.00%, 7/1/43

      2,829        2,824  

Pool #G08554,

      

3.50%, 10/1/43

      1,278        1,315  

Pool #G08624,

      

4.00%, 1/1/45

      1,932        2,030  

Pool #G08632,

      

3.50%, 3/1/45

      2,251        2,307  

Pool #G08648,

      

3.00%, 6/1/45

      871        865  

Pool #G08650,

      

3.50%, 6/1/45

      1,734        1,777  

Pool #G08653,

      

3.00%, 7/1/45

      2,128        2,115  

Pool #G08660,

      

4.00%, 8/1/45

      662        696  

Pool #G08666,

      

3.00%, 9/1/45

      6,304        6,266  

Pool #G08667,

      

3.50%, 9/1/45

      1,342        1,375  

Pool #G08672,

      

4.00%, 10/1/45

      877        922  

Pool #G08677,

      

4.00%, 11/1/45

      805        845  

Pool #G08681,

      

3.50%, 12/1/45

      2,559        2,622  

Pool #G08698,

      

3.50%, 3/1/46

      1,319        1,352  

Pool #G08702,

      

3.50%, 4/1/46

      1,367        1,401  

 

FIXED INCOME INDEX FUNDS    58    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac Gold - 7.8% continued

      

Pool #G08710,

      

3.00%, 6/1/46

    $ 1,444      $ 1,435  

Pool #G08715,

      

3.00%, 8/1/46

      3,126        3,108  

Pool #G08721,

      

3.00%, 9/1/46

      875        870  

Pool #G08726,

      

3.00%, 10/1/46

      1,153        1,146  

Pool #G11776,

      

4.50%, 9/1/20

      19        19  

Pool #G12571,

      

4.00%, 1/1/22

      68        70  

Pool #G12673,

      

5.00%, 9/1/21

      43        45  

Pool #G12837,

      

4.50%, 4/1/22

      65        69  

Pool #G12868,

      

5.00%, 11/1/22

      100        107  

Pool #G12869,

      

5.00%, 9/1/22

      84        89  

Pool #G13136,

      

4.50%, 5/1/23

      100        106  

Pool #G13151,

      

6.00%, 3/1/23

      93        100  

Pool #G13201,

      

4.50%, 7/1/23

      59        62  

Pool #G13433,

      

5.50%, 1/1/24

      80        86  

Pool #G14168,

      

5.50%, 12/1/24

      118        125  

Pool #G14239,

      

4.00%, 9/1/26

      1,931        2,032  

Pool #G14554,

      

4.50%, 7/1/26

      193        203  

Pool #G14891,

      

3.00%, 10/1/28

      533        548  

Pool #G15089,

      

2.50%, 11/1/28

      896        899  

Pool #G15134,

      

3.00%, 5/1/29

      352        362  

Pool #G15468,

      

3.50%, 12/1/29

      827        869  

Pool #G18220,

      

6.00%, 11/1/22

      12        13  

Pool #G18420,

      

3.00%, 1/1/27

      1,026        1,054  

Pool #G18438,

      

2.50%, 6/1/27

      454        456  

Pool #G18442,

      

3.50%, 8/1/27

      771        805  

Pool #G18475,

      

2.50%, 8/1/28

      3,223        3,231  

Pool #G18571,

      

2.50%, 10/1/30

      645        647  

Pool #G18601,

      

3.00%, 5/1/31

      923        948  

Pool #G18618,

      

2.00%, 11/1/31

      296        289  

Pool #G30327,

      

4.50%, 1/1/27

      26        28  

Pool #G60145,

      

3.50%, 8/1/45

      1,305        1,340  

Pool #G60238,

      

3.50%, 10/1/45

      1,809        1,859  

Pool #G60361,

      

3.50%, 12/1/45

      1,711        1,756  

Pool #G60440,

      

3.50%, 3/1/46

      3,003        3,086  

Pool #G60696,

      

3.00%, 9/1/46

      1,574        1,565  

Pool #G60707,

      

3.00%, 9/1/46

      1,533        1,524  

Pool #G60723,

      

3.00%, 10/1/46

      1,210        1,203  

Pool #G60724,

      

3.00%, 10/1/46

      1,212        1,205  

Pool #J00991,

      

4.00%, 1/1/21

      30        30  

Pool #J02541,

      

4.00%, 9/1/20

      16        16  

Pool #J03041,

      

6.00%, 7/1/21

      21        22  

Pool #J03736,

      

5.50%, 11/1/21

      37        39  

 

NORTHERN FUNDS QUARTERLY REPORT    59    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac Gold - 7.8% continued

      

Pool #J05307,

      

4.50%, 8/1/22

    $ 10      $ 10  

Pool #J06175,

      

5.00%, 5/1/21

      12        12  

Pool #J06465,

      

6.00%, 11/1/22

      12        12  

Pool #J06476,

      

5.50%, 11/1/22

      28        30  

Pool #J08098,

      

5.50%, 6/1/23

      34        36  

Pool #J08202,

      

5.00%, 7/1/23

      21        22  

Pool #J08454,

      

5.00%, 8/1/23

      58        62  

Pool #J08913,

      

5.50%, 10/1/23

      24        25  

Pool #J09148,

      

5.00%, 12/1/23

      51        52  

Pool #J09305,

      

5.00%, 2/1/24

      98        103  

Pool #J09463,

      

5.00%, 3/1/24

      46        47  

Pool #J11136,

      

4.00%, 11/1/24

      72        76  

Pool #J12098,

      

4.50%, 4/1/25

      434        461  

Pool #J14808,

      

3.50%, 3/1/26

      721        753  

Pool #J17055,

      

3.00%, 11/1/26

      407        417  

Pool #J17232,

      

3.00%, 11/1/26

      429        441  

Pool #J17932,

      

3.00%, 3/1/27

      686        705  

Pool #J20834,

      

2.50%, 10/1/27

      826        828  

Pool #J21601,

      

2.50%, 12/1/27

      3,056        3,064  

Pool #J22069,

      

2.50%, 1/1/28

      203        204  

Pool #J22986,

      

2.50%, 3/1/28

      1,680        1,685  

Pool #J23813,

      

2.00%, 5/1/28

      1,462        1,430  

Pool #J30435,

      

3.00%, 1/1/30

      877        902  

Pool #J31371,

      

2.50%, 4/1/30

      1,136        1,140  

Pool #J32223,

      

2.50%, 7/1/30

      819        821  

Pool #K90071,

      

3.00%, 2/1/33

      1,184        1,189  

Pool #K90641,

      

3.50%, 6/1/33

      192        199  

Pool #K90791,

      

3.00%, 7/1/33

      574        585  

Pool #K91490,

      

3.50%, 1/1/34

      1,078        1,115  

Pool #K92325,

      

3.00%, 1/1/35

      770        781  

Pool #Q02211,

      

4.50%, 7/1/41

      599        648  

Pool #Q02605,

      

4.50%, 8/1/41

      1,494        1,608  

Pool #Q03085,

      

4.00%, 9/1/41

      326        344  

Pool #Q04649,

      

3.50%, 11/1/41

      366        377  

Pool #Q08894,

      

3.50%, 6/1/42

      926        954  

Pool #Q09009,

      

4.00%, 6/1/42

      2,143        2,264  

Pool #Q10389,

      

3.50%, 8/1/42

      1,627        1,679  

Pool #Q10438,

      

3.50%, 8/1/42

      1,561        1,608  

Pool #Q14324,

      

3.00%, 1/1/43

      1,596        1,595  

Pool #Q14676,

      

3.00%, 1/1/43

      1,041        1,040  

Pool #Q15438,

      

3.00%, 2/1/43

      1,463        1,463  

Pool #Q15843,

      

3.00%, 2/1/43

      489        488  

 

FIXED INCOME INDEX FUNDS     60    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Freddie Mac Gold - 7.8% continued

      

Pool #Q18305,

      

3.50%, 5/1/43

    $ 2,735      $ 2,808  

Pool #Q18339,

      

3.00%, 5/1/43

      472        471  

Pool #Q19697,

      

3.00%, 6/1/43

      1,153        1,151  

Pool #Q19909,

      

3.00%, 7/1/43

      935        933  

Pool #Q20550,

      

3.00%, 8/1/43

      1,528        1,524  

Pool #Q21320,

      

3.50%, 8/1/43

      645        664  

Pool #Q24954,

      

4.00%, 2/1/44

      1,067        1,129  

Pool #Q27352,

      

3.50%, 7/1/44

      3,387        3,482  

Pool #Q27353,

      

4.00%, 7/1/44

      3,031        3,195  

Pool #Q29640,

      

4.00%, 11/1/44

      873        922  

Pool #Q36759,

      

3.50%, 10/1/45

      1,759        1,808  

Pool #Q37471,

      

4.00%, 11/1/45

      1,300        1,366  

Pool #Q37986,

      

3.50%, 12/1/45

      915        940  

Pool #Q40841,

      

3.00%, 6/1/46

      1,351        1,343  

Pool #Q43876,

      

3.00%, 10/1/46

      1,252        1,245  

Pool #V60268,

      

3.00%, 9/1/28

      1,514        1,557  

Pool #V60886,

      

2.50%, 8/1/30

      382        384  

Pool #V60902,

      

2.50%, 8/1/30

      289        290  

Pool #V61151,

      

2.50%, 5/1/31

      1,121        1,124  

Pool #V80003,

      

3.00%, 4/1/43

      2,173        2,172  

Pool #V80004,

      

3.00%, 4/1/43

      595        595  

Pool #V80058,

      

3.00%, 5/1/43

      964        964  

Pool TBA,

      

1/17/31(9)

      3,200        3,242  

1/17/46(9)

      9,000        9,219  
  

 

 

     

 

 

  
        203,512  
     

 

 

  

Government National Mortgage Association I - 1.2%

      

Pool #510835,

      

5.50%, 2/15/35

      39        44  

Pool #597889,

      

5.50%, 6/15/33

      218        245  

Pool #614169,

      

5.00%, 7/15/33

      80        88  

Pool #616879,

      

3.50%, 2/15/42

      718        752  

Pool #617739,

      

6.00%, 10/15/37

      17        19  

Pool #634431,

      

6.00%, 9/15/34

      22        25  

Pool #641416,

      

5.50%, 4/15/35

      171        193  

Pool #646341,

      

6.00%, 11/15/36

      61        70  

Pool #648538,

      

5.00%, 12/15/35

      66        72  

Pool #651753,

      

5.50%, 3/15/36

      19        21  

Pool #658560,

      

6.50%, 8/15/36

      53        60  

Pool #670030,

      

3.00%, 7/15/45

      895        905  

Pool #675211,

      

6.50%, 3/15/38

      25        28  

Pool #675484,

      

5.50%, 6/15/38

      124        139  

Pool #676360,

      

6.50%, 10/15/37

      16        19  

Pool #682899,

      

6.00%, 9/15/40

      208        235  

Pool #687824,

      

5.50%, 8/15/38

      165        185  

Pool #687900,

      

5.00%, 9/15/38

      175        193  

 

NORTHERN FUNDS QUARTERLY REPORT    61    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Government National Mortgage Association I - 1.2% continued

      

Pool #687901,

      

5.00%, 9/15/38

    $ 159       $ 174   

Pool #692309,

      

6.00%, 1/15/39

      95         108   

Pool #697645,

      

5.50%, 10/15/38

      54         60   

Pool #698236,

      

5.00%, 6/15/39

      485         536   

Pool #698336,

      

4.50%, 5/15/39

      529         574   

Pool #699277,

      

6.00%, 9/15/38

      43         49   

Pool #700918,

      

5.50%, 11/15/38

      198         221   

Pool #700972,

      

5.50%, 11/15/38

      36         40   

Pool #701196,

      

6.00%, 10/15/38

      66         75   

Pool #703677,

      

5.50%, 6/15/39

      182         203   

Pool #704185,

      

5.50%, 1/15/39

      48         54   

Pool #704514,

      

4.50%, 5/15/39

      879         962   

Pool #704624,

      

4.50%, 7/15/39

      2,525         2,769   

Pool #717175,

      

4.50%, 6/15/39

      556         607   

Pool #719262,

      

5.00%, 8/15/40

      235         261   

Pool #720065,

      

4.50%, 6/15/39

      1,843         2,014   

Pool #720202,

      

4.50%, 7/15/39

      416         456   

Pool #723231,

      

4.00%, 10/15/39

      360         382   

Pool #723339,

      

5.00%, 9/15/39

      240         267   

Pool #726085,

      

4.00%, 11/15/24

      213         222   

Pool #728629,

      

4.50%, 1/15/40

      802         876   

Pool #733663,

      

4.50%, 5/15/40

      1,849         2,016   

Pool #737286,

      

4.50%, 5/15/40

      651         712   

Pool #737416,

      

3.50%, 9/15/25

      134         141   

Pool #738134,

      

3.50%, 4/15/26

      293         309   

Pool #738247,

      

4.50%, 4/15/41

      301         327   

Pool #745215,

      

4.00%, 7/15/25

      140         145   

Pool #747643,

      

4.50%, 8/15/40

      1,068         1,157   

Pool #760874,

      

3.50%, 2/15/26

      218         230   

Pool #768800,

      

4.50%, 6/15/41

      159         174   

Pool #773939,

      

4.00%, 11/15/41

      815         878   

Pool #778957,

      

3.50%, 3/15/42

      865         910   

Pool #781939,

      

6.00%, 7/15/34

      339         393   

Pool #782131,

      

5.50%, 12/15/36

      80         90   

Pool #782150,

      

5.50%, 4/15/37

      92         103   

Pool #782259,

      

5.00%, 2/15/36

      165         182   

Pool #782272,

      

5.50%, 2/15/38

      172         192   

Pool #782498,

      

6.00%, 12/15/38

      84         96   

Pool #782565,

      

5.00%, 2/15/39

      1,827         2,018   

Pool #782584,

      

5.00%, 3/15/39

      120         132   

Pool #782675,

      

4.50%, 6/15/24

      139         150   

Pool #782696,

      

5.00%, 6/15/39

      426         470   

 

FIXED INCOME INDEX FUNDS     62    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

      

Government National Mortgage Association I - 1.2% continued

      

Pool #782831,

      

6.00%, 12/15/39

    $ 56       $ 64   

Pool #783176,

      

4.00%, 11/15/40

      941         1,002   

Pool #783467,

      

4.00%, 10/15/41

      3,034         3,233   

Pool #783740,

      

2.50%, 12/15/27

      370         375   

Pool #AA6089,

      

3.00%, 2/15/43

      561         569   

Pool #AB2891,

      

3.00%, 9/15/42

      339         344   

Pool #AD8781,

      

3.00%, 3/15/43

      507         515   

Pool #AD9016,

      

3.00%, 4/15/43

      593         601   

Pool #AL1763,

      

3.50%, 1/15/45

      368         384   
  

 

 

     

 

 

  
        32,115   
     

 

 

  

Government National Mortgage Association II - 6.9%

      

Pool #3570,

      

6.00%, 6/20/34

      68         79   

Pool #3665,

      

5.50%, 1/20/35

      201         226   

Pool #3852,

      

6.00%, 5/20/36

      34         38   

Pool #3879,

      

6.00%, 7/20/36

      102         115   

Pool #3910,

      

6.00%, 10/20/36

      52         60   

Pool #3994,

      

5.00%, 6/20/37

      36         40   

Pool #4018,

      

6.50%, 8/20/37

      123         144   

Pool #4026,

      

5.00%, 9/20/37

      46         50   

Pool #4027,

      

5.50%, 9/20/37

      25         28   

Pool #4040,

      

6.50%, 10/20/37

      25         29   

Pool #4098,

      

5.50%, 3/20/38

      158         175   

Pool #4116,

      

6.50%, 4/20/38

      58         68   

Pool #4170,

      

6.00%, 6/20/38

      124         140   

Pool #4194,

      

5.50%, 7/20/38

      293         324   

Pool #4243,

      

5.00%, 9/20/38

      72         80   

Pool #4244,

      

5.50%, 9/20/38

      83         92   

Pool #4245,

      

6.00%, 9/20/38

      48         54   

Pool #4269,

      

6.50%, 10/20/38

      61         70   

Pool #4290,

      

5.50%, 11/20/38

      57         63   

Pool #4344,

      

6.00%, 1/20/39

      102         115   

Pool #4345,

      

6.50%, 1/20/39

      68         78   

Pool #4425,

      

5.50%, 4/20/39

      180         199   

Pool #4559,

      

5.00%, 10/20/39

      410         454   

Pool #4561,

      

6.00%, 10/20/39

      225         258   

Pool #4617,

      

4.50%, 1/20/40

      121         131   

Pool #4619,

      

5.50%, 1/20/40

      389         430   

Pool #4713,

      

4.50%, 6/20/40

      359         386   

Pool #4747,

      

5.00%, 7/20/40

      317         349   

Pool #4881,

      

3.50%, 12/20/40

      1,259         1,315   

Pool #4882,

      

4.00%, 12/20/40

      2,910         3,121   

Pool #4923,

      

4.50%, 1/20/41

      281         303   

Pool #5050,

      

4.00%, 5/20/26

      254         264   

 

NORTHERN FUNDS QUARTERLY REPORT    63    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

 

Government National Mortgage Association II - 6.9% continued

 

Pool #5081,

      

4.00%, 6/20/41

    $ 479      $ 511  

Pool #5082,

      

4.50%, 6/20/41

      502        541  

Pool #5083,

      

5.00%, 6/20/41

      1,951        2,146  

Pool #5114,

      

4.00%, 7/20/41

      1,915        2,041  

Pool #5141,

      

5.00%, 8/20/41

      267        294  

Pool #5175,

      

4.50%, 9/20/41

      267        287  

Pool #5176,

      

5.00%, 9/20/41

      1,303        1,449  

Pool #5202,

      

3.50%, 10/20/41

      713        744  

Pool #5203,

      

4.00%, 10/20/41

      460        490  

Pool #5232,

      

3.50%, 11/20/41

      409        426  

Pool #5264,

      

5.50%, 12/20/41

      36        40  

Pool #5280,

      

4.00%, 1/20/42

      508        541  

Pool #5304,

      

3.50%, 2/20/42

      504        527  

Pool #5317,

      

5.50%, 2/20/42

      253        282  

Pool #5326,

      

3.00%, 3/20/27

      711        734  

Pool #5331,

      

3.50%, 3/20/42

      814        850  

Pool #626951,

      

3.00%, 6/20/45

      771        783  

Pool #654804,

      

6.00%, 5/20/36

      38        43  

Pool #737602,

      

4.00%, 11/20/40

      500        537  

Pool #752757,

      

4.50%, 11/20/40

      665        737  

Pool #755677,

      

4.00%, 12/20/40

      395        421  

Pool #766711,

      

4.00%, 5/20/42

      1,872        2,018  

Pool #782433,

      

6.00%, 10/20/38

      181        205  

Pool #783976,

      

3.50%, 4/20/43

      5,743        5,998  

Pool #AA5970,

      

3.00%, 1/20/43

      1,748        1,774  

Pool #AA6054,

      

3.00%, 2/20/43

      2,428        2,465  

Pool #AA6149,

      

3.00%, 3/20/43

      1,786        1,812  

Pool #AA6160,

      

3.50%, 3/20/43

      645        673  

Pool #AA6243,

      

3.50%, 4/20/43

      259        270  

Pool #AB9443,

      

3.50%, 11/20/42

      1,002        1,042  

Pool #AD1755,

      

3.50%, 2/20/43

      1,072        1,117  

Pool #AD8825,

      

3.50%, 3/20/43

      637        664  

Pool #AF5097,

      

4.00%, 8/20/43

      1,885        2,018  

Pool #AJ0645,

      

3.50%, 7/20/44

      630        657  

Pool #AJ0789,

      

3.50%, 8/20/45

      4,561        4,754  

Pool #AJ3643,

      

4.00%, 10/20/44

      1,178        1,261  

Pool #AK6867,

      

3.50%, 1/20/45

      3,454        3,600  

Pool #AO7525,

      

3.50%, 8/20/45

      2,824        2,943  

Pool #AO7682,

      

4.00%, 8/20/45

      1,200        1,293  

Pool #MA0006,

      

2.50%, 4/20/27

      258        261  

Pool #MA0022,

      

3.50%, 4/20/42

      823        859  

Pool #MA0088,

      

3.50%, 5/20/42

      1,834        1,914  

 

FIXED INCOME INDEX FUNDS    64    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

 

Government National Mortgage Association II - 6.9% continued

 

Pool #MA0220,

      

3.50%, 7/20/42

    $ 958      $ 1,001  

Pool #MA0318,

      

3.50%, 8/20/42

      1,775        1,854  

Pool #MA0321,

      

5.00%, 8/20/42

      515        560  

Pool #MA0391,

      

3.00%, 9/20/42

      3,623        3,684  

Pool #MA0392,

      

3.50%, 9/20/42

      758        791  

Pool #MA0698,

      

3.00%, 1/20/43

      858        873  

Pool #MA0851,

      

3.00%, 3/20/43

      1,256        1,277  

Pool #MA0852,

      

3.50%, 3/20/43

      1,530        1,597  

Pool #MA0933,

      

3.00%, 4/20/43

      1,551        1,577  

Pool #MA0934,

      

3.50%, 4/20/43

      523        546  

Pool #MA1011,

      

3.00%, 5/20/43

      1,489        1,514  

Pool #MA1012,

      

3.50%, 5/20/43

      1,363        1,423  

Pool #MA1064,

      

2.50%, 6/20/28

      897        908  

Pool #MA1089,

      

3.00%, 6/20/43

      1,605        1,632  

Pool #MA1224,

      

3.50%, 8/20/43

      1,234        1,289  

Pool #MA1285,

      

3.50%, 9/20/43

      699        730  

Pool #MA1839,

      

4.00%, 4/20/44

      436        463  

Pool #MA1851,

      

2.50%, 4/20/44(1)

      127        129  

Pool #MA1920,

      

4.00%, 5/20/44

      475        505  

Pool #MA2224,

      

4.00%, 9/20/44

      2,530        2,689  

Pool #MA2444,

      

3.00%, 12/20/44

      345        350  

Pool #MA2521,

      

3.50%, 1/20/45

      1,471        1,530  

Pool #MA2522,

      

4.00%, 1/20/45

      546        581  

Pool #MA2677,

      

3.00%, 3/20/45

      765        775  

Pool #MA2753,

      

3.00%, 4/20/45

      1,974        2,001  

Pool #MA2754,

      

3.50%, 4/20/45

      884        920  

Pool #MA2891,

      

3.00%, 6/20/45

      2,099        2,129  

Pool #MA2892,

      

3.50%, 6/20/45

      761        792  

Pool #MA2935,

      

3.00%, 7/20/30

      1,308        1,351  

Pool #MA2960,

      

3.00%, 7/20/45

      1,582        1,604  

Pool #MA3034,

      

3.50%, 8/20/45

      2,098        2,183  

Pool #MA3106,

      

4.00%, 9/20/45

      2,129        2,263  

Pool #MA3172,

      

3.00%, 10/20/45

      416        422  

Pool #MA3173,

      

3.50%, 10/20/45

      8,795        9,151  

Pool #MA3174,

      

4.00%, 10/20/45

      1,153        1,227  

Pool #MA3244,

      

3.50%, 11/20/45

      1,571        1,634  

Pool #MA3245,

      

4.00%, 11/20/45

      4,102        4,360  

Pool #MA3310,

      

3.50%, 12/20/45

      3,320        3,454  

Pool #MA3320,

      

2.50%, 12/20/45(1)

      461        467  

Pool #MA3322,

      

3.00%, 12/20/45(1)

      590        602  

Pool #MA3378,

      

4.50%, 1/20/46

      2,466        2,635  

Pool #MA3400,

      

2.00%, 1/20/46(1)

      188        190  

 

NORTHERN FUNDS QUARTERLY REPORT    65    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT AGENCIES - 31.3%(8) continued

 

Government National Mortgage Association II - 6.9% continued

 

Pool #MA3521,

      

3.50%, 3/20/46

    $ 3,126      $ 3,253  

Pool #MA3522,

      

4.00%, 3/20/46

      996        1,059  

Pool #MA3596,

      

3.00%, 4/20/46

      1,771        1,796  

Pool #MA3597,

      

3.50%, 4/20/46

      3,123        3,250  

Pool #MA3662,

      

3.00%, 5/20/46

      2,773        2,812  

Pool #MA3663,

      

3.50%, 5/20/46

      1,896        1,973  

Pool #MA3664,

      

4.00%, 5/20/46

      982        1,044  

Pool #MA3735,

      

3.00%, 6/20/46

      3,313        3,359  

Pool #MA3736,

      

3.50%, 6/20/46

      2,447        2,546  

Pool #MA3777,

      

2.50%, 7/20/31

      289        292  

Pool #MA3778,

      

3.00%, 7/20/31

      381        394  

Pool #MA3802,

      

3.00%, 7/20/46

      3,853        3,907  

Pool #MA3803,

      

3.50%, 7/20/46

      3,633        3,781  

Pool #MA3873,

      

3.00%, 8/20/46

      1,465        1,486  

Pool #MA3874,

      

3.50%, 8/20/46

      1,648        1,715  

Pool #MA3936,

      

3.00%, 9/20/46

      3,263        3,309  

Pool #MA4003,

      

3.00%, 10/20/46

      2,148        2,179  

Pool #MA4026,

      

2.00%, 10/20/46(1)

      173        174  

Pool #MA4067,

      

11/20/46(9)

      1,493        1,450  

Pool TBA,

      

1/17/46(9)

      13,400        13,728  
  

 

 

     

 

 

  
        180,470  
     

 

 

  

Tennessee Valley Authority - 0.1%

      

5.25%, 9/15/39

      1,650        2,072  
  

 

 

     

 

 

  

Total U.S. Government Agencies

(Cost $818,371)

         818,933  
     

 

 

  

U.S. GOVERNMENT OBLIGATIONS - 32.7%

      

U.S. Treasury Bonds - 6.6%

      

8.75%, 8/15/20

      450        562  

8.00%, 11/15/21

      1,125        1,441  

7.13%, 2/15/23

      2,000        2,576  

6.25%, 8/15/23

      6,550        8,188  

7.63%, 2/15/25

      165        230  

6.00%, 2/15/26

      9,750        12,608  

6.13%, 11/15/27

      9,000        12,078  

6.25%, 5/15/30

      6,000        8,488  

5.38%, 2/15/31

      4,000        5,328  

4.50%, 2/15/36

      475        601  

4.38%, 2/15/38

      1,890        2,349  

4.50%, 5/15/38

      1,700        2,147  

3.50%, 2/15/39

      6,000        6,562  

4.25%, 5/15/39

      4,250        5,160  

4.50%, 8/15/39

      8,000        10,046  

4.38%, 11/15/39

      7,000        8,641  

4.63%, 2/15/40

      5,250        6,709  

4.38%, 5/15/40

      1,000        1,236  

3.75%, 8/15/41

      4,000        4,505  

3.13%, 2/15/42

      2,000        2,030  

2.75%, 8/15/42

      2,500        2,362  

3.38%, 5/15/44

      5,000        5,302  

3.00%, 11/15/44

      7,000        6,915  

2.50%, 2/15/45

      6,000        5,344  

3.00%, 5/15/45

      13,000        12,824  

3.00%, 11/15/45

      28,000        27,617  

2.50%, 5/15/46

      8,000        7,109  

2.25%, 8/15/46

      5,000        4,204  
  

 

 

     

 

 

  
        173,162  
     

 

 

  

U.S. Treasury Notes - 26.1%

      

1.00%, 9/15/17

      30,000        30,047  

0.75%, 12/31/17

      10,000        9,984  

0.88%, 1/15/18

      25,000        24,988  

0.88%, 1/31/18

      10,000        9,993  

3.50%, 2/15/18

      6,250        6,425  

0.75%, 2/28/18

      5,000        4,988  

3.88%, 5/15/18

      3,300        3,429  

 

FIXED INCOME INDEX FUNDS    66    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 32.7% continued

      

U.S. Treasury Notes - 26.1% continued

      

0.63%, 6/30/18

    $ 10,000       $ 9,937   

1.38%, 6/30/18

      2,600         2,612   

0.88%, 7/15/18

      15,000         14,952   

1.38%, 7/31/18

      10,000         10,045   

1.50%, 8/31/18

      17,030         17,136   

3.75%, 11/15/18

      2,300         2,410   

1.50%, 12/31/18

      10,000         10,058   

1.13%, 1/15/19

      5,000         4,990   

0.75%, 2/15/19

      5,000         4,950   

2.75%, 2/15/19

      18,000         18,565   

1.38%, 2/28/19

      4,000         4,011   

1.50%, 2/28/19

      5,000         5,027   

1.63%, 4/30/19

      10,000         10,078   

0.88%, 6/15/19

      10,000         9,895   

1.63%, 6/30/19

      10,000         10,075   

0.88%, 7/31/19

      2,000         1,977   

1.63%, 7/31/19

      10,000         10,070   

3.63%, 8/15/19

      18,000         19,055   

1.75%, 9/30/19

      30,000         30,295   

1.00%, 11/15/19

      1,000         988   

3.38%, 11/15/19

      16,000         16,881   

1.63%, 12/31/19

      2,500         2,512   

3.63%, 2/15/20

      5,000         5,321   

1.38%, 3/31/20

      2,280         2,268   

1.13%, 4/30/20

      3,000         2,959   

3.50%, 5/15/20

      5,000         5,315   

1.38%, 5/31/20

      15,000         14,905   

1.50%, 5/31/20

      20,000         19,939   

2.63%, 8/15/20

      3,000         3,102   

2.63%, 11/15/20

      3,000         3,101   

1.63%, 11/30/20

      10,000         9,960   

1.75%, 12/31/20

      10,000         9,997   

1.38%, 1/31/21

      10,000         9,840   

3.63%, 2/15/21

      12,000         12,881   

1.13%, 2/28/21

      29,000         28,217   

1.38%, 5/31/21

      12,000         11,761   

1.13%, 6/30/21

      20,000         19,357   

2.13%, 6/30/21

      1,740         1,759   

2.13%, 8/15/21

      36,000         36,342   

2.13%, 6/30/22

      4,000         4,014   

1.63%, 8/15/22

      19,000         18,529   

2.13%, 12/31/22

      5,000         4,997   

1.50%, 2/28/23

      10,000         9,618   

1.63%, 4/30/23

      20,000         19,344   

1.63%, 5/31/23

      1,000         966   

2.75%, 11/15/23

      5,000         5,165   

2.50%, 5/15/24

      20,000         20,299   

2.38%, 8/15/24

      24,000         24,112   

2.25%, 11/15/24

      3,000         2,982   

2.25%, 11/15/25

      9,525         9,403   

1.63%, 2/15/26

      39,660         37,057   

1.63%, 5/15/26

      25,000         23,312   
  

 

 

     

 

 

  
        683,195   
     

 

 

  

Total U.S. Government Obligations

(Cost $851,686)

         856,357   
     

 

 

  

MUNICIPAL BONDS - 0.8%

      

Arizona - 0.0%

      

Phoenix Taxable G.O. Unlimited Bonds, Series A, Build America Bonds,

      

5.27%, 7/1/34

      100         115   

Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Build America Bonds,

      

4.84%, 1/1/41

      110         126   
  

 

 

     

 

 

  
        241   
     

 

 

  

California - 0.3%

      

Bay Area Toll Bridge Authority Revenue Bonds, Build America Bonds,

      

6.26%, 4/1/49

      425         577   

Bay Area Toll Bridge Authority Subordinate Revenue Bonds, Series S1, Build America Bonds,

      

7.04%, 4/1/50

      150         212   

Bay Area Toll Bridge Authority Taxable Revenue Bonds, Series S3, Build America Bonds,

      

6.91%, 10/1/50

      150         211   

California State G.O. Unlimited Bonds, Build America Bonds,

      

7.70%, 11/1/30

      135         161   

7.30%, 10/1/39

      920         1,299   

7.63%, 3/1/40

      405         595   

7.60%, 11/1/40

      400         602   

 

NORTHERN FUNDS QUARTERLY REPORT    67    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 0.8% continued

      

California - 0.3% continued

      

California State Public Works Board Lease Revenue Bonds, Series G-2, Build America Bonds,

      

8.36%, 10/1/34

    $ 50       $ 72   

California State Various Purpose Taxable G.O. Unlimited Bonds,

      

6.20%, 3/1/19

      200         219   

California State Various Purpose Taxable G.O. Unlimited Bonds, Build America Bonds,

      

7.55%, 4/1/39

      585         869   

East Bay Municipal Utility District Water System Subordinated Revenue Bonds, Build America Bonds,

      

5.87%, 6/1/40

      300         379   

Los Angeles Community College District G.O. Unlimited Bonds, Build America Bonds,

      

6.75%, 8/1/49

      150         216   

Los Angeles Department of Airports Direct Pay Revenue Bonds, Build America Bonds,

      

6.58%, 5/15/39

      250         320   

Los Angeles Unified School District G.O. Unlimited Bonds, Series RY, Build America Bonds,

      

6.76%, 7/1/34

      290         389   

Los Angeles Unified School District Taxable G.O. Unlimited Bonds, Series KR, Build America Bonds,

      

5.75%, 7/1/34

      335         413   

Metropolitan Water District of Southern California Revenue Bonds, Issuer Subseries A, Build America Bonds,

      

6.95%, 7/1/40

      100         115   

San Diego County Water Authority Financing Agency Revenue Bonds, Series B, Build America Bonds,

      

6.14%, 5/1/49

      100         130   

San Francisco City & County Public Utilities Commission Water Revenue Bonds, Build America Bonds,

      

6.95%, 11/1/50

      75         105   

San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series B, Build America Bonds,

      

6.00%, 11/1/40

      300         366   

University of California Revenue Bonds, Build America Bonds,

      

6.27%, 5/15/31

      200         219   

5.95%, 5/15/45

      150         185   
  

 

 

     

 

 

  
        7,654   
     

 

 

  

Colorado - 0.0%

      

Denver City & County G.O. Unlimited Bonds, Build America Bonds,

      

5.65%, 8/1/30

      250         274   

Denver City & County School District No. 1 Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (State Aid Withholding),

      

5.66%, 12/1/33

      50         62   
  

 

 

     

 

 

  
        336   
     

 

 

  

Connecticut - 0.0%

      

Connecticut State G.O. Unlimited Bonds, Build America Bonds,

      

5.63%, 12/1/29

      165         193   

Connecticut State G.O. Unlimited Bonds, Series A,

      

5.85%, 3/15/32

      300         366   
  

 

 

     

 

 

  
        559   
     

 

 

  

District of Columbia - 0.0%

      

District of Columbia Income Tax Secured Revenue Bonds, Series E, Build America Bonds,

      

5.59%, 12/1/34

      30         36   
  

 

 

     

 

 

  

Florida - 0.0%

      

Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A,

      

2.11%, 7/1/18

      500         505   
  

 

 

     

 

 

  

Georgia - 0.0%

      

Municipal Electric Authority of Georgia Revenue Bonds, Build America Bonds,

      

6.66%, 4/1/57

      100         122   

 

FIXED INCOME INDEX FUNDS    68    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 0.8% continued

      

Georgia - 0.0% continued

      

Municipal Electric Authority of Georgia Taxable Revenue Bonds, Build America Bonds,

      

6.64%, 4/1/57

    $ 70       $ 86   

7.06%, 4/1/57

      300         340   
  

 

 

     

 

 

  
        548   
     

 

 

  

Illinois - 0.1%

      

Chicago Transit Authority Sales & Transfer Tax Receipts Pension Funding Taxable Revenue Bonds, Series A,

      

6.90%, 12/1/40

      300         374   

Chicago Transit Authority Sales Tax Receipts Revenue Bonds, Series B, Build America Bonds,

      

6.20%, 12/1/40

      140         164   

Illinois State Taxable G.O. Unlimited Bonds,

      

5.67%, 3/1/18

      300         310   

Illinois State Taxable Pension G.O. Unlimited Bonds,

      

5.10%, 6/1/33

      705         630   
  

 

 

     

 

 

  
        1,478   
     

 

 

  

Massachusetts - 0.0%

      

Massachusetts State G.O. Limited Bonds, Series D, Build America Bonds,

      

4.50%, 8/1/31

      250         279   

Massachusetts State School Building Authority Sales TRB, Build America Bonds,

      

5.72%, 8/15/39

      100         126   
  

 

 

     

 

 

  
        405   
     

 

 

  

Mississippi - 0.0%

      

Mississippi State Taxable G.O. Unlimited Bonds, Series F, Build America Bonds,

      

5.25%, 11/1/34

      100         120   
  

 

 

     

 

 

  

Nevada - 0.0%

      

Clark County Airport Revenue Bonds, Series B, Build America Bonds,

      

6.88%, 7/1/42

      355         397   

Clark County Airport System Taxable Revenue Bonds, Series C, Build America Bonds,

      

6.82%, 7/1/45

      200         281   
  

 

 

     

 

 

  
        678   
     

 

 

  

New Jersey - 0.1%

      

New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, Build America Bonds,

      

6.56%, 12/15/40

      200         220   

New Jersey State Transportation Trust Fund Authority Taxable Revenue Bonds, Series C, Build America Bonds,

      

6.10%, 12/15/28

      300         316   

New Jersey State Turnpike Authority Taxable Revenue Bonds, Series F, Build America Bonds,

      

7.41%, 1/1/40

      125         180   

Rutgers State University Revenue Bonds, Build America Bonds,

      

5.67%, 5/1/40

      145         170   
  

 

 

     

 

 

  
        886   
     

 

 

  

New York - 0.1%

      

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Build America Bonds,

      

7.34%, 11/15/39

      75         110   

Metropolitan Transportation Authority Taxable Revenue Bonds, Build America Bonds,

      

6.69%, 11/15/40

      100         132   

6.81%, 11/15/40

      60         80   

New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Build America Bonds,

      

5.75%, 6/15/41

      200         257   

5.72%, 6/15/42

      250         318   

 

NORTHERN FUNDS QUARTERLY REPORT    69    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 0.8% continued

      

New York - 0.1% continued

      

New York City Transitional Finance Authority Future Tax Secured Taxable Revenue Bonds, Build America Bonds,

      

5.77%, 8/1/36

    $ 300       $ 371   

New York G.O. Unlimited Bonds, Series H-1, Build America Bonds,

      

5.52%, 10/1/37

      100         121   

5.85%, 6/1/40

      85         108   

New York State Dormitory Authority Personal Income Taxable Revenue Bonds, Series F, Build America Bonds,

      

5.63%, 3/15/39

      75         92   

New York State Dormitory Authority Personal Income TRB, Build America Bonds,

      

5.60%, 3/15/40

      250         309   

New York State Urban Development Corp. Taxable Revenue Bonds, Build America Bonds,

      

5.77%, 3/15/39

      100         120   

New York Taxable G.O. Unlimited Bonds, Series F-1, Build America Bonds,

      

6.65%, 12/1/31

      225         257   

Port Authority of New York & New Jersey Consolidated 164th Taxable Revenue Bonds,

      

5.65%, 11/1/40

      550         663   

Port Authority of New York & New Jersey Consolidated 168th Revenue Bonds,

      

4.93%, 10/1/51

      250         277   
  

 

 

     

 

 

  
        3,215   
     

 

 

  

Ohio - 0.1%

      

American Municipal Power-Ohio, Inc. Revenue Bonds, Issuer Subseries B, Build America Bonds,

      

6.45%, 2/15/44

      200         246   

American Municipal Power-Ohio, Inc. Taxable Revenue Bonds, Series B, Build America Bonds, Combined Hydroelectric Projects,

      

8.08%, 2/15/50

      300         455   

Northeast Regional Sewer District Improvement Taxable Revenue Bonds, Build America Bonds,

      

6.04%, 11/15/40

      145         162   

Ohio State University Revenue Bonds, Series C, Build America Bonds,

      

4.91%, 6/1/40

      190         217   

Ohio State University Taxable Revenue Bonds, Series A,

      

4.80%, 6/1/11(3)

      200         194   

Ohio State Water Quality Development Authority Pollution Control Taxable Revenue Bonds, Series B-2, Loan Fund,

      

4.88%, 12/1/34

      90         101   
  

 

 

     

 

 

  
        1,375   
     

 

 

  

Oregon - 0.0%

      

Oregon State Department of Transportation Highway User Taxable Revenue Bonds, Series A, Subordinate Lien, Build America Bonds,

      

5.83%, 11/15/34

      200         252   
  

 

 

     

 

 

  

Pennsylvania - 0.0%

      

State Public School Building Authority Taxable Revenue Bonds, Series A, Qualified School Construction Bonds,

      

5.00%, 9/15/27

      200         206   
  

 

 

     

 

 

  

Tennessee - 0.0%

      

Metropolitan Government of Nashville & Davidson County Convention Center Authority Subordinate Taxable Revenue Bonds, Series B, Build America Bonds,

      

6.73%, 7/1/43

      100         129   
  

 

 

     

 

 

  

Texas - 0.1%

      

Dallas Area Rapid Transit Sales TRB, Build America Bonds,

      

5.02%, 12/1/48

      180         210   

Dallas Independent School District Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (PSF-Gtd.),

      

6.45%, 2/15/35

      200         230   

 

FIXED INCOME INDEX FUNDS    70    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 0.8% continued

      

Texas - 0.1% continued

      

Houston Taxable Pension Obligation G.O. Limited Refunding Bonds, Series A,

      

6.29%, 3/1/32

    $ 285      $ 339  

North Texas Tollway Authority Revenue Bonds, Series B, Build America Bonds,

      

6.72%, 1/1/49

      125        174  

San Antonio Electric & Gas Revenue Bonds, Build America Bonds,

      

5.99%, 2/1/39

      200        256  

Texas State Taxable G.O. Unlimited Bonds, Build America Bonds,

      

5.52%, 4/1/39

      200        253  

Texas State Transportation Commission State Highway Fund Taxable Revenue Bonds, Series B, First Tier,

      

5.18%, 4/1/30

      300        354  

University of Texas Revenue Bonds, Series C, Build America Bonds,

      

4.79%, 8/15/46

      100        115  

University of Texas Revenue Bonds, Series D, Build America Bonds,

      

5.13%, 8/15/42

      190        227  
  

 

 

     

 

 

  
        2,158  
     

 

 

  

Utah - 0.0%

      

Utah State G.O. Unlimited Bonds, Series B, Build America Bonds,

      

3.54%, 7/1/25

      95        100  
  

 

 

     

 

 

  

Washington - 0.0%

      

Central Puget Sound Regional Transportation Authority Sales & Use TRB, Build America Bonds,

      

5.49%, 11/1/39

      80        100  

Washington State Convention Center Public Facilities District Revenue Bonds, Build America Bonds,

      

6.79%, 7/1/40

      100        126  

Washington State G.O. Unlimited Bonds, Series F, Build America Bonds,

      

5.14%, 8/1/40

      100        119  
  

 

 

     

 

 

  
        345  
     

 

 

  

Total Municipal Bonds

(Cost $17,705)

         21,226  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

OTHER - 0.0%

      

Escrow Lehman Brothers Holdings Capital Trust VII(10) (11)

      50,000      $ —    
  

 

 

     

 

 

  

Total Other

(Cost $39)

         —    
     

 

 

  

INVESTMENT COMPANIES - 2.0%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(12) (13)

     52,069,660        52,070  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $52,070)

         52,070  
     

 

 

  

Total Investments - 101.3%

(Cost $2,630,832)

         2,650,639  
     

 

 

  

Liabilities less Other Assets - (1.3%)

         (34,982 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 2,615,657  
     

 

 

  

 

(1) Variable rate security. Rate as of December 31, 2016 is disclosed.
(2) Step coupon bond. Rate as of December 31, 2016 is disclosed.
(3) Century bond maturing in 2111.
(4) Century bond maturing in 2114.
(5) Century bond maturing in 2112.
(6) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(7) Zero coupon bond.
(8) The obligations of certain U.S. government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(9) When-Issued Security. Coupon rate is not in effect at December 31, 2016.
(10) Issuer has defaulted on terms of debt obligation.
(11) Level 3 asset that is worthless, bankrupt or has been delisted.
(12) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(13) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

 

NORTHERN FUNDS QUARTERLY REPORT    71    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

 

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      40.3 % 

U.S. Agency

      22.9   

AAA

      4.4   

AA

      4.3   

A

      12.5   

BBB

      13.6   

BB

      —   (1) 

Cash Equivalents

      2.0   
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

(1) Amount rounds to less than 0.01.
* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Asset-Backed Securities(1)

    $ —         $ 40,278       $ —         $ 40,278   

Corporate Bonds(1)

      —           630,839         —           630,839   

Foreign Issuer Bonds(1)

      —           230,936         —           230,936   

U.S. Government Agencies(1)

      —           818,933         —           818,933   

U.S. Government Obligations(1)

      —           856,357         —           856,357   

Municipal Bonds(1)

      —           21,226         —           21,226   

Investment Companies

      52,070         —           —           52,070   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 52,070       $ 2,598,569       $ —         $ 2,650,639   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 2,630,951   
  

 

 

  

Gross tax appreciation of investments

    $ 53,286   

Gross tax depreciation of investments

      (33,598 ) 
  

 

 

  

Net tax appreciation of investments

    $ 19,688   
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 108,568       $ 453,416       $ 509,914       $ 146       $ 52,070   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

FIXED INCOME INDEX FUNDS    72    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

Fannie Mae - Federal National Mortgage Association

Freddie Mac - Federal Home Loan Mortgage Corporation

FHLMC - Federal Home Loan Mortgage Corporation

G.O. - General Obligation

Gtd. - Guaranteed

PSF - Permanent School Fund

TBA - To Be Announced

TRB - Tax Revenue Bonds

 

NORTHERN FUNDS QUARTERLY REPORT    73    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

U.S. TREASURY INDEX FUND    DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 98.6%

      

U.S. Treasury Bonds - 15.3%

      

6.00%, 2/15/26

    $ 10      $ 13  

6.50%, 11/15/26

      75        102  

6.38%, 8/15/27

      115        157  

6.13%, 11/15/27

      75        101  

5.50%, 8/15/28

      150        194  

5.25%, 11/15/28

      100        127  

6.13%, 8/15/29

      50        69  

6.25%, 5/15/30

      175        248  

5.38%, 2/15/31

      200        266  

4.50%, 2/15/36

      190        240  

4.75%, 2/15/37

      125        163  

5.00%, 5/15/37

      100        134  

4.38%, 2/15/38

      150        186  

4.50%, 5/15/38

      95        120  

3.50%, 2/15/39

      260        284  

4.25%, 5/15/39

      200        243  

4.50%, 8/15/39

      175        220  

4.38%, 11/15/39

      250        309  

4.63%, 2/15/40

      335        428  

4.38%, 5/15/40

      290        358  

3.88%, 8/15/40

      300        344  

4.25%, 11/15/40

      275        334  

4.75%, 2/15/41

      295        385  

4.38%, 5/15/41

      290        359  

3.75%, 8/15/41

      255        287  

3.13%, 11/15/41

      195        198  

3.13%, 2/15/42

      300        304  

3.00%, 5/15/42

      255        253  

2.75%, 8/15/42

      380        359  

2.75%, 11/15/42

      415        392  

3.13%, 2/15/43

      505        512  

2.88%, 5/15/43

      625        604  

3.63%, 8/15/43

      600        665  

3.75%, 11/15/43

      730        828  

3.63%, 2/15/44

      650        720  

3.38%, 5/15/44

      700        742  

3.13%, 8/15/44

      625        633  

3.00%, 11/15/44

      705        696  

2.50%, 2/15/45

      650        579  

3.00%, 5/15/45

      650        641  

2.88%, 8/15/45

      675        650  

3.00%, 11/15/45

      680        671  

2.50%, 2/15/46

      600        533  

2.50%, 5/15/46

      675        600  

2.25%, 8/15/46

      675        568  

2.88%, 11/15/46

      450        434  
  

 

 

     

 

 

  
        17,253  
     

 

 

  

U.S. Treasury Notes - 83.3%

      

0.75%, 1/31/18

      500        499  

0.88%, 1/31/18

      700        699  

1.00%, 2/15/18

      500        500  

3.50%, 2/15/18

      350        360  

0.75%, 2/28/18

      1,150        1,147  

1.00%, 3/15/18

      400        400  

0.75%, 3/31/18

      550        548  

0.88%, 3/31/18

      750        749  

2.88%, 3/31/18

      250        256  

0.75%, 4/15/18

      250        249  

0.63%, 4/30/18

      500        498  

2.63%, 4/30/18

      200        204  

1.00%, 5/15/18

      350        350  

3.88%, 5/15/18

      150        156  

0.88%, 5/31/18

      250        249  

1.00%, 5/31/18

      850        850  

1.13%, 6/15/18

      450        450  

0.63%, 6/30/18

      650        646  

1.38%, 6/30/18

      400        402  

0.88%, 7/15/18

      800        797  

0.75%, 7/31/18

      500        497  

1.38%, 7/31/18

      400        402  

1.00%, 8/15/18

      750        749  

0.75%, 8/31/18

      500        497  

1.50%, 8/31/18

      765        770  

1.00%, 9/15/18

      400        399  

0.75%, 9/30/18

      500        497  

1.38%, 9/30/18

      750        753  

0.88%, 10/15/18

      350        348  

0.75%, 10/31/18

      300        298  

1.25%, 10/31/18

      500        501  

1.75%, 10/31/18

      200        202  

1.25%, 11/15/18

      300        300  

3.75%, 11/15/18

      400        419  

1.00%, 11/30/18

      400        399  

1.25%, 11/30/18

      500        501  

1.38%, 11/30/18

      250        251  

1.25%, 12/15/18

      550        551  

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

U.S. TREASURY INDEX FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 98.6% continued

      

U.S. Treasury Notes - 83.3% continued

      

1.38%, 12/31/18

    $ 250      $ 251  

1.50%, 12/31/18

      550        553  

1.13%, 1/15/19

      500        499  

1.25%, 1/31/19

      350        350  

1.50%, 1/31/19

      450        452  

0.75%, 2/15/19

      400        396  

2.75%, 2/15/19

      400        413  

1.38%, 2/28/19

      500        501  

1.50%, 2/28/19

      400        402  

1.00%, 3/15/19

      500        497  

1.50%, 3/31/19

      200        201  

1.63%, 3/31/19

      600        605  

0.88%, 4/15/19

      500        495  

1.25%, 4/30/19

      200        200  

1.63%, 4/30/19

      550        554  

0.88%, 5/15/19

      450        446  

3.13%, 5/15/19

      500        521  

1.13%, 5/31/19

      150        149  

1.50%, 5/31/19

      600        603  

0.88%, 6/15/19

      500        495  

1.63%, 6/30/19

      750        756  

0.75%, 7/15/19

      400        394  

0.88%, 7/31/19

      365        361  

1.63%, 7/31/19

      500        503  

0.75%, 8/15/19

      500        492  

1.00%, 8/31/19

      675        669  

1.63%, 8/31/19

      250        252  

0.88%, 9/15/19

      500        493  

1.00%, 9/30/19

      175        173  

1.75%, 9/30/19

      500        505  

1.00%, 10/15/19

      500        495  

1.50%, 10/31/19

      1,000        1,002  

1.00%, 11/15/19

      1,100        1,087  

1.00%, 11/30/19

      355        351  

1.50%, 11/30/19

      500        501  

1.63%, 12/31/19

      1,200        1,206  

1.25%, 1/31/20

      1,000        993  

1.38%, 1/31/20

      350        349  

3.63%, 2/15/20

      500        532  

1.25%, 2/29/20

      350        347  

1.38%, 2/29/20

      150        149  

1.13%, 3/31/20

      250        247  

1.38%, 3/31/20

      200        199  

1.13%, 4/30/20

      1,000        986  

3.50%, 5/15/20

      350        372  

1.38%, 5/31/20

      400        397  

1.50%, 5/31/20

      1,300        1,296  

1.63%, 6/30/20

      550        550  

1.63%, 7/31/20

      600        600  

2.00%, 7/31/20

      200        203  

2.63%, 8/15/20

      300        310  

1.38%, 8/31/20

      1,000        990  

2.13%, 8/31/20

      335        340  

1.38%, 9/30/20

      1,000        989  

1.38%, 10/31/20

      805        795  

1.75%, 10/31/20

      480        481  

2.63%, 11/15/20

      585        605  

1.63%, 11/30/20

      500        498  

2.00%, 11/30/20

      325        328  

1.75%, 12/31/20

      765        765  

1.38%, 1/31/21

      1,050        1,033  

2.13%, 1/31/21

      175        177  

3.63%, 2/15/21

      550        590  

1.13%, 2/28/21

      700        681  

2.00%, 2/28/21

      390        393  

1.25%, 3/31/21

      650        635  

2.25%, 3/31/21

      350        356  

1.38%, 4/30/21

      550        540  

2.25%, 4/30/21

      375        382  

3.13%, 5/15/21

      475        501  

1.38%, 5/31/21

      850        833  

2.00%, 5/31/21

      350        352  

1.13%, 6/30/21

      600        581  

2.13%, 6/30/21

      450        455  

1.13%, 7/31/21

      550        532  

2.25%, 7/31/21

      475        482  

2.13%, 8/15/21

      750        757  

1.13%, 8/31/21

      500        483  

2.00%, 8/31/21

      500        502  

1.13%, 9/30/21

      550        530  

2.13%, 9/30/21

      450        454  

1.25%, 10/31/21

      600        582  

2.00%, 10/31/21

      400        401  

2.00%, 11/15/21

      725        727  

1.75%, 11/30/21

      850        844  

1.88%, 11/30/21

      550        549  

 

FIXED INCOME INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 98.6% continued

      

U.S. Treasury Notes - 83.3% continued

      

2.00%, 12/31/21

    $ 500      $ 502  

2.13%, 12/31/21

      475        479  

1.50%, 1/31/22

      500        489  

2.00%, 2/15/22

      425        426  

1.75%, 2/28/22

      500        494  

1.75%, 3/31/22

      510        503  

1.75%, 4/30/22

      450        444  

1.75%, 5/15/22

      375        369  

1.88%, 5/31/22

      550        546  

2.13%, 6/30/22

      450        452  

2.00%, 7/31/22

      550        548  

1.63%, 8/15/22

      450        439  

1.88%, 8/31/22

      475        469  

1.75%, 9/30/22

      500        491  

1.88%, 10/31/22

      375        370  

1.63%, 11/15/22

      555        540  

2.00%, 11/30/22

      300        298  

2.13%, 12/31/22

      725        725  

1.75%, 1/31/23

      575        562  

2.00%, 2/15/23

      925        917  

1.50%, 2/28/23

      450        433  

1.50%, 3/31/23

      450        432  

1.63%, 4/30/23

      450        435  

1.75%, 5/15/23

      875        852  

1.63%, 5/31/23

      450        435  

1.38%, 6/30/23

      500        475  

1.25%, 7/31/23

      500        471  

2.50%, 8/15/23

      900        916  

1.38%, 8/31/23

      500        474  

1.38%, 9/30/23

      600        568  

1.63%, 10/31/23

      350        337  

2.75%, 11/15/23

      850        878  

2.13%, 11/30/23

      450        447  

2.25%, 12/31/23

      500        500  

2.75%, 2/15/24

      800        826  

2.50%, 5/15/24

      1,075        1,091  

2.38%, 8/15/24

      975        980  

2.25%, 11/15/24

      1,025        1,019  

2.00%, 2/15/25

      1,125        1,095  

2.13%, 5/15/25

      900        882  

2.00%, 8/15/25

      1,050        1,017  

2.25%, 11/15/25

      1,395        1,377  

1.63%, 2/15/26

      1,250        1,168  

1.63%, 5/15/26

      1,150        1,072  

1.50%, 8/15/26

      970        892  

2.00%, 11/15/26

      800        770  
  

 

 

     

 

 

  
        93,744  
     

 

 

  

Total U.S. Government Obligations

(Cost $111,885)

         110,997  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 3.1%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(1) (2)

      3,518,183      $ 3,518  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $3,518)

         3,518  
     

 

 

  

Total Investments - 101.7%

(Cost $115,403)

         114,515  
     

 

 

  

Liabilities less Other Assets - (1.7%)

         (1,907 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 112,608  
     

 

 

  

 

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(2) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

U.S. Treasury

      96.9 % 

Cash Equivalents

      3.1  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on the conservative average of Moody’s, S&P Global 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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.

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

U.S. TREASURY INDEX FUND continued    DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

U.S. Government Obligations(1)

    $ —        $ 110,997      $ —        $ 110,997  

Investment Companies

      3,518        —          —          3,518  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 3,518      $ 110,997      $ —        $ 114,515  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 115,568  
  

 

 

  

Gross tax appreciation of investments

    $ 510  

Gross tax depreciation of investments

    $ (1,563 ) 
  

 

 

  

Net tax depreciation of investments

    $ (1,053 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - U.S. Government Portfolio

    $ 1,837      $ 33,615      $ 31,934      $ 1      $ 3,518  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

FIXED INCOME INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

ARIZONA TAX-EXEMPT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 98.8%

      

Arizona - 98.8%

      

Arizona Board of Regents State University System Revenue Bonds, Series B, Green Bonds,

      

5.00%, 7/1/38

    $ 500      $ 566  

Arizona Board of Regents State University System Revenue Bonds, Series D,

      

5.00%, 7/1/26

      500        595  

Arizona Board of Regents State University System Revenue Refunding Bonds, Series A, Green Bonds,

      

5.00%, 7/1/35

      1,000        1,139  

5.00%, 7/1/41

      1,000        1,124  

Arizona Board of Regents State University System Revenue Refunding Bonds, Series B,

      

5.00%, 7/1/28

      1,860        2,187  

Arizona Board of Regents University System Revenue Bonds, Series A,

      

5.00%, 6/1/21

      500        542  

Arizona Board of Regents University System Revenue Refunding Bonds,

      

5.00%, 6/1/33

      3,710        4,285  

3.00%, 6/1/34

      1,000        930  

Arizona State School Facilities Board COPS, Prerefunded,

      

5.25%, 9/1/18(1)

      2,000        2,132  

Buckeye Excise Tax Obligations Revenue Refunding Bonds,

      

4.00%, 7/1/27

      100        108  

3.00%, 7/1/31

      100        95  

3.00%, 7/1/32

      135        127  

Chandler G.O. Limited Refunding Bonds,

      

3.00%, 7/1/25

      450        465  

Coconino & Yavapai Counties Joint Unified School District No. 9 G.O. Unlimited Bonds, Series B, School Improvement Project of 2007 (AGC Insured),

      

5.00%, 7/1/22

      1,345        1,462  

Cottonwood Pledged Revenue Refunding Bonds (BAM Insured),

      

3.00%, 7/1/21

      795        826  

4.00%, 7/1/24

      975        1,071  

4.00%, 7/1/25

      975        1,072  

Gilbert Public Facilities Municipal Property Corp. Revenue Bonds,

      

5.50%, 7/1/28

      1,000        1,087  

Glendale Water & Sewer Revenue Bonds, Subordinate Lien (AGM Insured), Prerefunded,

      

5.00%, 1/1/18(1)

      2,000        2,077  

Goodyear G.O. Limited Refunding Bonds,

      

3.00%, 7/1/37

      2,500        2,186  

Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, Prerefunded,

      

6.00%, 7/1/18(1)

      1,000        1,072  

Goodyear Public Improvement Corp. Municipal Facilities Revenue Refunding Bonds, Series A,

      

3.00%, 7/1/32

      3,000        2,757  

Goodyear Public Improvement Corp. Municipal Facilities Revenue Refunding Bonds, Series B,

      

4.00%, 7/1/30

      625        661  

Goodyear Water & Sewer Revenue Bonds, Subordinate Lien Obligations (AGM Insured),

      

5.25%, 7/1/31

      1,000        1,109  

Greater Development Authority Infrastructure Revenue Bonds, Series 2, Santa Cruz County Jail,

      

5.00%, 8/1/28

      2,000        2,098  

5.25%, 8/1/31

      1,005        1,053  

Marana Municipal Property Corp. Facilities Revenue Bonds, Series A,

      

5.25%, 7/1/23

      1,970        2,077  

Maricopa County Elementary School District No. 1 Phoenix G.O. Unlimited Bonds, Series B, School Improvement Project of 2006, Prerefunded,

      

4.50%, 7/1/19(1)

      1,190        1,279  

Maricopa County Elementary School District No. 28 Kyrene G.O. Unlimited Bonds, Series B, School Improvement Project of 2010,

      

5.25%, 7/1/28(2)

      940        1,108  

5.50%, 7/1/29(2)

      485        580  

5.50%, 7/1/30(2)

      375        446  

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 98.8% continued

      

Arizona - 98.8% continued

      

Maricopa County Elementary School District No. 8 Osborn G.O. Limited Refunding Bonds (BAM Insured),

      

5.00%, 7/1/22

    $ 700      $ 794  

Maricopa County High School District No. 210 Phoenix G.O. Unlimited Refunding Bonds (AGM Insured),

      

5.25%, 7/1/18

      225        239  

Maricopa County School District No. 41 Gilbert G.O. Unlimited Bonds, Series A, School Improvement Project of 2015 (BAM Insured),

      

3.00%, 7/1/28

      1,380        1,356  

Maricopa County School District No. 60 Higley G.O. Unlimited Bonds, Series C, School Improvement Project of 2013 (AGM Insured),

      

3.00%, 7/1/25

      400        405  

3.00%, 7/1/26

      430        428  

3.00%, 7/1/27

      665        656  

Maricopa County Unified School District No. 11 Peoria G.O. Limited Refunding Bonds, School Improvement (AGM Insured),

      

5.00%, 7/1/21

      1,820        2,057  

3.00%, 7/1/23

      1,900        1,984  

Maricopa County Unified School District No. 60 Higley G.O. Limited Refunding Bonds, School Improvement (AGM Insured),

      

5.00%, 7/1/25

      1,500        1,766  

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        1,056  

Maricopa County Unified School District No. 69 Paradise Valley G.O. Unlimited Bonds, Series D, School Improvement Project of 2011,

      

4.50%, 7/1/27

      1,700        1,888  

Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, School Improvement,

      

5.00%, 7/1/23

      175        185  

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        1,120  

Maricopa County Unified School District No. 89 Dysart G.O. Limited Refunding Bonds (BAM Insured),

      

2.00%, 7/1/25

      3,000        2,814  

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        510  

Maricopa County Unified School District No. 93 Cave Creek G.O. Unlimited Bonds, Series B, School Improvement Project of 2014 (AGM Insured),

      

3.00%, 7/1/27

      500        504  

Maricopa County Unified School District No. 95 Queen Creek G.O. Limited Refunding Bonds,

      

5.00%, 7/1/26

      400        468  

Maricopa County Unified School District No. 95 Queen Creek G.O. Unlimited Bonds, School Improvement Projects of 2010 & 2014,

      

2.25%, 7/1/26

      800        789  

Maricopa County Union High School District No. 216 Agua Fria G.O. Unlimited Bonds, Series A, School Improvement Project of 2015,

      

3.00%, 7/1/24

      250        257  

Mesa G.O. Limited Refunding Bonds, Series A,

      

3.00%, 7/1/25

      1,550        1,609  

4.00%, 7/1/27

      1,000        1,117  

Mesa Street & Highway Revenue Refunding Bonds (AGM Insured),

      

5.00%, 7/1/23

      1,000        1,167  

Mohave County Unified School District No. 20 Kingman G.O. Unlimited Bonds, Series C, School Improvement Project of 2006 (AGC Insured),

      

5.50%, 7/1/21

      1,000        1,099  

5.00%, 7/1/23

      1,000        1,087  

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 98.8% continued

      

Arizona - 98.8% continued

      

Phoenix Civic Improvement Corp. Subordinated Excise Tax Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/28

    $ 1,125      $ 1,316  

Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Senior Lien,

      

5.50%, 7/1/20

      1,690        1,796  

5.50%, 7/1/21

      1,080        1,147  

Phoenix Civic Improvement Corp. Water System Revenue Bonds, Series A, Junior Lien,

      

5.00%, 7/1/39

      1,000        1,124  

Phoenix Civic Improvement Corp. Water System Revenue Bonds, Series A, Junior Lien, Prerefunded,

      

5.00%, 7/1/19(1)

      530        575  

Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds,

      

7/1/30(3)

      1,200        1,423  

Pima County Regional Transportation Fund Excise TRB,

      

5.00%, 6/1/21

      1,500        1,704  

Pima County Sewer Revenue Bonds, Series B, Prerefunded,

      

5.00%, 7/1/21(1)

      1,000        1,138  

Pima County Sewer System Revenue Bonds,

      

5.00%, 7/1/25

      1,000        1,163  

Pima County Sewer System Revenue Bonds (AGM Insured), Prerefunded,

      

5.00%, 7/1/20(1)

      1,350        1,502  

Pima County Street & Highway Revenue Bonds, Prerefunded,

      

4.00%, 7/1/19(1)

      1,970        2,092  

Pima County Unified School District No. 10 Amphitheater G.O. Unlimited Bonds, Series D, School Improvement Project of 2007,

      

5.00%, 7/1/24

      1,005        1,156  

Pinal County Unified School District No. 43 Apache Junction G.O. Unlimited Refunding Bonds (AGM Insured),

      

5.00%, 7/1/22

      1,000        1,140  

Prescott Valley Municipal Property Corp. Facilities Revenue Refunding Bonds,

      

5.00%, 1/1/24

      1,835        2,027  

Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Series A,

      

5.00%, 1/1/39

      1,225        1,297  

Salt River Project Agricultural Improvement & Power District Electric System Revenue Refunding Bonds, Series A,

      

5.00%, 1/1/30

      1,500        1,788  

Santa Cruz County Pledged Revenue Refunding Bonds (AGM Insured),

      

3.13%, 7/1/38

      755        737  

Scottsdale Municipal Property Corp. Excise Tax Revenue Refunding Bonds,

      

5.00%, 7/1/30

      2,675        3,171  

Tempe Union High School District No. 213 G.O. Unlimited Refunding Bonds,

      

4.00%, 7/1/26

      805        894  

Tucson Airport Authority, Inc. Revenue Bonds (AMT), Subordinate Lien (NATL Insured),

      

5.00%, 12/1/23

      1,135        1,138  

Tucson COPS (AGC Insured), Prerefunded,

      

5.00%, 7/1/19(1)

      2,000        2,173  

Tucson G.O. Unlimited Bonds, Series D,

      

3.00%, 7/1/24

      850        877  

Tucson Refunding COPS (AGM Insured),

      

5.00%, 7/1/26

      750        878  

Tucson Water Revenue Bonds,

      

3.00%, 7/1/27

      500        495  

Tucson Water System Revenue Bonds,

      

5.00%, 7/1/25

      1,825        2,036  
  

 

 

     

 

 

  
        98,458  
     

 

 

  

Total Municipal Bonds

(Cost $96,542)

         98,458  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 2.1%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(4) (5)

      2,121,466      $ 2,121  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $2,121)

         2,121  
     

 

 

  

Total Investments - 100.9%

(Cost $98,663)

         100,579  
     

 

 

  

Liabilities less Other Assets - (0.9%)

         (865 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 99,714  
     

 

 

  

 

(1) Maturity date represents the prerefunded date.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed.
(3) When-Issued Security. Coupon rate is not in effect at December 31, 2016.
(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(5) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AAA

      3.6 % 

AA

      78.7  

A

      15.6  

Cash Equivalents

      2.1  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on converting the available Moody’s, S&P Global, 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The S&P Global’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.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF
INVESTMENTS		  

Facilities

      5.1 % 

General

      24.1  

General Obligation

      6.2  

Higher Education

      11.3  

School District

      29.4  

Water

      14.4  

All other sectors less than 5%

      9.5  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Municipal Bonds(1)

    $ —        $ 98,458      $ —        $ 98,458  

Investment Companies

      2,121        —          —          2,121  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 2,121      $ 98,458      $ —        $ 100,579  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 98,663  
  

