N-Q 1 c12439nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08236 Northern Funds ----------------------------------------------------- (Exact name of registrant as specified in charter) 50 South LaSalle Street Chicago, IL 60603 ----------------------------------------------------- (Address of principal executive offices) (Zip code) Lloyd A. Wennlund, President Northern Funds 50 South LaSalle Street Chicago, IL 60603 ----------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 557-2790 Date of fiscal year end: March 31 Date of reporting period: December 31, 2006 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: EQUITY FUNDS SCHEDULE OF INVESTMENTS EMERGING MARKETS EQUITY FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% ARGENTINA - 0.2% BBVA Banco Frances S.A. ADR 5,200 $ 50 Petroleo Brasileiro S.A. * 12,800 156 Telecom Argentina S.A. ADR * 11,200 224 ---------- 430 ---------- BERMUDA - 0.1% Credicorp Ltd. 8,625 353 ---------- BRAZIL - 3.8% All America Latina Logistica S.A. 36,000 372 Banco Nossa Caixa S.A. 3,000 67 Brasil Telecom Participacoes S.A. 5,534,000 90 Centrais Eletricas Brasileiras S.A. 11,820,000 282 Cia de Concessoes Rodoviarias 14,000 189 Cia de Saneamento Basico do Estado de Sao Paulo 1,573,000 216 Cia Siderurgica Nacional S.A. 12,000 363 Cia Vale do Rio Doce 70,927 2,125 Cosan SA Industria e Comercio * 6,000 125 Cyrela Brazil Realty S.A. 18,000 172 Diagnosticos da America S.A. * 4,000 85 EDP - Energias do Brasil S.A. 4,000 62 Empresa Brasileira de Aeronautica S.A. 43,000 442 Gafisa S.A. * 6,000 88 Gerdau S.A. 5,000 72 Lojas Renner S.A. 12,000 171 Natura Cosmeticos S.A. 10,000 141 Perdigao S.A. 8,242 115 Petroleo Brasileiro S.A. - Petrobras 119,166 3,039 Souza Cruz S.A. 8,000 144 Submarino S.A. 5,000 161 Tele Norte Leste Participacoes S.A. 7,000 182 Tractebel Energia S.A. 13,000 109 Unibanco - Uniao de Bancos Brasileiros S.A. 112,200 1,061 ---------- 9,873 ---------- CHILE - 1.5% Banco de Credito e Inversiones 3,200 95 Banco Santander Chile S.A. ADR 4,600 222 CAP S.A. 9,000 137 Centros Comerciales Sudamericanos S.A. 79,700 249 Cia Cervecerias Unidas S.A. ADR 3,000 89 Cia de Telecomunicaciones de Chile S.A. ADR 12,800 103 Cia Sudamericana de Vapores S.A. 42,200 57 Colbun S.A. 577,200 115
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED CHILE - 1.5% - (CONTINUED) CorpBanca S.A 9,134,200 $ 48 Cristalerias de Chile S.A. 3,400 37 Distribucion y Servicio D&S S.A. ADR 4,300 88 Empresa Nacional de Electricidad S.A. ADR 11,000 404 Empresa Nacional de Telecomunicaciones S.A. 10,300 115 Empresas CMPC S.A. 9,000 303 Empresas COPEC S.A. 45,600 584 Empresas Iansa S.A. 164,300 26 Enersis S.A. ADR 26,000 416 Inversiones Aguas Metropolitanas S.A. 49,000 60 Lan Airlines S.A. ADR 2,200 121 Madeco S.A. * 348,100 38 Masisa S.A. 327,400 66 Parque Arauco S.A. 45,300 33 SACI Falabella 46,600 164 Sociedad Quimica y Minera de Chile S.A. ADR 1,300 176 Vina Concha y Toro S.A. 35,900 54 ---------- 3,800 ---------- CHINA - 7.1% Air China Ltd. 254,000 138 Aluminum Corp. of China Ltd. 332,000 307 Angang New Steel Co. Ltd. 100,000 147 Anhui Conch Cement Co. Ltd. 46,000 153 Bank of China Ltd. * 2,356,146 1,294 Bank of Communications Co. Ltd. 595,000 722 Beijing Capital International Airport Co. Ltd. 142,000 111 Byd Co. Ltd. * 12,000 46 China Communications Construction Co. Ltd. * 191,000 189 China Construction Bank 2,593,643 1,651 China Eastern Airlines Corp. Ltd. * 98,000 21 China Life Insurance Co. Ltd. 739,502 2,525 China Petroleum & Chemical Corp. 1,756,751 1,626 China Shipping Container Lines Co. Ltd. 200,000 54 China Shipping Development Co. Ltd. 146,000 223 China Southern Airlines Co. Ltd. * 82,000 33 China Telecom Corp. Ltd. 1,456,000 798 COSCO Holdings 167,000 109 Datang International Power Generation Co. Ltd. 150,000 156 Dongfeng Motor Group Co. Ltd. * 256,000 124 FU JI Food and Catering Services Holdings Ltd. 18,000 47 Guangshen Railway Co. Ltd. 150,000 102 Guangzhou R&F Properties Co. Ltd. 112,800 244
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED CHINA - 7.1% - (CONTINUED) Huadian Power International Co. 120,000 $ 47 Huaneng Power International, Inc. 328,000 293 Hunan Non-Ferrous Metal Corp. Ltd. * 118,000 68 Industrial & Commercial Bank of China * 3,048,000 1,893 Jiangsu Express 130,000 82 Jiangxi Cooper Co. Ltd. 157,000 160 Maanshan Iron & Steel 186,000 102 PetroChina Co. Ltd. 1,985,038 2,813 PICC Property & Casualty Co. Ltd. * 258,000 132 Ping An Insurance Group Co. of China Ltd. 145,000 803 Semiconductor Manufacturing International Corp. * 1,261,000 164 Shanghai Electric Group Co. Ltd. 298,000 125 Shanghai Forte Land Co. 80,000 36 Shenzhen Expressway Co. Ltd. 52,000 31 Sinopec Shanghai Petrochemical Co. Ltd. 248,000 122 Sinopec Yizheng Chemical Fibre Co. Ltd. * 80,000 18 Sinotrans Ltd. 114,000 41 Travelsky Technology Ltd. 20,000 31 Tsingtao Brewery Co. Ltd. 26,000 44 Weichai Power Co. Ltd. 10,000 35 Weiqiao Textile Co. 41,000 55 Xinao Gas Holdings Ltd. 62,000 70 Yanzhou Coal Mining Co. Ltd. 188,000 152 Zhejiang Expressway Co. Ltd. 165,000 126 Zijin Mining Group Co. Ltd. 348,000 243 ZTE Corp. 13,800 64 ---------- 18,570 ---------- CZECH REPUBLIC - 0.7% CEZ 22,170 1,022 Komercni Banka A/S 1,610 240 Philip Morris CR A/S 100 52 Telefonica O2 Czech Republic A/S 11,740 268 Unipetrol * 8,130 92 Zentiva N.V 2,460 150 ---------- 1,824 ---------- EGYPT - 0.8% Alexandria Mineral Oils Co. 1,600 22 Commercial International Bank 17,320 176 Credit Agricole Egypt 5,200 15 Eastern Tobacco 1,200 65 Egyptian Co. for Mobile Services 3,680 116
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED EGYPT - 0.8% - (CONTINUED) Egyptian Financial & Industrial Co. 400 $ 5 Egyptian Financial Group-Hermes Holding * 18,340 129 Egyptian International Pharmaceutical Industrial Co. 2,900 13 Egyptian Media Production City * 5,300 10 EL Ezz Aldekhela Steel Alexandria 300 50 El Ezz Steel Rebars SAE * 2,900 27 El Watany Bank of Egypt * 5,920 34 Medinet Nasr Housing 2,200 42 Misr Beni Suef Cement Co. 1,200 23 Olympic Group Financial Investments 3,800 35 Orascom Construction Industries 8,400 406 Orascom Hotels & Development * 9,000 65 Orascom Telecom Holding SAE 10,300 681 Oriental Weavers 1,500 21 Sidi Kerir Petrochemcials Co. 2,800 56 Telecom Egypt 34,800 86 ---------- 2,077 ---------- HONG KONG - 4.3% Agile Property Holdings Ltd. 180,000 169 Beijing Enterprises Holdings Ltd. 26,000 56 Brilliance China Automotive Holdings Ltd. * 168,000 29 Chaoda Modern Agriculture 168,000 108 China Everbright Ltd. * 62,000 73 China Mengniu Dairy Co. Ltd. 98,000 258 China Merchants Holdings International Co. Ltd. 109,300 448 China Mobile Ltd. 518,486 4,480 China Overseas Land & Investment Ltd. 340,000 456 China Resources Enterprise Ltd. 122,000 351 China Resources Land Ltd. 118,000 141 China Resources Power Holdings Co. 124,000 187 China Travel International Inv HK 336,000 110 Citic Pacific Ltd. 119,000 411 CNOOC Ltd. 1,580,604 1,502 Cofco International Ltd. 80,000 81 Cosco Pacific Ltd. 116,000 272 Denway Motors Ltd. 532,000 216 Global Bio-Chem Technology Group Co. Ltd. 114,000 38 GOME Electrical Appliances Holdings Ltd. 106,000 83 Guangdong Investment Ltd. 272,000 123 Guangzhou Investment Co. Ltd. 374,000 105 Hopson Development Holdings Ltd. 68,000 192
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS EMERGING MARKETS EQUITY FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED HONG KONG - 4.3% - (CONTINUED) Li Ning Co. Ltd. 70,000 $ 112 Nine Dragons Paper Holdings Ltd. 114,000 196 Shanghai Industrial Holdings Ltd. 48,000 102 Shenzhen Investment Ltd. 114,000 48 Shimao Property Holdings Ltd.* 82,000 154 Sinochem Hong Kong Holding Ltd. 148,000 61 TPV Technology Ltd. 122,000 77 ---------- 10,639 ---------- HUNGARY - 1.1% Gedeon Richter Nyrt 1,421 324 Magyar Telekom Telecommunications PLC 48,158 268 MOL Hungarian Oil and Gas Nyrt 7,286 826 OTP Bank PLC 30,982 1,423 ---------- 2,841 ---------- INDIA - 6.4% Dr. Reddy's Laboratories Ltd. ADR 25,780 469 HDFC Bank Ltd. ADR 15,370 1,160 ICICI Bank Ltd. ADR 69,164 2,887 Infosys Technologies Ltd. ADR 91,849 5,011 Mahanagar Telephone Nigam ADR 22,400 142 Reliance Industries Ltd. GDR (London Exchange) (1) (2) 67,345 3,872 Reliance Industries Ltd. GDR (OTC Exchange)(1) (2) 4,000 230 Satyam Computer Services Ltd. ADR 48,460 1,164 Tata Motors Ltd. ADR 43,150 882 Wipro Ltd. ADR 37,540 606 ---------- 16,423 ---------- INDONESIA - 1.6% Aneka Tambang TbK PT 69,500 62 Astra Agro Lestari Tbk PT 38,000 53 Astra International Tbk PT 211,500 369 Bank Central Asia Tbk PT 638,500 369 Bank Danamon Indonesia Tbk PT 180,000 135 Bank Internasional Indonesia Tbk PT 1,834,500 49 Bank Mandiri Persero Tbk PT 622,500 201 Bank Pan Indonesia Tbk PT * 576,500 37 Bank Rakyat Indonesia 569,000 326 Berlian Laju Tanker Tbk PT 223,000 43 Bumi Resources Tbk PT 1,726,500 173 Energi Mega Persada Tbk PT * 382,500 22 Gudang Garam Tbk PT 59,500 67 Indocement Tunggal Prakarsa Tbk PT 90,500 58
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED INDONESIA - 1.6% - (CONTINUED) Indofood Sukses Makmur Tbk PT 453,000 $ 68 Indosat Tbk PT 254,500 191 International Nickel Indonesia Tbk PT 20,500 71 Kalbe Farma Tbk PT * 460,500 61 Perusahaan Gas Negara PT 190,000 245 Ramayana Lestari Sentosa TbK PT * 217,000 21 Semen Gresik Persero Tbk PT 15,000 61 Telekomunikasi Indonesia Tbk PT 1,050,321 1,180 Unilever Indonesia Tbk PT 158,500 116 United Tractors Tbk PT 136,500 99 ---------- 4,077 ---------- ISRAEL - 2.2% Africa Israel Investments Ltd. 1,400 106 Aladdin Knowledge Systems Ltd. * 1,000 19 Alvarion Ltd. * 5,800 39 AudioCodes Ltd. * 2,800 26 Bank Hapoalim BM 96,890 456 Bank Leumi Le-Israel BM 87,380 356 Bezeq Israeli Telecommunication Corp. Ltd. 108,180 176 Check Point Software Technologies * 19,600 430 Clal Industries and Investments 5,900 31 Clal Insurance 1,900 47 Discount Investment Corp. 2,000 58 ECI Telecom Ltd. * 5,700 49 Elbit Systems Ltd. 2,100 68 Given Imaging Ltd. * 1,300 25 Harel Insurance Investments Ltd. 720 39 IDB Development Corp. Ltd. 2,110 66 Israel (The) Corp. Ltd. 290 146 Israel Chemicals Ltd. 51,480 322 Israel Discount Bank Ltd. * 45,100 100 Koor Industries Ltd. * 907 48 Makhteshim-Agan Industries Ltd. 32,170 183 Migdal Insurance Holdings Ltd. 24,600 36 Mizrahi Tefahot Bank Ltd. 11,920 90 Nice Systems Ltd. * 5,120 158 Orbotech Ltd. * 3,200 81 Partner Communications 6,920 79 RADWARE Ltd. * 1,700 $ 27 Retalix Ltd. * 1,600 26 Strauss-Elite Ltd. 2,400 25 Super-Sol Ltd. * 7,380 28
EQUITY FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED ISRAEL - 2.2% - (CONTINUED) Syneron Medical Ltd. * 1,700 $ 46 Tadiran Communications Ltd. 700 27 Teva Pharmaceutical Industries Ltd. 73,880 2,305 ---------- 5,718 ---------- LUXEMBOURG - 0.6% Tenaris S.A. ADR 31,679 1,580 ---------- MALAYSIA - 2.5% AirAsia Bhd. * 80,000 34 AMMB Holdings Bhd 145,100 131 Astro All Asia Networks PLC 51,300 81 Berjaya Sports Toto Bhd 69,600 95 British American Tobacco Malaysia Bhd 13,200 162 Bumiputra - Commerce Holdings Bhd 231,100 508 Bursa Malaysia Bhd 33,000 75 DRB-Hicom Bhd 57,000 27 Gamuda Bhd 61,400 89 Genting Bhd 36,800 344 Golden Hope Plantations Bhd 45,400 77 Guinness Anchor Bhd 11,000 19 Highlands & Lowlands Bhd 14,000 21 Hong Leong Bank Bhd 48,600 76 Hong Leong Financial Group Bhd 18,000 25 IGB Corp. Bhd 71,000 36 IJM Corp. Bhd 37,000 77 IOI Corp. Bhd 72,400 378 IOI Properties Bhd 8,000 22 KLCC Property Holdings Bhd 42,000 34 Kuala Lumpur Kepong Bhd 26,100 100 Kurnia Asia Bhd 27,000 9 Lafarge Malayan Cement Bhd 131,000 51 Magnum Corp. Bhd 84,000 57 Malakoff Bhd 56,700 162 Malayan Banking Bhd 198,700 665 Malaysia International Shipping Corp. Bhd. (MISC) 117,600 297 Malaysian Airline System Bhd. * 24,000 32 Malaysian Bulk Carriers Bhd 19,000 14 Malaysian Pacific Industries 8,000 24 Malaysian Resources Corp Bhd. * 62,000 18 Maxis Communications Bhd 92,900 269 Media Prima Bhd 61,000 43 MMC Corp. Bhd 29,200 33
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED MALAYSIA - 2.5% - (CONTINUED) Mulpha International Bhd. * 80,000 $ 31 Multi-Purpose Holdings Bhd. * 48,000 18 Petronas Dagangan Bhd 23,600 33 Petronas Gas Bhd 40,900 104 PLUS Expressways Bhd 158,000 126 POS Malaysia & Services Holdings Bhd 32,000 45 PPB Group Bhd 51,000 79 Proton Holdings Bhd 26,000 49 Public Bank Bhd 106,000 236 Resorts World Bhd 51,500 213 RHB Capital Bhd 72,000 70 Road Builder M Holdings Bhd 35,000 34 Scomi Group Bhd 48,000 14 Shell Refining Co. Federation of Malaya Bhd 16,000 48 Sime Darby Bhd 156,200 319 SP Setia Bhd 50,400 73 Star Publications Malaysia Bhd 45,000 39 TA Enterprise Bhd 50,000 11 TAN Chong Motor Holdings Bhd 24,000 9 Tanjong PLC 22,600 92 Telekom Malaysia Bhd 88,100 244 Tenaga Nasional Bhd 108,400 335 Transmile Group Bhd 14,000 56 UMW Holdings Bhd 23,000 50 YTL Corp. Bhd 66,400 123 ---------- 6,536 ---------- MEXICO - 6.0% Alfa S.A. de C.V., Class A 34,000 226 America Movil S.A. de C.V., Series L 1,913,417 4,314 Carso Infraestructura y Construccion S.A. de C.V. * 67,000 64 Cemex S.A. de C.V., CPO * 740,546 2,509 Coca-Cola Femsa S.A. de CV, Series L 28,000 106 Consorcio ARA S.A. de C.V 22,000 150 Controladora Comercial Mexicana S.A. de C.V., UBC 33,000 86 Corp. GEO S.A. de C.V., Series B * 45,000 225 Desarrolladora Homex S.A. de C.V. * 15,000 147 Empresas ICA Sociedad Controladora S.A. de C.V. * 36,000 136 Fomento Economico Mexicano S.A. de C.V., UBD 75,000 870
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS EMERGING MARKETS EQUITY FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED MEXICO - 6.0% - (CONTINUED) Grupo Aeroportuario del Pacifico S.A. de C.V., Class B 43,000 $ 169 Grupo Aeroportuario del Sureste S.A. de C.V., Class B 25,000 106 Grupo Bimbo S.A. de C.V., Series A 29,000 145 Grupo Carso S.A. de C.V., Series A1 62,000 229 Grupo Financiero Banorte S.A. de C.V., Class O 138,000 539 Grupo Mexico SAB de C.V., Series B 109,000 399 Grupo Modelo S.A., Series C 56,000 311 Grupo Televisa S.A., Series CPO 245,612 1,331 Industrias Penoles S.A. de C.V. 10,000 92 Kimberly-Clark de Mexico S.A. de C.V., Class A 49,000 225 Telefonos de Mexico S.A. de C.V., Series L 1,003,388 1,423 TV Azteca S.A. de C.V., CPO 114,000 87 Urbi Desarrollos Urbanos S.A. de C.V * 28,000 101 Wal-Mart de Mexico S.A. de C.V., Series V 323,971 1,425 ---------- 15,415 ---------- MOROCCO - 0.2% Attijariwafa Bank 300 82 Banque Marocaine du Commerce Exterieur 400 59 Brasseries Maroc 100 20 Holcim Maroc SA 200 48 Lafarge Ciments/Morocco 100 45 Managem 200 10 Marco Telecom 13,500 207 ONA SA 400 73 Samir 300 29 Societe Nationale d'Investissement 200 33 Sonasid 100 25 ---------- 631 ---------- PAKISTAN - 0.2% Engro Chemical Pakistan Ltd. 7,500 21 Fauji Fertilizer Co Ltd. 17,200 30 Faysal Bank Ltd. 8,200 8 HUB Power Co. 51,500 23 ICI Pakistan Ltd. 3,300 6 Lucky Cement Ltd. 15,500 15 MCB Bank Ltd. 22,800 92 National Bank Of Pakistan 14,800 55 Nishat Mills Ltd. 6,200 9 Oil & Gas Development Co Ltd. 53,800 101 Pakistan Petroleum Ltd. 4,700 18 Pakistan State Oil Co Ltd. 9,000 43
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED PAKISTAN - 0.2% - (CONTINUED) Pakistan Telecommunication Co. Ltd. 51,000 $ 37 SUI Northern Gas Pipeline 10,700 12 United Bank Ltd. 12,800 32 ---------- 502 ---------- PHILIPPINES - 0.5% Ayala Corp. 10,600 128 Ayala Land, Inc. 452,400 141 Banco de Oro Universal Bank 37,800 35 Bank of the Philippine Islands 112,940 146 Equitable PCI Bank * 11,200 19 Filinvest Land, Inc. * 360,000 16 First Philippine Holdings Corp. 22,000 28 Globe Telecom, Inc. 2,750 69 Jollibee Foods Corp. 35,600 31 Manila Electric Co. 32,300 36 Megaworld Corp. * 1,055,000 52 Metropolitan Bank & Trust 57,000 60 Petron Corp. 172,000 14 Philippine Long Distance Telephone Co. 5,750 299 San Miguel Corp., Class B 24,600 39 SM Investments Corp. 13,880 92 SM Prime Holdings 365,000 80 ---------- 1,285 ---------- POLAND - 1.6% Agora S.A. 4,526 57 Asseco Poland S.A. 1,095 19 Bank BPH 901 287 Bank Pekao S.A. 7,829 612 Bank Zachodni WBK S.A. 2,255 175 Boryszew S.A. * 1,596 13 BRE Bank S.A. * 883 102 Budimex S.A. * 1,114 29 Computerland Poland S.A. 593 21 Debica 517 14 Globe Trade Centre S.A. * 11,418 158 Grupa Kety S.A. 953 66 KGHM Polska Miedz S.A. 11,508 353 Mondi Packaging Paper Swiecie S.A. 1,216 44 Orbis S.A. 2,886 63 Polish Oil & Gas Co. 123,707 153 Polska Grupa Farmaceutycz 887 24 Polski Koncern Naftowy Orlen 33,412 549
EQUITY FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED POLAND - 1.6% - (CONTINUED) Powszechna Kasa Oszczednosci Bank Polski S.A. 41,727 $ 675 Prokom Software S.A. 1,175 55 Telekomunikacja Polska S.A. 73,048 618 TVN S.A. * 13,325 112 ---------- 4,199 ---------- RUSSIA - 10.1% Comstar United Telesystems, GDR 15,500 130 LUKOIL ADR (London Exchange) 29,180 2,550 LUKOIL ADR (OTC Exchange) 22,800 2,018 Mechel OAO ADR 2,342 60 MMC Norilsk Nickel ADR 8,395 1,417 Mobile Telesystems ADR 20,664 1,037 NovaTek OAO GDR (Registered) 7,600 483 Novolipet Steel GDR (Registered) 2,800 65 Novolipetsk Steel GDR (London Exchange) * 9,200 216 OAO Gazprom ADR (London Exchange) 243,640 11,208 OAO Gazprom ADR (OTC Exchange) 18,300 849 Polyus Gold Co. ADR* 8,377 406 Rostelecom ADR 7,140 325 Sistema JSFC GDR 9,600 307 Surgutneftegaz ADR (London Exchange) 600 45 Surgutneftegaz ADR (OTC Exchange) 17,105 1,309 Surgutneftegaz ADR (Preferred) 7,705 863 Tatneft GDR 7,035 668 Unified Energy System ADR 8,800 951 Unified Energy System GDR (Registered) 1,300 141 Uralsvyazinform ADR 5,000 65 Vimpel-Communications ADR * 9,587 757 Wimm-Bill-Dann Foods OJSC ADR 1,597 106 ---------- 25,976 ---------- SOUTH AFRICA - 8.1% African Bank Investments Ltd. 48,437 197 Alexander Forbes Ltd. * 32,286 72 Allan Gray Property Trust 107,241 93 Anglo Platinum Corp. Ltd. 6,784 828 Anglogold Ashanti Ltd. 15,971 751 Aspen Pharmacare Holdings Ltd. * 22,308 103 Aveng Ltd. 38,697 185 AVI Ltd. 31,510 88 Barloworld Ltd. 22,326 522 Bidvest Group Ltd. 27,100 517 Consol Ltd. 29,039 78
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED SOUTH AFRICA - 8.1% - (CONTINUED) Edgars Consolidated Stores Ltd. 54,022 $ 300 Ellerine Holdings Ltd. 9,905 110 FirstRand Ltd. 295,179 934 Foschini Ltd. 21,457 176 Gold Fields Ltd. 52,299 989 Grindrod Ltd. 29,250 65 Harmony Gold Mining Co. Ltd. * 35,737 566 Impala Platinum Holdings Ltd. 55,117 1,445 Imperial Holdings Ltd. * 19,553 457 Investec Ltd. 16,622 208 JD Group Ltd. 18,668 212 Kumba Iron Ore Ltd. * 6,651 105 Lewis Group Ltd. 8,645 73 Liberty Group Ltd. 11,508 136 Massmart Holdings Ltd. 21,083 211 Metropolitan Holdings Ltd. 52,741 113 Mittal Steel South Africa Ltd. 21,856 306 MTN Group Ltd. 139,381 1,694 Murray & Roberts Holdings Ltd. 30,315 173 Nampak Ltd. 52,169 162 Naspers Ltd. 31,503 745 Nedbank Group Ltd. 21,473 409 Network Healthcare Holdings Ltd. * 126,860 250 Pick'n Pay Stores Ltd. 21,087 99 Pretoria Portland Cement Co. Ltd. 1,213 67 Reunert Ltd. 17,620 205 Sanlam Ltd. 241,935 631 Sappi Ltd. 20,585 345 Sasol Ltd. 61,594 2,271 Shoprite Holdings Ltd. 46,552 170 Spar Group (The) Ltd. 15,700 97 Standard Bank Group Ltd. 127,176 1,713 Steinhoff International Holdings Ltd. 98,725 350 Super Group Ltd. 22,175 36 Telkom S.A. Ltd. 31,261 630 Tiger Brands Ltd. 17,243 420 Tongaat-Hulett Group (The) Ltd. 4,783 76 Truworths International Ltd. 47,980 219 Woolworths Holdings Ltd. 85,669 220 ---------- 20,822 ----------
NORTHERN FUNDS QUARTERLY REPORT 6 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS EMERGING MARKETS EQUITY FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED SOUTH KOREA - 14.4% Amorepacific Corp.* 309 $ 193 Asiana Airlines * 6,240 46 Cheil Communications, Inc. 396 98 Cheil Industries, Inc. 4,640 196 CJ Corp. 2,007 242 Daeduck Electronics Co. * 1,540 12 Daegu Bank * 12,690 217 Daelim Industrial Co. * 2,470 202 Daewoo Engineering & Construction Co. Ltd. * 16,470 338 Daewoo International Corp. * 4,440 186 Daewoo Securities Co. Ltd. 12,220 246 Daewoo Shipbuilding & Marine Engineering Co. Ltd. * 10,380 326 Daishin Securities Co. Ltd. 3,450 87 Daum Communications Corp. * 717 44 Dongbu Insurance Co. Ltd. 2,850 76 Dongkuk Steel Mill Co. Ltd. * 4,600 116 Doosan Infracore Co. Ltd. * 6,470 146 GS Engineering & Construction Corp. * 3,820 341 Hana Financial Group, Inc. 12,210 642 Hanjin Heavy Industries & Construction Co. Ltd. * 4,850 158 Hanjin Shipping Co. Ltd. * 5,720 162 Hankook Tire Co. Ltd. 11,230 191 Hanmi Pharm Co. Ltd. * 514 77 Hanwha Chem Corp. * 4,140 55 Hite Brewery Co. Ltd. * 1,034 133 Honam Petrochemical Corp. * 1,620 121 Hyosung Corp. * 2,420 71 Hyundai Autonet Co. Ltd. * 9,210 90 Hyundai Department Store Co. Ltd. * 1,300 117 Hyundai Development Co. * 6,700 409 Hyundai Engineering & Construction Co. Ltd. * 4,870 299 Hyundai Heavy Industries * 4,802 651 Hyundai Marine & Fire Insurance Co. Ltd. 7,210 91 Hyundai Mipo Dockyard * 1,100 141 Hyundai Mobis * 5,802 536 Hyundai Motor Co. Ltd. * 16,212 1,175 Hyundai Securities Co. 10,620 143 Kangwon Land, Inc. * 11,230 244 KCC Corp. 510 159 KIA Motors Corp. * 20,170 292 Kookmin Bank * 35,225 2,837 Korea Electric Power Corp. * 27,116 1,236
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED SOUTH KOREA - 14.4% - (CONTINUED) Korea Exchange Bank * 8,760 $ 121 Korea Investment Holdings Co. Ltd. 3,850 192 Korea Zinc Co. Ltd. 1,200 127 Korean Air Lines Co. Ltd. 3,889 148 Korean Reinsurance Co. 8,150 111 KT Corp. 14,600 730 KT Freetel Co. Ltd. * 10,230 327 KT&G Corp. * 11,928 725 LG Chem Ltd. * 4,950 229 LG Electronics, Inc. 10,104 598 LG Fashion Corp. * 1,767 40 LG Household & Health Care Ltd. * 1,224 163 LG International Corp. 4,522 112 LG Petrochemical Co. Ltd. 2,080 53 LG.Philips LCD Co. Ltd. * 9,790 293 Lotte Chilsung Beverage Co. Ltd. * 70 105 Lotte Confectionery Co. Ltd. * 80 104 Lotte Shopping Co. Ltd. * 934 388 LS Cable Ltd. * 1,510 62 Mirae Asset Securities Co. Ltd. 1,494 121 NCSoft Corp. * 1,470 84 NHN Corp. * 3,864 474 Nong Shim Co. Ltd. * 328 101 Orion Corp. * 300 88 Pacific Corp. * 140 26 Poongsan Corp. * 2,170 54 POSCO 7,769 2,581 Pusan Bank * 11,670 146 S-Oil Corp. 4,740 349 S1 Corp. of Korea 1,550 72 Samsung Corp. 13,880 457 Samsung Electro-Mechanics Co. Ltd. 6,440 300 Samsung Electronics Co. Ltd. 12,288 8,100 Samsung Engineering Co. Ltd. 3,330 155 Samsung Fine Chemicals Co. Ltd. 950 24 Samsung Fire & Marine Insurance Co. Ltd. 3,858 670 Samsung Heavy Industries Co. Ltd. 18,100 434 Samsung SDI Co. Ltd. * 3,270 226 Samsung Securities Co. Ltd. 5,924 323 Samsung Techwin Co. Ltd. 4,280 156 Shinhan Financial Group Co. Ltd. * 22,200 1,134 Shinsegae Co. Ltd. 1,505 939
EQUITY FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED SOUTH KOREA - 14.4% - (CONTINUED) SK Corp. 11,567 $ 908 SK Telecom Co. Ltd. 4,175 999 Tong Yang Investment Bank * 8,780 104 Woongjin Coway Co. Ltd. * 4,420 123 Woori Investment & Securities Co. Ltd. 9,530 205 Yuhan Corp. * 817 156 ---------- 37,279 ---------- TAIWAN - 12.1% Accton Technology Corp. * 40,000 25 Acer, Inc. 230,280 481 Advanced Semiconductor Engineering, Inc. * 335,000 380 Advantech Co Ltd. 22,219 80 Asia Cement Corp. 143,520 137 Asia Optical Co., Inc. 17,450 75 Asustek Computer, Inc. 262,900 720 AU Optronics Corp. 630,180 876 Benq Corp. * 243,000 130 Catcher Technology Co. Ltd. 30,161 295 Cathay Financial Holding Co. Ltd. 564,720 1,282 Cathay Real Estate Development Co. Ltd. * 80,000 57 Chang Hwa Commercial Bank * 409,000 286 Cheng Shin Rubber Industry Co. Ltd. 56,750 56 Cheng Uei Precision Industry Co. Ltd. 25,159 90 Chi Mei Optoelectronics Corp. 370,048 375 China Airlines * 132,034 62 China Development Financial Holding Corp. 919,690 423 China Motor Corp. 47,390 44 China Steel Corp. 866,668 920 Chinatrust Financial Holding Co. 625,480 523 Chunghwa Picture Tubes Ltd. * 672,000 144 Chunghwa Telecom Co. Ltd. ADR 24,815 490 Chunghwa Telecom Co. Ltd.. 258,000 480 CMC Magnetics Corp. * 235,000 83 Compal Communications, Inc. 15,900 52 Compal Electronics, Inc. 345,758 308 Compeq Manufacturing Co. * 73,000 34 D-Link Corp. 55,600 73 Delta Electronics, Inc. 145,900 470 E.Sun Financial Holding Co. Ltd. 269,200 187 Eternal Chemical Co. Ltd. 40,300 62 Eva Airways Corp. 116,000 48 Evergreen Marine Corp. Tawain Ltd. 88,180 51
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED TAIWAN - 12.1% - (CONTINUED) Far Eastern Textile Co. Ltd. 261,620 $ 229 First Financial Holding Co. Ltd. 447,250 340 Formosa Chemicals & Fibre Co. 296,520 496 Formosa Petrochemical Corp. 196,000 431 Formosa Plastics Corp. 418,390 695 Formosa Taffeta Co. Ltd. 72,540 55 Foxconn Technology Co. Ltd. 33,900 406 Fu Sheng Industrial Co. Ltd. 52,560 51 Fubon Financial Holding Co. Ltd. 365,000 342 Fuhwa Financial Holdings Co. Ltd. * 115,000 58 Giant Manufacturing Co. Ltd. 17,000 28 Gigabyte Technology Co. Ltd. 49,000 37 HannStar Display Corp. * 426,000 81 High Tech Computer Corp. 31,400 622 HON HAI Precision Industry Co. Ltd. 426,894 3,046 Hua Nan Financial Holdings Co. Ltd. 348,000 258 Inventec Appliances Corp. 17,100 48 Inventec Co. Ltd. 161,080 142 Kinpo Electronics 81,740 32 Largan Precision Co. Ltd. 10,500 203 Lite-On Technology Corp. 249,993 338 Macronix International * 252,000 109 MediaTek, Inc. 79,200 819 Mega Financial Holding Co. Ltd. 892,000 656 Micro-Star International Co. Ltd. 59,310 47 Mitac International 102,743 124 Nan Ya Plastics Corp. 515,800 860 Nan Ya Printed Circuit Board Corp. 20,000 138 Nien Made Enterprises 18,000 18 Novatek Microelectronics Corp. Ltd. 46,527 211 Optimax Technology Corp. * 35,000 25 Oriental Union Chemical Corp. 42,000 28 Phoenix Precision Technology Corp. 57,761 69 Phoenixtec Power Co. Ltd. 30,000 33 Polaris Securities Co. Ltd. * 160,012 84 POU Chen Corp. 203,646 231 President Chain Store Corp. 47,000 113 Quanta Computer, Inc. 174,684 317 Realtek Semiconductor Corp. 70,450 121 Ritek Corp. * 180,000 53 Shin Kong Financial Holding Co. Ltd. 288,828 311 Siliconware Precision Industries Co. 254,752 400
NORTHERN FUNDS QUARTERLY REPORT 8 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS EMERGING MARKETS EQUITY FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED TAIWAN - 12.1% - (CONTINUED) Sinopac Financial Holdings Co. Ltd. 527,000 $ 282 Synnex Technology International Corp. 61,900 78 Taishin Financial Holdings Co. Ltd. * 454,000 266 Taiwan Cement Corp. 286,014 258 Taiwan Fertilizer Co Ltd. 76,000 145 Taiwan Glass Industrial Corp. 51,080 44 Taiwan Mobile Co. Ltd. 240,343 249 Taiwan Secom Co. Ltd. 21,100 38 Taiwan Semiconductor Manufacturing Co. Ltd. 2,155,797 4,466 Tatung Co. Ltd. * 372,000 167 Teco Electric and Machinery Co. Ltd. 167,000 85 U-Ming Marine Transport Corp. 42,000 57 Uni-President Enterprises Corp. 278,000 277 United Microelectronics Corp. 1,807,489 1,123 Via Technologies, Inc. * 82,000 102 Walsin Lihwa Corp. * 280,000 149 Wan Hai Lines Ltd. 106,200 65 Waterland Financial Holdings 120,000 40 Winbond Electronics Corp. * 288,000 118 Wintek Corp. 75,508 72 Ya Hsin Industrial Co. Ltd. 79,548 65 Yageo Corp. * 239,000 111 Yang Ming Marine Transport 122,000 70 Yieh Phui Enterprise 73,960 33 Yuanta Core Pacific Securities Co. 273,000 227 Yuen Foong Yu Paper Manufacturing Co. Ltd. 91,748 40 Yulon Motor Co. Ltd. 74,705 91 Zyxel Communications Corp. 32,080 40 ---------- 31,262 ---------- THAILAND - 1.4% Advanced Info Service PCL 5,900 13 Advanced Info Service PCL (Registered) 85,400 188 Airports of Thailand PCL 41,900 69 Airports of Thailand PCL (Registered) 1,900 3 Aromatics Thailand PCL 20,400 19 Bangkok Bank PCL 40,900 127 Bangkok Bank PCL (Registered) 96,100 312 Bangkok Expressway PCL 61,600 42 Banpu PCL 6,700 34 Banpu PCL (Registered) 7,300 38 BEC World PCL 6,000 4 BEC World PCL (Registered) 89,100 53
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED THAILAND - 1.4% - (CONTINUED) Central Pattana PCL 4,400 $ 3 Central Pattana PCL (Registered) 59,800 39 Charoen Pokphand Foods PCL 306,000 43 CP Seven Eleven PCL 207,600 37 CP Seven Eleven PCL 14,300 3 Delta Electronics Thai PCL 76,900 38 Electricity Generating PCL 19,200 52 Glow Energy PCL 52,100 48 Hana Microelectronics PCL 50,700 40 IRPC PCL * 906,400 156 Italian-Thai Development PCL 128,200 20 Kasikornbank PCL 52,500 91 Kasikornbank PCL (Registered) 120,200 212 Kiatnakin Bank PCL 21,600 18 Kim Eng Securities Thailand PCL 42,000 21 Krung Thai Bank PCL 9,000 3 Krung Thai Bank Public Co. Ltd. 271,500 91 Land and Houses PCL 203,900 37 Land and Houses PCL (Registered) 207,600 40 Precious Shipping PCL 19,900 29 Precious Shipping PCL (Registered) 18,500 24 PTT Chemical PCL 1,800 4 PTT Chemical PCL (Registered) 26,800 55 PTT Exploration & Production PCL 3,500 10 PTT Exploration & Production PCL 114,600 312 (Registered) PTT PCL 2,500 14 PTT PCL (Registered) 72,800 419 PTT PCL NVDR 10,700 63 Ratchaburi Electricity Generating Holding PCL 2,200 3 Ratchaburi Electricity Generating Holding PCL (Registered) 33,200 40 Rayong Refinery PCL * 7,100 3 Rayong Refinery PCL (Registered) * 135,500 65 Sahaviriya Steel Industries PCL * 511,500 15 Siam Cement PCL 13,800 94 Siam Cement PCL (Registered) 30,900 221 Siam City Cement PCL 6,400 46 Siam Commercial Bank PCL 4,000 7 Siam Commercial Bank PCL (Registered) 84,000 121 Siam Makro PCL (Registered) 8,400 23 Sino Thai Engineering & Construction PCL (Registered) 90,700 12 Thai Airways International PCL * 50,000 62
EQUITY FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED THAILAND - 1.4% - (CONTINUED) Thai Union Frozen Products PCL 26,500 $ 19 Thanachart Capital PCL * 66,400 26 Tisco Bank PCL 22,900 14 True Corp. PCL * 177,900 32 ---------- 3,627 ---------- TURKEY - 1.4% Adana Cimento 3,799 21 Akbank TAS 80,375 488 Akcansa Cimento A.S. 4,797 29 Aksigorta A.S. 12,767 48 Alarko Holding A.S. 4,481 11 Anadolu Efes Biracilik Ve Malt Sanayii A.S. 5,929 183 Arcelik 10,299 61 Aygaz A.S. * 6,244 18 Cimsa Cimento Sanayi VE Tica 3,228 21 Dogan Sirketler Grubu Holdings 54,589 86 Dogan Yayin Holding * 21,786 77 Dogus Otomotiv Servis ve Ticaret A.S 3,373 14 Eregli Demir ve Celik Fabrikalari TAS 20,594 131 Ford Otomotiv Sanayi A.S. 7,191 58 Haci Omer Sabanci Holding A.S. 47,238 185 Hurriyet Gazetecilik A.S. 19,743 52 Ihlas Holding * 24,271 8 Is Gayrimenkul Yatirim Ortakligi AS 14,564 30 KOC Holding A.S. * 26,301 102 Migros Turk TAS * 10,222 132 Petkim Petrokimya Holding * 8,288 30 Tofas Turk Otomobil Fabrikasi A.S. 12,619 44 Trakya Cam Sanayi A.S. 10,720 29 Tupras Turkiye Petrol Rafine 13,124 224 Turk Hava Yollari * 7,369 32 Turk Sise ve Cam Fabrikalari A.S. * 15,291 54 Turkcell Iletisim Hizmet AS 58,934 297 Turkiye Garanti Bankasi A.S. 97,743 323 Turkiye Is Bankasi 100,715 462 Turkiye Vakiflar Bankasi Tao 40,439 190 Ulker Gida Sanayi ve Ticaret A.S. 6,338 17 Vestel Elektronik Sanayi * 7,028 18 Yapi ve Kredi Bankasi * 63,205 110 ---------- 3,585 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 89.4% - CONTINUED UNITED STATES - 0.5% Ginnie Mae II pool * 2,800 $ 197 Lenovo Group Ltd. 388,000 157 Southern Copper Corp. 14,565 785 ---------- 1,139 ---------- TOTAL COMMON STOCKS (COST $208,780) 230,463 ---------- PREFERRED STOCKS - 6.9% BRAZIL - 6.3% Aracruz Celulose S.A., Class B 50,000 307 Banco Bradesco S.A. 49,513 1,993 Banco Itau Holding Financeira S.A. 54,182 1,960 Brasil Telecom Participacoes S.A. 21,718,000 186 Braskem S.A., Class A 16,000 113 Centrais Eletricas Brasileiras S.A., Class B 9,679,000 217 Cia Brasileira de Distribuicao Grupo Pao de Acucar 2,973,000 103 Cia de Bebidas das Americas 2,147,652 1,058 Cia de Gas de Sao Paulo, Class A 160,000 26 Cia de Tecidos do Norte de Minas - Coteminas 248,000 29 Cia Energetica de Minas Gerais 9,588,000 471 Cia Energetica de Sao Paulo, Class B * 15,586,000 182 Cia Paranaense de Energia, Class B 10,745,000 126 Cia Vale do Rio Doce, Class A 100,167 2,539 Duratex S.A. 7,000 108 Eletropaulo Metropolitana de Sao Paulo S.A., Class B * 1,912,000 98 Gerdau S.A. 32,000 524 Gol Linhas Aereas Inteligentes S.A. 5,000 148 Klabin S.A. 59,000 148 Lojas Americanas S.A. 3,081,000 172 Petroleo Brasileiro S.A. - Petrobras 163,533 3,812 Sadia S.A. 39,000 132 Tam S.A. 8,000 248 Tele Norte Leste Participacoes S.A. 28,000 420 Telemig Celular Participacoes S.A. 15,591,000 29 Tim Participacoes S.A. 65,461,778 227 Usinas Siderurgicas de Minas Gerais S.A., Class A 12,000 452
NORTHERN FUNDS QUARTERLY REPORT 10 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS EMERGING MARKETS EQUITY FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- PREFERRED STOCKS - 6.9% - CONTINUED BRAZIL - 6.3% - (CONTINUED) Vivo Participacoes S.A. * 54,000 $ 221 Votorantim Celulose e Papel S.A. 9,000 176 Weg S.A. 14,000 99 ---------- 16,324 ---------- CHILE - 0.1% Embotelladora Andina S.A. 17,700 46 Embotelladora Andina S.A., Class B 20,200 58 ---------- 104 ---------- SOUTH KOREA - 0.5% Hyundai Motor Co. * 3,600 147 LG Electronics, Inc. * 1,340 46 Samsung Electronics Co. Ltd. 2,261 1,167 ---------- 1,360 ---------- TOTAL PREFERRED STOCKS (COST $16,514) 17,788 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- RIGHTS - 0.0% Megaworld Corp. * 220,000 2 YTL Corp Bhd. * 6,140 2 ---------- TOTAL RIGHTS (COST $-) 4 ---------- WARRANTS - 0.0% China Overseas Land & Investment Ltd., Exp. 7/18/07, Strike $4.50 * 27,750 22 ---------- TOTAL WARRANTS (COST $-) 22 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 1.4% ING, Belgium Brussels, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 3,684 $ 3,684 ------------- ---------- TOTAL SHORT-TERM INVESTMENT (COST $3,684) 3,684 ---------- TOTAL INVESTMENTS - 97.7% (COST $228,978) 251,961 Other Assets less Liabilities - 2.3% 6,022 ---------- NET ASSETS - 100.0% $ 257,983
* Non-Income Producing Security (1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of The value of these securities 1933. is determined by valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of Northern Funds. (2) Restricted security that has been deemed illiquid. At December 31, 2006, the value of these restricted illiquid securities amounted to approximately $4,102,000 or 1.6% of net assets. Additional information on each restricted illiquid security is as follows:
ACQUISITION ACQUISITION COST SECURITY DATE (000S) -------- ---------------- ----------- Reliance Industries Ltd. GDR (London Exchange) 11/1/06-12/27/06 $3,839 Reliance Industries Ltd. GDR (OTC Exchange) 11/9/06 226
EQUITY FUNDS 11 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED) At December 31, 2006, the Emerging Markets Equity Fund had open futures contracts as follows:
NUMBER NOTIONAL UNREALIZED OF AMOUNT CONTRACT CONTRACT GAIN TYPE CONTRACTS (000S) POSITION EXP. (000S) ---- --------- -------- -------- -------- ---------- DAX Index 6 $1,317 Long 3/07 $ 14 Hang Seng Index 3 386 Long 1/07 10 JSE All Share Index 82 2,683 Long 3/07 70 MSCI Taiwan SGX 75 2,401 Long 1/07 44 Nikkei 225 CME 3 259 Long 3/07 9 S&P Canada 60 Index 5 640 Long 3/07 2 SPI 200 Index 9 1,002 Long 3/07 6 STXX 50 Index 2 110 Long 3/07 1 ---- Total $156
At December 31, 2006, the industry sectors for the Emerging Markets Equity Fund were:
% OF LONG-TERM INDUSTRY SECTOR INVESTMENTS --------------- -------------- Consumer Discretionary 5.0% Consumer Staples 4.5 Energy 18.9 Financials 19.3 Health Care 1.7 Industrials 11.5 Information Technology 15.4 Materials 11.8 Telecommunication Services 8.7 Utilities 3.2 ----- Total 100.0%
At December 31, 2006, the Emerging Markets Equity Fund's investments were denominated in the following currencies:
% OF LONG-TERM CONCENTRATION BY CURRENCY INVESTMENTS ------------------------- -------------- U.S. Dollar 19.3% South Korean Won 15.4 Taiwan Dollar 12.2 Hong Kong Dollar 11.7 Brazil Real 10.3 South African Rand 8.3 Mexican Peso 6.1 All other currencies less than 5% 16.7 ----- Total 100.0%
At December 31, 2006, the Emerging Markets Equity Fund had outstanding forward foreign currency exchange contracts as follows:
AMOUNT IN AMOUNT CONTRACTS (LOCAL EXCHANGE (LOCAL UNREALIZED TO DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT LOSS CURRENCY (000S) CURRENCY (000S) DATE (000S) ---------- --------- ---------- --------- ---------- ---------- U.S. Egyptian Dollar 47 Pound 265 1/2/07 $ -- U.S. Israeli Dollar 100 Shekel 421 1/2/07 -- U.S. Philippino Dollar 18 Peso 892 1/2/07 -- U.S. Hong Kong Dollar 500 Dollar 3,889 1/3/07 -- U.S. Indonesian Dollar 46 Rupiah 409,303 1/3/07 -- U.S. Malaysian Dollar 90 Ringgit 316 1/3/07 -- U.S. Mexican Dollar 265 Peso 2,863 1/3/07 -- U.S. Polish Dollar 75 Zlotiy 217 1/3/07 -- South U.S. African Dollar 365 Rand 2,559 1/3/07 (1) ---- Total $ (1)
NORTHERN FUNDS QUARTERLY REPORT 12 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS DECEMBER 31, 2006 (UNAUDITED) EMERGING MARKETS EQUITY FUND (continued) Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $288,978 -------- Gross tax appreciation of investments $ 28,704 Gross tax depreciation of investments (5,721) -------- Net tax appreciation of investments $ 22,983 ========
EQUITY FUNDS 13 NORTHERN FUNDS QUARTERLY REPORT EQUITY FUNDS SCHEDULE OF INVESTMENTS ENHANCED LARGE CAP FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.5% ADVERTISING - 0.5% Omnicom Group, Inc. 5,300 $ 554 ---------- AEROSPACE/DEFENSE - 2.2% Boeing (The) Co. 8,500 755 Lockheed Martin Corp. 8,800 810 Northrop Grumman Corp. 9,600 650 United Technologies Corp. 4,100 257 ---------- 2,472 ---------- AGRICULTURE - 2.1% Altria Group, Inc. 16,400 1,407 Archer-Daniels-Midland Co. 22,200 710 Reynolds American, Inc. 2,900 190 ---------- 2,307 ---------- APPAREL - 0.4% Jones Apparel Group, Inc. 11,700 391 ---------- AUTO MANUFACTURERS - 0.4% General Motors Corp. 15,800 485 ---------- BANKS - 6.8% Bank of America Corp. 47,703 2,547 Comerica, Inc. 6,700 393 KeyCorp 15,900 605 Mellon Financial Corp. 500 21 National City Corp. 18,100 662 Regions Financial Corp. 19,400 726 Wachovia Corp. 14,600 831 Wells Fargo & Co. 39,900 1,419 Zions Bancorporation 4,300 354 ---------- 7,558 ---------- BEVERAGES - 2.4% Anheuser-Busch Cos., Inc. 4,500 221 Brown-Forman Corp., Class B 700 46 Coca-Cola (The) Co. 21,900 1,057 Molson Coors Brewing Co., Class B 4,100 313 Pepsi Bottling Group, Inc. 13,800 427 PepsiCo, Inc. 10,100 632 ---------- 2,696 ---------- BIOTECHNOLOGY - 1.1% Amgen, Inc. * 17,600 1,202 ---------- BUILDING MATERIALS - 0.4% Masco Corp. 12,800 382 ---------- CHEMICALS - 1.0% Ashland, Inc. 7,000 484
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.5% - CONTINUED CHEMICALS - 1.0% - (CONTINUED) Dow Chemical (The) Co. 8,500 $ 340 du Pont (E.I.) de Nemours & Co. 2,300 112 PPG Industries, Inc. 2,200 141 ---------- 1,077 ---------- COMMERCIAL SERVICES - 0.2% Convergys Corp. * 9,800 233 ---------- COMPUTERS - 4.0% Apple Computer, Inc. * 900 76 Hewlett-Packard Co. 32,800 1,351 IBM Corp. 18,200 1,768 Lexmark International, Inc., Class A * 7,400 542 NCR Corp. * 2,600 111 Sun Microsystems, Inc. * 111,600 605 ---------- 4,453 ---------- COSMETICS/PERSONAL CARE - 1.5% Colgate-Palmolive Co. 600 39 Estee Lauder Cos. (The), Inc., Class A 10,200 417 Procter & Gamble Co. 18,300 1,176 ---------- 1,632 ---------- DIVERSIFIED FINANCIAL SERVICES - 7.9% American Express Co. 1,300 79 Bear Stearns Cos. (The), Inc. 1,700 277 Capital One Financial Corp. 1,963 151 CIT Group, Inc. 5,600 312 Citigroup, Inc. 36,000 2,005 Franklin Resources, Inc. 5,500 606 Freddie Mac 800 54 Goldman Sachs Group, Inc. 5,700 1,136 JPMorgan Chase & Co. 36,600 1,768 Merrill Lynch & Co., Inc. 6,300 587 Morgan Stanley 14,300 1,164 SLM Corp. 13,400 654 ---------- 8,793 ---------- ELECTRIC - 3.0% AES (The), Corp. * 11,300 249 Allegheny Energy, Inc. * 8,900 409 Exelon Corp. 2,900 179 FirstEnergy Corp. 10,400 627 PG&E Corp. 12,900 611 Public Service Enterprise Group, Inc. 7,800 518
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.5% - CONTINUED ELECTRIC - 3.0% - (CONTINUED) TXU Corp. 13,800 $ 748 ---------- 3,341 ---------- ELECTRICAL COMPONENTS & EQUIPMENT - 0.5% Molex, Inc. 18,000 569 ---------- ENVIRONMENTAL CONTROL - 0.6% Waste Management, Inc. 19,101 702 ---------- FOOD - 1.4% General Mills, Inc. 12,200 703 Kroger Co. 29,500 681 McCormick & Co., Inc. 4,700 181 ---------- 1,565 ---------- FOREST PRODUCTS & PAPER - 0.7% International Paper Co. 12,500 426 Temple-Inland, Inc. 8,300 382 ---------- 808 ---------- HEALTHCARE - PRODUCTS - 2.7% Baxter International, Inc. 1,500 70 Becton, Dickinson & Co. 2,940 206 Boston Scientific Corp. * 26,200 450 Johnson & Johnson 32,200 2,126 Medtronic, Inc. 1,782 95 Zimmer Holdings, Inc. * 1,100 86 ---------- 3,033 ---------- HEALTHCARE - SERVICES - 1.7% Aetna, Inc. 4,700 203 Humana, Inc. * 5,000 277 Laboratory Corp. of America Holdings * 300 22 Quest Diagnostics, Inc. 11,100 588 UnitedHealth Group, Inc. 14,000 752 ---------- 1,842 ---------- HOUSEHOLD PRODUCTS/WARES - 0.5% Kimberly-Clark Corp. 8,600 584 ---------- INSURANCE - 5.6% Aflac, Inc. 11,400 524 Allstate (The) Corp. 10,700 697 American International Group, Inc. 16,700 1,197 Chubb Corp. 13,565 718 CIGNA Corp. 500 66 Cincinnati Financial Corp. 7,200 326 Genworth Financial, Inc., Class A 1,400 48 Hartford Financial Services Group, Inc. 3,600 336
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.5% - CONTINUED INSURANCE - 5.6% - (CONTINUED) Loews Corp. 100 $ 4 Metlife, Inc. 15,400 909 MGIC Investment Corp. 5,600 350 Principal Financial Group, Inc. 6,500 381 Progressive (The) Corp. 3,800 92 Prudential Financial, Inc. 4,000 343 St. Paul Travelers Cos. (The), Inc. 2,900 156 ---------- 6,147 ---------- INTERNET - 0.8% Google, Inc., Class A * 1,600 737 VeriSign, Inc. * 6,100 147 ---------- 884 ---------- IRON/STEEL - 1.1% Nucor Corp. 12,300 672 United States Steel Corp. 7,300 534 ---------- 1,206 ---------- LODGING - 0.2% Starwood Hotels & Resorts Worldwide, Inc. 2,500 156 Wyndham Worldwide Corp. * 1,220 39 ---------- 195 ---------- MACHINERY - CONSTRUCTION & MINING - 0.7% Caterpillar, Inc. 12,800 785 ---------- MACHINERY - DIVERSIFIED - 0.3% Rockwell Automation, Inc. 6,000 367 ---------- MEDIA - 3.5% CBS Corp., Class B 23,600 736 Comcast Corp., Class A * 30,100 1,274 DIRECTV Group (The), Inc. * 5,600 140 Disney (Walt) Co. 32,900 1,128 Gannett Co., Inc. 3,100 187 McGraw-Hill Cos. (The), Inc. 1,200 82 News Corp., Class A 1,000 21 Time Warner, Inc. 9,100 198 Tribune Co. 500 15 Viacom, Inc., Class B * 1,000 41 ---------- 3,822 ---------- MINING - 0.2% Phelps Dodge Corp. 1,400 168 ---------- MISCELLANEOUS MANUFACTURING - 4.5% 3M Co. 13,049 1,017 General Electric Co. 72,300 2,690
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS ENHANCED LARGE CAP FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.5% - CONTINUED MISCELLANEOUS MANUFACTURING - 4.5% - (CONTINUED) Ingersoll-Rand Co. Ltd., Class A 8,900 $ 348 Leggett & Platt, Inc. 11,300 270 Parker Hannifin Corp. 8,000 615 Textron, Inc. 700 66 Tyco International Ltd. 300 9 ---------- 5,015 ---------- OIL & GAS - 8.0% Anadarko Petroleum Corp. 16,100 701 Chesapeake Energy Corp. 10,300 299 Chevron Corp. 11,100 816 ConocoPhillips 18,449 1,328 EOG Resources, Inc. 6,100 381 Exxon Mobil Corp. 49,700 3,809 Nabors Industries Ltd. * 7,300 217 Sunoco, Inc. 8,100 505 Valero Energy Corp. 15,500 793 ---------- 8,849 ---------- OIL & GAS SERVICES - 1.0% BJ Services Co. 18,100 531 Schlumberger Ltd. 7,800 493 Weatherford International Ltd. * 1,400 58 ---------- 1,082 ---------- PHARMACEUTICALS - 5.9% Abbott Laboratories 1,875 91 AmerisourceBergen Corp. 13,500 607 Barr Pharmaceuticals, Inc. * 8,100 406 Cardinal Health, Inc. 7,500 483 Forest Laboratories, Inc. * 5,000 253 Hospira, Inc. * 8,100 272 King Pharmaceuticals, Inc. * 35,400 564 Merck & Co., Inc. 14,200 619 Mylan Laboratories, Inc. 28,700 573 Pfizer, Inc. 81,200 2,103 Schering-Plough Corp. 21,400 506 Wyeth 891 45 ---------- 6,522 ---------- PIPELINES - 0.0% Kinder Morgan, Inc. 410 43 ---------- REAL ESTATE - 0.0% Realogy Corp. * 1,525 46 ---------- REAL ESTATE INVESTMENT TRUSTS - 0.6% Archstone-Smith Trust 2,000 117
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.5% - CONTINUED REAL ESTATE INVESTMENT TRUSTS - 0.6% - (CONTINUED) Boston Properties, Inc. 100 $ 11 ProLogis 500 31 Public Storage, Inc. 3,500 341 Simon Property Group, Inc. 1,800 182 ---------- 682 ---------- RETAIL - 6.1% Circuit City Stores, Inc. 27,800 528 CVS Corp. 5,300 164 Darden Restaurants, Inc. 14,400 578 Dillard's, Inc., Class A 13,300 465 Family Dollar Stores, Inc. 200 6 Home Depot (The), Inc. 6,400 257 Kohl's Corp. * 10,600 725 Lowe's Cos., Inc. 8,200 255 Office Depot, Inc. * 16,200 618 Penney (J.C.) Co., Inc. 5,600 433 Starbucks Corp. * 13,400 475 Target Corp. 2,600 148 TJX Cos., Inc. 20,600 588 Wal-Mart Stores, Inc. 32,300 1,492 ---------- 6,732 ---------- SAVINGS & LOANS - 0.6% Washington Mutual, Inc. 14,200 646 ---------- SEMICONDUCTORS - 2.7% Advanced Micro Devices, Inc. * 24,200 493 Intel Corp. 69,400 1,405 LSI Logic Corp. * 9,600 86 Micron Technology, Inc. * 3,800 53 National Semiconductor Corp. 17,600 400 Novellus Systems, Inc. * 7,200 248 Texas Instruments, Inc. 11,800 340 ---------- 3,025 ---------- SOFTWARE - 4.0% Automatic Data Processing, Inc. 14,100 694 Citrix Systems, Inc. * 10,000 271 Intuit, Inc. * 11,100 339 Microsoft Corp. 76,300 2,278 Oracle Corp. * 49,100 842 ---------- 4,424 ---------- TELECOMMUNICATIONS - 6.2% Alltel Corp. 900 54 AT&T, Inc. 32,900 1,176
EQUITY FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.5% - CONTINUED TELECOMMUNICATIONS - 6.2% - (CONTINUED) BellSouth Corp. 4,700 $ 221 CenturyTel, Inc. 4,000 175 Ciena Corp. * 450 13 Cisco Systems, Inc. * 51,600 1,410 JDS Uniphase Corp. * 25,200 420 Motorola, Inc. 400 8 QUALCOMM, Inc. 23,200 877 Qwest Communications International, Inc. * 73,300 614 Sprint Nextel Corp. 3,200 61 Tellabs, Inc. * 36,000 369 Verizon Communications, Inc. 38,947 1,450 ---------- 6,848 ---------- TRANSPORTATION - 2.5% FedEx Corp. 7,600 826 Norfolk Southern Corp. 12,100 608 Union Pacific Corp. 6,500 598 United Parcel Service, Inc., Class B 9,000 675 ---------- 2,707 ---------- TOTAL COMMON STOCKS (COST $100,374) 106,874 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS -4.5% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 4,541 4,541 U.S. Treasury Bill, (1) 4.94%, 2/22/07 415 412 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $4,953) 4,953 ---------- TOTAL INVESTMENTS - 101.0% (COST $105,327) 111,827 Liabilities less Other Assets - (1.0)% (1,136) ---------- NET ASSETS - 100.0% $ 110,691
* Non-Income Producing Security (1) Security pledged as collateral to cover margin requirements for open futures contracts. At December 31, 2006, the Enhanced Large Cap Fund had open futures contracts as follows:
NOTIONAL UNREALIZED NUMBER OF AMOUNT CONTRACT CONTRACT GAIN (LOSS) TYPE CONTRACTS (000S) POSITION EXP. (000S) ---- --------- -------- -------- -------- ----------- S&P 500 E-Mini 52 $3,714 Long 3/07 $13
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 105,327 ---------- Gross tax appreciation of investments $ 7,569 Gross tax depreciation of investments (1,069) ---------- Net tax appreciation of investments $ 6,500 ==========
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS GROWTH EQUITY FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% AEROSPACE/DEFENSE - 7.1% Boeing (The) Co. 72,100 $ 6,406 Lockheed Martin Corp. 126,175 11,617 Northrop Grumman Corp. 185,675 12,570 Raytheon Co. 222,975 11,773 ---------- 42,366 ---------- AUTO PARTS & EQUIPMENT - 0.8% Autoliv, Inc. 81,075 4,889 ---------- BANKS - 3.9% Bank of America Corp. 280,525 14,977 Wachovia Corp. 146,775 8,359 ---------- 23,336 ---------- BEVERAGES - 1.0% Diageo PLC ADR 77,300 6,131 ---------- CHEMICALS - 1.3% Bayer A.G. ADR 146,800 7,833 ---------- COMMERCIAL SERVICES - 2.6% Accenture Ltd., Class A 253,775 9,372 McKesson Corp. 118,450 6,005 ---------- 15,377 ---------- COMPUTERS - 5.3% Hewlett-Packard Co. 386,525 15,921 IBM Corp. 65,800 6,392 Lexmark International, Inc., Class A * 128,525 9,408 ---------- 31,721 ---------- COSMETICS/PERSONAL CARE - 2.0% Avon Products, Inc. 181,000 5,980 Colgate-Palmolive Co. 92,600 6,041 ---------- 12,021 ---------- DIVERSIFIED FINANCIAL SERVICES - 10.8% Citigroup, Inc. 321,625 17,914 Countrywide Financial Corp. 151,700 6,440 Goldman Sachs Group, Inc. 67,700 13,496 JPMorgan Chase & Co. 121,750 5,881 Lehman Brothers Holdings, Inc. 180,700 14,116 Morgan Stanley 77,400 6,303 ---------- 64,150 ---------- ELECTRIC - 1.0% Alliant Energy Corp. 76,125 2,875 Reliant Energy, Inc. * 207,350 2,947 ---------- 5,822 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED ENVIRONMENTAL CONTROL - 1.0% Waste Management, Inc. 153,775 $ 5,654 ---------- FOOD - 7.5% Campbell Soup Co. 218,450 8,496 ConAgra Foods, Inc. 224,975 6,074 General Mills, Inc. 198,175 11,415 Heinz (H.J.) Co. 131,975 5,940 Kraft Foods, Inc., Class A 212,100 7,572 Kroger Co. 229,725 5,300 ---------- 44,797 ---------- GAS - 0.5% NiSource, Inc. 130,950 3,156 ---------- HEALTHCARE - SERVICES - 0.8% Humana, Inc. * 85,150 4,710 ---------- HOUSEHOLD PRODUCTS/WARES - 1.0% Clorox Co. 94,750 6,078 ---------- INSURANCE - 7.9% Allstate (The) Corp. 90,175 5,871 AMBAC Financial Group, Inc. 115,250 10,265 Genworth Financial, Inc., Class A 278,525 9,528 Hartford Financial Services Group, Inc. 96,200 8,977 Prudential Financial, Inc. 70,225 6,030 St. Paul Travelers Cos. (The), Inc. 121,775 6,538 ---------- 47,209 ---------- IRON/STEEL - 1.4% Nucor Corp. 151,950 8,306 ---------- MEDIA - 3.4% Comcast Corp., Class A * 155,775 6,594 Disney (Walt) Co. 387,025 13,263 ---------- 19,857 ---------- MINING - 1.2% Freeport-McMoRan Copper & Gold, Inc., Class B 122,825 6,845 ---------- MISCELLANEOUS MANUFACTURING - 2.6% Eaton Corp. 113,625 8,538 General Electric Co. 183,425 6,825 ---------- 15,363 ---------- OIL & GAS - 9.2% Devon Energy Corp. 102,475 6,874 Exxon Mobil Corp. 382,575 29,317 Marathon Oil Corp. 143,825 13,304