 

 

  

Gross tax appreciation of investments

    $ 3,522  

Gross tax depreciation of investments

      (1,606 ) 
  

 

 

  

Net tax appreciation of investments

    $ 1,916  
  

 

 

  

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Tax-Exempt Portfolio

    $ 7,068      $ 55,703      $ 62,771      $ 8      $ —    

Northern Institutional Funds - U.S. Government Portfolio

      —          29,090        26,969        4        2,121  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 7,068      $ 84,793      $ 89,740      $ 12      $ 2,121  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Institutional Funds - Tax-Exempt Portfolio was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGC - Assured Guarantee Corporation

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BAM - Build America Mutual

COPS - Certificates of Participation

G.O. - General Obligation

NATL - National Public Finance Guarantee Corporation

TRB - Tax Revenue Bonds

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97. 9%

      

California - 97.9%

      

Alameda County Joint Powers Authority Lease Juvenile Justice Revenue Refunding Bonds,

      

5.00%, 12/1/25

    $ 1,225      $ 1,467  

Alameda County Joint Powers Authority Lease Revenue Bonds, Series A, Multiple Capital Projects,

      

4.00%, 12/1/24

      850        933  

Anaheim Public Financing Authority Electric System District Facilities Revenue Bonds (NATL Insured), Prerefunded,

      

4.50%, 4/1/17(1)

      3,000        3,028  

Antelope Valley-East Kern Water Agency Water Revenue Refunding Bonds,

      

5.00%, 6/1/27

      500        593  

5.00%, 6/1/28

      565        667  

Bay Area Toll Bridge Authority Revenue Refunding Bonds, Series E,

      

2.00%, 4/1/21(2)

      565        566  

Bay Area Toll Bridge Authority Variable Revenue Bonds, Series C,

      

1.88%, 4/1/19(2)

      425        427  

Butte-Glenn Community College District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/22

      500        581  

California State Department of Water Resources Central Valley Project Revenue Bonds, Series AS,

      

4.00%, 12/1/34

      1,795        1,900  

California State Department of Water Resources Power Supply Revenue Bonds, Series L,

      

5.00%, 5/1/19

      5,000        5,414  

California State Department of Water Resources Power Supply Revenue Refunding Bonds, Series O,

      

5.00%, 5/1/22

      785        908  

California State Economic Recovery G.O. Unlimited Refunding Bonds, Series A, Escrowed to Maturity,

      

5.00%, 7/1/19

      5,000        5,440  

California State Educational Facilities Authority Revenue Refunding Bonds, Series A, University of Southern California,

      

5.00%, 10/1/25

      1,000        1,218  

California State G.O. Unlimited Bonds,

      

5.00%, 3/1/26

      1,250        1,486  

5.25%, 11/1/40

      8,500        9,448  

California State G.O. Unlimited Bonds, Series 2007 (FGIC Insured), Partially Prerefunded,

      

5.38%, 6/1/26

      2,220        2,258  

California State G.O. Unlimited Bonds, Unrefunded Balance (NATL Insured),

      

4.75%, 2/1/19

      85        85  

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/24

      1,000        1,189  

California State G.O. Unlimited Refunding Bonds, Bid Group C,

      

5.00%, 8/1/28

      4,000        4,785  

California State G.O. Unlimited Refunding Bonds, Group C,

      

5.00%, 8/1/26

      1,000        1,183  

California State G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 9/1/23

      3,375        3,970  

California State G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 9/1/26

      3,500        4,180  

3.00%, 9/1/29

      2,695        2,636  

California State Health Facilities Financing Authority Revenue Bonds, Series A, Sutter Health,

      

5.00%, 11/15/32

      1,200        1,371  

California State Health Facilities Financing Authority Revenue Refunding Bonds, Cedars-Sinai Medical Center,

      

5.00%, 11/15/27

      250        293  

California State Health Facilities Financing Authority Revenue Refunding Bonds, Providence St. Joseph Health System,

      

2.00%, 10/1/25(2)

      1,000        925  

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.9% continued

      

California - 97.9% continued

      

California State Health Facilities Financing Authority Revenue Refunding Bonds, Series B, Sutter Health,

      

5.00%, 11/15/35

    $ 2,500      $ 2,840  

California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, Academy Motion Picture Arts,

      

5.00%, 11/1/34

      1,290        1,459  

California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, The Salvation Army Western,

      

5.00%, 9/1/28

      575        673  

5.00%, 9/1/29

      1,000        1,165  

California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, Walt Disney Family Museum,

      

3.00%, 2/1/36

      1,000        886  

California State Public Works Board Lease Revenue Bonds, Series D, Judicial Council Projects,

      

4.25%, 12/1/20

      1,000        1,093  

California State Public Works Board Lease Revenue Bonds, Subseries I-1, Various Capital Projects, Prerefunded,

      

6.38%, 11/1/19(1)

      2,500        2,840  

California State University Revenue Refunding Bonds, Series A,

      

5.00%, 11/1/30

      2,000        2,349  

5.00%, 11/1/32

      1,000        1,165  

California State University Systemwide Revenue Refunding Bonds, Series B-2,

      

4.00%, 11/1/21(2)

      2,000        2,172  

California State University Systemwide Revenue Refunding Bonds, Series B-3,

      

4.00%, 11/1/23(2)

      5,750        6,343  

California State Various Purpose G.O. Unlimited Bonds,

      

5.00%, 9/1/18

      2,980        3,167  

5.50%, 4/1/19

      1,000        1,092  

5.00%, 9/1/19

      4,720        5,157  

5.00%, 10/1/19

      2,990        3,274  

5.00%, 9/1/20

      1,690        1,892  

5.00%, 10/1/20

      6,000        6,728  

5.50%, 4/1/21

      2,000        2,173  

5.00%, 10/1/22

      500        581  

4.00%, 5/1/23

      1,485        1,650  

5.00%, 10/1/23

      500        589  

5.00%, 12/1/23

      5,000        5,904  

5.00%, 5/1/24

      1,450        1,719  

5.25%, 3/1/30

      1,500        1,653  

6.50%, 4/1/33

      5,260        5,819  

California State Various Purpose G.O. Unlimited Refunding Bonds,

      

5.00%, 9/1/23

      1,500        1,715  

5.00%, 12/1/23

      2,450        2,893  

5.00%, 10/1/26

      2,750        3,249  

California Statewide Communities Development Authority Student Housing Revenue Refunding Bonds, Chf-Irvine LLC,

      

5.00%, 5/15/27

      1,000        1,128  

Carlsbad Unified School District G.O. Unlimited CABS,

      

0.00%, 5/1/19(3)

      1,250        1,199  

Carlsbad Unified School District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/25

      725        877  

Centinela Valley Union High School District G.O. Unlimited Bonds, Series B, Election of 2008, Prerefunded,

      

5.75%, 8/1/23(1)

      1,000        1,226  

Contra Costa County Public Financing Authority Lease Revenue Refunding Bonds, Series A, Capital Projects,

      

5.00%, 6/1/24

      1,190        1,385  

Desert Community College District G.O. Unlimited Bonds, Series C (AGM Insured), Prerefunded,

      

5.00%, 8/1/17(1)

      4,250        4,352  

East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series A,

      

5.00%, 6/1/23

      715        846  

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.9% continued

      

California - 97.9% continued

      

East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series B,

      

5.00%, 6/1/22

    $ 1,745      $ 2,029  

5.00%, 6/1/24

      1,075        1,289  

Eastern California Municipal Water District Water & Sewer COPS, Series H, Prerefunded,

      

5.00%, 7/1/18(1)

      2,000        2,111  

El Camino Community College District G.O. Unlimited CABS, Series C, Election of 2002,

      

0.00%, 8/1/23(3)

      9,940        8,390  

El Dorado Irrigation District COPS, Series A (AGC Insured),

      

4.00%, 8/1/18

      1,915        1,996  

Foothill Eastern Transportation Corridor Agency Toll Road Revenue CABS, Series A, Senior Lien, Escrowed to Maturity,

      

0.00%, 1/1/20(3)

      2,150        2,036  

Foothill-De Anza Community College District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/28

      2,250        2,686  

Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election of 2008,

      

5.38%, 8/1/44

      1,500        1,697  

Imperial Irrigation District Electric Revenue Refunding Bonds, Series B-2,

      

4.00%, 11/1/31

      1,500        1,571  

Long Beach Community College District G.O. Unlimited Refunding Bonds, Series F,

      

5.00%, 6/1/27

      1,100        1,308  

Long Beach Unified School District G.O. Unlimited Bonds, Series S, Election of 2008, Prerefunded,

      

5.00%, 8/1/19(1)

      1,005        1,096  

Long Beach Unified School District G.O. Unlimited Bonds, Series SE, Election of 2008, Unrefunded Balance,

      

5.00%, 8/1/20

      70        76  

Los Angeles Community College District G.O. Unlimited Bonds, Series I,

      

4.00%, 8/1/33

      4,180        4,412  

Los Angeles Community College District G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 8/1/25

      5,600        6,695  

Los Angeles County Public Works Financing Authority Lease Revenue Bonds, Multiple Capital Projects II,

      

5.00%, 8/1/24

      945        1,086  

Los Angeles County Public Works Financing Authority Lease Revenue Bonds, Series D,

      

5.00%, 12/1/29

      5,000        5,834  

Los Angeles County Public Works Financing Authority Lease Revenue Refunding Bonds, Series B,

      

5.00%, 12/1/28

      1,145        1,376  

5.00%, 12/1/29

      5,130        5,986  

5.00%, 12/1/31

      2,000        2,306  

Los Angeles Department of Airports Revenue Bonds, Series D (AMT),

      

5.00%, 5/15/23

      3,625        4,174  

Los Angeles Department of Airports Senior Revenue Bonds, Series B,

      

5.00%, 5/15/27

      640        761  

5.00%, 5/15/28

      600        709  

Los Angeles Department of Airports Subordinate Revenue Bonds, Series A (AMT),

      

5.00%, 5/15/27

      4,695        5,484  

5.00%, 5/15/29

      2,500        2,892  

Los Angeles Department of International Airports Revenue Bonds, Series D,

      

5.00%, 5/15/22

      1,395        1,542  

5.25%, 5/15/29

      5,000        5,542  

5.00%, 5/15/40

      3,500        3,791  

Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1,

      

5.25%, 7/1/38

      2,825        2,981  

 

NORTHERN FUNDS QUARTERLY REPORT     3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.9% continued

      

California - 97.9% continued

      

Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured),

      

5.00%, 7/1/39

    $ 2,490      $ 2,529  

Los Angeles Department of Water & Power System Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/30

      500        590  

Los Angeles Department of Water & Power Waterworks System Revenue Refunding Bonds, Series B,

      

5.00%, 7/1/27

      5,000        6,018  

Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT),

      

5.00%, 8/1/19

      1,500        1,625  

Los Angeles Municipal Improvement Corp. Lease Revenue Refunding Bonds, Series B, Real Property,

      

5.00%, 11/1/26

      1,695        2,019  

5.00%, 11/1/27

      3,210        3,799  

4.00%, 11/1/33

      3,000        3,079  

4.00%, 11/1/34

      3,780        3,860  

4.00%, 11/1/35

      380        386  

Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 7/1/23

      5,000        5,895  

5.00%, 7/1/25

      2,325        2,807  

Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 7/1/23

      7,500        8,843  

Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL Insured), Escrowed to Maturity,

      

6.00%, 6/1/21

      1,185        1,397  

Los Angeles Wastewater System Subordinate Revenue Refunding Bonds, Series C,

      

5.00%, 6/1/23

      1,935        2,220  

Marin County COPS, Prerefunded,

      

3.00%, 8/1/20(1)

      1,595        1,668  

4.00%, 8/1/20(1)

      1,140        1,231  

Midpeninsula Regional Open Space District Revenue Bonds, Prerefunded,

      

5.25%, 9/1/21(1)

      2,000        2,307  

Modesto Irrigation District Electric Revenue Refunding Bonds, Series A,

      

4.00%, 7/1/19

      1,230        1,303  

Modesto Irrigation District Financing Authority Electric System Revenue Bonds, Series A,

      

5.00%, 10/1/26

      1,490        1,743  

5.00%, 10/1/27

      1,130        1,316  

5.00%, 10/1/28

      2,770        3,207  

Modesto Irrigation District Financing Authority Electric System Revenue Refunding Bonds, Series B,

      

5.00%, 10/1/26

      1,060        1,240  

Modesto Irrigation District Financing Authority Revenue Refunding Bonds, Series G, Domestic Water Project (AGM Insured),

      

5.00%, 9/1/20

      1,000        1,115  

5.00%, 9/1/22

      1,445        1,671  

Mojave Water Agency COPS, Series A,

      

5.00%, 6/1/23

      665        715  

Monterey County Public Facilities Financing COPS,

      

5.00%, 10/1/27

      1,000        1,180  

5.00%, 10/1/28

      670        786  

Natomas Unified School District G.O. Unlimited Bonds, Election of 2014,

      

5.00%, 8/1/23

      1,200        1,395  

5.00%, 8/1/25

      1,690        1,970  

Natomas Unified School District G.O. Unlimited Refunding Bonds (BAM Insured),

      

5.00%, 8/1/25

      2,360        2,746  

5.00%, 8/1/26

      2,145        2,482  

Northern California Power Agency Revenue Bonds, Series A,

      

5.00%, 7/1/18

      1,500        1,582  

Northern California Transmission Agency Revenue Refunding Bonds, Series A, California-Oregon Project,

      

5.00%, 5/1/27

      1,150        1,372  

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.9% continued

      

California - 97.9% continued

      

Oakland Unified School District Alameda County G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/21

    $ 1,600      $ 1,818  

5.00%, 8/1/22

      750        862  

5.00%, 8/1/24

      600        708  

Ohlone Community College District G.O. Unlimited Bonds, Series C,

      

4.00%, 8/1/33

      1,080        1,129  

Orange County Transportation Authority Toll Road Revenue Refunding Bonds, Senior Lien, 91 Express Lanes,

      

5.00%, 8/15/20

      1,000        1,114  

Palm Springs Unified School District G.O. Unlimited Bonds, Series D, Election of 2008,

      

2.00%, 8/1/27

      1,970        1,778  

Palomar Health G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 8/1/29

      1,000        1,151  

Palos Verdes Peninsula Unified School District G.O. Unlimited Refunding Bonds,

      

5.00%, 11/1/25

      780        945  

Pasadena Public Financing Authority Lease Revenue Refunding Bonds, Rose Bowl Renovation Project,

      

5.00%, 4/1/24

      1,000        1,179  

5.00%, 4/1/25

      1,000        1,192  

5.00%, 4/1/26

      1,500        1,802  

Placentia-Yorba Linda Unified School District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/26

      1,000        1,196  

Poway Unified School District No. 07 Improvement G.O. Unlimited Bonds, Series 1-A, Election of 2008,

      

0.00%, 8/1/20(3)

      3,280        3,039  

Rancho Santa Fe CSD Financing Authority Special Tax Revenue Refunding Bonds, Series A, Superior Lien,

      

5.00%, 9/1/25

      845        973  

Rancho Water District Financing Authority Revenue Bonds, Series A,

      

4.00%, 8/1/41

      1,000        1,029  

Redlands Unified School District G.O. Unlimited Bonds, Election of 2008 (AGM Insured),

      

5.00%, 7/1/28

      150        158  

5.00%, 7/1/29

      1,000        1,049  

Riverside County Asset Leasing Corp. Lease Revenue Bonds, Series A, Public Defender & Probation Building,

      

5.25%, 11/1/24

      800        936  

Riverside County Transportation Commission Revenue Refunding Bonds, Series A,

      

3.00%, 6/1/26

      5,500        5,697  

Riverside Public Financing Authority Local Measure A Sales Tax Revenue COPS, Riverside Payment Rehabilitation (AGM Insured),

      

5.25%, 6/1/24

      615        713  

Sacramento Area Flood Control Agency Special Assessment Refunding Bonds, Consolidated Capital Assessment District,

      

5.00%, 10/1/34

      2,000        2,314  

5.00%, 10/1/35

      1,000        1,152  

Sacramento County Airport System Senior Revenue Bonds,

      

5.00%, 7/1/28

      1,500        1,630  

Sacramento Municipal Utility District Revenue Refunding Bonds, Series U (AGM Insured), Prerefunded,

      

5.00%, 8/15/18(1)

      1,165        1,237  

Sacramento Municipal Utility District Revenue Refunding Bonds, Series U (AGM Insured), Unrefunded Balance,

      

5.00%, 8/15/19

      610        646  

5.00%, 8/15/25

      1,225        1,295  

Sacramento Municipal Utility District Revenue Refunding Bonds, Series X,

      

5.00%, 8/15/20

      1,950        2,178  

San Diego Community College District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/26

      1,500        1,848  

5.00%, 8/1/27

      7,390        9,048  

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.9% continued

      

California - 97.9% continued

      

San Diego Public Facilities Financing Authority Lease Revenue Refunding Bonds, Ballpark,

      

5.00%, 10/15/30

    $ 1,040      $ 1,197  

San Diego Public Facilities Financing Authority Lease Revenue Refunding Bonds, Series A, Master Refunding Project,

      

4.00%, 3/1/19

      1,150        1,212  

4.25%, 3/1/20

      1,130        1,219  

San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, Prerefunded,

      

4.00%, 5/15/19(1)

      1,495        1,586  

San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds,

      

5.00%, 5/15/27

      2,000        2,386  

San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds, Senior Series B, Prerefunded,

      

5.00%, 5/15/19(1)

      5,000        5,422  

San Diego Regional Building Authority Revenue Bonds, Series A, County Operations Center & Annex, Escrowed to Maturity,

      

4.00%, 2/1/19

      3,615        3,811  

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        1,885  

San Francisco Bay Area Rapid Transit District G.O. Unlimited Refunding Bonds, Series D, Election of 2004,

      

5.00%, 8/1/28

      2,365        2,835  

San Francisco Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, Prerefunded,

      

5.00%, 4/1/19(1)

      2,000        2,162  

5.13%, 4/1/19(1)

      1,000        1,084  

San Francisco City & County Airports Commission International Airport Revenue Refunding Bonds, Second Series A (AMT),

      

5.00%, 5/1/24

      1,095        1,231  

San Francisco City & County Airports Commission Revenue Refunding Bonds, Second Series C (AGM Insured),

      

4.00%, 5/1/18

      1,875        1,942  

San Francisco City & County G.O. Unlimited Bonds, Series D,

      

3.00%, 6/15/26

      2,860        2,936  

San Francisco City & County Public Utilities Commission Water Revenue Bonds, Subseries A, WSIP,

      

5.00%, 11/1/20

      1,000        1,125  

San Francisco City & County Public Utilities Commission Water Revenue Refunding Bonds,

      

5.00%, 11/1/23

      2,000        2,374  

5.00%, 11/1/26

      1,250        1,534  

5.00%, 11/1/27

      2,500        3,041  

4.00%, 11/1/36

      1,000        1,046  

San Francisco City & County Unified School District Property G.O. Unlimited Bonds, Series E, Election of 2006,

      

5.00%, 6/15/22

      2,615        2,899  

San Jacinto Unified School District G.O. Unlimited Refunding Bonds (AGM Insured),

      

5.00%, 8/1/26

      1,055        1,236  

San Joaquin County Transportation Authority Measure K Limited TRB, Series A,

      

5.75%, 3/1/28

      2,000        2,288  

San Jose Unified School District Santa Clara County G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/23

      1,000        1,132  

San Juan Unified School District G.O. Unlimited Bonds, Series B, Election of 2012,

      

3.00%, 8/1/25

      3,000        3,093  

San Mateo County Joint Powers Financing Authority Lease Revenue Refunding Bonds, Series A, Youth Services Campus,

      

5.00%, 7/15/27

      2,335        2,819  

5.00%, 7/15/29

      1,370        1,629  

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.9% continued

      

California - 97.9% continued

      

San Mateo Sewer Revenue Bonds, Series A,

      

5.00%, 8/1/23

    $ 1,140      $ 1,346  

Santa Ana Unified School District G.O. Unlimited Bonds, Series A, Election of 2008,

      

5.50%, 8/1/30

      2,000        2,120  

Santa Clara County Financing Authority Revenue Refunding Bonds, Series A,

      

3.00%, 11/15/25

      5,000        5,107  

Santa Clara Unified School District G.O. Unlimited Bonds, Election of 2010,

      

4.50%, 7/1/32

      2,000        2,151  

Santa Clara Unified School District G.O. Unlimited Bonds, Series A, Election of 2004,

      

5.00%, 7/1/29

      1,500        1,656  

5.00%, 7/1/30

      4,040        4,451  

5.00%, 7/1/34

      1,000        1,093  

Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, Prerefunded,

      

6.00%, 7/1/21(1)

      2,000        2,364  

South Orange County Public Financing Authority Special Tax Revenue Refunding Bonds, Series A, Foothill Area (NATL Insured),

      

5.25%, 8/15/18

      2,500        2,509  

Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Project No. 1,

      

5.00%, 7/1/24

      1,240        1,349  

Southern California Public Power Authority Revenue Bonds, Windy Point/Windy Flats Project No. 1,

      

5.00%, 7/1/26

      4,700        5,156  

5.00%, 7/1/30

      2,500        2,740  

Sweetwater Union High School District G.O. Unlimited Bonds, Series B, Election of 2006 (AGM Insured),

      

3.00%, 8/1/32

      2,500        2,331  

3.38%, 8/1/40

      500        455  

Tracy Unified School District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/27

      745        901  

Turlock Irrigation District First Priority Subordinated Revenue Refunding Bonds,

      

5.00%, 1/1/27

      4,795        5,710  

5.00%, 1/1/28

      625        715  

University of California Limited Project Revenue Refunding Bonds, Series I,

      

5.00%, 5/15/27

      2,000        2,364  

Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election of 2008,

      

5.25%, 8/1/27

      2,125        2,255  

Vallecitos Water District Water & Wastewater Enterprise Revenue Refunding Bonds,

      

5.00%, 7/1/24

      2,000        2,390  

Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, Prerefunded,

      

5.50%, 8/1/18(1)

      1,000        1,068  

Ventura County Community College District G.O. Unlimited CABS, Series C, Election of 2002,

      

0.00%, 8/1/17(3)

      1,615        1,604  

0.00%, 8/1/18(3)

      1,635        1,596  

Ventura County Public Financing Authority Lease Revenue Bonds, Series B,

      

5.00%, 11/1/24

      1,060        1,249  

West Valley-Mission Community College District G.O. Unlimited Bonds, Series B, Election of 2012,

      

5.00%, 8/1/28

      2,500        3,010  

Western Riverside Water & Wastewater Finance Authority Western Municipal Water District Improvement Revenue Bonds (AGC Insured),

      

5.13%, 9/1/29

      1,645        1,759  

Westlands Water District Revenue Refunding Bonds, Series A (AGM Insured),

      

5.00%, 9/1/29

      1,320        1,552  

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.9% continued

      

California - 97.9% continued

      

Yucaipa Valley Water District Water System Revenue Refunding Bonds, Series A,

      

5.00%, 9/1/25

    $ 500      $ 592  

5.00%, 9/1/26

      1,000        1,172  
  

 

 

     

 

 

  
        465,861  
     

 

 

  

Total Municipal Bonds

(Cost $461,388)

         465,861  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 0.8%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(4) (5)

      3,936,201      $ 3,936  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $3,936)

         3,936  
     

 

 

  

Total Investments - 98.7%

(Cost $465,324)

         469,797  
     

 

 

  

Other Assets less Liabilities - 1.3%

         6,030  
     

 

 

  

NET ASSETS - 100.0%

       $ 475,827  
     

 

 

  

 

(1) Maturity date represents the prerefunded date.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the puttable date.
(3) Zero coupon bond.
(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(5) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AAA

      4.0 % 

AA

      83.0  

A

      12.0  

BBB

      0.2  

Cash Equivalents

      0.8  
  

 

 

  

Total

      100 % 
  

 

 

  

 

* Credit quality ratings are based on converting the available Moody’s, S&P Global, 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The S&P Global’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.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF
INVESTMENTS		  

Airport

      6.3 % 

General

      15.6  

General Obligation

      28.1  

Higher Education

      5.1  

Power

      6.3  

School District

      15.7  

Utilities

      5.4  

Water

      9.6  

All other sectors less than 5%

      7.9  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Municipal Bonds(1)

    $ —        $ 465,861      $ —        $ 465,861  

Investment Companies

      3,936        —          —          3,936  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 3,936      $ 465,861      $ —        $ 469,797  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 465,324   
  

 

 

  

Gross tax appreciation of investments

    $ 12,152   

Gross tax depreciation of investments

      (7,679 ) 
  

 

 

  

Net tax appreciation of investments

    $ 4,473   
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Funds - California Municipal Money Market Fund

    $ 18,004       $ 158,490       $ 176,494       $ 8       $ —     

Northern Institutional Funds - U.S. Government Portfolio

      —           97,418         93,482         7         3,936   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 18,004       $ 255,908       $ 269,976       $ 15       $ 3,936   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Funds - California Municipal Money Market Fund was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGC - Assured Guaranty Corporation

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BAM - Build America Mutual

CABS - Capital Appreciation Bonds

COPS - Certificates of Participation

CSD - Community Services District

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

NATL - National Public Finance Guarantee Corporation

TRB - Tax Revenue Bonds

WSIP - Water System Improvement Program

 

NORTHERN FUNDS QUARTERLY REPORT     9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

CALIFORNIA TAX-EXEMPT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 96.5%

      

California - 96.5%

      

Alhambra Unified School District Elementary Schools Improvement G.O. Unlimited Bonds, Series A, Election of 2008 (AGC Insured), Prerefunded,

      

5.50%, 8/1/19(1)

    $ 1,000      $ 1,103  

Banning Unified School District G.O. Unlimited Bonds, Series A, Election of 2006 (BHAC-CR FGIC Insured), Prerefunded,

      

5.00%, 8/1/17(1)

      3,000        3,072  

Brentwood Infrastructure Financing Authority Water Revenue Bonds, Prerefunded,

      

5.75%, 7/1/18(1)

      3,595        3,841  

Cabrillo Community College District G.O. Unlimited Refunding Bonds,

      

3.00%, 8/1/36

      1,000        877  

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 9/1/20

      5,000        5,597  

5.00%, 3/1/26

      1,300        1,545  

California State G.O. Unlimited Refunding Bonds, Group C,

      

5.00%, 8/1/26

      2,500        2,958  

California State G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 9/1/26

      1,500        1,791  

California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, The Salvation Army Western,

      

4.00%, 9/1/30

      500        526  

4.00%, 9/1/31

      550        572  

California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, Walt Disney Family Museum,

      

3.00%, 2/1/37

      500        438  

California State Public Works Board Lease Revenue Bonds, Series A, Department of General Services-Buildings 8 & 9, Prerefunded,

      

6.00%, 4/1/19(1)

      1,400        1,544  

California State Public Works Board Lease Revenue Refunding Bonds, Series F,

      

5.00%, 5/1/29

      1,000        1,157  

California State University Revenue Refunding Bonds, Series A,

      

5.00%, 11/1/30

      1,490        1,750  

5.00%, 11/1/32

      1,000        1,165  

California State Various Purpose G.O. Unlimited Bonds,

      

5.00%, 10/1/20

      5,000        5,607  

5.25%, 3/1/30

      3,500        3,856  

5.50%, 3/1/40

      2,865        3,163  

California State Various Purpose G.O. Unlimited Refunding Bonds,

      

4.00%, 9/1/32

      1,750        1,849  

Centinela Valley Union High School District G.O. Unlimited Bonds, Series B, Election of 2008, Prerefunded,

      

5.75%, 8/1/23(1)

      570        699  

6.00%, 8/1/23(1)

      1,000        1,241  

Corona-Norco Unified School District G.O. Unlimited Bonds, Series C, Election of 2006 (AGM Insured), Prerefunded,

      

5.50%, 8/1/19(1)

      500        552  

Desert Community College District G.O. Unlimited Bonds, Series C (AGM Insured), Prerefunded,

      

5.00%, 8/1/17(1)

      705        722  

Desert Sands Unified School District G.O. Unlimited Bonds, Election of 2014,

      

5.00%, 8/1/25

      825        994  

Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election of 2008,

      

5.38%, 8/1/44

      3,500        3,961  

Imperial Irrigation District Electric Revenue Refunding Bonds, Series B-2,

      

4.00%, 11/1/31

      1,000        1,047  

Los Angeles Community College District G.O. Unlimited Bonds, Series I,

      

4.00%, 8/1/35

      2,590        2,710  

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 96.5% continued

      

California - 96.5% continued

      

Los Angeles County Public Works Financing Authority Lease Revenue Bonds, Series D,

      

5.00%, 12/1/29

    $ 1,665      $ 1,943  

4.00%, 12/1/34

      1,500        1,556  

4.00%, 12/1/36

      1,500        1,540  

Los Angeles County Public Works Financing Authority Lease Revenue Refunding Bonds, Series B,

      

5.00%, 12/1/29

      2,500        2,917  

5.00%, 12/1/30

      2,000        2,318  

Los Angeles Department of International Airports Revenue Bonds, Series D,

      

5.00%, 5/15/40

      1,500        1,625  

Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured),

      

5.00%, 7/1/39

      1,000        1,016  

Los Angeles Harbor Department Revenue Bonds, Escrowed to Maturity,

      

7.60%, 10/1/18

      10        11  

Los Angeles Harbor Department Revenue Refunding Bonds, Series B,

      

4.00%, 8/1/35

      1,000        1,053  

Los Angeles Municipal Improvement Corp. Lease Revenue Refunding Bonds, Series B, Real Property,

      

5.00%, 11/1/27

      2,000        2,367  

4.00%, 11/1/33

      3,150        3,232  

4.00%, 11/1/34

      3,000        3,064  

4.00%, 11/1/35

      2,000        2,034  

Los Angeles Unified School District G.O. Unlimited Bonds, Series D,

      

4.00%, 7/1/17

      750        762  

Los Angeles Wastewater System Revenue Refunding Bonds, Series C, Green Bonds,

      

5.00%, 6/1/28

      1,465        1,744  

Marin County COPS, Prerefunded,

      

4.25%, 8/1/20(1)

      1,575        1,715  

Midpeninsula Regional Open Space District Revenue Bonds, Prerefunded,

      

5.25%, 9/1/21(1)

      600        692  

5.50%, 9/1/21(1)

      2,500        2,911  

Modesto Irrigation District Capital Improvements COPS, Series A,

      

5.75%, 10/1/29

      1,500        1,624  

Modesto Irrigation District Capital Improvements COPS, Series A, Prerefunded,

      

6.00%, 4/1/19(1)

      590        650  

Modesto Irrigation District Capital Improvements COPS, Series A, Unrefunded Balance,

      

6.00%, 10/1/39

      1,410        1,534  

Newport Mesa Unified School District G.O. Unlimited CABS, Election of 2005,

      

0.00%, 8/1/33(2)

      10,000        5,391  

Oakland Unified School District Alameda County G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/25

      650        774  

Ohlone Community College District G.O. Unlimited Bonds, Series C,

      

4.00%, 8/1/35

      1,360        1,406  

Orange County Public Financing Authority Lease Revenue Refunding Bonds (NATL Insured),

      

5.00%, 7/1/17

      1,050        1,071  

Palm Springs Unified School District G.O. Unlimited Bonds, Series D, Election of 2008,

      

2.00%, 8/1/27

      2,000        1,805  

Palomar Pomerado Health G.O. Unlimited Convertible CABS, Series A, Election of 2004 (AGC Insured),

      

1.73%, 8/1/38(3)

      5,000        5,684  

Rancho Water District Financing Authority Revenue Bonds, Series A,

      

4.00%, 8/1/41

      1,000        1,029  

Rio Hondo Community College District G.O. Unlimited Bonds, Series B, Election of 2009,

      

5.50%, 8/1/30

      1,605        1,751  

Sacramento Area Flood Control Agency Special Assessment Refunding Bonds, Consolidated Capital Assessment District,

      

5.00%, 10/1/35

      1,420        1,636  

5.00%, 10/1/41

      2,000        2,273  

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 96.5% continued

      

California - 96.5% continued

      

Sacramento Municipal Utility District Revenue Bonds, Series A,

      

5.00%, 8/15/37

    $ 55      $ 62  

San Diego Community College District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/27

      3,000        3,673  

5.00%, 8/1/28

      1,500        1,826  

San Diego County Water Authority COPS, Series 2008A (AGM Insured), Prerefunded,

      

5.00%, 5/1/18(1)

      2,000        2,103  

San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, Prerefunded,

      

5.00%, 5/15/19(1)

      1,500        1,627  

San Francisco Bay Area Rapid Transit District G.O. Unlimited Refunding Bonds, Series D, Election of 2004,

      

5.00%, 8/1/28

      1,000        1,199  

San Francisco Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, Prerefunded,

      

5.00%, 4/1/19(1)

      3,650        3,946  

5.13%, 4/1/19(1)

      1,500        1,626  

San Francisco City & County Public Utilities Commission Water Revenue Refunding Bonds,

      

5.00%, 11/1/26

      1,000        1,227  

5.00%, 11/1/27

      2,500        3,041  

4.00%, 11/1/36

      4,000        4,182  

San Joaquin County Transportation Authority Measure K Limited TRB, Series A,

      

5.25%, 3/1/31

      2,075        2,319  

Santa Clara County Financing Authority Revenue Refunding Bonds, Series A,

      

3.00%, 11/15/25

      2,510        2,564  

Santa Clara Electric Revenue Refunding Bonds, Series A,

      

6.00%, 7/1/31

      1,195        1,383  

Santa Clara Valley Transportation Authority Measure A Sales Tax Revenue Refunding Bonds, Series A (AMBAC Insured), Prerefunded,

      

5.00%, 4/1/17(1)

      2,000        2,021  

Santa Rosa Wastewater Revenue Bonds, Series A (AMBAC Insured),

      

5.00%, 9/1/17

      1,025        1,053  

Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, Prerefunded,

      

6.00%, 7/1/21(1)

      2,025        2,393  

Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, Prerefunded,

      

6.00%, 7/1/18(1)

      2,520        2,700  

Sweetwater Union High School District G.O. Unlimited Bonds, Series B, Election of 2006 (AGM Insured),

      

3.00%, 8/1/33

      2,000        1,837  

3.38%, 8/1/40

      2,000        1,818  

Tuolumne Wind Project Authority Revenue Refunding Bonds, Series A,

      

5.00%, 1/1/29

      1,700        2,016  

Turlock Irrigation District First Priority Subordinated Revenue Refunding Bonds,

      

5.00%, 1/1/30

      1,490        1,737  

University of California General Revenue Bonds, Series Q, Prerefunded,

      

5.25%, 5/15/17(1)

      3,000        3,079  

Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election of 2008,

      

5.25%, 8/1/27

      2,500        2,653  

Vallecitos Water District Water & Wastewater Enterprise Revenue Refunding Bonds,

      

5.00%, 7/1/30

      1,000        1,169  

5.00%, 7/1/32

      595        690  

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 96.5% continued

      

California - 96.5% continued

      

Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, Prerefunded,

      

5.50%, 8/1/18(1)

    $ 4,065       $ 4,341   

Western Riverside Water & Wastewater Finance Authority Western Municipal Water District Improvement Revenue Bonds (AGC Insured),

      

5.13%, 9/1/29

      2,000         2,139   
  

 

 

     

 

 

  
        173,889   
     

 

 

  

Total Municipal Bonds

(Cost $166,419)

         173,889   
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 3.1%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(4) (5)

      5,477,742       $ 5,478   
  

 

 

     

 

 

  

Total Investment Companies

(Cost $5,478)

         5,478   
     

 

 

  

Total Investments - 99.6%

(Cost $171,897)

         179,367   
     

 

 

  

Other Assets less Liabilities - 0.4%

         806   
     

 

 

  

NET ASSETS - 100.0%

       $ 180,173   
     

 

 

  

 

(1) Maturity date represents the prerefunded date.
(2) Zero coupon bond.
(3) Step coupon bond. Rate as of December 31, 2016 is disclosed.
(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(5) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AAA

      2.9 % 

AA

      74.9   

A

      18.8   

Not Rated

      0.4   

Cash Equivalents

      3.0   
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on converting the available Moody’s, S&P Global, 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The S&P Global’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.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF
INVESTMENTS		  

General

      23.5 % 

General Obligation

      28.2   

School District

      16.2   

Water

      10.9   

All other sectors less than 5%

      21.2   
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Municipal Bonds(1)

    $ —         $ 173,889       $ —         $ 173,889   

Investment Companies

      5,478         —           —           5,478   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 5,478       $ 173,889       $ —         $ 179,367   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 171,923  
  

 

 

  

Gross tax appreciation of investments

    $ 10,379  

Gross tax depreciation of investments

      (2,935 ) 
  

 

 

  

Net tax appreciation of investments

    $ 7,444  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Funds - California Municipal Money Market Fund

    $ 27,669      $ 72,078      $ 99,747      $ 5      $ —    

Northern Institutional Funds - U.S. Government Portfolio

      —          52,068        46,590        3        5,478  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 27,669      $ 124,146      $ 146,337      $ 8      $ 5,478  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Funds - California Municipal Money Market Fund was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGC - Assured Guaranty Corporation

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

BHAC - Berkshire Hathaway Assurance Corporation

CABS - Capital Appreciation Bonds

COPS - Certificates of Participation

CR - Custody Receipt

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

NATL - National Public Finance Guarantee Corporation

TRB - Tax Revenue Bonds

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD MUNICIPAL FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1%

      

Alabama - 1.1%

      

Alabama State Port Authority Docks Facilities Revenue Bonds,

      

6.00%, 10/1/40

    $ 5,000       $ 5,651   
  

 

 

     

 

 

  

Arizona - 3.5%

      

La Paz County IDA Education Facility Lease Revenue Bonds, Charter School Solutions-Harmony Public Schools,

      

5.00%, 2/15/36

      1,400         1,463   

5.00%, 2/15/46

      3,500         3,606   

Maricopa County Pollution Control Corp. Variable Revenue Refunding Bonds, Series A, Public Service of New Mexico Palo Verde,

      

6.25%, 1/1/38

      4,000         4,436   

Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien,

      

5.00%, 7/1/45

      5,000         5,582   

Phoenix IDA Education Revenue Refunding Bonds, Great Hearts Academies,

      

5.00%, 7/1/41

      1,200         1,242   

5.00%, 7/1/46

      1,300         1,339   
  

 

 

     

 

 

  
        17,668   
     

 

 

  

California - 9.8%

      

California State Municipal Finance Authority COPS, Community Hospitals of Central California,

      

5.50%, 2/1/39

      4,000         4,228   

California State Municipal Finance Authority Revenue Bonds, Series A, Baptist University,

      

5.00%, 11/1/36

      1,000         929   

5.00%, 11/1/46

      2,000         1,814   

California State Municipal Finance Authority Revenue Bonds, Series A, University of La Verne,

      

6.13%, 6/1/30

      2,000         2,230   

6.25%, 6/1/40

      1,000         1,113   

California State School Finance Authority Charter School Revenue Refunding Bonds, Aspire Public Schools,

      

5.00%, 8/1/46(1) (2)

      3,000         3,102   

California Statewide Communities Development Authority Revenue Bonds, California Baptist University,

      

7.25%, 11/1/31

      2,000         2,243   

California Statewide Communities Development Authority Revenue Bonds, Loma Linda University Medical Center,

      

5.25%, 12/1/34

      1,000         1,040   

5.25%, 12/1/44

      3,500         3,591   

California Statewide Communities Development Authority Revenue Bonds, Series A, California Baptist University,

      

5.50%, 11/1/38

      2,000         1,950   

Golden State Tobacco Securitization Corp. Tobacco Settlement Asset Backed Revenue Bonds, Senior Series A-1,

      

5.13%, 6/1/47

      4,000         3,533   

5.75%, 6/1/47

      5,000         4,785   

Los Angeles Department of Water & Power System Revenue Bonds, Series D,

      

5.00%, 7/1/39

      5,000         5,631   

San Francisco City & County Airports Commission Revenue Bonds, Series E,

      

6.00%, 5/1/39

      5,000         5,503   

Tobacco Securitization Authority of Southern California Tobacco Settlement Revenue Bonds, Senior Series A-1,

      

5.00%, 6/1/37

      6,000         5,712   

5.13%, 6/1/46

      2,000         1,829   
  

 

 

     

 

 

  
        49,233   
     

 

 

  

Colorado - 1.9%

      

Denver City & County Airport System Revenue Bonds, Series A,

      

5.25%, 11/15/36

      4,000         4,376   

 

NORTHERN FUNDS QUARTERLY REPORT     1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1% continued

      

Colorado - 1.9% continued

      

Prairie Center Metropolitan District No. 3 Limited Property Tax Supported G.O. Limited Bonds, Series A,

      

5.40%, 12/15/31

    $ 2,000      $ 2,002  

Regional Transportation District Private Activity Revenue Bonds, Denver Transportation Partners,

      

6.00%, 1/15/41

      3,000        3,287  
  

 

 

     

 

 

  
        9,665  
     

 

 

  

Connecticut - 1.7%

      

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series G, Sacred Heart University,

      

5.13%, 7/1/26

      1,250        1,379  

5.38%, 7/1/31

      1,250        1,380  

Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series M, Quinnipiac University,

      

5.00%, 7/1/35

      2,150        2,388  

5.00%, 7/1/36

      3,000        3,325  
  

 

 

     

 

 

  
        8,472  
     

 

 

  

Delaware - 0.4%

      

Delaware State EDA Gas Facilities Revenue Refunding Bonds, Delmarva Power,

      

5.40%, 2/1/31

      2,000        2,183  
  

 

 

     

 

 

  

District of Columbia - 1.8%

      

District of Columbia Revenue Bonds, Cesar Chavez Charter Schools,

      

7.88%, 11/15/40

      5,265        5,817  

Metropolitan Washington Airports Authority Dulles Toll Road Revenue Refunding Bonds, Series A, Dulles Metrorail and Capital Project,

      

5.00%, 10/1/53

      3,000        3,085  
  

 

 

     

 

 

  
        8,902  
     

 

 

  

Florida - 4.6%

      

Capital Trust Agency Air Cargo Revenue Refunding Bonds, Series A, Aero Miami FX,

      

5.35%, 7/1/29

      3,375        3,556  

Citizens Property Insurance Corp. Revenue Bonds, Series A1,

      

5.00%, 6/1/25

      5,000        5,798  

Halifax Hospital Medical Center Revenue Refunding Bonds,

      

5.00%, 6/1/36

      4,250        4,689  

Hillsborough County Aviation Authority Subordinate Revenue Bonds, Series B, Tampa International Airport,

      

5.00%, 10/1/40

      1,500        1,643  

5.00%, 10/1/44

      1,500        1,639  

Jacksonville Economic Development Commission Health Care Facilities Revenue Refunding Bonds, Series A, Proton Therapy Institute,

      

6.00%, 9/1/17

      395        404  

Miami-Dade County Educational Facilities Authority Revenue Refunding Bonds, Series A, University of Miami,

      

5.00%, 4/1/40

      5,000        5,461  

Sterling Hill Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B,

      

5.50%, 11/1/10(3)

      150        67  
  

 

 

     

 

 

  
        23,257  
     

 

 

  

Georgia - 1.5%

      

Atlanta Water & Wastewater Revenue Bonds, Series A, Prerefunded,

      

6.25%, 11/1/19(4)

      5,000        5,649  

Municipal Electric Authority of Georgia Revenue Refunding Bonds, Series A, Project One Subordinate,

      

5.00%, 1/1/35

      1,500        1,680  
  

 

 

     

 

 

  
        7,329  
     

 

 

  

Illinois - 6.3%

      

Chicago Board of Education Dedicated Capital Improvement Special Tax Obligation Revenue Bonds,

      

4/1/46(5)

      4,000        3,945  

Chicago Waterworks Revenue Bonds, Second Lien,

      

5.00%, 11/1/28

      2,500        2,776  

5.00%, 11/1/29

      1,000        1,106  

5.00%, 11/1/30

      1,000        1,102  

Illinois State Finance Authority Revenue Bonds, Series A, Provena Health, Prerefunded,

      

7.75%, 8/15/19(4)

      35,000        4,055  

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1% continued

      

Illinois - 6.3% continued

      

Illinois State Finance Authority Revenue Bonds, Silver Cross & Medical Centers, Prerefunded,

      

6.88%, 8/15/19(4)

    $ 1,000       $ 1,134   

7.00%, 8/15/19(4)

      1,000         1,137   

Illinois State Finance Authority Revenue Refunding Bonds, Series A, Rush University Medical Center,

      

5.00%, 11/15/34

      5,000         5,396   

Illinois State Finance Authority Revenue Refunding Bonds, Series C, Presence Health Network,

      

5.00%, 2/15/36

      1,000         1,017   

5.00%, 2/15/41

      1,000         1,009   

Illinois State Toll Highway Authority Senior Revenue Bonds, Series B,

      

5.00%, 1/1/41

      5,000         5,508   

Railsplitter Tobacco Settlement Authority Revenue Bonds,

      

5.50%, 6/1/23

      1,000         1,124   

6.00%, 6/1/28

      2,000         2,273   
  

 

 

     

 

 

  
        31,582   
     

 

 

  

Indiana - 2.4%

      

Indiana State Finance Authority Educational Facilities Revenue Bonds, Marian University Project,

      

6.50%, 9/15/30

      3,000         3,403   

6.38%, 9/15/41

      2,000         2,208   

Indiana State Municipal Power Agency Revenue Bonds, Series B, Prerefunded,

      

6.00%, 1/1/19(4)

      2,000         2,183   

Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., Prerefunded,

      

5.70%, 9/1/17(1) (2) (4)

      1,000         1,030   

8.00%, 9/1/21(4)

      2,500         3,140   
  

 

 

     

 

 

  
        11,964   
     

 

 

  

Kentucky - 1.1%

      

Kentucky Public Transportation Infrastructure Authority First Tier Toll Revenue Bonds, Series A, Downtown Crossing Project,

      

5.75%, 7/1/49

      2,500         2,680   

Kentucky State Economic Development Finance Authority Revenue Bonds, Owensboro Health,

      

5.25%, 6/1/50

      2,500         2,587   
  

 

 

     

 

 

  
        5,267   
     

 

 

  

Louisiana - 8.6%

      

Louisiana State Gasoline & Fuels TRB, Series B, Second Lien,

      

5.00%, 5/1/39

      5,000         5,451   

Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Westlake Chemical Corp.,

      

6.50%, 8/1/29

      2,000         2,233   

Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Woman’s Hospital Foundation,

      

5.88%, 10/1/40

      3,000         3,331   

Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A-1, Westlake Chemical Corp.,

      

6.50%, 11/1/35

      2,000         2,241   

Louisiana State Public Facilities Authority Revenue Bonds, Belle Chasse Educational Foundation Project,

      

6.75%, 5/1/41

      1,250         1,345   

Louisiana State Public Facilities Authority Revenue Bonds, Provident Group-Flagship Property,

      

5.00%, 7/1/46

      3,500         3,757   

Louisiana State Public Facilities Authority Revenue Refunding Bonds, Lafayette General Health System,

      

5.00%, 11/1/41

      5,000         5,255   

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1% continued

      

Louisiana - 8.6% continued

      

Louisiana State Public Facilities Authority Revenue Refunding Bonds, Ochsner Clinic Foundation,

      

5.00%, 5/15/47

    $ 5,000       $ 5,379   

New Orleans Aviation Board Revenue Bonds, Series A,

      

5.00%, 1/1/40

      1,500         1,652   

5.00%, 1/1/45

      2,500         2,745   

New Orleans Sewerage Service Revenue Bonds,

      

5.00%, 6/1/45

      4,000         4,301   

New Orleans Water Revenue Refunding Bonds,

      

5.00%, 12/1/44

      3,000         3,252   

Tobacco Settlement Financing Corp. Asset Backed Revenue Refunding Bonds, Series A,

      

5.50%, 5/15/29

      2,000         2,158   
  

 

 

     

 

 

  
        43,100   
     

 

 

  

Maine - 1.9%

      

Maine State Health & Higher Educational Facilities Authority Revenue Bonds, Eastern Maine Medical Center,

      

5.00%, 7/1/43

      5,000         5,030   

Maine State Health & Higher Educational Facilities Authority Revenue Bonds, Maine General Medical Center,

      

7.50%, 7/1/32

      2,000         2,295   

6.75%, 7/1/41

      2,000         2,167   
  

 

 

     

 

 

  
        9,492   
     

 

 

  

Maryland - 2.7%

      

Anne Arundel County Special Obligation Tax Allocation Bonds, National Business Park-North Project,

      

6.10%, 7/1/40

      4,335         4,493   

Maryland State Economic Development Corp. Student Housing Revenue Refunding Bonds, University of Maryland College Park Projects (AGM Insured),

      

5.00%, 6/1/35

      2,500         2,828   

5.00%, 6/1/43

      1,805         2,020   

Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Adventist Healthcare,

      

6.25%, 1/1/31

      1,550         1,729   

6.13%, 1/1/36

      2,000         2,212   
  

 

 

     

 

 

  
        13,282   
     

 

 

  

Massachusetts - 3.6%

      

Massachusetts State Bay Transportation Authority Sales TRB, Senior Series A,

      

5.00%, 7/1/28

      5,000         6,124   

Massachusetts State Development Finance Agency Revenue Bonds, Boston Medical Center Green Bonds,

      

5.00%, 7/1/44

      5,000         5,229   

Massachusetts State Development Finance Agency Revenue Bonds, Series A, UMASS Boston Student Housing, Prerefunded,

      

5.00%, 10/1/41

      4,230         4,381   

Massachusetts State Development Finance Agency Revenue Bonds, Series F, Milford Regional Medical Center,

      

5.75%, 7/15/43

      2,000         2,203   
  

 

 

     

 

 

  
        17,937   
     

 

 

  

Michigan - 2.5%

      

Michigan State Finance Authority Revenue Bonds, Local Government Loan Program, Detroit Water and Sewerage Department Water Supply System,

      

5.00%, 7/1/35

      3,000         3,214   

Michigan State Finance Authority Revenue Refunding Bonds, Series D-4 Local Government Loan Program, Detroit Water and Sewerage Department Water Supply System,

      

5.00%, 7/1/30

      2,000         2,206   

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1% continued

      

Michigan - 2.5% continued

      

Royal Oak Hospital Finance Authority Revenue Bonds, Series V, William Beaumont Hospital, Prerefunded,

      

8.25%, 9/1/18(4)

    $ 2,000       $ 2,227   

Wayne County Airport Authority Revenue Bonds, Series D,

      

5.00%, 12/1/45

      4,355         4,737   
  

 

 

     

 

 

  
        12,384   
     

 

 

  

Mississippi - 0.6%

      

Warren County Gulf Opportunity Zone Revenue Bonds, Series A, International Paper Co.,

      

5.80%, 5/1/34

      2,530         2,809   
  

 

 

     

 

 

  

Missouri - 1.5%

      

Grundy County IDA Health Facilities Revenue Bonds, Wright Memorial Hospital,

      

6.45%, 9/1/29

      2,530         2,647   

6.75%, 9/1/34

      1,750         1,835   

Saint Louis County IDA Senior Living Facilities Revenue Bonds, Series A, St. Andrews Resources for Seniors, Prerefunded,

      

6.38%, 12/1/17(4)

      3,005         3,147   
  

 

 

     

 

 

  
        7,629   
     

 

 

  

Nevada - 0.9%

      

Clark County Airport System Revenue Refunding Bonds, Senior Series A,

      

5.00%, 7/1/40

      4,000         4,465   
  

 

 

     

 

 

  

New Jersey - 5.6%

      

New Jersey State EDA Private Activity Revenue Bonds (AMT), The Goethals Project,

      

5.38%, 1/1/43

      2,500         2,648   

New Jersey State EDA Revenue Bonds, MSU Student Housing Project - Provident Group,

      

5.88%, 6/1/42

      3,000         3,220   

New Jersey State EDA Revenue Bonds, Provident Group Rowan Properties LLC,

      

5.00%, 1/1/25

      1,950         2,138   

5.00%, 1/1/48

      1,665         1,681   

New Jersey State EDA Special Facility Revenue Bonds (AMT), Continental Airlines, Inc. Project,

      

5.63%, 11/15/30

      2,000         2,146   

New Jersey State Health Care Facilities Financing Authority Revenue Bonds, St. Joseph’s Healthcare System, Prerefunded,

      

6.63%, 7/1/18(4)

      3,000         3,237   

New Jersey State Health Care Facilities Financing Authority Revenue Refunding Bonds, St. Joseph’s Healthcare System,

      

5.00%, 7/1/30

      1,000         1,068   

5.00%, 7/1/41

      2,000         2,060   

New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series AA, Transportation Program,

      

5.25%, 6/15/41

      2,000         2,035   

5.00%, 6/15/45

      2,250         2,240   

New Jersey State Turnpike Authority Revenue Bonds, Series E,

      

5.00%, 1/1/45

      5,000         5,486   
  

 

 

     

 

 

  
        27,959   
     

 

 

  

New York - 9.0%

      

Buffalo & Erie County Industrial Land Development Corp. Revenue Bonds, Catholic Health System Obligation,

      

5.25%, 7/1/35

      1,500         1,671   

5.00%, 7/1/40

      2,770         2,999   

Metropolitan Transportation Authority Revenue Bonds, Subseries D-1,

      

5.00%, 11/15/39

      5,000         5,504   

New York Counties Tobacco Trust VI Tobacco Settlement Pass-Through Revenue Refunding Bonds,

      

5.00%, 6/1/51

      1,000         1,004   

New York State Convention Center Development Corp. Revenue Refunding Bonds, Hotel Unit Fee Secured,

      

5.00%, 11/15/40

      5,000         5,559   

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1% continued

      

New York - 9.0% continued

      

New York State Dormitory Authority Non State Supported Debt Revenue Refunding Bonds, Series A, New School,

      

5.00%, 7/1/45

    $ 2,375      $ 2,598  

New York State Dormitory Authority Personal Income Tax Revenue Refunding Bonds, Series A,

      

5.00%, 3/15/33

      3,500        3,994  

New York State Liberty Development Corp. Revenue Bonds, Series A, National Sports Museum Project,

      

6.13%, 2/15/19(3) (6)

      2,200        —    

New York State Thruway Authority General Junior Indebtedness Obligation Revenue Bonds, Series A, Junior Lien,

      

5.00%, 1/1/46

      5,000        5,545  

New York State Transportation Development Corp. Special Facility Revenue Bonds (AMT), Laguardia Airport Terminal B Redevelopment,

      

5.25%, 1/1/50

      5,000        5,243  

New York State Transportation Development Corp. Special Facility Revenue Refunding Bonds (AMT), American Airlines, Inc.,

      

5.00%, 8/1/26

      3,000        3,096  

5.00%, 8/1/31

      2,000        2,044  

Port Authority of New York & New Jersey Consolidated Revenue Refunding Bonds, Series 198,

      

5.00%, 11/15/41

      5,000        5,719  
  

 

 

     

 

 

  
        44,976  
     

 

 

  

North Carolina - 0.4%

      

North Carolina State Medical Care Commission Health Care Facilities First Mortgage Revenue Bonds, Series A, Deerfield Community, Prerefunded,

      

6.13%, 11/1/18(4)

      2,000        2,169  
  

 

 

     

 

 

  

Ohio - 5.5%

      

Lucas County Health Care Facilities Revenue Refunding & Improvement Bonds, Series A, Lutheran Homes, Prerefunded,

      

7.00%, 11/1/20(4)

      4,000        4,762  

Ohio State Fresh Water Development Authority Revenue Bonds, Series A,

      

5.00%, 12/1/21

      5,690        6,527  

Ohio State Turnpike Commission Revenue Bonds, Junior Lien, Infrastructure Project,

      

5.00%, 2/15/48

      3,000        3,285  

Ohio State University Hospital Health System Revenue Refunding Bonds,

      

5.00%, 1/15/41

      4,655        5,023  

Southeastern Ohio Port Authority Hospital Facilities Revenue Refunding Bonds, Memorial Health System,

      

5.00%, 12/1/35

      1,750        1,765  

5.00%, 12/1/43

      1,350        1,315  

Toledo-Lucas County Port Authority Facilities Revenue Refunding Bonds, CSX Transportation, Inc. Project,

      

6.45%, 12/15/21(7)

      4,000        4,720  
  

 

 

     

 

 

  
        27,397  
     

 

 

  

Pennsylvania - 3.1%

      

Butler County Hospital Authority Revenue Bonds, Butler Health System Project, Prerefunded,

      

7.13%, 7/1/19(4)

      3,000        3,410  

Delaware County IDA Revenue Refunding Bonds, Covanta Project,

      

5.00%, 7/1/43

      2,500        2,489  

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Edinboro University Foundation, Prerefunded,

      

6.00%, 7/1/20(4)

      2,500        2,866  

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Shippensburg University,

      

6.25%, 10/1/43

      2,000        2,184  

Philadelphia Water & Wastewater Revenue Bonds, Series A,

      

5.00%, 7/1/45

      4,000        4,313  
  

 

 

     

 

 

  
        15,262  
     

 

 

  

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1% continued

      

Rhode Island - 1.5%

      

Rhode Island State Turnpike & Bridge Authority Motor Fuel Tax Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/40

    $ 3,000       $ 3,360   

Tobacco Settlement Financing Corp. Revenue Refunding Bonds, Series A,

      

5.00%, 6/1/40

      4,000         4,130   
  

 

 

     

 

 

  
        7,490   
     

 

 

  

South Carolina - 1.1%

      

South Carolina State Public Service Authority Obligations Revenue Refunding Bonds, Series C,

      

5.00%, 12/1/46

      2,000         2,193   

South Carolina State Public Service Authority Revenue Bonds, Series E,

      

5.25%, 12/1/55

      3,000         3,283   
  

 

 

     

 

 

  
        5,476   
     

 

 

  

Texas - 10.4%

      

Arlington Higher Education Finance Corp. Revenue Bonds, Series A, Lifeschool Dallas (PSF-Gtd.),

      

5.00%, 8/15/39

      2,000         2,239   

Board of Managers Joint Guadalupe County-City of Seguin Hospital Mortgage Revenue Refunding Bonds,

      

5.00%, 12/1/40

      1,500         1,523   

5.00%, 12/1/45

      2,000         2,019   

Lower Colorado River Authority Transmission Contract Revenue Refunding Bonds,

      

5.00%, 5/15/40

      3,000         3,292   

Mission Economic Development Corp. Revenue Bonds, Senior Lien (AMT), Natgasoline Project,

      

5.75%, 10/1/31

      1,750         1,808   

New Hope Cultural Education Facilities Finance Corp. Retirement Facility Revenue Refunding Bonds, Legacy at Willow Bend Project,

      

5.00%, 11/1/46

      3,000         3,004   

New Hope Cultural Education Facilities Finance Corp. Student Housing Revenue Bonds, CHF-Collegiate Housing Corpus Christi,

      

5.00%, 4/1/48

      4,500         4,603   

New Hope Cultural Education Facilities Finance Corp. Student Housing Revenue Bonds, CHF-Collegiate Housing San Antonio,

      

5.00%, 4/1/48

      3,000         3,051   

San Antonio Electric & Gas Revenue Bonds, Junior Lien,

      

5.00%, 2/1/43

      2,500         2,762   

Texas State PFA Charter School Finance Corp. Education Revenue Bonds, Series A, Cosmos Foundation, Inc., Prerefunded,

      

6.20%, 2/15/20(4)

      3,500         3,976   

Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, Blueridge Transportation (AMT),

      

5.00%, 12/31/45

      2,000         2,099   

5.00%, 12/31/50

      1,000         1,046   

Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, LBJ Infrastructure,

      

7.00%, 6/30/40

      3,000         3,430   

Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, NTE Mobility,

      

6.88%, 12/31/39

      2,500         2,833   

Texas State Transportation Commission Central Turnpike System Subordinate Revenue Refunding Bonds, Series C,

      

5.00%, 8/15/42

      4,475         4,712   

Travis County HFDC Revenue Bonds, Westminster Manor Project, Prerefunded,

      

7.00%, 11/1/20(4)

      805         950   

7.13%, 11/1/20(4)

      2,000         2,370   

Travis County HFDC Revenue Bonds, Westminster Manor Project, Unrefunded Balance,

      

7.00%, 11/1/30

      195         220   

University of Texas Permanent University Fund Revenue Refunding Bonds, Series B,

      

5.25%, 7/1/28

      5,000         6,235   
  

 

 

     

 

 

  
        52,172   
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 97.1% continued

      

Virginia - 0.5%

      

Virginia State College Building Authority Educational Facilities Revenue Bonds, Marymount University Project Green Bonds,

      

5.25%, 7/1/35

    $ 270      $ 272  

5.00%, 7/1/45

      2,515        2,401  
  

 

 

     

 

 

  
        2,673  
     

 

 

  

Washington - 1.6%

      

Port of Seattle Revenue Bonds, Series A,

      

5.00%, 4/1/40

      3,000        3,354  

Washington State Health Care Facilities Authority Revenue Bonds, Central Washington Health Services, Prerefunded,

      

7.00%, 7/1/19(4)

      4,000        4,524  
  

 

 

     

 

 

  
        7,878  
     

 

 

  

Total Municipal Bonds

(Cost $473,442)

         485,723  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 3.1%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(8) (9)

      15,601,480      $ 15,601  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $15,601)

         15,601  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 1.0%

      

New York City Municipal Water Finance Authority Water and Sewer System Revenue Bonds, Series BB, 2nd General Resolution,

      

0.74%, 1/3/17(7)

    $ 5,000      $ 5,000  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $5,000)

         5,000  
     

 

 

  

Total Investments - 101.2%

(Cost $494,043)

         506,324  
     

 

 

  

Liabilities less Other Assets - (1.2%)

         (6,068 ) 
     

 

 

  

NET ASSETS - 100.0%

       $ 500,256  
     

 

 

  

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(2) Restricted security that has been deemed illiquid. At December 31, 2016, the value of these restricted illiquid securities amounted to approximately $4,132,000 or 0.8% of net assets. Additional information on these restricted illiquid securities is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

California State School Finance Authority Charter School Revenue Refunding Bonds, Aspire Public Schools,

      

5.00%, 8/1/46

      2/4/16-12/6/16      $ 3,141  

Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., Prerefunded,

      

5.70%, 9/1/17

      7/25/08        915  

 

(3) Issuer has defaulted on terms of debt obligation. Income is not being accrued.
(4) Maturity date represents the prerefunded date.
(5) When-Issued Security. Coupon rate is not in effect at December 31, 2016.
(6) Level 3 asset that is worthless, bankrupt or has been delisted.
(7) Variable rate security. Rate as of December 31, 2016 is disclosed.
(8) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(9) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AAA

      3.4 % 

AA

      11.7  

A

      30.1  

BBB

      35.0  

BB

      7.8  

B

      2.4  

Not Rated

      6.5  

Cash Equivalents

      3.1  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

* Credit quality ratings are based on converting the available Moody’s, S&P Global, 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The S&P Global’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.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF
INVESTMENTS		  

Airport

      8.4 % 

Development

      7.2  

Education

      5.3  

General

      8.3  

Higher Education

      9.2  

Medical

      19.6  

Tobacco Settlement

      5.2  

Transportation

      13.2  

Water

      7.8  

All other sectors less than 5%

      15.8  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

     LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

INVESTMENTS

    (000S)      (000S)      (000S)      (000S)  

Municipal Bonds

            

Florida

    $ —        $ 23,190      $ 67      $ 23,257  

All other states(1)

      —          462,466        —          462,466  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Municipal Bonds

      —          485,656        67        485,723  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments

      —          5,000        —          5,000  

Investment Companies

      15,601        —          —          15,601  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 15,601      $ 490,656      $ 67      $ 506,324  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD MUNICIPAL FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

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

 

     BALANCE
AS OF
3/31/16
(000S)		      REALIZED
GAINS
(LOSSES)
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		      PURCHASES
(000S)		      SALES
(000S)		      TRANSFERS
INTO
LEVEL 3
(000S)		      TRANSFERS
OUT OF
LEVEL 3
(000S)		      BALANCE
AS OF
12/31/16
(000S)		      CHANGE IN UNREALIZED
APPRECIATION
(DEPRECIATION) FROM
INVESTMENTS STILL HELD
AT 12/31/16
(000S)		  

Municipal Bonds

                           

Florida

    $ —        $ —        $ 67      $ —        $ —        $ —        $ —        $ 67      $ 67  

The Fund valued the securities included in the Balance as of 12/31/16 above using valuations provided by the adviser’s pricing and valuation committee.

 

     FAIR VALUE AT
12/31/16
(000S)		      VALUATION
TECHNIQUES		   

UNOBSERVABLE

INPUTS

Municipal Bonds

    $ 67      Consensus Pricing    Price to Earnings Multiple/Liquidity Discount

The significant unobservable inputs used in the fair value measurement is the price to earnings multiple along with liquidity discounts. Significant increases in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 494,043  
  

 

 

  

Gross tax appreciation of investments

    $ 22,384  

Gross tax depreciation of investments

      (10,103 ) 
  

 

 

  

Net tax appreciation of investments

    $ 12,281  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Tax-Exempt Portfolio

    $ 55,120      $ 92,943      $ 148,063      $ 20      $ —    

Northern Institutional Funds - U.S. Government Portfolio

      —          91,152        75,551        9        15,601  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 55,120      $ 184,095      $ 223,614      $ 29      $ 15,601  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Institutional Funds - Tax-Exempt Portfolio was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guaranty Municipal Corporation

AMT - Alternative Minimum Tax

COPS - Certificates of Participation

EDA - Economic Development Authority

G.O. - General Obligation

Gtd. - Guaranteed

HFDC - Health Facilities Development Corp.