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT EQUITY FUNDS SCHEDULE OF INVESTMENTS DECEMBER 31, 2006 (UNAUDITED) GROWTH EQUITY FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED OIL & GAS - 9.2% - (CONTINUED) Occidental Petroleum Corp. 102,775 $ 5,018 ---------- 54,513 ---------- OIL & GAS SERVICES - 0.7% Tidewater, Inc. 81,600 3,946 ---------- PHARMACEUTICALS - 8.7% AstraZeneca PLC ADR 68,500 3,668 Cardinal Health, Inc. 82,375 5,307 Caremark Rx, Inc. 102,725 5,867 GlaxoSmithKline PLC ADR 115,025 6,069 Merck & Co., Inc. 272,275 11,871 Pfizer, Inc. 491,975 12,742 Schering-Plough Corp. 258,675 6,115 ---------- 51,639 ---------- RETAIL - 6.7% Circuit City Stores, Inc. 170,425 3,235 Kohl's Corp. * 108,875 7,450 McDonald's Corp. 227,375 10,079 Nordstrom, Inc. 165,200 8,151 Office Depot, Inc. * 140,950 5,380 TJX Cos., Inc. 199,675 5,695 ---------- 39,990 ---------- SOFTWARE - 2.1% Microsoft Corp. 417,400 12,464 ---------- TELECOMMUNICATIONS - 8.4% Amdocs Ltd. * 183,700 7,119 Avaya, Inc. * 446,875 6,247 Cisco Systems, Inc. * 659,725 18,030 Embarq Corp. 86,700 4,557 Nokia OYJ ADR 469,375 9,538 Verizon Communications, Inc. 116,725 4,347 ---------- 49,838 ---------- TOTAL COMMON STOCKS (COST $509,382) 588,011 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 1.1% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 6,621 $ 6,621 ---------- TOTAL SHORT-TERM INVESTMENT (COST $6,621) 6,621 ---------- TOTAL INVESTMENTS - 100.0% (COST $516,003) 594,632 Liabilities less Other Assets - 0.0% (353) ---------- NET ASSETS - 100.0% $ 594,279
* Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 516,003 ---------- Gross tax appreciation of investments $ 91,646 Gross tax depreciation of investments (13,017) ---------- Net tax appreciation of investments $ 78,629 ==========
EQUITY FUNDS 2 NORTHERN FUNDS QUARTERLY REPORT EQUITY FUNDS SCHEDULE OF INVESTMENTS INCOME EQUITY FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 48.6% AGRICULTURE - 1.5% UST, Inc. 105,000 $ 6,111 ---------- BANKS - 1.4% Bank of America Corp. 105,000 5,606 ---------- COMMERCIAL SERVICES - 4.7% Accenture Ltd., Class A 190,000 7,017 Coinmach Service Corp. 403,000 7,415 Macquarie Infrastructure Company Trust 120,000 4,257 ---------- 18,689 ---------- COMPUTERS - 1.8% Hewlett-Packard Co. 175,000 7,208 ---------- COSMETICS/PERSONAL CARE - 0.8% Colgate-Palmolive Co. 50,000 3,262 ---------- DIVERSIFIED FINANCIAL SERVICES - 1.8% Bear Stearns Cos. (The), Inc. 45,000 7,325 ---------- FOOD - 4.6% B&G Fold Holdings Corp. 370,000 7,407 Kraft Foods, Inc., Class A 130,000 4,641 SUPERVALU, Inc. 180,000 6,435 ---------- 18,483 ---------- HEALTHCARE - PRODUCTS - 0.9% Johnson & Johnson 55,000 3,631 ---------- HOUSEWARES - 0.8% Newell Rubbermaid, Inc. 115,000 3,329 ---------- INSURANCE - 4.6% Chubb Corp. 38,511 2,038 Old Republic International Corp. 250,000 5,820 Prudential Financial, Inc. 73,500 6,311 St. Paul Travelers Cos. (The), Inc. 80,000 4,295 ---------- 18,464 ---------- INVESTMENT COMPANIES - 0.4% Allied Capital Corp. 50,000 1,634 ---------- MACHINERY - DIVERSIFIED - 1.5% Cummins, Inc. 50,000 5,909 ---------- MEDIA - 1.0% Gannett Co., Inc. 60,000 3,628 Idearc, Inc. * 6,750 193 ---------- 3,821 ---------- MINING - 1.1% Freeport-McMoRan Copper & Gold, Inc., Class B 80,979 4,513 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 48.6% - CONTINUED OIL & GAS - 5.4% ConocoPhillips 103,284 $ 7,431 Devon Energy Corp. 50,000 3,354 EnCana Corp. 60,000 2,757 Marathon Oil Corp. 50,000 4,625 Occidental Petroleum Corp. 74,000 3,614 ---------- 21,781 ---------- PHARMACEUTICALS - 5.5% GlaxoSmithKline PLC ADR 110,000 5,804 King Pharmaceuticals, Inc. * 250,000 3,980 Merck & Co., Inc. 150,000 6,540 Pfizer, Inc. 215,000 5,568 ---------- 21,892 ---------- REAL ESTATE INVESTMENT TRUSTS - 2.0% HRPT Properties Trust 450,000 5,558 iStar Financial, Inc. 50,000 2,391 ---------- 7,949 ---------- RETAIL - 0.6% Home Depot (The), Inc. 60,000 2,410 ---------- SEMICONDUCTORS - 0.9% Taiwan Semiconductor Manufacturing Co. Ltd. ADR 347,497 3,798 ---------- TELECOMMUNICATIONS - 7.3% China Mobile Ltd. ADR 180,000 7,780 Nokia OYJ ADR 285,000 5,791 Verizon Communications, Inc. 135,000 5,027 Vodafone Group PLC ADR 196,875 5,469 Windstream Corp. 350,000 4,977 ---------- 29,044 ---------- TOTAL COMMON STOCKS (COST $150,406) 194,859 ---------- CONVERTIBLE PREFERRED STOCKS - 14.9% AUTO MANUFACTURERS - 0.6% Ford Motor Co. Capital Trust II, 6.50% 70,000 2,394 ---------- CHEMICALS - 3.7% Celanese Corp., 4.25% 225,000 8,100 Huntsman Corp., 5.00% 160,000 6,662 ---------- 14,762 ---------- COMMERCIAL SERVICES - 0.8% United Rentals Trust I, 6.50% 65,857 3,194 ----------
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- CONVERTIBLE PREFERRED STOCKS - 14.9% - CONTINUED DIVERSIFIED FINANCIAL SERVICES - 2.0% Citigroup Funding, Inc., 5.02% 165,000 $ 5,231 Lehman Brothers Holdings, Inc., 6.25% 100,000 2,752 ---------- 7,983 ---------- INSURANCE - 3.1% Fortis Insurance N.V., 7.75% (1) (2) 3,250 4,628 Metlife, Inc., 6.38% 100,000 3,058 Travelers Property Casualty Corp., 4.50% 180,000 4,705 ---------- 12,391 ---------- RETAIL - 2.8% Retail Ventures, Inc., 6.63% 100,000 6,712 Rite Aid Corp., 5.50% 150,000 4,290 ---------- 11,002 ---------- SAVINGS & LOANS - 1.9% Sovereign Capital Trust IV, 4.38% 100,000 4,950 Washington Mutual, Inc., 5.38% 50,000 2,820 ---------- 7,770 ---------- TOTAL CONVERTIBLE PREFERRED STOCKS (COST $53,632) 59,496 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- CONVERTIBLE BONDS - 27.1% AEROSPACE/DEFENSE - 2.1% Lockheed Martin Corp., 5.12%, 8/15/33 $ 6,276 8,331 ---------- APPAREL - 1.5% Kellwood, Co., 3.50%, 6/15/34 6,400 6,024 ---------- AUTO PARTS & EQUIPMENT - 2.7% Goodyear Tire & Rubber (The) Co., 4.00%, 6/15/34 6,000 10,860 ---------- COMMERCIAL SERVICES - 0.7% CBIZ, Inc., 3.13%, 6/1/26 3,000 2,835 ---------- COMPUTERS - 1.9% Cadence Design Systems, Inc., (1) (2) 1.38%, 12/15/11 250 253 Electronic Data Systems Corp., 3.88%, 7/15/23 7,000 7,437 ---------- 7,690 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- CONVERTIBLE BONDS - 27.1% - CONTINUED ENVIRONMENTAL CONTROL - 1.0% Allied Waste Industries, 4.25%, 4/15/34 $ 4,000 $ 3,825 ---------- HEALTHCARE - PRODUCTS - 1.3% Conmed Corp., 2.50%, 11/15/24 5,500 4,971 ---------- HOUSEHOLD PRODUCTS/WARES - 1.8% Church & Dwight Co, Inc., 5.25%, 8/15/33 5,000 7,256 ---------- INSURANCE - 1.5% American Equity Investment Life Holding Co., 5.25%, 12/6/24 5,050 6,060 ---------- MACHINERY - DIVERSIFIED - 1.9% AGCO Corp., 1.75%, 12/31/33 5,000 7,663 ---------- MEDIA - 1.3% Liberty Media Corp., 0.75%, 3/30/23 4,000 5,090 ---------- Pharmaceuticals - 1.6% Watson Pharmaceuticals, Inc., 1.75%, 3/15/23 7,000 6,396 ---------- RETAIL - 1.8% Sonic Automotive, Inc., 4.25%, 11/30/15 5,500 7,308 ---------- SEMICONDUCTORS - 1.8% Intel Corp., 2.95%, 12/15/35 8,000 7,290 ---------- SOFTWARE - 3.5% Fair Isaac Corp., 1.50%, 8/15/23 7,000 7,402 Sybase, Inc., 1.75%, 2/22/25 6,000 6,728 ---------- 14,130 ---------- TELECOMMUNICATIONS - 0.1% Arris Group, Inc., 2.00%, 11/15/26 500 534 ---------- TRANSPORTATION - 0.6% YRC Worldwide, Inc., 5.00%, 8/8/23 2,000 2,508 ---------- TOTAL CONVERTIBLE BONDS (COST $97,005) 108,771 ----------
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS DECEMBER 31, 2006 (UNAUDITED) INCOME EQUITY FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 8.9% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 35,731 $ 35,731 ---------- TOTAL SHORT-TERM INVESTMENT (COST $35,731) 35,731 ---------- TOTAL INVESTMENTS - 99.5% (COST $336,774) 398,857 Other Assets less Liabilities - 0.5% 1,835 ---------- NET ASSETS - 100.0% $ 400,692
(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of Northern Funds. (2) Restricted security that has been deemed illiquid. At December 31, 2006, the value of these restricted illiquid securities amounted to approximately $4,881,000 or 1.2% of net assets. Additional information on each restricted illiquid security is as follows:
ACQUISITION ACQUISITION COST SECURITY DATE (000S) -------- --------------- ----------- Cadence Design Systems, Inc. 12/14/06 $ 250 Fortis Insurance N.V., 7.75% 1/20/05-2/15/06 3,523
* Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $336,774 -------- Gross tax appreciation of investments $ 66,709 Gross tax depreciation of investments (4,626) -------- Net tax appreciation of investments $ 62,083 ========
EQUITY FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT EQUITY FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL GROWTH EQUITY FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.8% AUSTRALIA - 4.0% Cochlear Ltd. 370,068 $ 16,941 Telstra Corp. Ltd. 5,692,222 12,086 Woolworths Ltd. 1,284,088 24,223 ---------- 53,250 ---------- CHINA - 1.5% Bank of China Ltd. 35,289,000 19,375 ---------- FINLAND - 2.0% Nokia OYJ 1,267,534 25,906 ---------- FRANCE - 7.7% Accor S.A. 294,578 22,830 Alstom RGPT * 194,523 26,377 AXA S.A. 646,603 26,183 Societe Generale 159,203 27,031 ---------- 102,421 ---------- GERMANY - 10.7% Deutsche Bank A.G. (Registered) 209,223 27,993 E.ON A.G. 200,823 27,265 Fresenius Medical Care A.G. & Co. KGaA 71,254 9,499 Hochtief A.G. 147,404 10,743 Linde A.G. 194,067 20,052 SAP A.G. 447,198 23,771 ThyssenKrupp A.G. 465,496 21,935 ---------- 141,258 ---------- GREECE - 1.5% National Bank of Greece S.A. 417,744 19,249 ---------- ITALY - 6.2% Banche Popolari Unite Scpa 758,211 20,842 ENI S.p.A. 702,238 23,624 Finmeccanica S.p.A. 384,840 10,431 UniCredito Italiano S.p.A. (Milan Exchange) 3,151,110 27,625 ---------- 82,522 ---------- JAPAN - 12.1% East Japan Railway Co. 2,597 17,363 Fanuc Ltd. 215,000 21,191 Nippon Telegraph & Telephone Corp. 2,941 14,494 ORIX Corp. 93,220 27,008 Shiseido Co. Ltd. 984,000 21,350 Sony Corp. 455,500 19,536 Toyota Motor Corp. 593,500 39,730 ---------- 160,672 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.8% - CONTINUED NETHERLANDS - 3.9% Qiagen N.V. * 1,020,490 $ 15,656 Royal Dutch Shell PLC, Class B 1,042,046 36,523 ---------- 52,179 ---------- SINGAPORE - 1.1% CapitaLand Ltd. 3,518,000 14,224 ---------- SPAIN - 2.3% Banco Santander Central Hispano S.A. 1,640,125 30,619 ---------- SWEDEN - 4.3% Assa Abloy AB, Class B 866,482 18,864 Autoliv, Inc. SDR 307,190 18,559 Telefonaktiebolaget LM Ericsson, Class B 4,764,000 19,246 ---------- 56,669 ---------- SWITZERLAND - 16.4% ABB Ltd. (Registered) 1,111,768 19,945 Julius Baer Holding A.G. (Registered) 215,808 23,779 Logitech International S.A. (Registered) * 348,082 10,046 Nestle S.A. (Registered) 84,089 29,895 Novartis A.G. (Registered) 445,771 25,711 Phonak Holding A.G. (Registered) 147,149 11,719 Roche Holding A.G. (Genusschein) 113,435 20,350 Schindler Holding A.G. 285,557 17,971 Swiss Life Holding 50,745 12,718 Syngenta A.G. (Registered) * 111,592 20,771 Xstrata PLC 487,896 24,360 ---------- 217,265 ---------- UNITED KINGDOM - 23.1% Barclays PLC 1,844,379 26,363 BP PLC 1,220,453 13,561 BT Group PLC 3,406,014 20,107 Carnival PLC 418,262 21,195 Centrica PLC 3,702,573 25,700 Diageo PLC 1,282,531 25,175 GlaxoSmithKline PLC 1,105,719 29,098 ITV PLC 9,375,452 19,551 Lloyds TSB Group PLC 2,370,220 26,523 Lonmin PLC 188,910 11,134 Marks & Spencer Group PLC 1,571,791 22,067
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 96.8% - CONTINUED UNITED KINGDOM - 23.1% - (CONTINUED) Prudentail PLC 1,825,321 $ 25,000 Vodafone Group PLC 6,965,786 19,300 WPP Group PLC 1,532,692 20,722 ---------- 305,496 ---------- TOTAL COMMON STOCKS (COST $1,014,377) 1,281,105 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 0.6% ING, Belgium, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 8,294 8,294 ---------- TOTAL SHORT-TERM INVESTMENT (COST $8,294) 8,294 ---------- TOTAL INVESTMENTS - 97.4% (COST $1,022,671) 1,289,399 Other Assets less Liabilities - 2.6% 34,623 ---------- NET ASSETS - 100.0% $1,324,022
* Non-Income Producing Security At December 31, 2006, the industry sectors for the International Growth Equity Fund were:
% OF LONG-TERM INDUSTRY SECTOR INVESTMENTS --------------- -------------- Consumer Discretionary 14.3% Consumer Staples 7.9 Energy 5.8 Financials 27.6 Health Care 10.1 Industrials 11.1 Information Technology 6.2 Materials 7.7 Telecommunication Services 5.2 Utilities 4.1 ----- Total 100.0%
At December 31, 2006, the International Growth Equity Fund's investments were denominated in the following currencies:
% OF LONG-TERM CONCENTRATION BY CURRENCY INVESTMENTS ------------------------- -------------- Euro 32.6% British Pound 28.6 Swiss Franc 15.1 Japanese Yen 12.5 All other currencies less than 5% 11.2 ----- Total 100.0%
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $1,022,671 ---------- Gross tax appreciation of investments $ 269,199 Gross tax depreciation of investments (2,471) ---------- Net tax appreciation of investments $ 266,728 ==========
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS LARGE CAP VALUE FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% BANKS - 4.4% Mellon Financial Corp. 636,000 $ 26,807 Wachovia Corp. 449,000 25,571 ---------- 52,378 ---------- BEVERAGES - 4.7% Anheuser-Busch Cos., Inc. 497,000 24,452 Coca-Cola (The) Co. 655,000 31,604 ---------- 56,056 ---------- CHEMICALS - 4.1% Dow Chemical (The) Co. 610,000 24,363 du Pont (E.I.) de Nemours & Co. 486,000 23,673 ---------- 48,036 ---------- COSMETICS/PERSONAL CARE - 2.3% Avon Products, Inc. 806,000 26,630 ---------- DIVERSIFIED FINANCIAL SERVICES - 7.0% CIT Group, Inc. 483,700 26,976 Citigroup, Inc. 489,000 27,237 JPMorgan Chase & Co. 591,000 28,546 ---------- 82,759 ---------- FOOD - 7.6% General Mills, Inc. 319,000 18,374 Hershey Co. 463,000 23,058 Sara Lee Corp. 1,441,000 24,540 Wrigley (Wm.) Jr. Co. 458,000 23,688 ---------- 89,660 ---------- FOREST PRODUCTS & PAPER - 3.9% International Paper Co. 647,000 22,063 MeadWestvaco Corp. 795,000 23,897 ---------- 45,960 ---------- HEALTHCARE - PRODUCTS - 3.7% Baxter International, Inc. 398,000 18,463 Johnson & Johnson 385,000 25,418 ---------- 43,881 ---------- HOUSEWARES - 2.1% Newell Rubbermaid, Inc. 850,000 24,608 ---------- INSURANCE - 2.2% Lincoln National Corp. 398,000 26,427 ---------- LEISURE TIME - 2.0% Carnival Corp. 483,000 23,691 ---------- MEDIA - 9.8% CBS Corp., Class B 775,000 24,164 Clear Channel Communications, Inc. 692,000 24,594
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% - CONTINUED MEDIA - 9.8% - (CONTINUED) Gannett Co., Inc. 405,000 $ 24,486 New York Times Co., Class A 757,000 18,441 Tribune Co. 780,000 24,008 ---------- 115,693 ---------- MINING - 2.0% Alcoa, Inc. 797,000 23,918 ---------- MISCELLANEOUS MANUFACTURING - 5.8% 3M Co. 330,000 25,717 Eastman Kodak Co. 471,000 12,152 General Electric Co. 840,000 31,256 ---------- 69,125 ---------- OFFICE/BUSINESS EQUIPMENT - 2.2% Pitney Bowes, Inc. 568,000 26,236 ---------- OIL & GAS - 2.3% Exxon Mobil Corp. 351,000 26,897 ---------- PHARMACEUTICALS - 9.2% Abbott Laboratories 517,000 25,183 Bristol-Myers Squibb Co. 1,065,000 28,031 Pfizer, Inc. 1,219,000 31,572 Wyeth 478,000 24,340 ---------- 109,126 ---------- SAVINGS & LOANS - 1.1% New York Community Bancorp, Inc. 767,000 12,349 ---------- SEMICONDUCTORS - 6.0% Analog Devices, Inc. 565,000 18,572 Intel Corp. 1,150,000 23,287 Linear Technology Corp. 395,000 11,976 Maxim Integrated Products, Inc. 556,000 17,025 ---------- 70,860 ---------- TELECOMMUNICATIONS - 13.8% AT&T, Inc. 742,000 26,527 BellSouth Corp. 436,000 20,540 Deutsche Telekom A.G. ADR 1,606,000 29,229 Embarq Corp. 340,000 17,870 Nokia OYJ ADR 1,258,000 25,563 Verizon Communications, Inc. 835,000 31,095 Windstream Corp. 882,000 12,542 ---------- 163,366 ---------- TOYS, GAMES & HOBBIES - 1.0% Mattel, Inc. 542,000 12,282 ----------
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% - CONTINUED TRANSPORTATION - 2.1% United Parcel Service, Inc., Class B 324,000 $ 24,294 ---------- TOTAL COMMON STOCKS (COST $986,362) 1,174,232 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 1.3% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 15,852 15,852 ---------- TOTAL SHORT-TERM INVESTMENT (COST $15,853) 15,852 ---------- TOTAL INVESTMENTS - 100.6% (COST $1,002,215) 1,190,084 ---------- Liabilities less Other Assets - (0.6)% (7,001) ---------- NET ASSETS - 100.0% $1,183,083
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $1,002,215 ---------- Gross tax appreciation of investments $ 193,038 Gross tax depreciation of investments (5,169) ---------- Net tax appreciation of investments $ 187,869 ==========
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS MID CAP GROWTH FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% AEROSPACE/DEFENSE - 1.8% Rockwell Collins, Inc. 55,600 $ 3,519 ---------- APPAREL - 3.1% Coach, Inc. * 45,300 1,946 Guess?, Inc. * 32,400 2,055 Phillips-Van Heusen Corp. 39,700 1,992 ---------- 5,993 ---------- AUTO PARTS & EQUIPMENT - 1.4% Autoliv, Inc. 45,200 2,726 ---------- BANKS - 1.3% TCF Financial Corp. 92,900 2,547 ---------- COMMERCIAL SERVICES - 9.2% Alliance Data Systems Corp. * 40,200 2,511 Dun & Bradstreet Corp. * 42,800 3,543 Equifax, Inc. 60,000 2,436 ITT Educational Services, Inc. * 29,300 1,945 McKesson Corp. 48,300 2,449 Moody's Corp. 36,700 2,535 Robert Half International, Inc. 65,600 2,435 ---------- 17,854 ---------- COMPUTERS - 4.1% Factset Research Systems, Inc. 47,400 2,677 Logitech International S.A. * 74,800 2,139 Micros Systems, Inc. * 58,200 3,067 ---------- 7,883 ---------- COSMETICS/PERSONAL CARE - 1.0% Avon Products, Inc. 61,300 2,025 ---------- DIVERSIFIED FINANCIAL SERVICES - 3.8% Ameriprise Financial, Inc. 36,200 1,973 CIT Group, Inc. 60,800 3,391 Edwards (A.G.), Inc. 33,300 2,107 ---------- 7,471 ---------- ELECTRONICS - 3.2% Mettler-Toledo International, Inc. * 47,200 3,722 Thermo Fisher Scientific, Inc. * 56,900 2,577 ---------- 6,299 ---------- ENGINEERING & CONSTRUCTION - 1.8% Jacobs Engineering Group, Inc. * 41,900 3,416 ---------- ENTERTAINMENT - 1.3% International Game Technology 55,300 2,555 ---------- ENVIRONMENTAL CONTROL - 1.8% Republic Services, Inc. 84,100 3,420 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED FOOD - 3.7% Campbell Soup Co. 65,800 $ 2,559 Dean Foods Co. * 48,100 2,034 Hain Celestial Group, Inc. * 83,500 2,606 ---------- 7,199 ---------- HEALTHCARE - PRODUCTS - 3.5% Becton, Dickinson & Co. 29,600 2,077 Dentsply International, Inc. 73,900 2,206 Immucor, Inc. * 83,900 2,452 ---------- 6,735 ---------- HEALTHCARE - SERVICES - 6.7% Coventry Health Care, Inc. * 39,500 1,977 Laboratory Corp. of America Holdings * 55,700 4,092 Manor Care, Inc. 41,900 1,966 Pediatrix Medical Group, Inc. * 54,500 2,665 Psychiatric Solutions, Inc. * 64,000 2,401 ---------- 13,101 ---------- HOME FURNISHINGS - 1.5% Harman International Industries, Inc. 28,600 2,857 ---------- INSURANCE - 4.0% ACE Ltd. 52,900 3,204 AMBAC Financial Group, Inc. 23,400 2,084 Assurant, Inc. 45,800 2,531 ---------- 7,819 ---------- IRON/STEEL - 1.5% Allegheny Technologies, Inc. 32,300 2,929 ---------- LODGING - 1.6% Marriott International, Inc., Class A 64,900 3,097 ---------- MACHINERY - DIVERSIFIED - 1.2% Manitowoc Co. (The), Inc. 40,400 2,401 ---------- MEDIA - 3.5% Grupo Televisa SA ADR 108,500 2,931 Liberty Global, Inc., Class A * 130,500 3,804 ---------- 6,735 ---------- MINING - 1.6% Freeport-McMoRan Copper & Gold, Inc., Class B 56,500 3,149 ---------- MISCELLANEOUS MANUFACTURING - 4.7% ITT Corp. 65,800 3,739 SPX Corp. 40,800 2,495 Textron, Inc. 31,500 2,954 ---------- 9,188 ----------
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED NETWORKING PRODUCTS - 1.4% Foundry Networks, Inc. * 180,000 $ 2,696 ---------- OIL & GAS - 5.0% Cabot Oil & Gas Corp. 38,100 2,311 Noble Energy, Inc. 52,400 2,571 Sunoco, Inc. 38,200 2,382 Tesoro Corp. 36,300 2,388 ---------- 9,652 ---------- OIL & GAS SERVICES - 2.5% Cameron International Corp. * 39,200 2,080 SEACOR Holdings, Inc. * 27,400 2,716 ---------- 4,796 ---------- PACKAGING & CONTAINERS - 1.4% Pactiv Corp. * 75,900 2,709 ---------- PHARMACEUTICALS - 1.5% Gilead Sciences, Inc. * 43,600 2,831 ---------- RETAIL - 6.0% Family Dollar Stores, Inc. 106,500 3,124 Limited Brands 67,700 1,959 Nordstrom, Inc. 40,800 2,013 Petsmart, Inc. 83,300 2,404 TJX Cos., Inc. 72,400 2,065 ---------- 11,565 ---------- SEMICONDUCTORS - 4.7% Intersil Corp., Class A 95,500 2,284 Lam Research Corp. * 39,300 1,989 LSI Logic Corp. * 191,000 1,719 National Semiconductor Corp. 83,100 1,887 NVIDIA Corp. * 35,000 1,295 ---------- 9,174 ---------- SOFTWARE - 6.3% Activision, Inc. * 181,000 3,120 Cadence Design Systems, Inc. * 139,300 2,495 Cognos, Inc. * 47,500 2,017 Global Payments, Inc. 42,000 1,945 VeriFone Holdings, Inc. * 76,300 2,701 ---------- 12,278 ---------- TELECOMMUNICATIONS - 1.1% Polycom, Inc. * 69,100 2,136 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED TELECOMMUNICATIONS SERVICES - 1.4% Amdocs Ltd. * 69,600 $ 2,697 ---------- TOTAL COMMON STOCKS (COST $179,183) 191,452 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 1.1% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 2,139 2,139 ---------- TOTAL SHORT-TERM INVESTMENT (COST $2,139) 2,139 ---------- TOTAL INVESTMENTS - 99.7% (COST $181,322) 193,591 ---------- Other Assets less Liabilities - 0.3% 544 ---------- NET ASSETS - 100.0% $ 194,135
* Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 181,322 ---------- Gross tax appreciation of investments $ 14,682 Gross tax depreciation of investments (2,413) ---------- Net tax appreciation of investments $ 12,269 ==========
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS SELECT EQUITY FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.2% ADVERTISING - 2.6% Omnicom Group, Inc. 48,000 $ 5,018 ---------- AEROSPACE/DEFENSE - 9.7% Boeing (The) Co. 62,900 5,588 Lockheed Martin Corp. 60,100 5,533 Raytheon Co. 78,200 4,129 Rockwell Collins, Inc. 30,000 1,899 United Technologies Corp. 27,500 1,719 ---------- 18,868 ---------- BEVERAGES - 3.9% Anheuser-Busch Cos., Inc. 79,000 3,887 Diageo PLC ADR 47,500 3,767 ---------- 7,654 ---------- CHEMICALS - 1.0% Syngenta A.G. ADR 51,800 1,924 ---------- COMMERCIAL SERVICES - 2.9% Accenture Ltd., Class A 73,000 2,696 McKesson Corp. 59,000 2,991 ---------- 5,687 ---------- COMPUTERS - 9.2% Dell, Inc. * 134,600 3,377 Hewlett-Packard Co. 140,300 5,779 IBM Corp. 66,200 6,431 Lexmark International, Inc., Class A * 32,000 2,343 ---------- 17,930 ---------- COSMETICS/PERSONAL CARE - 2.2% Colgate-Palmolive Co. 65,000 4,241 ---------- DIVERSIFIED FINANCIAL SERVICES - 3.7% Bear Stearns Cos. (The), Inc. 12,100 1,970 Lehman Brothers Holdings, Inc. 33,700 2,633 Morgan Stanley 31,000 2,524 ---------- 7,127 ---------- ELECTRICAL COMPONENTS & EQUIPMENT - 1.4% Energizer Holdings, Inc. * 38,800 2,754 ---------- ENGINEERING & CONSTRUCTION - 4.0% ABB Ltd. ADR 290,000 5,214 McDermott International, Inc. * 48,300 2,457 ---------- 7,671 ---------- ENVIRONMENTAL CONTROL - 1.3% Waste Management, Inc. 70,200 2,581 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.2% - CONTINUED FOOD - 4.5% Campbell Soup Co. 74,700 $ 2,905 General Mills, Inc. 69,000 3,975 Groupe Danone ADR 59,300 1,933 ---------- 8,813 ---------- HEALTHCARE - PRODUCTS - 3.7% Becton, Dickinson & Co. 26,400 1,852 Johnson & Johnson 80,000 5,282 ---------- 7,134 ---------- HEALTHCARE - SERVICES - 1.5% Laboratory Corp. of America Holdings * 38,800 2,851 ---------- INSURANCE - 3.7% AMBAC Financial Group, Inc. 21,000 1,870 Prudential Financial, Inc. 25,000 2,147 St. Paul Travelers Cos. (The), Inc. 58,000 3,114 ---------- 7,131 ---------- IRON/STEEL - 0.8% Nucor Corp. 27,900 1,525 ---------- LEISURE TIME - 1.0% Harley-Davidson, Inc. 26,400 1,860 ---------- MACHINERY - DIVERSIFIED - 0.9% Cummins, Inc. 15,700 1,855 ---------- MEDIA - 3.2% DIRECTV Group (The), Inc. * 94,900 2,367 McGraw-Hill Cos. (The), Inc. 55,600 3,782 ---------- 6,149 ---------- MINING - 0.8% Southern Copper Corp. 30,600 1,649 ---------- OFFICE/BUSINESS EQUIPMENT - 1.4% Xerox Corp. * 157,200 2,664 ---------- OIL & GAS - 5.4% Devon Energy Corp. 21,200 1,422 Exxon Mobil Corp. 39,900 3,058 Marathon Oil Corp. 45,000 4,162 Noble Energy, Inc. 35,500 1,742 ---------- 10,384 ---------- PACKAGING & CONTAINERS - 1.4% Pactiv Corp. * 73,900 2,637 ---------- PHARMACEUTICALS - 7.8% AstraZeneca PLC ADR 70,600 3,781 Bristol-Myers Squibb Co. 99,800 2,627 Forest Laboratories, Inc. * 60,000 3,036
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.2% - CONTINUED PHARMACEUTICALS - 7.8% - (CONTINUED) Merck & Co., Inc. 75,800 $3,305 Wyeth 45,100 2,296 ---------- 15,045 ---------- RETAIL - 5.4% American Eagle Outfitters, Inc. 94,500 2,949 Kohl's Corp. * 48,000 3,285 Sherwin - Williams (The) Co. 24,000 1,526 TJX Cos., Inc. 95,200 2,715 ---------- 10,475 ---------- SEMICONDUCTORS - 1.9% Taiwan Semiconductor Manufacturing Co. Ltd. ADR 187,400 2,048 Texas Instruments, Inc. 60,400 1,740 ---------- 3,788 ---------- SOFTWARE - 6.8% Microsoft Corp. 302,900 9,045 Oracle Corp. * 238,400 4,086 ---------- 13,131 ---------- TELECOMMUNICATIONS - 7.1% Amdocs Ltd. * 40,700 1,577 America Movil S.A. de C.V. ADR, Series L 58,200 2,632 Cisco Systems, Inc. * 291,900 7,978 Motorola, Inc. 75,900 1,560 ---------- 13,747 ---------- TOTAL COMMON STOCKS (COST $172,092) 192,293 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 0.5% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 913 913 ---------- TOTAL SHORT-TERM INVESTMENT (COST $913) 913 ---------- TOTAL INVESTMENTS - 99.7% (COST $173,005) 193,206 Other Assets less Liabilities - 0.3% 565 ---------- NET ASSETS - 100.0% $ 193,771
* Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 173,005 ---------- Gross tax appreciation of investments $ 21,392 Gross tax depreciation of investments (1,191) ---------- Net tax appreciation of investments $ 20,201 ==========
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS SMALL CAP GROWTH FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% AEROSPACE/DEFENSE - 2.8% BE Aerospace, Inc. * 24,400 $ 627 Orbital Sciences Corp. * 19,900 367 Teledyne Technologies, Inc. * 12,200 489 ---------- 1,483 ---------- AIRLINES - 0.3% Allegiant Travel Co. * 6,239 175 ---------- APPAREL - 5.6% Guess?, Inc. * 9,100 577 Gymboree Corp. * 10,100 386 Heelys, Inc. * 3,145 101 Phillips-Van Heusen Corp. 13,600 682 Skechers U.S.A., Inc., Class A * 13,400 446 Steven Madden Ltd. 13,000 456 Wolverine World Wide, Inc. 10,800 308 ---------- 2,956 ---------- BANKS - 4.0% Banner Corp. 8,500 377 East-West Bancorp, Inc. 8,600 305 Integra Bank Corp. 13,600 374 Peoples Bancorp, Inc. of Ohio 11,700 347 Renasant Corp. 12,400 380 Sterling Bancshares, Inc. of Texas 25,500 332 ---------- 2,115 ---------- BIOTECHNOLOGY - 2.2% Bio-Rad Laboratories, Inc., Class A * 6,300 520 Genomic Health, Inc. * 15,800 294 Savient Pharmaceuticals, Inc. * 31,600 354 ---------- 1,168 ---------- BUILDING MATERIALS - 1.2% Genlyte Group, Inc. * 7,900 617 ---------- CHEMICALS - 1.4% Hercules, Inc. * 17,900 346 Spartech Corp. 15,200 398 ---------- 744 ---------- COMMERCIAL SERVICES - 10.4% Administaff, Inc. 11,200 479 AMN Healthcare Services, Inc. * 15,700 432 CBIZ, Inc. * 71,100 495 Consolidated Graphics, Inc. * 8,600 508 Forrester Research, Inc. * 15,700 426 Gartner, Inc. * 23,300 461
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% - CONTINUED COMMERCIAL SERVICES - 10.4% - (CONTINUED) Heidrick & Struggles International, Inc. * 10,800 $ 457 ICT Group, Inc. * 13,700 433 Korn/Ferry International * 20,600 473 MPS Group, Inc. * 36,300 515 Parexel International Corp. * 17,600 510 PeopleSupport, Inc. * 13,000 274 ---------- 5,463 ---------- COMPUTERS - 4.9% Ansoft Corp. * 18,600 517 COMSYS IT Partners, Inc. * 27,000 546 Factset Research Systems, Inc. 5,000 282 IHS, Inc., Class A * 7,600 300 SYKES Enterprises, Inc. * 26,300 464 Tyler Technologies, Inc. * 33,900 477 ---------- 2,586 ---------- DIVERSIFIED FINANCIAL SERVICES - 2.2% Advanta Corp., Class B 14,300 624 World Acceptance Corp. * 11,000 516 ---------- 1,140 ---------- ELECTRICAL COMPONENTS & EQUIPMENT - 2.1% Advanced Energy Industries, Inc. * 25,100 474 General Cable Corp. * 14,800 647 ---------- 1,121 ---------- ELECTRONICS - 3.7% Cymer, Inc. * 10,800 475 Rofin-Sinar Technologies, Inc. * 8,400 508 Rogers Corp. * 8,000 473 Varian, Inc. * 11,100 497 ---------- 1,953 ---------- ENGINEERING & CONSTRUCTION - 0.9% Infrasource Services, Inc. * 20,900 455 ---------- ENTERTAINMENT - 1.2% Vail Resorts, Inc. * 13,600 610 ---------- HAND/MACHINE TOOLS - 0.5% Regal-Beloit Corp. 4,600 242 ---------- HEALTHCARE - PRODUCTS - 4.8% Bruker BioSciences Corp. * 59,700 448 ICU Medical, Inc. * 10,500 427 Immucor, Inc. * 23,800 696 Palomar Medical Technologies, Inc. * 9,000 456
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% - CONTINUED HEALTHCARE - PRODUCTS - 4.8% - (CONTINUED) Zoll Medical Corp. * 8,600 $ 501 ---------- 2,528 ---------- HEALTHCARE - SERVICES - 4.3% LHC Group, Inc. * 13,700 391 Magellan Health Services, Inc. * 9,000 389 Psychiatric Solutions, Inc. * 11,700 439 Radiation Therapy Services, Inc. * 16,000 504 Sunrise Senior Living, Inc. * 17,400 534 ---------- 2,257 ---------- INSURANCE - 3.7% CNA Surety Corp. * 24,900 535 Delphi Financial Group, Inc., Class A 12,300 498 Ohio Casualty Corp. 12,200 364 Selective Insurance Group, Inc. 9,900 567 ---------- 1,964 ---------- INTERNET - 2.9% Digital River, Inc. * 5,200 290 Harris Interactive, Inc. * 81,200 409 Knot (The), Inc. * 19,400 509 TriZetto Group, Inc. * 17,300 318 ---------- 1,526 ---------- IRON/STEEL - 1.5% Carpenter Technology Corp. 3,000 308 Chaparral Steel Co. 10,800 478 ---------- 786 ---------- LEISURE TIME - 1.0% Ambassadors Group, Inc. 17,100 519 ---------- MACHINERY - CONSTRUCTION & MINING - 1.0% Bucyrus International, Inc., Class A 10,100 523 ---------- MACHINERY - DIVERSIFIED - 2.8% Kadant, Inc. * 20,300 495 Middleby Corp. * 5,100 534 Wabtec Corp. 14,000 425 ---------- 1,454 ---------- METAL FABRICATION/HARDWARE - 0.6% Kaydon Corp. 7,600 302 ---------- OFFICE FURNISHINGS - 1.0% Knoll, Inc. 23,800 524 ---------- OFFICE/BUSINESS EQUIPMENT - 0.9% Global Imaging Systems, Inc. * 20,400 448 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% - CONTINUED OIL & GAS - 1.3% Cabot Oil & Gas Corp. 6,600 $ 400 Delek US Holdings, Inc. 17,300 284 ---------- 684 ---------- OIL & GAS SERVICES - 4.3% Input/Output, Inc. * 36,800 502 Matrix Service Co. * 24,400 393 SEACOR Holdings, Inc. * 4,400 436 Trico Marine Services, Inc. * 12,400 475 Universal Compression Holdings, Inc. * 7,200 447 ---------- 2,253 ---------- PHARMACEUTICALS - 4.5% Cypress Bioscience, Inc. * 38,500 298 KV Pharmaceutical Co., Class A * 21,500 511 Medicis Pharmaceutical Corp., Class A 13,000 457 Noven Pharmaceuticals, Inc. * 11,000 280 Perrigo Co. 18,300 317 USANA Health Sciences, Inc. * 9,700 501 ---------- 2,364 ---------- RETAIL - 7.9% Aeropostale, Inc. * 17,200 531 Bebe Stores, Inc. 20,900 414 Cache, Inc. * 18,000 454 Charlotte Russe Holding, Inc. * 16,200 498 Group 1 Automotive, Inc. 6,100 315 Men's Wearhouse, Inc. 14,300 547 Ruth's Chris Steak House * 25,600 468 Shoe Carnival, Inc. * 14,100 446 Tween Brands, Inc. * 12,000 479 ---------- 4,152 ---------- SAVINGS & LOANS - 0.7% First Place Financial Corp. of Ohio 16,300 383 ---------- SEMICONDUCTORS - 3.3% Cirrus Logic, Inc. * 61,400 422 Emulex Corp. * 24,500 478 Silicon Image, Inc. * 35,500 452 Supertex, Inc. * 10,300 404 ---------- 1,756 ---------- SOFTWARE - 4.6% Informatica Corp. * 34,800 425 INVESTools, Inc. * 39,900 550 Omnicell, Inc. * 30,100 561
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS SMALL CAP GROWTH FUND (continued) DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 99.3% - CONTINUED SOFTWARE - 4.6% - (CONTINUED) Sybase, Inc. * 15,900 $ 392 Transaction Systems Architects, Inc. * 14,700 479 ---------- 2,407 ---------- TELECOMMUNICATIONS - 4.8% Anixter International, Inc. * 8,800 478 Arris Group, Inc. * 38,800 485 CommScope, Inc. * 15,600 476 Lightbridge, Inc. * 27,900 378 Polycom, Inc. * 22,400 692 ---------- 2,509 ---------- TOTAL COMMON STOCKS (COST $46,617) 52,167 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 0.7% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 360 360 TOTAL SHORT-TERM INVESTMENT (COST $360) 360 TOTAL INVESTMENTS - 100.0% (COST $46,977) 52,527 ---------- Liabilities less Other Assets - 0.0% (20) ---------- NET ASSETS - 100.0% $ 52,507
* Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 46,977 ---------- Gross tax appreciation of investments $ 6,398 Gross tax depreciation of investments (848) ---------- Net tax appreciation of investments $ 5,550 ==========
EQUITY FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT EQUITY FUNDS SCHEDULE OF INVESTMENTS SMALL CAP VALUE FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% AEROSPACE/DEFENSE - 1.9% EDO Corp. 20,900 $ 496 Esterline Technologies Corp. * 132,763 5,341 Heico Corp. 13,860 538 Herley Industries, Inc. * 2,000 32 Moog, Inc., Class A * 134,350 5,131 Orbital Sciences Corp. * 45,431 838 Sequa Corp., Class A * 7,000 806 Triumph Group, Inc. 1,514 79 ---------- 13,261 ---------- AGRICULTURE - 0.0% Andersons (The), Inc. 2,300 97 ---------- AIRLINES - 0.6% Mesa Air Group, Inc. * 3,753 32 Skywest, Inc. 156,784 4,000 ---------- 4,032 ---------- APPAREL - 1.7% Deckers Outdoor Corp. * 15,600 935 Gymboree Corp. * 2,939 112 Kellwood Co. 56,250 1,829 Phillips-Van Heusen Corp. 62,883 3,155 Skechers U.S.A., Inc., Class A * 52,000 1,732 Stride Rite Corp. 108,675 1,639 Superior Uniform Group, Inc. 9,800 126 Warnaco Group (The), Inc. * 50,400 1,279 Wolverine World Wide, Inc. 22,207 634 ---------- 11,441 ---------- AUTO PARTS & EQUIPMENT - 0.8% Aftermarket Technology Corp. * 50,355 1,072 ArvinMeritor, Inc. 4,900 89 Bandag, Inc. 77,917 3,929 Modine Manufacturing Co. 27,796 696 ---------- 5,786 ---------- BANKS - 13.2% 1st Source Corp. 76,505 2,458 Alabama National Bancorp 14,681 1,009 Amcore Financial, Inc. 36,931 1,207 AmericanWest Bancorp 6,595 160 Ameris Bancorp 71,128 2,004 Bancfirst Corp. 31,144 1,682 BancorpSouth, Inc. 113,310 3,039 Bank Mutual Corp. 7,600 92 Bank of Granite Corp. 8,423 160
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED BANKS - 13.2% - (CONTINUED) Banner Corp. 47,141 $ 2,090 Berkshire Bancorp, Inc. 10,202 166 Boston Private Financial Holdings, Inc. 43,431 1,225 Capital Bank Corp. 11,049 190 Capital City Bank Group, Inc. 9,092 321 Capital Crossing Bank * 1,939 58 Capitol Bancorp Ltd. 9,500 439 Cathay General Bancorp 1,348 47 Central Pacific Financial Corp. 60,484 2,344 Chemical Financial Corp. 34,473 1,148 Chittenden Corp. 21,400 657 Citizens & Northern Corp. 1,798 40 Citizens Banking Corp. of Michigan 67,498 1,789 City Holding Co. 11,625 475 Columbia Banking System, Inc. 2,447 86 Community Bank System, Inc. 177,398 4,080 Community Banks, Inc. 10,300 286 Community Trust Bancorp, Inc. 49,511 2,056 Corus Bankshares, Inc. 41,386 955 Farmers Capital Bank Corp. 1,900 65 First Bancorp of North Carolina 12,309 269 First Charter Corp. 41,268 1,015 First Citizens BancShares, Inc., Class B 150 31 First Citizens BancShares, Inc. of North Carolina, Class A 17,078 3,461 First Commonwealth Financial Corp. 182,143 2,446 First Community Bancorp, Inc. of California 17,110 894 First Community Bancshares, Inc. of Virginia 12,429 492 First Financial Corp. of Indiana 59,840 2,121 First Indiana Corp. 25,480 646 First M & F Corp. 15,677 304 First Merchants Corp. 51,116 1,390 First Republic Bank of California 41,620 1,627 First State Bancorporation of New Mexico 17,225 426 FirstMerit Corp. 95,600 2,308 FNB Corp. of Pennsylvania 29,300 535 GB&T Bancshares, Inc. 35,502 787 Greater Bay Bancorp 119,604 3,149 Greene County Bancshares, Inc. 4,200 167 Hanmi Financial Corp. 56,036 1,263 Harleysville National Corp. 23,854 461 Heartland Financial USA, Inc. 16,431 474 Heritage Commerce Corp. 4,022 107
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED BANKS - 13.2% - (CONTINUED) IBERIABANK Corp. 4,711 $ 278 Independent Bank Corp. of Massachusetts 15,081 543 Integra Bank Corp. 12,541 345 Irwin Financial Corp. 33,500 758 ITLA Capital Corp. 29,989 1,737 Lakeland Bancorp, Inc. 22,221 331 Macatawa Bank Corp. 13,372 284 Main Street Trust, Inc. 3,205 113 MainSource Financial Group, Inc. 7,118 121 MB Financial, Inc. 19,551 735 MBT Financial Corp. 16,657 255 Mercantile Bank Corp. 7,876 297 Mid-State Bancshares 9,847 358 National Penn Bancshares, Inc. 32,006 648 NBT Bancorp, Inc. 15,700 401 Old National Bancorp of Indiana 121,334 2,296 Omega Financial Corp. 1,443 46 Peoples Bancorp, Inc. of Ohio 11,135 331 Prosperity Bancshares, Inc. 13,700 473 Provident Bankshares Corp. 37,528 1,336 Renasant Corp. 13,155 403 Republic Bancorp, Inc. of Kentucky, Class A 34,651 869 Republic Bancorp, Inc. of Michigan 33,100 446 SCBT Financial Corp. 4,200 175 Security Bank Corp. of Georgia 10,003 228 Simmons First National Corp., Class A 50,048 1,579 Southwest Bancorp, Inc. of Oklahoma 19,754 550 Sterling Bancshares, Inc. of Texas 34,200 445 Sterling Financial Corp. of Pennsylvania 28,372 672 Sterling Financial Corp. of Washington 113,489 3,837 Sun Bancorp, Inc. of New Jersey * 8,654 182 Susquehanna Bancshares, Inc. 119,690 3,217 Taylor Capital Group, Inc. 1,010 37 UMB Financial Corp. 139,956 5,110 Umpqua Holdings Corp. 69,295 2,039 Union Bankshares Corp. of Virginia 6,150 188 Univest Corp. of Pennsylvania 33,479 1,020 Virginia Financial Group, Inc. 7,317 205 Washington Trust Bancorp, Inc. 8,900 248 WesBanco, Inc. 55,450 1,859 Wintrust Financial Corp. 20,090 965
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED BANKS - 13.2% - (CONTINUED) Yardville National Bancorp 18,101 $ 683 ---------- 91,344 ---------- BIOTECHNOLOGY - 0.4% Regeneron Pharmaceuticals, Inc. * 150,600 3,023 ---------- BUILDING MATERIALS - 0.7% Comfort Systems USA, Inc. 17,400 220 Lennox International, Inc. 12,372 379 LSI Industries, Inc. 42,338 840 NCI Building Systems, Inc. * 40,420 2,092 Texas Industries, Inc. 1,700 109 Universal Forest Products, Inc. 32,258 1,504 ---------- 5,144 ---------- CHEMICALS - 1.9% Arch Chemicals, Inc. 76,571 2,551 Minerals Technologies, Inc. 62,772 3,690 NewMarket Corp. 25,235 1,490 Penford Corp. 4,278 74 PolyOne Corp. * 42,900 322 Schulman (A.), Inc. 68,849 1,532 Sensient Technologies Corp. 88,084 2,167 Spartech Corp. 42,600 1,117 ---------- 12,943 ---------- COMMERCIAL SERVICES - 3.7% ABM Industries, Inc. 29,800 677 Banta Corp. 30,850 1,123 Bowne & Co., Inc. 29,500 470 CBIZ, Inc. * 286,205 1,995 Central Parking Corp. 7,900 142 Clark, Inc. 45,800 762 Corrections Corp. of America * 71,685 3,242 Cross Country Healthcare, Inc. * 81,473 1,778 Dollar Thrifty Automotive Group * 59,700 2,723 Electro Rent Corp. * 30,852 515 Exponent, Inc. * 16,008 299 Forrester Research, Inc. * 7,322 199 FTI Consulting, Inc. * 3,600 100 Hewitt Associates, Inc., Class A * 19,623 505 Kelly Services, Inc., Class A 32,875 951 Kforce, Inc. * 70,000 852 MAXIMUS, Inc. 8,200 252 MPS Group, Inc. * 384,777 5,456 On Assignment, Inc. * 26,982 317
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS SMALL CAP VALUE FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED COMMERCIAL SERVICES - 3.7% - (CONTINUED) Parexel International Corp. * 2,300 $ 67 Source Interlink Cos., Inc. * 107,968 881 Startek, Inc. 36,700 497 Stewart Enterprises, Inc., Class A 67,678 423 TeleTech Holdings, Inc. * 22,863 546 Viad Corp. 13,100 532 ---------- 25,304 ---------- COMPUTERS - 1.5% Agilysys, Inc. 30,604 512 Catapult Communications Corp. * 6,455 58 CIBER, Inc. * 59,266 402 Hutchinson Technology, Inc. * 36,242 854 Imation Corp. 62,883 2,920 MTS Systems Corp. 23,215 897 Perot Systems Corp., Class A * 148,700 2,437 Quantum Corp. * 3,600 8 Radisys Corp. * 77,600 1,294 SI International, Inc. * 13,825 448 SYKES Enterprises, Inc. * 13,591 240 ---------- 10,070 ---------- DISTRIBUTION/WHOLESALE - 0.3% Brightpoint, Inc. * 51,062 687 Building Material Holding Corp. 11,100 274 United Stationers, Inc. * 30,300 1,415 ---------- 2,376 ---------- DIVERSIFIED FINANCIAL SERVICES - 1.7% Advanta Corp., Class A 4,300 171 Advanta Corp., Class B 16,401 716 CharterMac 3,100 67 CompuCredit Corp. * 79,817 3,178 Credit Acceptance Corp. * 43,788 1,459 Federal Agricultural Mortgage Corp., Class C 11,025 299 Financial Federal Corp. 52,161 1,534 Municipal Mortgage & Equity LLC 6,057 195 Ocwen Financial Corp. * 190,374 3,019 SWS Group, Inc. 24,455 873 ---------- 11,511 ---------- ELECTRIC - 3.1% Avista Corp. 34,552 875 Black Hills Corp. 38,179 1,410 Central Vermont Public Service Corp. 16,000 377 CH Energy Group, Inc. 16,042 847
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED ELECTRIC - 3.1% - (CONTINUED) Cleco Corp. 88,605 $ 2,235 Duquesne Light Holdings, Inc. 77,655 1,541 El Paso Electric Co. * 16,200 395 Empire District Electric (The) Co. 33,123 818 Otter Tail Corp. 31,211 973 PNM Resources, Inc. 42,095 1,309 UIL Holdings Corp. 112,815 4,760 Unisource Energy Corp. 129,900 4,745 WPS Resources Corp. 23,800 1,286 ---------- 21,571 ---------- ELECTRICAL COMPONENTS & EQUIPMENT - 0.6% Belden CDT, Inc. 33,000 1,290 Encore Wire Corp. 86,262 1,898 Greatbatch, Inc. * 24,400 657 ---------- 3,845 ---------- ELECTRONICS - 3.8% Analogic Corp. 21,609 1,213 Bel Fuse, Inc., Class B 19,016 662 Benchmark Electronics, Inc. * 279,235 6,802 Coherent, Inc. * 18,205 575 CTS Corp. 154,396 2,424 Cymer, Inc. * 36,300 1,595 Electro Scientific Industries, Inc. * 92,911 1,871 Excel Technology, Inc. * 8,724 223 FEI Co. * 36,579 965 Park Electrochemical Corp. 16,424 421 Paxar Corp. * 122,261 2,819 Rofin-Sinar Technologies, Inc. * 23,846 1,442 Technitrol, Inc. 14,806 354 TTM Technologies, Inc. * 95,744 1,085 Watts Water Technologies, Inc., Class A 96,500 3,967 Woodward Governor Co. 3,265 130 ---------- 26,548 ---------- ENERGY - ALTERNATE SOURCES - 0.2% Headwaters, Inc. * 65,800 1,577 ---------- ENGINEERING & CONSTRUCTION - 0.8% Dycom Industries, Inc. * 43,190 912 EMCOR Group, Inc. * 33,554 1,908 Washington Group International, Inc. * 43,249 2,586 ---------- 5,406 ---------- ENTERTAINMENT - 0.8% Bluegreen Corp. * 34,212 439
EQUITY FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED ENTERTAINMENT - 0.8% - (CONTINUED) Churchill Downs, Inc. 27,155 $ 1,160 Vail Resorts, Inc. * 80,629 3,614 ---------- 5,213 ---------- ENVIRONMENTAL CONTROL - 0.1% Waste Industries USA, Inc. 15,992 488 ---------- FOOD - 2.5% Flowers Foods, Inc. 101,875 2,749 Hain Celestial Group, Inc. * 45,500 1,420 J & J Snack Foods Corp. 5,034 208 Lance, Inc. 19,169 385 Nash Finch Co. 6,179 169 Performance Food Group Co. * 20,900 578 Pilgrims Pride Corp. 38,800 1,142 Ralcorp Holdings, Inc. * 25,857 1,316 Ruddick Corp. 142,271 3,948 Seaboard Corp. 2,055 3,627 Weis Markets, Inc. 44,808 1,797 ---------- 17,339 ---------- FOREST PRODUCTS & PAPER - 0.5% Glatfelter 62,709 972 Potlatch Corp. 33,500 1,468 Rock-Tenn Co., Class A 31,886 865 Wausau Paper Corp. 17,500 262 ---------- 3,567 ---------- GAS - 2.6% Laclede Group (The), Inc. 33,441 1,172 Northwest Natural Gas Co. 41,067 1,743 Peoples Energy Corp. 41,275 1,840 SEMCO Energy, Inc. * 7,600 46 South Jersey Industries, Inc. 55,472 1,853 Southwest Gas Corp. 132,791 5,095 Vectren Corp. 47,100 1,332 WGL Holdings, Inc. 152,800 4,978 ---------- 18,059 ---------- HAND/MACHINE TOOLS - 0.7% Regal-Beloit Corp. 91,616 4,811 ---------- HEALTHCARE - PRODUCTS - 0.6% Cantel Medical Corp. * 10,000 162 Conmed Corp. * 74,754 1,728 Datascope Corp. 32,269 1,176 PSS World Medical, Inc. * 6,030 118
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED HEALTHCARE - PRODUCTS - 0.6% - (CONTINUED) Viasys Healthcare, Inc. * 38,577 $ 1,073 ---------- 4,257 ---------- HEALTHCARE - SERVICES - 2.2% AMERIGROUP Corp. * 85,600 3,072 Genesis HealthCare Corp. * 31,614 1,493 Horizon Health Corp. * 8,200 161 Kindred Healthcare, Inc. * 52,500 1,326 LifePoint Hospitals, Inc. * 71,329 2,404 Magellan Health Services, Inc. * 60,000 2,593 Res-Care, Inc. * 42,500 771 Sunrise Senior Living, Inc. * 97,946 3,009 Symbion, Inc. * 23,819 441 ---------- 15,270 ---------- HOLDING COMPANIES - DIVERSIFIED - 0.0% Resource America, Inc., Class A 8,650 228 ---------- HOME BUILDERS - 0.4% Lennar Corp., Class B 31,400 1,542 M/I Homes, Inc. 900 35 Skyline Corp. 16,813 676 WCI Communities, Inc. * 31,700 608 ---------- 2,861 ---------- HOME FURNISHINGS - 0.1% Hooker Furniture Corp. 5,500 86 Kimball International, Inc., Class B 32,435 788 La-Z-Boy, Inc. 10,890 130 ---------- 1,004 ---------- HOUSEHOLD PRODUCTS/WARES - 0.7% American Greetings Corp., Class A 32,488 775 Blyth, Inc. 32,988 685 Central Garden and Pet Co. * 9,987 484 CSS Industries, Inc. 47,245 1,671 Ennis, Inc. 46,991 1,149 Helen of Troy Ltd. * 7,808 189 ---------- 4,953 ---------- INSURANCE - 6.7% 21st Century Insurance Group 69,100 1,220 Alfa Corp. 57,673 1,085 American Equity Investment Life Holding Co. 28,400 370 American Physicians Capital, Inc. * 13,243 530 Argonaut Group, Inc. * 38,051 1,327 Bristol West Holdings, Inc. 15,300 242
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS SMALL CAP VALUE FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED INSURANCE - 6.7% - (CONTINUED) CNA Surety Corp. * 45,200 $ 972 Commerce Group, Inc. 46,100 1,372 Delphi Financial Group, Inc., Class A 144,950 5,865 Donegal Group, Inc., Class A 15,966 313 EMC Insurance Group, Inc. 18,385 627 FBL Financial Group, Inc., Class A 15,850 619 First Acceptance Corp. * 18,100 194 FPIC Insurance Group, Inc. * 9,200 359 Great American Financial Resources, Inc. 62,992 1,452 Harleysville Group, Inc. 26,291 915 Horace Mann Educators Corp. 57,497 1,161 Independence Holding Co. 22,504 491 Infinity Property & Casualty Corp. 14,990 725 LandAmerica Financial Group, Inc. 27,423 1,731 Midland (The) Co. 24,342 1,021 Navigators Group, Inc. * 18,612 897 Ohio Casualty Corp. 8,769 261 Presidential Life Corp. 2,300 51 ProAssurance Corp. * 66,809 3,335 RLI Corp. 101,400 5,721 Safety Insurance Group, Inc. 16,513 837 Selective Insurance Group, Inc. 105,431 6,040 State Auto Financial Corp. 35,862 1,246 Stewart Information Services Corp. 59,505 2,580 Triad Guaranty, Inc. * 19,067 1,046 United America Indemnity Ltd., Class A * 11,200 284 United Fire & Casualty Co. 20,886 736 Universal American Financial Corp. * 35,587 663 USI Holdings Corp. * 5,395 83 ---------- 46,371 ---------- INTERNET - 2.3% Avocent Corp. * 124,180 4,204 Harris Interactive, Inc. * 268,299 1,352 Infospace, Inc. * 8,000 164 Interwoven, Inc. * 26,900 395 iPass, Inc. * 20,466 120 Keynote Systems, Inc. * 3,972 42 RealNetworks, Inc. * 203,900 2,231 SonicWALL, Inc. * 7,400 62 TIBCO Software, Inc. * 430,600 4,065 United Online, Inc. 41,100 546 ValueClick, Inc. * 92,176 2,178
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED INTERNET - 2.3% - (CONTINUED) Vignette Corp. * 19,300 $ 329 ---------- 15,688 ---------- INVESTMENT COMPANIES - 0.2% MCG Capital Corp. 56,539 1,149 ---------- IRON/STEEL - 0.5% Gibraltar Industries, Inc. 87,304 2,053 Material Sciences Corp. * 3,200 41 Oregon Steel Mills, Inc. * 2,500 156 Ryerson, Inc. 5,400 135 Schnitzer Steel Industries, Inc., Class A 20,454 812 ---------- 3,197 ---------- LEISURE TIME - 0.2% Callaway Golf Co. 77,600 1,118 Nautilus, Inc. 33,000 462 ---------- 1,580 ---------- LODGING - 0.6% Aztar Corp. * 34,441 1,874 Marcus Corp. 82,888 2,120 MTR Gaming Group, Inc. * 29,100 356 ---------- 4,350 ---------- MACHINERY - CONSTRUCTION & MINING - 0.0% Astec Industries, Inc. * 2,270 80 ---------- MACHINERY - DIVERSIFIED - 1.1% Albany International Corp., Class A 13,900 458 Briggs & Stratton Corp. 23,800 641 Cascade Corp. 19,701 1,042 Gehl Co. * 9,619 265 NACCO Industries, Inc., Class A 6,492 887 Sauer-Danfoss, Inc. 139,685 4,505 ---------- 7,798 ---------- MEDIA - 0.3% 4Kids Entertainment, Inc. * 1,200 22 American Satellite Network * 255 -- Hearst-Argyle Television, Inc. 36,900 941 Journal Communications, Inc., Class A 34,976 441 Scholastic Corp. * 12,125 434 ---------- 1,838 ---------- METAL FABRICATION/HARDWARE - 1.1% CIRCOR International, Inc. 50,909 1,873 Lawson Products, Inc. 12,845 590 Mueller Industries, Inc. 12,600 399
EQUITY FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED METAL FABRICATION/HARDWARE - 1.1% - (CONTINUED) Quanex Corp. 57,860 $ 2,001 Worthington Industries, Inc. 158,493 2,809 ---------- 7,672 ---------- MINING - 0.1% AMCOL International Corp. 2,400 67 Century Aluminum Co. * 2,600 116 Stillwater Mining Co. * 2,200 27 USEC, Inc. * 18,341 233 ---------- 443 ---------- MISCELLANEOUS MANUFACTURING - 1.5% Ameron International Corp. 24,605 1,879 Aptargroup, Inc. 15,500 915 EnPro Industries, Inc. * 9,800 325 ESCO Technologies, Inc. * 23,518 1,069 Griffon Corp. * 37,823 965 Jacuzzi Brands, Inc. * 9,462 118 Myers Industries, Inc. 52,199 817 Smith (A.O.) Corp. 98,840 3,712 Standex International Corp. 22,821 688 Tredegar Corp. 1,255 28 ---------- 10,516 ---------- OIL & GAS - 1.8% Atlas America, Inc. * 6,302 321 Callon Petroleum Co. * 4,200 63 Edge Petroleum Corp. * 23,100 421 Giant Industries, Inc. * 15,500 1,162 Harvest Natural Resources, Inc. * 117,000 1,244 Houston Exploration Co. * 88,300 4,572 Swift Energy Co. * 51,700 2,317 Whiting Petroleum Corp. * 43,500 2,027 ---------- 12,127 ---------- OIL & GAS SERVICES - 0.7% Oil States International, Inc. * 112,500 3,626 Veritas DGC, Inc. * 16,451 1,409 ---------- 5,035 ---------- PACKAGING & CONTAINERS - 0.5% Greif, Inc., Class A 26,417 3,128 Greif, Inc., Class B 4,400 473 ---------- 3,601 ---------- PHARMACEUTICALS - 1.0% Alpharma, Inc., Class A 63,500 1,530