IDA - Industrial Development Authority

PFA - Public Finance Authority

PSF - Permanent School Fund

TRB - Tax Revenue Bonds

 

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6%

      

Alabama - 0.4%

      

Black Belt Energy Gas District Gas Supply Revenue Bonds, Series A,

      

4.00%, 6/1/21(1)

    $ 5,000      $ 5,329  

University of Alabama General Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/22

      5,875        6,784  
  

 

 

     

 

 

  
        12,113  
     

 

 

  

Alaska - 0.8%

      

Alaska State G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/28

      5,560        6,405  

Alaska State G.O. Unlimited Bonds, Series B,

      

5.00%, 8/1/29

      4,895        5,609  

Anchorage Electric Utility Revenue Refunding Bonds, Series A, Senior Lien,

      

5.00%, 12/1/41

      5,000        5,529  

Anchorage Water Revenue Refunding Bonds (NATL Insured),

      

5.00%, 5/1/37

      1,700        1,718  

University of Alaska General Revenue Bonds, Series V-1,

      

5.00%, 10/1/40

      2,250        2,513  
  

 

 

     

 

 

  
        21,774  
     

 

 

  

Arizona - 4.4%

      

Arizona Board of Regents State University System Revenue Refunding Bonds, Series A, Green Bonds,

      

5.00%, 7/1/26

      6,630        7,895  

Arizona State School Facilities Board COPS, Prerefunded,

      

5.25%, 9/1/18(2)

      10,000        10,658  

Arizona State Transportation Board Excise Tax Revenue Refunding Bonds,

      

5.00%, 7/1/25

      5,000        5,926  

Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road, Prerefunded,

      

5.25%, 7/1/19(2)

      10,000        10,933  

Arizona State Transportation Board Highway Revenue Refunding Bonds,

      

5.00%, 7/1/28

      19,540        23,159  

5.00%, 7/1/32

      5,000        5,894  

Arizona State Transportation Board Highway Subordinated Revenue Bonds, Subseries A, Prerefunded,

      

5.00%, 7/1/22(2)

      1,965        2,273  

Arizona State Transportation Board Highway Subordinated Revenue Bonds, Subseries A, Unrefunded Balance,

      

5.00%, 7/1/28

      3,035        3,446  

Chandler Excise TRB,

      

5.00%, 7/1/27

      5,000        5,846  

Maricopa County Industrial Development Authority Revenue Refunding Bonds, Banner Health Obligation Group,

      

5.00%, 1/1/35

      5,000        5,628  

Maricopa County Unified School District No. 48 Scottsdale G.O. Unlimited Refunding Bonds,

      

5.00%, 7/1/21

      5,000        5,696  

Maricopa County Unified School District No. 89 Dysart G.O. Limited Refunding Bonds (BAM Insured),

      

4.00%, 7/1/26

      2,500        2,765  

Phoenix Civic Airport Improvement Corp. Revenue Refunding Bonds (AMT), Senior Lien,

      

5.00%, 7/1/20

      1,500        1,653  

Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien,

      

5.00%, 7/1/22

      3,000        3,323  

Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds, Series B, Junior Lien,

      

5.00%, 7/1/26

      5,000        5,890  

Salt River Project Agricultural Improvement & Power District Electric Revenue Refunding Bonds, Series A,

      

5.00%, 12/1/23

      10,000        11,383  

Salt River Project Agricultural Improvement & Power District Electric System Revenue Refunding Bonds, Series A,

      

5.00%, 1/1/29

      2,500        3,006  

5.00%, 1/1/38

      1,000        1,157  

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND continued   

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Arizona - 4.4% continued

      

Scottsdale Preservation Authority Excise Tax Revenue Refunding Bonds,

      

5.25%, 7/1/24

    $ 5,990      $ 6,679  
  

 

 

     

 

 

  
        123,210  
     

 

 

  

California - 8.9%

      

Cabrillo Community College District G.O. Unlimited CABS, Series B, Election of 2004 (NATL Insured),

      

0.00%, 8/1/39(3)

      11,755        4,029  

California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance,

      

5.75%, 5/1/30

      80        80  

California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance (AMBAC Insured),

      

5.00%, 10/1/18

      75        75  

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 9/1/20

      1,000        1,119  

5.00%, 3/1/26

      10,000        11,887  

6.25%, 11/1/34

      5,000        5,605  

California State Health Facilities Financing Authority Revenue Refunding Bonds, Series B, Sutter Health,

      

5.00%, 11/15/46

      4,200        4,659  

California State Infrastructure & Economic Development Bank Revenue Refunding Bonds, Academy Motion Picture Arts,

      

5.00%, 11/1/35

      2,000        2,256  

California State University Revenue Refunding Bonds, Series A,

      

5.00%, 11/1/31

      10,000        11,703  

5.00%, 11/1/32

      5,000        5,826  

California State University Systemwide Revenue Refunding Bonds, Series B-3,

      

4.00%, 11/1/23(1)

      200        221  

California State Various Purpose G.O. Unlimited Refunding Bonds, Group B,

      

5.00%, 9/1/17

      10,000        10,273  

4.00%, 9/1/33

      10,750        11,286  

California State Veterans G.O. Unlimited Refunding Bonds, Series CM (AMT),

      

4.00%, 12/1/32

      2,165        2,224  

California Statewide Communities Development Authority Student Housing Revenue Refunding Bonds, Chf-Irvine LLC,

      

5.00%, 5/15/29

      1,250        1,393  

Carlsbad Unified School District G.O. Unlimited Convertible CABS, Series C, Election of 2006,

      

1.53%, 8/1/35

      11,850        10,249  

Contra Costa Water District Revenue Refunding Bonds, Series R,

      

5.00%, 10/1/18

      1,575        1,681  

Cupertino Union School District Crossover G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 8/1/27

      435        507  

Desert Community College District G.O. Unlimited CABS, Series C, Election of 2004 (AGM Insured),

      

0.00%, 8/1/46(3)

      12,000        2,456  

Los Angeles Community College District G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 8/1/30

      10,000        11,695  

5.00%, 8/1/31

      5,000        5,829  

Los Angeles County G.O. Unlimited TRANS,

      

3.00%, 6/30/17

      15,000        15,158  

Los Angeles Department of Airports Revenue Bonds, Series A,

      

5.25%, 5/15/22

      5,000        5,435  

Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured),

      

5.00%, 7/1/39

      3,000        3,047  

Los Angeles G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 9/1/20

      55        62  

Los Angeles Municipal Improvement Corp. Lease Revenue Refunding Bonds, Series B, Real Property,

      

5.00%, 11/1/27

      5,000        5,917  

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

California - 8.9% continued

      

Los Angeles TRANS, Series B,

      

3.00%, 6/29/17

    $ 10,325      $ 10,431  

Los Angeles Unified School District G.O. Unlimited Bonds, Series A, Election of 2008,

      

5.00%, 7/1/17

      10,000        10,206  

Metropolitan Water District of Southern California State Revenue Bonds, Series A,

      

5.00%, 7/1/32

      5,000        5,095  

Monterey County Public Facilities Financing COPS,

      

5.00%, 10/1/35

      1,860        2,120  

Orange County Sanitation District Wastewater Revenue Refunding, Series A,

      

5.00%, 2/1/36

      6,660        7,753  

San Diego Community College District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/30

      1,765        2,117  

5.00%, 8/1/31

      10,000        11,931  

San Diego County Regional Transportation Commission Revenue Bonds, Series A,

      

5.00%, 4/1/36

      5,000        5,807  

San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds, Series A,

      

5.00%, 5/15/33

      10,000        11,668  

San Francisco Bay Area Toll Bridge Authority Revenue Bonds,

      

5.00%, 4/1/27

      1,145        1,300  

San Francisco Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, Prerefunded,

      

5.13%, 4/1/19(2)

      7,390        8,009  

San Francisco City & County Airports Commission International Airport Revenue Bonds,

      

5.00%, 5/1/46

      620        697  

San Francisco City & County Airports Commission Revenue Bonds, Series E,

      

5.25%, 5/1/32

      2,500        2,691  

San Francisco City & County Public Utilities Commission Water Revenue Refunding Bonds,

      

5.00%, 11/1/27

      5,000        6,083  

San Jose Unified School District Santa Clara County G.O. Unlimited CABS, Series C, Election of 2002 (NATL Insured),

      

0.00%, 8/1/30(3)

      2,500        1,603  

San Mateo County Community College District G.O. Unlimited CABS, Series B, Election of 2005 (NATL Insured),

      

0.00%, 9/1/35(3)

      5,000        2,494  

Santa Clara Valley Water District COPS, Series C,

      

5.00%, 6/1/24

      650        775  

Santa Cruz County G.O. Unlimited TRANS,

      

3.00%, 6/29/17

      10,000        10,097  

Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, Prerefunded,

      

6.00%, 7/1/18(2)

      5,000        5,358  

University of California General Revenue Bonds, Series Q, Prerefunded,

      

5.25%, 5/15/17(2)

      2,500        2,566  

University of California General Revenue Bonds, Series U,

      

5.00%, 5/15/22

      5,000        5,527  
  

 

 

     

 

 

  
        249,000  
     

 

 

  

Colorado - 1.3%

      

Cherry Creek School District No. 5 G.O. Unlimited Refunding Bonds (State Aid Withholding),

      

5.00%, 12/15/17

      5,000        5,194  

Colorado State Board of Governors University Enterprise System Revenue Bonds, Series E-1 (State Higher Education Intercept Program),

      

5.00%, 3/1/34

      2,150        2,448  

Colorado State Educational & Cultural Facilities Authority Revenue Bonds, University of Denver Project (NATL Insured),

      

5.00%, 3/1/35

      3,000        3,565  

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND continued   

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Colorado - 1.3% continued

      

Denver City & County Airport System Revenue Bonds, Series B,

      

5.00%, 11/15/25

    $ 3,200      $ 3,632  

Denver City & County Airport System Subordinate Revenue Bonds, Series B,

      

5.25%, 11/15/28

      1,500        1,728  

5.25%, 11/15/29

      1,740        1,992  

Denver City & County Excise Tax Revenue Refunding Bonds, Series A (AGC Insured), Prerefunded,

      

6.00%, 9/1/19(2)

      6,550        7,326  

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        5,962  

Platte River Co. Power Authority Power Revenue Refunding Bonds, Series JJ,

      

5.00%, 6/1/27

      5,000        6,038  
  

 

 

     

 

 

  
        37,885  
     

 

 

  

Connecticut - 1.2%

      

Connecticut State G.O. Unlimited Bonds, Series B,

      

5.00%, 5/15/22

      2,000        2,230  

5.00%, 4/15/23

      5,500        6,240  

Connecticut State G.O. Unlimited Bonds, Series D,

      

5.00%, 11/1/23

      5,000        5,592  

Connecticut State G.O. Unlimited Bonds, Series E,

      

5.00%, 9/15/26

      3,825        4,322  

5.00%, 10/15/26

      5,000        5,879  

4.00%, 9/15/27

      5,000        5,337  

Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series B,

      

3.00%, 12/1/22

      1,725        1,798  

South Central Regional Water Authority Water System Revenue Bonds, 22nd Series B (AGM Insured), Prerefunded,

      

5.00%, 8/1/18(2)

      2,000        2,119  
  

 

 

     

 

 

  
        33,517  
     

 

 

  

Delaware - 0.4%

      

Delaware State G.O. Unlimited Bonds, Series A,

      

5.00%, 7/1/17

      4,590        4,685  

Delaware State G.O. Unlimited Bonds, Unrefunded Balance,

      

5.00%, 7/1/23

      969        1,074  

Delaware State Transportation Authority System Revenue Refunding Bonds,

      

5.00%, 7/1/26

      1,500        1,832  

5.00%, 7/1/27

      3,000        3,638  
  

 

 

     

 

 

  
        11,229  
     

 

 

  

District of Columbia - 1.0%

      

District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, Prerefunded,

      

5.25%, 10/1/18(2)

      1,000        1,070  

5.50%, 10/1/18(2)

      10,500        11,280  

6.00%, 10/1/18(2)

      5,000        5,414  

Metropolitan Washington Airports Authority System Revenue Bonds, Series C,

      

5.13%, 10/1/39

      2,460        2,590  

Metropolitan Washington Airports Authority System Revenue Bonds, Series C (AMT),

      

5.00%, 10/1/20

      3,000        3,309  

5.00%, 10/1/26

      1,500        1,672  

Metropolitan Washington Airports Authority System Revenue Refunding Bonds, Series A (AMT),

      

5.00%, 10/1/28

      3,000        3,363  
  

 

 

     

 

 

  
        28,698  
     

 

 

  

Florida - 6.2%

      

Broward County Airport System Revenue Bonds, Series C,

      

5.25%, 10/1/28

      6,185        7,165  

Broward County Airport System Revenue Bonds, Series Q-1,

      

5.00%, 10/1/42

      1,295        1,426  

Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured),

      

5.00%, 9/1/24

      1,000        1,113  

5.00%, 9/1/25

      1,000        1,109  

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Florida - 6.2% continued

      

Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT),

      

5.00%, 9/1/23

    $ 2,500      $ 2,732  

Broward County School Board Refunding COPS, Series A,

      

5.00%, 7/1/28

      2,265        2,636  

Florida State Board of Education Lottery Revenue Refunding Bonds, Series B,

      

5.00%, 7/1/24

      10,000        11,809  

Florida State Board of Public Education Capital Outlay G.O. Unlimited Bonds, Series A,

      

5.25%, 6/1/28

      11,135        11,865  

Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 6/1/24

      3,000        3,585  

Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series D,

      

5.00%, 6/1/17

      10,000        10,174  

Florida State Department of Environmental Protection Preservation Florida Forever Revenue Refunding Bonds, Series A,,

      

5.00%, 7/1/19

      5,000        5,417  

Florida State Department of Transportation G.O. Unlimited Bonds, Right of Way,

      

5.25%, 7/1/37

      12,475        12,873  

Florida State Department of Transportation G.O. Unlimited Refunding Bonds, Right of Way,

      

5.00%, 7/1/24

      5,000        5,981  

Florida State Department of Transportation G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 7/1/27

      3,460        4,193  

Florida State Municipal Power Agency All Requirements Revenue Bonds, Prerefunded,

      

5.00%, 10/1/18(2)

      1,445        1,537  

Florida State Ports Financing Commission Revenue Refunding Bonds, Series B (AMT), State Transportation Trust Fund,

      

5.38%, 10/1/29

      3,395        3,816  

Florida State Turnpike Authority Revenue Bonds, Series B,

      

5.00%, 7/1/22

      3,000        3,468  

Hillsborough County Aviation Authority Customer Facilities Charge Revenue Bonds, Series A, Tampa International Airport,

      

5.00%, 10/1/44

      2,500        2,717  

Hillsborough County Aviation Authority Subordinate Revenue Bonds, Series B, Tampa International Airport,

      

5.00%, 10/1/44

      4,000        4,369  

Lee County School Board Refunding COPS,

      

5.00%, 8/1/22

      800        915  

5.00%, 8/1/23

      1,125        1,301  

Miami Beach Redevelopment Agency Tax Increment Tax Allocation Refunding Bonds, City Center (AGM Insured),

      

5.00%, 2/1/31

      2,250        2,544  

Miami Beach Stormwater Revenue Bonds,

      

5.00%, 9/1/41

      2,500        2,753  

Miami-Dade County Aviation Revenue Refunding Bonds, Series A (AMT),

      

5.00%, 10/1/27

      1,320        1,471  

5.00%, 10/1/32

      3,890        4,255  

Miami-Dade County Aviation Revenue Refunding Bonds, Series B,

      

5.00%, 10/1/37

      650        720  

Miami-Dade County G.O. Unlimited Bonds, Series 2014-A, Building Better Communities Program,

      

5.00%, 7/1/34

      5,000        5,715  

Miami-Dade County G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 7/1/25

      10,000        11,947  

Miami-Dade County School Board COPS, Series A,

      

5.00%, 5/1/32

      5,000        5,546  

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND continued   

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Florida - 6.2% continued

      

Miami-Dade County School District G.O. Unlimited,

      

5.00%, 3/15/41

    $ 2,500      $ 2,758  

Miami-Dade County Water & Sewer System Revenue Refunding Bonds, Series B (AGM Insured),

      

5.25%, 10/1/20

      3,000        3,369  

5.25%, 10/1/22

      2,500        2,920  

Orange County School Board Refunding COPS, Series C,

      

5.00%, 8/1/31

      2,175        2,491  

Palm Beach County Solid Waste Authority Revenue Refunding Bonds, Prerefunded,

      

5.00%, 10/1/21(2)

      80        91  

Palm Beach County Solid Waste Authority Revenue Refunding Bonds, Unrefunded Balance,

      

5.00%, 10/1/31

      4,920        5,480  

Reedy Creek Improvement District G.O. Limited Bonds, Series A,

      

5.25%, 6/1/29

      5,000        5,802  

5.25%, 6/1/30

      5,000        5,779  

Sarasota County Utility System Revenue Bonds, Series A,

      

4.00%, 10/1/43

      10,000        10,312  
  

 

 

     

 

 

  
        174,154  
     

 

 

  

Georgia - 3.4%

      

Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, Prerefunded,

      

5.50%, 1/1/19(2)

      10,000        10,830  

Georgia State G.O. Unlimited Bonds, Series A, Tranche 2,

      

5.00%, 2/1/26

      5,000        6,013  

5.00%, 2/1/28

      10,000        12,124  

Georgia State G.O. Unlimited Refunding Bonds, Series C-1,

      

5.00%, 1/1/24

      5,000        5,965  

4.00%, 1/1/25

      24,300        27,551  

Georgia State G.O. Unlimited Refunding Bonds, Series F,

      

5.00%, 7/1/25

      3,050        3,715  

5.00%, 12/1/28

      10,000        12,239  

4.00%, 1/1/29

      10,000        11,040  

Municipal Electric Authority of Georgia Revenue Bonds, Plant Vogtle Units 3 & 4 Project,

      

5.00%, 7/1/60

      2,500        2,697  

5.50%, 7/1/60

      2,500        2,805  
  

 

 

     

 

 

  
        94,979  
     

 

 

  

Hawaii - 1.4%

      

Hawaii State Airports System Revenue Bonds, Series A,

      

5.25%, 7/1/29

      1,000        1,108  

Hawaii State G.O. Unlimited Bonds, Series FG,

      

5.00%, 10/1/29

      2,500        2,986  

Hawaii State G.O. Unlimited Refunding Bonds, Series EF,

      

5.00%, 11/1/21

      5,500        6,290  

Hawaii State G.O. Unlimited Refunding Bonds, Series EP,

      

5.00%, 8/1/26

      10,000        11,791  

Honolulu City & County Wastewater System Revenue Bonds, Senior Series A, First Bond Resolution,

      

5.00%, 7/1/27

      3,310        3,928  

Honolulu City & County Wastewater System Revenue Refunding Bonds, Senior Series B, First Bond Resolution,

      

5.00%, 7/1/27

      10,000        11,867  
  

 

 

     

 

 

  
        37,970  
     

 

 

  

Idaho - 0.2%

      

Idaho State G.O. Unlimited TANS,

      

2.00%, 6/30/17

      5,000        5,027  
  

 

 

     

 

 

  

Illinois - 2.4%

      

Chicago Midway Airport Revenue Refunding Bonds, Second Lien Series B,

      

5.25%, 1/1/34

      2,500        2,764  

Chicago Midway Airport Revenue Refunding Bonds, Series A (AMT), Second Lien,

      

5.50%, 1/1/30

      2,025        2,292  

Chicago O’Hare International Airport General Revenue Refunding Bonds, Series C, Senior Lien,

      

5.00%, 1/1/38

      7,105        7,761  

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Illinois - 2.4% continued

      

Chicago O’Hare International Airport Revenue Bonds, Series E, Senior Lien,

      

1/1/25(4)

    $ 5,000      $ 5,762  

1/1/26(4)

      5,000        5,760  

Chicago O’Hare International Airport Revenue Refunding Bonds, Series B,

      

5.00%, 1/1/29

      5,000        5,616  

Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago,

      

5.25%, 3/1/40

      2,500        2,695  

Illinois State Finance Authority Revenue Refunding Bonds, Series A, OSF Healthcare System,

      

5.00%, 11/15/35

      1,500        1,636  

Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL-IBC FGIC Insured), Prerefunded,

      

5.25%, 2/1/17(2)

      1,830        1,837  

Illinois State Municipal Electric Agency Power Supply Revenue Refunding Bonds, Series A,

      

4.00%, 2/1/33

      7,000        7,169  

Kendall Kane & Will Counties Community Unit School District No. 308 G.O. Unlimited Bonds, Series A,

      

5.00%, 2/1/29

      2,000        2,150  

Sangamon County School District No. 186 Springfield G.O. Limited Refunding Bonds, Series B (BAM Insured),

      

5.00%, 2/1/23

      5,965        6,719  

Will County G.O. Unlimited Bonds,

      

4.00%, 11/15/36

      5,000        5,101  

Will Grundy Etc. Counties Community College District No. 525 G.O. Unlimited Refunding Bonds, Alternative Revenue Source,

      

5.25%, 6/1/36

      2,500        2,794  

Winnebago County Public Safety Sales Tax G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 12/30/24

      6,040        6,826  
  

 

 

     

 

 

  
        66,882  
     

 

 

  

Indiana - 1.3%

      

Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority,

      

5.25%, 10/1/31

      5,750        6,466  

5.25%, 10/1/38

      2,980        3,340  

Indiana State Finance Authority Highway Revenue Refunding Bonds, Series C,

      

5.00%, 6/1/29

      10,000        12,176  

Indiana State Finance Authority Hospital Revenue Refunding Bonds, Series A, University Health Obligated Group,

      

5.00%, 12/1/25

      3,855        4,566  

5.00%, 12/1/40

      5,000        5,558  

Merrillville Multi School Building Corp. First Mortgage Revenue Bonds (State Aid Withholding), Prerefunded,

      

5.25%, 1/15/18(2)

      1,000        1,043  

Porter County Jail Building Corp. First Mortgage Revenue Refunding Bonds (AGM Insured),

      

5.50%, 7/10/21

      1,500        1,624  

5.50%, 1/10/24

      1,135        1,282  
  

 

 

     

 

 

  
        36,055  
     

 

 

  

Kansas - 0.1%

      

Kansas State Development Finance Authority Revenue Refunding Bonds, Series D-2, Kansas State University Housing Projects,

      

5.00%, 4/1/23

      3,110        3,553  
  

 

 

     

 

 

  

Kentucky - 1.1%

      

Kentucky State Property & Buildings Commission Revenues Refunding Bonds, Series B, Project No. 112,

      

5.00%, 11/1/27

      10,000        11,600  

5.00%, 11/1/28

      7,500        8,644  

Kentucky State Turnpike Authority Economic Development Road Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/27

      5,305        6,237  

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Kentucky - 1.1% continued

      

Lexington-Fayette Urban County Government Various Purpose G.O. Unlimited Bonds, Series C,

      

5.00%, 9/1/24

    $ 2,000      $ 2,373  

Louisville & Jefferson County Metropolitan Sewer District & Drain System Revenue Bonds, Series A,

      

5.00%, 5/15/34

      3,000        3,348  
  

 

 

     

 

 

  
        32,202  
     

 

 

  

Louisiana - 0.5%

      

Louisiana State G.O. Unlimited Bonds, Series A,

      

5.00%, 9/1/24

      3,520        4,123  

Louisiana State G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 7/15/22

      1,200        1,371  

5.00%, 7/15/24

      2,825        3,282  

Louisiana State Highway Improvement Revenue Bonds, Series A,

      

5.00%, 6/15/30

      5,390        6,179  
  

 

 

     

 

 

  
        14,955  
     

 

 

  

Maryland - 3.7%

      

Anne Arundel County Consolidated General Improvement G.O. Limited Bonds,

      

5.00%, 4/1/27

      5,805        6,937  

Baltimore Wastewater Project Revenue Refunding Bonds, Series D,

      

5.00%, 7/1/24

      5,425        6,396  

Howard County Consolidated Public Improvement Project G.O. Unlimited Refunding Bonds,

      

5.00%, 2/15/24

      5,000        5,861  

Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series C,

      

5.00%, 3/1/19

      4,365        4,711  

Maryland State Department of Transportation Consolidated Revenue Bonds,

      

5.25%, 12/15/17

      9,880        10,281  

5.00%, 2/1/24

      6,800        7,948  

Maryland State Department of Transportation Consolidated Revenue Bonds, Third Issue,

      

4.00%, 12/15/25

      5,000        5,569  

Maryland State Department of Transportation Consolidated Revenue Refunding Bonds,

      

4.00%, 9/1/24

      3,500        3,945  

4.00%, 9/1/25

      5,000        5,638  

Maryland State Department of Transportation County Transportation Revenue Refunding Bonds,

      

4.00%, 5/15/20

      2,355        2,539  

Maryland State G.O. Unlimited Bonds, First Series B, Prerefunded,

      

4.50%, 3/15/19(2)

      5,000        5,340  

Maryland State G.O. Unlimited Bonds, Second Series B,

      

5.00%, 8/1/17

      10,000        10,239  

5.00%, 8/1/24

      10,000        11,517  

5.00%, 8/1/26

      2,750        3,164  

Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, The John Hopkins Health System,

      

5.00%, 5/15/37

      1,000        1,122  

Montgomery County Consolidated Public Improvement G.O. Unlimited Bonds, Series A,

      

4.00%, 7/1/31

      2,000        2,097  

Montgomery County G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 11/1/26

      1,000        1,200  

Saint Mary’s County G.O. Unlimited Bonds,

      

5.00%, 8/1/24

      500        598  

Washington Consolidated Public Improvement Suburban Sanitary District G.O. Unlimited Bonds, Second Series,

      

5.00%, 6/1/36

      6,375        7,471  
  

 

 

     

 

 

  
        102,573  
     

 

 

  

Massachusetts - 5.2%

      

Massachusetts Bay Transportation Authority Assessment Revenue Bonds, Series A, Prerefunded,

      

5.25%, 7/1/18(2)

      145        154  

5.25%, 7/1/18(2)

      355        376  

 

TAX-EXEMPT FIXED INCOME FUNDS     8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Massachusetts - 5.2% continued

      

Massachusetts State Bay Transportation Authority Sales Tax Revenue Refunding Bonds, Senior Series B,

      

5.00%, 7/1/29

    $ 10,000      $ 11,758  

Massachusetts State Bay Transportation Authority Sales TRB, Senior Series A,

      

5.00%, 7/1/24

      2,400        2,854  

Massachusetts State College Building Authority Revenue Refunding Bonds, Series B (XLCA Insured State Appropriation Intercept Program),

      

5.50%, 5/1/39

      5,000        6,250  

Massachusetts State Development Finance Agency Revenue Bonds, Series A, Harvard University, Prerefunded,

      

5.50%, 11/15/18(2)

      1,220        1,313  

Massachusetts State Development Finance Agency Revenue Bonds, Series A, Harvard University, Unrefunded,

      

5.50%, 11/15/18(2)

      3,780        4,067  

Massachusetts State Development Finance Agency Revenue Bonds, Series B, Harvard University, Prerefunded,

      

5.00%, 10/15/20(2)

      10,000        11,209  

Massachusetts State G.O. Limited Bonds, Series A, Prerefunded,

      

5.00%, 4/1/21(2)

      5,000        5,660  

Massachusetts State G.O. Limited Bonds, Series C, Consolidated Loan,

      

3.38%, 10/1/35

      2,500        2,377  

Massachusetts State G.O. Limited Bonds, Series E,

      

3.00%, 12/1/27

      2,500        2,530  

Massachusetts State G.O. Limited Bonds, Series F,

      

5.00%, 11/1/26

      5,820        6,743  

Massachusetts State G.O. Limited Refunding Bonds, Series A,

      

5.00%, 7/1/29

      5,000        5,891  

Massachusetts State G.O. Limited Refunding Bonds, Series B,

      

5.25%, 8/1/21

      2,500        2,873  

5.00%, 7/1/24

      10,000        11,916  

5.00%, 7/1/28

      2,000        2,480  

Massachusetts State G.O. Limited Refunding Bonds, Series B (AGM Insured),

      

5.25%, 9/1/25

      3,500        4,304  

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series J1, Partners Healthcare,

      

5.25%, 7/1/29

      5,000        5,422  

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series K, Massachusetts Institute of Technology,

      

5.50%, 7/1/22

      1,250        1,489  

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series M, Tufts University,

      

5.25%, 2/15/26

      1,250        1,510  

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series N, Harvard University,

      

6.25%, 4/1/20

      1,000        1,149  

Massachusetts State School Building Authority Sales Tax Revenue Refunding Bonds, Series A (AMBAC Insured), Prerefunded,

      

5.00%, 8/15/17(2)

      5,000        5,127  

Massachusetts State Special Obligation Revenue Bonds, Series A, Consolidated Loan (AGM Insured),

      

5.50%, 6/1/18

      500        531  

5.50%, 6/1/21

      500        579  

Massachusetts State Transportation Fund Revenue Bonds, Series B,

      

4.00%, 6/1/45

      10,000        10,325  

Massachusetts State Transportation Fund Revenue Refunding Bonds, Series A,

      

5.00%, 6/1/26

      6,340        7,759  

Massachusetts State Variable G.O. Limited Refunding Bonds, Series C,

      

0.84%, 2/1/17(5)

      10,000        10,000  

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Massachusetts - 5.2% continued

      

Massachusetts State Water Resources Authority General Revenue Bonds, Series J (AGM Insured),

      

5.50%, 8/1/22

    $ 3,300      $ 3,922  

Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B,

      

5.00%, 8/1/26

      5,000        5,550  

Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series C, Green Bond,

      

5.00%, 8/1/40

      6,240        7,172  

Massachusetts State Water Resources Authority Revenue Bonds, Series A, Escrowed to Maturity,

      

6.50%, 7/15/19

      805        853  

Newton G.O. Limited Refunding Bonds, Municipal Purpose Loan,

      

5.00%, 1/15/29

      2,720        3,269  
  

 

 

     

 

 

  
        147,412  
     

 

 

  

Michigan - 3.2%

      

Battle Creek School District G.O. Unlimited Refunding Bonds (Q-SBLF Insured),

      

5.00%, 5/1/27

      1,540        1,780  

Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I-A,

      

5.00%, 10/15/29

      5,000        5,722  

Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II-A,

      

5.00%, 10/15/27

      10,000        11,032  

Michigan State Building Authority Revenue Refunding Bonds, Series I,

      

5.00%, 10/15/29

      5,000        5,797  

5.00%, 10/15/32

      10,000        11,439  

4.00%, 10/15/36

      2,750        2,815  

Michigan State Finance Authority Clean Water State Revolving Fund Subordinate Revenue Refunding Bonds,

      

5.00%, 10/1/25

      3,970        4,591  

5.00%, 10/1/29

      5,000        5,995  

Michigan State Hospital Finance Authority Revenue Refunding Bonds, Ascension Health,

      

2.00%, 5/30/18(1)

      2,905        2,926  

Michigan State Hospital Finance Authority Revenue Refunding Bonds, Ascension Senior Credit Group,

      

5.00%, 11/15/46

      5,000        5,560  

Michigan State Hospital Finance Authority Variable Revenue Bonds, Ascension Health Credit Group,

      

5.00%, 11/15/27

      2,500        2,920  

Michigan State Housing Development Authority Revenue Bonds, Series B,

      

3.50%, 12/1/41

      3,000        2,778  

Michigan State Municipal Bond Authority Revenue Bonds, Clean Water Fund, Unrefunded Balance,

      

4.75%, 10/1/23

      345        346  

University of Michigan Revenue Refunding Bonds,

      

5.00%, 4/1/36

      10,000        11,544  

Wayne County Airport Authority Revenue Bonds, Series D,

      

5.00%, 12/1/34

      3,400        3,747  

Wayne County Airport Authority Revenue Bonds, Series D (AGM Insured),

      

5.00%, 12/1/32

      9,690        10,882  
  

 

 

     

 

 

  
        89,874  
     

 

 

  

Minnesota - 1.1%

      

Hennepin County G.O. Unlimited Bonds, Series A,

      

5.00%, 12/1/25

      3,515        4,060  

Minneapolis-Saint Paul Metropolitan Airports Commission Revenue Refunding Bonds, Senior Series B (AMT),

      

5.00%, 1/1/22

      2,500        2,663  

Minnesota State G.O. Unlimited Bonds, Series A, Prerefunded, Escrowed to Maturity,

      

5.00%, 10/1/20

      75        83  

 

TAX-EXEMPT FIXED INCOME FUNDS     10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Minnesota - 1.1% continued

      

Minnesota State Municipal Power Agency Electric Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/29

    $ 1,000      $ 1,138  

Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B,

      

4.00%, 8/1/17

      10,000        10,181  

Minnesota State Various Purpose G.O. Unlimited Bonds, Series A, Prerefunded,

      

5.00%, 8/1/22(2)

      245        284  

Minnesota State Various Purpose G.O. Unlimited Bonds, Series A, Unrefunded Balance,

      

5.00%, 8/1/23

      5,300        6,098  

South Washington County Independent School District No. 833 Building G.O. Unlimited Refunding Bonds, Series B, School Building (School District Credit Program),

      

5.00%, 2/1/25

      5,000        5,972  
  

 

 

     

 

 

  
        30,479  
     

 

 

  

Mississippi - 0.2%

      

Mississippi State G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 12/1/33

      4,000        4,689  
  

 

 

     

 

 

  

Missouri - 1.4%

      

Metropolitan Saint Louis Sewer District Wastewater System Revenue Refunding & Improvement Bonds, Series B,

      

5.00%, 5/1/38

      5,880        6,741  

Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, Series B,

      

5.00%, 1/1/26

      1,500        1,812  

5.00%, 1/1/27

      5,250        6,312  

Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, State Revolving Funds, Prerefunded,

      

5.00%, 1/1/20(2)

      5        6  

Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, State Revolving Funds, Prerefunded, Escrowed to Maturity,

      

5.00%, 7/1/23

      125        148  

Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, State Revolving Funds, Unrefunded Balance,

      

5.00%, 1/1/22

      5,055        5,520  

5.00%, 7/1/23

      3,495        4,123  

Springfield Public Utility Revenue Refunding Bonds,

      

5.00%, 8/1/23

      10,000        11,700  

Wentzville School District No. R-4 G.O. Unlimited Refunding CABS, Missouri Direct Deposit Program (State Aid Direct Deposit Program),

      

0.00%, 3/1/27(3)

      2,100        1,566  
  

 

 

     

 

 

  
        37,928  
     

 

 

  

Nebraska - 1.3%

      

Lancaster County School District No. 1 G.O. Unlimited Refunding Bonds,

      

5.00%, 1/15/27

      3,760        4,491  

Lincoln Electric System Revenue Refunding Bonds,

      

5.00%, 9/1/34

      1,500        1,756  

Nebraska State Public Power District General Revenue Bonds, Series B,

      

5.00%, 1/1/23

      1,000        1,148  

Omaha Public Power District Electric Revenue Bonds, Series B,

      

5.00%, 2/1/34

      3,000        3,342  

Omaha Public Power District Electric System Revenue Refunding Bonds, Series A,

      

5.00%, 2/1/28

      10,000        11,970  

5.00%, 2/1/29

      4,000        4,753  

 

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Nebraska - 1.3% continued

      

Omaha Public Power District Electric System Revenue Refunding Bonds, Series C,

      

5.00%, 2/1/39

    $ 4,235      $ 4,784  

5.00%, 2/1/43

      5,000        5,629  
  

 

 

     

 

 

  
        37,873  
     

 

 

  

Nevada - 1.1%

      

Clark County G.O. Limited Refunding Bonds, Series B,

      

5.00%, 11/1/27

      2,435        2,927  

Clark County G.O. Limited Tax Bank Bonds,

      

5.00%, 6/1/38

      2,500        2,605  

Clark County School District G.O. Limited Bonds, Series D,

      

5.00%, 6/15/28

      3,045        3,570  

Clark County School District G.O. Limited Refunding Bonds, Series E,

      

5.00%, 6/15/25

      3,000        3,572  

Clark County School District Various Purpose Medium Term G.O. Limited Refunding Bonds,

      

3.00%, 6/15/25

      3,930        3,865  

Las Vegas City Hall G.O. Limited Refunding Bonds, Series C,

      

5.00%, 9/1/34

      2,000        2,298  

Nevada State Capital Improvement & Cultural Affairs G.O. Limited Bonds, Series C, Prerefunded,

      

5.00%, 6/1/18(2)

      8,000        8,431  

Washoe County Highway Motor Vehicle Fuel TRB,

      

4.75%, 2/1/21

      3,400        3,609  
  

 

 

     

 

 

  
        30,877  
     

 

 

  

New Hampshire - 0.2%

      

New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, Prerefunded,

      

5.25%, 6/1/19(2)

      5,000        5,452  
  

 

 

     

 

 

  

New Jersey - 0.7%

      

New Jersey State EDA Revenue Refunding Bonds, Series II, School Facilities Construction,

      

5.00%, 3/1/27

      3,290        3,355  

New Jersey State EDA Revenue Refunding Bonds, Series XX,

      

5.00%, 6/15/20

      2,500        2,639  

New Jersey State Educational Facilities Authority Revenue Refunding Bonds, Series B, Princeton University,

      

5.00%, 7/1/23

      5,000        5,929  

New Jersey State Turnpike Authority Revenue Bonds, Series E,

      

5.00%, 1/1/33

      5,000        5,605  

Ocean County G.O. Unlimited Refunding Bonds, Series A,

      

4.00%, 8/1/23

      1,000        1,118  
  

 

 

     

 

 

  
        18,646  
     

 

 

  

New Mexico - 0.2%

      

New Mexico State Finance Authority Revenue Bonds, Series C,

      

5.00%, 6/1/23

      2,770        3,117  

New Mexico State Hospital Equipment Loan Council Revenue Bonds, Presbyterian Healthcare Services,

      

5.00%, 8/1/44

      1,500        1,656  
  

 

 

     

 

 

  
        4,773  
     

 

 

  

New York - 15.4%

      

Long Island Power Authority Electric System Revenue Bonds, Series A, Prerefunded,

      

6.25%, 4/1/19(2)

      5,000        5,540  

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series B,

      

5.00%, 11/15/34

      5,000        5,409  

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Refunding Bonds, Series A,

      

5.25%, 11/15/32

      10,000        12,053  

Metropolitan Transportation Authority Revenue Bonds, Series B-4,

      

5.00%, 11/15/19(1)

      1,175        1,275  

Metropolitan Transportation Authority Revenue Bonds, Series G,

      

5.25%, 11/15/26

      5,000        5,615  

 

TAX-EXEMPT FIXED INCOME FUNDS     12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

New York - 15.4% continued

      

Metropolitan Transportation Authority Revenue Refunding Bonds, Series A2, Green Bond,

      

5.00%, 11/15/25

    $ 5,000      $ 5,890  

Metropolitan Transportation Authority Revenue Refunding Bonds, Series D,

      

5.00%, 11/15/23

      5,000        5,165  

5.00%, 11/15/24

      5,000        5,165  

Metropolitan Transportation Authority Revenue Refunding Bonds, Subseries C-1,

      

5.25%, 11/15/28

      5,000        5,891  

New York City Housing Development Corp. Multifamily Housing Revenue Refunding Bonds, Series B, Sustainable Neighborhood (FNMA Insured),

      

2.95%, 2/1/26(1)

      4,000        3,966  

New York City Municipal Water Finance Authority Water & Sewer System Revenue Refunding Bonds, Series GG,

      

5.00%, 6/15/31

      5,000        5,827  

5.00%, 6/15/39

      8,000        9,022  

New York City Municipal Water Finance Authority Water & Sewer System Second General Resolution Revenue Bonds, Series GG-1,

      

5.00%, 6/15/39

      5,000        5,345  

New York City Transitional Finance Authority Building Aid Revenue Bonds, Series S-1 (State Aid Withholding),

      

3.00%, 7/15/17

      6,725        6,798  

New York City Transitional Finance Authority Building Aid Revenue Bonds, Subseries S-1A (State Aid Withholding),

      

5.00%, 7/15/26

      10,000        11,281  

New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A-1,

      

5.00%, 5/1/38

      2,500        2,663  

New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B-1,

      

2.00%, 8/1/18

      5,000        5,064  

New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E-1,

      

5.00%, 2/1/23

      10,380        11,906  

New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series B,

      

5.00%, 11/1/25

      1,000        1,125  

New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, Fiscal 2016,

      

5.00%, 8/1/35

      10,000        11,406  

5.00%, 8/1/37

      8,500        9,654  

5.00%, 2/1/41

      10,000        11,228  

New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, Fiscal 2017,

      

5.00%, 5/1/37

      3,000        3,435  

5.00%, 5/1/40

      10,890        12,414  

New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, Series A-1,

      

5.00%, 11/1/21

      5,000        5,479  

New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, Series B,

      

5.00%, 2/1/22

      2,000        2,239  

New York G.O. Unlimited Bonds, Series 1,

      

5.00%, 8/1/20

      750        833  

New York G.O. Unlimited Bonds, Series D,

      

5.00%, 8/1/23

      5,000        5,855  

New York G.O. Unlimited Bonds, Series E, Unrefunded Balance,

      

5.00%, 11/1/25

      5        5  

New York G.O. Unlimited Bonds, Subseries C1, Fiscal 2008, Prerefunded,

      

5.00%, 10/1/17(2)

      760        783  

 

NORTHERN FUNDS QUARTERLY REPORT    13    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

New York - 15.4% continued

      

New York G.O. Unlimited Bonds, Subseries C1, Fiscal 2008, Unrefunded Balance,

      

5.00%, 10/1/22

    $ 4,240      $ 4,363  

New York G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 8/1/29

      2,405        2,824  

New York G.O. Unlimited Refunding Bonds, Series E,

      

5.00%, 8/1/24

      5,000        5,912  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, School Districts Financing Program (AGC State Aid Withholding), Prerefunded,

      

5.25%, 10/1/19(2)

      3,910        4,311  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, School Districts Financing Program (AGC State Aid Withholding), Unrefunded Balance,

      

5.25%, 10/1/23

      1,090        1,188  

New York State Dormitory Authority Personal Income Tax Revenue Refunding Bonds, Series A,

      

5.00%, 3/15/33

      6,500        7,418  

New York State Dormitory Authority Personal Income Tax Revenue Refunding Bonds, Series B, Education (AMBAC Insured),

      

5.50%, 3/15/30

      7,040        9,245  

New York State Dormitory Authority Personal Income TRB, Series A-2014, Unrefunded Balance,

      

5.00%, 2/15/39

      1,930        2,049  

New York State Dormitory Authority Personal Income TRB, Series B, Education,

      

5.75%, 3/15/36

      16,000        17,378  

New York State Dormitory Authority Sales Tax Supported Debt Revenue Bonds, Series A,

      

5.00%, 3/15/44

      2,425        2,717  

New York State Dormitory Authority Sales TRB, Series A,

      

5.00%, 3/15/27

      10,000        11,625  

New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Municipal Water Revolving Funds,

      

5.00%, 6/15/18

      12,485        13,199  

5.00%, 6/15/36

      5,000        5,575  

New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series C, Municipal Water Finance Revolving Funds,

      

5.00%, 6/15/25

      2,185        2,267  

New York State Environmental Facilities Corp. Revenue Bonds, Series 2010, Master State Revolving Funds,

      

5.00%, 5/15/23

      2,000        2,359  

New York State Environmental Facilities Corp. Revenue Refunding Bonds, State Revolving Funds Green Bond,

      

5.00%, 9/15/20

      1,035        1,161  

New York State Environmental Facilities Corp. State Personal Income TRB, Series A, Prerefunded,

      

5.25%, 12/15/18(2)

      9,900        10,671  

New York State Environmental Facilities Corp. State Personal Income TRB, Series A, Unrefunded Balance,

      

5.25%, 12/15/26

      100        107  

New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series C (NATL-IBC Insured),

      

5.50%, 4/1/17

      2,120        2,143  

New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series E (AGM-CR Insured),

      

5.00%, 4/1/21

      7,505        8,308  

New York State Thruway Authority Revenue Refunding Bonds, Series K,

      

5.00%, 1/1/28

      10,000        11,544  

New York State Thruway Authority Transportation Personal Income TRB, Series A, Prerefunded,

      

5.25%, 9/15/17(2)

      5,000        5,153  

New York State Urban Development Corp. Personal Income Tax Revenue Refunding Bonds, Series A,

      

5.00%, 3/15/25

      7,000        8,400  

5.00%, 3/15/27

      13,000        15,573  

5.00%, 3/15/28

      10,000        11,925  

 

TAX-EXEMPT FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

New York - 15.4% continued

      

New York State Urban Development Corp. Revenue Refunding Bonds, Series D, Service Contract,

      

5.38%, 1/1/22

    $ 1,850      $ 1,992  

Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 185 (AMT),

      

5.00%, 9/1/26

      1,130        1,298  

Port Authority of New York & New Jersey Revenue Refunding Bonds, Series 194,

      

5.00%, 10/15/31

      10,000        11,653  

Sales Tax Asset Receivable Corp. Revenue Refunding Bonds, Series A, Fiscal 2015,

      

5.00%, 10/15/27

      10,000        11,916  

5.00%, 10/15/28

      5,000        5,928  

Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A,

      

5.00%, 11/15/27

      1,330        1,574  

Utility Debt Securitization Authority Revenue Refunding Bonds, Series A, Restructuring Bonds,

      

5.00%, 6/15/28

      10,300        12,476  

5.00%, 12/15/34

      5,000        5,881  

5.00%, 12/15/35

      5,000        5,863  

Utility Debt Securitization Authority Revenue Refunding Bonds, Series B, Restructuring Bonds,

      

5.00%, 6/15/20

      20,000        21,057  

5.00%, 12/15/23

      5,500        6,309  
  

 

 

     

 

 

  
        431,693  
     

 

 

  

North Carolina - 2.1%

      

Charlotte COPS, Series B,

      

3.00%, 6/1/22

      10,330        10,396  

Charlotte G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 7/1/27

      3,500        4,092  

North Carolina State G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 6/1/27

      10,000        12,236  

North Carolina State G.O. Unlimited Refunding Bonds, Series D,

      

3.00%, 6/1/17

      13,935        14,057  

North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series C,

      

5.00%, 1/1/29

      10,000        11,671  

North Carolina State Public Improvement G.O. Unlimited Bonds, Series A,

      

5.00%, 5/1/21

      5,000        5,558  
  

 

 

     

 

 

  
        58,010  
     

 

 

  

Ohio - 0.5%

      

Northeast Regional Sewer District Revenue Refunding Bonds,

      

5.00%, 11/15/39

      2,000        2,257  

Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 8/1/22

      5,000        5,800  

5.00%, 8/1/25

      2,250        2,710  

Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 8/1/22

      2,005        2,326  

University of Cincinnati Receipts Revenue Bonds, Series G (NATL Insured), Prerefunded,

      

5.00%, 12/1/17(2)

      2,075        2,151  
  

 

 

     

 

 

  
        15,244  
     

 

 

  

Oklahoma - 0.4%

      

Grand River Dam Authority Revenue Refunding Bonds, Series A,

      

5.00%, 6/1/26

      10,000        11,922  
  

 

 

     

 

 

  

Oregon - 1.1%

      

Oregon State Board of Education G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/23

      4,480        4,974  

Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series A,

      

5.00%, 11/15/22

      6,485        7,575  

Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series C, Senior Lien,

      

5.00%, 11/15/20

      10,000        10,332  

Portland Community College District G.O. Unlimited Bonds,

      

5.00%, 6/15/21

      2,560        2,919  

 

NORTHERN FUNDS QUARTERLY REPORT    15    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Oregon - 1.1% continued

      

Washington County G.O. Limited Bonds,

      

5.00%, 3/1/25

    $ 1,500      $ 1,800  

Washington County G.O. Unlimited Bonds, Series B,

      

5.00%, 6/1/26

      3,555        4,351  
  

 

 

     

 

 

  
        31,951  
     

 

 

  

Pennsylvania - 0.7%

      

Bethlehem Area School District G.O. Limited Refunding Bonds, Series A (AGM Insured State Aid Withholding),

      

5.00%, 2/1/25

      3,000        3,505  

Montgomery County G.O. Unlimited Refunding Bonds,

      

5.00%, 3/1/22

      915        1,051  

Neshaminy School Disaster G.O. Limited Bonds, Series B (State Aid Withholding),

      

5.00%, 11/1/34

      7,290        8,301  

Pennsylvania State G.O. Limited Refunding Bonds, Second Series,

      

5.00%, 1/15/27

      5,000        5,870  
  

 

 

     

 

 

  
        18,727  
     

 

 

  

Rhode Island - 0.8%

      

Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series A, Consolidated Capital Development Loan, Prerefunded,

      

5.50%, 8/1/21(2)

      5,000        5,813  

Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series B, Consolidated Capital Development Loan,

      

5.00%, 10/15/27

      2,630        2,981  

Rhode Island State & Providence Plantations G.O. Unlimited Refunding Bonds, Series A, Consolidated Capital Development Loan,

      

5.00%, 8/1/21

      1,000        1,138  

Rhode Island State & Providence Plantations G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 8/1/17

      10,000        10,236  

Rhode Island State Clean Water Finance Agency Pollution Control Subordinated Revenue Refunding Bonds, Subseries A,

      

5.00%, 10/1/21

      2,880        3,214  
  

 

 

     

 

 

  
        23,382  
     

 

 

  

South Carolina - 1.1%

      

Charleston County Capital Improvement Transportation Sales Tax G.O. Unlimited Bonds (State Aid Withholding),

      

5.00%, 11/1/23

      2,500        2,839  

Piedmont Municipal Power Agency Electric Revenue Bonds, Series 2004, Unrefunded Balance (BHAC-CR MBIA Insured),

      

5.38%, 1/1/25

      4,960        5,842  

Richland County School District No. 1 G.O. Unlimited Bonds (SCSDE Insured),

      

5.00%, 3/1/17

      8,200        8,258  

Scago Educational Facilities Corp. Cherokee School District No. 1 Revenue Refunding Bonds,

      

5.00%, 12/1/25

      500        577  

South Carolina State Public Service Authority Revenue Bonds, Series A, Prerefunded,

      

5.50%, 1/1/19(2)

      12,000        12,995  
  

 

 

     

 

 

  
        30,511  
     

 

 

  

Tennessee - 1.5%

      

Blount County G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 6/1/25

      5,260        6,309  

Metropolitan Government of Nashville & Davidson County G.O. Unlimited and Improvement Bonds, Series C,

      

5.00%, 7/1/21

      5,000        5,691  

5.00%, 7/1/26

      10,000        11,968  

5.00%, 7/1/28

      10,000        11,833  

 

TAX-EXEMPT FIXED INCOME FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Tennessee - 1.5% continued

      

Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding & Improvement Bonds, Series A, Unrefunded Balance,

      

5.00%, 7/1/24

    $ 4,600      $ 5,089  

Tennessee State Housing Development Agency Revenue Bonds, Series 1A (AMT), Home Ownership Program,

      

3.75%, 1/1/19

      445        459  

4.05%, 7/1/20

      450        475  

4.13%, 7/1/21

      1,575        1,631  
  

 

 

     

 

 

  
        43,455  
     

 

 

  

Texas - 7.7%

      

Alvin Independent Schoolhouse District G.O. Unlimited Bonds, Series B (PSF-Gtd.),

      

0.95%, 8/15/18(1)

      3,000        2,968  

Austin G.O. Limited Bonds, Certificates of Obligation,

      

5.00%, 9/1/20

      1,490        1,667  

Austin G.O. Limited Refunding Bonds,

      

5.00%, 9/1/26

      3,980        4,772  

Brownsville Independent School District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.),

      

5.00%, 2/15/22

      100        115  

Cypress-Fairbanks Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 2/15/28

      5,000        5,890  

Dallas Independent School District G.O. Unlimited Bonds, Series A (PSF-Gtd.),

      

5.00%, 2/15/27

      10,000        11,868  

Dallas Waterworks & Sewer System Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/27

      5,000        5,944  

Ector County Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 8/15/26

      4,020        4,821  

Fort Worth Independent School District and School Building G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 2/15/25

      5,000        5,993  

Garland Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 2/15/24

      10,000        11,160  

Houston Higher Education Finance Corp. Revenue Bonds, Series B, Rice University Project, Prerefunded,

      

4.50%, 11/15/17(2)

      2,500        2,575  

Houston Independent School District G.O. Limited Refunding Bonds, Series A (PSF-Gtd.),

      

5.00%, 2/15/18

      10,940        11,417  

Houston Independent Schoolhouse District G.O. Limited Bonds (PSF-Gtd.), Prerefunded,

      

5.00%, 2/15/17(2)

      10,000        10,052  

Houston Utility System Revenue Refunding Bonds, Series B, First Lien,

      

5.25%, 11/15/33

      20,000        24,182  

Humble Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded,

      

5.00%, 2/15/17(2)

      10,000        10,052  

Laredo G.O. Limited Bonds, Certificates of Obligation (NATL Insured), Prerefunded,

      

5.00%, 2/15/17(2)

      6,965        7,001  

Lower Colorado River Authority Revenue Refunding Bonds, Prerefunded,

      

5.50%, 5/15/19(2)

      5        5  

Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Prerefunded,

      

5.50%, 5/15/19(2)

      80        87  

Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-1, Prerefunded,

      

5.50%, 5/15/19(2)

      5        5  

Lower Colorado River Authority Revenue Refunding Bonds, Series 2014, Prerefunded,

      

5.50%, 5/15/19(2)

      5        5  

Lower Colorado River Authority Revenue Refunding Bonds, Series 2014, Unrefunded Balance,

      

5.50%, 5/15/33

      1,905        2,048  

 

NORTHERN FUNDS QUARTERLY REPORT    17    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Texas - 7.7% continued

      

Mansfield Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 2/15/25

    $ 1,000      $ 1,199  

North East Texas Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 8/1/26

      10,445        12,562  

North Texas Tollway Authority Revenue Refunding Bonds, Series A,

      

5.00%, 1/1/28

      5,000        5,844  

North Texas Tollway Authority Revenue Refunding Bonds, Series A, First Tier (BHAC-CR Insured), Prerefunded,

      

5.75%, 1/1/18(2)

      10,000        10,460  

Plano Independent School District School Building G.O. Unlimited Bonds (PSF-Gtd.),

      

5.00%, 2/15/25

      10,000        11,986  

Red River Education Finance Corp. Higher Education Revenue Bonds, Texas Christian University (NATL Insured), Prerefunded,

      

5.00%, 3/15/17(2)

      1,725        1,740  

San Antonio Electric & Gas Revenue Refunding Bonds, Prerefunded,

      

5.00%, 2/1/17(2)

      2,300        2,308  

San Antonio Water Variable Revenue Bonds, Junior Lien,

      

2.00%, 11/1/21(1)

      7,500        7,402  

Texas State A&M University Financing System Revenue Bonds, Series D,

      

5.00%, 5/15/27

      5,000        5,794  

Texas State PFA G.O. Unlimited Refunding Bonds, Series A,

      

4.00%, 10/1/17

      5,000        5,114  

Texas State Transportation Commission G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 10/1/23

      70        83  

Texas State Transportation Commission Highway Improvement G.O. Unlimited Bonds,

      

5.00%, 4/1/25

      5,000        6,001  

Texas State Transportation Commission State Highway Fund Revenue Refunding Bonds, First Tier,

      

5.00%, 10/1/25

      1,175        1,419  

Texas State Water Development Board Water Implementation Revenue Bonds,

      

5.00%, 4/15/29

      2,000        2,395  

Travis County G.O. Limited Refunding Bonds, Series A,

      

5.00%, 3/1/25

      3,345        4,006  

University of Texas Permanent University Fund Revenue Bonds, Series A,

      

5.00%, 7/1/33

      5,000        5,811  

University of Texas Permanent University Fund Revenue Refunding Bonds, Series B,

      

5.00%, 7/1/25

      2,000        2,374  

University of Texas Revenue Bonds, Series J,

      

8/15/24(4)

      5,000        5,963  
  

 

 

     

 

 

  
        215,088  
     

 

 

  

Utah - 1.1%

      

Intermountain Power Agency Power Supply Subordinated Revenue Refunding Bonds, Series A (AMBAC Insured), Partially Escrowed to Maturity,

      

5.00%, 7/1/17

      5,000        5,102  

North Davis County Sewer District Revenue Bonds,

      

5.00%, 3/1/23

      2,265        2,642  

Utah State G.O. Unlimited Bonds,

      

5.00%, 7/1/23

      5,000        5,791  

Utah State G.O. Unlimited Refunding Bonds,

      

5.00%, 7/1/25

      5,000        6,037  

Utah State Transit Authority Sales Tax Revenue Refunding Bonds, Series C (AGM Insured),

      

5.25%, 6/15/27

      10,000        12,483  
  

 

 

     

 

 

  
        32,055  
     

 

 

  

 

TAX-EXEMPT FIXED INCOME FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Vermont - 0.1%

      

Vermont State G.O. Unlimited Bonds, Series B,

      

5.00%, 8/15/22

    $ 1,425      $ 1,663  

Vermont State Municipal Bond Bank Revenue Bonds, Series 1,

      

5.00%, 12/1/28

      1,705        2,050  
  

 

 

     

 

 

  
        3,713  
     

 

 

  

Virginia - 3.1%

      

Arlington County G.O. Unlimited Refunding Bonds, Series B,

      

4.00%, 8/15/17

      8,805        8,974  

5.00%, 8/15/27

      5,000        6,120  

Hampton Roads Sanitation District Wastewater Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/27

      3,465        4,087  

Loudoun County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding),

      

5.00%, 12/1/22

      1,360        1,562  

Norfolk G.O. Unlimited Refunding Bonds, Series B,

      

4.00%, 10/1/28

      10,000        10,988  

Richmond G.O. Unlimited Bonds, Series A (State Aid Withholding),

      

5.00%, 3/1/24

      5,000        5,848  

Richmond Public Utility Revenue Refunding Bonds,

      

5.00%, 1/15/33

      10,000        11,634  

4.00%, 1/15/36

      5,000        5,173  

Upper Occoquan Sewage Authority Regional Revenue Refunding Bonds,

      

5.00%, 7/1/28

      5,000        5,975  

Virginia State College Building Authority Educational Facilities Public Higher Education Revenue Refunding Bonds, Series A,

      

5.00%, 9/1/29

      2,425        2,892  

Virginia State G.O. Unlimited Bonds, Series A,

      

5.00%, 6/1/19

      1,000        1,087  

Virginia State Public Building Authority Public Facilities Revenue Refunding Bonds, Series B,

      

5.00%, 8/1/27

      5,000        6,041  

Virginia State Public School Authority School Financing 1997 Resolution Revenue Refunding Bonds, Series C (State Aid Withholding),

      

5.00%, 8/1/17

      5,000        5,119  

Virginia State Public School Authority Special Obligation Prince William County Revenue Refunding Bonds (State Aid Withholding),

      

5.00%, 8/1/17

      5,740        5,877  

Virginia State Public School Authority Special Obligation Prince William Revenue Bonds (State Aid Withholding),

      

5.00%, 8/1/17

      4,925        5,043  

Virginia State Resources Authority Clean Water State Revolving Fund Subordinate Revenue Refunding Bonds,

      

5.50%, 10/1/22

      1,000        1,196  
  

 

 

     

 

 

  
        87,616  
     

 

 

  

Washington - 0.3%

      

Port of Seattle Revenue Refunding Bonds, Series C (AMT), Intermediate Lien,

      

5.00%, 2/1/18

      1,000        1,040  

Washington State Health Care Facilities Authority Revenue Bonds, Series A, Providence Health & Services,

      

5.25%, 10/1/39

      4,000        4,310  

Washington State Motor Fuel Tax G.O. Unlimited Bonds, Series E,

      

5.00%, 2/1/38

      3,000        3,348  
  

 

 

     

 

 

  
        8,698  
     

 

 

  

Wisconsin - 1.4%

      

Madison G.O. Unlimited Refunding Promissory Notes, Series A,

      

1.50%, 10/1/17

      1,080        1,084  

Wisconsin State G.O. Unlimited Refunding Bonds, Series 2,

      

5.00%, 11/1/22

      10,000        11,641  

5.00%, 11/1/23

      6,000        7,075  

Wisconsin State G.O. Unlimited Refunding Bonds, Series 4,

      

5.00%, 5/1/26

      10,350        12,254  

 

NORTHERN FUNDS QUARTERLY REPORT    19    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.6% continued

      

Wisconsin - 1.4% continued

      

Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Marquette University,

      

5.00%, 10/1/28

    $ 670      $ 780  

Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Series B1, Ascension Health Credit Group,

      

5.00%, 11/15/36

      5,000        5,595  
  

 

 

     

 

 

  
        38,429  
     

 

 

  

Total Municipal Bonds

(Cost $2,545,103)

         2,544,273  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 1.9%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(6) (7)

      51,403,657      $ 51,404  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $51,404)

         51,404  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 7.3%

      

California State Department of Water Resources Central Valley Project Water System Variable Revenue Bonds, Series AU,

      

1.34%, 9/1/17(1)

    $ 5,000      $ 5,000  

Connecticut State G.O. Unlimited Refunding Bonds, Series A, Economic Recovery Notes,

      

0.97%, 1/1/17(5)

      10,210        10,210  

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series A, Yale University,

      

0.80%, 7/26/17(1)

      10,000        9,986  

Houston Independent School District G.O. Limited Bonds, Series 2014A-1A (PSF-Gtd.),

      

2.00%, 6/1/17(1)

      5,000        5,017  

Lehigh County IDA Revenue Refunding Bonds, Series A, Ppl Electric Utilities Corp.,

      

0.90%, 9/1/17(1)

      2,000        1,994  

Los Angeles Community College District G.O. Unlimited Bonds, Series I,

      

2.00%, 2/1/17

      8,560        8,569  

Los Angeles Department of Water & Power Variable Revenue Refunding Bonds, Subseries B-5,

      

0.70%, 1/9/17(1)

      2,500        2,500  

Maryland State G.O. Unlimited Refunding Bonds, First Series B,

      

4.50%, 8/1/17

      5,660        5,779  

Massachusetts State G.O. Limited RANS, Series A,

      

2.00%, 4/24/17

      15,000        15,052  

Massachusetts State G.O. Limited RANS, Series C,

      

2.00%, 6/26/17

      25,000        25,133  

Massachusetts State Health & Educational Facilities Authority Variable Revenue Bonds, Series Y, Harvard University Issue,

      

0.70%, 1/9/17(1)

      10,000        10,000  

Massachusetts State School Building Authority Sales TRB, Series B,

      

5.00%, 1/15/17

      11,100        11,120  

Miami-Dade County School District G.O. Limited TANS,

      

5.00%, 2/23/17

      15,000        15,091  

New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, Fiscal 2016,

      

4.00%, 2/1/17

      10,000        10,027  

New York State Dormitory Authority Personal Income Tax General Purpose Revenue Bonds, Series B, Group A,

      

5.00%, 3/15/17

      10,000        10,086  

New York State Dormitory Authority Personal Income TRB, Series B, Group A,

      

5.00%, 2/15/17

      6,000        6,031  

New York State Dormitory Authority Sales Tax Revenue Refunding Bonds, Series A,

      

5.00%, 3/15/17

      7,500        7,566  

North Carolina State Eastern Municipal Power Agency System Revenue Bonds, Series B, Escrowed to Maturity,

      

5.00%, 1/1/17

      4,505        4,506  

 

TAX-EXEMPT FIXED INCOME FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 7.3% continued

      

Oregon State G.O. Limited TANS, Series A,

      

2.00%, 6/30/17

    $ 5,725      $ 5,756  

San Antonio Independent School District Variable G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.),

      

2.00%, 8/1/17(1)

      9,835        9,876  

Shelby County G.O. Unlimited Refunding Bonds, Series A, Unrefunded Balance,

      

5.00%, 4/1/17

      5,360        5,417  

Texas State Transportation Commission State Highway Fund Revenue Refunding Bonds, Series A, First Tier,

      

5.00%, 4/1/17

      7,525        7,605  

Travis County G.O. Limited Bonds, Certificates of Obligation,

      

1.50%, 3/1/17

      2,650        2,653  

University of North Carolina Chapel Hill Variable Revenue Bonds, Series C,

      

0.69%, 1/9/17(1)

      8,890        8,890  

Washington State G.O. Unlimited Refunding Bonds, Series R-2011-A,

      

5.00%, 1/1/17

      1,840        1,840  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $205,836)

         205,704  
     

 

 

  

Total Investments - 99.8%

(Cost $2,802,343)

         2,801,381  
     

 

 

  

Other Assets less Liabilities - 0.2%

         6,590  
     

 

 

  

NET ASSETS - 100.0%

       $ 2,807,971  
     

 

 

  

 

(1) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the puttable date.
(2) Maturity date represents the prerefunded date.
(3) Zero coupon bond.
(4) When-Issued Security. Coupon rate is not in effect at December 31, 2016.
(5) Variable rate security. Rate as of December 31, 2016 is disclosed.
(6) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(7) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AAA

      26.1 % 

AA

      58.2  

A

      10.8  

A1+ (Short Term)

      1.1  

BBB

      0.1  

Not Rated

      1.9  

Cash Equivalent

      1.8  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on converting the available Moody’s, S&P Global, 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The S&P Global’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.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF
INVESTMENTS		  

General

      17.6 % 

General Obligation

      30.8  

Higher Education

      5.9  

Power

      5.8  

School District

      8.1  

Transportation

      8.4  

Water

      9.8  

All other sectors less than 5%

      13.6  
  

 

 

  

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).