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED PHARMACEUTICALS - 1.0% - (CONTINUED) NBTY, Inc. * 73,011 $ 3,035 Nutraceutical International Corp. * 30,600 468 Omega Protein Corp. * 18,200 141 Viropharma, Inc. * 115,153 1,686 ---------- 6,860 ---------- PIPELINES - 0.0% Kinder Morgan Management LLC (Fractional Shares) * 14,670 -- ---------- REAL ESTATE - 0.2% Avatar Holdings, Inc. * 6,583 532 W.P. Carey & Co. LLC 28,900 869 ---------- 1,401 ---------- REAL ESTATE INVESTMENT TRUSTS - 8.4% Acadia Realty Trust 24,523 614 Agree Realty Corp. 3,100 107 American Home Mortgage Investment Corp. 76,338 2,681 American Land Lease, Inc. 26,088 692 Anthracite Capital, Inc. 196,659 2,503 Arbor Realty Trust, Inc. 10,700 322 BioMed Realty Trust, Inc. 32,100 918 Capital Trust, Inc. of New York, Class A 37,651 1,880 Cedar Shopping Centers, Inc. 30,000 477 CentraCore Properties Trust 15,700 508 Cousins Properties, Inc. 6,700 236 EastGroup Properties, Inc. 18,265 978 Entertainment Properties Trust 27,466 1,605 Equity Inns, Inc. 47,300 755 Equity One, Inc. 247,631 6,602 First Potomac Realty Trust 20,800 605 Gramercy Capital Corp. of New York 16,000 494 Health Care REIT, Inc. 857 37 Healthcare Realty Trust, Inc. 41,500 1,641 Highland Hospitality Corp. 41,800 596 Home Properties, Inc. 15,600 925 Inland Real Estate Corp. 34,500 646 Innkeepers USA Trust 5,800 90 Investors Real Estate Trust 13,793 142 LaSalle Hotel Properties 7,152 328 Lexington Corporate Properties Trust 27,400 614 Longview Fibre Co. 6,659 146 LTC Properties, Inc. 18,700 511 Mission West Properties 4,735 62
NORTHERN FUNDS QUARTERLY REPORT 6 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS SMALL CAP VALUE FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED REAL ESTATE INVESTMENT TRUSTS - 8.4% - (CONTINUED) National Health Investors, Inc. 77,376 $ 2,553 National Retail Properties, Inc. 151,927 3,487 Newcastle Investment Corp. 116,333 3,644 Novastar Financial, Inc. 32,100 855 OMEGA Healthcare Investors, Inc. 12,995 230 Parkway Properties, Inc. of Maryland 31,042 1,583 Pennsylvania Real Estate Investment Trust 89,900 3,540 Post Properties, Inc. 3,800 174 PS Business Parks, Inc. 46,457 3,285 RAIT Investment Trust 83,857 2,891 Ramco-Gershenson Properties 13,381 510 Realty Income Corp. 33,500 928 Redwood Trust, Inc. 22,800 1,324 Senior Housing Properties Trust 167,183 4,093 Sovran Self Storage, Inc. 11,061 634 Universal Health Realty Income Trust 4,300 168 Urstadt Biddle Properties, Inc., Class A 15,100 288 Winston Hotels, Inc. 13,800 183 Winthrop Realty Trust 34,200 234 ---------- 58,319 ---------- RETAIL - 7.7% Big Lots, Inc. * 271,440 6,221 BJ's Wholesale Club, Inc. * 47,234 1,469 Bob Evans Farms, Inc. 40,016 1,369 Borders Group, Inc. 67,300 1,504 Brown Shoe Co., Inc. 35,589 1,699 Buckle (The), Inc. 15,223 774 Cash America International, Inc. 79,583 3,732 CBRL Group, Inc. 45,700 2,046 Charlotte Russe Holding, Inc. * 73,339 2,255 Charming Shoppes, Inc. * 213,044 2,883 Dress Barn, Inc. * 5,962 139 Fred's, Inc. 41,000 494 Group 1 Automotive, Inc. 45,131 2,334 Haverty Furniture Cos., Inc. 1,475 22 Insight Enterprises, Inc. * 77,474 1,462 Landry's Restaurants, Inc. 100,123 3,013 Lithia Motors, Inc., Class A 25,554 735 Luby's, Inc. * 33,400 364 MarineMax, Inc. * 44,227 1,147 Men's Wearhouse, Inc. 26,301 1,006 Movado Group, Inc. 42,599 1,235
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED RETAIL - 7.7% - (CONTINUED) O'Charleys, Inc. * 10,141 $ 216 Pantry (The), Inc. * 43,792 2,051 Rush Enterprises, Inc., Class A * 19,362 328 Shoe Carnival, Inc. * 13,344 422 Smart & Final, Inc. * 100,350 1,897 Sonic Automotive, Inc., Class A 64,648 1,877 Stage Stores, Inc. 65,594 1,993 Steak n Shake (The) Co. * 40,646 715 Stein Mart, Inc. 20,453 271 United Auto Group, Inc. 219,540 5,175 United Retail Group, Inc. * 13,900 195 Zale Corp. * 87,808 2,477 ---------- 53,520 ---------- SAVINGS & LOANS - 3.6% BankAtlantic Bancorp, Inc., Class A 129,868 1,793 BankUnited Financial Corp., Class A 32,890 920 Berkshire Hills Bancorp, Inc. 7,306 244 Brookline Bancorp, Inc. 89,510 1,179 Citizens First Bancorp, Inc. 4,688 144 Dime Community Bancshares 44,656 626 Downey Financial Corp. 42,322 3,072 First Defiance Financial Corp. 20,625 625 First Place Financial Corp. of Ohio 32,392 761 FirstFed Financial Corp. * 80,639 5,400 Flagstar Bancorp, Inc. 14,200 211 Flushing Financial Corp. 24,309 415 Franklin Bank Corp. of Houston * 14,700 302 MAF Bancorp, Inc. 59,698 2,668 NASB Financial, Inc. 4,600 190 Northwest Bancorp, Inc. 15,565 427 OceanFirst Financial Corp. 7,850 180 Partners Trust Financial Group, Inc. 11,945 139 PennFed Financial Services, Inc. 1,900 37 PFF Bancorp, Inc. 53,039 1,830 Provident Financial Holdings, Inc. 3,043 93 Provident New York Bancorp 20,073 301 TierOne Corp. 25,821 816 Timberland Bancorp, Inc. of Washington 1,869 69 United Community Financial Corp. of Ohio 206,427 2,527 Westfield Financial, Inc. * 2,619 91 Willow Grove Bancorp, Inc. 7,473 111 ---------- 25,171 ----------
EQUITY FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED SEMICONDUCTORS - 1.3% Cohu, Inc. 36,000 $ 726 DSP Group, Inc. * 25,800 560 Entegris, Inc. * 151,202 1,636 Mattson Technology, Inc. * 131,300 1,224 MKS Instruments, Inc. * 126,542 2,857 Photronics, Inc. * 23,600 385 Portalplayer, Inc. * 15,900 214 Rudolph Technologies, Inc. * 8,786 140 Semitool, Inc. * 14,300 190 Skyworks Solutions, Inc. * 21,900 155 Standard Microsystems Corp. * 25,700 719 ---------- 8,806 ---------- SOFTWARE - 1.6% Avid Technology, Inc. * 27,037 1,007 Digi International, Inc. * 14,300 197 eFunds Corp. * 115,482 3,176 EPIQ Systems, Inc. * 24,700 419 JDA Software Group, Inc. * 87,083 1,199 Keane, Inc. * 83,850 999 Lawson Software, Inc. * 282,282 2,086 MapInfo Corp. * 15,750 205 Pegasystems, Inc. 3,000 30 Per-Se Technologies, Inc. * 30,390 844 SYNNEX Corp. * 16,900 371 Ulticom, Inc. * 55,055 528 ---------- 11,061 ---------- TELECOMMUNICATIONS - 2.7% Aeroflex, Inc. * 310,847 3,643 Atlantic Tele-Network, Inc. 3,700 108 CommScope, Inc. * 55,600 1,695 CT Communications, Inc. 87,019 1,995 EFJ, Inc. * 15,000 101 Extreme Networks * 46,600 195 Golden Telecom, Inc. 61,489 2,880 Hypercom Corp. * 135,502 861 Iowa Telecommunications Services, Inc. 16,344 322 Polycom, Inc. * 147,155 4,549 Premiere Global Services, Inc. * 93,222 880 Shenandoah Telecom Co. 800 38 SureWest Communications 9,238 254 Symmetricom, Inc. * 27,400 244
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 95.3% - CONTINUED TELECOMMUNICATIONS - 2.7% - (CONTINUED) Tekelec * 50,795 $ 753 ---------- 18,518 ---------- TEXTILES - 0.5% G&K Services, Inc., Class A 39,457 1,534 Hallwood Group, Inc. * 600 74 Unifirst Corp. of Massachusetts 54,818 2,106 ---------- 3,714 ---------- TOYS, GAMES & HOBBIES - 0.5% Jakks Pacific, Inc. * 45,345 990 RC2 Corp. * 51,221 2,254 Topps (The) Co. 7,400 66 ---------- 3,310 ---------- TRANSPORTATION - 1.8% Arkansas Best Corp. 28,400 1,022 Bristow Group, Inc. * 58,443 2,109 General Maritime Corp. 5,502 194 Genesee & Wyoming, Inc., Class A * 40,000 1,050 Gulfmark Offshore, Inc. * 21,413 801 Marten Transport Ltd. * 28,150 516 OMI Corp. 158,737 3,360 Saia, Inc. * 40,310 936 U.S. Xpress Enterprises, Inc., Class A * 9,842 162 USA Truck, Inc. * 4,400 71 Werner Enterprises, Inc. 116,711 2,040 ---------- 12,261 ---------- TRUCKING & LEASING - 0.3% AMERCO, Inc. * 9,872 859 Greenbrier Cos., Inc. 2,800 84 Interpool, Inc. 47,837 1,117 ---------- 2,060 ---------- WATER - 0.0% American States Water Co. 4,541 175 California Water Service Group 1,905 77 ---------- 252 ---------- TOTAL COMMON STOCKS (COST $497,872) 660,027 ----------
NORTHERN FUNDS QUARTERLY REPORT 8 EQUITY FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS DECEMBER 31, 2006 (UNAUDITED) SMALL CAP VALUE FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- OTHER - 0.0% Escrow DLB Oil & Gas * 2,100 $ -- ---------- TOTAL OTHER (COST $ -) -- ---------- WARRANTS - 0.0% American Banknote Corp., Exp. 10/1/07, Strike $10.00 * 9 -- American Banknote Corp., Exp. 10/1/07, Strike $12.50 * 9 -- Timco Aviation Services, Inc. Exp. 12/31/07 * 864 -- ---------- TOTAL WARRANTS (COST $ -) -- ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 6.5% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 42,807 $ 42,807 U.S. Treasury Bill, (1) 5.02%, 2/22/07 2,355 2,338 TOTAL SHORT-TERM INVESTMENTS (COST $45,145) 45,145 ---------- TOTAL INVESTMENTS - 101.8% (COST $543,017) 705,172 ---------- Liabilities less Other Assets - (1.8)% (12,686) ---------- NET ASSETS - 100.0% $ 692,486
(1) Security pledged as collateral to cover margin requirements for open futures contracts. * Non-Income Producing Security At December 31, 2006, the Small Cap Value Fund had open futures contracts as follows:
NOTIONAL UNREALIZED NUMBER OF AMOUNT CONTRACT CONTRACT LOSS TYPE CONTRACTS (000S) POSITION EXP. (000S) ---- --------- -------- -------- -------- ---------- Russell Mini 2000 343 27,265 Long 3/07 ($89)
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $543,017 -------- Gross tax appreciation of investments $164,730 Gross tax depreciation of investments (2,575) -------- Net tax appreciation of investments $162,155 ========
EQUITY FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT EQUITY FUNDS SCHEDULE OF INVESTMENTS TECHNOLOGY FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.9% AEROSPACE/DEFENSE - 7.4% Boeing (The) Co. 34,000 $ 3,020 Lockheed Martin Corp. 38,100 3,508 Raytheon Co. 66,900 3,532 Rockwell Collins, Inc. 33,000 2,089 ---------- 12,149 ---------- BIOTECHNOLOGY - 3.2% Biogen Idec, Inc. * 75,000 3,689 Genentech, Inc. * 20,000 1,623 ---------- 5,312 ---------- COMMERCIAL SERVICES - 4.0% Accenture Ltd., Class A 92,400 3,412 Forrester Research, Inc. * 66,900 1,814 Gartner, Inc. * 68,800 1,362 ---------- 6,588 ---------- COMPUTERS - 19.9% Apple Computer, Inc. * 30,200 2,562 Brocade Communications Systems, Inc. * 217,800 1,788 Cadence Design Systems, Inc. * 281,400 5,040 Dell, Inc. * 129,500 3,249 Electronic Data Systems Corp. 96,100 2,648 Factset Research Systems, Inc. 31,700 1,790 Hewlett-Packard Co. 156,500 6,446 IBM Corp. 50,700 4,926 Mentor Graphics Corp. * 140,000 2,524 Western Digital Corp. * 92,800 1,899 ---------- 32,872 ---------- ELECTRONICS - 7.6% Applera Corp. - Applied Biosystems Group 58,200 2,135 AVX Corp. 133,000 1,967 Coherent, Inc. * 107,300 3,388 Cymer, Inc. * 34,500 1,516 Rofin-Sinar Technologies, Inc. * 32,400 1,959 Thermo Electron Corp. * 35,000 1,585 ---------- 12,550 ---------- ENTERTAINMENT - 1.3% Macrovision Corp. * 74,000 2,091 ---------- HEALTHCARE - PRODUCTS - 1.9% Alcon, Inc. 17,700 1,978 Medtronic, Inc. 22,100 1,183 ---------- 3,161 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.9% - CONTINUED INTERNET - 7.5% Digital River, Inc. * 35,600 $ 1,986 McAfee, Inc. * 67,800 1,924 Symantec Corp. * 192,000 4,003 TIBCO Software, Inc. * 274,000 2,587 VeriSign, Inc. * 80,300 1,931 ---------- 12,431 ---------- SEMICONDUCTORS - 17.3% ASML Holding N.V. * 69,700 1,717 Emulex Corp. * 164,400 3,207 Intersil Corp., Class A 77,600 1,856 Lam Research Corp. * 89,700 4,541 LSI Logic Corp. * 269,800 2,428 MEMC Electronic Materials, Inc. * 51,400 2,012 National Semiconductor Corp. 67,600 1,534 Taiwan Semiconductor Manufacturing Co. Ltd. ADR 337,668 3,691 Texas Instruments, Inc. 122,000 3,514 United Microelectronics Corp. ADR 543,800 1,898 Varian Semiconductor Equipment Associates, Inc. * 46,200 2,103 ---------- 28,501 ---------- SOFTWARE - 11.8% BEA Systems, Inc. * 101,000 1,271 BMC Software, Inc. * 92,500 2,978 Hyperion Solutions Corp. * 32,000 1,150 Microsoft Corp. 183,700 5,485 Oracle Corp. * 242,800 4,162 Sybase, Inc. * 101,600 2,510 Transaction Systems Architects, Inc. * 59,100 1,925 ---------- 19,481 ---------- TELECOMMUNICATIONS - 16.0% Amdocs Ltd. * 81,500 3,158 Arris Group, Inc. * 220,000 2,752 Avaya, Inc. * 203,400 2,844 Cisco Systems, Inc. * 217,700 5,950 Motorola, Inc. 132,100 2,716 Nokia OYJ ADR 307,800 6,254 Polycom, Inc. * 87,000 2,689 ---------- 26,363 ---------- TOTAL COMMON STOCKS (COST $139,927) 161,499 ----------
EQUITY FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 2.0% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 3,309 $ 3,309 ---------- TOTAL SHORT-TERM INVESTMENT (COST $3,309) 3,309 ---------- TOTAL INVESTMENTS - 99.9% (COST $143,236) 164,808 ---------- Other Assets less Liabilities - 0.1% 87 ---------- NET ASSETS - 100.0% $ 164,895
* Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $143,236 -------- Gross tax appreciation of investments $ 23,214 Gross tax depreciation of investments (1,642) -------- Net tax appreciation of investments $ 21,572 ========
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS GLOBAL REAL ESTATE INDEX FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% AUSTRALIA - 10.6% Abacus Property Group 132,810 $ 193 Australand Property Group 105,748 167 Babcock & Brown Japan Property Trust 116,555 192 Bunnings Warehouse Property Trust 66,502 113 Centro Properties Group 199,181 1,431 Centro Retail Group 61,790 99 CFS Retail Property Trust 378,693 696 Commonwealth Property Office Fund 395,174 458 DB RREEF Trust 693,873 972 FKP Property Group * 49,449 257 Galileo Shopping America Trust 233,764 227 GPT Group * 495,582 2,190 ING Industrial Fund 226,446 424 ING Office Fund 291,476 352 ING Real Estate Community Living Fund Group 69,105 69 Investa Property Group 371,897 737 Macquarie CountryWide Trust 304,510 507 Macquarie DDR Trust 216,543 226 Macquarie Goodman Group 394,250 2,365 Macquarie Office Trust 480,474 584 Macquarie ProLogis Trust 201,406 199 Mirvac Group 216,814 957 Multiplex Group 153,650 484 Rubicon America Trust 85,699 78 Rubicon Europe Trust Group 49,206 42 Stockland 331,964 2,170 Sunland Group Ltd. 50,259 143 Tishman Speyer Office Fund 68,634 135 Valad Property Group 148,383 186 Westfield Group 429,299 7,112 ---------- 23,765 ---------- AUSTRIA - 1.5% CA Immobilien Anlagen A.G. * 13,950 407 Conwert Immobilien Invest A.G. * 13,790 299 Immoeast Immobilien Anlagen A.G. * 66,320 933 IMMOFINANZ Immobilien Anlagen A.G. * 106,620 1,520 Sparkassen Immobilien A.G. * 15,940 206 ---------- 3,365 ---------- BELGIUM - 0.4% Befimmo SCA Sicafi 2,336 262 Cofinimmo S.A. 1,793 360 Intervest Offices 1,657 62
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED BELGIUM - 0.4% - (CONTINUED) Leasinvest Real Estate SCA 452 $ 46 Warehouses De Pauw SCA 1,491 98 Wereldhave Belgium N.V. 433 34 ---------- 862 ---------- BERMUDA - 0.2% Orient-Express Hotels Ltd. 10,536 498 ---------- CANADA - 2.3% Alexis Nihon Real Estate Investment Trust 4,200 62 Allied Properties Real Estate Investment Trust 4,778 95 Boardwalk Real Estate Investment Trust 12,800 453 Calloway Real Estate Investment Trust 18,500 438 Canadian Apartment Properties REIT 14,800 236 Canadian Hotel Income Properties REIT 8,200 105 Canadian Real Estate Investment Trust 14,200 383 Chartwell Seniors Housing Real Estate Investment Trust 17,100 205 Cominar Real Estate Investment Trust 8,500 164 Dundee Real Estate Investment Trust 8,200 272 H&R Real Estate Investment 30,600 632 InnVest Real Estate Investment Trust 11,600 137 IPC US Real Estate Investment Trust 10,000 106 Legacy Hotels Real Estate Investment Trust 24,700 201 Morguard Real Estate Investment Trust 10,400 123 Northern Property Real Estate Investment Trust 4,200 101 Primaris Retail Real Estate Investment Trust 12,100 196 Retirement Residences Real Estate Investment Trust 21,700 154 RioCan Real Estate Investment Trust 48,653 1,049 Sunrise Senior Living Real Estate Investment Trust 13,700 125 ---------- 5,237 ---------- DENMARK - 0.1% Keops A/S * 11,865 43 TK Development * 6,802 101 ---------- 144 ---------- FINLAND - 0.2% Citycon OYJ 29,400 196 Sponda OYJ 14,100 223 Technopolis PLC 9,400 96 ---------- 515 ---------- FRANCE - 2.9% Acanthe Developpement S.A. 8,986 43 Affine S.A. 305 55 Fonciere Des Regions 3,453 675
EQUITY INDEX FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED FRANCE - 2.9% - (CONTINUED) Gecina S.A. 3,019 $ 578 Icade * 6,469 408 Klepierre 5,594 1,056 Mercialys 6,918 276 Societe de la Tour Eiffel 1,203 217 Societe Immobiliere de Location pour l'Industrie et le Commerce 3,154 475 Unibail 11,109 2,715 ---------- 6,498 ---------- GERMANY - 0.8% Colonia Real Estate A.G. * 3,783 183 Deutsche Euroshop A.G. 4,088 303 Deutsche Wohnen A.G. 4,473 286 IVG Immobilien A.G. 21,055 905 Patrizia Immobilien A.G. * 5,626 168 ---------- 1,845 ---------- GREECE - 0.1% Babis Vovos International Construction S.A. 6,070 234 Eurobank Properties Real Estate Investment Co. 1,500 33 Lamda Development S.A. * 3,010 47 ---------- 314 ---------- HONG KONG - 7.8% Agile Property Holdings Ltd. 367,000 345 Champion REIT * 319,000 154 China Overseas Land & Investment Ltd. 839,000 1,126 China Resources Land Ltd. 306,000 366 Far East Consortium 241,000 118 Great Eagle Holdings Ltd. 70,000 202 GZI Real Estate Investment Trust 170,000 67 Hang Lung Properties Ltd. 503,000 1,261 Henderson Land Development Co. Ltd. 189,000 1,057 HKR International Ltd. 153,200 74 Hongkong Land Holdings Ltd. 418,000 1,664 Hopson Development Holdings Ltd. 92,000 260 Hysan Development Co. Ltd. 192,000 502 Kerry Properties Ltd. 119,000 556 Kowloon Development Co. Ltd. 89,000 158 Link REIT (The) 519,500 1,069 New World China Land Ltd. 265,400 161 New World Development Ltd. 663,000 1,335 Pacific Century Premium Developments Ltd. 217,000 62 Prosperity REIT 282,000 61
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED HONG KONG - 7.8% - (CONTINUED) Shanghai Real Estate Ltd. 312,000 $ 108 Shenzhen Investment Ltd. 326,000 136 Shui On Land Ltd. * 295,000 258 Sino Land Co. 546,000 1,275 Sun Hung Kai Properties Ltd. 453,000 5,204 ---------- 17,579 ---------- ITALY - 0.5% Aedes S.p.A. 17,791 144 Beni Stabili S.p.A. 309,282 494 Immobiliare Grande Distribuzione 26,797 131 Risanamento S.p.A. 26,105 283 ---------- 1,052 ---------- JAPAN - 11.2% Aeon Mall Co. Ltd. 2,600 147 Daibiru Corp. 12,800 139 Daikyo, Inc. * 20,000 103 Diamond City Co. Ltd. 3,300 148 Goldcrest Co Ltd. 3,160 163 Heiwa Real Estate Co. Ltd. 31,500 179 Japan Prime Realty Investment Corp. 128 465 Japan Real Estate Investment Corp. 100 1,076 Japan Retail Fund Investment Corp. 94 767 Kenedix Realty Investment Corp. 35 202 Mitsubishi Estate Co Ltd. 250,000 6,475 Mitsui Fudosan Co. Ltd. 214,000 5,228 Mori Trust Sogo REIT, Inc. 18 170 Nippon Building Fund, Inc. 124 1,648 Nippon Commercial Investment Corp. * 62 254 Nomura Real Estate Office Fund, Inc. 65 596 NTT Urban Development Corp. 371 718 Orix JREIT, Inc. 55 369 Premier Investment Co. 21 134 Shoei Co. Ltd. 6,200 171 Sumitomo Realty & Development Co. Ltd. 116,000 3,726 TOC Co. Ltd. 22,500 113 Tokyo Tatemono Co. Ltd. 58,000 647 Tokyu Land Corp. 98,000 925 Tokyu REIT, Inc. 32 280 United Urban Investment Corp. 41 270 ---------- 25,113 ---------- LUXEMBOURG - 0.2% GAGFAH S.A. 10,704 340 ----------
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS GLOBAL REAL ESTATE INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED NETHERLANDS - 2.4% Corio N.V. 16,303 $ 1,332 Eurocommercial Properties N.V. 8,566 428 Nieuwe Steen Investments Funds N.V. 8,467 250 Rodamco Europe N.V. 16,292 2,168 Vastned Offices/Industrial 4,668 183 Vastned Retail N.V. 4,044 411 Wereldhave N.V. 5,042 672 ---------- 5,444 ---------- NEW ZEALAND - 0.1% Kiwi Income Property Trust 172,466 187 ---------- NORWAY - 0.1% NorGani Hotels ASA * 9,050 107 Norwegian Property ASA * 17,160 179 ---------- 286 ---------- POLAND - 0.2% Globe Trade Centre S.A. * 25,764 357 ---------- SINGAPORE - 2.0% Allco Commercial Real Estate Investment Trust 111,000 80 Allgreen Properties Ltd. 130,000 111 Ascendas Real Estate Investment Trust 312,000 543 CapitaCommercial Trust 253,000 432 CapitaLand Ltd. 334,000 1,351 CapitaMall Trust 285,000 541 Fortune Real Estate Investment Trust 137,000 104 Guocoland Ltd. 78,000 132 Keppel Land Ltd. 88,000 396 Mapletree Logistics Trust 138,000 107 Singapore Land Ltd. 39,000 219 Suntec Real Estate Investment Trust 349,000 414 Wing Tai Holdings Ltd. 124,000 184 ---------- 4,614 ---------- SPAIN - 0.0% Renta Corp. Real Estate S.A. * 1,722 78 ---------- SWEDEN - 1.0% Castellum AB 41,700 556 Fabege AB 24,400 654 Hufvudstaden AB 19,200 218 Klovern AB 22,900 100 Kungsleden AB 33,000 506 Wihlborgs Fastigheter AB 9,300 194 ---------- 2,228 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED SWITZERLAND - 0.5% Allreal Holding A.G 1,159 $ 129 PSP Swiss Property A.G. * 11,362 668 Swiss Prime Site A.G. * 4,575 276 Zueblin Immobilien Holding A.G. * 7,666 74 ---------- 1,147 ---------- UNITED KINGDOM - 10.3% Assura Group Ltd. 56,397 236 Big Yellow Group PLC 20,500 283 British Land Co. PLC 125,645 4,217 Brixton PLC 65,420 738 Capital & Regional PLC 17,347 524 CLS Holdings PLC * 12,859 186 Daejan Holdings 1,119 127 Derwent London PLC 13,113 538 Development Securities PLC 9,305 127 Freeport PLC * 8,393 64 Grainger Trust PLC 23,382 318 Great Portland Estates PLC 39,706 539 Hammerson PLC 69,126 2,135 Helical Bar PLC 22,726 211 Invista Foundation Property Trust Ltd. 86 232 Land Securities Group PLC 112,746 5,128 Liberty International PLC 88,043 2,407 London Merchant Securities 59,180 354 Mapeley Ltd. 2,797 217 Marylebone Warwick Balfour Group PLC * 7,384 35 McKay Securities PLC 7,628 68 Minerva PLC * 38,606 306 Mucklow (A&J) Group PLC 5,229 52 Primary Health Properties PLC 5,417 57 Quintain Estates & Development PLC 31,619 529 Shaftesbury PLC 32,168 494 Slough Estates PLC 113,912 1,752 State Modwen Properties PLC 21,935 251 Town Centre Securities PLC 9,491 116 Unite Group PLC 29,651 318 Warner Estate Holdings PLC 9,439 160 Workspace Group PLC 42,498 414 ---------- 23,133 ---------- UNITED STATES - 41.8% Acadia Realty Trust 6,826 171 Affordable Residential Communities LP * 5,800 68
EQUITY INDEX FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED UNITED STATES - 41.8% - (CONTINUED) Agree Realty Corp. 1,184 $ 41 Alexander's, Inc. * 445 187 Alexandria Real Estate Equities, Inc. 7,387 742 AMB Property Corp. 22,280 1,306 American Campus Communities, Inc. 4,815 137 American Financial Realty Trust 33,170 379 Apartment Investment & Management Co. 24,230 1,357 Archstone-Smith Trust 54,020 3,144 Ashford Hospitality Trust, Inc. 15,770 196 Associated Estates Realty Corp. 2,469 34 AvalonBay Communities, Inc. 18,430 2,397 BioMed Realty Trust, Inc. 16,510 472 BNP Residential Properties, Inc. 1,510 36 Boston Properties, Inc. 28,890 3,232 Brandywine Realty Trust 22,255 740 BRE Properties, Inc. 12,686 825 Brookfield Properties Corp. 42,900 1,691 Camden Property Trust 13,830 1,021 CBL & Associates Properties, Inc. 16,504 715 Cedar Shopping Centers, Inc. 9,281 148 CentraCore Properties Trust 1,996 65 Colonial Properties Trust 11,310 530 Columbia Equity Trust, Inc. 2,131 41 Corporate Office Properties Trust SBI MD 10,536 532 Corrections Corp. of America * 14,993 678 Cousins Properties, Inc. 9,881 348 Crescent Real Estate EQT Co. 25,300 500 Developers Diversified Realty Corp. 27,280 1,717 DiamondRock Hospitality Co 19,576 353 Digital Realty Trust, Inc. 4,900 168 Douglas Emmett, Inc. 14,455 384 Duke Realty Corp. 33,604 1,374 EastGroup Properties, Inc. 5,478 293 Education Realty Trust, Inc. 4,920 73 Entertainment Properties Trust 6,720 393 Equity Inns, Inc. 12,010 192 Equity Lifestyle Properties, Inc. 5,455 297 Equity Office Properties Trust 86,480 4,166 Equity One, Inc. 8,373 223 Equity Residential 71,980 3,653 Essex Property Trust, Inc. 5,884 760 Extra Space Storage, Inc. 14,750 269
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED UNITED STATES - 41.8% - (CONTINUED) Federal Realty Invs Trust 13,606 $ 1,156 FelCor Lodging Trust, Inc. 15,860 346 First Industrial Realty Trust, Inc. 10,941 513 First Potomac Realty Trust 5,094 148 Forest City Enterprises, Inc. 18,683 1,091 General Growth Properties, Inc. 59,614 3,114 Getty Realty Corp. 3,828 118 Glimcher Realty Trust 8,030 214 Global Signal, Inc. 4,832 254 GMH Communities Trust 8,420 85 Health Care Property Investors, Inc. 49,280 1,814 Health Care REIT, Inc. 18,182 782 Healthcare Realty Trust, Inc. 11,802 467 Hersha Hospitality Trust 8,080 92 Highland Hospitality Corp. 13,262 189 Highwoods Properties, Inc. 14,247 581 Home Properties, Inc. 8,200 486 Hospitality Properties Trust 18,645 886 Host Hotels & Resorts, Inc. 128,010 3,143 HRPT Properties Trust 53,104 656 Inland Real Estate Corp. 15,673 293 Innkeepers USA Trust 9,580 148 Investors Real Estate Trust 9,576 98 Kilroy Realty Corp. 8,200 640 Kimco Realty Corp. 61,780 2,777 Kite Realty Group Trust 5,840 109 LaSalle Hotel Properties 9,892 454 Lexington Realty Trust 13,280 298 Liberty Property Trust 21,980 1,080 LTC Properties, Inc. 5,037 138 Macerich (The) Co. 17,870 1,547 Mack-Cali Realty Corp. 15,688 800 Maguire Properties, Inc. 11,610 464 Medical Properties Trust, Inc. 8,320 127 Mid-America Apartment Communities, Inc. 6,254 358 Mills (The) Corp. 12,999 260 National Health Investors, Inc. 6,060 200 National Healthcare Corp. 2,060 114 National Retail Properties, Inc. 15,094 346 Nationwide Health Properties, Inc. 21,400 647 New Plan Excel Realty Trust 26,296 723 Omega Healthcare Investors, Inc. 13,427 238
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS GLOBAL REAL ESTATE INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED UNITED STATES - 41.8% - (CONTINUED) Parkway Properties Inc/Md 3,190 $ 163 Pennsylvania Real Estate Investment Trust 9,394 370 Post Properties, Inc. 10,660 487 Prologis 61,150 3,716 PS Business Parks, Inc. 3,672 260 Public Storage, Inc. 31,575 3,079 Ramco-Gershenson Properties 3,582 137 Realty Income Corp. 25,064 694 Reckson Associates Realty Corp. 21,010 958 Regency Centers Corp. 17,100 1,337 Republic Property Trust 4,773 55 Saul Centers, Inc. 2,741 151 Senior Housing Properties Trust 19,371 474 Simon Property Group, Inc. 54,490 5,519 SL Green Realty Corp. 12,310 1,635 Sovran Self Storage, Inc. 4,619 265 Spirit Finance Corp. 22,893 285 Strategic Hotels & Resorts, Inc. 18,720 408 Sun Communities, Inc. 3,749 121 Sunstone Hotel Investors, Inc. 14,660 392 Tanger Factory Outlet Centers 7,080 277 Taubman Centers, Inc. 9,764 497 Trusteet Properties, Inc. 17,133 289 U-Store-It Trust 13,120 270 United Dominion Realty Trust, Inc. 33,180 1,055 Universal Health Realty Income Trust 2,314 90 Urstadt Biddle Properties, Inc. 3,519 67 Ventas, Inc. 26,038 1,102 Vornado Realty Trust 34,670 4,212 Washington Real Estate Investment Trust 11,320 453 Weingarten Realty Investors 21,447 989 Winston Hotels, Inc. 5,602 74 Winthrop Realty Trust 8,590 59 ---------- 93,982 ---------- TOTAL COMMON STOCKS (COST $203,586) 218,583 ---------- RIGHTS - 0.0% Allgreen Properties Ltd. * 52,000 23 ---------- TOTAL RIGHTS (COST $-) 23 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- INVESTMENT COMPANIES - 0.5% F&C Commercial Property Trust Ltd. 69 $ 178 ING UK Real Estate Income Trust Ltd. 77 177 Invesco UK Property Income Trust Ltd. 33 76 ISIS Property Ltd. 10 32 ISIS Property Trust 2 Ltd. 18 51 ProLogis European Properties 13 265 Sparkassen Immo Invest Genusscheine 1 68 Standard Life Investment Property Income Trust PLC 21 52 Teesland Advantage Property Income Trust Ltd. 30 67 UK Balanced Property Trust (The) Ltd. 44 121 Westbury Property Fund (The) Ltd. 21 67 ---------- TOTAL INVESTMENT COMPANIES (COST $1,145) 1,154 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 3.2% ING, Belgium, Brussels, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 7,184 7,184 ---------- TOTAL SHORT-TERM INVESTMENT (COST $7,184) 7,184 ---------- TOTAL INVESTMENTS - 100.9% (COST $211,915) 226,944 Liabilities less Other Assets - (0.9)% (2,020) ---------- NET ASSETS - 100.0% $ 224,924
* Non-Income Producing Security EQUITY INDEX FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED) At December 31, 2006, the industry sectors for the Global Real Estate Index Fund were:
% OF LONG-TERM INDUSTRY SECTOR INVESTMENTS --------------- -------------- Capital Markets 0.1% Commercial Service & Supply 0.3 Healthcare Providers & Services 0.1 Hotels Restaurants & Leisure 0.2 Household Durables 0.1 Industrial Conglomerates 6.7 Real Estate 0.2 Real Estate Investment Trusts 67.1 Real Estate Management/Development 25.2 ----- Total 100.0%
At December 31, 2006, the Global Real Estate Index Fund's investments were denominated in the following currencies:
% OF LONG-TERM CONCENTRATION BY CURRENCY INVESTMENTS ------------------------- -------------- U.S. Dollar 43.0% Japanese Yen 11.4 Australian Dollar 10.8 British Pound 10.9 Euro 9.4 Hong Kong Dollar 7.3 All other currencies less than 5% 7.2 ----- Total 100.0%
At December 31, 2006, the Global Real Estate Index Fund had outstanding forward foreign currency exchange contracts as follows:
AMOUNT AMOUNT CONTRACTS (LOCAL IN EXCHANGE (LOCAL UNREALIZED TO DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT GAIN (LOSS) CURRENCY (000S) CURRENCY (000S) DATE (000S) ---------- --------- ------------- --------- ---------- ----------- U.S. Australian Dollar 416 Dollar 527 1/2/07 $-- U.S. Danish Dollar 9 Krone 51 1/2/07 -- U.S. Dollar 326 Euro 248 1/2/07 1 U.S. Dollar 451 British Pound 230 1/2/07 (1) U.S. Hong Kong Dollar 273 Dollar 2,122 1/2/07 -- U.S. Swedish Dollar 47 Krona 323 1/2/07 --
AMOUNT AMOUNT CONTRACTS (LOCAL IN EXCHANGE (LOCAL UNREALIZED TO DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT GAIN (LOSS) CURRENCY (000S) CURRENCY (000S) DATE (000S) ---------- --------- ------------- --------- ---------- ----------- U.S. Swiss Dollar 13 Franc 16 1/3/07 $-- New U.S. Zealander Dollar 3 Dollar 4 1/3/07 -- U.S. Singaporean Dollar 30 Dollar 46 1/3/07 -- U.S. Australian Dollar 471 Dollar 597 1/4/07 -- U.S. British Dollar 443 Pound 226 1/4/07 -- U.S. Canadian Dollar 104 Dollar 121 1/4/07 -- U.S. Dollar 335 Euro 254 1/4/07 -- U.S. Hong Kong Dollar 235 Dollar 1,838 1/4/07 -- U.S. Japanese Dollar 62 Yen 7,372 1/4/07 -- U.S. Norwegian Dollar 8 Krone 50 1/4/07 -- U.S. Dollar 13 Polish Zlotty 38 1/4/07 -- U.S. Singaporean Dollar 58 Dollar 89 1/4/07 -- U.S. Swedish Dollar 37 Krona 253 1/4/07 -- U.S. Dollar 19 Swiss Franc 23 1/4/07 -- U.S. Japanese Dollar 429 Yen 51,053 1/5/07 1 --- Total $ 1
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $211,915 -------- Gross tax appreciation of investments $ 15,386 Gross tax depreciation of investments (357) -------- Net tax appreciation of investments $ 15,029 =======
NORTHERN FUNDS QUARTERLY REPORT 6 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% AUSTRALIA - 5.4% ABC Learning Centres Ltd. 32,533 $ 216 AGL Energy Ltd. * 37,767 482 Alinta Ltd. 55,594 519 Alumina Ltd. 124,910 625 Amcor Ltd. 87,168 499 AMP Ltd. 187,313 1,493 Ansell Ltd. 5,525 49 APN News & Media Ltd. 9,689 46 Aristocrat Leisure Ltd. 36,848 462 Australia & New Zealand Banking Group Ltd. 187,567 4,176 Australian Stock Exchange Ltd. 17,204 518 AXA Asia Pacific Holdings Ltd. 94,494 544 Babcock & Brown International Pty Ltd. 18,230 357 BHP Billiton Ltd. 354,681 7,083 Billabong International Ltd. 11,476 158 BlueScope Steel Ltd. 82,508 561 Boral Ltd. 62,943 379 Brambles Ltd. * 69,507 700 Brambles Ltd. * 88,229 893 Caltex Australia Ltd. 14,209 258 Centro Properties Group 81,176 583 CFS Retail Property Trust 177,633 327 CFS Retail Property Trust - New 5,466 10 Challenger Financial Services Group Ltd. 4,771 16 Coca-Cola Amatil Ltd. 55,716 341 Cochlear Ltd. 6,323 289 Coles Myer Ltd. 117,442 1,298 Commonwealth Bank of Australia 127,638 4,985 Commonwealth Property Office Fund 175,086 203 Computershare Ltd. 49,789 350 CSL Ltd. 19,803 1,022 CSR Ltd. 100,346 297 DB RREEF Trust 297,182 416 Downer EDI Ltd. 25,941 143 Foster's Group Ltd. 201,740 1,102 Futuris Corp. Ltd. 8,802 14 Goodman Fielder Ltd. 111,815 196 GPT Group 192,088 849 Harvey Norman Holdings Ltd. 52,028 156 Iluka Resources Ltd. 5,463 29 ING Industrial Fund 8,090 15 Insurance Australia Group Ltd. 175,380 879
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED AUSTRALIA - 5.4% - (CONTINUED) Investa Property Group 172,891 $ 343 John Fairfax Holdings Ltd. 102,261 390 Leighton Holdings Ltd. 12,263 196 Lend Lease Corp. Ltd. 38,890 566 Lion Nathan Ltd. 31,803 205 Macquarie Airports Management Ltd. 35,469 101 Macquarie Bank Ltd. 25,637 1,597 Macquarie Communications Infrastructure Group 34,451 171 Macquarie Goodman Group 150,060 900 Macquarie Infrastructure Group 269,192 735 Macquarie Office Trust 198,464 241 Mayne Pharma Ltd. 50,185 161 Mirvac Group 98,121 433 Multiplex Group 19,763 62 National Australia Bank Ltd. 161,141 5,138 Newcrest Mining Ltd. 36,032 749 OneSteel Ltd. 44,038 163 Orica Ltd. 34,780 667 Origin Energy Ltd. 88,733 579 Pacific Brands Ltd. 15,776 33 PaperlinX Ltd. 10,058 31 Perpetual Ltd. 4,700 290 Publishing & Broadcasting Ltd. 14,537 245 Qantas Airways Ltd. 104,098 429 QBE Insurance Group Ltd. 78,670 1,791 Rinker Group Ltd. 92,637 1,320 Rio Tinto Ltd. 29,375 1,723 Santos Ltd. 66,874 521 Sonic Healthcare Ltd. 33,298 391 Stockland 135,103 883 Stockland - New 4,169 26 Suncorp-Metway Ltd. 58,625 942 Sydney Roads Group 86,163 90 Symbion Health Ltd. 59,734 179 TABCORP Holdings Ltd. 56,224 748 Tattersall's Ltd. 70,586 218 Telstra Corp. Ltd. 302,396 988 Telstra Corp. Ltd. * 146,119 310 Toll Holdings Ltd. 58,197 839 Transurban Group 78,989 475 Wesfarmers Ltd. 38,215 1,132 Westfield Group 155,733 2,580
EQUITY INDEX FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED AUSTRALIA - 5.4% - (CONTINUED) Westpac Banking Corp. 188,462 $ 3,606 Woodside Petroleum Ltd. 49,300 1,483 Woolworths Ltd. 120,811 2,279 WorleyParsons Ltd. 14,321 241 Zinifex Ltd. 43,048 638 ---------- 71,366 ---------- AUSTRIA - 0.6% Andritz A.G. 1,030 223 BetandWin.com Interactive Entertainment A.G. * 1,650 35 Boehler-Uddeholm A.G 4,560 320 Erste Bank der Oesterreichischen Sparkassen A.G. 18,740 1,438 Flughafen Wien A.G. 530 52 Immoeast Immobilien Anlagen A.G. * 23,940 337 IMMOFINANZ Immobilien Anlagen A.G. * 45,894 654 Mayr-Melnhof Karton A.G. 420 79 Meinl European Land Ltd. * 21,290 547 OMV A.G. 16,680 947 Raiffeisen International Bank Holding A.G. 3,890 593 RHI A.G. * 400 20 Telekom Austria A.G. 40,340 1,081 Verbund - Oesterreichische Elektrizitaetswirtschafts A.G., Class A 7,790 416 Voestalpine A.G. 8,680 490 Wiener Staedtische Versicherung A.G. 3,360 236 Wienerberger A.G 8,280 492 ---------- 7,960 ---------- BELGIUM - 1.2% AGFA-Gevaert N.V. 11,074 283 Barco N.V. 789 72 Bekaert N.V. 1,703 213 Belgacom S.A. 16,543 729 Cofinimmo 483 97 Colruyt S.A. 1,700 363 Compagnie Maritime Belge S.A. 703 30 D'ieteren S.A. 176 63 Delhaize Group 7,471 623 Dexia 57,488 1,575 Euronav N.V. 766 23 Fortis 117,590 5,018 Groupe Bruxelles Lambert S.A. 7,389 888 InBev N.V. 18,388 1,213 KBC Groep N.V. 18,761 2,301
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED BELGIUM - 1.2% - (CONTINUED) Mobistar S.A. 3,255 $ 278 Omega Pharma S.A. 2,138 161 Solvay S.A., Class A 6,435 987 UCB S.A. 11,536 791 Umicore 2,638 449 ---------- 16,157 ---------- BERMUDA - 0.0% Frontline Ltd. 6,550 211 SeaDrill Ltd. * 24,300 410 ---------- 621 ---------- CHINA - 0.1% Foxconn International Holdings Ltd. * 208,000 681 ---------- DENMARK - 0.8% A.P. Moller - Maersk A/S 111 1,046 Bang & Olufsen A/S, Class B 1,176 152 Carlsberg A/S, Class B 3,800 378 Coloplast A/S, Class B 2,956 267 D/S Torm A/S 550 36 Danisco A/S 4,953 422 Danske Bank A/S 50,021 2,223 DSV A/S 2,114 386 East Asiatic Co. Ltd. A/S 1,740 97 FLSmidth & Co. A/S 4,311 274 GN Store Nord A/S 23,702 350 H. Lundbeck A/S 4,702 130 Jyske Bank (Registered) * 6,888 489 NKT Holding A/S 1,907 169 Novo-Nordisk A/S, Class B 24,118 2,009 Novozymes A/S, Class B 5,382 463 Sydbank A/S 2,886 138 Topdanmark A/S * 1,864 308 TrygVesta A/S 3,524 269 Vestas Wind Systems A/S * 18,552 784 William Demant Holding A/S * 2,811 228 ---------- 10,618 ---------- FINLAND - 1.4% Amer Sports OYJ 5,250 116 Cargotec Corp., Class B 3,920 218 Elisa OYJ, Class A 17,150 470 Fortum OYJ 43,800 1,247 KCI Konecranes OYJ 1,000 29 Kesko OYJ, Class B 6,800 359
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED FINLAND - 1.4% - (CONTINUED) Kone OYJ, Class B 8,740 $ 495 Metso OYJ 12,900 651 Neste Oil OYJ 12,650 385 Nokia OYJ 412,473 8,430 Nokian Renkaat OYJ 7,670 157 OKO Bank PLC, Class A 6,600 111 Orion Oyj * 8,600 187 Outokumpu OYJ 10,000 392 Rautaruukki OYJ 8,800 350 Sampo OYJ, Class A 44,332 1,187 Sanoma-WSOY OYJ 4,800 135 Stora Enso OYJ (Registered) 60,400 957 TietoEnator OYJ 8,300 268 UPM-Kymmene OYJ 52,400 1,323 Uponor OYJ 6,300 236 Wartsila OYJ, Class B 6,900 372 YIT OYJ 13,900 384 ---------- 18,459 ---------- FRANCE - 9.4% Accor S.A. 20,768 1,610 Air France-KLM 13,022 548 Air Liquide 12,273 2,915 Alcatel S.A. 234,160 3,370 Alstom RGPT * 11,259 1,527 Atos Origin S.A. * 7,253 430 AXA S.A. 168,521 6,824 BNP Paribas 83,818 9,146 Bouygues 20,727 1,331 Business Objects S.A. * 7,238 284 Cap Gemini S.A. 13,191 828 Carrefour S.A. 60,047 3,642 Casino Guichard Perrachon S.A. 4,086 380 Cie de Saint-Gobain 32,200 2,706 Cie Generale d'Optique Essilor International S.A. 9,796 1,053 CNP Assurances 4,420 494 Credit Agricole S.A. 59,319 2,495 Dassault Systemes S.A. 6,082 323 France Telecom S.A. 170,898 4,727 Gaz de France 20,277 933 Gecina S.A. 620 119 Groupe Danone 23,822 3,611 Hermes International 6,822 853
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED FRANCE - 9.4% - (CONTINUED) Imerys S.A. 2,766 $ 246 Klepierre 2,169 410 L'Oreal S.A. 29,294 2,936 Lafarge S.A. 15,054 2,240 Lagardere S.C.A. 12,598 1,015 LVMH Moet Hennessy Louis Vuitton S.A. 24,486 2,585 M6-Metropole Television 2,735 98 Michelin Compagnie Generale des Establissements, Class B 14,494 1,387 Neopost S.A. 3,044 382 PagesJaunes Groupe S.A. 13,903 277 Pernod-Ricard S.A. 7,732 1,776 Peugeot S.A. 15,517 1,028 PPR S.A. 6,833 1,021 Publicis Groupe 14,952 631 Renault S.A. 18,625 2,238 Safran S.A. 18,349 426 Sanofi-Aventis 102,657 9,481 Schneider Electric S.A. 22,780 2,529 SCOR 65,767 194 Societe BIC S.A. 2,621 183 Societe Des Autoroutes Paris-Rhin-Rhone 2,163 173 Societe Generale 37,262 6,327 Societe Television Francaise 1 12,912 479 Sodexho Alliance S.A. 9,243 580 Suez S.A. 101,567 5,261 Suez S.A. (Strip VVPR) * 8,460 -- Technip S.A. 9,854 677 Thales S.A. 8,048 401 Thomson 26,904 526 Total S.A. 219,859 15,864 Unibail 4,612 1,127 Valeo S.A. 5,559 231 Vallourec 3,921 1,140 Veolia Environment 29,248 2,255 Vinci S.A. 21,779 2,783 Vivendi S.A. 115,103 4,500 Zodiac S.A. 2,141 144 ---------- 123,700 ---------- GERMANY - 6.9% Adidas A.G. 20,340 1,013 Allianz A.G. (Registered) 43,475 8,883
EQUITY INDEX FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED GERMANY - 6.9% - (CONTINUED) Altana A.G. 7,441 $ 462 BASF A.G. 49,409 4,818 Bayer A.G. 73,502 3,946 Beiersdorf A.G. 5,631 365 Bilfinger & Berger A.G. 4,236 311 Celesio A.G. 8,338 447 Commerzbank A.G. 62,497 2,381 Continental A.G. 13,434 1,563 DaimlerChrysler A.G. (Registered) 91,624 5,661 Deutsche Bank A.G. (Registered) 52,414 7,013 Deutsche Boerse A.G. 10,273 1,891 Deutsche Lufthansa A.G. (Registered) 22,931 631 Deutsche Post A.G. (Registered) 77,180 2,327 Deutsche Postbank A.G. 7,911 668 Deutsche Telekom A.G. (Registered) 286,441 5,234 Douglas Holding A.G. 3,425 177 E.ON A.G. 62,809 8,527 Fresenius Medical Care A.G. & Co. KGaA 6,349 846 Heidelberger Druckmaschinen 6,784 321 Hochtief A.G. 4,794 349 Hypo Real Estate Holding A.G. 13,553 854 Infineon Technologies A.G. * 75,936 1,071 IVG Immobilien A.G. 8,153 350 KarstadtQuelle A.G. * 5,818 169 Linde A.G. 10,856 1,122 MAN A.G. 12,710 1,149 Merck KGaA 5,204 540 Metro A.G. 15,831 1,010 MLP A.G. 4,394 87 Muenchener Rueckversicherungs A.G. (Registered) 20,766 3,576 Premiere A.G. * 5,149 86 Puma A.G. Rudolf Dassler Sport 1,253 489 Rheinmetall A.G. 4,080 310 RWE A.G. 44,960 4,957 Salzgitter A.G. 3,951 517 SAP A.G. 89,664 4,766 Siemens A.G. (Registered) 84,793 8,412 Solarworld A.G. 1,263 79 Suedzucker A.G. 5,958 144 ThyssenKrupp A.G. 36,077 1,700 TUI A.G. 22,692 454 Volkswagen A.G. 16,842 1,910
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED GERMANY - 6.9% - (CONTINUED) Wincor Nixdorf A.G. 1,705 $ 265 ---------- 91,851 ---------- GREECE - 0.6% Alpha Bank A.E. 38,358 1,160 Coca Cola Hellenic Bottling Co. S.A. 10,950 428 Cosmote Mobile Communications S.A. 11,450 338 EFG Eurobank Ergasias S.A. 23,028 834 Folli-Follie S.A. (Registered) 320 13 Hellenic Exchanges Holding S.A. 2,050 38 Hellenic Petroleum S.A. 12,050 166 Hellenic Technodomiki Tev S.A. 14,160 158 Hellenic Telecommunications Organization S.A. * 31,780 955 Intracom Holdings S.A. (Registered) * 8,080 55 Motor Oil Hellas Corinth Refineries S.A. 2,130 55 National Bank of Greece S.A. 38,060 1,754 OPAP S.A. 22,370 865 Piraeus Bank S.A. 21,522 694 Public Power Corp. 10,340 262 Technical Olympic S.A. 5,810 19 Titan Cement Co. S.A. 5,770 315 Viohalco 11,820 147 ---------- 8,256 ---------- HONG KONG - 1.7% ASM Pacific Technology 20,000 111 Bank of East Asia Ltd. 150,000 850 BOC Hong Kong Holdings Ltd. 378,000 1,025 Cathay Pacific Airways Ltd. 112,000 276 Cheung Kong Holdings Ltd. 156,000 1,921 Cheung Kong Infrastructure Holdings Ltd. 45,000 140 CLP Holdings Ltd. 190,000 1,405 Esprit Holdings Ltd. 104,000 1,161 Giordano International Ltd. 46,000 25 Hang Lung Properties Ltd. 253,000 634 Hang Seng Bank Ltd. 75,700 1,035 Henderson Land Development Co. Ltd. 93,000 520 Hong Kong & China Gas Co. Ltd. 359,000 808 Hong Kong Electric Holdings Ltd. 137,500 674 Hong Kong Exchanges and Clearing Ltd. 112,000 1,231 Hopewell Holdings Ltd. 70,000 246 Hutchison Telecommunications International Ltd. * 169,000 426 Hutchison Whampoa Ltd. 216,000 2,195
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED HONG KONG - 1.7% - (CONTINUED) Hysan Development Co. Ltd. 73,140 $ 191 Johnson Electric Holdings Ltd. 157,000 108 Kerry Properties Ltd. 11,000 51 Kingboard Chemicals Holdings Ltd. 57,000 224 Li & Fung Ltd. 224,800 699 Link REIT (The) 231,500 476 Melco International Development 45,000 107 MTR Corp. 152,672 384 New World Development Ltd. 288,844 582 Noble Group Ltd. 122,000 87 Orient Overseas International Ltd. 4,200 27 PCCW Ltd. 389,000 237 Shangri-La Asia Ltd. 142,000 366 Sino Land Co. 172,866 404 Solomon Systech International Ltd. 70,000 11 Sun Hung Kai Properties Ltd. 137,000 1,574 Swire Pacific Ltd., Class A 93,000 999 Techtronic Industries Co. 117,000 152 Television Broadcasts Ltd. 32,000 195 Wharf Holdings Ltd. 133,000 492 Wing Hang Bank Ltd. 11,000 129 Yue Yuen Industrial Holdings 56,000 178 ---------- 22,356 ---------- IRELAND - 1.0% Allied Irish Banks PLC 86,572 2,572 Bank of Ireland 98,986 2,287 C&C Group PLC 34,715 617 CRH PLC 55,693 2,319 DCC PLC 8,545 291 Depfa Bank PLC 35,716 639 Elan Corp. PLC * 43,123 612 Experian Group Ltd. 105,026 1,233 Fyffes PLC 18,793 44 Grafton Group PLC * 22,557 375 Greencore Group PLC 3,313 21 Iaws Group PLC 11,959 306 Independent News & Media PLC 65,416 260 Irish Life & Permanent PLC 27,212 751 Kerry Group PLC, Class A 14,208 355 Kingspan Group PLC 13,790 365 Paddy Power PLC 1,666 33
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED IRELAND - 1.0% - (CONTINUED) Ryanair Holdings PLC ADR * 2,685 $ 219 ---------- 13,299 ---------- ITALY - 3.8% Alleanza Assicurazioni S.p.A. 44,909 599 Arnoldo Mondadori Editore S.p.A. 13,201 138 Assicurazioni Generali S.p.A. 97,388 4,278 Autogrill S.p.A. 12,161 224 Autostrade S.p.A. 28,635 824 Banca Intesa S.p.A. 399,616 3,086 Banca Intesa S.p.A. (RNC) 95,517 697 Banca Monte dei Paschi di Siena S.p.A. 108,111 700 Banca Popolare di Milano Scrl 42,260 734 Banche Popolari Unite Scpa 35,505 976 Banco Popolare di Verona e Novara Scrl 37,358 1,073 Benetton Group S.p.A. 3,286 63 Bulgari S.p.A. 15,522 220 Capitalia S.p.A. 168,393 1,594 Enel S.p.A. 433,474 4,473 ENI S.p.A. 263,155 8,853 Fiat S.p.A. * 55,372 1,059 Finmeccanica S.p.A. 30,536 828 Fondiaria-Sai S.p.A. 4,196 201 Gruppo Editoriale L'Espresso S.p.A. 6,978 38 Italcementi S.p.A. 5,715 161 Lottomatica S.p.A. 4,082 170 Luxottica Group S.p.A. 14,669 451 Mediaset S.p.A. 77,613 921 Mediobanca S.p.A. 50,779 1,199 Mediolanum S.p.A. 26,828 219 Pirelli & C. S.p.A. 309,841 309 Sanpaolo IMI S.p.A. 110,024 2,557 Seat Pagine Gialle S.p.A. 426,520 254 Snam Rete Gas S.p.A. 104,887 595 Telecom Italia S.p.A. 1,091,819 3,301 Telecom Italia S.p.A. (RNC) 596,840 1,514 Terna S.p.A. 126,393 428 Tiscali S.p.A. * 14,246 47 UniCredito Italiano S.p.A. (Milan Exchange) 779,444 6,833 ---------- 49,617 ---------- JAPAN - 22.0% 77 Bank (The) Ltd. 18,000 114 Access Co. Ltd. * 11 51
EQUITY INDEX FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Acom Co. Ltd. 7,840 $ 264 Aderans Co. Ltd. 2,400 60 Advantest Corp. 16,400 941 Aeon Co. Ltd. 63,800 1,382 Aeon Credit Service Co. Ltd. 9,100 173 Aiful Corp. 8,650 244 Aisin Seiki Co Ltd. 20,300 681 Ajinomoto Co., Inc. 62,000 820 Alfresa Holdings Corp. 2,000 121 All Nippon Airways Co. Ltd. 70,000 248 Alps Electric Co. Ltd. 18,600 202 Amada Co. Ltd. 40,000 424 Amano Corp. 3,500 44 Aoyama Trading Co. Ltd. 6,200 186 Arrk Corp. 7,000 106 Asahi Breweries Ltd. 37,100 594 Asahi Glass Co. Ltd. 98,000 1,179 Asahi Kasei Corp. 123,000 806 Asatsu-DK, Inc. 3,200 102 Astellas Pharma, Inc. 54,000 2,457 Autobacs Seven Co. Ltd. 2,400 88 Bank of Fukuoka (The) Ltd. 61,000 445 Bank of Kyoto (The) Ltd. 29,000 271 Bank of Yokohama (The) Ltd. 121,000 948 Benesse Corp. 7,400 282 Bridgestone Corp. 62,600 1,398 Canon Marketing Japan, Inc. 8,000 182 Canon, Inc. 107,700 6,068 Casio Computer Co. Ltd. 24,700 561 Central Glass Co Ltd. 12,000 69 Central Japan Railway Co. 160 1,669 Chiba Bank (The) Ltd. 78,000 660 Chiyoda Corp. 15,000 294 Chubu Electric Power Co., Inc. 67,800 2,030 Chugai Pharmaceutical Co. Ltd. 27,700 572 Circle K Sunkus Co. Ltd. 2,000 36 Citizen Watch Co. Ltd. 40,000 306 Coca-Cola West Holdings Co. Ltd. 4,700 109 COMSYS Holdings Corp. 13,000 144 Credit Saison Co. Ltd. 16,100 555 CSK Holdings Corp. 6,900 295 Dai Nippon Printing Co. Ltd. 65,000 1,005
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Daicel Chemical Industries Ltd. 33,000 $ 233 Daido Steel Co. Ltd. 38,000 253 Daiichi Sankyo Co Ltd. 74,600 2,334 Daikin Industries Ltd. 23,500 818 Daimaru (The), Inc. 24,000 326 Dainippon Ink & Chemicals, Inc. 73,000 285 Dainippon Screen Manufacturing Co. Ltd. 23,000 207 Daito Trust Construction Co. Ltd. 9,000 413 Daiwa House Industry Co. Ltd. 53,000 923 Daiwa Securities Group, Inc. 130,000 1,460 Denki Kagaku Kogyo KK 52,000 216 Denso Corp. 49,600 1,969 Dentsu, Inc. 181 531 Dowa Mining Co. Ltd. 30,000 257 E*Trade Securities Co. Ltd. 124 118 eAccess Ltd. 14 8 East Japan Railway Co. 346 2,313 Ebara Corp. 46,000 176 EDION Corp. 3,000 45 Eisai Co. Ltd. 25,200 1,386 Electric Power Development Co. 15,800 696 Elpida Memory, Inc. * 10,000 550 FamilyMart Co. Ltd. 7,400 202 Fanuc Ltd. 18,400 1,814 Fast Retailing Co. Ltd. 5,400 516 Fuji Electric Holdings Co. Ltd. 59,000 320 Fuji Photo Film Co. Ltd. 49,900 2,052 Fuji Soft ABC, Inc. 1,900 45 Fuji Television Network, Inc. 64 146 Fujikura Ltd. 38,000 335 Fujitsu Ltd. 184,000 1,445 Furukawa Electric (The) Co. Ltd. 63,000 396 Glory Ltd. 6,000 106 Goodwill Group, Inc. (The) 61 50 Gunma Bank (The) Ltd. 40,000 241 Hakuhodo DY Holdings, Inc. 2,770 180 Hankyu Hanshin Holdings, Inc. 124,800 714 Haseko Corp. * 87,000 312 Hikari Tsushin, Inc. 2,200 97 Hino Motors Ltd. 25,000 129 Hirose Electric Co. Ltd. 3,200 364 Hitachi Chemical Co. Ltd. 11,800 325
NORTHERN FUNDS QUARTERLY REPORT 6 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Hitachi Construction Machinery Co. Ltd. 11,000 $ 296 Hitachi High-Technologies Corp. 8,000 238 Hitachi Ltd. 333,000 2,078 Hokkaido Electric Power Co., Inc. 18,800 481 Hokuhoku Financial Group, Inc. 119,000 436 Honda Motor Co. Ltd. 157,500 6,225 House Foods Corp. 9,000 149 Hoya Corp. 41,700 1,627 Ibiden Co. Ltd. 13,800 696 Index Holdings 114 67 Inpex Holdings, Inc. * 86 707 Isetan Co. Ltd. 21,300 385 Ishikawajima-Harima Heavy Industries Co. Ltd. 126,000 427 Ito En Ltd. 6,500 199 Itochu Corp. 155,000 1,274 Itochu Techno-Science Corp. 3,000 160 Jafco Co. Ltd. 3,600 178 Japan Airlines Corp. * 66,000 118 Japan Prime Realty Investment Corp. 20 73 Japan Real Estate Investment Corp. 37 398 Japan Retail Fund Investment Corp. 40 326 Japan Steel Works Ltd. 39,000 305 Japan Tobacco, Inc. 457 2,210 JFE Holdings, Inc. 56,700 2,923 JGC Corp. 22,000 378 Joyo Bank (The) Ltd. 74,000 409 JS Group Corp. 27,000 569 JSR Corp. 19,000 492 JTEKT Corp. 19,700 418 Kajima Corp. 96,000 421 Kamigumi Co. Ltd. 26,000 213 Kaneka Corp. 32,000 292 Kansai Electric Power Co., Inc. 77,100 2,081 Kansai Paint Co. Ltd. 27,000 214 Kao Corp. 49,000 1,323 Katokichi Co Ltd. 3,500 28 Kawasaki Heavy Industries Ltd. 129,000 485 Kawasaki Kisen Kaisha Ltd. 56,000 438 KDDI Corp. 244 1,656 Keihin Electric Express Railway Co. Ltd. 47,000 324 Keio Corp. 58,000 376 Keisei Electric Railway Co. Ltd. 29,000 165
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Keyence Corp. 3,800 $ 942 Kikkoman Corp. 16,000 193 Kinden Corp. 10,000 81 Kintetsu Corp. 162,000 473 Kirin Brewery Co. Ltd. 79,000 1,243 Kobe Steel Ltd. 283,000 971 Kokuyo Co. Ltd. 10,000 158 Komatsu Ltd. 91,900 1,866 Komori Corp. 1,000 19 Konami Corp. 10,100 306 Konica Minolta Holdings, Inc. * 47,500 671 Kose Corp. 2,800 85 Kubota Corp. 112,000 1,038 Kuraray Co. Ltd. 39,000 460 Kurita Water Industries Ltd. 13,000 281 Kyocera Corp. 16,700 1,576 Kyowa Hakko Kogyo Co. Ltd. 34,000 291 Kyushu Electric Power Co., Inc. 38,000 1,003 Lawson, Inc. 6,700 240 Leopalace21 Corp. 13,700 438 Mabuchi Motor Co. Ltd. 2,200 131 Makita Corp. 11,700 359 Marubeni Corp. 152,000 772 Marui Co. Ltd. 32,000 374 Matsui Securities Co. Ltd. 8,600 65 Matsumotokiyoshi Co. Ltd. 3,300 73 Matsushita Electric Industrial Co. Ltd. 199,000 3,975 Matsushita Electric Works Ltd. 34,000 394 Mediceo Paltac Holdings Co. Ltd. 18,200 345 Meiji Dairies Corp. 27,000 213 Meiji Seika Kaisha Ltd. 34,000 163 Meitec Corp. 3,200 97 Millea Holdings, Inc. 72,400 2,557 Minebea Co. Ltd. 40,000 280 Mitsubishi Chemical Holdings Corp. 117,500 741 Mitsubishi Corp. 137,300 2,586 Mitsubishi Electric Corp. 197,000 1,799 Mitsubishi Estate Co. Ltd. 118,000 3,056 Mitsubishi Gas Chemical Co., Inc. 41,000 429 Mitsubishi Heavy Industries Ltd. 329,000 1,497 Mitsubishi Logistics Corp. 3,000 47 Mitsubishi Materials Corp. 104,000 391