 

NORTHERN FUNDS QUARTERLY REPORT    21    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND continued    DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Municipal Bonds(1)

    $ —        $ 2,544,273      $ —        $ 2,544,273  

Investment Companies

      51,404        —          —          51,404  

Short-Term Investments

      —          205,704        —          205,704  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 51,404      $ 2,749,977      $ —        $ 2,801,381  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 2,802,475  
  

 

 

  

Gross tax appreciation of investments

    $ 39,627  

Gross tax depreciation of investments

      (40,721 ) 
  

 

 

  

Net tax depreciation of investments

    $ (1,094 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Tax-Exempt Portfolio

    $ 417,913      $ 1,027,201      $ 1,445,114      $ 143      $ —    

Northern Institutional Funds - U.S. Government Portfolio

      —          498,692        447,288        72        51,404  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 417,913      $ 1,525,893      $ 1,892,402      $ 215      $ 51,404  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Institutional Funds - Tax-Exempt Portfolio was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGC - Assured Guaranty Corporation

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BAM - Build America Mutual

BHAC - Berkshire Hathaway Assurance Corporation

CABS - Capital Appreciation Bonds

COPS - Certificates of Participation

CR - Custody Receipt

CWA - Clean Water Act

EDA - Economic Development Agency

FGIC - Financial Guaranty Insurance Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

IBC - Insured Bond Certificates

IDA - Industrial Development Authority

MBIA - Municipal Bond Insurance Association

NATL - National Public Finance Guarantee Corporation

PFA - Public Finance Authority

PSF - Permanent School Fund

Q-SBLF - Qualified School Bond Loan

RANS - Revenue Anticipation Notes

SCSDE - South Carolina School District Enhancement

TANS - Tax Anticipation Notes

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

XLCA - XL Capital Assurance

 

TAX-EXEMPT FIXED INCOME FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE TAX-EXEMPT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1%

      

Arizona - 2.8%

      

Chandler Excise TRB,

      

5.00%, 7/1/17

    $ 1,500      $ 1,531  

Chandler G.O. Limited Refunding Bonds,

      

4.00%, 7/1/21

      4,000        4,383  

Glendale Water & Sewer Revenue Bonds, Subordinate Lien Obligations (NATL Insured), Prerefunded,

      

5.00%, 7/1/17(1)

      140        143  

Maricopa County School District No. 3 Tempe Elementary G.O. Unlimited Bonds, Series C,

      

2.00%, 7/1/18

      5,000        5,051  

Maricopa County School District No. 6 Washington Elementary G.O. Unlimited Bonds, Series E,

      

1.00%, 7/1/17

      775        775  

Maricopa County Unified School District No. 4 Mesa G.O. Limited Refunding Bonds,

      

4.00%, 7/1/19

      2,000        2,125  

Maricopa County Unified School District No. 89 Dysart G.O. Limited Refunding Bonds (BAM Insured),

      

3.00%, 7/1/24

      2,935        3,026  

Maricopa County Unified School District No. 93 Cave Creek G.O. Unlimited Bonds, Series A, School Improvement Project of 2014 (BAM Insured),

      

4.00%, 7/1/17

      1,190        1,207  

Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds, Series B, Junior Lien,

      

5.00%, 7/1/21

      5,000        5,705  

Pima County Regional Transportation Fund Excise TRB,

      

5.00%, 6/1/17

      800        814  

Pima County Street & Highway Revenue Bonds,

      

4.50%, 7/1/17

      150        153  

Pinal County Obligation Revenue Bonds,

      

5.00%, 8/1/21

      2,505        2,817  

Scottsdale G.O. Limited Refunding Bonds,

      

3.00%, 7/1/22

      2,000        2,104  

Tempe G.O. Unlimited Bonds, Series A,

      

2.00%, 7/1/17

      250        251  
  

 

 

     

 

 

  
        30,085  
     

 

 

  

California - 9.2%

      

Bay Area Toll Bridge Authority Variable Revenue Bonds, Series B,

      

1.50%, 4/2/18(2)

      1,000        1,000  

California State Department of Water Resources Central Valley Project Water System Revenue Bonds, Series AS, Escrowed to Maturity,

      

5.00%, 12/1/21

      90        103  

California State Department of Water Resources Central Valley Project Water System Revenue Bonds, Series AS, Unrefunded Balance,

      

5.00%, 12/1/21

      8,910        10,255  

California State Department of Water Resources Power Supply Revenue Refunding Bonds, Series O,

      

5.00%, 5/1/21

      1,750        1,986  

California State Health Facilities Financing Authority Variable Revenue Refunding Bonds, St. Joseph Health System,

      

5.00%, 10/18/22(2)

      2,500        2,836  

California State Various Purpose G.O. Unlimited Bonds,

      

5.00%, 10/1/18

      10,000        10,655  

California State Various Purpose G.O. Unlimited Refunding Bonds,

      

5.00%, 11/1/20

      8,000        8,987  

5.00%, 12/1/21

      5,000        5,733  

California State Various Purpose G.O. Unlimited Refunding Bonds, Group B, Prerefunded,

      

5.00%, 6/1/17(1)

      500        509  

Clovis Unified School District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/20

      1,000        1,111  

Desert Sands Unified School District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/22

      1,000        1,160  

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

California - 9.2% continued

      

Elk Grove Unified School District Refunding COPS (BAM Insured),

      

5.00%, 2/1/18

    $ 2,415      $ 2,513  

Jefferson Union High School District San Mateo County G.O. Unlimited Bonds, Series A, Election of 2014 (AGM Insured),

      

4.00%, 8/1/17

      3,055        3,108  

Los Angeles County G.O. Unlimited TRANS,

      

3.00%, 6/30/17

      5,000        5,053  

Los Angeles Department of Water & Power System Revenue Bonds, Series A,

      

5.00%, 7/1/19

      5,000        5,444  

Los Angeles TRANS, Series B,

      

3.00%, 6/29/17

      2,000        2,021  

Mount Diablo Unified School District G.O. Unlimited Bonds, Series G, Election of 2010,

      

3.00%, 8/1/23

      2,175        2,286  

3.00%, 8/1/24

      2,220        2,325  

San Diego Community College District G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/25

      5,175        6,295  

San Francisco Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, Prerefunded,

      

5.13%, 4/1/19(1)

      5,000        5,419  

San Francisco City & County Public Utilities Commission Water Revenue Refunding Bonds,

      

5.00%, 11/1/24

      4,190        5,034  

San Francisco City & County Road Repaving & Street Safety G.O. Unlimited Bonds, Series C,

      

5.00%, 6/15/18

      1,385        1,464  

San Jose Evergreen Community College District G.O. Unlimited Refunding Bonds,

      

5.00%, 9/1/22

      4,000        4,652  

Sequoia Union High School District G.O. Unlimited Bonds,

      

4.00%, 7/1/25

      1,725        1,942  

Twin Rivers Unified School District G.O. Unlimited Refunding Bonds, Series A (AGM Insured),

      

5.00%, 8/1/23

      1,000        1,160  

Twin Rivers Unified School District G.O. Unlimited Refunding Bonds, Series B (AGM Insured),

      

5.00%, 8/1/23

      515        597  

Vallecitos Water District Water & Wastewater Enterprise Revenue Refunding Bonds,

      

5.00%, 7/1/22

      1,500        1,739  

Westlands Water District Revenue Refunding Bonds, Series A (AGM Insured),

      

5.00%, 9/1/23

      2,150        2,505  
  

 

 

     

 

 

  
        97,892  
     

 

 

  

Colorado - 0.9%

      

Adams Co. 12 Five Star Schools G.O. Unlimited Refunding Bonds, Series B (State Intercept Program),

      

5.00%, 12/15/19

      1,625        1,785  

Colorado State Refunding COPS, Series A, UCDHSC Fitzsimons Academic Projects,

      

5.00%, 11/1/17

      1,875        1,936  

Denver City & County Excise Tax Revenue Refunding Bonds, Series A (AGC Insured), Prerefunded,

      

6.00%, 9/1/19(1)

      5,000        5,592  
  

 

 

     

 

 

  
        9,313  
     

 

 

  

Connecticut - 3.2%

      

Connecticut State G.O. Unlimited Bonds, Series A, GAAP Conversion,

      

5.00%, 10/15/20

      8,000        8,819  

Connecticut State G.O. Unlimited Bonds, Series F,

      

5.00%, 11/15/23

      3,900        4,478  

Connecticut State G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 5/1/17

      5,520        5,594  

Connecticut State G.O. Unlimited Refunding Bonds, Series G,

      

5.00%, 11/1/20

      3,500        3,861  

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Connecticut - 3.2% continued

      

Connecticut State G.O. Unlimited Refunding Bonds, Series H,

      

5.00%, 11/15/20

    $ 2,500      $ 2,760  

Connecticut State Health & Educational Facilities Authority Revenue Refunding Bonds, Series 2013 A, Yale University,

      

1.00%, 7/1/19(2)

      1,175        1,153  

Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Bonds, Series A,

      

5.00%, 9/1/21

      4,425        5,007  

Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series 1, Second Lien,

      

5.00%, 2/1/17

      2,500        2,509  
  

 

 

     

 

 

  
        34,181  
     

 

 

  

Delaware - 0.3%

      

New Castle County G.O. Unlimited Refunding Bonds,

      

5.00%, 10/1/18

      3,445        3,674  
  

 

 

     

 

 

  

Florida - 3.1%

      

Clay County Infrastructure Sales Surtax Revenue Bonds (AGC Insured),

      

5.25%, 10/1/17

      4,600        4,727  

Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 6/1/23

      3,845        4,525  

Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 6/1/20

      5,000        5,567  

Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 6/1/17

      10,100        10,276  

Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series E,

      

5.00%, 6/1/23

      4,900        5,766  

JEA Electric System Revenue Bonds, Series Three A,

      

5.00%, 10/1/17

      940        967  

Sarasota County Infrastructure Sales Surtax Revenue Refunding Bonds,

      

5.00%, 10/1/21

      1,000        1,135  
  

 

 

     

 

 

  
        32,963  
     

 

 

  

Georgia - 2.8%

      

Atlanta & Fulton County Recreation Authority Revenue Refunding & Park Improvement Bonds, Series A,

      

5.00%, 12/1/19

      380        416  

Atlanta Water & Wastewater Revenue Refunding Bonds, Series B,

      

5.00%, 11/1/17

      2,245        2,319  

Cherokee County School System G.O. Unlimited Bonds, Series A (State Aid Withholding),

      

5.00%, 8/1/20

      2,160        2,410  

Cherokee County School System G.O. Unlimited Refunding Bonds, Series B (State Aid Withholding),

      

5.00%, 8/1/20

      1,000        1,116  

5.00%, 8/1/21

      3,285        3,744  

DeKalb County Water & Sewerage Revenue Refunding Bonds, Second Resolution,

      

5.00%, 10/1/20

      1,250        1,392  

Forsyth County School District G.O. Unlimited Bonds,

      

5.00%, 2/1/19

      1,000        1,077  

5.00%, 2/1/20

      1,000        1,105  

Fulton County Facilities Corp. COPS, Public Purpose Project,

      

5.00%, 11/1/18

      2,505        2,664  

Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A,

      

5.00%, 6/1/18

      5,000        5,267  

Henry County School District G.O. Unlimited Refunding Bonds (State Aid Withholding),

      

5.00%, 8/1/19

      5,270        5,746  

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Georgia - 2.8% continued

      

Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Refunding Bonds, Series B, Third Indenture,

      

5.00%, 7/1/17

    $ 750      $ 765  

Private Colleges & Emory University Authority Revenue Refunding Bonds, Series B,

      

5.00%, 10/1/20

      1,220        1,367  
  

 

 

     

 

 

  
        29,388  
     

 

 

  

Hawaii - 2.3%

      

Hawaii G.O. Unlimited Refunding Bonds, Series EZ,

      

5.00%, 10/1/23

      8,000        9,422  

Hawaii State G.O. Unlimited Bonds, Series EH,

      

5.00%, 8/1/19

      3,810        4,151  

Hawaii State G.O. Unlimited Refunding Bonds, Series EF,

      

5.00%, 11/1/21

      5,000        5,718  

Honolulu City & County G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 10/1/21

      5,000        5,702  
  

 

 

     

 

 

  
        24,993  
     

 

 

  

Idaho - 0.4%

      

Ada & Canyon Counties Joint School District No. 2 Meridian G.O. Unlimited Refunding Bonds (School Board Guaranty Program),

      

5.00%, 8/15/17

      350        359  

Blaine County G.O. Unlimited Bonds, Series A (AGC Insured), Prerefunded,

      

4.10%, 8/1/17(1)

      695        708  

Canyon County School District No. 134 Middleton G.O. Unlimited Refunding Bonds (Idaho Sales Tax Guaranty Insured),

      

5.00%, 9/15/20

      1,045        1,171  

Twin Falls County School District No. 411 G.O. Unlimited Refunding Bonds, Series C (Idaho Sales Tax Guaranty Insured),

      

5.00%, 9/15/17

      1,945        2,002  
  

 

 

     

 

 

  
        4,240  
     

 

 

  

Illinois - 2.5%

      

Cook County Community College District No. 504 Triton G.O. Unlimited Bonds, Alternative Revenue Source,

      

5.00%, 6/1/22

      1,150        1,318  

Cook County Community High School District No. 228 Bremen G.O. Limited Bonds, Series B,

      

5.00%, 12/1/17

      1,500        1,548  

Cook County School District No. 144 Prairie Hills G.O. Limited Bonds, Series A (AGM Insured), Prerefunded,

      

5.00%, 12/1/20(1)

      500        562  

DuPage County Community High School District No. 108 G.O. Unlimited Refunding Bonds,

      

4.00%, 1/1/19

      1,000        1,048  

Illinois State Finance Authority Clean Water Initiative Revenue Bonds,

      

5.00%, 7/1/17

      1,025        1,046  

5.00%, 7/1/19

      5,440        5,909  

Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL Insured), Prerefunded,

      

5.25%, 2/1/17(1)

      300        301  

Illinois State Toll Highway Authority Revenue Refunding Bonds, Series A,

      

5.00%, 12/1/19

      3,500        3,821  

Illinois State Toll Highway Authority Senior Revenue Refunding Bonds, Series B,

      

5.00%, 12/1/17

      3,000        3,104  

5.00%, 12/1/18

      1,000        1,066  

Sangamon County School District No. 186 Springfield G.O. Limited Refunding Bonds, Series B (BAM Insured),

      

5.00%, 2/1/21

      6,260        6,891  

Tinley Park G.O. Unlimited Bonds,

      

4.00%, 12/1/17

      470        482  
  

 

 

     

 

 

  
        27,096  
     

 

 

  

 

TAX-EXEMPT FIXED INCOME FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Indiana - 0.8%

      

Hamilton South Eastern Consolidated School Building Corp. First Mortgage Revenue Bonds, Series B (AGM Insured State Aid Withholding), Prerefunded,

      

5.00%, 7/15/17(1)

    $ 700      $ 716  

Indiana Finance Authority Water Utility Revenue Bonds, Second Lien, Citizens Energy Group,

      

2.95%, 10/1/22

      1,750        1,786  

Indiana State Finance Authority Highway Revenue Refunding Bonds, Series C,

      

5.00%, 12/1/23

      1,500        1,769  

Indianapolis Local Public Improvement Bond Bank Revenue Bonds, Series A,

      

5.00%, 1/1/21

      1,490        1,674  

Sunman Dearborn Intermediate School Building Corp. First Mortgage Revenue Refunding Bonds (State Intercept Program),

      

3.00%, 7/15/17

      900        908  

4.00%, 1/15/18

      1,335        1,370  
  

 

 

     

 

 

  
        8,223  
     

 

 

  

Iowa - 0.5%

      

Cedar Rapids G.O. Unlimited Refunding Bonds, Series A,

      

4.00%, 6/1/17

      4,920        4,983  
  

 

 

     

 

 

  

Kansas - 1.4%

      

Johnson County Internal Improvement G.O. Unlimited Bonds, Series A,

      

5.00%, 9/1/21

      835        956  

Johnson County Unified School District No. 233 G.O. Unlimited Bonds, Series A,

      

5.00%, 9/1/24

      1,000        1,186  

Leawood G.O. Unlimited Temporary Notes, Series 1,

      

2.00%, 9/1/17

      10,000        10,067  

Wichita G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 9/1/18

      2,230        2,372  
  

 

 

     

 

 

  
        14,581  
     

 

 

  

Kentucky - 0.9%

      

Kentucky State Property & Buildings Commission Revenues Refunding Bonds, Series B, Project No. 112,

      

5.00%, 11/1/24

      4,400        5,069  

Kentucky State Turnpike Authority Economic Development Road Revenue Bonds, Series A, Revitalization Projects,

      

5.00%, 7/1/18

      4,500        4,744  
  

 

 

     

 

 

  
        9,813  
     

 

 

  

Louisiana - 0.2%

      

Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series E, Subordinate Lien, Baton Rouge Road,

      

5.00%, 8/1/20

      1,535        1,694  
  

 

 

     

 

 

  

Maryland - 5.9%

      

Anne Arundel County Consolidated General Improvements G.O. Limited Bonds,

      

5.00%, 4/1/18

      2,915        3,056  

Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds,

      

5.00%, 8/1/19

      5,000        5,458  

Baltimore County Consolidated Public Improvements G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/22

      6,410        7,464  

Baltimore County Metropolitan District 77th Issue G.O. Unlimited Bonds,

      

5.00%, 8/1/23

      1,395        1,652  

Baltimore County Public Improvement G.O. Unlimited Bonds,

      

5.00%, 2/1/19

      5,000        5,384  

Baltimore Wastewater Projects Revenue Bonds, Series C,

      

5.00%, 7/1/21

      1,330        1,511  

Baltimore Water Project Revenue Bonds, Series A,

      

5.00%, 7/1/20

      1,000        1,112  

Charles County Consolidated Public Improvement G.O. Unlimited Bonds,

      

5.00%, 7/15/17

      1,470        1,503  

5.00%, 10/1/20

      1,935        2,175  

5.00%, 10/1/21

      2,035        2,337  

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Maryland - 5.9% continued

      

Frederick County Public Facilities G.O. Unlimited Refunding Bonds, Escrowed to Maturity,

      

4.00%, 8/1/20

    $ 235      $ 254  

Frederick County Public Facilities G.O. Unlimited Refunding Bonds, Unrefunded Balance,

      

4.00%, 8/1/20

      4,985        5,394  

Howard County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 2/15/19

      3,735        4,026  

Maryland State & Local Facilities G.O. Unlimited Bonds, Second Series A, Prerefunded,

      

5.00%, 8/15/17(1)

      625        641  

Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series, Prerefunded,

      

5.00%, 3/15/17(1)

      150        151  

Maryland State & Local Facilities Loan G.O. Unlimited Refunding Bonds, First Series C,

      

5.00%, 8/1/20

      5,000        5,595  

Maryland State & Local Facilities Loan G.O. Unlimited Refunding Bonds, Second Series,

      

4.50%, 8/1/20

      3,000        3,304  

Maryland State Department of Transportation Consolidated Revenue Bonds,

      

5.00%, 2/1/22

      10,000        11,538  

University System of Maryland Auxiliary Facility & Tuition Revenue Bonds, Series D,

      

4.00%, 4/1/17

      225        227  

Washington Consolidated Public Improvement Suburban Sanitary District G.O. Unlimited Bonds, Second Series,

      

5.00%, 6/1/17

      300        305  
  

 

 

     

 

 

  
        63,087  
     

 

 

  

Massachusetts - 1.1%

      

Boston G.O. Unlimited Bonds, Series A (State Aid Withholding), Prerefunded,

      

5.00%, 3/1/17(1)

      100        101  

Massachusetts State G.O. Limited Bonds, Series D, Consolidated Loan,

      

4.00%, 8/1/17

      350        356  

Massachusetts State G.O. Limited Refunding Bonds, Series B,

      

5.00%, 8/1/19

      1,000        1,090  

Massachusetts State School Building Authority Sales TRB, Series A (AMBAC Insured), Escrowed to Maturity,

      

5.00%, 8/15/17

      600        615  

Massachusetts State School Building Authority Sales TRB, Series A (AMBAC Insured), Prerefunded,

      

5.00%, 8/15/17(1)

      400        410  

Massachusetts State Water Resources Authority General Revenue Bonds, Series J (AGM Insured),

      

5.50%, 8/1/20

      2,000        2,270  

5.50%, 8/1/21

      5,685        6,620  
  

 

 

     

 

 

  
        11,462  
     

 

 

  

Michigan - 1.7%

      

Allendale Public School District Building & Site G.O. Unlimited Bonds, Series A (AGM Q-SBLF Insured), Prerefunded,

      

5.25%, 5/1/17(1)

      250        254  

Eaton Rapids Public Schools G.O. Unlimited Refunding Bonds (Q-SBLF Insured),

      

5.00%, 5/1/20

      800        881  

Ferris State University Revenue Refunding Bonds,

      

5.00%, 10/1/23

      1,250        1,439  

Kentwood Public Schools G.O. Unlimited Refunding Bonds,

      

4.00%, 5/1/18

      2,340        2,423  

Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I-A,

      

5.00%, 10/15/17

      1,100        1,133  

Michigan State Finance Authority Clean Water State Revolving Fund Revenue Refunding Bonds,

      

5.00%, 10/1/20

      2,805        3,143  

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Michigan - 1.7% continued

      

Michigan State Finance Authority State Revolving Fund Subordinate Revenue Refunding Bonds,

      

5.00%, 10/1/19

    $ 2,755      $ 3,017  

Michigan State Finance Authority Unemployment Obligation Assessment Revenue Refunding Bonds, Series B,

      

5.00%, 7/1/22

      1,225        1,237  

Michigan State Municipal Bond Authority Clean Water Revolving Fund Revenue Bonds,

      

5.00%, 10/1/19

      1,635        1,790  

Thornapple Kellogg School District G.O. Unlimited Refunding Bonds (Q-SBLF Insured),

      

5.00%, 5/1/19

      325        350  

Utica Community Schools Building & Site G.O. Unlimited Refunding Bonds (Q-SBLF Insured),

      

5.00%, 5/1/19

      1,340        1,443  

Western Michigan University General Revenue Refunding Bonds,

      

5.00%, 11/15/19

      850        927  
  

 

 

     

 

 

  
        18,037  
     

 

 

  

Minnesota - 4.2%

      

Buffalo Independent School District No. 877 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program),

      

3.00%, 2/1/17

      825        827  

Edina Independent School District No. 273 Building G.O. Unlimited Refunding Bonds, Series B (School District Credit Program),

      

5.00%, 2/1/18

      4,310        4,495  

Hastings Independent School District No. 200 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program),

      

5.00%, 2/1/21

      1,550        1,743  

Hennepin County G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 12/1/21

      3,000        3,453  

Metropolitan Council Minneapolis-Saint Paul Metropolitan Area Wastewater G.O. Unlimited Refunding Bonds, Series E,

      

5.00%, 9/1/21

      3,350        3,834  

Minnesota State G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/21

      4,000        4,567  

Minnesota State Public Facilities Authority Clean Water Revenue Bonds, Series A, Prerefunded,

      

5.00%, 3/1/17(1)

      2,450        2,467  

Minnesota State Rural Water Finance Authority Public Project Construction Revenue Notes,

      

2.00%, 10/1/17

      4,000        4,026  

Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B,

      

5.00%, 10/1/21

      2,030        2,326  

Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series F,

      

5.00%, 10/1/19

      10,075        11,041  

Olmsted County G.O. Unlimited Bonds, Series A,

      

4.00%, 2/1/21

      1,545        1,684  

Park Rapids Independent School District No. 309 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program),

      

5.00%, 2/1/17

      1,385        1,390  

5.00%, 2/1/20

      1,410        1,549  

Rochester Wastewater G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 2/1/19

      1,475        1,588  
  

 

 

     

 

 

  
        44,990  
     

 

 

  

Mississippi - 0.5%

      

University of Southern Mississippi Educational Building Corp. Revenue Bonds, Athletics Facilities Improvements Project (AGM Insured), Prerefunded,

      

5.00%, 3/1/17(1)

      5,000        5,035  
  

 

 

     

 

 

  

Missouri - 1.4%

      

Columbia School District G.O. Unlimited Refunding Bonds,

      

5.00%, 3/1/26

      3,025        3,582  

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Missouri - 1.4% continued

      

Jackson County Reorganized School District No. 7 Lees Summit G.O. Unlimited Refunding Bonds,

      

3.00%, 3/1/18

    $ 1,365      $ 1,395  

Jackson County Special Obligation Revenue Refunding Bonds, Truman Sports Complex Project (State Appropriation City Appropriation Insured),

      

5.00%, 12/1/21

      5,000        5,662  

Missouri State Highways & Transit Commission Road Revenue Bonds, Second Lien, Prerefunded,

      

5.25%, 5/1/17(1)

      590        599  

Springfield Public Utility Revenue Refunding Bonds,

      

5.00%, 8/1/21

      3,000        3,415  
  

 

 

     

 

 

  
        14,653  
     

 

 

  

Nebraska - 0.2%

      

Omaha Public Power District Electric System Revenue Refunding Bonds, Series B,

      

5.00%, 2/1/19

      2,000        2,150  
  

 

 

     

 

 

  

Nevada - 0.8%

      

Las Vegas Valley Water District G.O. Limited Refunding Bonds, Series C,

      

5.00%, 9/15/21

      3,260        3,719  

Nevada State G.O. Limited Bonds, Series A,

      

5.00%, 8/1/21

      2,585        2,941  

Washoe County School District G.O. Limited Tax Refunding Bonds, Series A,

      

4.00%, 6/1/19

      1,825        1,930  
  

 

 

     

 

 

  
        8,590  
     

 

 

  

New Hampshire - 0.2%

      

Portsmouth Capital Improvement Loan G.O. Unlimited Bonds,

      

5.00%, 6/1/21

      1,590        1,809  
  

 

 

     

 

 

  

New Jersey - 2.3%

      

Elizabeth G.O. Unlimited Bonds,

      

2.00%, 4/1/17

      1,620        1,624  

Monmouth County G.O. Unlimited Bonds,

      

4.00%, 1/15/19

      3,515        3,706  

New Jersey State EDA Revenue Refunding Bonds, School Facilities Construction, Escrowed to Maturity,

      

5.00%, 9/1/18

      7,775        8,256  

New Jersey State EDA Revenue Refunding Bonds, School Facilities Construction, Unrefunded Balance,

      

5.00%, 9/1/18

      1,325        1,378  

Somerset County G.O. Unlimited Bonds,

      

2.00%, 7/15/17

      510        513  

Union County G.O. Unlimited Bonds, Escrowed to Maturity,

      

3.00%, 3/1/19

      80        83  

Union County G.O. Unlimited Bonds, Series B,

      

2.00%, 3/1/20

      500        504  

Union County G.O. Unlimited Bonds, Series B, Escrowed to Maturity,

      

3.00%, 3/1/20

      55        57  

Union County G.O. Unlimited Bonds, Series B, Unrefunded Balance,

      

3.00%, 3/1/20

      2,932        3,058  

Union County G.O. Unlimited Bonds, Unrefunded Balance,

      

3.00%, 3/1/19

      4,235        4,381  

Union County Vocational Technology School G.O. Unlimited Bonds (School Board Resource Fund Insured),

      

3.00%, 3/1/18

      460        470  
  

 

 

     

 

 

  
        24,030  
     

 

 

  

New Mexico - 2.5%

      

Albuquerque Bernalillo County Water Utility Authority Joint Water & Sewer Revenue Refunding Bonds, Series B,

      

5.00%, 7/1/21

      1,675        1,910  

Albuquerque General Purpose G.O. Unlimited Bonds, Series A,

      

4.00%, 7/1/17

      5,050        5,129  

New Mexico State Finance Authority Revenue Refunding Bonds, Series E,

      

5.00%, 6/1/20

      2,845        3,154  

New Mexico State Severance Tax Revenue Refunding Bonds, Series D,

      

5.00%, 7/1/17

      10,000        10,205  

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

New Mexico - 2.5% continued

      

New Mexico State University Revenue Refunding & Improvement Bonds, Series B,

      

5.00%, 4/1/18

    $ 2,615      $ 2,742  

5.00%, 4/1/19

      2,710        2,925  
  

 

 

     

 

 

  
        26,065  
     

 

 

  

New York - 4.3%

      

Long Beach City School District G.O. Unlimited Bonds (State Aid Withholding),

      

3.00%, 5/1/18

      4,015        4,115  

Metropolitan Transportation Authority Revenue Bonds, Series G,

      

5.00%, 11/15/17

      2,235        2,311  

Metropolitan Transportation Authority Revenue Bonds, Subseries A-1,

      

5.00%, 11/15/18

      3,540        3,778  

Monroe County Industrial Development Agency School Facilities Revenue Bonds, Rochester Schools Modernization (State Aid Withholding),

      

5.00%, 5/1/17

      705        715  

5.00%, 5/1/18

      1,000        1,050  

New York G.O. Unlimited Bonds, Series G,

      

5.00%, 8/1/17

      800        819  

5.00%, 8/1/19

      5,000        5,437  

New York G.O. Unlimited Bonds, Subseries 1,

      

5.00%, 8/1/17

      340        348  

New York G.O. Unlimited Bonds, Subseries G-1,

      

5.00%, 4/1/21

      1,475        1,661  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series C, School Districts Financing Program (AGC State Aid Withholding),

      

5.00%, 10/1/17

      2,880        2,964  

New York State Dormitory Authority Personal Income Tax General Purpose Revenue Bonds, Series A,

      

5.00%, 2/15/21

      4,650        5,246  

New York State Dormitory Authority Personal Income TRB, Series A, Education, Prerefunded,

      

5.00%, 3/15/17(1)

      4,800        4,842  

New York State Urban Development Corp. Personal Income Tax Revenue Refunding Bonds, Series A,

      

5.00%, 3/15/24

      3,000        3,583  

New York State Urban Development Corp. Personal Income TRB, Series D,

      

5.00%, 3/15/20

      2,850        3,152  

New York State Urban Development Corp. Personal Income TRB, Series E,

      

5.00%, 3/15/21

      4,750        5,367  
  

 

 

     

 

 

  
        45,388  
     

 

 

  

North Carolina - 1.1%

      

Forsyth County G.O. Unlimited Bonds,

      

5.00%, 5/1/20

      890        990  

Mecklenburg County G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 9/1/19

      3,410        3,731  

New Hanover County Community College G.O. Unlimited Bonds, Series A,

      

5.00%, 6/1/17

      1,500        1,526  

North Carolina State Infrastructure Finance Corp. Capital Improvements COPS, Series A (AGM Insured), Prerefunded,

      

5.00%, 2/1/17(1)

      580        582  

Wake County G.O. Unlimited School Bonds, Series A,

      

5.00%, 2/1/18

      5,100        5,318  
  

 

 

     

 

 

  
        12,147  
     

 

 

  

Ohio - 2.7%

      

Columbus G.O. Unlimited Bonds, Series A,

      

2.00%, 8/15/20

      1,375        1,389  

Columbus G.O. Unlimited Refunding Bonds, Series 1,

      

5.00%, 7/1/19

      5,000        5,444  

Columbus Various Purpose G.O. Limited Refunding Bonds, Series 2,

      

4.00%, 2/15/17

      275        276  

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Ohio - 2.7% continued

      

Columbus Various Purpose G.O. Unlimited Bonds, Series A,

      

5.00%, 8/15/19

    $ 2,550      $ 2,785  

Cuyahoga County Sales Tax Revenue Refunding Bonds,

      

5.00%, 12/1/21

      1,115        1,278  

Gallia County Local School Improvement District G.O. Unlimited Refunding Bonds (School District Credit Program),

      

5.00%, 11/1/20

      750        836  

Hamilton City School District Various Purpose G.O. Unlimited Refunding Bonds (School District Credit Program),

      

5.00%, 12/1/20

      1,770        1,975  

Hamilton County Sales Tax Revenue Refunding Bonds, Series A,

      

3.00%, 12/1/17

      3,000        3,051  

Hamilton County Sewer System Revenue Refunding Bonds, Series A,

      

5.00%, 12/1/17

      1,150        1,192  

Ohio State Common Schools G.O. Unlimited Bonds, Series B,

      

5.00%, 6/15/19

      5,000        5,433  

Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 9/15/17

      380        391  

5.00%, 9/15/21

      2,350        2,686  

Ohio State Fresh Water Development Authority Revenue Bonds, Series A,

      

5.00%, 6/1/19

      2,000        2,174  
  

 

 

     

 

 

  
        28,910  
     

 

 

  

Oklahoma - 0.5%

      

Oklahoma City G.O. Unlimited Bonds,

      

2.00%, 3/1/17

      100        100  

Tulsa G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 5/1/17

      5,000        5,069  
  

 

 

     

 

 

  
        5,169  
     

 

 

  

Oregon - 2.1%

      

Clackamas County School District No. 12 North Clackamas Convertible Deferred Interest G.O. Unlimited Bonds, Series B (AGM Insured School Board Guaranty Program), Prerefunded,

      

5.00%, 6/15/17(3)

      1,100        1,121  

Clackamas County School District No. 12 North Clackamas G.O. Unlimited Bonds, Series A (AGM Insured School Board Guaranty Program), Prerefunded,

      

4.75%, 6/15/17(1)

      1,400        1,424  

Deschutes County Admin School District No. 1 G.O. Unlimited Bonds (NATL Insured), Prerefunded,

      

5.00%, 6/15/17(1)

      150        153  

Klamath Falls City Schools G.O. Unlimited Bonds, Series A (School Board Guaranty Program),

      

5.00%, 6/15/21

      1,925        2,175  

Oregon State Board Higher Education G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/17

      2,380        2,437  

Oregon State Department of Administrative Services Lottery Revenue Refunding Bonds, Series C,

      

5.00%, 4/1/22

      2,000        2,310  

Oregon State G.O. Unlimited Bonds, Series L,

      

5.00%, 11/1/20

      1,740        1,954  

5.00%, 11/1/21

      905        1,037  

Oregon State University System G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 8/1/20

      2,020        2,256  

Portland G.O. Unlimited Bonds, Series A, Public Safety Project,

      

5.00%, 6/15/22

      1,165        1,351  

Tri-County Metropolitan Transportation District Payroll Tax & Grant Receipt Revenue Bonds,

      

4.00%, 11/1/17

      4,440        4,505  

Tualatin Hills Park & Recreation District G.O. Unlimited Refunding Bonds,

      

5.00%, 6/1/20

      1,665        1,853  
  

 

 

     

 

 

  
        22,576  
     

 

 

  

 

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Pennsylvania - 1.2%

      

Bethlehem Area School District G.O. Limited Refunding Bonds, Series A (AGM Insured State Aid Withholding),

      

5.00%, 2/1/23

    $ 1,055      $ 1,208  

Hempfield School District Lancaster County G.O. Unlimited Bonds, Series A (State Aid Withholding),

      

3.00%, 10/15/18

      300        308  

Pennsylvania State G.O. Unlimited Bonds, Second Series A, Prerefunded,

      

5.00%, 8/1/17(1)

      150        154  

Pennsylvania State G.O. Unlimited Refunding Bonds, First Series,

      

5.00%, 9/15/22

      5,015        5,723  

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, University of Pennsylvania, Escrowed to Maturity,

      

5.00%, 9/1/17

      5,000        5,136  

Philadelphia Water & Wastewater Revenue Bonds, Series A,

      

4.00%, 1/1/17

      500        500  
  

 

 

     

 

 

  
        13,029  
     

 

 

  

Rhode Island - 0.0%

      

Rhode Island State Turnpike & Bridge Authority Motor Fuel Tax Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/17

      250        257  
  

 

 

     

 

 

  

South Carolina - 2.1%

      

Anderson County School District No. 5 G.O. Unlimited Bonds (SCSDE Insured),

      

4.00%, 3/1/17

      3,075        3,092  

Clover School District No. 2 G.O. Unlimited Refunding Bonds (SCSDE Insured),

      

5.00%, 3/1/22

      1,820        2,090  

Horry County School District G.O. Unlimited Refunding Bonds (SCSDE Insured),

      

5.00%, 3/1/18

      5,705        5,968  

Lexington County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (SCSDE Insured),

      

5.00%, 3/1/19

      2,120        2,286  

Richland County School District No. 1 G.O. Unlimited Refunding Bonds, Series C (SCSDE Insured),

      

5.00%, 3/1/21

      2,000        2,261  

Spartanburg County School District No. 1 G.O. Unlimited Refunding Bonds, Series D (SCSDE Insured),

      

5.00%, 3/1/20

      2,040        2,250  

5.00%, 3/1/21

      2,300        2,592  

York County School District No. 1 G.O. Unlimited Bonds, Series A (SCSDE Insured), Prerefunded,

      

5.25%, 3/1/19(1)

      1,330        1,441  
  

 

 

     

 

 

  
        21,980  
     

 

 

  

Tennessee - 0.9%

      

Clarksville Electric System Revenue Bonds (XLCA Insured), Prerefunded,

      

5.00%, 9/1/17(1)

      3,000        3,081  

Metropolitan Government of Nashville & Davidson County Electric System Revenue Refunding Bonds, Series A,

      

5.00%, 5/15/22

      2,455        2,831  

Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding Bonds, Series C, Prerefunded,

      

5.00%, 5/15/17(1)

      215        218  

Shelby County Special School G.O. Unlimited Refunding Bonds, Series B,

      

4.00%, 3/1/17

      100        101  

Tennessee State School Bond Authority Revenue Refunding Bonds, Higher Educational Facilities Second Program (State Intercept Program),

      

5.00%, 11/1/21

      2,125        2,430  

Williamson County District School G.O. Unlimited Bonds, Series A,

      

5.00%, 4/1/20

      1,000        1,110  
  

 

 

     

 

 

  
        9,771  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Texas - 6.8%

      

Aldine Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 2/15/18

    $ 360      $ 362  

Arlington Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.),

      

3.00%, 2/15/17

      100        100  

Bexar County G.O. Limited Bonds, Certificates of Obligation, Prerefunded,

      

5.25%, 6/15/17(1)

      250        255  

Brownsville G.O. Limited Refunding Bonds,

      

4.00%, 2/15/18

      150        154  

Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series 2005-2 (PSF-Gtd.),

      

3.13%, 2/15/17

      7,140        7,161  

Cypress-Fairbanks Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

3.25%, 2/15/17

      7,000        7,021  

Dallas Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.),

      

5.50%, 2/15/17

      10,000        10,058  

Dallas Waterworks & Sewer System Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/22

      1,125        1,306  

Denton G.O. Limited Refunding & Improvement Bonds,

      

4.00%, 2/15/17

      250        251  

Eagle Mountain & Saginaw Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.),

      

2.00%, 8/1/19(2)

      2,500        2,523  

Fort Worth Water & Sewer Revenue Refunding Bonds,

      

5.00%, 2/15/17

      1,120        1,126  

Fort Worth Water & Sewer System Revenue Bonds, Prerefunded,

      

5.00%, 2/15/17(1)

      325        327  

Goose Creek Consolidated Independent Schoolhouse District G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded,

      

3.50%, 2/15/17(1)

      825        828  

Houston Independent School District G.O. Limited Refunding Bonds, Series A (PSF-Gtd.),

      

5.00%, 2/15/23

      2,500        2,921  

Houston Public Improvement G.O. Limited Refunding Bonds, Series A,

      

5.00%, 3/1/17

      5,000        5,035  

Irving G.O Limited Refunding & Improvement Bonds,

      

5.50%, 9/15/17

      2,000        2,064  

Lamar Consolidated Independent Schoolhouse District G.O. Unlimited Refunding Bonds (PSF-Gtd.), Prerefunded,

      

5.00%, 2/15/17(1)

      2,825        2,840  

Lamar Consolidated Independent Schoolhouse District Variable G.O. Unlimited Bonds, Series A (PSF-Gtd.),

      

1.05%, 8/15/18(2)

      3,500        3,477  

Laredo G.O. Limited Refunding Bonds,

      

5.00%, 2/15/23

      3,595        4,164  

Lewisville Water & Sewer Revenue Refunding & Improvement Bonds,

      

4.00%, 2/15/17

      200        201  

Northside Texas Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.),

      

2.13%, 8/1/20(2)

      2,300        2,301  

Northside Texas Independent School District Building G.O. Unlimited Refunding Bonds (PSF-Gtd.), Prerefunded,

      

5.00%, 8/15/17(1)

      350        359  

Northside Texas Independent School District Building G.O. Unlimited Refunding Bonds, Unrefunded Balance (PSF-Gtd.),

      

5.00%, 8/15/18

      300        307  

 

TAX-EXEMPT FIXED INCOME FUNDS     12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Texas - 6.8% continued

      

Pharr-San Juan-Alamo Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded,

      

5.50%, 2/1/17(1)

    $ 200      $ 201  

Plano Independent School District School Building G.O. Unlimited Bonds (PSF-Gtd.),

      

5.00%, 2/15/23

      5,000        5,841  

Richardson G.O. Limited Refunding Bonds,

      

4.00%, 2/15/18

      1,000        1,033  

San Antonio Water System Variable Revenue Refunding Bonds,

      

5.00%, 5/15/17

      100        101  

Texas State A&M University Financing System Revenue Bonds, Series D,

      

5.00%, 5/15/17

      345        350  

Texas State G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 10/1/17

      1,500        1,546  

Texas State PFA G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 10/1/18

      3,620        3,862  

Texas State Public Finance Authority G.O. Unlimited Bonds, Prerefunded,

      

5.00%, 10/1/17(1)

      500        515  

Texas State Transportation Commission State Highway Fund Revenue Bonds, Series B, First Tier, Prerefunded,

      

5.00%, 4/1/17(1)

      2,790        2,819  

West Harris County Regional Water Authority System Revenue Refunding Bonds, Series A,

      

5.00%, 12/15/21

      500        568  

Williamson County G.O. Unlimited Refunding Bonds (NATL Insured),

      

5.25%, 2/15/17

      100        100  
  

 

 

     

 

 

  
        72,077  
     

 

 

  

Utah - 1.1%

      

Box Elder County School District G.O. Unlimited Refunding Bonds (School Board Guaranty Program),

      

5.00%, 7/15/23

      1,000        1,176  

Davis County School District G.O. Unlimited Refunding Bonds, Series C (School Board Guaranty Program),

      

5.00%, 6/1/18

      7,540        7,951  

Jordan Valley Water Conservancy District Revenue Refunding Bonds, Series A, Prerefunded,

      

5.00%, 10/1/19(1)

      425        465  

Jordan Valley Water Conservancy District Revenue Refunding Bonds, Series A, Unrefunded Balance,

      

5.00%, 10/1/27

      45        49  

5.00%, 10/1/28

      30        32  

Riverton City Franchise Sales TRB (AMBAC Insured), Prerefunded,

      

5.00%, 6/1/17(1)

      300        305  

Tooele County School District G.O. Unlimited Refunding Bonds, Series B (School Board Guaranty Program),

      

5.00%, 6/1/19

      1,675        1,817  
  

 

 

     

 

 

  
        11,795  
     

 

 

  

Virginia - 9.2%

      

Arlington County G.O. Unlimited Bonds, Series A (State Aid Withholding),

      

5.00%, 2/15/18

      255        266  

5.00%, 2/15/19

      3,305        3,563  

Fairfax County EDA Lease Revenue Refunding Bonds, Joint Public Uses Complex Project,

      

5.00%, 5/15/20

      6,620        7,337  

5.00%, 5/15/21

      6,945        7,866  

Loudoun County G.O. Unlimited Bonds, Series B,

      

5.00%, 11/1/17

      10,000        10,336  

Loudoun County Public Improvement G.O. Unlimited Refunding Bonds, Series A (State Aid Withholding),

      

4.00%, 12/1/17

      1,010        1,038  

Lynchburg Public Improvement G.O. Unlimited Refunding Bonds (State Aid Withholding),

      

5.00%, 6/1/18

      2,990        3,156  

Norfolk G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 10/1/25

      1,275        1,539  

 

NORTHERN FUNDS QUARTERLY REPORT    13    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Virginia - 9.2% continued

      

Norfolk G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding),

      

5.00%, 8/1/22

    $ 4,100      $ 4,749  

Virginia State College Building Authority Educational Facilities Public Higher Education Revenue Refunding Bonds, Series B (State Intercept Program),

      

5.00%, 9/1/23

      4,290        5,049  

Virginia State College Building Authority Educational Facilities Revenue Bonds, Series D, 21st Century College (State Intercept Program),

      

5.00%, 2/1/23

      1,285        1,499  

Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects,

      

5.00%, 5/15/18

      3,465        3,652  

5.00%, 5/15/20

      8,170        9,089  

Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects (State Appropriation Insured),

      

5.00%, 5/15/17

      2,725        2,768  

Virginia State Public Building Authority Public Facilities Revenue Bonds, Series A,

      

5.00%, 8/1/22

      3,505        4,060  

Virginia State Public School Authority School Financing Revenue Bonds, Series C (State Aid Withholding),

      

5.00%, 8/1/21

      1,260        1,438  

Virginia State Public School Authority School Financing Revenue Refunding Bonds (State Aid Withholding),

      

5.00%, 8/1/23

      10,000        11,767  

Virginia State Public School Authority School Financing Revenue Refunding Bonds, Series C (State Aid Withholding),

      

5.00%, 8/1/19

      10,000        10,898  

Virginia State Resources Authority Clean Water Revolving Fund Revenue Refunding Bonds,

      

5.00%, 10/1/20

      3,500        3,928  

Virginia State Resources Authority Clean Water State Revolving Fund Revenue Bonds, Subordinate Series, Prerefunded,

      

5.00%, 10/1/17(1)

      1,750        1,803  

Virginia State Resources Authority Infrastructure Revenue Bonds, Series A, Pooled Financing,

      

5.00%, 11/1/20

      1,930        2,167  
  

 

 

     

 

 

  
        97,968  
     

 

 

  

Washington - 5.7%

      

Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Columbia (NATL Insured),

      

5.25%, 7/1/17

      795        812  

Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project No. 3,

      

5.00%, 7/1/17

      1,030        1,051  

5.00%, 7/1/18

      10,000        10,577  

King & Snohomish Counties School District No. 417 Northshore G.O. Unlimited Refunding Bonds (School Board Guaranty Program),

      

4.00%, 12/1/18

      2,500        2,629  

5.00%, 12/1/20

      2,000        2,245  

King County G.O. Limited Refunding Bonds, Series E,

      

4.00%, 12/1/17

      500        514  

Lewis County Public Utility District No. 1 Cowlitz Falls Hydroelectric Project Revenue Refunding Bonds,

      

5.00%, 10/1/17

      600        618  

Seattle City Water System Revenue Refunding & Improvement Bonds,

      

5.00%, 5/1/22

      3,340        3,852  

Snohomish County School District No. 15 Edmonds G.O. Unlimited Bonds (School Board Guaranty Program),

      

5.00%, 12/1/21

      750        855  

Snohomish County School District No. 332 Granite Falls G.O. Unlimited Refunding Bonds, Series A (School Board Guaranty Program),

      

4.00%, 12/1/19

      1,000        1,062  

 

TAX-EXEMPT FIXED INCOME FUNDS     14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 90.1% continued

      

Washington - 5.7% continued

      

University of Washington Revenue Refunding Bonds, Series B,

      

5.00%, 6/1/21

    $ 1,400      $ 1,590  

Washington Federal Highway Grant Anticipation Revenue Bonds, Series C, Senior 520 Corridor Program,

      

5.00%, 9/1/18

      4,750        5,035  

Washington State G.O. Unlimited Bonds, Series A, Prerefunded,

      

5.00%, 7/1/17(1)

      110        112  

Washington State G.O. Unlimited Refunding Bonds, Series R-2011-A,

      

5.00%, 1/1/18

      5,200        5,405  

Washington State G.O. Unlimited Refunding Bonds, Series R-2015-C,

      

5.00%, 7/1/20

      6,000        6,681  

Washington State Various Purpose G.O. Unlimited Bonds, Series D,

      

5.00%, 2/1/21

      9,795        11,042  

Washington State Various Purpose G.O. Unlimited Bonds, Series F, Prerefunded,

      

4.50%, 7/1/17(1)

      150        153  

Washington State Various Purpose G.O. Unlimited Refunding Bonds, Series R-2015,

      

5.00%, 7/1/21

      3,000        3,415  

Whatcom County School District No. 501 Bellingham G.O. Unlimited Refunding Bonds (School Board Guaranty Program),

      

5.00%, 12/1/20

      2,170        2,429  
  

 

 

     

 

 

  
        60,077  
     

 

 

  

Wisconsin - 0.3%

      

Central Brown County Water Authority System Revenue Refunding Bonds, Series A,

      

5.00%, 11/1/20

      200        223  

Milwaukee G.O. Unlimited Refunding Bonds, Series N2, Promissory Notes,

      

3.00%, 3/15/17

      1,125        1,130  

PMA Levy & Aid Program Revenue Notes, Series A,

      

2.00%, 10/20/17

      1,400        1,409  

Wisconsin State G.O. Unlimited Bonds, Series C,

      

4.00%, 5/1/17

      275        278  
  

 

 

     

 

 

  
        3,040  
     

 

 

  

Total Municipal Bonds

(Cost $955,132)

         957,211  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 1.4%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(4) (5)

      14,736,907      $ 14,737  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $14,737)

         14,737  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 6.8%

      

Alvin Independent Schoolhouse District G.O. Unlimited Bonds, Series B (PSF-Gtd.),

      

3.00%, 8/14/17(2)

    $ 5,000      $ 5,055  

Bernalillo County G.O. Unlimited Refunding Bonds,

      

3.50%, 2/1/17

      230        231  

Colorado State General Fund TRANS, Series A,

      

2.00%, 6/27/17

      5,375        5,404  

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series A, Yale University,

      

0.80%, 7/26/17(2)

      2,000        1,997  

Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series B-2 (PSF-Gtd.),

      

3.00%, 8/15/17(2)

      1,750        1,772  

Florida State Board of Education Lottery Revenue Refunding Bonds, Series C,

      

5.00%, 7/1/17

      1,615        1,648  

Garland G.O. Limited Bonds, Certificates of Obligation,

      

2.00%, 2/15/17

      785        786  

 

NORTHERN FUNDS QUARTERLY REPORT    15    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 6.8% continued

      

Indianapolis Local Public Improvement Bond Bank Revenue Refunding Bonds, Series D,

      

5.00%, 2/1/17

    $ 200      $ 201  

Kentucky State Property & Buildings Commission Revenues Bonds, Series A, Project No. 112,

      

3.00%, 2/1/17

      2,690        2,695  

King County Sewer Revenue Refunding Bonds, Series A,

      

4.00%, 1/1/17

      1,000        1,000  

Massachusetts State G.O. Limited Bonds, Series 7, Consolidated Loan,

      

4.00%, 7/1/17

      1,105        1,122  

Massachusetts State G.O. Limited RANS, Series C,

      

2.00%, 6/26/17

      10,000        10,053  

Menomonee Falls School District School Improvement G.O. Unlimited Bonds,

      

2.00%, 4/1/17

      2,325        2,331  

Nevada State Special Revenue Bonds, Unemployment Compensation Fund,

      

5.00%, 6/1/17

      200        203  

New York G.O. Unlimited Bonds, Series C, Subseries C-A,

      

5.00%, 8/1/17

      200        205  

New York State Dormitory Authority Personal Income Taxable Revenue Refunding Bonds, Series E,

      

3.00%, 2/15/17

      300        301  

New York State Urban Development Corp. Personal Income TRB, Series E,

      

5.00%, 3/15/17

      3,350        3,379  

North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series A, Escrowed to Maturity,

      

5.25%, 1/1/17

      915        915  

Peoria Variable G.O. Unlimited Refunding Bonds, Series A,

      

1.03%, 1/9/17(2)

      5,000        5,000  

Portland Sewer System Revenue Bonds, Series A, Second Lien,

      

5.00%, 3/1/17

      1,865        1,878  

Rhode Island State & Providence Plantations G.O. Unlimited Refunding Bonds, Series A, Consolidated Capital Development Loan,

      

4.00%, 8/1/17

      1,500        1,527  

Rhode Island State Health & Educational Building Corp. Higher Education Facility Revenue Refunding Bonds, Series A, University of Rhode Island (State Appropriation Insured),

      

5.00%, 9/15/17

      250        257  

Richland County School District No. 1 G.O. Unlimited Refunding Bonds (SCSDE Insured),

      

5.00%, 3/1/17

      1,000        1,007  

Richland County School G.O. Unlimited Bonds, Series A (State Aid Withholding),

      

3.00%, 3/1/17

      3,035        3,046  

Richland County School G.O. Unlimited Bonds, Series B, Richland Library Projects (State Aid Withholding),

      

3.00%, 3/1/17

      3,090        3,101  

San Francisco Bay Area Toll Bridge Authority Variable Revenue Bonds, Series C3,

      

1.45%, 8/1/17(2)

      6,725        6,728  

San Mateo Foster City School District G.O. Unlimited Bonds, Series A, Election of 2015,

      

2.00%, 8/1/17

      800        805  

South Carolina State Public Service Authority Revenue Bonds, Series A (AMBAC Insured), Escrowed to Maturity,

      

4.25%, 1/1/17

      100        100  

Spring Branch Independent School District G.O. Limited Refunding Tax Bonds (PSF-Gtd.),

      

5.00%, 2/1/17

      300        301  

Spring Lake Park Independent School District No. 16 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program),

      

4.00%, 2/1/17

      175        176  

Summit G.O. Unlimited Bonds,

      

1.50%, 3/1/17

      907        908  

Summit School G.O. Unlimited Bonds (School Board Resource Fund Insured),

      

1.50%, 3/1/17

      560        561  

Texas State Public Finance Authority Unemployment Compensation Assessment Revenue Refunding Bonds,

      

5.00%, 1/1/17

      1,580        1,580  

 

TAX-EXEMPT FIXED INCOME FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 6.8% continued

      

University of Connecticut Revenue Refunding Bonds, Series A,

      

5.00%, 2/15/17

    $ 485      $ 488  

University of Minnesota Revenue Bonds, Series A,

      

3.00%, 4/1/17

      1,000        1,005  

Virginia State College Building Authority Educational Facilities Revenue Bonds, 21st Century College & Equipment Program,

      

5.00%, 2/1/17

      125        125  

Virginia State College Building Authority Educational Facilities Revenue Bonds, Series D, 21st Century College & Equipment Program,

      

5.00%, 2/1/17

      200        201  

Wake County G.O. Unlimited Refunding Bonds, Series D,

      

4.00%, 2/1/17

      300        301  

Washington State Motor Vehicle Fuel Tax G.O. Unlimited Refunding Bonds, Series R-B (AMBAC Insured),

      

5.00%, 1/1/17

      250        250  

West Clark School Building Corp. First Mortgage Revenue Refunding Bonds (State Intercept Program),

      

4.00%, 1/15/17

      1,515        1,517  

Wichita Water & Sewer Utility Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/17

      2,000        2,060  

Williamson County G.O. Limited Refunding Tax Bonds, Series A (NATL Insured),

      

5.00%, 2/15/17

      250        251  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $72,501)

         72,471  
     

 

 

  

Total Investments - 98.3%

(Cost $1,042,370)

         1,044,419  
     

 

 

  

Other Assets less Liabilities - 1.7%

         18,020  
     

 

 

  

NET ASSETS - 100.0%

       $ 1,062,439  
     

 

 

  

 

(1) Maturity date represents the prerefunded date.
(2) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the puttable date.
(3) Step coupon bond. Rate as of December 31, 2016 is disclosed. Maturity date represents the prerefunded date.
(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(5) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

 

NORTHERN FUNDS QUARTERLY REPORT    17    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

 

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AAA

      26.6 % 

AA

      62.7  

A

      5.7  

A1+ (Short Term)

      0.7  

A1 (Short Term)

      1.1  

Not Rated

      1.8  

Cash Equivalents

      1.4  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on converting the available Moody’s, S&P Global, 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The S&P Global’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.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF
INVESTMENTS		  

General Obligation

      38.6 % 

School District

      20.2  

General

      15.6  

Water

      8.0  

All other sectors less than 5%

      17.6  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

     LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

INVESTMENTS

    (000S)      (000S)      (000S)      (000S)  

Municipal Bonds(1)

    $ —        $ 957,211      $ —        $ 957,211  

Investment Companies

      14,737        —          —          14,737  

Short-Term Investments

      —          72,471        —          72,471  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 14,737      $ 1,029,682      $ —        $ 1,044,419  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,042,370  
  

 

 

  

Gross tax appreciation of investments

    $ 6,422  

Gross tax depreciation of investments

      (4,373 ) 
  

 

 

  

Net tax appreciation of investments

    $ 2,049  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Tax-Exempt Portfolio

    $ 50,347      $ 223,704      $ 274,051      $ 24      $ —    

Northern Institutional Funds - U.S. Government Portfolio

      —          137,440        122,703        18        14,737  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 50,347      $ 361,144      $ 396,754      $ 42      $ 14,737  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Institutional Funds - Tax-Exempt Portfolio was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGC - Assured Guaranty Corporation

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

BAM - Build America Mutual

COPS - Certificates of Participation

EDA - Economic Development Authority

 

TAX-EXEMPT FIXED INCOME FUNDS     18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

G.O. - General Obligation

Gtd. - Guaranteed

NATL - National Public Finance Guarantee Corporation

PFA - Public Finance Authority

PSF - Permanent School Fund

Q-SBLF - Qualified School Bond Loan Fund

RANS - Revenue Anticipation Notes

SCSDE - South Carolina School District Enhancement

TRANS - Tax Revenue Anticipation Notes

TRB - Tax Revenue Bonds

XLCA - XL Capital Assurance

 

NORTHERN FUNDS QUARTERLY REPORT    19    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

TAX-EXEMPT FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9%

      

Alabama - 0.1%

      

Birmingham Convertible G.O. Unlimited CABS, Series A,

      

0.43%, 3/1/27(1)

    $ 1,000       $ 1,103   
  

 

 

     

 

 

  

Alaska - 0.2%

      

University of Alaska General Revenue Bonds, Series V-1,

      

5.00%, 10/1/44

      2,000         2,225   
  

 

 

     

 

 

  

Arizona - 1.7%

      

Arizona State Transportation Board Highway Revenue Bonds, Series B, Prerefunded,

      

5.00%, 7/1/18(2)

      5,000         5,280   

Arizona State Transportation Board Highway Revenue Refunding Bonds,

      

5.00%, 7/1/32

      5,000         5,894   

Phoenix Civic Improvement Corp. Water System Revenue Bonds, Series A, Junior Lien,

      

5.00%, 7/1/39

      5,000         5,617   

Salt River Project Agricultural Improvement & Power District Electric System Revenue Refunding Bonds, Series A,

      

5.00%, 1/1/38

      1,000         1,157   

Student & Academic Services LLC Lease Revenue Bonds, Northern Arizona Capital Facilities (BAM Insured),

      

5.00%, 6/1/44

      2,000         2,210   
  

 

 

     

 

 

  
        20,158   
     

 

 

  

California - 15.0%

      

Brentwood Infrastructure Financing Authority Water Revenue Bonds, Prerefunded,

      

5.75%, 7/1/18(2)

      1,500         1,602   

California State Educational Facilities Authority Revenue Bonds, Series A, University of Southern California, Prerefunded,

      

5.25%, 10/1/18(2)

      2,000         2,141   

California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance,

      

5.75%, 5/1/30

      75         75   

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 3/1/27

      1,500         1,768   

5.25%, 8/1/31

      5,000         5,946   

5.00%, 8/1/34

      10,000         11,471   

6.25%, 11/1/34

      2,830         3,172   

California State Health Facilities Financing Authority Revenue Bonds, Series A, Cedars Sinai Medical Center,

      

5.00%, 8/15/29

      3,450         4,070   

California State Health Facilities Financing Authority Revenue Bonds, Series A, Sutter Health,

      

5.00%, 11/15/46

      5,000         5,500   

California State Health Facilities Financing Authority Revenue Refunding Bonds, Series B, Sutter Health,

      

5.00%, 11/15/46

      4,200         4,660   

California State University Systemwide Revenue Refunding Bonds, Series A,

      

4.00%, 11/1/34

      2,000         2,102   

California Statewide Communities Development Authority Student Housing Revenue Refunding Bonds, Chf-Irvine LLC,

      

5.00%, 5/15/32

      1,000         1,090   

Carlsbad Unified School District G.O. Unlimited Convertible CABS, Series B, Election of 2006,

      

1.78%, 5/1/34(1)

      2,500         2,603   

Desert Community College District G.O. Unlimited Bonds, Series C (AGM Insured), Prerefunded,

      

5.00%, 8/1/17(2)

      1,500         1,536   

Desert Community College District G.O. Unlimited CABS, Series C, Election of 2004 (AGM Insured),

      

0.00%, 8/1/46(3)

      12,000         2,456   

Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL Insured),

      

6.00%, 5/15/17

      1,155         1,177   

Los Angeles Community College District G.O. Unlimited Bonds, Series I,

      

4.00%, 8/1/35

      2,000         2,092   

Los Angeles Community College District G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 8/1/29

      4,350         5,118   

5.00%, 8/1/31

      12,450         14,514   

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

California - 15.0% continued

      

Los Angeles County G.O. Unlimited TRANS,

      

3.00%, 6/30/17

    $ 5,500      $ 5,558  

Los Angeles Department of Water & Power System Revenue Bonds, Subseries A-1 (AMBAC Insured),

      

5.00%, 7/1/39

      3,000        3,047  

Los Angeles Department of Water & Power System Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/31

      1,445        1,674  

Los Angeles TRANS, Series B,

      

3.00%, 6/29/17

      5,000        5,051  

Los Angeles Unified School District G.O. Unlimited Bonds, Series A, Election of 2008,

      

5.00%, 7/1/17

      4,895        4,996  

Los Angeles Unified School District G.O. Unlimited Bonds, Series F,

      

5.00%, 1/1/34

      1,000        1,076  

Metropolitan Water District of Southern California State Revenue Bonds, Series A,

      

5.00%, 7/1/32

      6,105        6,221  

Modesto Irrigation District Capital Improvements COPS, Series A,

      

5.75%, 10/1/29

      7,020        7,599  

Oakland Unified School District Alameda County G.O. Unlimited Refunding Bonds (AGM Insured),

      

5.00%, 8/1/28

      1,000        1,184  

Orange County Sanitation District Wastewater Revenue Refunding, Series A,

      

5.00%, 2/1/36

      3,000        3,492  

Rancho Water District Financing Authority Revenue Bonds, Series A,

      

4.00%, 8/1/41

      2,500        2,572  

Sacramento Area Flood Control Agency Special Assessment Refunding Bonds, Consolidated Capital Assessment District,

      

5.00%, 10/1/32

      3,735        4,369  

5.00%, 10/1/41

      2,000        2,273  

Sacramento County Airport System Senior Revenue Bonds,

      

5.00%, 7/1/28

      1,280        1,391  

San Diego County Regional Transportation Commission Revenue Bonds, Series A,

      

5.00%, 4/1/36

      1,045        1,214  

San Francisco Bay Area Toll Bridge Authority Revenue Bonds, Series F-1, Prerefunded,

      

5.00%, 4/1/19(2)

      5,000        5,405  

San Francisco City & County Airports Commission Revenue Bonds, Series E,

      

5.25%, 5/1/32

      5,000        5,382  

San Jose Unified School District Santa Clara County G.O. Unlimited CABS, Series C, Election of 2002 (NATL Insured),

      

0.00%, 8/1/30(3)

      2,500        1,603  

San Mateo County Community College District G.O. Unlimited CABS, Series B, Election of 2005 (NATL Insured),

      

0.00%, 9/1/32(3)

      6,680        3,831  

0.00%, 9/1/35(3)

      5,000        2,494  

Santa Cruz County G.O. Unlimited TRANS,

      

3.00%, 6/29/17

      7,750        7,825  

Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, Prerefunded,

      

6.00%, 7/1/21(2)

      1,100        1,300  

Solano County Community College District G.O. Unlimited Bonds, Series A, Election of 2012,

      

1.44%, 8/1/41(1)

      3,200        2,582  

Turlock Irrigation District First Priority Subordinated Revenue Refunding Bonds,

      

5.00%, 1/1/41

      5,000        5,624  

University of California General Revenue Bonds, Series Q, Prerefunded,

      

5.25%, 5/15/17(2)

      2,500        2,566  

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

California - 15.0% continued

      

University of California Revenue Refunding Bonds, Series AR,

      

4.00%, 5/15/37

    $ 4,180      $ 4,349  

Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, Prerefunded,

      

5.50%, 8/1/18(2)

      7,000        7,476  
  

 

 

     

 

 

  
        175,247  
     

 

 

  

Colorado - 2.0%

      

Colorado State Board of Governors University Enterprise System Revenue Refunding Bonds (State Higher Education Intercept Program),

      

4.00%, 3/1/46

      2,000        2,008  

Colorado State Educational & Cultural Facilities Authority Revenue Bonds, University of Denver Project (NATL Insured),

      

5.00%, 3/1/35

      2,000        2,377  

Denver City & County Airport System Revenue Bonds, Series A,

      

5.25%, 11/15/29

      3,000        3,298  

5.25%, 11/15/36

      5,000        5,470  

Denver City & County Dedicated Tax Revenue Refunding & Improvement Bonds, Series A,

      

5.00%, 8/1/42

      1,500        1,705  

El Paso County School District No. 12 Cheyenne Mountain G.O. Unlimited Bonds (State Aid Withholding),

      

5.25%, 9/15/38

      5,000        5,758  

Weld County School District No. RE-4 G.O. Unlimited Bonds (State Intercept Program),

      

5.00%, 12/1/24

      2,550        3,032  
  

 

 

     

 

 

  
        23,648  
     

 

 

  

Connecticut - 1.2%

      

Connecticut State G.O. Unlimited Refunding Bonds, Series F, Green Bonds,

      

5.00%, 10/15/30

      5,000        5,728  

Connecticut State Higher Education Supplemental Loan Authority Revenue Refunding Bonds, Series A (AMT), Senior Family Education Loan Program (NATL Insured),

      

4.75%, 11/15/18

      505        506  

Connecticut State Special Tax Obligation Revenue Bonds, Series A,

      

5.00%, 8/1/34

      3,000        3,374  

Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Bonds, Series A,

      

4.00%, 9/1/36

      2,500        2,542  

South Central Regional Water Authority Water System Revenue Refunding Bonds, 32nd Series B,

      

5.00%, 8/1/38

      2,000        2,272  
  

 

 

     

 

 

  
        14,422  
     

 

 

  

District of Columbia - 2.7%

      

District of Columbia University Revenue Bonds, Series D, Georgetown University (BHAC-CR Insured),

      

5.50%, 4/1/36

      1,010        1,071  

District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, Prerefunded,

      

5.50%, 10/1/18(2)

      20,000        21,485  

District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series B, Subordinate Lien,

      

5.00%, 10/1/36

      5,000        5,727  

District of Columbia Water & Sewer Authority Public Utility Subordinate Revenue Bonds, Series A, Green Bonds,

      

5.00%, 10/1/45

      2,500        2,814  
  

 

 

     

 

 

  
        31,097  
     

 

 

  

Florida - 7.0%

      

Broward County Airport System Revenue Bonds, Series C,

      

5.25%, 10/1/43

      5,000        5,663  

Broward County Airport System Revenue Refunding Bonds, Series O,

      

5.38%, 10/1/29

      510        557  

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Florida - 7.0% continued

      

Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured),

      

5.00%, 9/1/24

    $ 1,235      $ 1,375  

5.00%, 9/1/25

      1,000        1,109  

Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT),

      

5.00%, 9/1/23

      2,500        2,732  

Central Florida Expressway Authority Revenue Refunding Bonds, Series B, Senior Lien,

      

4.00%, 7/1/36

      5,000        5,047  

Florida State Department of Environmental Protection Preservation Florida Forever Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/19

      1,585        1,717  

Florida State Department of Transportation G.O. Unlimited Bonds, Right of Way,

      

5.25%, 7/1/37

      10,000        10,319  

Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, Prerefunded,

      

6.25%, 10/1/19(2)

      3,000        3,380  

Hillsborough County Aviation Authority Customer Facilities Charge Revenue Bonds, Series A, Tampa International Airport,

      

5.00%, 10/1/44

      2,500        2,717  

Miami-Dade County Aviation Revenue Bonds, Miami International, Prerefunded,

      

5.50%, 10/1/20(2)

      605        688  

Miami-Dade County Aviation Revenue Bonds, Miami International, Unrefunded Balance,

      

5.50%, 10/1/29

      1,895        2,127  

Miami-Dade County Aviation Revenue Refunding Bonds (AMT),

      

5.00%, 10/1/27

      2,000        2,229  

Miami-Dade County Aviation Revenue Refunding Bonds, Series A (AMT),

      

5.00%, 10/1/38

      5,000        5,427  

Miami-Dade County Expressway Authority Toll System Revenue Bonds, Series A,

      

5.00%, 7/1/39

      4,025        4,454  

Miami-Dade County G.O. Unlimited Bonds, Series 2014-A, Building Better Communities Program,

      

5.00%, 7/1/34

      2,820        3,223  

Miami-Dade County G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 7/1/28

      4,820        5,733  

Miami-Dade County School District G.O. Unlimited,

      

5.00%, 3/15/41

      2,500        2,758  

Miami-Dade County Transit System Sales Surtax Revenue Bonds,

      

5.00%, 7/1/42

      10,000        11,012  

Orlando Utilities Commission Revenue Refunding Bonds, Subseries D, Escrowed to Maturity,

      

6.75%, 10/1/17

      1,340        1,392  

Palm Beach County Solid Waste Authority Revenue Refunding Bonds, Prerefunded,

      

5.00%, 10/1/21(2)

      75        86  

Palm Beach County Solid Waste Authority Revenue Refunding Bonds, Unrefunded Balance,

      

5.00%, 10/1/31

      4,925        5,486  

Tampa Bay Water Regional Water Supply Authority Utility System Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/36

      1,750        2,030  
  

 

 

     

 

 

  
        81,261  
     

 

 

  

Georgia - 3.2%

      

Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, Prerefunded,

      

5.50%, 1/1/19(2)

      7,500        8,122  

Georgia State G.O. Unlimited Bonds, Series A, Tranche 2,

      

5.00%, 2/1/27

      3,075        3,745  

5.00%, 2/1/28

      1,170        1,419  

Georgia State G.O. Unlimited Refunding Bonds, Series C-1,

      

5.00%, 1/1/24

      1,500        1,790  

4.00%, 1/1/25

      6,695        7,591  

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Georgia - 3.2% continued

      

Georgia State G.O. Unlimited Refunding Bonds, Series F,

      

5.00%, 12/1/28

    $ 5,160      $ 6,315  

Municipal Electric Authority of Georgia Revenue Bonds, Plant Vogtle Units 3 & 4 Project,

      

5.00%, 7/1/60

      2,500        2,697  

5.50%, 7/1/60

      2,500        2,805  

Private Colleges & Emory University Authority Revenue Refunding Bonds, Series B,

      

3.00%, 10/1/43

      3,000        2,581  
  

 

 

     

 

 

  
        37,065  
     

 

 

  

Hawaii - 1.5%

      

Hawaii State Airports System Revenue Bonds, Series A,

      

5.25%, 7/1/29

      4,000        4,431  

Hawaii State Highway Revenue Refunding Bonds, Series B,

      

5.00%, 1/1/27

      5,000        6,042  

Honolulu City & County G.O. Unlimited Bonds, Series D,

      

5.25%, 9/1/19(2)

      1,000        1,099  

University of Hawaii Revenue Bonds, Series A,

      

5.25%, 10/1/34

      5,000        5,400  
  

 

 

     

 

 

  
        16,972  
     

 

 

  

Illinois - 8.2%

      

Chicago Midway Airport Revenue Refunding Bonds, Second Lien Series B,

      

5.25%, 1/1/34

      2,500        2,763  

Chicago Midway Airport Revenue Refunding Bonds, Series B,

      

5.00%, 1/1/41

      3,500        3,840  

Chicago O’Hare International Airport General Revenue Refunding Bonds, Series B, Senior Lien,

      