EQUITY INDEX FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Mitsubishi Rayon Co. Ltd. 57,000 $ 383 Mitsubishi UFJ Financial Group, Inc. 867 10,718 Mitsubishi UFJ Securities Co. 28,000 311 Mitsui & Co. Ltd. 158,000 2,365 Mitsui Chemicals, Inc. 68,000 524 Mitsui Engineering & Shipbuilding Co. Ltd. 82,000 267 Mitsui Fudosan Co. Ltd. 85,000 2,077 Mitsui Mining & Smelting Co. Ltd. 62,000 311 Mitsui O.S.K. Lines Ltd. 109,000 1,076 Mitsui Sumitomo Insurance Co. Ltd. 121,000 1,325 Mitsui Trust Holdings, Inc. 71,000 816 Mitsukoshi Ltd. 45,000 211 Mizuho Financial Group, Inc. 958 6,848 Murata Manufacturing Co. Ltd. 20,800 1,408 Namco Bandai Holdings, Inc. 23,000 338 NEC Corp. 210,000 1,005 NEC Electronics Corp. * 2,800 82 NET One Systems Co. Ltd. 61 81 NGK Insulators Ltd. 29,000 448 NGK Spark Plug Co. Ltd. 18,000 339 NHK Spring Co. Ltd. 17,000 179 Nichirei Corp. 28,000 157 Nidec Corp. 11,300 874 Nikko Cordial Corp. 83,000 953 Nikon Corp. 31,000 680 Nintendo Co. Ltd. 10,000 2,599 Nippon Building Fund, Inc. 49 651 Nippon Electric Glass Co. Ltd. 22,000 463 Nippon Express Co. Ltd. 85,000 465 Nippon Meat Packers, Inc. 20,000 219 Nippon Mining Holdings, Inc. 88,500 637 Nippon Oil Corp. 126,000 843 Nippon Paper Group, Inc. 96 362 Nippon Sheet Glass Co. Ltd. 45,000 211 Nippon Shokubai Co. Ltd. 3,000 32 Nippon Steel Corp. 622,000 3,578 Nippon Telegraph & Telephone Corp. 515 2,538 Nippon Yusen Kabushiki Kaisha 106,000 776 Nishi-Nippon City Bank (The) Ltd. 45,000 194 Nissan Chemical Industries Ltd. 18,000 224 Nissan Motor Co. Ltd. 229,500 2,766 Nisshin Seifun Group, Inc. 21,500 222
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Nisshin Steel Co. Ltd. 97,000 $ 361 Nisshinbo Industries, Inc. 17,000 176 Nissin Food Products Co. Ltd. 8,900 330 Nitori Co Ltd. 4,400 191 Nitto Denko Corp. 16,500 827 NOK Corp. 12,300 242 Nomura Holdings, Inc. 179,500 3,389 Nomura Real Estate Office Fund, Inc. 28 257 Nomura Research Institute Ltd. 2,500 363 NSK Ltd. 48,000 474 NTN Corp. 43,000 386 NTT Data Corp. 127 637 NTT DoCoMo, Inc. 1,888 2,985 NTT Urban Development Corp. 95 184 Obayashi Corp. 68,000 441 Obic Co. Ltd. 790 164 Odakyu Electric Railway Co. Ltd. 68,000 435 OJI Paper Co. Ltd. 80,000 425 Oki Electric Industry Co. Ltd. 50,000 111 Okuma Corp. 12,000 139 Okumura Corp. 13,000 64 Olympus Corp. 24,000 755 Omron Corp. 22,400 637 Onward Kashiyama Co. Ltd. 16,000 204 Oracle Corp. Japan 3,600 167 Oriental Land Co. Ltd. 5,600 293 ORIX Corp. 9,120 2,642 Osaka Gas Co. Ltd. 201,000 749 Otsuka Corp. 1,900 193 Park24 Co. Ltd. 5,400 69 Pioneer Corp. 17,400 239 Promise Co. Ltd. 8,650 269 QP Corp. 5,000 43 Rakuten, Inc. * 692 323 Resona Holdings, Inc. 468 1,279 Ricoh Co. Ltd. 67,000 1,369 Rohm Co. Ltd. 11,000 1,096 Round One Corp. 5 15 Ryohin Keikaku Co. Ltd. 2,800 215 Sanken Electric Co. Ltd. 10,000 124 Sankyo Co. Ltd. 5,800 321 Santen Pharmaceutical Co. Ltd. 6,000 169
NORTHERN FUNDS QUARTERLY REPORT 8 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Sanwa Shutter Corp. 8,000 $ 47 Sanyo Electric Co. Ltd. * 178,000 226 Sapporo Hokuyo Holdings, Inc. 29 280 Sapporo Holdings Ltd. 31,000 177 SBI Holdings, Inc. 961 324 Secom Co. Ltd. 21,700 1,126 Sega Sammy Holdings, Inc. 18,600 502 Seiko Epson Corp. 13,200 321 Seino Holdings Corp. 12,000 113 Sekisui Chemical Co. Ltd. 49,000 391 Sekisui House Ltd. 53,000 772 Seven & I Holdings Co. Ltd. 82,100 2,555 SFCG Co. Ltd. 330 51 Sharp Corp. 102,000 1,758 Shimachu Co. Ltd. 2,600 75 Shimamura Co. Ltd. 2,300 264 Shimano, Inc. 8,700 252 Shimizu Corp. 65,000 325 Shin-Etsu Chemical Co. Ltd. 39,500 2,648 Shinko Electric Industries 2,500 65 Shinko Securities Co. Ltd. 51,000 198 Shinsei Bank Ltd. 162,000 954 Shionogi & Co. Ltd. 31,000 610 Shiseido Co. Ltd. 36,000 781 Shizuoka Bank (The) Ltd. 58,000 576 Showa Denko K.K. 111,000 426 Showa Shell Sekiyu K.K. 16,200 181 SMC Corp. of Japan 5,400 767 Softbank Corp. 74,000 1,441 Sojitz Corp. * 45,900 140 Sompo Japan Insurance, Inc. 84,000 1,028 Sony Corp. 101,400 4,349 Stanley Electric Co. Ltd. 16,700 335 Sumco Corp. 5,400 457 Sumitomo Bakelite Co. Ltd. 22,000 152 Sumitomo Chemical Co. Ltd. 149,000 1,157 Sumitomo Corp. 109,000 1,633 Sumitomo Electric Industries Ltd. 72,900 1,140 Sumitomo Heavy Industries Ltd. 60,000 631 Sumitomo Metal Industries Ltd. 418,000 1,817 Sumitomo Metal Mining Co. Ltd. 56,000 719 Sumitomo Mitsui Financial Group, Inc. 620 6,361
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Sumitomo Realty & Development Co. Ltd. 38,000 $ 1,221 Sumitomo Rubber Industries, Inc. 18,800 243 Sumitomo Trust & Banking (The) Co. Ltd. 129,000 1,354 Suruga Bank (The) Ltd. 15,000 186 Suzuken Co. Ltd. 6,800 256 T&D Holdings, Inc. 23,100 1,529 Taiheiyo Cement Corp. 97,000 380 Taisei Corp. 104,000 317 Taisho Pharmaceutical Co. Ltd. 16,000 291 Taiyo Nippon Sanso Corp. 31,000 279 Taiyo Yuden Co. Ltd. 10,000 177 Takara Holdings, Inc. 19,000 123 Takashimaya Co. Ltd. 27,000 382 Takeda Pharmaceutical Co. Ltd. 89,500 6,149 Takefuji Corp. 11,750 465 Tanabe Seiyaku Co Ltd. 25,000 327 TDK Corp. 12,700 1,010 Teijin Ltd. 84,000 518 Terumo Corp. 17,100 673 THK Co. Ltd. 13,100 338 TIS, Inc. 4,100 97 Tobu Railway Co. Ltd. 84,000 406 Toho Co. Ltd. of Tokyo 15,100 273 Tohoku Electric Power Co., Inc. 42,300 1,058 Tokuyama Corp. 25,000 381 Tokyo Broadcasting System, Inc. 2,000 67 Tokyo Electric Power Co., Inc. 121,500 3,934 Tokyo Electron Ltd. 16,300 1,286 Tokyo Gas Co. Ltd. 223,000 1,187 Tokyo Seimitsu Co. Ltd. 4,000 189 Tokyo Steel Manufacturing Co. Ltd. 11,900 187 Tokyo Tatemono Co. Ltd. 31,000 346 Tokyu Corp. 106,000 679 Tokyu Land Corp. 43,000 406 TonenGeneral Sekiyu KK 32,000 317 Toppan Printing Co. Ltd. 58,000 641 Toray Industries, Inc. 134,000 1,005 Toshiba Corp. 296,000 1,929 Tosoh Corp. 51,000 226 Toto Ltd. 30,000 301 Toyo Seikan Kaisha Ltd. 18,000 298 Toyo Suisan Kaisha Ltd. 9,000 144
EQUITY INDEX FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED JAPAN - 22.0% - (CONTINUED) Toyobo Co. Ltd. 67,000 $ 202 Toyota Industries Corp. 20,300 934 Toyota Motor Corp. 290,700 19,460 Toyota Tsusho Corp. 19,500 523 Trend Micro, Inc. * 10,500 308 Ube Industries Ltd. of Japan 97,000 279 Uni-Charm Corp. 4,800 285 UNY Co. Ltd. 17,000 222 Ushio, Inc. 12,000 247 USS Co. Ltd. 2,950 192 Wacoal Holdings Corp. 9,000 122 West Japan Railway Co. 170 728 Yahoo! Japan Corp. 1,514 604 Yakult Honsha Co. Ltd. 11,500 331 Yamada Denki Co. Ltd. 8,900 756 Yamaha Corp. 19,000 403 Yamaha Motor Co. Ltd. 20,000 629 Yamato Holdings Co. Ltd. 38,000 585 Yamazaki Baking Co. Ltd. 5,000 49 Yaskawa Electric Corp. 21,000 243 Yokogawa Electric Corp. 22,000 349 Zeon Corp. 20,000 216 ---------- 291,104 ---------- LUXEMBOURG - 0.0% Oriflame Cosmetics S.A. SDR 3,300 136 ---------- NETHERLANDS - 5.5% ABN AMRO Holding N.V. 183,734 5,907 Aegon N.V. 143,705 2,740 Akzo Nobel N.V. 27,231 1,661 ASML Holding N.V. * 47,962 1,193 Buhrmann N.V. 9,280 138 Corio N.V. 4,263 348 Euronext N.V. 9,040 1,068 European Aeronautic Defence & Space Co. N.V. 32,812 1,131 Fugro N.V. - CVA 5,045 241 Getronics N.V. 9,032 73 Hagemeyer N.V. * 45,629 231 Heineken N.V. 24,264 1,154 ING Groep N.V. - CVA 189,348 8,397 James Hardie Industries N.V. 52,064 395 Koninklijke Ahold N.V. * 160,462 1,708 Koninklijke DSM N.V. 16,028 792
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED NETHERLANDS - 5.5% - (CONTINUED) Koninklijke Philips Electronics N.V. 118,489 $ 4,470 Mittal Steel Co. N.V. 68,747 2,903 OCE N.V. 5,837 95 Qiagen N.V. * 10,722 165 Randstad Holdings N.V. 4,892 338 Reed Elsevier N.V. 72,672 1,240 Rodamco Europe N.V. 5,327 709 Royal Dutch Shell PLC, Class A 378,521 13,230 Royal Dutch Shell PLC, Class B 277,322 9,720 Royal KPN N.V. 191,768 2,727 Royal Numico N.V. 17,895 963 SBM Offshore N.V. 14,260 490 TNT N.V. 42,876 1,844 Unilever N.V. - CVA 173,336 4,737 Vedior N.V. - CVA 17,874 371 Wereldhave N.V. 1,703 227 Wolters Kluwer N.V. 30,060 865 ---------- 72,271 ---------- NEW ZEALAND - 0.2% Auckland International Airport Ltd. 98,119 151 Contact Energy Ltd. 30,439 179 Fisher & Paykel Appliances Holdings Ltd. 29,635 80 Fisher & Paykel Healthcare Corp. 53,015 159 Fletcher Building Ltd. 47,396 369 Kiwi Income Property Trust 75,449 82 Sky City Entertainment Group Ltd. 45,275 164 Sky Network Television Ltd. 22,190 102 Telecom Corp. of New Zealand Ltd. 201,542 690 Tower Ltd. * 10,241 16 Vector Ltd. 24,079 43 Warehouse Group Ltd. 7,332 37 ---------- 2,072 ---------- NORWAY - 0.8% Aker Kvaerner ASA 3,400 424 DNB Nor ASA 69,200 982 Norsk Hydro ASA 71,400 2,216 Norske Skogindustrier ASA 18,771 324 Orkla ASA 19,150 1,084 PAN Fish ASA * 205,000 187 Petroleum Geo-Services ASA * 18,450 434 ProSafe ASA 19,500 277 Schibsted ASA 3,850 138
NORTHERN FUNDS QUARTERLY REPORT 10 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED NORWAY - 0.8% - (CONTINUED) Statoil ASA 68,100 $ 1,805 Storebrand ASA 24,700 314 Tandberg ASA 12,050 182 Tandberg Television ASA * 6,550 82 Telenor ASA 77,600 1,459 TGS Nopec Geophysical Co ASA * 11,000 228 Tomra Systems ASA 22,050 152 Yara International ASA 22,100 503 ---------- 10,791 ---------- PORTUGAL - 0.3% Banco BPI S.A. (Registered) 32,824 256 Banco Comercial Portugues S.A. (Registered) 215,673 797 Banco Espirito Santo S.A. (Registered) 18,601 335 Brisa-Auto Estradas de Portugal S.A. 33,607 419 Cimpor Cimentos de Portugal S.A. 20,691 172 Energias de Portugal S.A. 201,458 1,021 Jeronimo Martins 1,503 34 Portugal Telecom, SGPS, S.A. (Registered) 82,014 1,066 PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS S.A. 8,050 104 Sonae Industria SGPS S.A. * 5,252 52 Sonae SGPS S.A. 92,494 184 ---------- 4,440 ---------- SINGAPORE - 0.9% Ascendas Real Estate Investment Trust 99,200 173 CapitaCommercial Trust 62,000 106 CapitaLand Ltd. 141,000 570 CapitaMall Trust 89,000 169 Chartered Semiconductor Manufacturing Ltd. * 115,000 96 City Developments Ltd. 49,000 406 ComfortDelgro Corp. Ltd. 195,000 205 Cosco Corp. Singapore Ltd. 78,000 117 Creative Technology Ltd. 4,000 27 DBS Group Holdings Ltd. 116,000 1,710 Fraser and Neave Ltd. 85,000 249 Jardine Cycle & Carriage Ltd. 12,283 119 Keppel Corp. Ltd. 55,000 631 Keppel Land Ltd. 46,000 207 Neptune Orient Lines Ltd. 53,000 72 Olam International Ltd. 66,000 92 Oversea-Chinese Banking Corp. 249,400 1,252 Parkway Holdings Ltd. 64,050 131
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED SINGAPORE - 0.9% - (CONTINUED) SembCorp Industries Ltd. 101,600 $ 254 SembCorp Marine Ltd. 61,000 135 Singapore Airlines Ltd. 56,000 639 Singapore Exchange Ltd. 79,000 294 Singapore Land Ltd. 6,000 34 Singapore Post Ltd. 138,000 98 Singapore Press Holdings Ltd. 151,000 421 Singapore Technologies Engineering Ltd. 136,000 273 Singapore Telecommunications Ltd. 710,600 1,520 STATS ChipPAC Ltd. * 131,000 100 Suntec Real Estate Investment Trust 113,000 134 United Overseas Bank Ltd. 115,000 1,455 UOL Group Ltd. 58,700 166 Venture Corp. Ltd. 27,000 238 Want Want Holdings Ltd. 50,000 81 Wing Tai Holdings Ltd. 12,000 18 ---------- 12,192 ---------- SPAIN - 4.0% Abertis Infraestructuras S.A. 22,745 676 Acciona S.A. 2,865 534 Acerinox S.A. 20,688 630 ACS Actividades Cons y Serv 24,465 1,380 Aguas de Barcelona * 22 1 Altadis S.A. 27,046 1,416 Antena 3 de Television S.A. 8,682 205 Banco Bilbao Vizcaya Argentaria S.A. 357,185 8,602 Banco Popular Espanol S.A. 85,228 1,545 Banco Santander Central Hispano S.A. 594,303 11,095 Cintra Concesiones de Infraestructuras de Transporte S.A. 23,049 386 Corp. Mapfre S.A. 60,555 273 Ebro Puleva S.A. 6,195 157 Endesa S.A. 75,571 3,575 Fadesa Inmobiliaria S.A. 3,935 183 Fomento de Construcciones y Contratas S.A. 5,026 512 Gamesa Corp. Tecnologica S.A. 16,432 452 Gas Natural SDG S.A. 19,352 766 Grupo Ferrovial S.A. 6,251 610 Iberdrola S.A. 77,673 3,397 Iberia (Lineas Aereas de Espana) 28,623 104 Inditex S.A. 23,031 1,241 Indra Sistemas S.A. 14,331 352
EQUITY INDEX FUNDS 11 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED SPAIN - 4.0% - (CONTINUED) NH Hoteles S.A. 5,562 $ 110 Promotora de Informaciones S.A. (Prisa) 6,248 109 Repsol YPF S.A. 87,285 3,019 Sacyr Vallehermoso S.A. 10,238 608 Sociedad General de Aguas de Barcelona S.A., Class A 2,237 82 Sogecable S.A. * 3,992 142 Telefonica S.A. 446,111 9,495 Union Fenosa S.A. 11,684 578 Zeltia S.A. * 10,140 75 ---------- 52,310 ---------- SWEDEN - 2.5% Alfa Laval AB 10,300 465 Assa Abloy AB, Class B 31,700 690 Atlas Copco AB, Class A 33,600 1,129 Atlas Copco AB, Class B 21,400 694 Axfood AB 1,900 79 Billerud AB 1,200 21 Boliden AB 28,300 728 Castellum AB 17,200 229 D Carnegie AB 3,200 69 Electrolux AB, Class B 27,400 548 Elekta AB, Class B 9,400 198 Eniro AB 18,900 250 Fabege AB 8,300 223 Getinge AB, Class B 18,500 415 Hennes & Mauritz AB, Class B 48,350 2,444 Hoganas AB, Class B 2,700 71 Holmen AB, Class B 5,800 253 Husqvarna AB, Class B * 28,900 452 Kungsleden AB 13,200 202 Lundin Petroleum AB * 25,100 292 Modern Times Group AB, Class B * 5,400 355 Nobia AB 3,700 142 Nordea Bank AB 205,700 3,171 OMX AB 9,400 173 Sandvik AB 101,000 1,468 SAS AB * 5,600 95 Scania AB, Class B 10,200 717 Securitas AB, Class B 31,900 495 Securitas Direct AB * 31,900 101 Securitas Systems AB * 31,900 129
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED SWEDEN - 2.5% - (CONTINUED) Skandinaviska Enskilda Banken AB, Class A 47,729 $ 1,517 Skanska AB, Class B 37,700 744 SKF AB, Class B 40,100 741 Ssab Svenskt Stal AB, Class A 16,200 385 Ssab Svenskt Stal AB, Class B 8,250 186 Svenska Cellulosa AB, Class B 19,400 1,013 Svenska Handelsbanken AB, Class A 52,100 1,576 Swedish Match AB 29,800 557 Tele2 AB, Class B 34,100 498 Telefonaktiebolaget LM Ericsson, Class B 1,497,700 6,051 Telelogic AB * 4,600 10 TeliaSonera AB 185,200 1,522 Trelleborg AB, Class B 4,700 113 Volvo AB, Class A 9,500 675 Volvo AB, Class B 21,800 1,502 Wihlborgs Fastigheter AB 1,440 30 ---------- 33,418 ---------- SWITZERLAND - 7.0% ABB Ltd. (Registered) 208,612 3,742 Adecco S.A. (Registered) 13,124 897 Ciba Specialty Chemicals A.G. (Registered) 7,272 484 Clariant A.G. (Registered) * 24,793 372 Compagnie Financiere Richemont A.G., Class A (Bearer) 51,700 3,014 Credit Suisse Group (Registered) 115,885 8,111 Geberit A.G. (Registered) 402 620 Givaudan S.A. (Registered) 630 583 Holcim Ltd. (Registered) 20,101 1,843 Kudelski S.A. (Bearer) 1,493 56 Kuehne & Nagel International A.G. (Registered) 5,913 430 Kuoni Reisen Holding A.G. (Registered) * 229 123 Logitech International S.A. (Registered) * 17,830 515 Lonza Group A.G. (Registered) 3,688 319 Micronas Semiconductor Holding (Registered) * 2,113 46 Nestle S.A. (Registered) 40,372 14,353 Nobel Biocare Holding A.G. (Bearer) 2,426 718 Novartis A.G. (Registered) 234,596 13,531 OC Oerlikon Corp. A.G. (Registered) * 668 330 Phonak Holding A.G. (Registered) 4,522 360 PSP Swiss Property A.G. (Registered) * 4,224 243 Rieter Holding A.G. (Registered) 376 197 Roche Holding A.G. (Genusschein) 70,416 12,633
NORTHERN FUNDS QUARTERLY REPORT 12 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED SWITZERLAND - 7.0% - (CONTINUED) Schindler Holding A.G. 5,559 $ 350 Serono S.A. (Bearer) 548 492 SGS S.A. (Registered) 456 508 SIG Holding A.G. (Registered) * 278 93 STMicroelectronics N.V. 70,575 1,311 Straumann Holding A.G. (Registered) 697 169 Sulzer A.G. (Registered) 411 468 Swatch Group A.G. (Bearer) 3,344 739 Swatch Group A.G. (Registered) 4,910 220 Swiss Reinsurance (Registered) 33,373 2,839 Swisscom A.G. (Registered) 1,848 700 Syngenta A.G. (Registered) * 10,479 1,950 Synthes, Inc. 4,865 580 UBS AG 201,118 12,228 Xstrata PLC 60,501 3,021 Zurich Financial Services A.G. (Registered) 14,690 3,956 ---------- 93,144 ---------- UNITED KINGDOM - 21.1% 3I Group PLC 47,299 935 Acergy S.A. * 19,100 368 Aegis Group PLC 90,919 249 Aggreko PLC 22,158 189 Amec PLC 35,545 293 Amvescap PLC 73,789 861 Anglo American PLC 144,279 7,037 ARM Holdings PLC 153,951 379 Arriva PLC 20,823 312 AstraZeneca PLC 156,667 8,417 Aviva PLC 257,607 4,146 BAE Systems PLC 328,828 2,741 Balfour Beatty PLC 45,364 394 Barclays PLC 652,989 9,334 Barratt Developments PLC 24,755 599 BBA Aviation PLC 42,547 228 Bellway PLC 12,326 373 Berkeley Group Holdings PLC * 10,745 360 BG Group PLC 346,624 4,703 BHP Billiton PLC 247,771 4,534 Biffa PLC 34,839 209 Boots Group PLC 81,454 1,336 Bovis Homes Group PLC 8,969 190 BP PLC 1,982,330 22,027
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED UNITED KINGDOM - 21.1% - (CONTINUED) British Airways PLC * 57,441 $ 593 British American Tobacco PLC 157,364 4,403 British Land Co. PLC 53,161 1,784 British Sky Broadcasting PLC 116,041 1,186 Brixton PLC 26,894 303 BT Group PLC 842,302 4,973 Bunzl PLC 37,109 457 Burberry Group PLC 45,415 574 Cable & Wireless PLC 231,448 715 Cadbury Schweppes PLC 206,453 2,209 Capita Group PLC 65,892 783 Carnival PLC 17,338 879 Carphone Warehouse Group PLC 32,048 197 Cattles PLC 34,695 298 Centrica PLC 358,121 2,486 Charter PLC * 10,970 194 Close Brothers Group PLC 8,456 168 Cobham PLC 122,627 465 Collins Stewart Tullett PLC * 19,798 98 Compass Group PLC 212,910 1,209 Cookson Group PLC 13,830 170 Corus Group PLC 89,335 928 CSR PLC * 12,382 158 Daily Mail & General Trust, Class A 28,940 406 Davis Service Group PLC 15,886 157 De La Rue PLC 12,214 154 Diageo PLC 280,648 5,509 DSG International PLC 183,591 688 Electrocomponents PLC 44,938 258 EMAP 23,538 372 EMI Group PLC 85,577 444 Enterprise Inns PLC 33,166 879 First Choice Holidays PLC 42,907 239 FirstGroup PLC 42,317 476 FKI PLC 15,237 31 Friends Provident PLC 178,121 757 Galiform PLC * 7,670 21 Gallaher Group PLC 67,539 1,516 GKN PLC 71,149 387 GlaxoSmithKline PLC 583,440 15,354 Great Portland Estates PLC 7,349 100 Group 4 Securicor PLC 116,045 427
EQUITY INDEX FUNDS 13 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED UNITED KINGDOM - 21.1% - (CONTINUED) Hammerson PLC 29,781 $ 920 Hanson PLC 72,632 1,096 Hays PLC 163,242 509 HBOS PLC 380,371 8,431 HMV Group PLC 32,705 92 Home Retail Group 86,727 696 HSBC Holdings PLC 1,159,787 21,142 ICAP PLC 52,337 490 IMI PLC 36,858 366 Imperial Chemical Industries PLC 119,355 1,056 Imperial Tobacco Group PLC 68,517 2,697 Inchcape PLC 49,530 491 Intercontinental Hotels Group PLC 35,944 888 International Power PLC 152,282 1,138 Intertek Group PLC 16,726 273 Invensys PLC * 88,270 476 Investec PLC 32,065 414 ITV PLC 413,626 863 Johnson Matthey PLC 22,225 613 Kelda Group PLC 37,513 680 Kesa Electricals PLC 57,345 381 Kingfisher PLC 242,826 1,134 Ladbrokes PLC 57,413 470 Land Securities Group PLC 47,022 2,139 Legal & General Group PLC 666,223 2,055 Liberty International PLC 28,507 779 Lloyds TSB Group PLC 563,329 6,304 LogicaCMG PLC 160,915 586 London Stock Exchange Group PLC 17,883 459 Man Group PLC 175,903 1,800 Marks & Spencer Group PLC 171,467 2,407 Meggitt PLC 49,725 302 Michael Page International PLC 28,333 251 Misys PLC 39,611 168 Mitchells & Butlers PLC 40,621 565 National Express Group PLC 14,199 314 National Grid PLC 271,309 3,915 Next PLC 23,721 836 Old Mutual PLC 515,549 1,759 Pearson PLC 80,427 1,215 Persimmon PLC 28,428 849 Premier Farnell PLC 35,671 138
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED UNITED KINGDOM - 21.1% - (CONTINUED) Provident Financial PLC 27,433 $ 377 Prudential PLC 241,882 3,313 Punch Taverns PLC 28,316 709 Rank Group PLC 68,690 314 Reckitt Benckiser PLC 62,226 2,844 Reed Elsevier PLC 125,134 1,373 Rentokil Initial PLC 183,318 595 Resolution PLC 68,314 858 Reuters Group PLC 134,054 1,169 Rexam PLC 55,970 576 Rio Tinto PLC 104,403 5,556 Rolls-Royce Group PLC * 177,257 1,554 Rolls-Royce Group PLC, Class B * 6,505,331 13 Royal & Sun Alliance Insurance Group PLC 290,502 867 Royal Bank of Scotland Group PLC 320,595 12,511 SABMiller PLC 90,007 2,071 Sage Group PLC 127,290 675 Sainsbury (J.) PLC 148,612 1,191 Schroders PLC 13,120 287 Scottish & Newcastle PLC 80,426 881 Scottish & Southern Energy PLC 85,195 2,592 Scottish Power PLC 148,643 2,177 Serco Group PLC 49,649 371 Severn Trent PLC 23,226 669 Signet Group PLC 189,306 439 Slough Estates PLC 45,336 697 Smith & Nephew PLC 94,091 982 Smiths Group PLC 56,623 1,099 SSL International PLC 14,046 102 Stagecoach Group PLC 57,871 173 Standard Life PLC * 204,800 1,186 Stolt-Nielsen S.A. 3,100 95 Tate & Lyle PLC 47,690 718 Taylor Woodrow PLC 58,966 492 Tesco PLC 804,596 6,373 Tomkins PLC 84,656 407 Travis Perkins PLC 12,106 470 Trinity Mirror PLC 26,764 246 Tullet Prebon PLC * 19,798 252 Unilever PLC 124,482 3,481 United Business Media PLC 26,736 363 United Utilities PLC 90,066 1,376
NORTHERN FUNDS QUARTERLY REPORT 14 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS INTERNATIONAL EQUITY INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.2% - CONTINUED UNITED KINGDOM - 21.1% - (CONTINUED) Vodafone Group PLC 5,303,691 $ 14,694 Whitbread PLC 22,107 725 William Hill PLC 38,599 478 Wimpey (George) PLC 39,391 431 Wolseley PLC 65,831 1,589 WPP Group PLC 119,051 1,610 Yell Group PLC 77,664 867 ---------- 278,664 ---------- TOTAL COMMON STOCKS (COST $997,245) 1,285,483 ---------- PREFERRED STOCKS - 0.3% GERMANY - 0.3% Henkel KGaA 5,949 876 Porsche A.G 789 1,004 ProSieben SAT.1 Media A.G 8,443 277 RWE A.G 3,463 329 Volkswagen A.G 10,542 787 ---------- 3,273 ---------- ITALY - 0.0% Unipol S.p.A 109,013 354 ---------- TOTAL PREFERRED STOCKS (COST $2,271) 3,627 ---------- WARRANTS - 0.0% Dowa Holding Co. Ltd., Exp. 1/29/10, Strike 1.00 Yen * 30,000 -- ---------- TOTAL WARRANTS (COST $-) -- ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 1.5% ING, Belgium, Brussels, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 19,678 $ 19,678 ---------- TOTAL SHORT-TERM INVESTMENT (COST $19,678) 19,678 ---------- TOTAL INVESTMENTS - 99.0% (COST $1,019,194) 1,308,788 Other Assets less Liabilities - 1.0% 13,871 ---------- NET ASSETS - 100.0% $1,322,659
* Non-Income Producing Security At December 31, 2006, the International Equity Index Fund had open futures contracts as follows:
NUMBER NOTIONAL UNREALIZED OF AMOUNT CONTRACT CONTRACT GAIN TYPE CONTRACTS (000S) POSITION EXP. (000S) ---- --------- -------- -------- -------- ---------- DJ Euro Stoxx 50 264 $14,490 Long 3/07 $130 FTSE 100 Index 59 7,181 Long 3/07 15 Hang Seng Index 5 643 Long 3/07 27 Nikkei 225 CME 45 3,885 Long 3/07 190 SPI 200 15 1,671 Long 3/07 15 TOPIX Index 23 3,254 Long 3/07 46 ---- Total $423
EQUITY INDEX FUNDS 15 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED) At December 31, 2006, the industry sectors for the International Equity Index Fund were:
% OF LONG-TERM INDUSTRY SECTOR INVESTMENTS --------------- ------------- Consumer Discretionary 11.8% Consumer Staples 7.9 Energy 7.2 Financials 29.8 Health Care 7.1 Industrials 11.1 Information Technology 5.6 Materials 8.4 Telecommunication Services 5.5 Utilities 5.6 ----- Total 100.0%
At December 31, 2006, the International Equity Index Fund's investments were denominated in the following currencies:
% OF LONG-TERM CONCENTRATION BY CURRENCY INVESTMENTS ------------------------- -------------- Euro 33.5% Japanese Yen 22.2 British Pound 23.4 Swiss Franc 6.8 Australian Dollar 5.4 All other currencies less than 5% 8.7 ----- Total 100.0%
At December 31, 2006, the International Equity Index Fund had outstanding forward foreign currency exchange contracts as follows:
AMOUNT IN AMOUNT CONTRACTS (LOCAL EXCHANGE (LOCAL UNREALIZED TO DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT GAIN (LOSS) CURRENCY (000S) CURRENCY (000S) DATE (000S) ---------- --------- ----------- --------- ---------- ----------- Australian Dollar 2,296 U.S. Dollar 1,800 3/21/07 $ (8) British Pound 1,628 U.S. Dollar 3,200 3/21/07 11 Euro 9,542 U.S. Dollar 12,620 3/21/07 (22) Hong Kong Dollar 6,821 U.S. Dollar 880 3/21/07 -- Australian U.S. Dollar 2,280 Dollar 2,930 3/21/07 27 British U.S. Dollar 8,020 Pound 4,112 3/21/07 35 U.S. Dollar 21,690 Euro 16,511 3/21/07 186 HongKong U.S. Dollar 930 Dollar 7,203 3/21/07 (1) Japanese Yen 743,174 U.S. Dollar 6,350 3/22/07 36 Japanese U.S. Dollar 12,010 Yen 1,403,568 3/22/07 (86) ---- Total $178
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $1,019,194 ---------- Gross tax appreciation of investments $ 298,672 Gross tax depreciation of investments (9,078) ---------- Net tax appreciation of investments $ 289,594 ==========
NORTHERN FUNDS QUARTERLY REPORT 16 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS MID CAP INDEX FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% ADVERTISING - 0.2% Catalina Marketing Corp. 9,400 $ 258 Harte-Hanks, Inc. 12,300 341 ---------- 599 ---------- AEROSPACE/DEFENSE - 0.5% Alliant Techsystems, Inc. * 8,489 664 DRS Technologies, Inc. 10,400 548 Sequa Corp., Class A * 1,800 207 ---------- 1,419 ---------- AGRICULTURE - 0.1% Universal Corp. of Virginia 6,800 333 ---------- AIRLINES - 0.4% Airtran Holdings, Inc. * 24,000 282 Alaska Air Group, Inc. * 10,200 403 JetBlue Airways Corp. * 43,950 624 ---------- 1,309 ---------- APPAREL - 0.8% Hanesbrands, Inc. * 24,400 576 Polo Ralph Lauren Corp. 15,600 1,212 Timberland (The) Co., Class A * 12,800 404 ---------- 2,192 ---------- AUTO MANUFACTURERS - 0.3% Oshkosh Truck Corp. 19,000 920 ---------- AUTO PARTS & EQUIPMENT - 0.7% ArvinMeritor, Inc. 18,600 339 Bandag, Inc. 3,100 156 BorgWarner, Inc. 14,700 868 Lear Corp. 17,200 508 Modine Manufacturing Co. 8,800 220 ---------- 2,091 ---------- BANKS - 3.8% Associated Banc-Corp 33,082 1,154 Bank of Hawaii Corp. 12,600 680 Cathay General Bancorp 13,500 466 City National Corp. of California 10,100 719 Colonial BancGroup (The), Inc. 38,800 999 Cullen/Frost Bankers, Inc. 15,300 854 FirstMerit Corp. 20,800 502 Greater Bay Bancorp 13,100 345 Investors Financial Services Corp. 17,000 725 Mercantile Bankshares Corp. 31,800 1,488 SVB Financial Group * 8,700 406