5.00%, 1/1/41

      2,500        2,727  

Chicago O’Hare International Airport Revenue Bonds, Series D, Senior Lien,

      

1/1/47(4)

      10,000        10,859  

Chicago O’Hare International Airport Revenue Refunding Bonds, Series A, Passenger Facilities Charge,

      

5.00%, 1/1/23

      2,000        2,244  

Chicago O’Hare International Airport Revenue Refunding Bonds, Series B,

      

5.00%, 1/1/29

      1,500        1,685  

Cook County Community College District No. 504 Triton G.O. Unlimited Bonds, Alternative Revenue Source,

      

5.00%, 6/1/35

      5,000        5,631  

Illinois State Finance Authority Revenue Bonds, Northwestern University,

      

5.00%, 12/1/28

      1,500        1,830  

Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago,

      

5.25%, 3/1/40

      2,500        2,695  

Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, Prerefunded,

      

6.00%, 3/1/19(2)

      4,850        5,331  

Illinois State Finance Authority Revenue Bonds, Series A, DePaul University, Prerefunded,

      

6.13%, 4/1/21(2)

      5,000        5,889  

Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL Insured), Prerefunded,

      

5.25%, 2/1/17(2)

      5,000        5,019  

Illinois State Municipal Electric Agency Power Supply Revenue Refunding Bonds, Series A,

      

4.00%, 2/1/33

      4,750        4,864  

Illinois State Tax Supported Sports Facilities Authority Revenue Refunding Bonds (AGM Insured),

      

5.25%, 6/15/32

      5,500        6,021  

Illinois State Toll Highway Authority Revenue Bonds, Series A,

      

5.00%, 1/1/40

      5,000        5,478  

Illinois State Toll Highway Authority Revenue Bonds, Series B (BHAC-CR Insured), Prerefunded,

      

5.50%, 1/1/18(2)

      5,000        5,219  

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Illinois - 8.2% continued

      

Illinois State Toll Highway Authority Revenue Bonds, Series B, Prerefunded,

      

5.50%, 1/1/18(2)

    $ 10,500      $ 10,961  

Regional Transportation Authority Revenue Bonds, Series A (AGM Insured),

      

5.75%, 6/1/34

      3,400        4,310  

Springfield Water Revenue Bonds,

      

5.50%, 3/1/32

      2,300        2,399  

Will County G.O. Unlimited Bonds,

      

4.00%, 11/15/36

      2,905        2,964  

Will Grundy Etc. Counties Community College District No. 525 G.O. Unlimited Refunding Bonds, Alternative Revenue Source,

      

5.25%, 6/1/36

      2,500        2,794  
  

 

 

     

 

 

  
        95,523  
     

 

 

  

Indiana - 0.6%

      

Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority,

      

5.25%, 10/1/38

      3,150        3,530  

Indianapolis Gas Utility Revenue Refunding Bonds, Series B (NATL Insured),

      

3.50%, 6/1/18

      3,280        3,375  
  

 

 

     

 

 

  
        6,905  
     

 

 

  

Kansas - 0.5%

      

Kansas State Department of Transportation Highway Revenue Bonds,

      

5.00%, 9/1/35

      5,000        5,804  
  

 

 

     

 

 

  

Kentucky - 0.4%

      

Kentucky State Property & Buildings Commission Revenues Refunding Bonds, Series B, Project No. 112,

      

5.00%, 11/1/28

      2,500        2,881  

Louisville & Jefferson County Metropolitan Sewer District & Drain System Revenue Bonds, Series A,

      

5.00%, 5/15/34

      2,000        2,232  
  

 

 

     

 

 

  
        5,113  
     

 

 

  

Louisiana - 0.9%

      

East Baton Rouge Parish Sewer Commission Revenue Bonds, Series A, Prerefunded,

      

5.25%, 2/1/19(2)

      5,000        5,400  

Shreveport Water & Sewer Revenue Bonds, Series B (BAM Insured),

      

5.00%, 12/1/41

      5,000        5,492  
  

 

 

     

 

 

  
        10,892  
     

 

 

  

Maryland - 0.5%

      

Maryland State Health & Higher Educational Facilities Authority Revenue Refunding Bonds, The John Hopkins Health System,

      

5.00%, 5/15/37

      1,500        1,683  

Montgomery County Consolidated Public Improvement G.O. Unlimited Bonds, Series A,

      

4.00%, 7/1/31

      2,500        2,620  

Montgomery County G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 11/1/26

      1,000        1,200  
  

 

 

     

 

 

  
        5,503  
     

 

 

  

Massachusetts - 5.1%

      

Massachusetts State Bay Transportation Authority Sales Tax Revenue Refunding Bonds, Senior Series B,

      

5.00%, 7/1/29

      2,000        2,352  

Massachusetts State Bay Transportation Authority Sales TRB, Senior Series B,

      

5.25%, 7/1/33

      1,900        2,399  

Massachusetts State G.O. Limited Bonds, Series C, Consolidated Loan,

      

3.38%, 10/1/35

      500        475  

Massachusetts State G.O. Limited Refunding Bonds, Series A,

      

5.00%, 7/1/30

      6,000        7,027  

Massachusetts State G.O. Limited Refunding Bonds, Series B,

      

5.00%, 7/1/28

      1,000        1,240  

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series N, Massachusetts Institute of Technology, Prerefunded,

      

5.00%, 7/1/17(2)

      5,000        5,103  

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Massachusetts - 5.1% continued

      

Massachusetts State Housing Finance Agency Revenue Bonds, Series H,

      

4.40%, 12/1/46

    $ 1,000      $ 1,019  

Massachusetts State Port Authority Revenue Bonds, Series A,

      

5.00%, 7/1/40

      2,725        3,081  

Massachusetts State Transportation Fund Revenue Bonds, Series B,

      

4.00%, 6/1/45

      5,000        5,163  

Massachusetts State Transportation Fund Revenue Refunding Bonds, Series A,

      

5.00%, 6/1/26

      5,000        6,119  

Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 14, State Revolving Fund, Prerefunded,

      

5.00%, 8/1/19(2)

      10,000        10,898  

Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Subseries A, MWRA Program,

      

6.00%, 8/1/19

      3,000        3,344  

Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series C, Green Bond,

      

5.00%, 8/1/40

      5,000        5,747  

University of Massachusetts Building Authority Project Revenue Bonds, Senior Series 1,

      

5.00%, 11/1/44

      5,000        5,582  
  

 

 

     

 

 

  
        59,549  
     

 

 

  

Michigan - 2.7%

      

Grand Rapids Public Schools Building & Site G.O. Unlimited Refunding Bonds (AGM Insured),

      

5.00%, 5/1/25

      1,000        1,175  

Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I,

      

5.00%, 4/15/38

      2,000        2,216  

Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series I-A,

      

5.50%, 10/15/45

      2,565        2,855  

Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II-A,

      

5.38%, 10/15/36

      5,000        5,542  

Michigan State Building Authority Revenue Refunding Bonds, Series I,

      

5.00%, 4/15/36

      1,000        1,124  

Michigan State Finance Authority Revenue Refunding Bonds, Series H-1,

      

5.00%, 10/1/39

      3,200        3,469  

Michigan State Housing Development Authority Revenue Bonds, Series B,

      

3.50%, 12/1/41

      2,000        1,852  

Oakland University Revenue Bonds,

      

5.00%, 3/1/41

      4,000        4,434  

5.00%, 3/1/47

      3,500        3,865  

Wayne County Airport Authority Revenue Bonds, Series D,

      

5.00%, 12/1/45

      2,000        2,175  

Wayne County Airport Authority Revenue Refunding Bonds, Series G,

      

5.00%, 12/1/34

      2,625        2,893  
  

 

 

     

 

 

  
        31,600  
     

 

 

  

Minnesota - 0.9%

      

Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B,

      

5.00%, 8/1/17

      5,000        5,119  

Rochester Healthcare Facilities Revenue Refunding Bonds, Series B, Mayo Clinic,

      

5.00%, 11/15/36

      4,200        5,172  
  

 

 

     

 

 

  
        10,291  
     

 

 

  

Mississippi - 0.0%

      

Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured),

      

5.40%, 6/1/38

      10        10  
  

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Missouri - 0.4%

      

Metropolitan Saint Louis Sewer District Wastewater System Revenue Refunding & Improvement Bonds, Series B,

      

5.00%, 5/1/33

    $ 1,000      $ 1,163  

5.00%, 5/1/38

      3,000        3,439  
  

 

 

     

 

 

  
        4,602  
     

 

 

  

Nebraska - 1.1%

      

Lincoln Electric System Revenue Refunding Bonds,

      

5.00%, 9/1/34

      1,000        1,170  

Omaha Public Power District Electric Revenue Bonds, Series A, Prerefunded,

      

5.50%, 2/1/18(2)

      2,500        2,618  

Omaha Public Power District Electric Revenue Bonds, Series B,

      

5.00%, 2/1/34

      2,210        2,462  

Omaha Public Power District Electric Revenue Bonds, Series B, Prerefunded,

      

5.00%, 2/1/21(2)

      5,355        6,026  
  

 

 

     

 

 

  
        12,276  
     

 

 

  

Nevada - 1.0%

      

Clark County Airport System Revenue Bonds, Series C, Subordinate Lien (AGM Insured),

      

5.00%, 7/1/26

      1,670        1,798  

Clark County G.O. Limited Tax Bank Bonds,

      

5.00%, 6/1/38

      2,500        2,605  

Clark County School District G.O. Limited Refunding Bonds, Series E,

      

5.00%, 6/15/25

      2,000        2,381  

Las Vegas City Hall G.O. Limited Refunding Bonds, Series C,

      

5.00%, 9/1/34

      3,000        3,447  

Washoe County Highway Fuel TRB,

      

5.00%, 2/1/43

      1,750        1,846  
  

 

 

     

 

 

  
        12,077  
     

 

 

  

New Hampshire - 1.7%

      

New Hampshire State G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 3/1/27

      5,000        5,952  

New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, Prerefunded,

      

5.25%, 6/1/19(2)

      11,000        11,994  

New Hampshire State Municipal Bond Bank Revenue Refunding Bonds, Series D,

      

4.00%, 8/15/39

      1,500        1,540  
  

 

 

     

 

 

  
        19,486  
     

 

 

  

New Jersey - 0.8%

      

New Jersey State Educational Facilities Authority Revenue Refunding Bonds, Series B, Princeton University,

      

5.00%, 7/1/23

      3,235        3,836  

New Jersey State Turnpike Authority Growth & Income Securities Revenue Bonds, Series B (AMBAC Insured), Prerefunded,

      

5.15%, 1/1/17(5)

      5,000        5,001  
  

 

 

     

 

 

  
        8,837  
     

 

 

  

New Mexico - 0.3%

      

New Mexico State Hospital Equipment Loan Council Revenue Bonds, Presbyterian Healthcare Services,

      

5.00%, 8/1/44

      1,000        1,104  

New Mexico State Mortgage Finance Authority SFM Class 1 Revenue Bonds, Series C-2 (GNMA/FNMA/FHLMC Insured),

      

5.00%, 9/1/26

      1,800        1,872  
  

 

 

     

 

 

  
        2,976  
     

 

 

  

New York - 15.2%

      

Long Island Power Authority General Electric System Revenue Bonds, Series A, Prerefunded,

      

6.00%, 5/1/19(2)

      5,000        5,528  

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A, Prerefunded,

      

5.50%, 11/15/18(2)

      890        961  

5.50%, 11/15/18(2)

      9,110        9,834  

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

New York - 15.2% continued

      

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series B,

      

5.00%, 11/15/34

    $ 5,000      $ 5,409  

Metropolitan Transportation Authority Revenue Bonds, Series G,

      

5.25%, 11/15/26

      5,000        5,615  

Metropolitan Transportation Authority Revenue Refunding Bonds, Series D-1,

      

5.00%, 11/15/33

      3,000        3,402  

New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Second Generation Resolution, Fiscal 2017,

      

5.00%, 6/15/46

      5,000        5,681  

New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series A, Fiscal 2009, Prerefunded,

      

5.75%, 6/15/18(2)

      2,305        2,459  

New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series A, Fiscal 2009, Unrefunded Balance,

      

5.75%, 6/15/40

      7,695        8,132  

New York City Municipal Water Finance Authority Water & Sewer System Revenue Refunding Bonds, Series GG,

      

5.00%, 6/15/39

      2,000        2,255  

New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A-1,

      

5.00%, 5/1/38

      2,500        2,663  

New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B-1,

      

2.00%, 8/1/18

      2,500        2,532  

5.00%, 8/1/38

      2,500        2,864  

New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, Fiscal 2016,

      

5.00%, 8/1/35

      3,210        3,661  

5.00%, 8/1/37

      3,500        3,975  

New York City Transitional Finance Authority Subordinate Revenue Bonds, Subseries B-1,

      

5.00%, 11/1/34

      500        575  

New York G.O. Unlimited Bonds, Series I, Subseries 1-I,

      

5.00%, 3/1/28

      1,510        1,744  

New York G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 8/1/26

      5        6  

New York G.O. Unlimited Refunding Bonds, Series C,

      

5.00%, 8/1/28

      5,000        5,901  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, School Districts Financing Program (AGC State Aid Withholding), Prerefunded,

      

5.25%, 10/1/19(2)

      3,870        4,266  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, School Districts Financing Program (AGC State Aid Withholding), Unrefunded Balance,

      

5.25%, 10/1/23

      1,130        1,231  

New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series A-2, Columbia University,

      

5.00%, 10/1/46

      500        639  

New York State Dormitory Authority Personal Income Tax General Purpose Revenue Refunding Bonds, Series D,

      

5.00%, 2/15/25

      5,000        5,994  

New York State Dormitory Authority Personal Income TRB, Series B, Education,

      

5.75%, 3/15/36

      11,980        13,012  

New York State Dormitory Authority Sales TRB, Series A,

      

5.00%, 3/15/32

      5,000        5,906  

New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Municipal Water Revolving Funds,

      

5.00%, 6/15/41

      10,000        11,128  

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

New York - 15.2% continued

      

New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series B, Revolving Funds Pooled Financing Program, Escrowed to Maturity,

      

5.50%, 4/15/35

    $ 5,000      $ 6,673  

New York State Mortgage Agency Homeowner Mortgage Revenue Refunding Bonds, Series 196 (AMT),

      

3.70%, 10/1/37

      5,160        4,980  

New York State Thruway Authority Revenue Bonds, Series J,

      

5.00%, 1/1/27

      50        58  

New York State Thruway Authority Transportation Personal Income TRB, Series A, Prerefunded,

      

5.25%, 9/15/17(2)

      5,000        5,153  

New York State Urban Development Corp. Personal Income Tax Revenue Refunding Bonds, Series A,

      

5.00%, 3/15/27

      2,950        3,534  

New York State Urban Development Corp. Personal Income TRB, Series A-1,

      

5.00%, 3/15/43

      2,000        2,218  

Port Authority of New York & New Jersey Consolidated Revenue Refunding Bonds, Series 198,

      

5.00%, 11/15/46

      5,000        5,716  

5.25%, 11/15/56

      3,200        3,644  

Sales Tax Asset Receivable Corp. Revenue Refunding Bonds, Series A, Fiscal 2015,

      

5.00%, 10/15/28

      2,500        2,964  

5.00%, 10/15/29

      2,000        2,360  

Utility Debt Securitization Authority Revenue Refunding Bonds, Restructuring Bonds,

      

5.00%, 12/15/37

      5,000        5,759  

Utility Debt Securitization Authority Revenue Refunding Bonds, Series B, Restructuring Bonds,

      

5.00%, 6/15/20

      7,715        8,123  

5.00%, 6/15/24

      8,605        9,910  
  

 

 

     

 

 

  
        176,465  
     

 

 

  

North Carolina - 2.0%

      

Charlotte COPS, Series B,

      

3.00%, 6/1/22

      2,000        2,013  

North Carolina State Capital Facilities Finance Agency Revenue Refunding Bonds, Series B, Duke University,

      

5.00%, 10/1/40

      3,000        3,444  

5.00%, 7/1/42

      2,000        2,290  

North Carolina State Eastern Municipal Power Agency System Revenue Bonds, Series A, Escrowed to Maturity,

      

6.50%, 1/1/18

      2,655        2,798  

North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series B (NATL-IBC Insured), Escrowed to Maturity,

      

6.00%, 1/1/22

      6,015        7,187  

North Carolina State G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 6/1/27

      5,000        6,118  
  

 

 

     

 

 

  
        23,850  
     

 

 

  

Ohio - 0.7%

      

Northeast Regional Sewer District Revenue Refunding Bonds,

      

5.00%, 11/15/39

      945        1,067  

Ohio State Water Development Authority Revenue Bonds, Series A,

      

5.00%, 12/1/33

      5,900        6,915  
  

 

 

     

 

 

  
        7,982  
     

 

 

  

Oklahoma - 0.8%

      

Grand River Dam Authority Revenue Refunding Bonds, Series A,

      

4.00%, 6/1/33

      6,560        6,827  

Oklahoma State Capitol Improvement Authority State Highway Capital Improvement Revenue Bonds,

      

4.00%, 7/1/34

      2,000        2,074  

Oklahoma State Municipal Power Authority Revenue Refunding Bonds, Series A,

      

4.00%, 1/1/35

      355        362  
  

 

 

     

 

 

  
        9,263  
     

 

 

  

 

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Oregon - 0.3%

      

Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series A,

      

5.00%, 11/15/28

    $ 1,100      $ 1,306  

Oregon State Health & Science University Revenue Refunding Bonds, Series B,

      

5.00%, 7/1/38

      2,035        2,287  
  

 

 

     

 

 

  
        3,593  
     

 

 

  

Pennsylvania - 1.5%

      

Bethlehem Area School District G.O. Limited Refunding Bonds, Series A (AGM Insured State Aid Withholding),

      

5.00%, 2/1/25

      1,775        2,074  

Delaware County Regional Water Quality Control Authority Sewer Revenue Bonds,

      

5.00%, 5/1/32

      820        925  

5.00%, 5/1/35

      865        965  

Pennsylvania State G.O. Limited Refunding Bonds, Second Series,

      

5.00%, 1/15/27

      5,000        5,870  

Pennsylvania State Housing Finance Agency SFM Revenue Bonds, Series 118-B,

      

4.10%, 10/1/45

      570        573  

Pennsylvania State Turnpike Commission Revenue Bonds, Series B,

      

5.00%, 12/1/36

      3,350        3,710  

Philadelphia Water & Wastewater Revenue Refunding Bonds,

      

5.00%, 10/1/27

      3,000        3,576  
  

 

 

     

 

 

  
        17,693  
     

 

 

  

Rhode Island - 0.2%

      

Rhode Island State Turnpike & Bridge Authority Motor Fuel Tax Revenue Refunding Bonds, Series A,

      

5.00%, 10/1/40

      2,585        2,895  
  

 

 

     

 

 

  

South Carolina - 2.1%

      

Piedmont Municipal Power Agency Electric Revenue Bonds, Series 2004, Unrefunded Balance (BHAC-CR MBIA Insured),

      

5.38%, 1/1/25

      5,940        6,997  

South Carolina State Public Service Authority Obligations Revenue Bonds, Series A,

      

5.00%, 12/1/49

      2,000        2,171  

South Carolina State Public Service Authority Revenue Bonds, Series A, Prerefunded,

      

5.50%, 1/1/19(2)

      1,030        1,115  

5.50%, 1/1/19(2)

      11,970        12,963  

South Carolina State Public Service Authority Revenue Refunding Bonds, Series A,

      

5.00%, 12/1/36

      1,000        1,117  
  

 

 

     

 

 

  
        24,363  
     

 

 

  

Tennessee - 0.0%

      

Tennessee Housing Development Agency Residential Financing Program Revenue Bonds, Series 1B,

      

3.38%, 7/1/38

      155        145  

Tennessee Housing Development Agency Residential Financing Program Revenue Bonds, Series 2B,

      

3.95%, 1/1/38

      315        314  
  

 

 

     

 

 

  
        459  
     

 

 

  

Texas - 6.3%

      

Austin Electric Utility System Revenue Refunding Bonds, Series A,

      

5.00%, 11/15/28

      500        580  

Austin Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.),

      

4.00%, 8/1/36

      1,500        1,562  

Dallas Area Rapid Transit Sales Tax Revenue Refunding Bonds, Series A,

      

5.00%, 12/1/26

      2,500        2,960  

Dallas Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded,

      

6.38%, 2/15/18(2)

      5,000        5,294  

Dallas Independent School District G.O. Unlimited Bonds, Series A (PSF-Gtd.),

      

5.00%, 2/15/27

      8,720        10,349  

 

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Texas - 6.3% continued

      

Frisco Independent School District Building G.O. Unlimited Bonds, Series A (PSF-Gtd.),

      

6.00%, 8/15/38

    $ 5,000      $ 5,359  

Grand Prairie Independent School District G.O. Unlimited Refunding CABS, Prerefunded,

      

0.00%, 8/15/18(6)

      12,505        5,807  

Houston Community College G.O. Limited Refunding Bonds,

      

4.00%, 2/15/37

      1,000        1,032  

Houston Independent School District G.O. Limited Refunding Bonds, Series A (PSF-Gtd.),

      

5.00%, 2/15/18

      10,000        10,436  

Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, Prerefunded,

      

6.25%, 5/15/18(2)

      10        11  

6.25%, 5/15/18(2)

      9,990        10,681  

Mansfield Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),

      

5.00%, 2/15/25

      1,000        1,198  

Plano Independent School District School Building G.O. Unlimited Bonds (PSF-Gtd.),

      

5.00%, 2/15/25

      5,365        6,431  

Texas State Water Development Board Water Implementation Revenue Bonds,

      

5.00%, 10/15/41

      5,000        5,733  

Travis County G.O. Limited Refunding Bonds, Series A,

      

5.00%, 3/1/25

      2,000        2,395  

University of Texas Permanent University Fund Revenue Bonds, Series A,

      

5.00%, 7/1/33

      3,285        3,818  
  

 

 

     

 

 

  
        73,646  
     

 

 

  

Vermont - 0.2%

      

Vermont State Municipal Bond Bank Revenue Bonds, Series 1,

      

5.00%, 12/1/29

      1,660        1,983  
  

 

 

     

 

 

  

Virginia - 1.0%

      

Hampton Roads Sanitation District Wastewater Subordinate Revenue Refunding Bonds, Series A,

      

5.00%, 8/1/34

      4,000        4,680  

Norfolk G.O. Unlimited Bonds, Series A,

      

5.00%, 10/1/41

      500        574  

Richmond Public Utility Revenue Refunding Bonds,

      

5.00%, 1/15/33

      3,485        4,054  

Virginia State Public School Authority School Financing 1997 Resolution Revenue Refunding Bonds, Series C (State Aid Withholding),

      

5.00%, 8/1/17

      2,000        2,048  
  

 

 

     

 

 

  
        11,356  
     

 

 

  

Washington - 1.9%

      

Central Puget Sound Regional Transportation Authority Revenue Bonds, Series S-1, Green Bonds,

      

5.00%, 11/1/46

      2,000        2,540  

Grant County Public Utility District No. 2 Priest Rapids Hydro Electric Revenue Refunding Bonds, Series A,

      

5.00%, 1/1/41

      2,000        2,233  

King County Sewer Revenue Refunding Bonds, Series A,

      

4.00%, 7/1/35

      1,250        1,298  

Snohomish County Public Utility District No. 1 Electric System Revenue Bonds,

      

5.00%, 12/1/37

      3,000        3,384  

Washington State G.O. Unlimited Bonds, Series B & AT-7,

      

6.40%, 6/1/17

      1,430        1,462  

Washington State Health Care Facilities Authority Revenue Refunding Bonds, Providend Health & Services,

      

5.00%, 10/1/38

      5,000        5,494  

Washington State Housing Finance Commission Revenue Refunding Bonds, Single Family Program,

      

3.70%, 12/1/34

      250        250  

Washington State Motor Fuel Tax G.O. Unlimited Bonds, Series E,

      

5.00%, 2/1/38

      2,000        2,232  

 

TAX-EXEMPT FIXED INCOME FUNDS    12      NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

MUNICIPAL BONDS - 91.9% continued

      

Washington - 1.9% continued

      

Washington State University Revenue Refunding Bonds,

      

5.00%, 4/1/40

    $ 1,320      $ 1,479  

Washington State Various Purpose G.O. Unlimited Bonds, Series D,

      

5.00%, 2/1/34

      1,340        1,512  
  

 

 

     

 

 

  
        21,884  
     

 

 

  

Total Municipal Bonds

(Cost $1,057,116)

         1,070,074  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 2.2%

      

Northern Institutional Funds - U.S. Government Portfolio, 0.34%(7) (8)

      25,901,160      $ 25,901  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $25,901)

         25,901  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 4.6%

      

California State Department of Water Resources Central Valley Project Water System Variable Revenue Bonds, Series AU,

      

1.34%, 9/1/17(9)

    $ 5,000      $ 5,000  

Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series A, Yale University,

      

0.80%, 7/26/17(9)

      10,000        9,986  

Lehigh County IDA Revenue Refunding Bonds, Series A, Ppl Electric Utilities Corp.,

      

0.90%, 9/1/17(9)

      1,500        1,496  

Massachusetts State G.O. Limited RANS, Series A,

      

2.00%, 4/24/17

      15,000        15,052  

Massachusetts State G.O. Limited RANS, Series C,

      

2.00%, 6/26/17

      5,000        5,027  

Miami-Dade County School District G.O. Limited TANS,

      

5.00%, 2/23/17

      5,000        5,030  

New York City Transitional Finance Authority Future Tax Secured Subordinate Revenue Bonds, Fiscal 2016,

      

4.00%, 2/1/17

      3,045        3,053  

New York State Dormitory Authority Personal Income TRB, Series B, Group A,

      

5.00%, 2/15/17

      3,000        3,016  

Oregon State G.O. Limited TANS, Series A,

      

2.00%, 6/30/17

      2,500        2,514  

San Antonio Independent School District Variable G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.),

      

2.00%, 8/1/17(9)

      3,235        3,248  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $53,473)

         53,422  
     

 

 

  

Total Investments - 98.7%

(Cost $1,136,490)

         1,149,397  
     

 

 

  

Other Assets less Liabilities -1.3%

         15,053  
     

 

 

  

NET ASSETS - 100.0%

       $ 1,164,450  

 

(1) Step coupon bond. Rate as of December 31, 2016 is disclosed.
(2) Maturity date represents the prerefunded date.
(3) Zero coupon bond.
(4) When-Issued Security. Coupon rate is not in effect at December 31, 2016.
(5) Step coupon bond. Rate as of December 31, 2016 is disclosed. Maturity date represents the prerefunded date.
(6) Zero coupon bond. Maturity date represents the prerefunded date.
(7) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(8) 7-day yield as of December 31, 2016 is disclosed.
(9) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the puttable date.

Percentages shown are based on Net Assets.

 

NORTHERN FUNDS QUARTERLY REPORT    13    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

 

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AAA

      19.3 % 

AA

      54.2  

A

      21.8  

BBB

      0.1  

A1+ (Short Term)

      1.3  

Not rated

      1.0  

Cash Equivalents

      2.3  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are based on converting the available Moody’s, S&P Global, 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). The S&P Global’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.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF
INVESTMENTS		  

Airport

      5.9 % 

General

      13.9  

General Obligation

      19.2  

Higher Education

      7.8  

Power

      9.1  

School District

      7.4  

Transportation

      10.7  

Water

      15.0  

All other sectors less than 5%

      11.0  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Municipal Bonds(1)

    $ —        $ 1,070,074      $ —        $ 1,070,074  

Investment Companies

      25,901        —          —          25,901  

Short-Term Investments

      —          53,422        —          53,422  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 25,901      $ 1,123,496      $ —        $ 1,149,397  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,136,490  
  

 

 

  

Gross tax appreciation of investments

    $ 28,913  

Gross tax depreciation of investments

      (16,006 ) 
  

 

 

  

Net tax appreciation of investments

    $ 12,907  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE*

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Tax-Exempt Portfolio

    $ 62,340      $ 457,534      $ 519,874      $ 47      $ —    

Northern Institutional Funds - U.S. Government Portfolio

      —          234,994        209,093        29        25,901  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 62,340      $ 692,528      $ 728,967      $ 76      $ 25,901  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Effective October 7, 2016, the Northern Institutional Funds - Tax-Exempt Portfolio was liquidated and the Fund began investing its uninvested cash in the Northern Institutional Funds - U.S. Government Portfolio.

 

TAX-EXEMPT FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGC - Assured Guaranty Corporation

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BAM - Build America Mutual

BHAC - Berkshire Hathaway Assurance Corporation

CABS - Capital Appreciation Bonds

COPS - Certificates of Participation

CR - Custody Receipt

CWA - Clean Water Act

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

GNMA - Government National Mortgage Association

Gtd. - Guaranteed

IBC - Insured Bond Certificates

IDA - Industrial Development Authority

MBIA - Municipal Bond Insurance Association

MWRA - Massachusetts Water Resources Authority

NATL - National Public Finance Guarantee Corporation

PSF - Permanent School Fund

RANS - Revenue Anticipation Notes

SFM - Single Family Mortgage

TANS - Tax Anticipation Notes

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

 

NORTHERN FUNDS QUARTERLY REPORT    15    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

ACTIVE M EMERGING MARKETS EQUITY FUND†    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 88.7%(1)

      

Brazil - 5.1%

      

Ambev S.A. ADR

      144,713       $ 710   

Banco do Brasil S.A.*

      36,109         309   

Banco Santander Brasil S.A. ADR

      83,482         742   

BRF S.A. ADR

      5,492         81   

BTG Pactual Group*

      33,245         148   

CCR S.A.

      751,400         3,661   

Cosan S.A. Industria e Comercio

      128,800         1,507   

Cyrela Brazil Realty S.A. Empreendimentos e Participacoes

      52,200         164   

Fibria Celulose S.A.

      930,000         8,933   

Hypermarcas S.A.

      325,700         2,605   

Lojas Renner S.A.*

      361,300         2,560   

Mahle-Metal Leve S.A.

      47,868         305   

MRV Engenharia e Participacoes S.A.

      180,800         605   

Multiplus S.A.

      41,200         424   

Natura Cosmeticos S.A.

      886,621         6,238   

Petroleo Brasileiro S.A. ADR*

      1,211,345         12,247   

Qualicorp S.A.

      92,800         547   

Sao Martinho S.A.

      82,011         491   

Smiles S.A.

      36,900         505   

Vale S.A. ADR*

      29,491         225   
  

 

 

     

 

 

  
        43,007   
     

 

 

  

Chile - 0.2%

      

Cencosud S.A.

      297,331         834   

Enel Americas S.A. ADR

      113,501         932   
  

 

 

     

 

 

  
        1,766   
     

 

 

  

China - 13.6%

      

Agile Group Holdings Ltd.

      578,000         294   

Agricultural Bank of China Ltd., Class H

      2,559,076         1,045   

Air China Ltd., Class H

      1,202,000         767   

Alibaba Group Holding Ltd. ADR*

      153,412         13,471   

BAIC Motor Corp. Ltd., Class H(2)

     173,000         154   

Baidu, Inc. ADR*

      26,980         4,436   

Bank of China Ltd., Class H

      9,517,106         4,199   

Bank of Communications Co. Ltd., Class H

      372,000         266   

Beijing Capital International Airport Co. Ltd., Class H

      820,000         827   

China Cinda Asset Management Co. Ltd., Class H

      2,644,000         954   

China Construction Bank Corp., Class H

      16,843,569         12,904   

China Life Insurance Co. Ltd., Class H

      185,000         479   

China Longyuan Power Group Corp. Ltd., Class H

      539,000         417   

China Petroleum & Chemical Corp., Class H

      7,866,271         5,567   

China Railway Construction Corp. Ltd., Class H

      737,500         945   

China Telecom Corp. Ltd., Class H

      622,000         286   

Chongqing Rural Commercial Bank Co. Ltd., Class H

      789,446         463   

CIFI Holdings Group Co. Ltd.

      632,000         170   

CNOOC Ltd.

      499,342         616   

Ctrip.com International Ltd. ADR*

      35,199         1,408   

Datang International Power Generation Co. Ltd., Class H

      946,135         247   

Geely Automobile Holdings Ltd.

      855,000         813   

Great Wall Motor Co. Ltd., Class H

      851,500         790   

Guangzhou Automobile Group Co. Ltd., Class H

      10,317,421         12,347   

Guangzhou R&F Properties Co. Ltd., Class H

      425,709         514   

Huaneng Power International, Inc., Class H

      746,000         493   

Industrial & Commercial Bank of China Ltd., Class H

      3,857,141         2,300   

JD.com, Inc. ADR*

      15,336         390   

Kaisa Group Holdings Ltd.*

      279,000         4   

KWG Property Holding Ltd.

      272,500         154   

Longfor Properties Co. Ltd.

      453,000         573   

NetEase, Inc. ADR

      2,547         548   

People’s Insurance Co. Group of China (The) Ltd., Class H

      2,244,000         882   

PetroChina Co. Ltd., Class H

      386,000         285   

PICC Property & Casualty Co. Ltd., Class H

      714,000         1,102   

Ping An Insurance Group Co. of China Ltd., Class H

      1,545,000         7,687   

Sinopec Engineering Group Co. Ltd., Class H

      487,000         406   

Sinopec Shanghai Petrochemical Co. Ltd., Class H

      852,000         461   

Sinopharm Group Co. Ltd., Class H

      875,200         3,591   

Sunny Optical Technology Group Co. Ltd.

      209,000         911   

Tencent Holdings Ltd.

      707,600         17,174   

Tianhe Chemicals Group Ltd.* (2) (3)

      17,672,000         2,666   

Tianneng Power International Ltd.

      846,000         775   

 

NORTHERN FUNDS QUARTERLY REPORT    1    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

ACTIVE M EMERGING MARKETS EQUITY FUND† continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 88.7%(1) continued

      

China - 13.6% continued

      

TravelSky Technology Ltd., Class H

      453,617       $ 950   

Want Want China Holdings Ltd.

      7,461,000         4,768   

Weichai Power Co. Ltd., Class H

      39,660         61   

Xtep International Holdings Ltd.

      375,000         157   

Zhuzhou CRRC Times Electric Co. Ltd.

      625,500         3,162   

Zijin Mining Group Co. Ltd., Class H

      572,000         181   
  

 

 

     

 

 

  
        114,060   
     

 

 

  

Colombia - 0.1%

      

Almacenes Exito S.A.

      76,466         380   
  

 

 

     

 

 

  

Czech Republic - 0.8%

      

CEZ A.S.

      9,236         154   

Komercni banka A.S.

      185,749         6,397   
  

 

 

     

 

 

  
        6,551   
     

 

 

  

Egypt - 1.4%

      

Commercial International Bank Egypt S.A.E.

      2,747,635         11,075   

Commercial International Bank Egypt S.A.E. GDR (Registered)

      101,010         369   
  

 

 

     

 

 

  
        11,444   
     

 

 

  

Hong Kong - 4.7%

      

AIA Group Ltd.

      737,700         4,128   

Beijing Enterprises Holdings Ltd.

      572,500         2,698   

China Lumena New Materials Corp.* (4)

     5,884,000         —     

China Mobile Ltd.

      2,393,585         25,099   

China Overseas Land & Investment Ltd.

      1,257,000         3,315   

China Power International Development Ltd.

      755,000         273   

Sands China Ltd.

      630,800         2,713   

Skyworth Digital Holdings Ltd.

      1,024,000         582   

Sun Art Retail Group Ltd.

      483,000         423   
  

 

 

     

 

 

  
        39,231   
     

 

 

  

Hungary - 0.1%

      

Magyar Telekom Telecommunications PLC

      90,358         153   

Richter Gedeon Nyrt.

      45,585         962   
  

 

 

     

 

 

  
        1,115   
     

 

 

  

India - 6.6%

      

Apollo Tyres Ltd.

      54,129         147   

Axis Bank Ltd.

      27,690         183   

Bharat Petroleum Corp. Ltd.

      94,856         887   

Bharti Infratel Ltd.

      484,500         2,449   

Grasim Industries Ltd.

      47,481         601   

HDFC Bank Ltd.

      240,059         4,266   

Hindustan Petroleum Corp. Ltd.

      126,435         819   

Hindustan Zinc Ltd.

      137,414         514   

Housing Development Finance Corp. Ltd.

      42,890         797   

ICICI Bank Ltd.

      653,684         2,451   

ICICI Bank Ltd. ADR

      307,100         2,300   

IFCI Ltd.

      1,715,777         687   

Indian Oil Corp. Ltd.

      180,019         860   

Infosys Ltd. ADR

      54,323         806   

ITC Ltd.

      816,217         2,900   

Maruti Suzuki India Ltd.

      57,423         4,473   

NHPC Ltd.

      1,459,850         567   

Power Finance Corp. Ltd.

      521,723         937   

Reliance Industries Ltd.

      43,032         685   

Rural Electrification Corp. Ltd.

      401,552         735   

Sun Pharmaceutical Industries Ltd.

      11,682         108   

Tata Consultancy Services Ltd.

      452,947         15,745   

Tata Motors Ltd. ADR

      8,858         305   

UltraTech Cement Ltd.

      53,051         2,531   

UPL Ltd.

      389,353         3,697   

Vedanta Ltd.

      467,042         1,480   

Zee Entertainment Enterprises Ltd.

      550,344         3,664   
  

 

 

     

 

 

  
        55,594   
     

 

 

  

Indonesia - 1.7%

      

Adaro Energy Tbk PT

      5,038,500         632   

Astra International Tbk PT

      323,300         198   

Bank Central Asia Tbk PT

      212,600         244   

Bank Rakyat Indonesia Persero Tbk PT

      5,437,800         4,716   

Indofood CBP Sukses Makmur Tbk PT

      356,900         227   

Indofood Sukses Makmur Tbk PT

      3,648,800         2,144   

Matahari Department Store Tbk PT

      1,715,600         1,915   

Tambang Batubara Bukit Asam Persero Tbk PT

      414,400         383   

Telekomunikasi Indonesia Persero Tbk PT

      13,567,115         3,991   
  

 

 

     

 

 

  
        14,450   
     

 

 

  

Malaysia - 1.0%

      

AirAsia Bhd.

      1,616,700         824   

AMMB Holdings Bhd.

      228,500         219   

Berjaya Sports Toto Bhd.

      148,898         98   

 

ACTIVE M/MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 88.7%(1) continued

      

Malaysia - 1.0% continued

      

British American Tobacco Malaysia Bhd.

      19,198       $ 191   

CIMB Group Holdings Bhd.

      1,320,300         1,327   

Genting Malaysia Bhd.

      1,715,000         1,749   

MISC Bhd.

      158,300         260   

Public Bank Bhd.

      148,000         650   

Sunway Bhd.

      222,798         150   

Tenaga Nasional Bhd.

      780,100         2,413   

Westports Holdings Bhd.

      507,800         486   
  

 

 

     

 

 

  
        8,367   
     

 

 

  

Mexico - 4.1%

      

Alfa S.A.B. de C.V., Series A

      5,067,589         6,273   

Alpek S.A.B. de C.V.

      55,600         66   

America Movil S.A.B. de C.V., Series L

      744,791         468   

America Movil S.A.B. de C.V., Series L ADR

      822,382         10,337   

Cemex S.A.B. de C.V. ADR (Participation Certificate)*

      394,827         3,171   

Coca-Cola Femsa S.A.B. de C.V. ADR

      12,246         778   

Fomento Economico Mexicano S.A.B. de C.V. ADR

      43,672         3,328   

Grupo Bimbo S.A.B. de C.V., Series A

      1,702,000         3,849   

Grupo Financiero Banorte S.A.B. de C.V., Series O

      903,900         4,452   

Grupo Televisa S.A.B. ADR

      7,952         166   

Industrias Bachoco S.A.B. de C.V. ADR

      3,657         179   

Kimberly-Clark de Mexico S.A.B. de C.V., Series A

      136,200         245   

Megacable Holdings S.A.B. de C.V.

      69,839         236   

Nemak S.A.B. de C.V.(2)

     152,400         137   

Telesites S.A.B. de C.V.*

      568,069         309   

Wal-Mart de Mexico S.A.B. de C.V.

      78,700         141   
  

 

 

     

 

 

  
        34,135   
     

 

 

  

Peru - 1.0%

      

Credicorp Ltd.

      31,064         4,904   

Southern Copper Corp.

      98,300         3,140   
  

 

 

     

 

 

  
        8,044   
     

 

 

  

Philippines - 0.9%

      

Aboitiz Equity Ventures, Inc.

      187,490         267   

Cebu Air, Inc.

      128,300         240   

Globe Telecom, Inc.

      4,820         146   

Metro Pacific Investments Corp.

      1,007,100         135   

Metropolitan Bank & Trust Co.

      2,440,980         3,568   

SM Investments Corp.

      227,371         2,991   

Vista Land & Lifescapes, Inc.

      1,503,700         150   
  

 

 

     

 

 

  
        7,497   
     

 

 

  

Poland - 0.7%

      

Energa S.A.

      135,432         295   

KGHM Polska Miedz S.A.

      14,041         310   

Orange Polska S.A.

      214,637         282   

PGE Polska Grupa Energetyczna S.A.

      41,814         104   

Polski Koncern Naftowy ORLEN S.A.

      61,967         1,262   

Powszechna Kasa Oszczednosci Bank Polski S.A.*

      93,340         628   

Powszechny Zaklad Ubezpieczen S.A.

      412,772         3,276   
  

 

 

     

 

 

  
        6,157   
     

 

 

  

Qatar - 0.1%

      

Ooredoo QSC

      11,449         320   

United Development Co. QSC

      46,699         265   
  

 

 

     

 

 

  
        585   
     

 

 

  

Russia - 4.4%

      

Gazprom PJSC ADR

      437,649         2,207   

Lukoil PJSC ADR

      140,899         7,891   

Magnit PJSC

      16,859         3,022   

Magnit PJSC GDR

      3,590         158   

MMC Norilsk Nickel PJSC ADR

      274,248         4,592   

Mobile TeleSystems PJSC ADR

      40,141         366   

Novatek PJSC GDR (Registered)

      25,575         3,313   

Novolipetsk Steel PJSC GDR

      46,013         855   

Ros Agro PLC GDR (Registered)

      26,329         350   

Sberbank of Russia PJSC

      1,165,200         3,288   

Sberbank of Russia PJSC ADR

      444,614         5,134   

Severstal PJSC GDR (Registered)

      88,575         1,343   

Sistema PJSC FC GDR (Registered)

      72,259         650   

Surgutneftegas OJSC ADR

      66,557         336   

Yandex N.V., Class A*

      183,000         3,684   
  

 

 

     

 

 

  
        37,189   
     

 

 

  

South Africa - 5.9%

      

African Rainbow Minerals Ltd.

      75,100         535   

AngloGold Ashanti Ltd.*

      196,473         2,105   

AVI Ltd.

      123,034         817   

Barloworld Ltd.

      955,018         8,194   

DataTec Ltd.

      47,513         171   

FirstRand Ltd.

      1,316,290         5,062   

 

NORTHERN FUNDS QUARTERLY REPORT    3    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

ACTIVE M EMERGING MARKETS EQUITY FUND† continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 88.7%(1) continued

      

South Africa - 5.9% continued

      

Harmony Gold Mining Co. Ltd. ADR

      106,994       $ 236   

Kumba Iron Ore Ltd.*

      63,232         729   

Liberty Holdings Ltd.

      25,990         209   

Mondi Ltd.

      13,019         265   

MTN Group Ltd.

      40,852         373   

Murray & Roberts Holdings Ltd.

      266,836         224   

Naspers Ltd., Class N

      62,037         9,039   

Nedbank Group Ltd.

      46,402         799   

Sappi Ltd.*

      42,809         279   

Sasol Ltd.

      11,036         318   

Standard Bank Group Ltd.

      769,903         8,518   

Steinhoff International Holdings N.V.

      61,760         319   

Telkom S.A. SOC Ltd.

      52,265         281   

Truworths International Ltd.

      1,872,348         10,806   

Wilson Bayly Holmes-Ovcon Ltd.

      29,065         325   
  

 

 

     

 

 

  
        49,604   
     

 

 

  

South Korea - 15.0%

      

Amorepacific Corp.

      3,888         1,034   

BGF retail Co. Ltd.

      23,126         1,561   

DGB Financial Group, Inc.

      94,515         764   

Hana Financial Group, Inc.

      44,273         1,143   

Hankook Tire Co. Ltd.

      6,725         323   

Hanwha Chemical Corp.

      10,738         219   

Hanwha Corp.

      7,656         222   

Hyosung Corp.

      6,036         726   

Hyundai Development Co. - Engineering & Construction

      27,308         1,014   

Hyundai Mobis Co. Ltd.

      18,652         4,068   

Hyundai Motor Co.

      94,885         11,400   

KB Financial Group, Inc.

      7,284         257   

KB Insurance Co. Ltd.

      20,495         443   

Korea Aerospace Industries Ltd.

      50,841         2,813   

Korea Electric Power Corp.

      19,104         698   

Korea Gas Corp.

      6,730         270   

KT&G Corp.

      11,272         942   

LG Chem Ltd.

      20,938         4,515   

LG Display Co. Ltd.

      38,610         997   

Lotte Chemical Corp.

      3,087         938   

LS Corp.

      11,652         571   

Meritz Fire & Marine Insurance Co. Ltd.

      13,657         173   

NAVER Corp.

      4,744         3,038   

Poongsan Corp.

      22,264         743   

POSCO

      49,021         10,362   

Posco Daewoo Corp.

      38,312         854   

Samsung Electronics Co. Ltd.

      34,091         50,371   

Shinhan Financial Group Co. Ltd.

      451,239         16,918   

SK Hynix, Inc.

      148,362         5,423   

SK Innovation Co. Ltd.

      7,994         964   

Tongyang Life Insurance Co. Ltd.

      59,786         628   

Woori Bank*

      104,415         1,100   
  

 

 

     

 

 

  
        125,492   
     

 

 

  

Taiwan - 12.7%

      

AU Optronics Corp.

      2,605,988         946   

Catcher Technology Co. Ltd.

      1,090,000         7,487   

Cathay Financial Holding Co. Ltd.

      2,065,000         3,092   

Chailease Holding Co. Ltd.

      99,000         169   

Cheng Shin Rubber Industry Co. Ltd.

      348,000         654   

Chunghwa Telecom Co. Ltd.

      71,000         224   

CTBC Financial Holding Co. Ltd.

      4,822,000         2,634   

Ennoconn Corp.

      113,000         1,437   

Farglory Land Development Co. Ltd.

      298,251         342   

Formosa Chemicals & Fibre Corp.

      249,000         741   

Formosa Plastics Corp.

      173,000         477   

Foxconn Technology Co. Ltd.

      463,321         1,215   

Fubon Financial Holding Co. Ltd.

      989,000         1,567   

Highwealth Construction Corp.

      402,000         565   

Hon Hai Precision Industry Co. Ltd.

      6,067,085         15,717   

Innolux Corp.

      670,820         240   

Inventec Corp.

      1,206,000         821   

King’s Town Bank Co. Ltd.

      268,293         234   

Kinsus Interconnect Technology Corp.

      207,000         454   

Largan Precision Co. Ltd.

      30,400         3,538   

Lite-On Technology Corp.

      672,465         1,005   

MediaTek, Inc.

      21,000         140   

Micro-Star International Co. Ltd.

      264,000         597   

Nan Ya Plastics Corp.

      118,000         260   

Phison Electronics Corp.

      27,000         213   

Powertech Technology, Inc.

      325,676         876   

President Chain Store Corp.

      388,000         2,775   

Taiwan Semiconductor Manufacturing Co. Ltd.

      6,447,542         36,107   

Taiwan Semiconductor Manufacturing Co. Ltd. ADR

      572,700         16,465   

Uni-President Enterprises Corp.

      618,000         1,020   

Vanguard International Semiconductor Corp.

      127,000         220   

 

ACTIVE M/MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 88.7%(1) continued

      

Taiwan - 12.7% continued

      

Wistron Corp.

      735,000       $ 566   

Yageo Corp.

      1,432,009         2,603   

Yuanta Financial Holding Co. Ltd.

      1,272,000         472   
  

 

 

     

 

 

  
        105,873   
     

 

 

  

Thailand - 2.7%

      

Airports of Thailand PCL NVDR

      38,200         424   

Bangkok Bank PCL NVDR

      33,800         150   

CP ALL PCL NVDR

      548,900         957   

Kasikornbank PCL NVDR

      708,600         3,499   

Krung Thai Bank PCL (Registered)

      1,036,592         512   

Krung Thai Bank PCL NVDR

      861,700         425   

PTT PCL NVDR

      412,900         4,278   

Siam Commercial Bank (The) PCL (Registered)

      2,118,600         9,022   

Siam Commercial Bank (The) PCL NVDR

      147,900         627   

Thai Union Group PCL NVDR

      1,378,800         809   

Thanachart Capital PCL NVDR

      616,063         755   

Tisco Financial Group PCL NVDR

      534,300         897   
  

 

 

     

 

 

  
        22,355   
     

 

 

  

Turkey - 0.8%

      

Arcelik A.S.

      112,357         675   

Eregli Demir ve Celik Fabrikalari T.A.S.

      577,614         839   

KOC Holding A.S.

      648,120         2,534   

Petkim Petrokimya Holding A.S.

      224,484         235   

Tekfen Holding A.S.

      95,541         175   

Turkiye Is Bankasi, Class C

      612,284         900   

Turkiye Sise ve Cam Fabrikalari A.S.

      280,916         305   

Ulker Biskuvi Sanayi A.S.

      254,262         1,165   
  

 

 

     

 

 

  
        6,828   
     

 

 

  

United Arab Emirates - 2.1%

      

Abu Dhabi Commercial Bank PJSC

      355,749         667   

Air Arabia PJSC

      428,353         155   

Aldar Properties PJSC

      602,361         431   

Dubai Investments PJSC

      1,263,415         819   

Dubai Islamic Bank PJSC

      649,440         985   

Emaar Properties PJSC

      7,331,495         14,195   
  

 

 

     

 

 

  
        17,252   
     

 

 

  

United Kingdom - 1.4%

      

Anglo American PLC*

      833,565         11,729   
  

 

 

     

 

 

  

United States - 1.6%

      

Copa Holdings S.A., Class A

      29,670         2,695   

Tenaris S.A. ADR

      308,455         11,015   
  

 

 

     

 

 

  
        13,710   
     

 

 

  

Total Common Stocks

(Cost $653,182)

         742,415   
     

 

 

  

PARTICIPATION (EQUITY LINKED) NOTES - 0.6%

      

China - 0.6%

      

Inner Mongolia Yili Industrial Group Co. Ltd., Issued by JPMorgan Structured Products, Expires 10/24/19(2)

     885,900         2,244   

Shanghai International Airport Co. Ltd., Issued by JPMorgan Structured Products, Expires 11/18/19(2)

     695,000         2,652   
  

 

 

     

 

 

  
        4,896   
     

 

 

  

Total Participation (Equity Linked) Notes

(Cost $4,930)

         4,896   
     

 

 

  

PREFERRED STOCKS - 6.6%(1)

     

Brazil - 5.8%

      

Banco Bradesco S.A. ADR*

      114,187         995   

Banco do Estado do Rio Grande do Sul S.A., Class B*

      135,000         426   

Cia Energetica de Minas Gerais S.A. ADR

      186,691         426   

Gerdau S.A. ADR

      1,126,600         3,538   

Itau Unibanco Holding S.A.

      122,461         1,263   

Itau Unibanco Holding S.A. ADR

      1,916,764         19,704   

Itausa - Investimentos Itau S.A.

      97,800         248   

Lojas Americanas S.A.

      1,334,283         6,933   

Petroleo Brasileiro S.A.*

      141,356         623   

Petroleo Brasileiro S.A. ADR*

      329,441         2,902   

Vale S.A.*

      1,679,599         11,586   

Vale S.A. ADR*

      36,440         251   
  

 

 

     

 

 

  
        48,895   
     

 

 

  

Chile - 0.4%

      

Embotelladora Andina S.A., Class B ADR

      6,719         151   

Sociedad Quimica y Minera de Chile S.A. ADR

      106,200         3,042   
  

 

 

     

 

 

  
        3,193   
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    5    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

ACTIVE M EMERGING MARKETS EQUITY FUND† continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

PREFERRED STOCKS - 6.6%(1) continued

      

Colombia - 0.3%

      

Banco Davivienda S.A.

      19,360       $ 193   

Bancolombia S.A. ADR

      64,300         2,359   
  

 

 

     

 

 

  
        2,552   
     

 

 

  

South Korea - 0.1%

      

Samsung Electronics Co. Ltd.

      789         928   
  

 

 

     

 

 

  

Total Preferred Stocks

(Cost $51,773)

         55,568   
     

 

 

  

INVESTMENT COMPANIES - 3.7%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(5) (6)

      30,786,168         30,786   
  

 

 

     

 

 

  

Total Investment Companies

(Cost $30,786)

         30,786   
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.1%

      

U.S. Treasury Bill,

      

0.36%, 3/2/17(7) (8)

    $ 1,055       $ 1,054   
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $1,054)

         1,054   
     

 

 

  

Total Investments - 99.7%

(Cost $741,725)

         834,719   
     

 

 

  

Other Assets less Liabilities - 0.3%

         2,313   
     

 

 

  

NET ASSETS - 100.0%

       $ 837,032   
     

 

 

  

 

† Formerly known as the Multi-Manager Emerging Markets Equity Fund.
(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) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(3) Restricted security that has been deemed illiquid. At December 31, 2016, the value of this restricted illiquid security amounted to approximately $2,666,000 or 0.3% of net assets. Additional information on this restricted illiquid security is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

Tianhe Chemicals Group Ltd.

      6/13/14-12/15/14       $ 4,079   

 

(4) Level 3 asset that is worthless, bankrupt or has been delisted.
(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(6) 7-day yield as of December 31, 2016 is disclosed.
(7) Discount rate at the time of purchase.
(8) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Mini MSCI Emerging Markets Index

      458       $ 19,669         Long         3/17       $ 220   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      10.2 % 

Consumer Staples

      5.6   

Energy

      7.4   

Financials

      23.5   

Health Care

      1.0   

Industrials

      5.9   

Information Technology

      26.1   

Materials

      11.1   

Real Estate

      2.6   

Telecommunication Services

      5.7   

Utilities

      0.9   
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

United States Dollar

      20.9 % 

Hong Kong Dollar

      16.6   

Korean Won

      15.8   

Taiwan Dollar

      11.1   

South African Rand

      7.6   

Indian Rupee

      6.5   

Brazilian Real

      6.2   

All other currencies less than 5%

      15.3   
  

 

 

  

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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

            

Brazil

    $ 14,005       $ 29,002       $ —         $ 43,007   

Chile

      1,766         —           —           1,766   

China

      20,253         93,807         —           114,060   

Egypt

      11,075         369         —           11,444   

Hong Kong

      —           39,231         —           39,231   

India

      3,411         52,183         —           55,594   

Mexico

      34,135         —           —           34,135   

Peru

      8,044         —           —           8,044   

Poland

      4,198         1,959         —           6,157   

Russia

      7,072         30,117         —           37,189   

South Africa

      236         49,368         —           49,604   

Taiwan

      16,465         89,408         —           105,873   

United Arab Emirates

      2,235         15,017         —           17,252   

United States

      13,710         —           —           13,710   

All Other Countries(1)

     —           205,349         —           205,349   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      136,605         605,810         —           742,415   
  

 

 

     

 

 

     

 

 

     

 

 

  

Participation (Equity Linked) Notes(1)

     —           4,896         —           4,896   

Preferred Stocks

            

Brazil

      27,816         21,079         —           48,895   

Chile

      3,193         —           —           3,193   

Colombia

      2,359         193         —           2,552   

South Korea

      —           928         —           928   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Preferred Stocks

      33,368         22,200         —           55,568   
  

 

 

     

 

 

     

 

 

     

 

 

  

Investment Companies

      30,786         —           —           30,786   

Short-Term Investments

      —           1,054         —           1,054   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 200,759       $ 633,960       $ —         $ 834,719   
  

 

 

     

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                            

Assets

            

Future Contracts

    $ 220       $ —         $ —         $ 220   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, The Fund had transfers from Level 1 to Level 2 as disclosed below:

Transfers from Level 1 to Level 2

 

     Value
(000S)		     

Reason

Common Stocks

      

Brazil

    $ 20,508       Valuations at official close price with foreign fair value adjustment

Preferred Stocks

      

Brazil

      20,653       Valuations at official close price with foreign fair value adjustment
  

 

 

     

Total

    $ 41,161      
  

 

 

     

At December 31, 2016, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

 

     Value
(000S)		     

Reason

Common Stocks

      

Egypt

    $ 11,075       Valuations at official close price

Poland

      295       Valuations at official close price

United Arab Emirates

      985       Valuations at official close price
  

 

 

     

Total

    $ 12,355      
  

 

 

     

 

NORTHERN FUNDS QUARTERLY REPORT    7    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

ACTIVE M EMERGING MARKETS EQUITY FUND† continued    DECEMBER 31, 2016 (UNAUDITED)

 

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

 

     BALANCE
AS OF
3/31/16
(000S)		      REALIZED
GAINS
(LOSSES)
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     PURCHASES
(000S)		      SALES
(000S)		      TRANSFERS
INTO
LEVEL 3
(000S)		      TRANSFERS
OUT OF
LEVEL 3
(000S)		      BALANCE
AS OF
12/31/16
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD
AT 12/31/16
(000S)		  

Common Stocks

                          

Russia

    $ 83       $ —         $ (83 )    $ —         $ —         $ —         $ —         $ —         $ —     
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 770,262   
  

 

 

  

Gross tax appreciation of investments

    $ 119,828   

Gross tax depreciation of investments

      (55,371 ) 
  

 

 

  

Net tax appreciation of investments

    $ 64,457   
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 12,719       $ 450,804       $ 432,737       $ 42       $ 30,786   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

ACTIVE M INTERNATIONAL EQUITY FUND†    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.2%(1)

     

Australia - 3.8%

      

Amaysim Australia Ltd.

      632,470      $ 907  

Aristocrat Leisure Ltd.

      116,311        1,298  

Aveo Group

      454,897        1,099  

Beach Energy Ltd.

      4,046,193        2,474  

BHP Billiton PLC

      274,535        4,341  

BlueScope Steel Ltd.

      366,887        2,441  

BT Investment Management Ltd.

      154,845        1,186  

Charter Hall Group

      486,569        1,669  

Cleanaway Waste Management Ltd.

      1,209,542        1,072  

CSL Ltd.

      177,754        12,841  

CSR Ltd.

      720,132        2,399  

JB Hi-Fi Ltd.

      63,230        1,276  

Mineral Resources Ltd.

      151,448        1,318  

OceanaGold Corp.

      825,749        2,405  

oOh!media Ltd.

      305,907        1,005  

OZ Minerals Ltd.

      439,338        2,492  

Retail Food Group Ltd.

      245,598        1,241  

Westfield Corp.

      325,568        2,210  
  

 

 

     

 

 

  
        43,674  
     

 

 

  

Austria - 0.2%

      

Porr A.G.

      40,324        1,652  
  

 

 

     

 

 

  

Belgium - 0.2%

      

Melexis N.V.

      16,755        1,122  

Warehouses De Pauw - CVA

      17,218        1,539  
  

 

 

     

 

 

  
        2,661  
     

 

 

  

Brazil - 0.9%

      

Ambev S.A.

      741,160        3,656  

Ambev S.A. ADR

      1,359,295        6,674  
  

 

 

     

 

 

  
        10,330  
     

 

 

  

Canada - 4.3%

      

Air Canada*

      183,062        1,864  

Algonquin Power & Utilities Corp.

      167,904        1,424  

Canadian Apartment Properties REIT

      51,293        1,198  

Canadian Pacific Railway Ltd.

      91,961        13,129  

Celestica, Inc.*

      121,049        1,434  

Cogeco Communications, Inc.

      20,686        1,020  

Constellation Software, Inc.

      20,492        9,312  

Encana Corp.

      213,206        2,503  

Enerflex Ltd.

      83,950        1,066  

Entertainment One Ltd.

      504,643        1,430  

Gildan Activewear, Inc.

      21,100        536  

Gran Tierra Energy, Inc.*

      396,907        1,200  

Interfor Corp.*

      106,616        1,193  

Laurentian Bank of Canada

      35,462        1,525  

Manulife Financial Corp.

      46,000        819  

Painted Pony Petroleum Ltd.*

      215,829        1,482  

Parex Resources, Inc.*

      232,766        2,930  

Premium Brands Holdings Corp.

      23,005        1,182  

SEMAFO, Inc.*

      541,526        1,783  

Tamarack Valley Energy Ltd.*

      403,904        1,041  

Tricon Capital Group, Inc.

      148,683        1,048  
  

 

 

     

 

 

  
        49,119  
     

 

 

  

China - 2.5%

      

Baidu, Inc. ADR*

      24,100        3,962  

CNOOC Ltd.

      3,747,000        4,626  

Ctrip.com International Ltd. ADR*

      230,809        9,232  

Tencent Holdings Ltd.

      444,605        10,791  
  

 

 

     

 

 

  
        28,611  
     

 

 

  

Denmark - 2.9%

      

Carlsberg A/S, Class B

      46,830        4,041  

Chr Hansen Holding A/S

      139,532        7,718  

Coloplast A/S, Class B

      138,368        9,311  

GN Store Nord A/S

      66,914        1,386  

Jyske Bank A/S (Registered)

      21,736        1,034  

NKT Holding A/S

      25,548        1,805  

Novozymes A/S, Class B

      214,244        7,374  
  

 

 

     

 

 

  
        32,669  
     

 

 

  

Finland - 0.5%

      

Cramo OYJ

      102,368        2,563  

Sponda OYJ

      453,179        2,087  

Valmet OYJ

      106,365        1,564  
  

 

 

     

 

 

  
        6,214  
     

 

 

  

France - 11.4%

      

Airbus Group S.E.

      108,506        7,161  

Alten S.A.

      32,326        2,270  

Amundi S.A.(2)

     41,153        2,153  

Arkema S.A.

      20,759        2,028  

Atos S.E.

      30,754        3,244  

AXA S.A.

      296,738        7,488  

BNP Paribas S.A.

      55,965        3,565  

Carrefour S.A.

      165,046        3,971  

Criteo S.A. ADR*

      27,890        1,146  

Edenred

      44,439        881  

Eiffage S.A.

      27,030        1,884  

 

NORTHERN FUNDS QUARTERLY REPORT    1    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

ACTIVE M INTERNATIONAL EQUITY FUND† continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.2%(1) continued

 

France - 11.4% continued

      

Elior Group(2)

     57,355      $ 1,310  

Engie S.A.

      819,754        10,443  

Essilor International S.A.

      74,956        8,468  

Hermes International

      18,579        7,619  

Ipsen S.A.

      32,362        2,340  

Legrand S.A.

      16,954        960  

LVMH Moet Hennessy Louis Vuitton S.E.

      51,285        9,779  

Mercialys S.A.

      57,869        1,173  

Nexity S.A.*

      42,213        1,975  

Orange S.A.

      292,316        4,436  

Sanofi

      50,657        4,097  

Schneider Electric S.E.

      95,421        6,630  

SCOR S.E.

      36,897        1,275  

SEB S.A.

      8,433        1,143  

Societe Generale S.A.

      102,254        5,020  

Technip S.A.

      14,161        1,005  

Teleperformance

      43,229        4,336  

TOTAL S.A.

      152,006        7,759  

TOTAL S.A. ADR

      134,532        6,857  

Valeo S.A.

      42,304        2,431  

Vivendi S.A.

      253,546        4,817  
  

 

 

     

 

 

  
        129,664  
     

 

 

  

Germany - 4.7%

      

Aareal Bank A.G.

      58,170        2,190  

adidas A.G.

      45,234        7,149  

BASF S.E.

      43,694        4,075  

Bechtle A.G.

      12,357        1,284  

Deutsche Post A.G. (Registered)

      152,764        5,017  

Duerr A.G.

      35,314        2,833  

E.ON S.E.

      611,698        4,266  

Freenet A.G.

      44,080        1,243  

Fresenius Medical Care A.G. & Co. KGaA

      52,627        4,462  

Gerresheimer A.G.

      15,122        1,122  

LANXESS A.G.

      22,820        1,495  

Linde A.G.

      17,557        2,879  

Rheinmetall A.G.

      16,923        1,137  

SAF-Holland S.A.

      166,884        2,399  

SAP S.E.

      42,725        3,734  

Stabilus S.A.*

      41,365        2,220  

STADA Arzneimittel A.G.

      26,012        1,344  

Suedzucker A.G.

      74,798        1,784  

TAG Immobilien A.G.

      80,456        1,058  

VTG A.G.

      38,456        1,149  

Wirecard A.G.

      29,637        1,274  
  

 

 

     

 

 

  
        54,114  
     

 

 

  

Hong Kong - 2.3%

      

AIA Group Ltd.

      164,014        918  

China High Precision Automation Group Ltd.*

      982,000        5  

China Merchants Port Holdings Co. Ltd.

      640,000        1,583  

China Mobile Ltd.

      639,000        6,700  

China Mobile Ltd. ADR

      105,642        5,539  

CK Hutchison Holdings Ltd.

      393,000        4,437  

Dah Sing Financial Holdings Ltd.

      165,600        1,118  

Haitong International Securities Group Ltd.

      1,610,000        918  

Man Wah Holdings Ltd.

      4,019,200        2,711  

Tongda Group Holdings Ltd.

      9,500,000        2,440  
  

 

 

     

 

 

  
        26,369  
     

 

 

  

India - 0.8%

      

HDFC Bank Ltd. ADR

      154,164        9,355  
  

 

 

     

 

 

  

Ireland - 3.4%

      

Accenture PLC, Class A

      115,165        13,489  

AerCap Holdings N.V.*

      116,561        4,850  

Experian PLC

      560,146        10,842  

ICON PLC*

      92,858        6,983  

UDG Healthcare PLC

      273,430        2,252  
  

 

 

     

 

 

  
        38,416  
     

 

 

  

Italy - 2.1%

      

A2A S.p.A.

      1,362,020        1,763  

Amplifon S.p.A.

      282,785        2,693  

Brembo S.p.A.

      67,223        4,066  

Buzzi Unicem S.p.A.

      52,028        1,231  

Infrastrutture Wireless Italiane S.p.A.(2)

     387,489        1,794  

Intesa Sanpaolo S.p.A.

      2,167,398        5,533  

Luxottica Group S.p.A.

      132,960        7,162  
  

 

 

     

 

 

  
        24,242  
     

 

 

  

Japan - 15.1%

      

Adastria Co. Ltd.

      49,800        1,285  

Arcs Co. Ltd.

      57,900        1,302  

Asahi Group Holdings Ltd.

      46,200        1,457  

Astellas Pharma, Inc.

      330,345        4,579  

CKD Corp.

      142,400        1,611  

 

ACTIVE M/MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.2%(1) continued

      

Japan - 15.1% continued

      

Clarion Co. Ltd.

      422,000      $ 1,509  

Daifuku Co. Ltd.

      59,700        1,267  

Daihen Corp.

      241,000        1,486  

Daikyonishikawa Corp.

      108,600        1,390  

DCM Holdings Co. Ltd.

      226,500        2,010  

Denka Co. Ltd.

      221,000        973  

Dip Corp.

      45,400        938  

Doutor Nichires Holdings Co. Ltd.

      105,100        1,929  

Dowa Holdings Co. Ltd.

      149,000        1,137  

East Japan Railway Co.

      79,300        6,841  

eRex Co. Ltd.

      45,800        1,324  

Fujitsu General Ltd.

      90,000        1,905  

Hitachi Ltd.

      1,121,000        6,040  

JAC Recruitment Co. Ltd.

      73,500        825  

Japan Airlines Co. Ltd.

      165,700        4,835  

Japan Hotel REIT Investment Corp.

      2,301        1,545  

Kandenko Co. Ltd.

      160,000        1,440  

KDDI Corp.

      246,100        6,214  

Keyence Corp.

      16,280        11,155  

Komatsu Ltd.

      343,900        7,762  

Leopalace21 Corp.

      212,000        1,170  

Maeda Corp.

      197,000        1,714  

Mandom Corp.

      41,000        1,765  

Matsumotokiyoshi Holdings Co. Ltd.

      38,200        1,876  

Mazda Motor Corp.

      279,400        4,538  

Mitsubishi Estate Co. Ltd.

      234,000        4,638  

Morinaga & Co. Ltd.

      51,100        2,125  

Murata Manufacturing Co. Ltd.

      37,700        5,020  

Nikon Corp.

      150,000        2,324  

Nippon Accommodations Fund, Inc.

      459        2,008  

Nippon Shinyaku Co. Ltd.

      21,400        1,053  

Nishimatsuya Chain Co. Ltd.

      141,800        1,700  

North Pacific Bank Ltd.

      529,300        2,176  

NS Solutions Corp.

      68,300        1,225  

Open House Co. Ltd.

      45,500        1,081  

Otsuka Holdings Co. Ltd.

      107,600        4,682  

Panasonic Corp.

      426,744        4,331  

Penta-Ocean Construction Co. Ltd.

      265,900        1,283  

Rengo Co. Ltd.

      213,200        1,159  

Round One Corp.

      143,700        994  

Ryobi Ltd.

      294,000        1,152  

Sanwa Holdings Corp.

      346,400        3,297  

SCREEN Holdings Co. Ltd.

      15,700        971  

Secom Co. Ltd.

      57,800        4,218  

Seiko Epson Corp.

      211,820        4,474  

Seino Holdings Co. Ltd.

      187,000        2,072  

Shiga Bank (The) Ltd.

      409,000        2,215  

Ship Healthcare Holdings, Inc.

      50,600        1,297  

Starts Corp., Inc.

      49,500        836  

Sumitomo Bakelite Co. Ltd.

      289,000        1,617  

Sumitomo Forestry Co. Ltd.

      136,400        1,795  

Sumitomo Mitsui Financial Group, Inc.

      118,900        4,507  

Sun Frontier Fudousan Co. Ltd.

      136,600        1,202  

Suntory Beverage & Food Ltd.

      90,500        3,744  

Sysmex Corp.

      118,640        6,858  

TechnoPro Holdings, Inc.

      45,900        1,467  

TIS, Inc.

      55,800        1,191  

Toda Corp.

      314,000        1,654  

Toho Holdings Co. Ltd.

      56,900        1,133  

Tokyo Seimitsu Co. Ltd.

      59,000        1,745  

Tokyo Steel Manufacturing Co. Ltd.

      236,400        1,811  

Tsubakimoto Chain Co.

      194,000        1,573  

Zenkoku Hosho Co. Ltd.

      52,900        1,698  
  

 

 

     

 

 

  
        172,148  
     

 

 

  

Mexico - 0.4%

      

Wal-Mart de Mexico S.A.B. de C.V.

      2,351,596        4,209  
  

 

 

     

 

 

  

Netherlands - 6.4%

      

Aalberts Industries N.V.

      29,304        950  

Aegon N.V.

      875,536        4,815  

Akzo Nobel N.V.

      119,530        7,465  

ArcelorMittal*

      227,267        1,676  

ASR Nederland N.V.*

      53,494        1,273  

BE Semiconductor Industries N.V.

      40,358        1,344  

Corbion N.V.

      42,584        1,139  

Core Laboratories N.V.

      93,723        11,250  

Euronext N.V.(2)

     59,346        2,448  

Gemalto N.V.

      74,032        4,274  

ING Groep N.V.

      122,729        1,727  

Koninklijke DSM N.V.

      65,603        3,927  

Koninklijke KPN N.V.

      1,505,232        4,457  

Koninklijke Philips N.V.

      148,220        4,518  

PostNL N.V.*

      471,346        2,036  

Refresco Group N.V.(2)

     96,023        1,458  

Royal Dutch Shell PLC, Class A ADR

      132,970        7,231  

 

NORTHERN FUNDS QUARTERLY REPORT    3    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

ACTIVE M INTERNATIONAL EQUITY FUND† continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.2%(1) continued

      

Netherlands - 6.4% continued

      

Royal Dutch Shell PLC, Class B

      304,640      $ 8,693  

TKH Group N.V. - CVA

      29,883        1,182  

Wereldhave N.V.

      28,164        1,266  
  

 

 

     

 

 

  
        73,129  
     

 

 

  

New Zealand - 0.2%

      

Summerset Group Holdings Ltd.

      598,574        1,947  
  

 

 

     

 

 

  

Norway - 0.5%

      

Bakkafrost P/F

      32,431        1,288  

DNB ASA

      311,696        4,635  
  

 

 

     

 

 

  
        5,923  
     

 

 

  

Russia - 0.6%

      

Yandex N.V., Class A*

      358,964        7,226  
  

 

 

     

 

 

  

Singapore - 0.6%

      

DBS Group Holdings Ltd.

      371,760        4,435  

Fortune Real Estate Investment Trust

      1,195,000        1,372  

Mapletree Industrial Trust

      1,028,600        1,167  
  

 

 

     

 

 

  
        6,974  
     

 

 

  

South Africa - 0.6%

      

Shoprite Holdings Ltd.

      589,356        7,354  
  

 

 

     

 

 

  

South Korea - 2.5%

      

DongKook Pharmaceutical Co. Ltd.

      20,731        983  

DuzonBizon Co. Ltd.

      59,469        1,052  

Handsome Co. Ltd.

      43,750        1,263  

Hugel, Inc.*

      4,228        1,120  

KIWOOM Securities Co. Ltd.

      39,915        2,373  

KT Skylife Co. Ltd.

      67,361        960  

KT&G Corp.

      15,614        1,305  

Nexen Tire Corp.

      85,047        915  

Poongsan Corp.

      43,223        1,442  

Samsung Electronics Co. Ltd.

      3,997        5,906  

SFA Engineering Corp.

      23,074        1,231  

SK Telecom Co. Ltd.

      27,106        5,043  

SKC Co. Ltd.

      67,800        1,850  

SL Corp.

      76,061        1,357  

TES Co. Ltd.

      68,941        1,519  
  

 

 

     

 

 

  
        28,319  
     

 

 

  

Spain - 2.2%

      

ACS Actividades de Construccion y Servicios S.A.

      146,317        4,613  

Banco Bilbao Vizcaya Argentaria S.A. ADR

      756,422        5,121  

Bankinter S.A.

      236,830        1,834  

CaixaBank S.A.

      1,088,087        3,594  

Enagas S.A.

      71,558        1,816  

Gamesa Corp. Tecnologica S.A.

      76,991        1,561  

Industria de Diseno Textil S.A.

      146,876        5,012  

Merlin Properties Socimi S.A.

      112,321        1,224  
  

 

 

     

 

 

  
        24,775  
     

 

 

  

Sweden - 0.9%

      

Alfa Laval AB

      134,780        2,227  

Axfood AB

      66,606        1,046  

Bilia AB, Class A

      80,704        1,855  

Com Hem Holding AB

      123,993        1,182  

Indutrade AB

      72,479        1,453  

Intrum Justitia AB

      32,209        1,087  

Wihlborgs Fastigheter AB

      78,201        1,452  
  

 

 

     

 

 

  
        10,302  
     

 

 

  

Switzerland - 9.8%

      

ABB Ltd. (Registered)*

      307,510        6,474  

Adecco Group A.G. (Registered)

      68,701        4,485  

Aryzta A.G.*

      84,677        3,728  

Chubb Ltd.

      117,114        15,473  

Cie Financiere Richemont S.A. (Registered)

      71,421        4,729  

Clariant A.G. (Registered)*

      62,064        1,070  

Emmi A.G. (Registered)*

      4,703        2,848  

Flughafen Zuerich A.G. (Registered)

      10,370        1,924  

Georg Fischer A.G. (Registered)

      3,709        3,037  

Helvetia Holding A.G. (Registered)

      2,140        1,153  

Julius Baer Group Ltd.*

      129,533        5,751  

Logitech International S.A. (Registered)

      110,793        2,764  

Lonza Group A.G. (Registered)*

      20,906        3,614  

Nestle S.A. (Registered)

      184,127        13,207  

Novartis A.G. (Registered)

      84,437        6,142  

Partners Group Holding A.G.

      4,892        2,289  

Roche Holding A.G. (Genusschein)

      52,366        11,932  

SGS S.A. (Registered)

      4,541        9,222  

Straumann Holding A.G. (Registered)

      4,952        1,931  

Swiss Life Holding A.G. (Registered)*

      10,827        3,063  

UBS Group A.G. (Registered)

      106,888        1,673  

Wizz Air Holdings PLC* (2)

      48,595        1,072  

Zurich Insurance Group A.G.*

      17,480        4,801  
  

 

 

     

 

 

  
        112,382  
     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.2%(1) continued

      

Taiwan - 1.3%

      

Taiwan Semiconductor Manufacturing Co. Ltd. ADR

      500,380      $ 14,386  
  

 

 

     

 

 

  

United Arab Emirates - 0.0%

      

Dubai Islamic Bank PJSC

      135,614        206  
  

 

 

     

 

 

  

United Kingdom - 11.4%

      

Aldermore Group PLC*

      409,813        1,189  

AstraZeneca PLC

      11,741        637  

Auto Trader Group PLC(2)

     288,007        1,450  

Aviva PLC

      1,019,835        6,085  

Balfour Beatty PLC

      730,600        2,413  

Barclays PLC

      1,624,515        4,463  

Beazley PLC

      304,864        1,454  

Bellway PLC

      43,381        1,320  

British American Tobacco PLC

      126,092        7,159  

Cairn Energy PLC*

      438,854        1,272  

Cineworld Group PLC

      171,487        1,191  

Clinigen Group PLC

      205,317        1,791  

Cobham PLC

      778,097        1,568  

Compass Group PLC

      621,488        11,455  

Costain Group PLC

      236,591        1,026  

Diageo PLC

      94,009        2,432  

Dialog Semiconductor PLC*

      29,419        1,241  

Domino’s Pizza Group PLC

      280,303        1,243  

DS Smith PLC

      242,749        1,218  

Electrocomponents PLC

      274,766        1,613  

GlaxoSmithKline PLC

      166,002        3,170  

Greggs PLC

      163,477        1,952  

Hansteen Holdings PLC

      837,999        1,171  

Hill & Smith Holdings PLC

      79,823        1,177  

HSBC Holdings PLC ADR

      165,699        6,658  

IG Group Holdings PLC

      107,018        651  

Informa PLC

      204,687        1,714  

Intermediate Capital Group PLC

      133,268        1,146  

JD Sports Fashion PLC

      356,568        1,395  

Jupiter Fund Management PLC

      400,587        2,183  

Keller Group PLC

      128,886        1,334  

Ladbrokes Coral Group PLC

      545,128        776  

Lloyds Banking Group PLC

      5,246,902        4,035  

Meggitt PLC

      209,438        1,183  

Moneysupermarket.com Group PLC

      267,596        969  

National Express Group PLC

      410,701        1,788  

Northgate PLC

      224,619        1,367  

Novae Group PLC

      39,723        337  

Pendragon PLC

      2,561,635        983  

Playtech PLC

      97,086        987  

Prudential PLC

      284,579        5,676  

Reckitt Benckiser Group PLC

      171,298        14,481  

Redrow PLC

      204,290        1,079  

RELX N.V.

      71,662        1,205  

Rentokil Initial PLC

      597,830        1,635  

RPC Group PLC

      118,861        1,555  

Safestore Holdings PLC

      452,226        1,945  

Smith & Nephew PLC

      275,506        4,105  

SSE PLC

      171,122        3,271  

Synthomer PLC

      213,233        1,004  

Tate & Lyle PLC

      122,961        1,071  

Ultra Electronics Holdings PLC

      38,352        916  

UNITE Group (The) PLC

      154,177        1,153  

Vodafone Group PLC

      1,385,282        3,407  
  

 

 

     

 

 

  
        129,699  
     

 

 

  

United States - 1.7%

      

Carnival PLC

      90,650        4,593  

Lazard Ltd., Class A

      176,593        7,256  

Nexteer Automotive Group Ltd.

      988,000        1,166  

Schlumberger Ltd.

      79,349        6,662  
  

 

 

     

 

 

  
        19,677  
     

 

 

  

Total Common Stocks

(Cost $1,039,337)

         1,075,746  
     

 

 

  

PREFERRED STOCKS - 0.9%(1)

     

Germany - 0.9%

      

Sartorius A.G.

      17,591        1,303  

Volkswagen A.G.

      67,296        9,428  
  

 

 

     

 

 

  
        10,731  
     

 

 

  

Total Preferred Stocks

(Cost $10,641)

         10,731  
     

 

 

  

INVESTMENT COMPANIES - 4.3%

      

Northern Institutional Funds - Government Assets Portfolio, 0.32%(3) (4)

      47,269,165        47,269  

Vanguard FTSE Developed Markets ETF

      33,691        1,231  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $48,498)

         48,500  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    5    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

ACTIVE M INTERNATIONAL EQUITY FUND† continued

 

     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.4%

 

U.S. Treasury Bill,

      

0.46%, 3/2/17(5) (6)

    $ 4,460      $ 4,457  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $4,457)

         4,457  
     

 

 

  

Total Investments - 99.8%

(Cost $1,102,933)

         1,139,434  
     

 

 

  

Other Assets less Liabilities - 0.2%

         2,292  
     

 

 

  

NET ASSETS - 100.0%

       $ 1,141,726  
     

 

 

  

 

† Formerly known as the Multi-Manager International Equity Fund.
(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) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of 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 Northern Institutional Funds.
(4) 7-day yield as of December 31, 2016 is disclosed.
(5) Discount rate at the time of purchase.
(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 December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Mini MSCI EAFE Index

      249      $ 20,861        Long        3/17      $ 72  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      13.5 % 

Consumer Staples

      8.9  

Energy

      6.3  

Financials

      15.1  

Health Care

      10.6  

Industrials

      17.0  

Information Technology

      12.3  

Materials

      6.9  

Real Estate

      3.4  

Telecommunication Services

      3.8  

Utilities

      2.2  
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Euro

      26.6 % 

Japanese Yen

      15.8  

United States Dollar

      15.1  

British Pound

      14.1  

Swiss Franc

      8.8  

All other currencies less than 5%

      19.6  
  

 

 

  

Total

      100.0 % 
  

 

 

  

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

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

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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).

 

ACTIVE M/MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

            

Australia

    $ 2,405      $ 41,269      $ —        $ 43,674  

Brazil

      6,674        3,656        —          10,330  

Canada

      47,689        1,430        —          49,119  

China

      13,194        15,417        —          28,611  

Denmark

      5,846        26,823        —          32,669  

France

      8,003        121,661        —          129,664  

Hong Kong

      5,539        20,825        5        26,369  

India

      9,355        —          —          9,355  

Ireland

      25,322        13,094        —          38,416  

Mexico

      4,209        —          —          4,209  

Netherlands

      18,481        54,648        —          73,129  

Russia

      7,226        —          —          7,226  

Spain

      5,121        19,654        —          24,775  

Switzerland

      15,473        96,909        —          112,382  

Taiwan

      14,386        —          —          14,386  

United Arab Emirates

      206        —          —          206  

United Kingdom

      6,658        123,041        —          129,699  

United States

      13,918        5,759        —          19,677  

All Other Countries(1)

     —          321,850        —          321,850  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      209,705        866,036        5        1,075,746  
  

 

 

     

 

 

     

 

 

     

 

 

  

Preferred Stocks(1)

     —          10,731        —          10,731  

Investment Companies

      48,500        —          —          48,500  

Short-Term Investments

      —          4,457        —          4,457  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 258,205      $ 881,224      $ 5      $ 1,139,434  
  

 

 

     

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                            

Assets

            

Futures Contracts

    $ 72      $ —        $ —        $ 72  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

 

     Value
(000S)		     

Reason

Common Stocks

      

United Arab Emirates

    $ 206      Valuations at official close price
  

 

 

     

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

 

     BALANCE
AS OF
3/31/16
(000S)		      REALIZED
GAINS
(LOSSES)
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     PURCHASES
(000S)		      SALES
(000S)		      TRANSFERS
INTO
LEVEL 3
(000S)		      TRANSFERS
OUT OF
LEVEL 3
(000S)		      BALANCE
AS OF
12/31/16
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD AT
12/31/16
(000S)		  

Common Stocks

                          

Hong Kong

    $ 5      $ —        $ —   *    $ —        $ —        $ —        $ —        $ 5      $ —   * 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* Amount rounds to less than one thousand.

The Fund valued the securities included in the Balance as of 12/31/16 above using prices provided by the investment adviser’s pricing and valuation committee.

 

NORTHERN FUNDS QUARTERLY REPORT    7    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

ACTIVE M INTERNATIONAL EQUITY FUND continued†    DECEMBER 31, 2016 (UNAUDITED)

 

 

     FAIR VALUE AT
12/31/16
(000S)		     

VALUATION

TECHNIQUES

    UNOBSERVABLE
INPUTS		    

Common Stocks

    $ 5      Consensus Pricing    Distressed/Defaulted Market Discount, Estimated
Recovery Value		  
  

 

 

          

The unobservable inputs are reviewed and compared to publicly available information for reasonableness. Values are reviewed based on available restructuring and recovery information. Values are compared to historical averages and general sector trends are taken into account. In general, an increase (decrease) in recovery or reduction (increase) in dilution would, in isolation, result in a significantly higher (lower) fair value measurement.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,106,451  
  

 

 

  

Gross tax appreciation of investments

    $ 80,385  

Gross tax depreciation of investments

      (47,402 ) 
  

 

 

  

Net tax appreciation of investments

    $ 32,983  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASE
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 43,824      $ 585,815      $ 582,370      $ 77      $ 47,269  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

ACTIVE M U.S. EQUITY FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8%

 

Aerospace & Defense - 3.4%

      

Aerovironment, Inc.*

      40,375      $ 1,083  

General Dynamics Corp.

      35,300        6,095  

Northrop Grumman Corp.

      15,400        3,582  

Raytheon Co.

      25,600        3,635  
  

 

 

     

 

 

  
        14,395  
     

 

 

  

Apparel & Textile Products - 1.5%

      

Albany International Corp., Class A

      34,258        1,586  

NIKE, Inc., Class B

      91,849        4,669  
  

 

 

     

 

 

  
        6,255  
     

 

 

  

Asset Management - 1.3%

      

BlackRock, Inc.

      12,070        4,593  

WisdomTree Investments, Inc.

      71,496        797  
  

 

 

     

 

 

  
        5,390  
     

 

 

  

Automotive - 0.3%

      

Standard Motor Products, Inc.

      27,062        1,440  
  

 

 

     

 

 

  

Banking - 4.0%

      

BancFirst Corp.

      16,072        1,496  

BB&T Corp.

      87,000        4,091  

Boston Private Financial Holdings, Inc.

      94,794        1,569  

Central Pacific Financial Corp.

      48,788        1,533  

Columbia Banking System, Inc.

      34,321        1,533  

Wells Fargo & Co.

      116,022        6,394  
  

 

 

     

 

 

  
        16,616  
     

 

 

  

Biotechnology & Pharmaceuticals - 8.5%

      

Cambrex Corp.*

      22,868        1,234  

Celgene Corp.*

      38,539        4,461  

Eli Lilly & Co.

      53,440        3,930  

Johnson & Johnson

      31,600        3,641  

Ligand Pharmaceuticals, Inc.*

      10,739        1,091  

Merck & Co., Inc.

      134,260        7,904  

Pfizer, Inc.

      240,360        7,807  

Regeneron Pharmaceuticals, Inc.*

      12,035        4,418  

Supernus Pharmaceuticals, Inc.*

      56,554        1,428  
  

 

 

     

 

 

  
        35,914  
     

 

 

  

Chemicals - 2.2%

      

E.I. du Pont de Nemours & Co.

      51,500        3,780  

Mosaic (The) Co.

      77,110        2,262  

NewMarket Corp.

      7,240        3,068  
  

 

 

     

 

 

  
        9,110  
     

 

 

  

Commercial Services - 0.5%

      

H&R Block, Inc.

      92,130        2,118  
  

 

 

     

 

 

  

Construction Materials - 0.9%

      

Apogee Enterprises, Inc.

      38,647        2,070  

US Concrete, Inc.*

      25,131        1,646  
  

 

 

     

 

 

  
        3,716  
     

 

 

  

Consumer Products - 9.3%

      

Altria Group, Inc.

      110,120        7,446  

Archer-Daniels-Midland Co.

      82,900        3,784  

Coca-Cola (The) Co.

      100,360        4,161  

Diageo PLC ADR

      33,600        3,492  

Farmer Brothers Co.*

      27,650        1,015  

General Mills, Inc.

      74,620        4,609  

Inter Parfums, Inc.

      34,021        1,114  

Kraft Heinz (The) Co.

      43,000        3,755  

Mondelez International, Inc., Class A

      82,900        3,675  

Nestle S.A. ADR

      46,230        3,317  

Reynolds American, Inc.

      47,570        2,666  
  

 

 

     

 

 

  
        39,034  
     

 

 

  

Consumer Services - 0.3%

      

Nutrisystem, Inc.

      41,458        1,437  
  

 

 

     

 

 

  

Distributors - Consumer Staples - 0.5%

      

Core-Mark Holding Co., Inc.

      53,381        2,299  
  

 

 

     

 

 

  

Electrical Equipment - 1.4%

      

General Electric Co.

      184,400        5,827  
  

 

 

     

 

 

  

Engineering & Construction Services - 0.2%

      

TopBuild Corp.*

      26,306        937  
  

 

 

     

 

 

  

Gaming, Lodging & Restaurants - 2.7%

      

Carnival Corp.

      101,720        5,296  

Popeyes Louisiana Kitchen, Inc.*

      22,972        1,389  

Starbucks Corp.

      84,081        4,668  
  

 

 

     

 

 

  
        11,353  
     

 

 

  

Hardware - 2.9%

      

ADTRAN, Inc.

      61,619        1,377  

Cisco Systems, Inc.

      241,350        7,293  

Infinera Corp.*

      83,822        712  

Mercury Systems, Inc.*

      52,469        1,586  

Universal Electronics, Inc.*

      22,218        1,434  
  

 

 

     

 

 

  
        12,402  
     

 

 

  

Health Care Facilities & Services - 3.2%

      

Cardinal Health, Inc.

      49,800        3,584  

Express Scripts Holding Co.*

      52,400        3,604  

 

NORTHERN FUNDS QUARTERLY REPORT    1    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

ACTIVE M U.S. EQUITY FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

 

Health Care Facilities & Services - 3.2% continued

      

HealthEquity, Inc.*

      41,723      $ 1,691  

NeoGenomics, Inc.*

      111,179        953  

Quest Diagnostics, Inc.

      41,600        3,823  
  

 

 

     

 

 

  
        13,655  
     

 

 

  

Industrial Services - 0.6%

      

H&E Equipment Services, Inc.

      65,840        1,531  

SiteOne Landscape Supply, Inc.*

      24,638        856  
  

 

 

     

 

 

  
        2,387  
     

 

 

  

Institutional Financial Services - 0.9%

      

Bank of New York Mellon (The) Corp.

      82,300        3,899  
  

 

 

     

 

 

  

Insurance - 4.1%

      

Allstate (The) Corp.

      49,700        3,684  

AMERISAFE, Inc.

      20,488        1,277  

Berkshire Hathaway, Inc., Class B*

      17,180        2,800  

Cincinnati Financial Corp.

      58,380        4,422  

Infinity Property & Casualty Corp.

      14,197        1,248  

Marsh & McLennan Cos., Inc.

      54,900        3,711  
  

 

 

     

 

 

  
        17,142  
     

 

 

  

Leisure Products - 0.6%

      

Hasbro, Inc.

      31,380        2,441  
  

 

 

     

 

 

  

Machinery - 0.9%

      

Federal Signal Corp.

      72,722        1,135  

Raven Industries, Inc.

      48,924        1,233  

Sun Hydraulics Corp.

      30,925        1,236  
  

 

 

     

 

 

  
        3,604  
     

 

 

  

Manufactured Goods - 0.3%

      

Chart Industries, Inc.*

      31,207        1,124  
  

 

 

     

 

 

  

Media - 5.4%

      

Alphabet, Inc., Class A*

      4,641        3,678  

Alphabet, Inc., Class C*

      6,865        5,298  

Facebook, Inc., Class A*

      43,440        4,998  

Priceline Group (The), Inc.*

      2,402        3,521  

Quotient Technology, Inc.*

      167,311        1,799  

Reis, Inc.

      39,072        869  

Time, Inc.

      67,040        1,197  

Wix.com Ltd.*

      34,472        1,536  
  

 

 

     

 

 

  
        22,896  
     

 

 

  

Medical Equipment & Devices - 1.9%

      

Abbott Laboratories

      93,700        3,599  

Align Technology, Inc.*

      25,114        2,414  

Repligen Corp.*

      24,003        740  

Wright Medical Group N.V.*

      51,106        1,175  
  

 

 

     

 

 

  
        7,928  
     

 

 

  

Metals & Mining - 0.9%

      

Encore Wire Corp.

      32,001        1,387  

Ferroglobe PLC

      135,267        1,465  

Kaiser Aluminum Corp.

      13,886        1,079  
  

 

 

     

 

 

  
        3,931  
     

 

 

  

Oil, Gas & Coal - 6.5%

      

Chevron Corp.

      61,890        7,285  

ConocoPhillips

      80,900        4,056  

Forum Energy Technologies, Inc.*

      57,117        1,257  

Halliburton Co.

      77,800        4,208  

Kinder Morgan, Inc.

      147,620        3,057  

Marathon Oil Corp.

      109,500        1,895  

MRC Global, Inc.*

      86,096        1,744  

Occidental Petroleum Corp.

      52,600        3,747  
  

 

 

     

 

 

  
        27,249  
     

 

 

  

Real Estate - 0.4%

      

RE/MAX Holdings, Inc., Class A

      27,685        1,550  
  

 

 

     

 

 

  

Real Estate Investment Trusts - 0.9%

      

Equity Residential

      55,580        3,577  
  

 

 

     

 

 

  

Renewable Energy - 0.3%

      

Green Plains, Inc.

      48,368        1,347  
  

 

 

     

 

 

  

Retail - Consumer Staples - 1.8%

      

CVS Health Corp.

      48,000        3,788  

Dollar General Corp.

      35,108        2,600  

Smart & Final Stores, Inc.*

      94,451        1,332  
  

 

 

     

 

 

  
        7,720  
     

 

 

  

Retail - Discretionary - 3.9%

      

Lowe’s Cos., Inc.

      86,730        6,168  

Monro Muffler Brake, Inc.

      24,505        1,402  

O’Reilly Automotive, Inc.*

      12,107        3,371  

Rush Enterprises, Inc., Class A*

      46,973        1,498  

TJX (The) Cos., Inc.

      53,733        4,037  
  

 

 

     

 

 

  
        16,476  
     

 

 

  

Semiconductors - 1.9%

      

Intel Corp.

      218,100        7,911  
  

 

 

     

 

 

  

Software - 6.1%

      

Acxiom Corp.*

      70,541        1,891  

 

ACTIVE M/MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 94.8% continued

 

Software - 6.1% continued

      

Adobe Systems, Inc.*

      37,332      $ 3,843  

CA, Inc.

      234,160        7,439  

Callidus Software, Inc.*

      103,061        1,731  

Descartes Systems Group (The), Inc.*

      51,034        1,092  

Envestnet, Inc.*

      37,989        1,339  

Microsoft Corp.

      58,710        3,648  

Oracle Corp.

      95,359        3,667  

Paycom Software, Inc.*

      24,221        1,102  
  

 

 

     

 

 

  
        25,752  
     

 

 

  

Specialty Finance - 2.1%

      

Mastercard, Inc., Class A

      16,209        1,673  

Stewart Information Services Corp.

      25,838        1,191  

Visa, Inc., Class A

      77,828        6,072  
  

 

 

     

 

 

  
        8,936  
     

 

 

  

Technology Services - 4.0%

      

Accenture PLC, Class A

      35,627        4,173  

Automatic Data Processing, Inc.

      50,411        5,181  

Cubic Corp.

      17,181        824  

Gartner, Inc.*

      29,519        2,983  

Paychex, Inc.

      57,370        3,493  
  

 

 

     

 

 

  
        16,654  
     

 

 

  

Telecom - 3.1%

      

AT&T, Inc.

      95,300        4,053  

ORBCOMM, Inc.*

      119,308        987  

Verizon Communications, Inc.

      146,590        7,825  
  

 

 

     

 

 

  
        12,865  
     

 

 

  

Transportation & Logistics - 2.0%

      

Marten Transport Ltd.

      61,155        1,425  

Norfolk Southern Corp.

      50,550        5,463  

Saia, Inc.*

      32,600        1,439  
  

 

 

     

 

 

  
        8,327  
     

 

 

  

Utilities - 2.2%

      

American States Water Co.

      34,951        1,592  

Dominion Resources, Inc.

      23,940        1,834  

Duke Energy Corp.

      29,400        2,282  

Edison International

      51,900        3,736  
  

 

 

     

 

 

  
        9,444  
     

 

 

  

Waste & Environment Services & Equipment - 0.9%

      

Waste Management, Inc.

      51,900        3,680  
  

 

 

     

 

 

  

Total Common Stocks

(Cost $379,205)

         398,738  
     

 

 

  

INVESTMENT COMPANIES - 5.1%

      

Northern Institutional Funds - Government Assets Portfolio,
0.32%(1) (2)

      21,373,703        21,374  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $21,374)

         21,374  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.1%

 

U.S. Treasury Bill,

      

0.45%, 3/2/17(3) (4)

    $ 490      $ 490  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $490)

      

 

490

 

     

 

 

  

Total Investments - 100.0%

(Cost $401,069)

         420,602  
     

 

 

  

Other Assets less Liabilities - 0.0%

         196  
     

 

 

  

NET ASSETS - 100.0%

       $ 420,798  
     

 

 

  

 

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(2) 7-day yield as of December 31, 2016 is disclosed.
(3) Discount rate at the time of purchase.
(4) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-Mini S&P 500

      62      $ 6,932        Long        3/17      $ 90  

E-Mini S&P MidCap 400

      3        498        Long        3/17        (2 ) 

Russell 2000 Mini Index

      13        882        Long        3/17        (2 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

                $ 86  
              

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

ACTIVE M U.S. EQUITY FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      12.6 % 

Consumer Staples

      11.1  

Energy

      6.7  

Financials

      11.1  

Health Care

      14.4  

Industrials

      12.6  

Information Technology

      21.3  

Materials

      3.3  

Real Estate

      1.3  

Telecommunication Services

      3.2  

Utilities

      2.4  
  

 

 

  

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks(1)

   $ 398,738     $ —        $ —        $ 398,738  

Investment Companies

      21,374       —          —          21,374  

Short-Term Investments

      —         490        —          490  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 420,112     $ 490      $ —        $ 420,602  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Assets

           

Futures Contracts

    $ 90     $ —        $ —        $ 90  

Liabilities

           

Futures Contracts

      (4 )      —          —          (4 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Other Financial Instruments

    $ 86     $ —        $ —        $ 86  
  

 

 

    

 

 

     

 

 

     

 

 

  

 

(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.

From the Fund’s commencement of operations on May 5, 2016 through December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 401,112  
  

 

 

  

Gross tax appreciation of investments

    $ 27,032  

Gross tax depreciation of investments

      (7,542 ) 
  

 

 

  

Net tax appreciation of investments

    $ 19,490  
  

 

 

  

Transactions in affiliated investments from the Fund’s commencement of operations on May 5, 2016 through December 31,2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ —        $ 435,067      $ 413,693      $ 29      $ 21,374  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 90.6%(1)

     

Australia - 10.7%

      

AusNet Services

      14,256,143      $ 16,238  

DUET Group

      12,175,553        24,061  

Macquarie Atlas Roads Group

      2,570,526        9,366  

Spark Infrastructure Group

      20,739,000        35,572  

Transurban Group

      5,175,098        38,540  
  

 

 

     

 

 

  
        123,777  
     

 

 

  

Brazil - 2.0%

      

Transmissora Alianca de Energia Eletrica S.A.

      3,597,600        22,863  
  

 

 

     

 

 

  

Canada - 2.7%

      

Enbridge, Inc.

      465,820        19,602  

TransCanada Corp.

      249,392        11,245  
  

 

 

     

 

 

  
        30,847  
     

 

 

  

Chile - 0.6%

      

Aguas Andinas S.A., Class A

      12,851,270        6,691  
  

 

 

     

 

 

  

France - 10.4%

      

Aeroports de Paris

      121,546        13,022  

Eutelsat Communications S.A.

      1,503,555        29,106  

Groupe Eurotunnel S.E. (Registered)

      3,652,176        34,672  

Vinci S.A.

      629,913        42,846  
  

 

 

     

 

 

  
        119,646  
     

 

 

  

Germany - 7.2%

      

Fraport A.G. Frankfurt Airport Services Worldwide

      829,118        48,972  

SES S.A.

      1,574,057        34,662  
  

 

 

     

 

 

  
        83,634  
     

 

 

  

Italy - 14.3%

      

ASTM S.p.A.

      353,898        3,854  

Atlantia S.p.A.

      2,990,097        69,964  

Hera S.p.A.

      2,651,933        6,112  

Italgas S.p.A.*

      2,466,745        9,706  

Snam S.p.A.

      6,336,625        26,065  

Societa Iniziative Autostradali e Servizi S.p.A.

      786,551        6,700  

Terna Rete Elettrica Nazionale S.p.A.

      9,290,246        42,500  
  

 

 

     

 

 

  
        164,901  
     

 

 

  

Japan - 1.8%

      

Tokyo Gas Co. Ltd.

      4,559,000        20,580  
  

 

 

     

 

 

  

Mexico - 1.1%

      

OHL Mexico S.A.B. de C.V.

      13,045,756        12,832  
  

 

 

     

 

 

  

Netherlands - 2.2%

      

Koninklijke Vopak N.V.

      529,260        24,968  
  

 

 

     

 

 

  

Portugal - 0.3%

      

REN - Redes Energeticas Nacionais SGPS S.A.

      1,369,400        3,888  
  

 

 

     

 

 

  

Spain - 3.7%

      

Abertis Infraestructuras S.A.

      3,076,600        43,046  
  

 

 

     

 

 

  

Switzerland - 2.3%

      

Flughafen Zuerich A.G. (Registered)

      146,139        27,114  
  

 

 

     

 

 

  

United Kingdom - 5.0%

      

National Grid PLC

      1,690,649        19,773  

Pennon Group PLC

      2,025,073        20,585  

Severn Trent PLC

      420,315        11,500  

United Utilities Group PLC

      501,330        5,555  
  

 

 

     

 

 

  
        57,413  
     

 

 

  

United States - 26.3%

      

Ameren Corp.

      497,678        26,108  

Atmos Energy Corp.

      117,307        8,698  

CMS Energy Corp.

      348,023        14,485  

Crown Castle International Corp.

      399,609        34,674  

CSX Corp.

      1,210,684        43,500  

Genesee & Wyoming, Inc., Class A*

      39,100        2,714  

Kinder Morgan, Inc.

      974,142        20,174  

NiSource, Inc.

      388,255        8,596  

Norfolk Southern Corp.

      410,650        44,379  

PG&E Corp.

      651,613        39,598  

Sempra Energy

      197,145        19,841  

Spectra Energy Corp.

      205,620        8,449  

Union Pacific Corp.

      304,800        31,602  
  

 

 

     

 

 

  
        302,818  
     

 

 

  

Total Common Stocks

(Cost $1,019,409)

         1,045,018  
     

 

 

  

MASTER LIMITED PARTNERSHIPS - 4.6%

      

United States - 4.6%

      

Boardwalk Pipeline Partners L.P.

      1,287,886        22,357  

Enbridge Energy Partners L.P.

      954,031        24,309  

Rice Midstream Partners L.P.

      239,906        5,897  
  

 

 

     

 

 

  
        52,563  
     

 

 

  

Total Master Limited Partnerships

(Cost $47,244)

         52,563  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    1    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 4.3%

      

Northern Institutional Funds - Government Assets Portfolio,
0.32%(2) (3)

      49,872,749      $ 49,873  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $49,873)

         49,873  
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.2%

      

U.S. Treasury Bill,
0.46%, 3/2/17(4) (5)

    $ 1,540      $ 1,539  
  

 

 

     

 

 

  

Total Short-Term Investments

(Cost $1,539)

         1,539  
     

 

 

  

Total Investments - 99.7%

(Cost $1,118,065)

         1,148,993  
     

 

 

  

Other Assets less Liabilities - 0.3%

         4,035  
     

 

 

  

NET ASSETS - 100.0%

       $ 1,153,028  
     

 

 

  

 

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.
(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(3) 7-day yield as of December 31, 2016 is disclosed.
(4) Discount rate at the time of purchase.
(5) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		      NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

E-mini S&P 500

      92      $ 10,287        Long        3/17/17      $ (34 ) 

Mini MSCI EAFE Index

      96        8,043        Long        3/17/17        32  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

                $ (2 ) 
              

 

 

  

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

      5.8 % 

Energy

      14.8  

Industrials

      43.1  

Real Estate

      3.2  

Utilities

      33.1  
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Euro

      40.1 % 

United States Dollar

      32.4  

Australian Dollar

      11.3  

British Pound

      5.2  

All other currencies less than 5%

      11.0  
  

 

 

  

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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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).

 

ACTIVE M/MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

           

Canada

    $ 30,847     $ —        $ —        $ 30,847  

Chile

      6,691       —          —          6,691  

Italy

      9,706       155,195        —          164,901  

Mexico

      12,832       —          —          12,832  

United States

      302,818       —          —          302,818  

All Other Countries(1)

     —         526,929        —          526,929  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Common Stocks

      362,894       682,124        —          1,045,018  
  

 

 

    

 

 

     

 

 

     

 

 

  

Master Limited Partnerships(1)

     46,666       5,897        —          52,563  

Investment Companies

      49,873       —          —          49,873  

Short-Term Investments

      —         1,539        —          1,539  
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Investments

    $ 459,433     $ 689,560      $ —        $ 1,148,993  
  

 

 

    

 

 

     

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                           

Assets

           

Futures Contracts

    $ 32     $ —        $ —        $ 32  

Liabilities

           

Futures Contracts

      (34 )      —          —          (34 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Other Financial Instruments

    $ (2 )    $ —        $ —        $ (2 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,131,343  
  

 

 

  

Gross tax appreciation of investments

    $ 75,229  

Gross tax depreciation of investments

      (57,579 ) 
  

 

 

  

Net tax appreciation of investments

    $ 17,650  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 33,842      $ 461,545      $ 445,514      $ 56      $ 49,873  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER GLOBAL REAL ESTATE FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.4%(1)

     

Australia - 6.9%

      

Charter Hall Group

      493,336      $ 1,692  

Dexus Property Group

      434,223        3,022  

Goodman Group

      522,191        2,694  

Scentre Group

      664,599        2,231  

Vicinity Centres

      431,100        932  

Westfield Corp.

      567,817        3,854  
  

 

 

     

 

 

  
        14,425  
     

 

 

  

Canada - 0.9%

      

RioCan Real Estate Investment Trust

      93,500        1,855  
  

 

 

     

 

 

  

China - 0.3%

      

SOHO China Ltd.

      1,231,100        605  
  

 

 

     

 

 

  

France - 4.2%

      

Gecina S.A.

      13,990        1,934  

Klepierre

      27,077        1,064  

Unibail-Rodamco S.E.

      21,078        5,025  

Unibail-Rodamco S.E. (Euronext Paris Exchange)

      3,005        717  
  

 

 

     

 

 

  
        8,740  
     

 

 

  

Germany - 5.5%

      

alstria office REIT-A.G.

      328,651        4,123  

Deutsche Wohnen A.G. (Bearer)

      86,872        2,724  

Grand City Properties S.A.

      64,500        1,172  

Vonovia S.E.

      106,281        3,462  
  

 

 

     

 

 

  
        11,481  
     

 

 

  

Hong Kong - 6.0%

      

Cheung Kong Property Holdings Ltd.

      459,300        2,785  

Hongkong Land Holdings Ltd.

      645,923        4,077  

Link REIT

      212,500        1,372  

Sun Hung Kai Properties Ltd.

      181,000        2,266  

Swire Properties Ltd.

      219,000        600  

Wharf Holdings (The) Ltd.

      229,816        1,510  
  

 

 

     

 

 

  
        12,610  
     

 

 

  

Ireland - 0.6%

      

Green REIT PLC

      839,451        1,211  
  

 

 

     

 

 

  

Japan - 6.2%

      

Leopalace21 Corp.

      12,300        68  

Mitsubishi Estate Co. Ltd.

      287,222        5,693  

Mitsui Fudosan Co. Ltd.

      211,300        4,876  

Nippon Accommodations Fund, Inc.

      192        840  

Orix JREIT, Inc.

      447        705  

United Urban Investment Corp.

      592        901  
  

 

 

     

 

 

  
        13,083  
     

 

 

  

Singapore - 2.6%

      

CapitaLand Ltd.

      295,420        614  

City Developments Ltd.

      433,600        2,470  

Global Logistic Properties Ltd.

      937,600        1,420  

Mapletree Commercial Trust

      1,096,973        1,055  
  

 

 

     

 

 

  
        5,559  
     

 

 

  

Spain - 0.8%

      

Merlin Properties Socimi S.A.

      157,879        1,720  
  

 

 

     

 

 

  

United Kingdom - 7.1%

      

Grainger PLC

      928,560        2,721  

Great Portland Estates PLC

      395,260        3,251  

Hammerson PLC

      242,781        1,710  

Intu Properties PLC

      540,300        1,877  

Land Securities Group PLC

      143,400        1,894  

Shaftesbury PLC

      138,149        1,545  

UNITE Group (The) PLC

      248,447        1,857  
  

 

 

     

 

 

  
        14,855  
     

 

 

  

United States - 55.3%

      

Alexandria Real Estate Equities, Inc.

      7,486        832  

American Campus Communities, Inc.

      60,112        2,992  

American Homes 4 Rent, Class A

      58,000        1,217  

Apartment Investment & Management Co., Class A

      74,488        3,385  

AvalonBay Communities, Inc.

      26,319        4,662  

Boston Properties, Inc.

      6,200        780  

Brandywine Realty Trust

      86,762        1,432  

Brixmor Property Group, Inc.

      146,612        3,580  

Brookdale Senior Living, Inc.

      217,636        2,703  

Care Capital Properties, Inc.

      25,150        629  

CBL & Associates Properties, Inc.

      118,249        1,360  

Communications Sales & Leasing, Inc.

      24,000        610  

Crown Castle International Corp.

      24,637        2,138  

CubeSmart

      48,443        1,297  

CyrusOne, Inc.

      27,000        1,208  

DCT Industrial Trust, Inc.

      37,428        1,792  

DDR Corp.

      85,905        1,312  

Digital Realty Trust, Inc.

      22,529        2,214  

Duke Realty Corp.

      62,595        1,662  

 

NORTHERN FUNDS QUARTERLY REPORT    1    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 96.4%(1) continued

      

United States - 55.3% continued

      

Empire State Realty Trust, Inc., Class A

      58,264       $ 1,176   

EPR Properties

      10,568         758   

Equinix, Inc.

      6,001         2,145   

Equity Commonwealth (New York Exchange)

      49,109         1,485   

Equity LifeStyle Properties, Inc.

      16,939         1,221   

Equity One, Inc.

      54,017         1,658   

Equity Residential

      57,883         3,725   

Essex Property Trust, Inc.

      10,114         2,351   

First Industrial Realty Trust, Inc.

      72,568         2,036   

General Growth Properties, Inc.

      72,972         1,823   

Gramercy Property Trust

      222,984         2,047   

HCP, Inc.

      51,153         1,520   

Hersha Hospitality Trust

      21,200         456   

Highwoods Properties, Inc.

      17,200         877   

Hilton Worldwide Holdings, Inc.

      33,365         908   

Host Hotels & Resorts, Inc.

      121,219         2,284   

Hudson Pacific Properties, Inc.

      17,900         623   

Kilroy Realty Corp.

      38,378         2,810   

Kimco Realty Corp.

      26,697         672   

LaSalle Hotel Properties

      39,700         1,210   

Life Storage, Inc.

      2,000         170   

Mack-Cali Realty Corp.

      67,154         1,949   

Medical Properties Trust, Inc.

      56,200         691   

MGM Growth Properties LLC, Class A

      123,461         3,125   

National Health Investors, Inc.

      15,703         1,165   

National Retail Properties, Inc.

      41,171         1,820   

Omega Healthcare Investors, Inc.

      24,425         763   

Prologis, Inc.

      47,365         2,500   

Public Storage

      16,885         3,774   

QTS Realty Trust, Inc., Class A

      1,000         50   

Regency Centers Corp.

      23,828         1,643   

Retail Properties of America, Inc., Class A

      144,273         2,212   

SBA Communications Corp., Class A

      5,800         599   

Simon Property Group, Inc.

      46,027         8,178   

Spirit Realty Capital, Inc.

      98,051         1,065   

STORE Capital Corp.

      59,481         1,470   

Sunstone Hotel Investors, Inc.

      126,647         1,931   

Taubman Centers, Inc.

      8,976         664   

UDR, Inc.

      48,230         1,759   

Urban Edge Properties

      78,545         2,161   

Vornado Realty Trust

      48,638         5,076   

Washington Prime Group, Inc.

      44,708         465   

Washington Real Estate Investment Trust

      58,924         1,926   

Welltower, Inc.

      46,964         3,143   
  

 

 

     

 

 

  
        115,889   
     

 

 

  

Total Common Stocks

(Cost $197,274)

         202,033   
     

 

 

  
     PRINCIPAL
AMOUNT
(000S)		      VALUE
(000S)		  

CONVERTIBLE BONDS - 0.3%

      

United States - 0.3%

      

VEREIT, Inc.,

      

3.75%, 12/15/20

    $ 599       $ 599   
  

 

 

     

 

 

  

Total Convertible Bonds

(Cost $556)

         599   
     

 

 

  
     NUMBER
OF SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 2.0%

      

Northern Institutional Funds - Government Assets Portfolio,
0.32%(2) (3)

      4,108,216       $ 4,108   
  

 

 

     

 

 

  

Total Investment Companies

(Cost $4,108)

         4,108   
     

 

 

  

Total Investments - 98.7%

(Cost $201,938)

         206,740   
     

 

 

  

Other Assets less Liabilities - 1.3%

         2,710   
     

 

 

  

NET ASSETS - 100.0%

       $ 209,450   
     

 

 

  

 

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.
(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(3) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

 

ACTIVE M/MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Diversified Real Estate Activities

      8.6 % 

Diversified REITs

      8.1   

Health Care Facilities

      1.3   

Health Care REITs

      3.9   

Hotel & Resort REITs

      4.4   

Hotels, Resorts & Cruise Lines

      0.5   

Industrial REITs

      5.3   

Integrated Telecommunication Services

      0.3   

Office REITs

      13.9   

Real Estate Development

      1.7   

Real Estate Operating Companies

      8.9   

Residential REITs

      10.9   

Retail REITs

      25.1   

Specialized REITs

      7.1   
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

United States Dollar

      59.5 % 

Euro

      11.4   

British Pound

      7.3   

Australian Dollar

      7.1   

Japanese Yen

      6.5   

All other currencies less than 5%

      8.2   
  

 

 

  

Total

      100.0 % 
  

 

 

  

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

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

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 2016 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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Common Stocks

            

Canada

    $ 1,855       $ —         $ —         $ 1,855   

France

      717         8,023         —           8,740   

United States

      115,889         —           —           115,889   

All Other Countries(1)

     —           75,549         —           75,549   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      118,461         83,572         —           202,033   
  

 

 

     

 

 

     

 

 

     

 

 

  

Convertible Bonds(1)

     —           599         —           599   

Investment Companies

      4,108         —           —           4,108   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 122,569       $ 84,171       $ —         $ 206,740   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 214,294   
  

 

 

  

Gross tax appreciation of investments

    $ 6,816   

Gross tax depreciation of investments

      (14,370 ) 
  

 

 

  

Net tax depreciation of investments

    $ (7,554 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE
BEGINNING
OF PERIOD
(000S)		      PURCHASE
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 10,023       $ 239,218       $ 245,133       $ 18       $ 4,108   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 1.2%

      

United States - 1.2%

      

JPMorgan Chase Bank N.A. Credit Linked Note (Republic of Indonesia),

      

6.13%, 5/17/28 (IDR)(2)

   $ 9,550,000      $ 601  

8.38%, 3/17/34 (IDR)(2)

     3,881,000        291  

8.75%, 5/19/31 (IDR)(2)

     2,054,000        160  
  

 

 

     

 

 

  
        1,052  
     

 

 

  

Total Corporate Bonds

(Cost $1,089)

         1,052  
     

 

 

  

FOREIGN ISSUER BONDS - 83.5%

      

Angola - 0.1%

      

Angolan Government International Bond,

      

9.50%, 11/12/25(2)

     133        128  
  

 

 

     

 

 

  

Argentina - 3.1%

      

Argentine Republic Government International Bond,

      

6.25%, 4/22/19

      220        235  

7.50%, 4/22/26(2)

     1,085        1,139  

7.82%, 12/31/33 (EUR)

      206        212  

4.59%, 12/15/35 (EUR)(3)

     305        30  

4.52%, 12/15/35(3)

     1,985        183  

2.50%, 12/31/38(4)

     192        118  

7.63%, 4/22/46(2)

     150        150  

Cablevision S.A.,

      

6.50%, 6/15/21

      50        51  

Provincia de Cordoba,

      

7.13%, 6/10/21

      300        308  

Provincia del Chubut Argentina,

      

7.75%, 7/26/26

      400        388  

YPF S.A.,

      

8.88%, 12/19/18

      30        33  
  

 

 

     

 

 

  
        2,847  
     

 

 

  

Armenia - 0.1%

      

Republic of Armenia International Bond,

      

7.15%, 3/26/25

      50        53  
  

 

 

     

 

 

  

Azerbaijan - 0.7%

      

Republic of Azerbaijan International Bond,

      

4.75%, 3/18/24

      225        224  

Southern Gas Corridor CJSC,

      

6.88%, 3/24/26

      415        448  
  

 

 

     

 

 

  
        672  
     

 

 

  

Belize - 0.1%

      

Belize Government International Bond,

      

5.00%, 2/20/38(4)

     130        53  
  

 

 

     

 

 

  

Brazil - 6.8%

      

Brazil Letras do Tesouro Nacional,

      

0.00%, 10/1/18 (BRL)(5)

     220        56  

0.00%, 1/1/19 (BRL)(5)

     1,789        447  

0.00%, 7/1/19 (BRL)(5)

     425        101  

0.00%, 1/1/20 (BRL)(5)

     2,540        568  

Brazil Notas do Tesouro Nacional, Serie B,

      

6.00%, 8/15/50 (BRL)

      370        347  

Brazil Notas do Tesouro Nacional, Serie F,

      

10.00%, 1/1/18 (BRL)

      1,700        515  

10.00%, 1/1/19 (BRL)

      316        95  

10.00%, 1/1/21 (BRL)

      2,553        754  

10.00%, 1/1/23 (BRL)

      1,280        369  

10.00%, 1/1/25 (BRL)

      1,590        454  

10.00%, 1/1/27 (BRL)

      3,405        961  

Brazilian Government International Bond,

      

2.63%, 1/5/23

      203        181  

6.00%, 4/7/26

      320        331  

10.10%, 5/15/27

      130        177  

8.25%, 1/20/34

      100        116  

5.00%, 1/27/45

      625        507  

5.63%, 2/21/47

      290        255  
  

 

 

     

 

 

  
        6,234  
     

 

 

  

Chile - 0.0%

      

Chile Government International Bond,

      

5.50%, 8/5/20 (CLP)

      15,000        24  
  

 

 

     

 

 

  

Colombia - 3.1%

      

Colombia Government International Bond,

      

4.38%, 7/12/21

      75        79  

4.00%, 2/26/24

      175        177  

4.50%, 1/28/26

      30        31  

9.85%, 6/28/27 (COP)

      618,000        243  

7.38%, 9/18/37

      175        213  

Colombian TES,

      

7.00%, 5/4/22 (COP)

      1,106,600        376  

10.00%, 7/24/24 (COP)

      1,133,000        446  

7.50%, 8/26/26 (COP)

      1,073,000        369  

6.00%, 4/28/28 (COP)

      2,662,800        805  

Ecopetrol S.A.,

      

 

NORTHERN FUNDS QUARTERLY REPORT    1    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 83.5% continued

      

Colombia - 3.1% continued

      

5.88%, 5/28/45

    $ 54      $ 47  

Transportadora de Gas Internacional S.A. ESP,

      

5.70%, 3/20/22

      50        51  
  

 

 

     

 

 

  
        2,837  
     

 

 

  

Costa Rica - 0.6%

      

Banco Nacional de Costa Rica,

      

5.88%, 4/25/21(2)

     70        71  

Costa Rica Government International Bond,

      

4.25%, 1/26/23

      40        36  

4.38%, 4/30/25

      205        182  

7.00%, 4/4/44

      35        32  

7.16%, 3/12/45

      200        185  
  

 

 

     

 

 

  
        506  
     

 

 

  

Croatia - 0.7%

      

Croatia Government International Bond,

      

6.75%, 11/5/19

      400        435  

6.00%, 1/26/24

      225        245  
  

 

 

     

 

 

  
        680  
     

 

 

  

Dominican Republic - 1.1%

      

Dominican Republic International Bond,

      

5.50%, 1/27/25

      665        643  

6.88%, 1/29/26

      155        161  

7.45%, 4/30/44

      190        192  
  

 

 

     

 

 

  
        996  
     

 

 

  

Ecuador - 3.2%

      

Ecuador Government International Bond,

      

10.50%, 3/24/20(2)

     75        81  

10.80%, 3/28/22(2)

     1,010        1,098  

7.95%, 6/20/24

      1,310        1,255  

9.65%, 12/13/26(2)

     470        482  
  

 

 

     

 

 

  
        2,916  
     

 

 

  

Egypt - 0.2%

      

Egypt Government International Bond,

      

5.75%, 4/29/20

      100        101  

6.88%, 4/30/40

      100        88  
  

 

 

     

 

 

  
        189  
     

 

 

  

El Salvador - 1.1%

      

El Salvador Government International Bond,

      

7.38%, 12/1/19

      40        41  

7.75%, 1/24/23

      65        67  

5.88%, 1/30/25

      382        350  

6.38%, 1/18/27

      379        349  

8.25%, 4/10/32

      55        56  

7.65%, 6/15/35

      165        153  

7.63%, 2/1/41

      10        9  
  

 

 

     

 

 

  
        1,025  
     

 

 

  

Ethiopia - 0.1%

      

Ethiopia International Bond,

      

6.63%, 12/11/24

      50        46  
  

 

 

     

 

 

  

Georgia - 0.1%

      

BGEO Group JSC,

      

6.00%, 7/26/23(2)

     75        75  
  

 

 

     

 

 

  

Ghana - 1.4%

      

Ghana Government Bond,

      

25.50%, 4/24/17 (GHS)

      50        12  

23.20%, 2/19/18 (GHS)

      50        12  

22.50%, 4/23/18 (GHS)

      20        5  

23.50%, 5/21/18 (GHS)

      50        12  

Ghana Government International Bond,

      

9.25%, 9/15/22

      200        214  

7.88%, 8/7/23

      650        643  

8.13%, 1/18/26

      400        396  
  

 

 

     

 

 

  
        1,294  
     

 

 

  

Guatemala - 0.1%

      

Guatemala Government Bond,

      

4.50%, 5/3/26

      105        101  
  

 

 

     

 

 

  

Honduras - 0.2%

      

Honduras Government International Bond,

      

7.50%, 3/15/24

      200        214  
  

 

 

     

 

 

  

Hungary - 2.2%

      

Hungary Government Bond,

      

6.00%, 11/24/23 (HUF)

      68,830        290  

3.00%, 6/26/24 (HUF)

      53,310        185  

5.50%, 6/24/25 (HUF)

      150,240        613  

Hungary Government International Bond,

      

4.13%, 2/19/18

      850        871  
  

 

 

     

 

 

  
        1,959  
     

 

 

  

Indonesia - 8.0%

      

Indonesia Government International Bond,

      

6.88%, 1/17/18

      825        868  

5.88%, 3/13/20

      135        148  

3.38%, 4/15/23

      135        132  

 

ACTIVE M/MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 83.5% continued

      

Indonesia - 8.0% continued

      

2.63%, 6/14/23 (EUR)

    $ 100      $ 106  

4.13%, 1/15/25(2)

     120        119  

4.75%, 1/8/26

      265        274  

3.75%, 6/14/28 (EUR)

      165        177  

6.63%, 2/17/37

      50        58  

Indonesia Treasury Bond,

      

7.88%, 4/15/19 (IDR)

      3,649,000        274  

8.38%, 3/15/24 (IDR)

      10,540,000        802  

8.38%, 9/15/26 (IDR)

      14,132,000        1,081  

7.00%, 5/15/27 (IDR)

      1,785,000        126  

9.00%, 3/15/29 (IDR)

      5,724,000        449  

8.75%, 5/15/31 (IDR)

      20,775,000        1,609  

8.25%, 5/15/36 (IDR)

      2,499,000        187  

Pelabuhan Indonesia II PT,

      

4.25%, 5/5/25

      200        190  

Pertamina Persero PT,

      

4.88%, 5/3/22

      249        256  

4.30%, 5/20/23

      95        95  

6.00%, 5/3/42

      80        77  

5.63%, 5/20/43

      100        92  

Perusahaan Penerbit SBSN Indonesia III,

      

4.33%, 5/28/25(2)

     80        80  

4.55%, 3/29/26(2)

     110        110  
  

 

 

     

 

 

  
        7,310  
     

 

 

  

Iraq - 0.1%

      

Iraq International Bond,

      

5.80%, 1/15/28

      110        91  
  

 

 

     

 

 

  

Ireland - 0.2%

      

Vnesheconombank Via VEB Finance PLC,

      

5.94%, 11/21/23

      200        207  
  

 

 

     

 

 

  

Israel - 0.0%

      

Delek & Avner Tamar Bond Ltd.,

      

5.08%, 12/30/23(2)

     25        26  
  

 

 

     

 

 

  

Ivory Coast - 1.2%

      

Ivory Coast Government International Bond,

      

5.75%, 12/31/32(4)

     1,219        1,131  
  

 

 

     

 

 

  

Jamaica - 0.5%

      

Jamaica Government International Bond,

      

6.75%, 4/28/28

      111        122  

8.00%, 3/15/39

      305        337  
  

 

 

     

 

 

  
        459  
     

 

 

  

Jordan - 0.4%

      

Jordan Government International Bond,

      

6.13%, 1/29/26(2)

     20        20  

5.75%, 1/31/27(2)

     325        308  
  

 

 

     

 

 

  
        328  
     

 

 

  

Kazakhstan - 1.6%

      

Kazakhstan Government International Bond,

      

3.88%, 10/14/24(2)

     450        452  

5.13%, 7/21/25

      100        107  

4.88%, 10/14/44

      200        191  

KazMunayGas National Co. JSC,

      

9.13%, 7/2/18

      225        245  

7.00%, 5/5/20

      250        275  

6.38%, 4/9/21

      200        218  
  

 

 

     

 

 

  
        1,488  
     

 

 

  

Kenya - 0.9%

      

Kenya Government International Bond,

      

5.88%, 6/24/19

      300        308  

6.88%, 6/24/24

      510        484  
  

 

 

     

 

 

  
        792  
     

 

 

  

Lebanon - 1.5%

      

Lebanon Government International Bond,

      

5.15%, 6/12/18

      155        154  

5.45%, 11/28/19

      220        215  

8.25%, 4/12/21

      350        371  

6.65%, 11/3/28

      690        665  
  

 

 

     

 

 

  
        1,405  
     

 

 

  

Luxembourg - 0.1%

      

Altice Financing S.A.,

      

6.63%, 2/15/23(2)

     55        56  
  

 

 

     

 

 

  

Malaysia - 2.9%

      

Malaysia Government Bond,

      

3.81%, 2/15/17 (MYR)

      970        216  

3.65%, 10/31/19 (MYR)

      1,180        263  

4.05%, 9/30/21 (MYR)

      3,260        730  

3.62%, 11/30/21 (MYR)

      160        36  

3.80%, 9/30/22 (MYR)

      2,770        608  

3.80%, 8/17/23 (MYR)

      1,611        353  

3.96%, 9/15/25 (MYR)

      988        214  

4.50%, 4/15/30 (MYR)

      740        161  

4.25%, 5/31/35 (MYR)

      400        84  
  

 

 

     

 

 

  
        2,665  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    3    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 83.5% continued

      

Mexico - 6.5%

      

Banco Nacional de Comercio Exterior SNC,

      

3.80%, 8/11/26(2) (3)

    $ 90      $ 84  

Cemex S.A.B. de C.V.,

      

7.25%, 1/15/21

      100        107  

Comision Federal de Electricidad,

      

4.75%, 2/23/27(2)

     60        58  

Mexican Bonos,

      

5.00%, 12/11/19 (MXN)

      23,312        1,068  

6.50%, 6/10/21 (MXN)

      24,350        1,146  

10.00%, 12/5/24 (MXN)

      21,140        1,182  

5.75%, 3/5/26 (MXN)

      480        21  

7.50%, 6/3/27 (MXN)

      2,900        139  

7.75%, 5/29/31 (MXN)

      4,200        203  

10.00%, 11/20/36 (MXN)

      4,750        279  

7.75%, 11/13/42 (MXN)

      802        38  

Mexican Udibonos,

      

4.00%, 6/13/19 (MXN)

      230        64  

4.00%, 11/15/40 (MXN)

      536        148  

Mexico Government International Bond,

      

5.95%, 3/19/19

      400        432  

4.00%, 10/2/23

      180        181  

Petroleos Mexicanos,

      

4.61%, 3/11/22(2) (3)

      130        134  

5.38%, 3/13/22(2)

     130        133  

4.63%, 9/21/23

      150        146  

6.50%, 3/13/27(2)

     190        196  

5.50%, 6/27/44

      240        200  
  

 

 

     

 

 

  
        5,959  
     

 

 

  

Mongolia - 0.4%

      

Mongolia Government International Bond,

      

4.13%, 1/5/18

      205        199  

10.90%, 4/6/21

      40        42  

5.13%, 12/5/22

      120        102  
  

 

 

     

 

 

  
        343  
     

 

 

  

Morocco - 0.3%

      

Morocco Government International Bond,

      

4.25%, 12/11/22

      200        205  

OCP S.A.,

      

5.63%, 4/25/24

      80        83  
  

 

 

     

 

 

  
        288  
     

 

 

  

Mozambique - 0.2%

      

Mozambique International Bond,

      

10.50%, 1/18/23

      340        205  
  

 

 

     

 

 

  

Namibia - 0.1%

      

Namibia International Bonds,

      

5.25%, 10/29/25(2)

     60        59  
  

 

 

     

 

 

  

Netherlands - 2.1%

      

GTH Finance B.V.,

      

7.25%, 4/26/23

      275        296  

Petrobras Global Finance B.V.,

      

8.38%, 5/23/21

      1,401        1,510  

VTR Finance B.V.,

      

6.88%, 1/15/24

      105        108  
  

 

 

     

 

 

  
        1,914  
     

 

 

  

Oman - 0.3%

      

Lamar Funding Ltd.,

      

3.96%, 5/7/25

      200        185  

Oman Government International Bond,

      

3.63%, 6/15/21(2)

     80        80  
  

 

 

     

 

 

  
        265  
     

 

 

  

Pakistan - 0.1%

      

Pakistan Government International Bond,

      

8.25%, 4/15/24(2)

     50        54  

8.25%, 9/30/25(2)

     50        55  
  

 

 

     

 

 

  
        109  
     

 

 

  

Panama - 0.2%

      

Panama Government International Bond,

      

8.88%, 9/30/27

      116        159  
  

 

 

     

 

 

  

Paraguay - 0.5%

      

Paraguay Government International Bond,

      

4.63%, 1/25/23

      255        257  

5.00%, 4/15/26(2)

     120        122  

6.10%, 8/11/44(2)

     75        76  
  

 

 

     

 

 

  
        455  
     

 

 

  

Peru - 2.6%

      

Consorcio Transmantaro S.A.,

      

4.38%, 5/7/23

      50        50  

Corp. Financiera de Desarrollo S.A.,

      

4.75%, 7/15/25

      100        104  

Peruvian Government International Bond,

      

7.13%, 3/30/19

      375        417  

4.13%, 8/25/27

      635        660  

 

ACTIVE M/MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 83.5% continued

      

Peru - 2.6% continued

      

6.35%, 8/12/28 (PEN)(2)

   $ 237      $ 70  

6.95%, 8/12/31 (PEN)

      620        189  

8.75%, 11/21/33

      170        248  

6.90%, 8/12/37 (PEN)

      2,180        651  
  

 

 

     

 

 

  
        2,389  
     

 

 

  

Philippines - 0.1%

      

Philippine Government Bond,

      

3.63%, 9/9/25 (PHP)

      3,290        61  
  

 

 

     

 

 

  

Poland - 3.2%

      

Republic of Poland Government Bond,

      

1.50%, 4/25/20 (PLN)

      340        79  

5.25%, 10/25/20 (PLN)

      1,300        340  

5.75%, 9/23/22 (PLN)

      1,540        418  

3.25%, 7/25/25 (PLN)

      3,641        854  

2.50%, 7/25/26 (PLN)

      3,559        774  

Republic of Poland Government International Bond,

      

6.38%, 7/15/19

      400        445  
  

 

 

     

 

 

  
        2,910  
     

 

 

  

Qatar - 0.1%

      

Ooredoo International Finance Ltd.,

      

3.75%, 6/22/26(2)

     100        98  
  

 

 

     

 

 

  

Romania - 0.4%

      

Romania Government Bond,

      

4.75%, 2/24/25 (RON)

      715        181  

5.80%, 7/26/27 (RON)

      800        219  
  

 

 

     

 

 

  
        400  
     

 

 

  

Russia - 3.7%

      

Russian Federal Bond - OFZ,

      

7.60%, 4/14/21 (RUB)

      6,880        110  

7.50%, 8/18/21 (RUB)

      31,600        504  

7.60%, 7/20/22 (RUB)

      11,500        183  

7.00%, 8/16/23 (RUB)

      81,142        1,248  

7.75%, 9/16/26 (RUB)

      14,551        230  

8.15%, 2/3/27 (RUB)

      39,283        640  

7.05%, 1/19/28 (RUB)

      2,120        32  

Russian Foreign Bond - Eurobond,

      

12.80%, 6/24/28

      130        221  

VTB Bank OJSC Via VTB Capital S.A.,

      

6.95%, 10/17/22

      200        216  
  

 

 

     

 

 

  
        3,384  
     

 

 

  

Senegal - 0.3%

      

Senegal Government International Bond,

      

6.25%, 7/30/24(2)

     260        260  
  

 

 

     

 

 

  

Serbia - 1.4%

      

Serbia International Bond,

      

5.88%, 12/3/18

      400        419  

4.88%, 2/25/20

      655        668  

7.25%, 9/28/21

      200        223  
  

 

 

     

 

 

  
        1,310  
     

 

 

  

South Africa - 5.3%

      

Eskom Holdings SOC Ltd.,

      

6.75%, 8/6/23

      140        141  

Republic of South Africa Government Bond,

      

6.75%, 3/31/21 (ZAR)

      2,744        189  

7.75%, 2/28/23 (ZAR)

      6,831        477  

10.50%, 12/21/26 (ZAR)

      23,940        1,924  

8.00%, 1/31/30 (ZAR)

      4,829        317  

7.00%, 2/28/31 (ZAR)

      2,694        161  

8.25%, 3/31/32 (ZAR)

      13,975        917  

6.25%, 3/31/36 (ZAR)

      4,694        244  

8.75%, 2/28/48 (ZAR)

      1,460        97  

Republic of South Africa Government International Bond,

      

5.88%, 9/16/25

      115        123  

4.30%, 10/12/28

      140        130  

6.25%, 3/8/41

      75        82  

5.38%, 7/24/44

      65        64  
  

 

 

     

 

 

  
        4,866  
     

 

 

  

Sri Lanka - 0.9%

      

Sri Lanka Government International Bond,

      

6.25%, 7/27/21

      40        41  

5.75%, 1/18/22(2)

     70        69  

6.13%, 6/3/25

      200        188  

6.85%, 11/3/25(2)

     260        255  

6.83%, 7/18/26

      225        222  
  

 

 

     

 

 

  
        775  
     

 

 

  

Suriname - 0.0%

      

Republic of Suriname,

      

9.25%, 10/26/26(2)

     30        29  
  

 

 

     

 

 

  

Thailand - 0.6%

      

Thailand Government Bond,

      

 

NORTHERN FUNDS QUARTERLY REPORT    5    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND PORTFOLIO continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 83.5% continued

      

Thailand - 0.6% continued

      

3.63%, 6/16/23 (THB)

    $ 5,340      $ 159  

3.85%, 12/12/25 (THB)

      9,733        298  

3.58%, 12/17/27 (THB)

      2,810        83  
  

 

 

     

 

 

  
        540  
     

 

 

  

Tunisia - 0.1%

      

Banque Centrale de Tunisie International Bond,

      

5.75%, 1/30/25

      100        93  
  

 

 

     

 

 

  

Turkey - 5.6%

      

TC Ziraat Bankasi A.S.,

      

4.75%, 4/29/21

      40        38  

Turkey Government Bond,

      

8.50%, 7/10/19 (TRY)

      1,466        399  

9.50%, 1/12/22 (TRY)

      447        120  

7.10%, 3/8/23 (TRY)

      990        232  

8.00%, 3/12/25 (TRY)

      5,807        1,378  

10.60%, 2/11/26 (TRY)

      2,055        567  

Turkey Government International Bond,

      

5.63%, 3/30/21

      100        103  

5.13%, 3/25/22

      205        204  

6.25%, 9/26/22

      160        166  

3.25%, 3/23/23

      50        44  

5.75%, 3/22/24

      270        271  

7.38%, 2/5/25

      45        49  

4.25%, 4/14/26

      210        187  

4.88%, 10/9/26

      690        638  

6.00%, 1/14/41

      45        42  

4.88%, 4/16/43

      290        234  

6.63%, 2/17/45

      200        199  

Turkiye Is Bankasi A.S.,

      

5.50%, 4/21/19

      200        202  
  

 

 

     

 

 

  
        5,073  
     

 

 

  

Ukraine - 2.7%

      

Ukraine Government International Bond,

      

7.75%, 9/1/19(2)

     946        954  

7.75%, 9/1/20

      435        432  

7.75%, 9/1/21(2)

     168        165  

7.75%, 9/1/22

      160        155  

7.75%, 9/1/25

      225        212  

7.75%, 9/1/26

      200        187  

2.66%, 5/31/40(3)

     1,083        331  
  

 

 

     

 

 

  
        2,436  
     

 

 

  

United Kingdom - 0.9%

      

Columbus Cable Barbados Ltd.,

      

7.38%, 3/30/21

      60        64  

Oschadbank Via SSB #1 PLC,

      

9.38%, 3/10/23(4)

     200        195  

Ukreximbank Via Biz Finance PLC,

      

9.63%, 4/27/22

      455        447  

9.75%, 1/22/25

      100        95  

Vedanta Resources PLC,

      

6.00%, 1/31/19

      50        50  
  

 

 

     

 

 

  
        851  
     

 

 

  

Uruguay - 0.2%

      

Uruguay Government International Bond,

      

5.10%, 6/18/50

      164        148  
  

 

 

     

 

 

  

Venezuela - 1.3%

      

Petroleos de Venezuela S.A.,

      

5.25%, 4/12/17

      215        193  

8.50%, 11/2/17

      59        47  

8.50%, 10/27/20(2)

     50        37  

9.00%, 11/17/21

      37        20  

12.80%, 2/17/22

      65        40  

6.00%, 5/16/24

      472        182  

6.00%, 11/15/26

      70        27  

5.38%, 4/12/27

      127        47  

9.75%, 5/17/35

      25        12  

5.50%, 4/12/37

      60        22  

Venezuela Government International Bond,

      

7.00%, 12/1/18

      30        19  

7.75%, 10/13/19

      250        139  

6.00%, 12/9/20

      35        17  

12.80%, 8/23/22

      19        12  

9.00%, 5/7/23

      401        190  

8.25%, 10/13/24

      40        19  

7.65%, 4/21/25

      45        20  

11.80%, 10/21/26

      70        40  

9.25%, 9/15/27

      65        33  

9.25%, 5/7/28

      55        25  

12.00%, 8/5/31

      50        28  

9.38%, 1/13/34

      89        41  

7.00%, 3/31/38

      20        8  
  

 

 

     

 

 

  
        1,218  
     

 

 

  

Vietnam - 0.1%

      

Vietnam Government International Bond,

      

 

ACTIVE M/MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 83.5% continued

      

Vietnam - 0.1% continued

      

4.80%, 11/19/24

    $ 80      $ 79  
  

 

 

     

 

 

  

Zambia - 0.9%

      

Zambia Government International Bond,

      

8.50%, 4/14/24

      800        786  
  

 

 

     

 

 

  

Total Foreign Issuer Bonds

(Cost $79,139)

         76,269  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 8.9%

      

Northern Institutional Funds - Government Assets Portfolio,

      

0.32%(6) (7)

      8,169,248      $ 8,169  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $8,169)

         8,169  
     

 

 

  

Total Investments - 93.6%

(Cost $88,397)

         85,490  
     

 

 

  

Other Assets less Liabilities - 6.4%

         5,854  
     

 

 

  

NET ASSETS - 100.0%

       $ 91,344  
     

 

 

  

 

(1) Principal amount is in USD unless otherwise indicated.
(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(3) Variable rate security. Rate as of December 31, 2016 is disclosed.
(4) Step coupon bond. Rate as of December 31, 2016 is disclosed.
(5) Zero coupon bond.
(6) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(7) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the Fund had outstanding forward foreign currency exchange contracts as follows:

 

COUNTERPARTY

   

CONTRACTS TO

DELIVER

CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     

IN EXCHANGE
FOR CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     SETTLEMENT
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Barclays

    Brazilian Real     205      United States Dollar     63       1/4/17     $ —   * 

Barclays

    Brazilian Real     309      United States Dollar     95       1/4/17       —   * 

Barclays

    Brazilian Real     309      United States Dollar     95       1/4/17       —   * 

Barclays

    Brazilian Real     420      United States Dollar     129       1/4/17       —   * 

Barclays

    Brazilian Real     743      United States Dollar     216       1/4/17       (12 ) 

Barclays

    Brazilian Real     309      United States Dollar     92       2/2/17       (2 ) 

Barclays

    Brazilian Real     309      United States Dollar     92       2/2/17       (2 ) 

Barclays

    Chilean Peso     60,210      United States Dollar     92       1/17/17       2  

Barclays

    Indonesian Rupiah     3,164,794      United States Dollar     236       1/17/17       2  

Barclays

    Indonesian Rupiah     396,065      United States Dollar     29       6/5/17       —   * 

Barclays

    Indonesian Rupiah     1,142,000      United States Dollar     80       11/27/17       1  

Barclays

    Indonesian Rupiah     48,663      United States Dollar     3       11/27/17       —   * 

Barclays

    Indonesian Rupiah     1,193,825      United States Dollar     83       12/13/17       —   * 

Barclays

    Indonesian Rupiah     506,241      United States Dollar     35       12/14/17       —   * 

Barclays

    Peruvian Nuevo Sol     625      United States Dollar     182       2/28/17       (3 ) 

Barclays

    Russian Ruble     664      United States Dollar     11       1/17/17       —   * 

Barclays

    Russian Ruble     22,324      United States Dollar     360       1/17/17       (2 ) 

Barclays

    Singapore Dollar     79      United States Dollar     56       1/17/17       1  

Barclays

    United States Dollar     124      Brazilian Real     420       1/4/17       6  

Barclays

   

United States Dollar

     60      Brazilian Real     205       1/4/17       3  

Barclays

   

United States Dollar

     93      Brazilian Real     309       1/4/17       2  

Barclays

   

United States Dollar

     93      Brazilian Real     309       1/4/17       2  

Barclays

   

United States Dollar

     228      Brazilian Real     743       1/4/17       —   * 

Barclays

   

United States Dollar

     42      Colombian Peso     127,480       1/17/17       —   * 

Barclays

   

United States Dollar

     191      Hungarian Forint     56,801       2/17/17       3  

Barclays

   

United States Dollar

     28      Indonesian Rupiah     396,065       6/5/17       1  

Barclays

   

United States Dollar

     40      Indonesian Rupiah     590,862       11/27/17       1  

Barclays

   

United States Dollar

     14      Indonesian Rupiah     199,741       11/27/17       —   * 

Barclays

   

United States Dollar

     14      Indonesian Rupiah     200,030       11/27/17       —   * 

Barclays

   

United States Dollar

     14      Indonesian Rupiah     200,030       11/27/17       —   * 

Barclays

   

United States Dollar

     20      Indonesian Rupiah     297,776       12/4/17       1  

Barclays

   

United States Dollar

     20      Indonesian Rupiah     296,749       12/4/17       1  

Barclays

   

United States Dollar

     30      Indonesian Rupiah     433,317       12/13/17       —   * 

Barclays

   

United States Dollar

     36      Indonesian Rupiah     508,958       12/13/17       (1 ) 

Barclays

   

United States Dollar

     48      Indonesian Rupiah     681,751       12/13/17       (1 ) 

Barclays

   

United States Dollar

     35      Indonesian Rupiah     506,241       12/14/17       —   * 

Barclays

   

United States Dollar

     3      Indonesian Rupiah     48,663       12/27/17       —   * 

 

NORTHERN FUNDS QUARTERLY REPORT    7    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND PORTFOLIO continued

 

COUNTERPARTY

   

CONTRACTS TO

DELIVER

CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     

IN EXCHANGE
FOR CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     SETTLEMENT
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Barclays

    United States Dollar     35      Indonesian Rupiah     506,241       12/27/17     $ —   * 

Barclays

    United States Dollar     60      Indonesian Rupiah     858,818       12/27/17       —   * 

Barclays

    United States Dollar     83      Indonesian Rupiah     1,193,825       12/27/17       —   * 

Barclays

    United States Dollar     3      Mexican Peso     61       1/4/17       —   * 

Barclays

    United States Dollar     67      Mexican Peso     1,385       1/17/17       —   * 

Barclays

    United States Dollar     194      Peruvian Nuevo Sol     666       2/28/17       3  

Barclays

    United States Dollar     15      Peruvian Nuevo Sol     51       2/28/17       —   * 

Barclays

    United States Dollar     211      Polish Zloty     890       1/17/17       2  

Barclays

    United States Dollar     201      Romanian Leu     854       1/17/17       (3 ) 

Barclays

    United States Dollar     59      Russian Ruble     3,818       1/17/17       3  

Barclays

    United States Dollar     38      Russian Ruble     2,460       1/17/17       2  

Barclays

    United States Dollar     176      Russian Ruble     10,951       1/17/17       1  

Barclays

    United States Dollar     45      South African Rand     621       1/17/17       —   * 

Barclays

    United States Dollar     78      Thai Baht     2,786       2/17/17       —   * 

Barclays

    United States Dollar     124      Thai Baht     4,437       2/17/17       —   * 

Barclays

    United States Dollar     363      Thai Baht     12,929       2/17/17       (2 ) 

Barclays

    United States Dollar     165      Turkish Lira     583       1/17/17       —   * 

Barclays

    United States Dollar     180      Turkish Lira     630       1/17/17       (2 ) 

BNP

    Brazilian Real     1,735      United States Dollar     532       1/4/17       —   * 

BNP

    Brazilian Real     2,030      United States Dollar     591       1/4/17       (33 ) 

BNP

    Brazilian Real     293      United States Dollar     89       2/2/17       —   * 

BNP

   

Brazilian Real

     1,735      United States Dollar     525       2/2/17       (2 ) 

BNP

   

Chinese Yuan Renminbi

     11,076      United States Dollar     1,611       1/25/17       33  

BNP

   

Colombian Peso

     182,173      United States Dollar     59       1/25/17       (1 ) 

BNP

   

Colombian Peso

     200,093      United States Dollar     63       1/25/17       (3 ) 

BNP

   

Euro

     602      United States Dollar     648       3/9/17       12  

BNP

   

Hong Kong Dollar

     3,559      United States Dollar     459       1/25/17       —   * 

BNP

   

Hungarian Forint

     23,333      United States Dollar     80       1/25/17       1  

BNP

   

Indian Rupee

     15,897      United States Dollar     234       1/25/17       1  

BNP

   

Indonesian Rupiah

     32,330,236      United States Dollar     2,416       1/25/17       29  

BNP

   

Indonesian Rupiah

     5,022,405      United States Dollar     371       1/25/17       —   * 

BNP

   

Indonesian Rupiah

     878,784      United States Dollar     64       1/25/17       (1 ) 

BNP

    Korean Won     538,734      United States Dollar     465       1/25/17       19  

BNP

    Korean Won     243,302      United States Dollar     208       1/25/17       7  

BNP

    Korean Won     534,413      United States Dollar     443       1/25/17       1  

BNP

    Malaysian Ringgit     815      United States Dollar     182       1/25/17       —   * 

BNP

    Malaysian Ringgit     1,020      United States Dollar     226       1/25/17       (1 ) 

BNP

    Mexican Peso     8,763      United States Dollar     428       1/25/17       7  

BNP

    Mexican Peso     5,688      United States Dollar     275       1/25/17       2  

BNP

    Mexican Peso     4,395      United States Dollar     212       1/25/17       1  

BNP

    Mexican Peso     1,677      United States Dollar     81       1/25/17       1  

BNP

    Mexican Peso     4,410      United States Dollar     209       1/25/17       (3 ) 

BNP

    Peruvian Nuevo Sol     62      United States Dollar     18       1/25/17       —   * 

BNP

    Polish Zloty     881      Euro     198       1/25/17       (2 ) 

BNP

    Polish Zloty     191      United States Dollar     46       1/25/17       —   * 

BNP

    Romanian Leu     119      United States Dollar     28       1/25/17       —   * 

BNP

    Russian Ruble     3,350      United States Dollar     51       1/25/17       (3 ) 

BNP

    Russian Ruble     5,894      United States Dollar     91       1/25/17       (5 ) 

BNP

    Russian Ruble     13,251      United States Dollar     206       1/25/17       (9 ) 

BNP

    Russian Ruble     33,193      United States Dollar     515       1/25/17       (22 ) 

BNP

    South African Rand     2,949      United States Dollar     214       1/25/17       —   * 

BNP

    South African Rand     827      United States Dollar     60       1/25/17       —   * 

BNP

   

South African Rand

     1,182      United States Dollar     85       1/25/17       (1 ) 

BNP

   

Taiwan Dollar

     14,805      United States Dollar     463       1/25/17       6  

BNP

   

Taiwan Dollar

     5,921      United States Dollar     184       1/25/17       1  

BNP

   

Thai Baht

     2,422      United States Dollar     68       1/25/17       —   * 

BNP

   

Turkish Lira

     520      United States Dollar     150       1/25/17       4  

BNP

   

United States Dollar

     530      Brazilian Real     1,735       1/4/17       2  

BNP

   

United States Dollar

     623      Brazilian Real     2,030       1/4/17       —   * 

BNP

   

United States Dollar

     90      Brazilian Real     293       1/5/17       —   * 

BNP

   

United States Dollar

     22      Chilean Peso     14,173       1/25/17       (1 ) 

BNP

   

United States Dollar

     63      Chinese Yuan Renminbi     438       1/25/17       (1 ) 

BNP

   

United States Dollar

     924      Colombian Peso     2,821,266       1/25/17       11  

BNP

   

United States Dollar

     218      Colombian Peso     656,459       1/25/17       (1 ) 

BNP

   

United States Dollar

     39      Euro     36       3/9/17       (1 ) 

BNP

   

United States Dollar

     28      Hungarian Forint     8,229       1/25/17       —   * 

BNP

   

United States Dollar

     444      Indian Rupee     30,344       1/25/17       2  

BNP

   

United States Dollar

     234      Indian Rupee     16,007       1/25/17       1  

BNP

   

United States Dollar

     121      Indonesian Rupiah     1,649,667       1/25/17       1  

BNP

   

United States Dollar

     81      Indonesian Rupiah     1,108,971       1/25/17       1  

 

ACTIVE M/MULTI-MANAGER FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

COUNTERPARTY

   

CONTRACTS TO

DELIVER

CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     

IN EXCHANGE
FOR CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     SETTLEMENT
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

BNP

    United States Dollar     18      Korean Won     21,081       1/25/17     $ (1 ) 

BNP

    United States Dollar     221      Korean Won     261,003       1/25/17       (5 ) 

BNP

    United States Dollar     222      Korean Won     261,818       1/25/17       (5 ) 

BNP

    United States Dollar     331      Malaysian Ringgit     1,491       1/25/17       1  

BNP

    United States Dollar     80      Malaysian Ringgit     344       1/25/17       (4 ) 

BNP

    United States Dollar     227      Mexican Peso     4,843       1/25/17       6  

BNP

    United States Dollar     141      Mexican Peso     2,981       1/25/17       2  

BNP

    United States Dollar     28      Mexican Peso     580       1/25/17       —   * 

BNP

    United States Dollar     386      Peruvian Nuevo Sol     1,318       1/25/17       5  

BNP

    United States Dollar     91      Philippine Peso     4,479       1/25/17       (1 ) 

BNP

    United States Dollar     20      Romanian Leu     85       1/25/17       —   * 

BNP

    United States Dollar     419      Romanian Leu     1,724       1/25/17       (19 ) 

BNP

    United States Dollar     239      Russian Ruble     15,555       1/25/17       13  

BNP

    United States Dollar     225      Russian Ruble     14,520       1/25/17       10  

BNP

    United States Dollar     461      South African Rand     6,445       1/25/17       6  

BNP

    United States Dollar     59      South African Rand     841       1/25/17       2  

BNP

    United States Dollar     104      South African Rand     1,441       1/25/17       1  

BNP

    United States Dollar     44      Taiwan Dollar     1,395       1/25/17       (1 ) 

BNP

    United States Dollar     1,718      Thai Baht     60,904       1/25/17       (18 ) 

BNP

    United States Dollar     52      Turkish Lira     188       1/25/17       1  

BNP

   

United States Dollar

     66      Turkish Lira     233       1/25/17       —   * 

Citibank

   

Brazilian Real

     296      United States Dollar     91       1/4/17       —   * 

Citibank

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

Citibank

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

Citibank

   

Brazilian Real

     743      United States Dollar     216       1/4/17       (12 ) 

Citibank

   

Brazilian Real

     293      United States Dollar     85       1/5/17       (5 ) 

Citibank

   

Brazilian Real

     309      United States Dollar     92       2/2/17       (2 ) 

Citibank

   

Brazilian Real

     309      United States Dollar     92       2/2/17       (2 ) 

Citibank

   

Colombian Peso

     656,666      United States Dollar     212       1/25/17       (6 ) 

Citibank

   

Colombian Peso

     569,944      United States Dollar     183       1/25/17       (6 ) 

Citibank

   

Euro

     391      Hungarian Forint     122,899       1/25/17       7  

Citibank

   

Euro

     451      Hungarian Forint     139,722       1/25/17       1  

Citibank

   

Euro

     18      Hungarian Forint     5,611       1/25/17       —   * 

Citibank

   

Euro

     899      Polish Zloty     3,929       1/25/17       (9 ) 

Citibank

    Hungarian Forint     268,232      Euro     875       1/25/17       9  

Citibank

    Hungarian Forint     13,807      United States Dollar     47       1/25/17       —   * 

Citibank

    Hungarian Forint     21,235      United States Dollar     72       1/25/17       —   * 

Citibank

    Indian Rupee     30,692      United States Dollar     443       1/25/17       (8 ) 

Citibank

    Indonesian Rupiah     1,197,120      United States Dollar     83       12/15/17       —   * 

Citibank

    Indonesian Rupiah     1,430,938      United States Dollar     99       12/20/17       —   * 

Citibank

    Indonesian Rupiah     2,139,431      United States Dollar     149       12/21/17       —   * 

Citibank

    Korean Won     505,431      United States Dollar     429       1/25/17       11  

Citibank

    Korean Won     264,531      United States Dollar     226       1/25/17       7  

Citibank

    Mexican Peso     10,386      United States Dollar     506       1/25/17       7  

Citibank

    Mexican Peso     1,313      United States Dollar     63       1/25/17       —   * 

Citibank

    Peruvian Nuevo Sol     327      United States Dollar     95       2/28/17       (2 ) 

Citibank

    Philippine Peso     201      United States Dollar     4       1/25/17       —   * 

Citibank

    Polish Zloty     80      Euro     18       1/25/17       —   * 

Citibank

    Polish Zloty     1,206      Euro     273       1/25/17       —   * 

Citibank

    Polish Zloty     96      United States Dollar     23       1/25/17       —   * 

Citibank

    Polish Zloty     364      United States Dollar     87       1/25/17       —   * 

Citibank

    Singapore Dollar     79      United States Dollar     56       1/17/17       1  

Citibank

    South African Rand     2,970      United States Dollar     215       1/25/17       —   * 

Citibank

    South African Rand     1,192      United States Dollar     84       1/25/17       (2 ) 

Citibank

    South African Rand     14,970      United States Dollar     1,020       1/25/17       (65 ) 

Citibank

   

Taiwan Dollar

     14,499      United States Dollar     453       1/25/17       6  

Citibank

   

Thai Baht

     1,322      United States Dollar     37       1/25/17       —   * 

Citibank

   

Turkish Lira

     1,125      United States Dollar     324       1/25/17       6  

Citibank

   

Turkish Lira

     270      United States Dollar     78       1/25/17       2  

Citibank

   

United States Dollar

     86      Brazilian Real     296       1/4/17       4  

Citibank

   

United States Dollar

     93      Brazilian Real     309       1/4/17       2  

Citibank

   

United States Dollar

     93      Brazilian Real     309       1/4/17       2  

Citibank

   

United States Dollar

     228      Brazilian Real     743       1/4/17       —   * 

Citibank

   

United States Dollar

     215      Colombian Peso     647,112       1/25/17       (1 ) 

Citibank

   

United States Dollar

     18      Hong Kong Dollar     140       1/25/17       —   * 

Citibank

   

United States Dollar

     625      Hungarian Forint     174,470       1/25/17       (31 ) 

Citibank

   

United States Dollar

     26      Indonesian Rupiah     362,118       12/15/17       —   * 

Citibank

   

United States Dollar

     59      Indonesian Rupiah     835,002       12/15/17       (1 ) 

Citibank

   

United States Dollar

     99      Indonesian Rupiah     1,430,938       12/20/17       —   * 

 

NORTHERN FUNDS QUARTERLY REPORT    9    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND PORTFOLIO continued

 

COUNTERPARTY

   

CONTRACTS TO

DELIVER

CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     

IN EXCHANGE
FOR CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     SETTLEMENT
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Citibank

    United States Dollar     60      Indonesian Rupiah     861,978       12/21/17     $ —   * 

Citibank

    United States Dollar     89      Indonesian Rupiah     1,277,453       12/21/17       (1 ) 

Citibank

    United States Dollar     58      Indonesian Rupiah     830,275       12/27/17       —   * 

Citibank

    United States Dollar     24      Indonesian Rupiah     346,640       12/27/17       —   * 

Citibank

    United States Dollar     24      Indonesian Rupiah     347,813       12/27/17       —   * 

Citibank

    United States Dollar     83      Indonesian Rupiah     1,197,120       12/27/17       —   * 

Citibank

    United States Dollar     99      Indonesian Rupiah     1,430,938       12/27/17       —   * 

Citibank

    United States Dollar     149      Indonesian Rupiah     2,139,431       12/27/17       —   * 

Citibank

    United States Dollar     83      Mexican Peso     1,733       1/25/17       —   * 

Citibank

    United States Dollar     189      Mexican Peso     3,918       1/25/17       (1 ) 

Citibank

    United States Dollar     212      Mexican Peso     4,384       1/25/17       (1 ) 

Citibank

    United States Dollar     203      Mexican Peso     4,146       1/25/17       (4 ) 

Citibank

    United States Dollar     71      Polish Zloty     300       1/25/17       1  

Citibank

    United States Dollar     45      Polish Zloty     189       1/25/17       —   * 

Citibank

    United States Dollar     1,102      Polish Zloty     4,382       1/25/17       (55 ) 

Citibank

    United States Dollar     71      Romanian Leu     303       1/17/17       (1 ) 

Citibank

    United States Dollar     211      South African Rand     3,054       1/25/17       10  

Citibank

    United States Dollar     199      South African Rand     2,881       1/25/17       10  

Citibank

    United States Dollar     68      South African Rand     995       1/25/17       4  

Citibank

    United States Dollar     37      Turkish Lira     130       1/25/17       —   * 

Citibank

   

United States Dollar

     62      Turkish Lira     215       1/25/17       (1 ) 

Citibank

   

United States Dollar

     513      Turkish Lira     1,677       1/25/17       (40 ) 

HSBC

   

United States Dollar

     120      Thai Baht     4,286       2/17/17       (1 ) 

JPMorgan Chase

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

JPMorgan Chase

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

JPMorgan Chase

   

Brazilian Real

     743      United States Dollar     216       1/4/17       (12 ) 

JPMorgan Chase

   

Brazilian Real

     309      United States Dollar     92       2/2/17       (2 ) 

JPMorgan Chase

   

Brazilian Real

     309      United States Dollar     92       2/2/17       (2 ) 

JPMorgan Chase

   

Chilean Peso

     60,210      United States Dollar     92       1/17/17       2  

JPMorgan Chase

   

Indonesian Rupiah

     3,164,794      United States Dollar     236       1/17/17       2  

JPMorgan Chase

   

Indonesian Rupiah

     1,862,250      United States Dollar     130       12/4/17       —   * 

JPMorgan Chase

   

Indonesian Rupiah

     25,391      United States Dollar     2       12/4/17       —   * 

JPMorgan Chase

    Indonesian Rupiah     589,456      United States Dollar     41       12/22/17       —   * 

JPMorgan Chase

    Peruvian Nuevo Sol     625      United States Dollar     182       2/28/17       (3 ) 

JPMorgan Chase

    Russian Ruble     3,006      United States Dollar     49       1/17/17       —   * 

JPMorgan Chase

    Russian Ruble     1,839      United States Dollar     30       1/17/17       —   * 

JPMorgan Chase

    Singapore Dollar     79      United States Dollar     56       1/17/17       1  

JPMorgan Chase

    South African Rand     3,259      United States Dollar     236       1/17/17       (1 ) 

JPMorgan Chase

    Thai Baht     2,753      United States Dollar     77       2/17/17       —   * 

JPMorgan Chase

    United States Dollar     93      Brazilian Real     309       1/4/17       2  

JPMorgan Chase

    United States Dollar     93      Brazilian Real     309       1/4/17       2  

JPMorgan Chase

    United States Dollar     228      Brazilian Real     743       1/4/17       —   * 

JPMorgan Chase

    United States Dollar     351      Hungarian Forint     104,214       2/17/17       5  

JPMorgan Chase

    United States Dollar     61      Indonesian Rupiah     896,089       12/4/17       1  

JPMorgan Chase

    United States Dollar     41      Indonesian Rupiah     589,456       12/22/17       —   * 

JPMorgan Chase

    United States Dollar     48      Indonesian Rupiah     696,117       12/27/17       —   * 

JPMorgan Chase

    United States Dollar     2      Indonesian Rupiah     25,391       12/27/17       —   * 

JPMorgan Chase

    United States Dollar     41      Indonesian Rupiah     589,456       12/27/17       —   * 

JPMorgan Chase

    United States Dollar     211      Polish Zloty     890       1/17/17       1  

JPMorgan Chase

    United States Dollar     71      Romanian Leu     303       1/17/17       (1 ) 

JPMorgan Chase

    United States Dollar     127      Russian Ruble     8,117       1/17/17       5  

JPMorgan Chase

    United States Dollar     101      Russian Ruble     6,460       1/17/17       4  

JPMorgan Chase

   

United States Dollar

     180      Turkish Lira     630       1/17/17       (2 ) 

Standard Chartered Bank

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

Standard Chartered Bank

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

Standard Chartered Bank

   

Brazilian Real

     743      United States Dollar     216       1/4/17       (12 ) 

Standard Chartered Bank

   

Brazilian Real

     309      United States Dollar     92       2/2/17       (2 ) 

Standard Chartered Bank

   

Brazilian Real

     309      United States Dollar     92       2/2/17       (2 ) 

Standard Chartered Bank

   

Chilean Peso

     60,210      United States Dollar     92       1/17/17       2  

Standard Chartered Bank

   

Hungarian Forint

     54,039      United States Dollar     180       1/17/17       (4 ) 

Standard Chartered Bank

   

Indonesian Rupiah

     3,164,794      United States Dollar     236       1/17/17       2  

Standard Chartered Bank

   

Indonesian Rupiah

     430,200      United States Dollar     30       12/13/17       —   * 

 

ACTIVE M/MULTI-MANAGER FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

COUNTERPARTY

   

CONTRACTS TO

DELIVER

CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     

IN EXCHANGE
FOR CURRENCY

   AMOUNT
(LOCAL
CURRENCY)
(000S)		     SETTLEMENT
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Standard Chartered Bank

    Indonesian Rupiah     905,079      United States Dollar     63       12/15/17     $ —   * 

Standard Chartered Bank

    Mexican Peso     1,039      United States Dollar     50       1/17/17       —   * 

Standard Chartered Bank

    Peruvian Nuevo Sol     625      United States Dollar     182       2/28/17       (3 ) 

Standard Chartered Bank

    Romanian Leu     258      United States Dollar     60       1/17/17       —   * 

Standard Chartered Bank

    Singapore Dollar     79      United States Dollar     56       1/17/17       1  

Standard Chartered Bank

    South African Rand     332      United States Dollar     24       1/5/17       —   * 

Standard Chartered Bank

    Thai Baht     1,443      United States Dollar     40       2/17/17       —   * 

Standard Chartered Bank

    Turkish Lira     106      United States Dollar     30       1/17/17       —   * 

Standard Chartered Bank

    Turkish Lira     355      United States Dollar     100       1/17/17       —   * 

Standard Chartered Bank

    United States Dollar     93      Brazilian Real     309       1/4/17       2  

Standard Chartered Bank

    United States Dollar     93      Brazilian Real     309       1/4/17       2  

Standard Chartered Bank

    United States Dollar     228      Brazilian Real     743       1/4/17       —   * 

Standard Chartered Bank

    United States Dollar     175      Hungarian Forint     52,107       2/17/17       2  

Standard Chartered Bank

    United States Dollar     27      Indonesian Rupiah     397,027       12/4/17       1  

Standard Chartered Bank

    United States Dollar     64      Indonesian Rupiah     905,079       12/15/17       (1 ) 

Standard Chartered Bank

    United States Dollar     48      Indonesian Rupiah     693,772       12/27/17       —   * 

Standard Chartered Bank

    United States Dollar     63      Indonesian Rupiah     905,079       12/27/17       —   * 

Standard Chartered Bank

    United States Dollar     50      Indonesian Rupiah     716,347       12/27/17       —   * 

Standard Chartered Bank

    United States Dollar     66      Mexican Peso     1,350       1/4/17       (1 ) 

Standard Chartered Bank

    United States Dollar     211      Polish Zloty     890       1/17/17       1  

Standard Chartered Bank

   

United States Dollar

     30      Polish Zloty     125       1/17/17       —   * 

Standard Chartered Bank

   

United States Dollar

     111      Romanian Leu     473       1/17/17       (1 ) 

Standard Chartered Bank

   

United States Dollar

     104      South African Rand     1,460       1/17/17       2  

Standard Chartered Bank

   

United States Dollar

     30      Thai Baht     1,073       2/17/17       —   * 

Standard Chartered Bank

   

United States Dollar

     416      Thai Baht     14,810       2/17/17       (2 ) 

Standard Chartered Bank

   

United States Dollar

     124      Turkish Lira     439       1/17/17       —   * 

Standard Chartered Bank

   

United States Dollar

     98      Turkish Lira     343       1/17/17       (1 ) 

Standard Chartered Bank

   

United States Dollar

     180      Turkish Lira     630       1/17/17       (2 ) 

UBS

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

UBS

   

Brazilian Real

     309      United States Dollar     95       1/4/17       —   * 

UBS

    Brazilian Real     743      United States Dollar     216       1/4/17       (12 ) 

UBS

    Brazilian Real     309      United States Dollar     92       2/2/17       (2 ) 

UBS

    Brazilian Real     309      United States Dollar     92       2/2/17       (2 ) 

UBS

    Chilean Peso     60,210      United States Dollar     92       1/17/17       2  

UBS

    United States Dollar     93      Brazilian Real     309       1/4/17       2  

UBS

   

United States Dollar

     93      Brazilian Real     309       1/4/17       2  

UBS

   

United States Dollar

     228      Brazilian Real     743       1/4/17       —   * 

UBS

    United States Dollar     180      Turkish Lira     630       1/17/17       (2 ) 
             

 

 

  

Total

               $ 140  
             

 

 

  

 

* Amount rounds to less than one thousand.

 

NORTHERN FUNDS QUARTERLY REPORT    11    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND continued

 

At December 31, 2016, the Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		     NOTIONAL
AMOUNT
(000S)		      CONTRACT
POSITION		      CONTRACT
EXP.		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

10-Year Euro Bond

      (2 )    $ 346        Short        3/17      $ (6 ) 

10-Year U.S. Treasury Note

      (3 )      373        Short        3/17        —   * 

Euro Dollar

      (49 )      12,064        Short        12/17        45  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total

               $ 39  
             

 

 

  

 

* Amount rounds to less than one thousand.

As of December 31, 2016, the Fund had the following credit default swap agreements outstanding:

 

COUNTERPARTY

   BUY/SELL
PROTECTION		     (PAY)/
RECEIVE
FIXED
RATE		    

REFERENCE ENTITY/
SECURITY

   NOTIONAL
AMOUNT		     EXPIRATION
DATE		     FAIR
VALUE
(000S)		     PREMIUMS
PAID/
(RECEIVED)
(000S)		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

Citibank

     Buy       (1.00 )%    Colombia Government Bond, 10.375%, 1/28/33   $ 374,000       12/20/21     $ 11     $ 13     $ (2 ) 

BNP

     Buy       (1.00 )%    Colombia Government Bond, 10.375%, 1/28/33     189,000       12/20/21       6       7       (1 ) 

BNP

     Buy       (1.00 )%    Colombia Government Bond, 10.375%, 1/28/33     233,000       12/20/21       7       8       (1 ) 

BNP

     Buy       (1.00 )%    China Government Bond, 7.50%, 10/28/27     1,000,000       12/20/21       8       7       1  

BNP

     Buy       (1.00 )%    China Government Bond, 7.50%, 10/28/27     900,000       12/20/21       7       4       3  
 

 

 

    

 

 

    

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

                 $ —    
               

 

 

  

As of December 31, 2016, the Fund had the following currency swap agreements outstanding:

 

COUNTERPARTY

   PAY RATE INDEX/
PAY RATE		    

RECEIVE RATE/

RECEIVE RATE INDEX

   NOTIONAL
AMOUNT		     NOTIONAL
CURRENCY		     EXPIRATION
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

BNP

     8.68%     3-month USD LIBOR BBA     2,866,397       USD       1/11/18     $ 13  

BNP

     9.04%     3-month USD LIBOR BBA     1,850,909       USD       2/15/18       1  

BNP

     8.07%     3-month USD LIBOR BBA     2,692,856       USD       3/20/18       23  
 

 

 

    

 

  

 

 

    

 

 

    

 

 

    

 

 

  

Total

             $ 37  
           

 

 

  

As of December 31, 2016, the Fund had the following bilateral interest rate swap agreements outstanding:

 

COUNTERPARTY

  

PAY RATE INDEX/

PAY RATE

   RECEIVE RATE/
RECEIVE RATE INDEX		     NOTIONAL
AMOUNT		     NOTIONAL
CURRENCY		     EXPIRATION
DATE		     UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

BNP

   3.52%     China 7 Day Repo Rate       3,500,000       CNY       12/12/21     $ 6  

BNP

   Brazil CETIP Interbank Deposit Rate     12.63%       3,711,015       BRL       1/2/18       4  

Citibank

   Brazil CETIP Interbank Deposit Rate     12.24%       2,725,903       BRL       1/2/19       14  
 

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

             $ 24  
           

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

As of December 31, 2016, the Fund had the following centrally cleared interest rate swap agreements outstanding:

 

PAY RATE INDEX/ PAY RATE

   

RECEIVE RATE/ RECEIVE RATE
INDEX

    NOTIONAL
AMOUNT		      NOTIONAL
CURRENCY		      EXPIRATION
DATE		      UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		  

1.29%

    Budapest Interbank Offered Rate 6 Month      142,498,870        HUF        12/9/21      $ (4 ) 

1.29%

    Budapest Interbank Offered Rate 6 Month      146,061,020        HUF        12/12/21        (4 ) 

Brazil CETIP Interbank Deposit Rate

    11.78%      1,727,997        BRL        1/4/21        11  
  

 

   

 

 

     

 

 

     

 

 

     

 

 

  

Total

                $ 3  
              

 

 

  

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

AA

      0.0 %(1) 

A

      12.1  

BBB

      18.2  

BB

      30.9  

B

      22.3  

CCC or Below

      5.2  

Non-Rated

      1.7  

Cash Equivalents

      9.6  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are compiled from two external rating agencies: Moody’s and S&P Global. The Fund assigns 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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.

 

(1)  Rounds to less than 0.1%.

At December 31, 2016, the industry sectors for the Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Basic Materials

      0.2 % 

Communications

      0.9  

Energy

      6.2  

Financial

      3.0  

Government

      88.8  

Industrial

      0.4  

Utilities

      0.5  
  

 

 

  

Total

      100.0 % 
  

 

 

  

At December 31, 2016, the Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

United States Dollar

      54.2 % 

Indonesian Rupiah

      7.2  

Brazilian Real

      6.0  

South African Rand

      5.6  

Mexican Peso

      5.6  

All other currencies less than 5%

      21.4  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    13    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER EMERGING MARKETS DEBT OPPORTUNITY FUND PORTFOLIO continued    DECEMBER 31, 2016 (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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		     LEVEL 2
(000S)		     LEVEL 3
(000S)		      TOTAL
(000S)		  

Corporate Bonds(1)

   $ —       $ 1,052     $ —        $ 1,052  

Foreign Issuer Bonds(1)

     —         76,269       —          76,269  

Investment Companies

      8,169       —         —          8,169  
  

 

 

    

 

 

    

 

 

     

 

 

  

Total Investments

    $ 8,169     $ 77,321     $ —        $ 85,490  
  

 

 

    

 

 

    

 

 

     

 

 

  

OTHER FINANCIAL INSTRUMENTS

                          

Assets

          

Forward Foreign Currency Exchange Contracts

    $ —       $ 363     $ —        $ 363  

Futures Contracts

      45       —         —          45  

Credit Default Swap Agreements

      —         4       —          4  

Currency Swap Agreements

      —         37       —          37  

Bilateral Interest Rate Swap Agreements

      —         35       —          35  

Liabilities

          

Forward Foreign Currency Exchange Contracts

      —         (503 )      —          (503 ) 

Futures Contracts

      (6 )      —         —          (6 ) 

Credit Default Swap Agreements

      —         (4 )      —          (4 ) 

Centrally Cleared Interest Rate Swap Agreements

      —         (8 )      —          (8 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Total Other Financial Instruments

    $ 39     $ (76 )    $ —        $ (37 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 88,836  
  

 

 

  

Gross tax appreciation of investments

    $ 1,447  

Gross tax depreciation of investments

      (4,766 ) 
  

 

 

  

Net tax depreciation of investments

    $ (3,319 ) 
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE,
BEGINNING
OF PERIOD
(000S)		      PURCHASES
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 4,140      $ 76,867      $ 72,838      $ 9      $ 8,169  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF CURRENCY ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

BRL - Brazilian Real

CLP - Chilean Peso

CNY - Chinese Yuan Renminbi

COP - Colombian Peso

EUR - Euro

GHS - Ghanaian Cedi

HUF - Hungarian Forint

IDR - Indonesian Rupiah

MXN - Mexican Peso

MYR - Malaysian Ringgit

PEN - Peruvian Nuevo Sol

PHP - Philippine Peso

PLN - Polish Zloty

RON - Romanian Leu

RUB - Russian Ruble

THB - Thai Baht

TRY - Turkish Lira

USD - United States Dollar

ZAR - South African Rand

 

ACTIVE M/MULTI-MANAGER FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CONVERTIBLE BONDS - 0.7%

 

Coal Operations - 0.7%

      

Foresight Energy LLC/Foresight Energy Finance Corp.,

      

15.00%, 10/3/17(2)

   $ 2,379      $ 2,361  
  

 

 

     

 

 

  

Exploration & Production - 0.0%

      

Chesapeake Energy Corp.,

      

5.50%, 9/15/26(3) (4)

      25        27  
  

 

 

     

 

 

  

Total Convertible Bonds

(Cost $2,233)

         2,388  
     

 

 

  

CORPORATE BONDS - 62.9%

      

Advertising & Marketing - 0.2%

      

Acosta, Inc.,

      

7.75%, 10/1/22(3)

     890        748  

Lamar Media Corp.,

      

5.75%, 2/1/26

      100        105  
  

 

 

     

 

 

  
        853  
     

 

 

  

Aerospace & Defense - 0.1%

      

Arconic, Inc.,

      

5.13%, 10/1/24

      145        149  

TransDigm, Inc.,

      

6.00%, 7/15/22

      90        93  

6.38%, 6/15/26(3)

     250        257  
  

 

 

     

 

 

  
        499  
     

 

 

  

Airlines - 0.0%

      

Allegiant Travel, Co.,

      

5.50%, 7/15/19

      100        103  
  

 

 

     

 

 

  

Apparel & Textile Products - 0.1%

      

Hanesbrands, Inc.,

      

4.88%, 5/15/26(3)

     400        391  
  

 

 

     

 

 

  

Auto Parts Manufacturing - 0.2%

      

American Axle & Manufacturing, Inc.,

      

6.63%, 10/15/22

      150        155  

Cooper-Standard Automotive, Inc.,

      

5.63%, 11/15/26(3)

     75        74  

Goodyear Tire & Rubber (The) Co.,

      

7.00%, 5/15/22

      50        53  

5.00%, 5/31/26

      225        224  

ZF North America Capital, Inc.,

      

4.00%, 4/29/20(3)

     180        187  
  

 

 

     

 

 

  
        693  
     

 

 

  

Banks - 0.0%

      

Washington Mutual Bank,

      

3.25%, 12/31/40(5)

     250        53  
  

 

 

     

 

 

  

Cable & Satellite - 2.7%

      

Altice US Finance I Corp.,

      

5.50%, 5/15/26(3)

     200        204  

Block Communications, Inc.,

      

7.25%, 2/1/20(3)

     250        253  

Cablevision Systems Corp.,

      

5.88%, 9/15/22

      100        98  

CCO Holdings LLC/CCO Holdings Capital Corp.,

      

5.25%, 3/15/21

      265        273  

6.63%, 1/31/22

      245        254  

5.25%, 9/30/22

      595        616  

5.13%, 5/1/23(3)

     255        263  

5.75%, 9/1/23

      400        418  

5.38%, 5/1/25(3)

     240        247  

5.75%, 2/15/26(3)

     555        574  

5.50%, 5/1/26(3)

     175        178  

5.88%, 5/1/27(3)

     415        431  

Cequel Communications Holdings I LLC/Cequel Capital Corp.,

      

6.38%, 9/15/20(3)

     900        927  

5.13%, 12/15/21(3)

     371        377  

7.75%, 7/15/25(3)

     125        138  

CSC Holdings LLC,

      

7.88%, 2/15/18

      225        237  

7.63%, 7/15/18

      285        304  

10.90%, 10/15/25(3)

     660        785  

5.50%, 4/15/27(3)

     140        142  

DISH DBS Corp.,

      

5.13%, 5/1/20

      50        52  

6.75%, 6/1/21

      410        445  

5.88%, 11/15/24

      920        947  

7.75%, 7/1/26

      185        209  

Midcontinent Communications/Midcontinent Finance Corp.,

      

6.88%, 8/15/23(3)

     50        53  

RCN Telecom Services LLC/RCN Capital Corp.,

      

8.50%, 8/15/20(3)

     175        185  

 

NORTHERN FUNDS QUARTERLY REPORT    1    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Cable & Satellite - 2.7% continued

      

Wave Holdco LLC/Wave Holdco Corp.,

      

8.25%, 7/15/19(2) (3)

    $ 318      $ 323  

WaveDivision Escrow LLC/WaveDivision Escrow Corp.,

      

8.13%, 9/1/20(3)

     100        104  

WideOpenWest Finance LLC/WideOpenWest Capital Corp.,

      

10.30%, 7/15/19

      235        248  
  

 

 

     

 

 

  
        9,285  
     

 

 

  

Casinos & Gaming - 2.0%

      

Boyd Gaming Corp.,

      

6.88%, 5/15/23

      850        914  

6.38%, 4/1/26(3)

     575        619  

GLP Capital L.P./GLP Financing II, Inc.,

      

4.88%, 11/1/20

      705        740  

5.38%, 11/1/23

      345        369  

Golden Nugget Escrow, Inc.,

      

8.50%, 12/1/21(3)

     150        159  

Isle of Capri Casinos, Inc.,

      

8.88%, 6/15/20

      100        105  

5.88%, 3/15/21

      375        388  

Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp.,

      

10.30%, 11/15/22(3)

     550        560  

MGM Resorts International,

      

11.40%, 3/1/18

      100        111  

8.63%, 2/1/19

      285        320  

6.75%, 10/1/20

      400        445  

6.63%, 12/15/21

      130        145  

Mohegan Tribal Gaming Authority,

      

7.88%, 10/15/24(3)

     150        153  

Scientific Games International, Inc.,

      

6.25%, 9/1/20

      405        344  

6.63%, 5/15/21

      275        233  

10.00%, 12/1/22

      1,105        1,100  

Station Casinos LLC,

      

7.50%, 3/1/21

      210        220  
  

 

 

     

 

 

  
        6,925  
     

 

 

  

Chemicals - 0.3%

      

CF Industries, Inc.,

      

5.38%, 3/15/44

      75        62  

Momentive Performance Materials, Inc.,

      

3.88%, 10/24/21

      145        136  

Platform Specialty Products Corp.,

      

6.50%, 2/1/22(3)

     580        585  

TPC Group, Inc.,

      

8.75%, 12/15/20(3)

     250        211  

Valvoline, Inc.,

      

5.50%, 7/15/24(3)

     75        78  

Versum Materials, Inc.,

      

5.50%, 9/30/24(3)

     50        51  
  

 

 

     

 

 

  
        1,123  
     

 

 

  

Coal Operations - 2.1%

      

Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp.,

      

8.50%, 12/15/19

      200        185  

12.00%, 11/1/21

      75        78  

6.38%, 3/15/24

      50        36  

CONSOL Energy, Inc.,

      

5.88%, 4/15/22

      50        49  

Contura Energy, Inc.,

      

10.00%, 8/1/21(3)

     50        53  

Foresight Energy LLC/Foresight Energy Finance Corp.,

      

10.00%, 8/15/21(3) (6)

      6,622        6,457  

Murray Energy Corp.,

      

11.30%, 4/15/21(3)

     500        388  

Peabody Energy Corp.,

      

10.00%, 3/15/22(3) (4) (5)

      200        178  
  

 

 

     

 

 

  
        7,424  
     

 

 

  

Commercial Finance - 1.5%

      

CIT Group, Inc.,

      

4.25%, 8/15/17

      190        193  

5.25%, 3/15/18

      765        793  

6.63%, 4/1/18(3)

     980        1,033  

5.00%, 5/15/18(3)

     1,005        1,017  

5.50%, 2/15/19(3)

     540        570  

3.88%, 2/19/19

      355        362  

International Lease Finance Corp.,

      

3.88%, 4/15/18

      1,165        1,187  
  

 

 

     

 

 

  
        5,155  
     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Communications Equipment - 0.2%

      

Alcatel-Lucent USA, Inc.,

      

6.50%, 1/15/28

    $ 50      $ 52  

6.45%, 3/15/29

      100        104  

Avaya, Inc.,

      

7.00%, 4/1/19(3)

     250        219  

9.00%, 4/1/19(3)

     25        22  

CommScope Technologies Finance LLC,

      

6.00%, 6/15/25(3)

     205        217  

Riverbed Technology, Inc.,

      

8.88%, 3/1/23(3)

     125        132  
  

 

 

     

 

 

  
        746  
     

 

 

  

Construction Materials Manufacturing - 0.3%

      

NWH Escrow Corp.,

      

7.50%, 8/1/21(3)

     25        21  

Standard Industries, Inc.,

      

5.38%, 11/15/24(3)

     250        257  

US Concrete, Inc.,

      

6.38%, 6/1/24

      120        127  

USG Corp.,

      

8.25%, 1/15/18

      505        534  

5.50%, 3/1/25(3)

     100        103  
  

 

 

     

 

 

  
        1,042  
     

 

 

  

Consumer Finance - 2.9%

      

Alliance Data Systems Corp.,

      

6.38%, 4/1/20(3)

     75        76  

5.88%, 11/1/21(3)

     100        102  

5.38%, 8/1/22(3)

     175        169  

Ally Financial, Inc.,

      

2.75%, 1/30/17

      195        195  

5.50%, 2/15/17

      195        196  

3.25%, 9/29/17

      420        423  

6.25%, 12/1/17

      870        903  

3.60%, 5/21/18

      1,085        1,093  

3.25%, 11/5/18

      495        496  

8.00%, 3/15/20

      870        985  

7.50%, 9/15/20

      25        28  

8.00%, 11/1/31

      325        377  

CNG Holdings, Inc.,

      

9.38%, 5/15/20(3) (4)

      50        43  

First Data Corp.,

      

7.00%, 12/1/23(3)

     675        719  

5.00%, 1/15/24(3)

     265        266  

Ladder Capital Finance Holdings L.L.L.P./Ladder Capital Finance Corp.,

      

5.88%, 8/1/21(3)

     1,240        1,178  

MGIC Investment Corp.,

      

5.75%, 8/15/23

      75        78  

Navient Corp.,

      

8.45%, 6/15/18

      100        108  

5.50%, 1/15/19

      155        161  

4.88%, 6/17/19

      1,050        1,087  

6.63%, 7/26/21

      25        26  

5.50%, 1/25/23

      350        339  

7.25%, 9/25/23

      50        51  

6.13%, 3/25/24

      525        510  

Springleaf Finance Corp.,

      

8.25%, 10/1/23

      440        460  

Starwood Property Trust, Inc.,

      

5.00%, 12/15/21(3)

     175        177  
  

 

 

     

 

 

  
        10,246  
     

 

 

  

Consumer Products - 1.3%

      

Edgewell Personal Care Co.,

      

4.70%, 5/19/21

      350        368  

4.70%, 5/24/22

      360        371  

HRG Group, Inc.,

      

7.75%, 1/15/22(3)

     3,434        3,580  

Prestige Brands, Inc.,

      

6.38%, 3/1/24(3)

     95        100  

Revlon Consumer Products Corp.,

      

6.25%, 8/1/24

      125        128  

Spectrum Brands, Inc.,

      

5.75%, 7/15/25

      120        125  
  

 

 

     

 

 

  
        4,672  
     

 

 

  

Consumer Services - 0.8%

      

ADT (The) Corp.,

      

4.88%, 7/15/32(3)

     250        205  

Aramark Services, Inc.,

      

5.13%, 1/15/24(3)

     475        490  

CEB, Inc.,

      

5.63%, 6/15/23(3)

     75        73  

Prime Security Services Borrower LLC/Prime Finance, Inc.,

      

9.25%, 5/15/23(3)

     175        190  

 

NORTHERN FUNDS QUARTERLY REPORT    3    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Consumer Services - 0.8% continued

      

R.R. Donnelley & Sons Co.,

      

7.63%, 6/15/20

    $ 720      $ 749  

7.88%, 3/15/21

      435        448  

7.00%, 2/15/22

      21        21  

6.50%, 11/15/23

      155        151  

6.00%, 4/1/24

      250        236  

Service Corp. International,

      

5.38%, 5/15/24

      385        401  
  

 

 

     

 

 

  
        2,964  
     

 

 

  

Containers & Packaging - 0.9%

      

Ball Corp.,

      

4.38%, 12/15/20

      370        387  

5.00%, 3/15/22

      115        120  

Berry Plastics Corp.,

      

6.00%, 10/15/22

      230        243  

5.13%, 7/15/23

      245        249  

BWAY Holding Co.,

      

9.13%, 8/15/21(3)

     335        353  

Graphic Packaging International, Inc.,

      

4.13%, 8/15/24

      50        48  

Multi-Color Corp.,

      

6.13%, 12/1/22(3)

     125        131  

Owens-Brockway Glass Container, Inc.,

      

5.38%, 1/15/25(3)

     250        252  

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) S.A.,

      

5.75%, 10/15/20

      425        438  

6.88%, 2/15/21

      165        170  

5.13%, 7/15/23(3)

     355        363  

7.00%, 7/15/24(3)

     50        53  

Sealed Air Corp.,

      

5.50%, 9/15/25(3)

     200        207  
  

 

 

     

 

 

  
        3,014  
     

 

 

  

Department Stores - 0.0%

      

JC Penney Corp., Inc.,

      

6.38%, 10/15/36

      100        84  

Neiman Marcus Group Ltd. LLC,

      

8.00%, 10/15/21(3)

     105        78  
  

 

 

     

 

 

  
        162  
     

 

 

  

Distributors - Consumer Discretionary - 0.6%

      

American Tire Distributors, Inc.,

      

10.30%, 3/1/22(3)

     2,320        2,226  
  

 

 

     

 

 

  

Diversified Banks - 0.5%

      

Bank of America Corp.,

      

8.00%, 1/30/18(7)

     800        822  

6.25%, 9/5/24(7)

     50        50  

Citigroup, Inc.,

      

6.25%, 8/15/26(7)

     100        103  

JPMorgan Chase & Co.,

      

6.13%, 4/30/24(7)

     25        25  

6.10%, 10/1/24(7)

     675        683  
  

 

 

     

 

 

  
        1,683  
     

 

 

  

Electrical Equipment Manufacturing - 0.0%

      

Cortes NP Acquisition Corp.,

      

9.25%, 10/15/24(3)

     75        79  
  

 

 

     

 

 

  

Entertainment Content - 0.4%

      

Liberty Interactive LLC,

      

8.50%, 7/15/29

      160        176  

Univision Communications, Inc.,

      

6.75%, 9/15/22(3)

     680        714  

5.13%, 5/15/23(3)

     305        301  

WMG Acquisition Corp.,

      

5.00%, 8/1/23(3)

     50        50  
  

 

 

     

 

 

  
        1,241  
     

 

 

  

Entertainment Resources - 0.6%

      

AMC Entertainment Holdings, Inc.,

      

5.75%, 6/15/25

      215        220  

Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp.,

      

5.25%, 3/15/21

      345        356  

LTF Merger Sub, Inc.,

      

8.50%, 6/15/23(3)

     350        362  

National CineMedia LLC,

      

5.75%, 8/15/26

      50        51  

Regal Entertainment Group,

      

5.75%, 3/15/22

      458        480  

5.75%, 6/15/23

      150        153  

Six Flags Entertainment Corp.,

      

5.25%, 1/15/21(3)

     310        317  
  

 

 

     

 

 

  
        1,939  
     

 

 

  

Exploration & Production - 4.6%

      

Alta Mesa Holdings L.P./Alta Mesa Finance Services Corp.,

      

7.88%, 12/15/24(3)

     325        336  

 

ACTIVE M/MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Exploration & Production - 4.6% continued

      

Antero Resources Corp.,

      

5.38%, 11/1/21

    $ 225      $ 230  

5.13%, 12/1/22

      820        828  

Bill Barrett Corp.,

      

7.63%, 10/1/19

      25        25  

7.00%, 10/15/22

      200        191  

Bonanza Creek Energy, Inc.,

      

6.75%, 4/15/21(5)

     165        123  

5.75%, 2/1/23(5)

     255        186  

California Resources Corp.,

      

8.00%, 12/15/22(3)

     175        156  

Callon Petroleum Co.,

      

6.13%, 10/1/24(3)

     100        103  

Carrizo Oil & Gas, Inc.,

      

7.50%, 9/15/20

      189        196  

6.25%, 4/15/23

      100        102  

Chesapeake Energy Corp.,

      

6.50%, 8/15/17

      225        232  

6.63%, 8/15/20

      75        76  

6.88%, 11/15/20

      50        50  

6.13%, 2/15/21

      600        585  

5.38%, 6/15/21

      485        455  

5.75%, 3/15/23

      200        188  

8.00%, 1/15/25(3)

     350        357  

Concho Resources, Inc.,

      

5.50%, 4/1/23

      270        280  

Continental Resources, Inc.,

      

5.00%, 9/15/22

      400        404  

4.50%, 4/15/23

      135        132  

3.80%, 6/1/24

      670        618  

4.90%, 6/1/44

      45        38  

Denbury Resources, Inc.,

      

6.38%, 8/15/21

      25        23  

Diamondback Energy, Inc.,

      

5.38%, 5/31/25(3)

     100        101  

Eclipse Resources Corp.,

      

8.88%, 7/15/23

      25        26  

EP Energy LLC/Everest Acquisition Finance, Inc.,

      

9.38%, 5/1/20

      1,663        1,533  

7.75%, 9/1/22

      250        202  

6.38%, 6/15/23

      840        664  

Extraction Oil & Gas Holdings LLC/Extraction Finance Corp.,

      

7.88%, 7/15/21(3)

     500        535  

Gulfport Energy Corp.,

      

6.00%, 10/15/24(3)

     125        127  

6.38%, 5/15/25(3)

     75        76  

Halcon Resources Corp.,

      

8.63%, 2/1/20 [EUR](3)

     130        135  

Jones Energy Holdings LLC/Jones Energy Finance Corp.,

      

9.25%, 3/15/23

      50        51  

Laredo Petroleum, Inc.,

      

7.38%, 5/1/22

      75        78  

6.25%, 3/15/23

      50        52  

Matador Resources Co.,

      

6.88%, 4/15/23(3)

     50        52  

Murphy Oil Corp.,

      

4.70%, 12/1/22

      175        169  

6.88%, 8/15/24

      225        240  

Newfield Exploration Co.,

      

5.75%, 1/30/22

      75        79  

5.38%, 1/1/26

      420        428  

Oasis Petroleum, Inc.,

      

6.88%, 3/15/22

      235        241  

Parsley Energy LLC/Parsley Finance Corp.,

      

6.25%, 6/1/24(3)

     50        53  

PDC Energy, Inc.,

      

6.13%, 9/15/24(3)

     125        128  

Range Resources Corp.,

      

5.00%, 8/15/22(3)

     730        725  

5.00%, 3/15/23(3)

     550        544  

4.88%, 5/15/25

      110        107  

Resolute Energy Corp.,

      

8.50%, 5/1/20

      150        153  

Rice Energy, Inc.,

      

6.25%, 5/1/22

      495        509  

RSP Permian, Inc.,

      

6.63%, 10/1/22

      430        455  

Sanchez Energy Corp.,

      

6.13%, 1/15/23

      295        280  

SM Energy Co.,

      

6.50%, 11/15/21

      75        76  

 

NORTHERN FUNDS QUARTERLY REPORT    5    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Exploration & Production - 4.6% continued

      

6.13%, 11/15/22

    $ 360      $ 364  

5.00%, 1/15/24

      150        141  

5.63%, 6/1/25

      110        106  

6.75%, 9/15/26

      75        77  

Southwestern Energy Co.,

      

7.50%, 2/1/18

      65        68  

5.80%, 1/23/20

      75        77  

6.70%, 1/23/25

      250        256  

Whiting Petroleum Corp.,

      

5.00%, 3/15/19

      470        472  

5.75%, 3/15/21

      155        154  

6.25%, 4/1/23

      400        400  

WPX Energy, Inc.,

      

7.50%, 8/1/20

      200        215  
  

 

 

     

 

 

  
        16,063  
     

 

 

  

Financial Services - 0.8%

      

FBM Finance, Inc.,

      

8.25%, 8/15/21(3)

     1,235        1,303  

Icahn Enterprises L.P./Icahn Enterprises Finance Corp.,

      

3.50%, 3/15/17

      430        431  

4.88%, 3/15/19

      360        363  

5.88%, 2/1/22

      560        556  

KCG Holdings, Inc.,

      

6.88%, 3/15/20(3)

     50        50  

Nationstar Mortgage LLC/Nationstar Capital Corp.,

      

6.50%, 6/1/22

      76        76  
  

 

 

     

 

 

  
        2,779  
     

 

 

  

Food & Beverage - 0.6%

      

Lamb Weston Holdings, Inc.,

      

4.63%, 11/1/24(3)

     25        25  

4.88%, 11/1/26(3)

     25        25  

Post Holdings, Inc.,

      

6.75%, 12/1/21(3)

     250        267  

6.00%, 12/15/22(3)

     500        522  

7.75%, 3/15/24(3)

     130        144  

Simmons Foods, Inc.,

      

7.88%, 10/1/21(3)

     980        1,009  
  

 

 

     

 

 

  
        1,992  
     

 

 

  

Forest & Paper Products Manufacturing - 0.0%

      

Appvion, Inc.,

      

9.00%, 6/1/20(3)

     225        126  
  

 

 

     

 

 

  

Hardware - 1.3%

      

CDW LLC/CDW Finance Corp.,

      

6.00%, 8/15/22

      50        53  

Diamond 1 Finance Corp./Diamond 2 Finance Corp.,

      

5.88%, 6/15/21(3)

     1,025        1,090  

6.02%, 6/15/26(3)

     405        439  

Diebold Nixdorf, Inc.,

      

8.50%, 4/15/24

      75        80  

EMC Corp.,

      

1.88%, 6/1/18

      985        974  

NCR Corp.,

      

6.38%, 12/15/23

      225        242  

Western Digital Corp.,

      

10.50%, 4/1/24(3)

     1,295        1,531  

Zebra Technologies Corp.,

      

7.25%, 10/15/22

      90        98  
  

 

 

     

 

 

  
        4,507  
     

 

 

  

Health Care Facilities & Services - 5.0%

      

CHS/Community Health Systems, Inc.,

      

8.00%, 11/15/19

      175        145  

7.13%, 7/15/20

      75        57  

6.88%, 2/1/22

      550        382  

DaVita, Inc.,

      

5.75%, 8/15/22

      200        209  

5.13%, 7/15/24

      185        185  

5.00%, 5/1/25

      190        187  

Envision Healthcare Corp.,

      

5.63%, 7/15/22

      220        227  

6.25%, 12/1/24(3)

     50        53  

Fresenius Medical Care US Finance II, Inc.,

      

6.50%, 9/15/18(3)

     700        740  

5.63%, 7/31/19(3)

     415        442  

5.88%, 1/31/22(3)

     205        224  

HCA, Inc.,

      

3.75%, 3/15/19

      250        257  

4.25%, 10/15/19

      590        614  

6.50%, 2/15/20

      335        367  

5.88%, 3/15/22

      55        59  

4.75%, 5/1/23

      165        169  

5.00%, 3/15/24

      130        134  

5.25%, 4/15/25

      230        240  

7.69%, 6/15/25

      740        805  

 

ACTIVE M/MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

 

Health Care Facilities & Services - 5.0% continued

      

7.58%, 9/15/25

    $ 100      $ 108  

4.50%, 2/15/27

      225        221  

7.50%, 11/6/33

      820        869  

7.75%, 7/15/36

      420        444  

IASIS Healthcare LLC/IASIS Capital Corp.,

      

8.38%, 5/15/19

      1,640        1,427  

Jaguar Holding Co. II/Pharmaceutical Product Development LLC,

      

6.38%, 8/1/23(3)

     180        193  

Kindred Healthcare, Inc.,

      

8.00%, 1/15/20

      435        433  

6.38%, 4/15/22

      75        67  

LifePoint Health, Inc.,

      

5.88%, 12/1/23

      125        127  

RegionalCare Hospital Partners Holdings, Inc.,

      

8.25%, 5/1/23(3)

     1,130        1,127  

Select Medical Corp.,

      

6.38%, 6/1/21

      100        100  

Surgery Center Holdings, Inc.,

      

8.88%, 4/15/21(3)

     1,160        1,235  

Team Health, Inc.,

      

7.25%, 12/15/23(3)

     405        461  

Tenet Healthcare Corp.,

      

6.25%, 11/1/18

      205        216  

6.00%, 10/1/20

      175        183  

7.50%, 1/1/22(3)

     305        318  

8.13%, 4/1/22

      490        462  

6.75%, 6/15/23

      2,670        2,356  

6.88%, 11/15/31

      1,215        937  

Universal Health Services, Inc.,

      

4.75%, 8/1/22(3)

     95        96  

Universal Hospital Services, Inc.,

      

7.63%, 8/15/20

      100        99  

Vizient, Inc.,

      

10.40%, 3/1/24(3)

     350        396  
  

 

 

     

 

 

  
        17,371  
     

 

 

  

Home Improvement - 0.1%

      

RSI Home Products, Inc.,

      

6.50%, 3/15/23(3)

     175        183  

Stock Building Supply LLC,

      

5.50%, 10/1/24(3)

     75        75  
  

 

 

     

 

 

  
        258  
     

 

 

  

Homebuilders - 1.1%

      

Beazer Homes USA, Inc.,

      

8.75%, 3/15/22(3)

     100        108  

CalAtlantic Group, Inc.,

      

8.38%, 5/15/18

      300        325  

8.38%, 1/15/21

      130        151  

5.38%, 10/1/22

      145        148  

5.25%, 6/1/26

      245        239  

K Hovnanian Enterprises, Inc.,

      

5.00%, 11/1/21

      385        289  

Lennar Corp.,

      

4.75%, 12/15/17

      335        340  

4.75%, 11/15/22

      555        569  

4.75%, 5/30/25

      445        434  

Meritage Homes Corp.,

      

6.00%, 6/1/25

      190        192  

PulteGroup, Inc.,

      

4.25%, 3/1/21

      95        97  

Shea Homes L.P./Shea Homes Funding Corp.,

      

6.13%, 4/1/25(3)

     95        92  

Taylor Morrison Communities, Inc./Monarch Communities, Inc.,

      

5.63%, 3/1/24(3)

     43        43  

Toll Brothers Finance Corp.,

      

4.00%, 12/31/18

      80        82  

4.38%, 4/15/23

      95        95  

TRI Pointe Group, Inc./TRI Pointe Homes, Inc.,

      

4.38%, 6/15/19

      610        621  

Weekley Homes LLC/Weekley Finance Corp.,

      

6.00%, 2/1/23

      75        67  
  

 

 

     

 

 

  
        3,892  
     

 

 

  

Industrial Other - 0.6%

      

AECOM,

      

5.88%, 10/15/24

      420        448  

 

NORTHERN FUNDS QUARTERLY REPORT    7    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Industrial Other - 0.6% continued

      

Ahern Rentals, Inc.,

      

7.38%, 5/15/23(3)

   $ 150      $ 126  

Engility Corp.,

      

8.88%, 9/1/24(3)

     50        52  

HD Supply, Inc.,

      

5.25%, 12/15/21(3)

     370        390  

5.75%, 4/15/24(3)

     190        201  

Herc Rentals, Inc.,

      

7.50%, 6/1/22(3)

     150        158  

7.75%, 6/1/24(3)

     225        237  

New Enterprise Stone & Lime Co., Inc.,

      

11.00%, 9/1/18

      325        324  

United Rentals North America, Inc.,

      

5.75%, 11/15/24

      110        116  
  

 

 

     

 

 

  
        2,052  
     

 

 

  

Internet Media - 0.1%

      

Netflix, Inc.,

      

5.50%, 2/15/22

      235        253  

4.38%, 11/15/26(3)

     130        126  
  

 

 

     

 

 

  
        379  
     

 

 

  

Machinery Manufacturing - 1.1%

      

BlueLine Rental Finance Corp.,

      

7.00%, 2/1/19(3)

     150        146  

Case New Holland Industrial, Inc.,

      

7.88%, 12/1/17

      282        297  

Cleaver-Brooks, Inc.,

      

8.75%, 12/15/19(3)

     1,270        1,322  

Cloud Crane LLC,

      

10.10%, 8/1/24(3)

     425        455  

CNH Industrial Capital LLC,

      

4.88%, 4/1/21

      145        151  

Manitowoc Foodservice, Inc.,

      

9.50%, 2/15/24

      155        179  

SPX FLOW, Inc.,

      

5.63%, 8/15/24(3)

     50        50  

5.88%, 8/15/26(3)

     50        50  

Terex Corp.,

      

6.50%, 4/1/20

      260        265  

6.00%, 5/15/21

      125        128  

Xerium Technologies, Inc.,

      

9.50%, 8/15/21(3)

     660        658  
  

 

 

     

 

 

  
        3,701  
     

 

 

  

Managed Care - 0.8%

      

MPH Acquisition Holdings LLC,

      

7.13%, 6/1/24(3)

     290        305  

Opal Acquisition, Inc.,

      

8.88%, 12/15/21(3)

     2,800        2,394  
  

 

 

     

 

 

  
        2,699  
     

 

 

  

Manufactured Goods - 0.9%

      

Grinding Media, Inc./MC Grinding Media Canada, Inc.,

      

7.38%, 12/15/23(3)

     50        53  

Material Science Corp.,

      

14.00%, 6/22/22(2) (3)

      1,400        1,262  

NCI Building Systems, Inc.,

      

8.25%, 1/15/23(3)

     230        248  

Novelis Corp.,

      

6.25%, 8/15/24(3)

     115        122  

5.88%, 9/30/26(3)

     260        263  

Optimas OE Solutions Holding LLC/Optimas OE Solutions, Inc.,

      

8.63%, 6/1/21(3)

     1,450        1,145  

Wise Metals Group LLC/Wise Alloys Finance Corp.,

      

8.75%, 12/15/18(3)

     100        104  
  

 

 

     

 

 

  
        3,197  
     

 

 

  

Mass Merchants - 0.1%

      

Dollar Tree, Inc.,

      

5.75%, 3/1/23

      375        397  
  

 

 

     

 

 

  

Medical Equipment & Devices Manufacturing - 0.1%

      

DJO Finco, Inc./DJO Finance LLC/DJO Finance Corp.,

      

8.13%, 6/15/21(3)

     295        256  

Hologic, Inc.,

      

5.25%, 7/15/22(3)

     170        179  
  

 

 

     

 

 

  
        435  
     

 

 

  

Metals & Mining - 3.9%

      

AK Steel Corp.,

      

7.63%, 5/15/20

      325        331  

Aleris International, Inc.,

      

7.88%, 11/1/20

      175        175  

Century Aluminum Co.,

      

7.50%, 6/1/21(3) (4)

      5,390        5,073  

Cliffs Natural Resources, Inc.,

      

8.25%, 3/31/20(3)

     100        110  

 

ACTIVE M/MULTI-MANAGER FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Metals & Mining - 3.9% continued

      

Freeport-McMoRan, Inc.,

      

2.30%, 11/14/17

    $ 75      $ 74  

2.38%, 3/15/18

      300        298  

6.50%, 11/15/20(3)

     550        565  

4.00%, 11/14/21

      205        200  

6.75%, 2/1/22(3)

     100        103  

3.55%, 3/1/22

      215        200  

3.88%, 3/15/23

      125        115  

4.55%, 11/14/24

      65        61  

5.40%, 11/14/34

      375        315  

5.45%, 3/15/43

      50        41  

Hecla Mining Co.,

      

6.88%, 5/1/21

      75        77  

International Wire Group, Inc.,

      

10.80%, 8/1/21(3)

     550        517  

Joseph T Ryerson & Son, Inc.,

      

11.00%, 5/15/22(3)

     1,760        1,936  

Real Alloy Holding, Inc.,

      

10.00%, 1/15/19(3)

     3,240        3,264  

Steel Dynamics, Inc.,

      

5.00%, 12/15/26(3)

     25        25  

SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp.,

      

7.38%, 2/1/20(3)

     25        25  
  

 

 

     

 

 

  
        13,505  
     

 

 

  

Oil & Gas Services & Equipment - 0.8%

      

Forum Energy Technologies, Inc.,

      

6.25%, 10/1/21

      2,170        2,170  

Global Marine, Inc.,

      

7.00%, 6/1/28

      25        20  

Nabors Industries, Inc.,

      

5.00%, 9/15/20

      50        51  

4.63%, 9/15/21

      25        26  

5.50%, 1/15/23(3)

     75        78  

Rowan Cos., Inc.,

      

7.38%, 6/15/25

      100        102  

SESI LLC,

      

7.13%, 12/15/21

      300        305  

Weatherford International LLC,

      

6.80%, 6/15/37

      25        21  
  

 

 

     

 

 

  
        2,773  
     

 

 

  

Pharmaceuticals - 0.6%

      

Endo Finance LLC/Endo Finco, Inc.,

      

7.25%, 1/15/22(3)

     200        184  

5.38%, 1/15/23(3)

     760        644  

inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc.,

      

7.50%, 10/1/24(3)

     680        712  

Nature’s Bounty (The) Co.,

      

7.63%, 5/15/21(3)

     335        347  

Valeant Pharmaceuticals International,

      

7.25%, 7/15/22(3)

     280        229  
  

 

 

     

 

 

  
        2,116  
     

 

 

  

Pipeline - 4.3%

      

American Midstream Partners L.P./American Midstream Finance Corp.,

      

8.50%, 12/15/21(3)

     100        99  

Antero Midstream Partners L.P./Antero Midstream Finance Corp.,

      

5.38%, 9/15/24(3)

     575        581  

Cheniere Corpus Christi Holdings LLC,

      

7.00%, 6/30/24(3)

     660        714  

5.88%, 3/31/25(3)

     225        230  

Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp.,

      

6.00%, 12/15/20

      630        646  

6.25%, 4/1/23

      315        321  

DCP Midstream LLC,

      

5.35%, 3/15/20(3)

     150        156  

4.75%, 9/30/21(3)

     100        101  

8.13%, 8/16/30

      35        39  

6.45%, 11/3/36(3)

     120        120  

6.75%, 9/15/37(3)

     120        121  

5.85%, 5/21/43(3) (8)

      70        59  

DCP Midstream Operating L.P.,

      

2.50%, 12/1/17

      165        164  

5.60%, 4/1/44

      160        146  

Energy Transfer Equity L.P.,

      

7.50%, 10/15/20

      255        284  

5.88%, 1/15/24

      670        692  

5.50%, 6/1/27

      145        141  

 

NORTHERN FUNDS QUARTERLY REPORT    9    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

 

Pipeline - 4.3% continued

      

Holly Energy Partners L.P./Holly Energy Finance Corp.,

      

6.50%, 3/1/20

    $ 500      $ 516  

6.00%, 8/1/24(3)

     75        78  

MPLX L.P.,

      

4.50%, 7/15/23

      163        166  

4.88%, 12/1/24

      530        546  

ONEOK, Inc.,

      

6.00%, 6/15/35

      205        199  

PBF Logistics L.P./PBF Logistics Finance Corp.,

      

6.88%, 5/15/23

      100        98  

Regency Energy Partners L.P./Regency Energy Finance Corp.,

      

5.50%, 4/15/23

      510        527  

Rockies Express Pipeline LLC,

      

5.63%, 4/15/20(3)

     505        532  

7.50%, 7/15/38(3)

     140        143  

6.88%, 4/15/40(3)

     275        274  

Rose Rock Midstream L.P./Rose Rock Finance Corp.,

      

5.63%, 7/15/22

      450        442  

5.63%, 11/15/23

      270        263  

Sabine Pass Liquefaction LLC,

      

5.63%, 2/1/21

      220        235  

5.63%, 4/15/23

      205        218  

5.75%, 5/15/24

      395        424  

5.63%, 3/1/25

      2,055        2,199  

5.88%, 6/30/26(3)

     190        205  

5.00%, 3/15/27(3)

     75        76  

Summit Midstream Holdings LLC/Summit Midstream Finance Corp.,

      

7.50%, 7/1/21

      50        52  

5.50%, 8/15/22

      175        171  

Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp.,

      

5.50%, 9/15/24(3)

     75        74  

Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,

      

5.25%, 5/1/23

      575        581  

4.25%, 11/15/23

      675        645  

6.75%, 3/15/24

      160        172  

5.13%, 2/1/25(3)

     165        164  

5.38%, 2/1/27(3)

     140        139  

Tesoro Logistics L.P./Tesoro Logistics Finance Corp.,

      

5.88%, 10/1/20

      200        206  

6.13%, 10/15/21

      175        184  

6.25%, 10/15/22

      110        117  

6.38%, 5/1/24

      100        107  

Williams (The) Cos., Inc.,

      

7.50%, 1/15/31

      65        73  

8.75%, 3/15/32

      50        60  

5.75%, 6/24/44

      240        233  

Williams Partners L.P./ACMP Finance Corp.,

      

6.13%, 7/15/22

      105        108  

4.88%, 3/15/24

      140        141  
  

 

 

     

 

 

  
        14,982  
     

 

 

  

Power Generation - 1.4%

      

Calpine Corp.,

      

6.00%, 1/15/22(3)

     360        376  

5.38%, 1/15/23

      620        606  

5.50%, 2/1/24

      425        410  

5.75%, 1/15/25

      75        72  

Dynegy, Inc.,

      

6.75%, 11/1/19

      160        163  

7.38%, 11/1/22

      500        477  

5.88%, 6/1/23

      165        143  

7.63%, 11/1/24

      125        115  

8.00%, 1/15/25(3)

     150        141  

NRG Energy, Inc.,

      

6.25%, 7/15/22

      540        541  

6.63%, 3/15/23

      370        371  

7.25%, 5/15/26(3)

     445        443  

6.63%, 1/15/27(3)

     880        832  

NRG Yield Operating LLC,

      

5.00%, 9/15/26(3)

     100        96  

Terraform Global Operating LLC,

      

9.75%, 8/15/22(3)

     200        214  
  

 

 

     

 

 

  
        5,000  
     

 

 

  

Property & Casualty Insurance - 0.8%

      

Alliant Holdings Intermediate LLC,

      

8.25%, 8/1/23(3)

     1,980        2,044  

HUB International Ltd.,

      

7.88%, 10/1/21(3)

     605        639  
  

 

 

     

 

 

  
        2,683  
     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Publishing & Broadcasting - 2.9%

      

CBS Radio, Inc.,

      

7.25%, 11/1/24(3)

   $ 300      $ 315  

Clear Channel Worldwide Holdings, Inc.,

      

7.63%, 3/15/20

      2,930        2,813  

7.63%, 3/15/20

      1,410        1,409  

6.50%, 11/15/22

      260        266  

Gray Television, Inc.,

      

5.13%, 10/15/24(3)

     245        237  

5.88%, 7/15/26(3)

     365        362  

iHeartCommunications, Inc.,

      

10.00%, 1/15/18

      50        37  

6.88%, 6/15/18

      108        76  

9.00%, 12/15/19

      165        135  

11.30%, 3/1/21

      782        596  

7.25%, 10/15/27

      205        88  

iHeartCommunications, Inc. (100% Cash),

      

14.00%, 2/1/21(2)

     101        38  

LIN Television Corp.,

      

6.38%, 1/15/21

      200        207  

Nexstar Escrow Corp.,

      

5.63%, 8/1/24(3)

     200        199  

Nielsen Finance LLC/Nielsen Finance Co.,

      

4.50%, 10/1/20

      360        366  

5.00%, 4/15/22(3)

     730        744  

Sinclair Television Group, Inc.,

      

6.13%, 10/1/22

      200        209  

5.13%, 2/15/27(3)

     100        95  

Sirius XM Radio, Inc.,

      

4.25%, 5/15/20(3)

     545        553  

6.00%, 7/15/24(3)

     450        470  

5.38%, 7/15/26(3)

     55        54  

TEGNA, Inc.,

      

5.13%, 10/15/19

      410        421  

5.13%, 7/15/20

      240        249  

6.38%, 10/15/23

      25        26  
  

 

 

     

 

 

  
        9,965  
     

 

 

  

Real Estate - 1.4%

      

Communications Sales & Leasing, Inc./CSL Capital LLC,

      

6.00%, 4/15/23(3)

     175        181  

8.25%, 10/15/23

      340        360  

Crescent Communities LLC/Crescent Ventures, Inc.,

      

8.88%, 10/15/21(3)

     125        126  

CyrusOne L.P./CyrusOne Finance Corp.,

      

6.38%, 11/15/22

      50        53  

Equinix, Inc.,

      

5.38%, 4/1/23

      350        363  

5.88%, 1/15/26

      195        205  

ESH Hospitality, Inc.,

      

5.25%, 5/1/25(3)

     310        308  

FelCor Lodging L.P.,

      

6.00%, 6/1/25

      225        234  

Iron Mountain, Inc.,

      

6.00%, 8/15/23

      290        308  

5.75%, 8/15/24

      470        483  

Kennedy-Wilson, Inc.,

      

5.88%, 4/1/24

      100        102  

MGM Growth Properties Operating Partnership L.P./MGP Finance Co-Issuer, Inc.,

      

5.63%, 5/1/24(3)

     175        183  

MPT Operating Partnership L.P./MPT Finance Corp.,

      

6.38%, 2/15/22

      45        47  

6.38%, 3/1/24

      195        204  

5.50%, 5/1/24

      355        359  

5.25%, 8/1/26

      195        191  

Omega Healthcare Investors, Inc.,

      

5.88%, 3/15/24

      625        645  

Realogy Group LLC/Realogy Co-Issuer Corp.,

      

5.25%, 12/1/21(3)

     225        231  

RHP Hotel Properties L.P./RHP Finance Corp.,

      

5.00%, 4/15/23

      50        50  

Sabra Health Care L.P./Sabra Capital Corp.,

      

5.50%, 2/1/21

      390        401  
  

 

 

     

 

 

  
        5,034  
     

 

 

  

Refining & Marketing - 0.4%

      

Citgo Holding, Inc.,

      

10.80%, 2/15/20(3)

     550        590  

 

NORTHERN FUNDS QUARTERLY REPORT    11    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Refining & Marketing - 0.4% continued

      

Sunoco L.P./Sunoco Finance Corp.,

      

6.25%, 4/15/21

    $ 300      $ 305  

Tesoro Corp.,

      

4.75%, 12/15/23(3)

     150        151  

5.13%, 12/15/26(3)

     75        76  

Western Refining Logistics L.P./WNRL Finance Corp.,

      

7.50%, 2/15/23

      160        173  
  

 

 

     

 

 

  
        1,295  
     

 

 

  

Renewable Energy - 0.2%

      

Enviva Partners L.P./Enviva Partners Finance Corp.,

      

8.50%, 11/1/21(3)

     560        584  
  

 

 

     

 

 

  

Restaurants - 0.2%

      

KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC,

      

5.00%, 6/1/24(3)

     475        485  

5.25%, 6/1/26(3)

     190        193  

Landry’s, Inc.,

      

6.75%, 10/15/24(3)

     150        152  

Nathan’s Famous, Inc.,

      

10.00%, 3/15/20(3)

     25        27  
  

 

 

     

 

 

  
        857  
     

 

 

  

Retail - Consumer Discretionary - 1.0%

      

American Builders & Contractors Supply Co., Inc.,

      

5.75%, 12/15/23(3)

     125        129  

Beacon Roofing Supply, Inc.,

      

6.38%, 10/1/23

      75        80  

Builders FirstSource, Inc.,

      

10.80%, 8/15/23(3)

     75        86  

5.63%, 9/1/24(3)

     150        151  

Hertz (The) Corp.,

      

5.50%, 10/15/24(3)

     370        323  

L Brands, Inc.,

      

5.63%, 10/15/23

      495        533  

6.88%, 11/1/35

      50        51  

6.75%, 7/1/36

      400        405  

Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc.,

      

7.88%, 10/1/22(3)

     465        480  

Penske Automotive Group, Inc.,

      

5.75%, 10/1/22

      100        103  

5.38%, 12/1/24

      60        60  

PetSmart, Inc.,

      

7.13%, 3/15/23(3)

     210        214  

QVC, Inc.,

      

5.13%, 7/2/22

      300        311  

5.45%, 8/15/34

      255        232  

rue21, Inc.,

      

9.00%, 10/15/21(3)

     75        17  

Sally Holdings LLC/Sally Capital, Inc.,

      

5.63%, 12/1/25

      175        182  
  

 

 

     

 

 

  
        3,357  
     

 

 

  

Retail - Consumer Staples - 0.0%

      

US Foods, Inc.,

      

5.88%, 6/15/24(3)

     150        155  
  

 

 

     

 

 

  

Semiconductors - 0.6%

      

Advanced Micro Devices, Inc.,

      

7.50%, 8/15/22

      16        17  

7.00%, 7/1/24

      161        167  

Amkor Technology, Inc.,

      

6.38%, 10/1/22

      365        381  

Micron Technology, Inc.,

      

5.25%, 8/1/23(3)

     215        216  

5.25%, 1/15/24(3)

     25        25  

5.50%, 2/1/25

      140        139  

5.63%, 1/15/26(3)

     665        659  

Microsemi Corp.,

      

9.13%, 4/15/23(3)

     190        221  

Qorvo, Inc.,

      

6.75%, 12/1/23

      125        138  

7.00%, 12/1/25

      100        111  
  

 

 

     

 

 

  
        2,074  
     

 

 

  

Software & Services - 2.3%

      

Conduent Finance, Inc./Xerox Business Services LLC,

      

10.50%, 12/15/24(3)

     1,255        1,343  

Donnelley Financial Solutions, Inc.,

      

8.25%, 10/15/24(3)

     125        127  

Harland Clarke Holdings Corp.,

      

9.25%, 3/1/21(3)

     300        264  

 

ACTIVE M/MULTI-MANAGER FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Software & Services - 2.3% continued

      

Inception Merger Sub, Inc./Rackspace Hosting, Inc.,

      

8.63%, 11/15/24(3)

   $ 495      $ 524  

Infor Software Parent LLC/Infor Software Parent, Inc. (100% Cash),

      

14.26%, 5/1/21(2) (3) (4)

      711        732  

Infor US, Inc.,

      

6.50%, 5/15/22

      325        339  

MSCI, Inc.,

      

5.25%, 11/15/24(3)

     340        357  

5.75%, 8/15/25(3)

     245        260  

4.75%, 8/1/26(3)

     50        50  

Nuance Communications, Inc.,

      

5.38%, 8/15/20(3)

     420        432  

6.00%, 7/1/24(3)

     465        480  

RP Crown Parent LLC,

      

7.38%, 10/15/24(3)

     1,090        1,131  

Solera LLC/Solera Finance, Inc.,

      

10.50%, 3/1/24(3)

     75        84  

SS&C Technologies Holdings, Inc.,

      

5.88%, 7/15/23

      125        130  

Syniverse Holdings, Inc.,

      

9.13%, 1/15/19

      530        464  

Veritas US, Inc./Veritas Bermuda Ltd.,

      

7.50%, 2/1/23(3)

     1,300        1,222  
  

 

 

     

 

 

  
        7,939  
     

 

 

  

Supermarkets & Pharmacies - 0.5%

      

Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC,

      

6.63%, 6/15/24(3)

     535        558  

5.75%, 3/15/25(3)

     425        421  

Rite Aid Corp.,

      

9.25%, 3/15/20

      175        181  

6.13%, 4/1/23(3)

     470        505  
  

 

 

     

 

 

  
        1,665  
     

 

 

  

Transportation & Logistics - 0.2%

      

BCD Acquisition, Inc.,

      

9.63%, 9/15/23(3)

     590        632  

Navistar International Corp.,

      

8.25%, 11/1/21

      100        101  

XPO Logistics, Inc.,

      

6.13%, 9/1/23(3)

     50        52  
  

 

 

     

 

 

  
        785  
     

 

 

  

Travel & Lodging - 0.0%

      

Diamond Resorts International, Inc.,

      

7.75%, 9/1/23(3)

     25        25  

Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.,

      

5.63%, 10/15/21

      145        150  
  

 

 

     

 

 

  
        175  
     

 

 

  

Utilities - 1.2%

      

AES Corp.,

      

6.00%, 5/15/26

      270        274  

AmeriGas Partners L.P./AmeriGas Finance Corp.,

      

5.50%, 5/20/25

      100        101  

Ferrellgas L.P./Ferrellgas Finance Corp.,

      

6.50%, 5/1/21

      275        274  

6.75%, 1/15/22

      330        326  

6.75%, 6/15/23

      250        246  

IPALCO Enterprises, Inc.,

      

5.00%, 5/1/18

      265        273  

NGL Energy Partners L.P./NGL Energy Finance Corp.,

      

5.13%, 7/15/19

      460        456  

6.88%, 10/15/21

      345        353  

Suburban Propane Partners L.P./Suburban Energy Finance Corp.,

      

7.38%, 8/1/21

      134        139  

Talen Energy Supply LLC,

      

4.63%, 7/15/19(3)

     1,055        999  

4.60%, 12/15/21

      690        547  

6.50%, 6/1/25

      135        104  
  

 

 

     

 

 

  
        4,092  
     

 

 

  

Wireless Telecommunications Services - 2.7%

      

Hughes Satellite Systems Corp.,

      

6.50%, 6/15/19

      173        188  

6.63%, 8/1/26(3)

     225        226  

Sprint Capital Corp.,

      

6.88%, 11/15/28

      150        148  

8.75%, 3/15/32

      575        632  

 

NORTHERN FUNDS QUARTERLY REPORT    13    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

CORPORATE BONDS - 62.9% continued

      

Wireless Telecommunications Services - 2.7% continued

      

Sprint Communications, Inc.,

      

9.13%, 3/1/17

    $ 125      $ 126  

8.38%, 8/15/17

      150        156  

9.00%, 11/15/18(3)

     430        474  

7.00%, 8/15/20

      125        132  

6.00%, 11/15/22

      1,050        1,058  

Sprint Corp.,

      

7.25%, 9/15/21

      595        632  

7.88%, 9/15/23

      1,190        1,270  

7.13%, 6/15/24

      1,190        1,226  

T-Mobile USA, Inc.,

      

6.54%, 4/28/20

      620        639  

6.25%, 4/1/21

      100        104  

6.63%, 4/28/21

      525        548  

6.13%, 1/15/22

      485        512  

6.73%, 4/28/22

      420        439  

6.00%, 3/1/23

      475        502  

6.63%, 4/1/23

      300        318  
  

 

 

     

 

 

  
        9,330  
     

 

 

  

Wireline Telecommunications Services - 2.6%

      

CenturyLink, Inc.,

      

6.45%, 6/15/21

      648        682  

5.80%, 3/15/22

      725        741  

6.75%, 12/1/23

      160        164  

7.50%, 4/1/24

      325        341  

7.60%, 9/15/39

      100        87  

Cogent Communications Group, Inc.,

      

5.38%, 3/1/22(3)

     50        52  

EarthLink Holdings Corp.,

      

8.88%, 5/15/19

      149        152  

Embarq Corp.,

      

8.00%, 6/1/36

      815        764  

Frontier Communications Corp.,

      

8.50%, 4/15/20

      115        121  

6.25%, 9/15/21

      125        118  

10.50%, 9/15/22

      590        620  

7.13%, 1/15/23

      185        167  

7.63%, 4/15/24

      345        309  

11.00%, 9/15/25

      1,165        1,203  

9.00%, 8/15/31

      802        684  

GCI, Inc.,

      

6.75%, 6/1/21

      100        103  

GTT Escrow Corp.,

      

7.88%, 12/31/24(3)

     570        594  

Level 3 Communications, Inc.,

      

5.75%, 12/1/22

      430        442  

Level 3 Financing, Inc.,

      

5.38%, 8/15/22

      55        57  

5.63%, 2/1/23

      125        128  

5.13%, 5/1/23

      360        361  

5.38%, 1/15/24

      380        384  

Qwest Corp.,

      

6.88%, 9/15/33

      355        339  

Windstream Services LLC,

      

7.50%, 6/1/22

      151        148  

Zayo Group LLC/Zayo Capital, Inc.,

      

6.00%, 4/1/23

      350        364  
  

 

 

     

 

 

  
        9,125  
     

 

 

  

Total Corporate Bonds

(Cost $212,422)

         219,857  
     

 

 

  

FOREIGN ISSUER BONDS - 10.8%

      

Aerospace & Defense - 0.2%

      

Bombardier, Inc.,

      

8.75%, 12/1/21(3)

     350        371  

6.00%, 10/15/22(3)

     100        94  

6.13%, 1/15/23(3)

     150        143  
  

 

 

     

 

 

  
        608  
     

 

 

  

Airlines - 0.1%

      

Air Canada,

      

7.75%, 4/15/21(3)

     300        335  
  

 

 

     

 

 

  

Auto Parts Manufacturing - 0.2%

      

IHO Verwaltungs GmbH,

      

4.13%, 9/15/21(2) (3) (4)

      200        202  

4.50%, 9/15/23(2) (3)

      200        196  

Nexteer Automotive Group Ltd.,

      

5.88%, 11/15/21(3)

     295        306  
  

 

 

     

 

 

  
        704  
     

 

 

  

Biotechnology - 0.0%

      

Concordia International Corp.,

      

9.50%, 10/21/22(3)

     100        35  
  

 

 

     

 

 

  

Cable & Satellite - 1.9%

      

Altice Financing S.A.,

      

6.63%, 2/15/23(3)

     450        462  

 

ACTIVE M/MULTI-MANAGER FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 10.8% continued

      

Cable & Satellite - 1.9% continued

      

Altice Finco S.A.,

      

9.88%, 12/15/20(3)

   $ 200      $ 211  

Altice Luxembourg S.A.,

      

7.75%, 5/15/22(3)

     495        528  

7.63%, 2/15/25(3)

     270        284  

SFR Group S.A.,

      

6.00%, 5/15/22(3)

     960        985  

6.25%, 5/15/24(3)

     115        116  

7.38%, 5/1/26(3)

     1,745        1,789  

Unitymedia GmbH,

      

6.13%, 1/15/25(3)

     630        647  

UPCB Finance IV Ltd.,

      

5.38%, 1/15/25(3)

     200        202  

Virgin Media Finance PLC,

      

6.00%, 10/15/24(3)

     200        206  

Virgin Media Secured Finance PLC,

      

5.38%, 4/15/21(3)

     180        186  

5.50%, 8/15/26(3)

     395        394  

Ziggo Bond Finance B.V.,

      

6.00%, 1/15/27(3)

     300        291  

Ziggo Secured Finance B.V.,

      

5.50%, 1/15/27(3)

     445        434  
  

 

 

     

 

 

  
        6,735  
     

 

 

  

Chemicals - 0.2%

      

Hexion, Inc./Hexion Nova Scotia Finance ULC,

      

9.00%, 11/15/20

      225        176  

Kissner Holdings L.P./Kissner Milling Co. Ltd./BSC Holding, Inc./Kissner USA,

      

8.38%, 12/1/22(3)

     100        101  

NOVA Chemicals Corp.,

      

5.00%, 5/1/25(3)

     340        333  
  

 

 

     

 

 

  
        610  
     

 

 

  

Commercial Finance - 0.4%

      

Aircastle Ltd.,

      

4.63%, 12/15/18

      260        271  

6.25%, 12/1/19

      145        156  

5.13%, 3/15/21

      230        245  

5.50%, 2/15/22

      180        191  

5.00%, 4/1/23

      290        296  

Fly Leasing Ltd.,

      

6.38%, 10/15/21

      200        208  
  

 

 

     

 

 

  
        1,367  
     

 

 

  

Consumer Services - 0.0%

      

Garda World Security Corp.,

      

7.25%, 11/15/21(3)

     25        23  

7.25%, 11/15/21(3)

     25        23  
  

 

 

     

 

 

  
        46  
     

 

 

  

Containers & Packaging - 0.4%

      

ARD Finance S.A.,

      

7.13%, 9/15/23(2) (3) (4)

      400        395  

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.,

      

6.00%, 6/30/21(3)

     300        305  

7.25%, 5/15/24(3)

     700        738  
  

 

 

     

 

 

  
        1,438  
     

 

 

  

Design, Manufacturing & Distribution - 0.1%

      

Flex Ltd.,

      

5.00%, 2/15/23

      240        256  
  

 

 

     

 

 

  

Diversified Banks - 0.1%

      

Barclays PLC,

      

8.25%, 12/15/18(7)

     400        416  
  

 

 

     

 

 

  

Electrical Equipment Manufacturing - 0.0%

      

Allegion PLC,

      

5.88%, 9/15/23

      115        122  
  

 

 

     

 

 

  

Entertainment Content - 0.0%

      

Lions Gate Entertainment Corp.,

      

5.88%, 11/1/24(3)

     50        51  
  

 

 

     

 

 

  

Exploration & Production - 0.9%

      

Encana Corp.,

      

6.50%, 8/15/34

      305        329  

MEG Energy Corp.,

      

6.38%, 1/30/23(3)

     945        841  

7.00%, 3/31/24(3)

     1,275        1,154  

OGX Austria GmbH,

      

8.50%, 6/1/18(5) (9)

      2,420        —    

8.38%, 4/1/22(5) (9)

      1,800        —    

Seven Generations Energy Ltd.,

      

6.88%, 6/30/23(3)

     100        106  

 

NORTHERN FUNDS QUARTERLY REPORT    15    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 10.8% continued

      

Exploration & Production - 0.9% continued

      

Teine Energy Ltd.,

      

6.88%, 9/30/22(3)

   $ 520      $ 531  

Tullow Oil PLC,

      

6.00%, 11/1/20(3)

     200        190  
  

 

 

     

 

 

  
        3,151  
     

 

 

  

Financial Services - 0.1%

      

Intelsat Connect Finance S.A.,

      

12.50%, 4/1/22(3)

     266        164  
  

 

 

     

 

 

  

Homebuilders - 0.0%

      

Mattamy Group Corp.,

      

6.50%, 11/15/20(3)

     150        152  
  

 

 

     

 

 

  

Industrial Other - 0.1%

      

Broadspectrum Ltd.,

      

8.38%, 5/15/20(3)

     385        407  

Ritchie Bros Auctioneers,

      

Inc., 5.38%, 1/15/25(3)

     50        51  
  

 

 

     

 

 

  
        458  
     

 

 

  

Integrated Oils - 0.3%

      

Petrobras Global Finance B.V.,

      

6.25%, 3/17/24

      1,055        1,012  
  

 

 

     

 

 

  

Machinery Manufacturing - 0.3%

      

Accudyne Industries Borrower/Accudyne Industries LLC,

      

7.75%, 12/15/20(3)

     1,210        1,007  

CNH Industrial N.V.,

      

4.50%, 8/15/23

      165        163  
  

 

 

     

 

 

  
        1,170  
     

 

 

  

Medical Equipment & Devices Manufacturing - 0.0%

      

Mallinckrodt International Finance S.A./Mallinckrodt CB LLC,

      

5.50%, 4/15/25(3)

     120        107  
  

 

 

     

 

 

  

Metals & Mining - 1.4%

      

Alcoa Nederland Holding B.V.,

      

7.00%, 9/30/26(3)

     200        219  

Anglo American Capital PLC,

      

4.45%, 9/27/20(3)

     120        123  

ArcelorMittal,

      

6.25%, 8/5/20

      25        27  

8.00%, 10/15/39

      1,140        1,251  

Essar Steel Algoma, Inc.,

      

9.50%, 11/15/19(3) (4) (5)

      275        22  

First Quantum Minerals Ltd.,

      

7.25%, 10/15/19(3)

     200        202  

6.75%, 2/15/20(3)

     150        150  

7.00%, 2/15/21(3)

     695        691  

7.25%, 5/15/22(3)

     220        217  

HudBay Minerals Inc.,

      

7.25%, 1/15/23(3)

     180        186  

HudBay Minerals, Inc.,

      

7.63%, 1/15/25(3)

     335        348  

IAMGOLD Corp.,

      

6.75%, 10/1/20(3)

     200        195  

Kinross Gold Corp.,

      

5.13%, 9/1/21

      50        51  

Teck Resources Ltd,

      

4.50%, 1/15/21

      50        50  

Teck Resources Ltd.,

      

4.75%, 1/15/22

      325        326  

6.13%, 10/1/35

      375        365  

6.00%, 8/15/40

      100        95  

6.25%, 7/15/41

      525        506  
  

 

 

     

 

 

  
        5,024  
     

 

 

  

Oil & Gas Services & Equipment - 0.5%

      

Ensco PLC,

      

5.75%, 10/1/44

      80        58  

Noble Holding International Ltd.,

      

7.75%, 1/15/24

      125        118  

6.05%, 3/1/41

      235        162  

Paragon Offshore PLC,

      

7.25%, 8/15/24(3) (4) (5)

      950        166  

Precision Drilling Corp.,

      

6.63%, 11/15/20

      84        85  

6.50%, 12/15/21

      255        259  

5.25%, 11/15/24

      220        206  

Transocean, Inc.,

      

6.00%, 3/15/18

      275        278  

5.55%, 10/15/22

      75        66  

9.00%, 7/15/23(3)

     100        103  

7.50%, 4/15/31

      75        63  

Weatherford International Ltd.,

      

9.88%, 2/15/24(3)

     125        133  

6.50%, 8/1/36

      25        20  

6.75%, 9/15/40

      25        20  
  

 

 

     

 

 

  
        1,737  
     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

FOREIGN ISSUER BONDS - 10.8% continued

 

Pharmaceuticals - 1.2%

      

Endo Ltd./Endo Finance LLC/Endo Finco, Inc.,

      

6.00%, 7/15/23(3)

   $ 605      $ 530  

6.50%, 2/1/25(3)

     285        238  

Valeant Pharmaceuticals International, Inc.,

      

5.63%, 12/1/21(3)

     845        655  

5.50%, 3/1/23(3)

     1,205        904  

5.88%, 5/15/23(3)

     2,340        1,767  

6.13%, 4/15/25(3)

     95        71  
  

 

 

     

 

 

  
        4,165  
     

 

 

  

Pipeline - 0.1%

      

Gibson Energy, Inc.,

      

6.75%, 7/15/21(3)

     205        213  
  

 

 

     

 

 

  

Restaurants - 0.1%

      

1011778 B.C. ULC/New Red Finance, Inc.,

      

4.63%, 1/15/22(3)

     135        138  

6.00%, 4/1/22(3)

     175        183  
  

 

 

     

 

 

  
        321  
     

 

 

  

Semiconductors - 0.2%

      

NXP B.V./NXP Funding LLC,

      

4.13%, 6/1/21(3)

     200        206  

3.88%, 9/1/22(3)

     200        203  

Sensata Technologies UK Financing Co. PLC,

      

6.25%, 2/15/26(3)

     200        209  
  

 

 

     

 

 

  
        618  
     

 

 

  

Software & Services - 0.8%

      

Camelot Finance S.A.,

      

7.88%, 10/15/24(3)

     1,155        1,195  

IHS Markit Ltd.,

      

5.00%, 11/1/22(3)

     600        623  

Open Text Corp.,

      

5.63%, 1/15/23(3)

     480        502  

5.88%, 6/1/26(3)

     335        353  
  

 

 

     

 

 

  
        2,673  
     

 

 

  

Travel & Lodging - 0.4%

      

NCL Corp Ltd.,

      

4.75%, 12/15/21(3)

     465        465  

NCL Corp. Ltd.,

      

5.25%, 11/15/19(3)

     125        128  

4.63%, 11/15/20(3)

     350        356  

Royal Caribbean Cruises Ltd.,

      

5.25%, 11/15/22

      165        176  

Viking Cruises Ltd.,

      

8.50%, 10/15/22(3)

     75        78  
  

 

 

     

 

 

  
        1,203  
     

 

 

  

Waste & Environment Services & Equipment - 0.1%

      

GFL Environmental, Inc.,

      

7.88%, 4/1/20(3)

     260        273  

9.88%, 2/1/21(3)

     40        44  
  

 

 

     

 

 

  
        317  
     

 

 

  

Wireless Telecommunications Services - 0.5%

      

Digicel Group Ltd.,

      

8.25%, 9/30/20(3)

     200        172  

Intelsat Jackson Holdings S.A.,

      

7.25%, 10/15/20

      50        39  

8.00%, 2/15/24(3)

     150        154  

Intelsat Luxembourg S.A.,

      

6.75%, 6/1/18

      38        31  

7.75%, 6/1/21

      728        238  

8.13%, 6/1/23

      385        120  

Wind Acquisition Finance S.A.,

      

4.75%, 7/15/20(3)

     635        640  

7.38%, 4/23/21(3)

     260        270  
  

 

 

     

 

 

  
        1,664  
     

 

 

  

Wireline Telecommunications Services - 0.2%

      

Telecom Italia Capital S.A.,

      

6.00%, 9/30/34

      340        315  

Telecom Italia S.p.A.,

      

5.30%, 5/30/24(3)

     520        508  
  

 

 

     

 

 

  
        823  
     

 

 

  

Total Foreign Issuer Bonds

(Cost $42,440)

         37,695  
     

 

 

  

TERM LOANS - 13.9%(8)

      

Advertising & Marketing - 0.1%

      

Advantage Sales & Marketing, Inc., Term Loan,

      

7.50%, 7/25/22

      470        457  
  

 

 

     

 

 

  

Aerospace & Defense - 0.1%

      

B/E Aerospace, Inc., Term Loan,

      

3.85%, 12/16/21

      14        14  

 

NORTHERN FUNDS QUARTERLY REPORT    17    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

TERM LOANS - 13.9%(8) continued

 

Aerospace & Defense - 0.1% continued

      

3.89%, 12/16/21

    $ 14      $ 14  

3.94%, 12/16/21

      14        15  

TransDigm, Inc., Tranche F Term Loan,

      

6/9/23(10)

     78        78  

3.77%, 6/9/23

      368        371  
  

 

 

     

 

 

  
        492  
     

 

 

  

Airlines - 0.1%

      

American Airlines, Inc., 2015 Term Loan,

      

3.26%, 6/27/20

      158        159  
  

 

 

     

 

 

  

Cable & Satellite - 0.0%

      

CSC Holdings, LLC, 2016 Extended Term Loan,

      

3.88%, 10/11/24

      142        143  
  

 

 

     

 

 

  

Casinos & Gaming - 1.0%

      

Boyd Gaming Corp., Term B-2 Loan,

      

3.78%, 9/15/23

      65        66  

Cowlitz Tribal Gaming Authority, Term B Loan,

      

11.50%, 12/6/21

      520        559  

Eldorado Resorts, Inc., Initial Term Loan,

      

4.25%, 7/25/22

      222        224  

Mohegan Tribal Gaming Authority, Term B Loan,

      

10/13/23(10)

     215        216  

Parq Holdings L.P., Closing Date Term Loan,

      

8.50%, 12/17/20

      2,510        2,460  

Scientific Games International, Inc., Initial Term Loan,

      

10/18/20(10)

     25        25  

Station Casinos LLC, Term B Facility Loan,

      

6/8/23(10)

     40        40  

3.75%, 6/8/23

      29        30  
  

 

 

     

 

 

  
        3,620  
     

 

 

  

Chemicals - 0.4%

      

Royal Holdings, Inc., Initial Term Loan,

      

8.50%, 6/19/23

      1,440        1,426  
  

 

 

     

 

 

  

Commercial Services - 0.7%

      

Sterling Midco Holdings, Inc., Initial Loan,

      

8.75%, 6/19/23

      2,590        2,512  
  

 

 

     

 

 

  

Communications Equipment - 0.3%

      

Masergy Holdings, Inc., Initial Loan,

      

9.50%, 12/16/24

      980        973  

Radiate Holdco, LLC, Term Loan,

      

12/9/23(10)

     100        100  
  

 

 

     

 

 

  
        1,073  
     

 

 

  

Construction Materials Manufacturing - 0.0%

      

Forterra Finance, LLC, Senior Lien Term Loan,

      

4.50%, 10/25/23

      50        51  
  

 

 

     

 

 

  

Consumer Finance - 0.2%

      

First Data Corp., 2022C New Dollar Term Loan,

      

7/8/22(10)

     448        453  

3.76%, 7/8/22

      392        396  
  

 

 

     

 

 

  
        849  
     

 

 

  

Consumer Products - 0.0%

      

Revlon Consumer Products Corp., Initial Term B Loan,

      

4.44%, 9/7/23

      150        151  
  

 

 

     

 

 

  

Consumer Services - 0.2%

      

Aramark Corp., U.S. Term F Loan,

      

3.50%, 2/24/21

      474        478  

Camelot U.S. Acquisition 1 Co., Initial Term Loan,

      

4.75%, 10/3/23

      75        76  
  

 

 

     

 

 

  
        554  
     

 

 

  

Containers & Packaging - 0.8%

      

Berlin Packaging LLC, Initial Term Loan,

      

7.75%, 9/30/22

      2,000        2,017  

Flex Acquisition Co., Inc., Initial Term Loan,

      

12/29/23(10)

     100        101  

Reynolds Group Holdings, Inc., U.S. Term Loan,

      

2/5/23(10)

     20        20  

4.25%, 2/5/23

      623        630  
  

 

 

     

 

 

  
        2,768  
     

 

 

  

Department Stores - 0.1%

      

J.C. Penney Corp, Inc., Loan,

      

5.25%, 6/23/23

      189        190  
  

 

 

     

 

 

  

 

ACTIVE M/MULTI-MANAGER FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

TERM LOANS - 13.9%(8) continued

 

Entertainment Content - 0.3%

      

Charter Communications Operating LLC, Term I-1 Loan,

      

3.01%, 1/15/24

    $ 313      $ 315  

Univision Communications, Inc., 2013 Incremental Term Loan,

      

3/1/20(10)

     20        19  

4.00%, 3/1/20

      195        196  

Univision Communications, Inc., Replacement First-Lien Term Loan,

      

3/1/20(10)

     136        136  

4.00%, 3/1/20

      76        76  

WideOpenWest Finance, LLC, New Term B Loan,

      

4.50%, 8/18/23

      244        246  
  

 

 

     

 

 

  
        988  
     

 

 

  

Entertainment Resources - 0.1%

      

Delta 2 (Lux) S.a r.l, Facility B3,

      

7/30/21(10)

     125        126  

Delta 2 (Lux) S.a r.l, Second Lien Facility,

      

8.07%, 7/29/22

      120        121  

Life Time Fitness, Inc., Closing Date Term Loan,

      

6/10/22(10)

     100        100  

4.25%, 6/10/22

      100        100  
  

 

 

     

 

 

  
        447  
     

 

 

  

Exploration & Production - 0.1%

      

California Resources Corp., Loan,

      

11.38%, 12/31/21

      75        83  

Chesapeake Energy Corp., Class A Loan,

      

8.50%, 8/23/21

      75        82  
  

 

 

     

 

 

  
        165  
     

 

 

  

Financial Services - 0.0%

      

UFC Holdings, LLC, Term Loan,

      

8/18/23(10)

     50        50  

UFC Holdings, LLC, Term Loan (Second Lien),

      

8/18/24(10)

     25        26  

8.50%, 8/18/24

      75        77  
  

 

 

     

 

 

  
        153  
     

 

 

  

Food & Beverage - 0.1%

      

NVA Holdings, Inc., Term Loan,

      

8.00%, 8/14/22

      410        410  
  

 

 

     

 

 

  

Hardware - 0.3%

      

Lully Finance S.à r.l., Initial Term B-1 Loan,

      

9.50%, 10/16/23

      1,030        1,028  

Western Digital Corp., U.S. Term B-1 Loan,

      

4.52%, 4/29/23

      50        50  
  

 

 

     

 

 

  
        1,078  
     

 

 

  

Health Care Facilities & Services - 2.9%

      

BioScrip, Inc., Delayed Draw Term Loan,

      

6.50%, 7/31/20

      671        615  

BioScrip, Inc., Initial Term B Loan,

      

6.50%, 7/31/20

      1,119        1,025  

Envision Healthcare Corp., Initial Term Loan,

      

4.00%, 12/1/23

      230        232  

Genoa, a QoL Healthcare Co., LLC, Initial Term Loan,

      

9.00%, 10/28/24

      1,160        1,154  

Hanger, Inc., Loan,

      

11.50%, 8/1/19

      840        836  

Heartland Dental Care, LLC, Term Loan,

      

9.75%, 6/21/19

      2,910        2,852  

Jaguar Holding Co., Initial Term Loan,

      

4.25%, 8/18/22

      134        135  

Lanai Holdings III, Inc., Initial Term Loan,

      

9.50%, 8/28/23

      1,820        1,747  

Team Health, Inc., New Tranche B Term Loan,

      

3.77%, 11/23/22

      124        124  

U.S. Renal Care, Inc., Term Loan,

      

9.00%, 12/29/23

      1,400        1,232  
  

 

 

     

 

 

  
        9,952  
     

 

 

  

Home & Office Products Manufacturing - 0.0%

      

Serta Simmons Bedding, LLC, Initial Term Loan,

      

9.00%, 11/8/23

      100        100  
  

 

 

     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    19    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

TERM LOANS - 13.9%(8) continued

 

Home Improvement - 0.1%

      

Servicemaster Co., (The) LLC, Tranche C Term Loan,

      

3.27%, 11/8/23

    $ 245      $ 245  
  

 

 

     

 

 

  

Internet Media - 0.2%

      

Ancestry.com Operations, Inc., Term Loan,

      

9.25%, 10/19/24

      520        529  

Match Group, Inc., Term B-1 Loan,

      

4.20%, 11/16/22

      141        143  
  

 

 

     

 

 

  
        672  
     

 

 

  

Managed Care - 0.5%

      

MPH Acquisition Holdings LLC, Initial Term Loan,

      

6/7/23(10)

     100        102  

5.00%, 6/7/23

      264        269  

Opal Acquisition, Inc., Term B Loan,

      

5.00%, 11/27/20

      1,482        1,391  
  

 

 

     

 

 

  
        1,762  
     

 

 

  

Mass Merchants - 0.2%

      

99¢ Only Stores, Tranche B-2 Loan,

      

4.50%, 1/11/19

      691        567  
  

 

 

     

 

 

  

Metals & Mining - 0.4%

      

Fairmount Santrol, Inc., New Tranche B-2 Term Loan,

      

4.50%, 9/5/19

      1,179        1,142  

FMG Resources (August 2006) Pty Ltd., Loan,

      

6/30/19(10)

     16        16  

3.75%, 6/30/19

      307        308  
  

 

 

     

 

 

  
        1,466  
     

 

 

  

Pipeline - 0.0%

      

Energy Transfer Equity, L.P., Loan,

      

12/2/19(10)

     10        10  

3.39%, 12/2/19

      72        72  
  

 

 

     

 

 

  
        82  
     

 

 

  

Power Generation - 0.2%

      

Calpine Corp., Term Loan,

      

3.75%, 1/15/24

      99        99  

Calpine Corp., Term Loan (2015),

      

1/15/23(10)

     79        79  

3.75%, 1/15/23

      174        175  

Dynegy, Inc., Tranche B-2 Term Loan,

      

4.00%, 4/23/20

      95        96  

Vistra Operations Co. LLC, 2016 Incremental Term Loan,

      

4.00%, 12/14/23

      85        86  

Vistra Operations Co. LLC, Initial Term C Loan,

      

5.00%, 8/4/23

      14        14  

Vistra Operations Co. LLC, Initial Term Loan,

      

5.00%, 8/4/23

      61        62  
  

 

 

     

 

 

  
        611  
     

 

 

  

Property & Casualty Insurance - 0.6%

      

Asurion LLC, Incremental Tranche B-4 Term Loan,

      

8/4/22(10)

     50        50  

Asurion LLC, Term Loan,

      

8.50%, 3/3/21

      1,250        1,265  

Lonestar Intermediate Super Holdings, LLC, Term Loan,

      

10.00%, 8/31/21

      705        721  
  

 

 

     

 

 

  
        2,036  
     

 

 

  

Publishing & Broadcasting - 0.1%

      

Sinclair Television Group, Inc., Incremental Tranche B-1 Term Loan,

      

3.52%, 7/30/21

      201        202  
  

 

 

     

 

 

  

Real Estate - 0.1%

      

ESH Hospitality, Inc., Initial Term Loan,

      

3.77%, 8/30/23

      194        197  

MGM Growth Properties Operating Partnership L.P., Term B Loan,

      

3.52%, 4/25/23

      174        175  
  

 

 

     

 

 

  
        372  
     

 

 

  

Restaurants - 0.1%

      

1011778 B.C. Unlimited Liability Co., Term B-2 Loan,

      

3.75%, 12/10/21

      179        180  
  

 

 

     

 

 

  

Retail - Consumer Discretionary - 1.1%

      

Bass Pro Group LLC, Initial Term Loan,

      

5.97%, 12/15/23

      385        382  

Bass Pro Group LLC, New Term Loan,

      

4.00%, 6/5/20

      125        124  

 

ACTIVE M/MULTI-MANAGER FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)(1) 		     VALUE
(000S)		  

TERM LOANS - 13.9%(8) continued

 

Retail - Consumer Discretionary - 1.1% continued

 

National Vision, Inc., Initial Term Loan,

      

6.75%, 3/11/22

    $ 3,000      $ 2,900  

PetSmart, Inc., Tranche B-2 Loan,

      

4.00%, 3/11/22

      169        170  

PriSo Acquisition Corp., Initial Term Loan,

      

5/9/22(10)

     50        50  

SRS Distribution, Inc., Initial Term Loan,

      

9.75%, 2/24/23

      310        319  
  

 

 

     

 

 

  
        3,945  
     

 

 

  

Semiconductors - 0.1%

      

Avago Technologies Cayman Holdings Ltd., Term B-3 Loan,

      

3.70%, 2/1/23

      454        460  
  

 

 

     

 

 

  

Software & Services - 2.0%

      

AF Borrower LLC, Initial Term Loan,

      

10.00%, 1/30/23

      2,380        2,393  

Donnelley Financial Solutions, Inc., Term B Loan,

      

5.00%, 9/29/23

      50        50  

Evergreen Skills Lux S.À R.L., Initial Term Loan,

      

5.84%, 4/28/21

      1,253        1,143  

Evergreen Skills Lux S.À R.L., Initial Term Loan (Second Lien),

      

9.34%, 4/28/22

      2,070        1,537  

Presidio LLC, Refinancing Term Loan,

      

5.25%, 2/2/22

      263        265  

Rackspace Hosting, Inc., Term B Loan,

      

4.50%, 11/3/23

      255        258  

RP Crown Parent, LLC, Initial Term Loan,

      

4.50%, 10/12/23

      25        25  

SourceHOV LLC, Term B Loan,

      

7.75%, 10/31/19

      415        372  

Syniverse Holdings, Inc., Initial Term Loan,

      

4.00%, 4/23/19

      60        52  

Syniverse Holdings, Inc., Tranche B Term Loan,

      

4.00%, 4/23/19

      93        81  

Veritas US, Inc., Initial Dollar Term B-1 Loan,

      

6.63%, 1/27/23

      774        713  
  

 

 

     

 

 

  
        6,889  
     

 

 

  

Transportation & Logistics - 0.0%

      

OSG Bulk Ships, Inc., Initial Term Loan,

      

5.25%, 8/5/19

      91        88  

XPO Logistics, Inc., Refinanced Term Loan,

      

4.25%, 11/1/21

      18        19  
  

 

 

     

 

 

  
        107  
     

 

 

  

Travel & Lodging - 0.1%

      

Four Seasons Holdings, Inc., 2013, Term Loan,

      

3.75%, 11/30/23

      65        66  

Hilton Worldwide Finance, LLC, Series B-2 Term Loan,

      

10/25/23(10)

     54        54  

3.26%, 10/25/23

      266        269  
  

 

 

     

 

 

  
        389  
     

 

 

  

Utilities - 0.0%

      

Energy Future Intermediate Holding Co. LLC, 2016 Additional Term Loan,

      

4.25%, 6/30/17

      15        15  
  

 

 

     

 

 

  

Wireless Telecommunications Services - 0.1%

      

Intelsat Jackson Holdings S.A., Tranche B-2 Term Loan,

      

3.75%, 6/30/19

      195        188  
  

 

 

     

 

 

  

Wireline Telecommunications Services - 0.2%

      

Level 3 Financing, Inc., Tranche B 2020 Term Loan,

      

4.00%, 1/15/20

      295        299  

Level 3 Financing, Inc., Tranche B-II 2022 Term Loan,

      

5/31/22(10)

     70        70  

3.50%, 5/31/22

      37        37  

Zayo Group LLC, 2021 Term Loan,

      

3.75%, 5/6/21

      134        135  
  

 

 

     

 

 

  
        541  
     

 

 

  

Total Term Loans

(Cost $48,691)

         48,467  
     

 

 

  

 

NORTHERN FUNDS QUARTERLY REPORT    21    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

COMMON STOCKS - 0.1%

      

Oil, Gas & Coal - 0.1%

      

Halcon Resources Corp.*

      34,119      $ 319  
  

 

 

     

 

 

  

Total Common Stocks

(Cost $687)

         319  
     

 

 

  

CONVERTIBLE PREFERRED STOCKS - 0.2%

      

Exploration & Production - 0.0%

      

Chesapeake Energy Corp., 5.75%(3) (4)

      13        7  
  

 

 

     

 

 

  

Pharmaceuticals - 0.2%

      

Allergan PLC, 5.50%

      759        579  
  

 

 

     

 

 

  

Total Convertible Preferred Stocks

(Cost $767)

         586  
     

 

 

  

OTHER - 0.0%(9)

      

Escrow Hercules Offshore, Inc.*

      3,570        —    

Escrow Momentive Performance Materials, Inc.*

      145,000        —    
  

 

 

     

 

 

  

Total Other

(Cost $36)

         —    
     

 

 

  
     NUMBER
OF WARRANTS		      VALUE
(000S)		  

WARRANTS - 0.0%

      

Foresight Energy L.P., Exp. 10/2/17, Strike $0.89* (9)

      10,250      $ —    

Halcon Resources Corp., Exp. 9/9/20, Strike $14.04*

      3,297        8  

Material Science Corp., Exp. 6/22/22, Strike $0.01* (3)

      77,693        138  
  

 

 

     

 

 

  

Total Warrants

(Cost $142)

         146  
     

 

 

  
     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 8.1%

      

Northern Institutional Funds - Government Assets Portfolio,
0.32%(11) (12)

      28,280,562      $ 28,281  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $28,281)

         28,281  
     

 

 

  

Total Investments - 96.7%

(Cost $335,699)

         337,739  
     

 

 

  

Other Assets less Liabilities - 3.3%

         11,537  
     

 

 

  

NET ASSETS - 100.0%

       $ 349,276  
     

 

 

  

 

(1) Principal amount is in USD unless otherwise indicated.
(2) Security is a payment in-kind bond (PIK), distributions received in-kind unless otherwise noted in the description.
(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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 Board of Trustees of Northern Funds.
(4) Restricted security that has been deemed illiquid. At December 31, 2016, the value of these restricted illiquid securities amounted to approximately $6,845,000 or 2.0% of net assets. Additional information on these restricted illiquid securities is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		      COST
(000S)		  

ARD Finance S.A.

      

7.13%, 9/15/23

      9/7/16-12/21/16      $ 398  

Century Aluminum Co.

      

7.50%, 6/1/21

      5/23/13-5/4/15        5,351  

Chesapeake Energy Corp.

      

5.50%, 9/15/26

      9/30/16        25  

Chesapeake Energy Corp.,

      

5.75%

      6/16/15        9  

CNG Holdings, Inc.

      

9.38%, 5/15/20

      11/15/16        36  

Essar Steel Algoma, Inc.

      

9.50%, 11/15/19

      11/7/14        270  

IHO Verwaltungs GmbH

      

4.13%, 9/15/21

      9/9/16        202  

Infor Software Parent LLC/Infor Software Parent, Inc. (100% Cash)

      

14.26%, 5/1/21

      1/15/15-7/12/16        656  

Paragon Offshore PLC

      

7.25%, 8/15/24

      7/11/14-7/31/14        946  

Peabody Energy Corp.

      

10.00%, 3/15/22

      10/18/16-12/5/16        159  

 

(5) Issuer has defaulted on terms of debt obligation.
(6) Step coupon bond. Rate as of December 31, 2016 is disclosed.
(7) Variable rate security. Rate as of December 31, 2016 is disclosed. Maturity date represents the perpetual call date.
(8) Variable rate security. Rate as of December 31, 2016 is disclosed. (9) Level 3 asset that is worthless, bankrupt or has been delisted. (10) Position is unsettled. Contract rate was not determined at December 31, 2016 and does not take effect until settlement date.
(11) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to Northern Institutional Funds.
(12) 7-day yield as of December 31, 2016 is disclosed.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

 

ACTIVE M/MULTI-MANAGER FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2016 (UNAUDITED)

 

At December 31, 2016, the credit quality distribution for the Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    % OF
INVESTMENTS		  

BBB

      1.1 % 

BB

      23.4  

B

      32.9  

CCC or Below

      31.6  

Not Rated

      2.7  

Cash Equivalents

      8.3  
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

* Credit quality ratings are compiled from two external rating agencies: Moody’s and S&P Global. The Fund assigns 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 S&P Global’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in S&P Global’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). 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.

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 December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Convertible Bonds(1)

    $ —        $ 2,388      $ —        $ 2,388  

Corporate Bonds(1)

     —          219,857        —          219,857  

Foreign Issuer Bonds(1)

     —          37,695        —          37,695  

Term Loans(1)

     —          48,467        —          48,467  

Common Stocks(1)

     319        —          —          319  

Convertible Preferred Stocks

            

Exploration & Production

      —          7        —          7  

Pharmaceuticals

      579        —          —          579  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Convertible Preferred Stocks

      579        7        —          586  
  

 

 

     

 

 

     

 

 

     

 

 

  

Warrants

      —          146        —          146  

Investment Companies

      28,281        —          —          28,281  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 29,179      $ 308,560      $ —        $ 337,739  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

NORTHERN FUNDS QUARTERLY REPORT    23    ACTIVE M/MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

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

 

     BALANCE
AS OF
3/31/16
(000S)		      REALIZED
GAINS
(LOSSES)
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		      PURCHASES
(000S)		      SALES
(000S)		      TRANSFERS
INTO
LEVEL 3
(000S)		      TRANSFERS
OUT OF
LEVEL 3
(000S)		      BALANCE
AS OF
12/31/16
(000S)		      CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
FROM
INVESTMENTS
STILL HELD
AT 12/31/16
(000S)		  

Other

    $ —        $ —        $ —        $ —        $ —        $ —        $ —        $ —        $ (36 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 334,919  
  

 

 

  

Gross tax appreciation of investments

    $ 12,025  

Gross tax depreciation of investments

      (11,210 ) 
  

 

 

  

Net tax appreciation of investments

    $ 815  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

    VALUE
BEGINNING
OF PERIOD
(000S)		      PURCHASE
(000S)		      SALES
PROCEEDS
(000S)		      DIVIDEND
INCOME
(000S)		      VALUE, END
OF PERIOD
(000S)		  

Northern Institutional Funds - Government Assets Portfolio

    $ 14,598      $ 343,599      $ 329,916      $ 30      $ 28,281  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EXPLANATION OF CURRENCY ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

EUR - Euro

USD - United States Dollar

 

ACTIVE M/MULTI-MANAGER FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

GLOBAL TACTICAL ASSET ALLOCATION FUND    DECEMBER 31, 2016 (UNAUDITED)

 

     NUMBER OF
SHARES		      VALUE
(000S)		  

INVESTMENT COMPANIES - 100.0%

      

FlexShares Global Quality Real Estate Index Fund(1)

     39,927      $ 2,251  

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund(1)

     117,268        2,934  

FlexShares International Quality Dividend Index Fund(1)

     336,388        7,575  

FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index Fund(1)

     40,573        2,289  

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund(1)

     96,501        4,436  

FlexShares Morningstar Global Upstream Natural Resources Index Fund(1)

     182,879        5,241  

FlexShares Morningstar U.S. Market Factor Tilt Index Fund(1)

     118,505        11,393  

FlexShares Quality Dividend Index Fund(1)

     251,489        9,924  

FlexShares STOXX Global Broad Infrastructure Index Fund(1)

     52,555        2,274  

Northern Funds - Bond Index Fund(1)

     1,777,300        18,591  

Northern Funds - High Yield Fixed Income Fund(1)

     1,093,823        7,427  

Northern Institutional Funds - Government Assets Portfolio, 0.32%(1) (2)

      812,856        813  
  

 

 

     

 

 

  

Total Investment Companies

(Cost $70,784)

         75,148  
     

 

 

  

Total Investments - 100.0%

(Cost $70,784)

         75,148  
     

 

 

  

Other Assets less Liabilities - 0.0%

         3  
     

 

 

  

NET ASSETS - 100.0%

       $ 75,151  
     

 

 

  

 

(1) Investment in affiliated fund. Northern Trust Investments, Inc. is the investment adviser to the Fund and the investment adviser to other Northern Funds, Northern Institutional Funds and FlexShares Trust.
(2) 7-day yield as of December 31, 2016 is disclosed.

Percentages shown are based on Net Assets.

At December 31, 2016, the asset class weightings for the Fund were:

 

ASSET CLASS

    WEIGHT    

INVESTMENT VEHICLE

U.S. Equity

      15.2 %    FlexShares Morningstar U.S. Market Factor Tilt Index Fund

Non-U.S. Equity - Developed

      3     FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index Fund

Non-U.S. Equity - Emerging

      5.9     FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

Global Real Estate

      3.0     FlexShares Global Quality Real Estate Index Fund

U.S. Bonds - High Yield

      9.9     NF High Yield Fixed Income Fund

U.S. Bonds - Intermediate

      24.7     NF Bond Index Fund

U.S. Bonds - Inflation Protected

      3.9     FlexShares iBoxx 5-Year Target Duration TIPS Index Fund

International Quality Dividend

      10.1     FlexShares International Quality Dividend Index Fund

Quality Dividend

      13.2     FlexShares Quality Dividend Index Fund

Global Infrastructure

      3.0     FlexShares STOXX Global Broad Infrastructure Index Fund

Global Natural Resources

      7.0     FlexShares Morningstar Global Upstream Natural Resources Index Fund

Cash

      1.1     NIF Government Assets Portfolio
  

 

 

    

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 valuations of the Fund’s investments by the above fair value hierarchy as of December 31, 2016:

 

INVESTMENTS

    LEVEL 1
(000S)		      LEVEL 2
(000S)		      LEVEL 3
(000S)		      TOTAL
(000S)		  

Investment Companies

    $ 75,148      $ —        $ —        $ 75,148  
  

 

 

     

 

 

     

 

 

     

 

 

  

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

At December 31, 2016, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2016.

 

NORTHERN FUNDS QUARTERLY REPORT     1    GLOBAL TACTICAL ASSET ALLOCATION FUND

SCHEDULE OF INVESTMENTS

 

GLOBAL TACTICAL ASSET ALLOCATION FUND continued    DECEMBER 31, 2016 (UNAUDITED)

 

Federal Tax Information:

At December 31, 2016, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 71,547  
  

 

 

  

Gross tax appreciation of investments

    $ 5,230  

Gross tax depreciation of investments

      (1,629 ) 
  

 

 

  

Net tax appreciation of investments

    $ 3,601  
  

 

 

  

Transactions in affiliated investments for the nine months ended December 31, 2016, were as follows:

 

AFFILIATE

   VALUE,
BEGINNING
OF PERIOD
(000S)		     PURCHASES
(000S)		     SALES
PROCEEDS
(000S)		     NET CHANGE
IN UNREALIZED
APPRECIATION
(DEPRECIATION)
(000S)		     NET REALIZED
GAINS
(LOSSES)
(000S)		     DIVIDEND
INCOME
(000S)		     VALUE, END
OF PERIOD
(000S)		  

FlexShares Global Quality Real Estate Index Fund

   $ —       $ 2,425     $ 85     $ (92 )    $ 3     $ 75     $ 2,251  

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund

     2,908       101       45       (28 )      (2 )      44       2,934  

FlexShares International Quality Dividend Index Fund

     7,203       756       569       254       (69 )      246       7,575  

FlexShares Morningstar Developed Markets ex-U.S. Factor Tilt Index Fund

     3,506       405       1,719       369       (272 )      78       2,289  

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

     2,253       2,537       553       255       (56 )      97       4,436  

FlexShares Morningstar Global Upstream Natural Resources Index Fund

     697       4,237       103       432       (22 )      47       5,241  

FlexShares Morningstar U.S. Market Factor Tilt Index Fund

     10,878       1,498       2,341       958       400       148       11,393  

FlexShares Quality Dividend Index Fund

     10,853       176       2,006       736       165       257       9,924  

FlexShares STOXX Global Broad Infrastructure Index Fund

     2,176       145       46       (4 )      3       58       2,274  

Northern Funds - Bond Index Fund

     18,010       4,471       3,338       (497 )      (55 )      376       18,591  

Northern Funds - Global Real Estate Index Fund

     2,171       —         2,179       (362 )      370       —         —    

Northern Funds - High Yield Fixed Income Fund

     11,514       169       4,749       1,145       (652 )      375       7,427  

Northern Institutional Funds - Government Assets Portfolio

     218       18,827       18,232       —         —         1       813  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  $ 72,387     $ 35,747     $ 35,965     $ 3,166     $ (187 )    $ 1,802     $ 75,148  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EXPLANATION OF ABBREVIATIONS AND ACRONYMS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

NF - Northern Funds

NIF - Northern Institutional Funds

TIPS - Treasury Inflation Protected Securities

 

GLOBAL TACTICAL ASSET ALLOCATION FUND    2    NORTHERN FUNDS QUARTERLY REPORT

Item 2. Controls and Procedures.

 

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act (17 CFR 270.30a-3(c))) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended, (17 CFR 240.13a-15(b) or 240.15d-15(b)) as of a date within 90 days of the filing date of this report.

 

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

 

(a) Separate certifications for the principal executive and principal financial officers of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Northern Funds

 

By:  

/s/ Lloyd A. Wennlund

  Lloyd A. Wennlund, President
  (Principal Executive Officer)
Date:   February 27, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ Lloyd A. Wennlund

  Lloyd A. Wennlund, President
  (Principal Executive Officer)
Date:   February 27, 2017

 

By:  

/s/ Randal E. Rein

  Randal E. Rein, Treasurer
  (Principal Financial and Accounting Officer)
Date:   February 27, 2017