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED BANKS - 3.8% - (CONTINUED) TCF Financial Corp. 28,600 $ 784 Webster Financial Corp. 14,272 695 Westamerica Bancorporation 7,800 395 Wilmington Trust Corp. 17,400 734 ---------- 10,946 ---------- BEVERAGES - 0.3% Hansen Natural Corp. * 15,700 529 PepsiAmericas, Inc. 16,000 336 ---------- 865 ---------- BIOTECHNOLOGY - 1.6% Affymetrix, Inc. * 17,500 403 Charles River Laboratories International, Inc. * 16,964 734 Invitrogen Corp. * 12,400 702 Martek Biosciences Corp. * 8,500 198 Millennium Pharmaceuticals, Inc. * 77,600 846 PDL BioPharma, Inc. * 29,216 588 Vertex Pharmaceuticals, Inc. * 31,900 1,194 ---------- 4,665 ---------- BUILDING MATERIALS - 0.6% Florida Rock Industries, Inc. 12,400 534 Martin Marietta Materials, Inc. 11,400 1,184 ---------- 1,718 ---------- CHEMICALS - 3.1% Airgas, Inc. 19,500 790 Albemarle Corp. 10,000 718 Cabot Corp. 16,200 706 Chemtura Corp. 61,100 588 Cytec Industries, Inc. 10,700 605 Ferro Corp. 11,000 228 FMC Corp. 9,700 742 Lubrizol Corp. 17,500 877 Lyondell Chemical Co. 53,600 1,371 Minerals Technologies, Inc. 5,000 294 Olin Corp. 19,300 319 RPM International, Inc. 30,400 635 Sensient Technologies Corp. 12,200 300 Valspar Corp. 25,800 713 ---------- 8,886 ---------- COAL - 0.4% Arch Coal, Inc. 36,100 1,084 ----------
EQUITY INDEX FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED COMMERCIAL SERVICES - 4.7% Adesa, Inc. 22,800 $ 633 Alliance Data Systems Corp. * 16,800 1,050 Avis Budget Group, Inc. 25,920 562 Banta Corp. 6,300 229 Career Education Corp. * 24,100 597 ChoicePoint, Inc. * 20,600 811 Corinthian Colleges, Inc. * 22,700 309 Corporate Executive Board Co. 9,900 868 Deluxe Corp. 13,500 340 DeVry, Inc. 15,100 423 Gartner, Inc. * 14,600 289 ITT Educational Services, Inc. * 8,200 544 Kelly Services, Inc., Class A 5,200 150 Korn/Ferry International * 11,200 257 Laureate Education, Inc. * 13,300 647 Manpower, Inc. 21,600 1,619 MPS Group, Inc. * 26,500 376 Navigant Consulting, Inc. * 13,800 273 Pharmaceutical Product Development, Inc. 26,200 844 Quanta Services, Inc. * 30,100 592 Rent-A-Center, Inc. * 18,100 534 Rollins, Inc. 7,900 175 Sotheby's 13,900 431 Strayer Education, Inc. 3,700 392 United Rentals, Inc. * 17,400 443 Valassis Communications, Inc. * 13,000 189 ---------- 13,577 ---------- COMPUTERS - 3.0% BISYS Group (The), Inc. * 31,100 401 Cadence Design Systems, Inc. * 70,400 1,261 Ceridian Corp. * 35,300 988 Diebold, Inc. 16,600 773 DST Systems, Inc. * 14,320 897 Henry (Jack) & Associates, Inc. 20,100 430 Imation Corp. 9,000 418 McData Corp., Class A * 42,500 236 Mentor Graphics Corp. * 21,400 386 Palm, Inc. * 26,200 369 SRA International, Inc., Class A * 10,200 273 Synopsys, Inc. * 35,800 957 Western Digital Corp. * 56,500 1,156 ---------- 8,545 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED COSMETICS/PERSONAL CARE - 0.2% Alberto-Culver Co. 20,600 $ 442 ---------- DISTRIBUTION/WHOLESALE - 1.2% CDW Corp. 15,400 1,083 Fastenal Co. 32,100 1,152 Ingram Micro, Inc., Class A * 35,000 714 Tech Data Corp. * 14,100 534 ---------- 3,483 ---------- DIVERSIFIED FINANCIAL SERVICES - 2.4% AmeriCredit Corp. * 29,800 750 Eaton Vance Corp. 32,200 1,063 Edwards (A.G.), Inc. 19,300 1,221 IndyMac Bancorp, Inc. 17,900 808 Jefferies Group, Inc. 25,800 692 Nuveen Investments, Inc., Class A 20,000 1,038 Raymond James Financial, Inc. 23,300 706 Waddell & Reed Financial, Inc., Class A 21,300 583 ---------- 6,861 ---------- ELECTRIC - 6.0% Alliant Energy Corp. 29,400 1,110 Aquila, Inc. * 97,700 459 Black Hills Corp. 8,500 314 DPL, Inc. 28,700 797 Duquesne Light Holdings, Inc. 22,600 449 Energy East Corp. 37,500 930 Great Plains Energy, Inc. 20,700 658 Hawaiian Electric Industries, Inc. 20,600 559 Idacorp, Inc. 11,000 425 MDU Resources Group, Inc. 45,850 1,176 Northeast Utilities 39,400 1,109 NSTAR 27,400 941 OGE Energy Corp. 23,300 932 Pepco Holdings, Inc. 48,600 1,264 PNM Resources, Inc. 18,085 562 Puget Energy, Inc. 29,600 751 SCANA Corp. 29,900 1,215 Sierra Pacific Resources * 56,600 953 Westar Energy, Inc. 22,100 574 Wisconsin Energy Corp. 29,700 1,410 WPS Resources Corp. 11,078 599 ---------- 17,187 ----------
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS MID CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED ELECTRICAL COMPONENTS & EQUIPMENT - 0.9% Ametek, Inc. 27,150 $ 865 Energizer Holdings, Inc. * 14,400 1,022 Hubbell, Inc., Class B 15,600 705 ---------- 2,592 ---------- ELECTRONICS - 2.1% Amphenol Corp., Class A 22,124 1,373 Arrow Electronics, Inc. * 31,000 978 Avnet, Inc. * 32,700 835 Gentex Corp. 36,300 565 Kemet Corp. * 22,500 164 National Instruments Corp. 14,400 392 Plexus Corp. * 12,100 289 Thomas & Betts Corp. * 13,300 629 Varian, Inc. * 7,700 345 Vishay Intertechnology, Inc. * 46,800 634 ---------- 6,204 ---------- ENGINEERING & CONSTRUCTION - 0.7% Dycom Industries, Inc. * 10,900 230 Granite Construction, Inc. 8,800 443 Jacobs Engineering Group, Inc. * 15,100 1,231 ---------- 1,904 ---------- ENTERTAINMENT - 0.5% International Speedway Corp., Class A 9,200 470 Macrovision Corp. * 13,000 367 Scientific Games Corp., Class A * 17,300 523 ---------- 1,360 ---------- ENVIRONMENTAL CONTROL - 0.8% Mine Safety Appliances Co. 7,100 260 Republic Services, Inc. 28,800 1,171 Stericycle, Inc. * 11,200 846 ---------- 2,277 ---------- FOOD - 0.9% Hormel Foods Corp. 18,500 691 JM Smucker (The) Co. 14,400 698 Ruddick Corp. 9,100 252 Smithfield Foods, Inc. * 25,800 662 Tootsie Roll Industries, Inc. 6,683 219 ---------- 2,522 ---------- FOREST PRODUCTS & PAPER - 0.8% Bowater, Inc. 14,200 320 Glatfelter 12,200 189
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED FOREST PRODUCTS & PAPER - 0.8% - (CONTINUED) Louisiana-Pacific Corp. 27,100 $ 583 Potlatch Corp. 9,928 435 Rayonier, Inc. 19,550 803 ---------- 2,330 ---------- GAS - 0.6% AGL Resources, Inc. 19,900 774 Vectren Corp. 19,300 546 WGL Holdings, Inc. 12,400 404 ---------- 1,724 ---------- HAND/MACHINE TOOLS - 0.4% Kennametal, Inc. 9,800 577 Lincoln Electric Holdings, Inc. 11,000 664 ---------- 1,241 ---------- HEALTHCARE - PRODUCTS - 4.0% Advanced Medical Optics, Inc. * 15,000 528 Beckman Coulter, Inc. 16,000 957 Cytyc Corp. * 29,000 821 Dentsply International, Inc. 38,500 1,149 Edwards Lifesciences Corp. * 14,700 691 Gen-Probe, Inc. * 13,200 691 Henry Schein, Inc. * 22,600 1,107 Hillenbrand Industries, Inc. 15,800 900 Intuitive Surgical, Inc. * 9,400 901 Resmed, Inc. * 19,400 955 STERIS Corp. 16,900 425 Techne Corp. * 10,000 555 Varian Medical Systems, Inc. * 32,700 1,556 Ventana Medical Systems, Inc. * 8,400 361 ---------- 11,597 ---------- HEALTHCARE - SERVICES - 2.5% Apria Healthcare Group, Inc. * 11,100 296 Community Health Systems, Inc. * 24,200 884 Covance, Inc. * 16,200 954 Health Net, Inc. * 29,600 1,440 LifePoint Hospitals, Inc. * 15,000 506 Lincare Holdings, Inc. * 23,500 936 Psychiatric Solutions, Inc. * 13,500 507 Triad Hospitals, Inc. * 22,503 941 Universal Health Services, Inc., Class B 13,989 775 ---------- 7,239 ----------
EQUITY INDEX FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED HOLDING COMPANIES - DIVERSIFIED - 0.4% Leucadia National Corp. 41,600 $ 1,173 ---------- HOME BUILDERS - 1.1% Beazer Homes USA, Inc. 9,900 465 Hovnanian Enterprises, Inc., Class A * 9,400 319 MDC Holdings, Inc. 8,800 502 Ryland Group, Inc. 10,800 590 Thor Industries, Inc. 8,900 392 Toll Brothers, Inc. * 31,900 1,028 ---------- 3,296 ---------- HOME FURNISHINGS - 0.1% Furniture Brands International, Inc. 12,900 209 ---------- HOUSEHOLD PRODUCTS/WARES - 0.7% American Greetings Corp., Class A 14,800 353 Blyth, Inc. 6,500 135 Church & Dwight, Inc. 16,900 721 Scotts Miracle-Gro (The) Co., Class A 11,800 610 Tupperware Brands Corp. 14,200 321 ---------- 2,140 ---------- INSURANCE - 5.5% American Financial Group, Inc. of Ohio 18,000 646 Brown & Brown, Inc. 29,300 827 Everest Re Group Ltd. 16,600 1,629 Fidelity National Financial, Inc., Class A 56,477 1,349 First American Corp. 24,521 997 Gallagher (Arthur J.) & Co. 25,100 742 Hanover Insurance Group (The), Inc. 13,028 636 HCC Insurance Holdings, Inc. 28,200 905 Horace Mann Educators Corp. 10,900 220 Mercury General Corp. 9,000 475 Ohio Casualty Corp. 15,500 462 Old Republic International Corp. 58,900 1,371 PMI Group (The), Inc. 22,300 1,052 Protective Life Corp. 17,900 850 Radian Group, Inc. 20,400 1,100 Stancorp Financial Group, Inc. 13,900 626 Unitrin, Inc. 10,200 511 W.R. Berkley Corp. 42,775 1,476 ---------- 15,874 ---------- INTERNET - 1.3% Avocent Corp. * 12,900 437 Checkfree Corp. * 22,500 904 F5 Networks, Inc. * 10,300 764
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED INTERNET - 1.3% - (CONTINUED) McAfee, Inc. * 40,500 $ 1,149 ValueClick, Inc. * 25,100 593 ---------- 3,847 ---------- IRON/STEEL - 0.5% Reliance Steel & Aluminum Co. 16,300 642 Steel Dynamics, Inc. 23,100 750 ---------- 1,392 ---------- LEISURE TIME - 0.1% Callaway Golf Co. 15,800 228 ---------- LODGING - 0.2% Boyd Gaming Corp. 10,700 485 ---------- MACHINERY - CONSTRUCTION & MINING - 0.5% Joy Global, Inc. 30,350 1,467 ---------- MACHINERY - DIVERSIFIED - 1.1% AGCO Corp. * 23,100 715 Flowserve Corp. * 14,500 732 Graco, Inc. 17,100 677 Nordson Corp. 8,600 428 Zebra Technologies Corp., Class A * 18,100 630 ---------- 3,182 ---------- MEDIA - 1.2% Belo Corp., Class A 22,300 410 Entercom Communications Corp., Class A 7,300 206 Lee Enterprises, Inc. 11,600 360 Media General, Inc., Class A 6,300 234 Readers Digest Association (The), Inc. 24,700 412 Scholastic Corp. * 6,700 240 Washington Post (The), Co., Class B 1,440 1,074 Westwood One, Inc. 17,900 126 Wiley (John) & Sons, Inc., Class A 11,300 435 ---------- 3,497 ---------- METAL FABRICATION/HARDWARE - 1.6% Commercial Metals Co. 30,000 774 Precision Castparts Corp. 34,400 2,693 Timken (The) Co. 23,900 697 Worthington Industries, Inc. 18,900 335 ---------- 4,499 ---------- MISCELLANEOUS MANUFACTURING - 2.8% Brink's (The) Co. 12,200 780 Carlisle Cos., Inc. 7,900 620 Crane Co. 13,200 484
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS MID CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED MISCELLANEOUS MANUFACTURING - 2.8% - (CONTINUED) Donaldson Co., Inc. 17,800 $ 618 Federal Signal Corp. 12,600 202 Harsco Corp. 10,800 822 Lancaster Colony Corp. 6,100 270 Pentair, Inc. 25,300 795 Roper Industries, Inc. 22,100 1,110 SPX Corp. 14,500 887 Teleflex, Inc. 9,900 639 Trinity Industries, Inc. 20,550 723 ---------- 7,950 ---------- OFFICE FURNISHINGS - 0.4% Herman Miller, Inc. 16,500 600 HNI Corp. 12,300 546 ---------- 1,146 ---------- OIL & GAS - 5.1% Denbury Resources, Inc. * 30,600 850 ENSCO International, Inc. 38,600 1,932 Forest Oil Corp. * 13,900 454 Helmerich & Payne, Inc. 26,700 653 Newfield Exploration Co. * 32,700 1,503 Noble Energy, Inc. 44,108 2,165 Patterson-UTI Energy, Inc. 40,300 936 Pioneer Natural Resources Co. 31,100 1,234 Plains Exploration & Production Co. * 19,500 927 Pogo Producing Co. 14,900 722 Pride International, Inc. * 42,100 1,264 Quicksilver Resources, Inc. * 14,000 512 Southwestern Energy Co. * 43,100 1,511 ---------- 14,663 ---------- OIL & GAS SERVICES - 1.8% Cameron International Corp. * 28,200 1,496 FMC Technologies, Inc. * 17,500 1,079 Grant Prideco, Inc. * 32,500 1,292 Hanover Compressor Co. * 26,100 493 Tidewater, Inc. 14,600 706 ---------- 5,066 ---------- PACKAGING & CONTAINERS - 0.5% Packaging Corp. of America 19,600 433 Sonoco Products Co. 25,400 967 ---------- 1,400 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED PHARMACEUTICALS - 2.1% Cephalon, Inc. * 15,600 $ 1,098 Medicis Pharmaceutical Corp., Class A 14,200 499 Omnicare, Inc. 30,800 1,190 Par Pharmaceutical Cos., Inc. * 9,000 201 Perrigo Co. 19,500 337 Sepracor, Inc. * 27,800 1,712 Valeant Pharmaceuticals International 24,300 419 VCA Antech, Inc. * 21,200 683 ---------- 6,139 ---------- PIPELINES - 1.1% Equitable Resources, Inc. 30,600 1,278 National Fuel Gas Co. 20,900 805 Oneok, Inc. 28,000 1,207 ---------- 3,290 ---------- REAL ESTATE INVESTMENT TRUSTS - 4.4% AMB Property Corp. 22,800 1,336 Developers Diversified Realty Corp. 27,600 1,738 Highwoods Properties, Inc. 14,200 579 Hospitality Properties Trust 21,838 1,038 Liberty Property Trust 23,200 1,140 Longview Fibre Co. 16,720 367 Macerich (The) Co. 18,249 1,580 Mack-Cali Realty Corp. 16,000 816 New Plan Excel Realty Trust 26,200 720 Regency Centers Corp. 17,666 1,381 United Dominion Realty Trust, Inc. 34,200 1,087 Weingarten Realty Investors 19,418 895 ---------- 12,677 ---------- RETAIL - 8.7% 99 Cents Only Stores * 12,300 150 Abercrombie & Fitch Co., Class A 22,400 1,560 Advance Auto Parts, Inc. 26,650 948 Aeropostale, Inc. * 13,300 411 American Eagle Outfitters, Inc. 51,300 1,601 AnnTaylor Stores Corp. * 18,600 611 Applebee's International, Inc. 19,200 474 Barnes & Noble, Inc. 13,100 520 BJ's Wholesale Club, Inc. * 16,700 519 Bob Evans Farms, Inc. 9,400 322 Borders Group, Inc. 15,100 337 Brinker International, Inc. 31,200 941 Carmax, Inc. * 27,200 1,459
EQUITY INDEX FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED RETAIL - 8.7% - (CONTINUED) CBRL Group, Inc. 8,144 $ 364 Charming Shoppes, Inc. * 31,004 419 Cheesecake Factory (The), Inc. * 19,700 485 Chico's FAS, Inc. * 44,600 923 Claire's Stores, Inc. 23,600 782 Coldwater Creek, Inc. * 15,396 377 Copart, Inc. * 18,200 546 Dick's Sporting Goods, Inc. * 9,600 470 Dollar Tree Stores, Inc. * 26,100 786 Foot Locker, Inc. 39,500 866 GameStop Corp., Class A * 19,300 1,064 MSC Industrial Direct Co., Class A 14,000 548 O'Reilly Automotive, Inc. * 29,000 930 OSI Restaurant Partners, Inc. 18,800 737 Pacific Sunwear of California, Inc. * 17,900 350 Payless Shoesource, Inc. * 17,000 558 Petsmart, Inc. 34,500 996 Regis Corp. 11,800 467 Ross Stores, Inc. 35,500 1,040 Ruby Tuesday, Inc. 15,200 417 Saks, Inc. 35,100 625 Urban Outfitters, Inc. * 28,900 665 Williams-Sonoma, Inc. 28,400 893 ---------- 25,161 ---------- SAVINGS & LOANS - 0.9% Astoria Financial Corp. 21,600 651 First Niagara Financial Group, Inc. 28,982 431 New York Community Bancorp, Inc. 66,500 1,071 Washington Federal, Inc. 22,200 522 ---------- 2,675 ---------- SEMICONDUCTORS - 3.8% Atmel Corp. * 110,600 669 Cree, Inc. * 19,900 345 Cypress Semiconductor Corp. * 36,600 617 Fairchild Semiconductor International, Inc. * 31,900 536 Integrated Device Technology, Inc. * 50,430 781 International Rectifier Corp. * 18,300 705 Intersil Corp., Class A 35,000 837 Lam Research Corp. * 36,100 1,827 Lattice Semiconductor Corp. * 29,900 194 MEMC Electronic Materials, Inc. * 42,300 1,656 Micrel, Inc. * 15,600 168
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED SEMICONDUCTORS - 3.8% - (CONTINUED) Microchip Technology, Inc. 55,000 $ 1,799 Semtech Corp. * 19,200 251 Silicon Laboratories, Inc. * 14,200 492 Triquint Semiconductor, Inc. * 36,300 163 ---------- 11,040 ---------- SOFTWARE - 2.5% Activision, Inc. * 63,344 1,092 Acxiom Corp. 17,775 456 Advent Software, Inc. * 4,800 169 CSG Systems International, Inc. * 12,000 321 Dun & Bradstreet Corp. * 15,587 1,290 Fair Isaac Corp. 14,900 606 MoneyGram International, Inc. 21,300 668 Parametric Technology Corp. * 28,800 519 SEI Investments Co. 16,100 959 Sybase, Inc. * 22,913 566 Transaction Systems Architects, Inc. * 9,600 313 Wind River Systems, Inc. * 19,700 202 ---------- 7,161 ---------- TELECOMMUNICATIONS - 2.4% 3Com Corp. * 102,300 420 Adtran, Inc. 16,600 377 Andrew Corp. * 41,800 428 Cincinnati Bell, Inc. * 64,800 296 CommScope, Inc. * 15,100 460 Harris Corp. 34,300 1,573 Newport Corp. * 10,500 220 Plantronics, Inc. 12,500 265 Polycom, Inc. * 22,900 708 Powerwave Technologies, Inc. * 29,400 190 RF Micro Devices, Inc. * 50,800 345 Telephone & Data Systems, Inc. 26,600 1,445 UTStarcom, Inc. * 27,600 241 ---------- 6,968 ---------- TEXTILES - 0.3% Mohawk Industries, Inc. * 13,600 1,018 ---------- TRANSPORTATION - 2.5% Alexander & Baldwin, Inc. 11,100 492 CH Robinson Worldwide, Inc. 44,400 1,815 Con-way, Inc. 11,891 524 Expeditors International Washington, Inc. 54,100 2,191 Hunt (J.B.) Transport Services, Inc. 26,400 548
NORTHERN FUNDS QUARTERLY REPORT 6 EQUITY INDEX FUNDS EQUITY INDEX FUNDS DECEMBER 31, 2006 (UNAUDITED) SCHEDULE OF INVESTMENTS MID CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.6% - CONTINUED TRANSPORTATION - 2.5% - (CONTINUED) Overseas Shipholding Group 7,700 $ 434 Swift Transportation Co., Inc. * 13,900 365 Werner Enterprises, Inc. 13,500 236 YRC Worldwide, Inc. * 14,700 555 ---------- 7,160 ---------- TRUCKING & LEASING - 0.2% GATX Corp. 13,300 576 ---------- WATER - 0.3% Aqua America, Inc. 33,866 772 ---------- TOTAL COMMON STOCKS (COST $254,845) 284,263 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 1.4% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 3,636 3,636 U.S. Treasury Bill, (1) 4.92%, 2/22/07 445 442 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $4,078) 4,078 ---------- TOTAL INVESTMENTS - 100.0% (COST $258,923) 288,341 Other Assets less Liabilities - 0.0% 119 ---------- NET ASSETS - 100.0% $ 288,460
(1) Security pledged as collateral to cover margin requirements for open futures contracts. * Non-Income Producing Security At December 31, 2006, the Mid Cap Index Fund had open futures contracts as follows:
NOTIONAL UNREALIZED NUMBER OF AMOUNT CONTRACT CONTRACT LOSS TYPE CONTRACTS (000S) POSITION EXP. (000S) ---------- --------- -------- -------- -------- ---------- S&P Midcap 400 E-Mini 52 $4,219 Long 03/07 $(38)
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)
Federal tax cost of investments $ 258,923 ---------- Gross tax appreciation of investments $ 38,659 Gross tax depreciation of investments (9,241) ---------- Net tax appreciation of investments $ 29,418 ----------
EQUITY INDEX FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% ADVERTISING - 0.3% Advo, Inc. 8,662 $ 283 Catalina Marketing Corp. 12,700 349 Gaiam, Inc., Class A * 4,400 60 inVentiv Health, Inc. * 8,000 283 Marchex, Inc., Class B 6,300 84 Sitel Corp. * 16,100 68 ValueVision Media, Inc., Class A * 8,400 110 ---------- 1,237 ---------- AEROSPACE/DEFENSE - 1.2% AAR Corp. * 10,000 292 Argon ST, Inc. * 3,640 78 BE Aerospace, Inc. * 21,300 547 Curtiss-Wright Corp. 12,000 445 EDO Corp. 4,500 107 Esterline Technologies Corp. * 7,000 282 GenCorp, Inc. * 15,200 213 Heico Corp. 5,600 217 Herley Industries, Inc. * 4,000 65 Innovative Solutions & Support, Inc. * 3,300 56 K&F Industries Holdings, Inc. * 5,100 116 Kaman Corp. 6,600 148 Moog, Inc., Class A * 10,062 384 MTC Technologies, Inc. * 2,800 66 Orbital Sciences Corp. * 16,400 302 Sequa Corp., Class A * 1,900 219 Teledyne Technologies, Inc. * 9,400 377 TransDigm Group, Inc. * 3,182 84 Triumph Group, Inc. 4,400 231 United Industrial Corp. of New York 2,600 132 ---------- 4,361 ---------- AGRICULTURE - 0.4% Alico, Inc. 1,100 56 Alliance One International, Inc. * 26,100 184 Andersons (The), Inc. 3,900 165 Delta & Pine Land Co. 9,800 396 Maui Land & Pineapple Co., Inc. * 1,100 37 Tejon Ranch Co. * 3,000 168 Universal Corp. of Virginia 7,100 348 Vector Group Ltd. 10,845 193 ---------- 1,547 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED AIRLINES - 0.6% Airtran Holdings, Inc. * 25,000 $ 294 Alaska Air Group, Inc. * 10,900 431 Allegiant Travel Co. * 128 4 ExpressJet Holdings, Inc. * 13,600 110 Frontier Airlines Holdings, Inc. * 10,250 76 JetBlue Airways Corp. * 47,700 677 Mesa Air Group, Inc. * 9,900 85 Republic Airways Holdings, Inc. * 8,900 149 Skywest, Inc. 17,500 446 ---------- 2,272 ---------- APPAREL - 1.6% Carter's, Inc. * 13,300 339 Cherokee, Inc. 2,200 94 Columbia Sportswear Co. 3,600 201 CROCS, Inc. * 2,700 117 Deckers Outdoor Corp. * 3,000 180 Guess?, Inc. * 5,700 362 Gymboree Corp. * 9,100 347 Hartmarx Corp. * 8,700 62 Iconix Brand Group, Inc. * 13,100 254 K-Swiss, Inc., Class A 7,100 218 Kellwood Co. 7,050 229 Maidenform Brands, Inc. * 4,100 74 Oxford Industries, Inc. 4,100 204 Perry Ellis International, Inc. * 2,000 82 Phillips-Van Heusen Corp. 15,100 758 Quiksilver, Inc. * 33,500 528 Skechers U.S.A., Inc., Class A * 3,000 100 Steven Madden Ltd. 5,700 200 Stride Rite Corp. 10,100 152 Timberland (The) Co., Class A * 13,800 436 True Religion Apparel, Inc. * 3,600 55 Volcom, Inc. * 3,694 109 Warnaco Group (The), Inc. * 12,900 327 Weyco Group, Inc. 1,900 47 Wolverine World Wide, Inc. 15,300 436 ---------- 5,911 ---------- AUTO MANUFACTURERS - 0.2% A.S.V., Inc. * 5,900 96 Navistar International Corp. * 17,000 568 Wabash National Corp. 8,600 130 ---------- 794 ----------
EQUITY INDEX FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED AUTO PARTS & EQUIPMENT - 0.9% Accuride Corp. * 6,200 $ 70 Aftermarket Technology Corp. * 6,000 128 American Axle & Manufacturing Holdings, Inc. 14,300 272 ArvinMeritor, Inc. 19,300 352 Bandag, Inc. 3,100 156 Commercial Vehicle Group, Inc. * 5,800 126 Cooper Tire & Rubber Co. 16,800 240 Fuel Systems Solutions, Inc. * 3,100 68 Keystone Automotive Industries, Inc. * 4,400 150 Lear Corp. 18,500 546 Miller Industries, Inc. of Tennessee * 2,600 62 Modine Manufacturing Co. 9,200 230 Noble International Ltd. 3,150 63 Superior Industries International, Inc. 6,300 121 Tenneco, Inc. * 12,400 307 Titan International, Inc. 4,600 93 Visteon Corp. * 35,200 299 ---------- 3,283 ---------- BANKS - 7.7% 1st Source Corp. 3,608 116 Alabama National Bancorp 4,300 296 Amcore Financial, Inc. 5,982 195 AmericanWest Bancorp 3,220 78 Ameris Bancorp 3,520 99 Arrow Financial Corp. 2,862 71 Bancfirst Corp. 1,928 104 Bancorp, Inc. of Delaware * 2,985 88 BancTrust Financial Group, Inc. 2,700 69 Bank Mutual Corp. 16,706 202 Bank of Granite Corp. 4,525 86 Bank of the Ozarks, Inc. 3,300 109 Banner Corp. 3,400 151 Boston Private Financial Holdings, Inc. 9,700 274 Cadence Financial Corp. 2,600 56 Camden National Corp. 1,836 85 Capital City Bank Group, Inc. 3,508 124 Capital Corp. of the West 2,640 85 Capitol Bancorp Ltd. 3,700 171 Cardinal Financial Corp. 7,000 72 Cascade Bancorp 7,656 238 Cass Information Systems, Inc. 1,650 60 Cathay General Bancorp 14,200 490
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED BANKS - 7.7% - (CONTINUED) Centennial Bank Holdings, Inc. * 16,200 $ 153 Center Financial Corp. 3,400 82 Centerstate Banks of Florida, Inc. 2,400 50 Central Pacific Financial Corp. 8,380 325 Chemical Financial Corp. 6,904 230 Chittenden Corp. 12,816 393 Citizens Banking Corp. of Michigan 11,800 313 City Holding Co. 4,900 200 CityBank Lynwood of Washington 3,600 129 Coastal Financial Corp. of South Carolina 4,785 80 CoBiz, Inc. 4,050 89 Columbia Bancorp of Oregon 2,800 74 Columbia Banking System, Inc. 4,366 153 Community Bancorp of Nevada * 1,800 54 Community Bank System, Inc. 8,200 189 Community Banks, Inc. 6,604 183 Community Trust Bancorp, Inc. 4,135 172 Corus Bankshares, Inc. 10,700 247 CVB Financial Corp. 16,777 243 Enterprise Financial Services Corp. 2,400 78 Farmers Capital Bank Corp. 2,000 68 First Bancorp of North Carolina 3,400 74 First BanCorp of Puerto Rico 19,300 184 First Busey Corp. 4,150 96 First Charter Corp. 8,900 219 First Commonwealth Financial Corp. 19,428 261 First Community Bancorp, Inc. of California 6,302 329 First Community Bancshares, Inc. of Virginia 2,759 109 First Financial Bancorp 9,224 153 First Financial Bankshares, Inc. 5,661 237 First Financial Corp. of Indiana 3,606 128 First Indiana Corp. 3,477 88 First Merchants Corp. 5,127 139 First Midwest Bancorp, Inc. of Illinois 13,700 530 First Regional Bancorp of California * 2,200 75 First Republic Bank of California 6,350 248 First South Bancorp, Inc. of North Carolina 2,300 73 First State Bancorporation of New Mexico 4,800 119 FirstMerit Corp. 21,900 529 FNB Corp. of Pennsylvania 15,829 289 FNB Corp. of Virginia 2,000 83 Fremont General Corp. 18,100 293
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY INDEX FUND EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED BANKS - 7.7% - (CONTINUED) Frontier Financial Corp. 10,950 $ 320 GB&T Bancshares, Inc. 3,700 82 Glacier Bancorp, Inc. 13,944 341 Great Southern Bancorp, Inc. 2,800 83 Greater Bay Bancorp 13,800 363 Greene County Bancshares, Inc. 2,300 91 Hancock Holding Co. 7,424 392 Hanmi Financial Corp. 11,200 252 Harleysville National Corp. 7,970 154 Heartland Financial USA, Inc. 4,000 115 Heritage Commerce Corp. 3,200 85 Home Bancshares, Inc./Conway AR 3,100 75 Horizon Financial Corp. 3,500 84 IBERIABANK Corp. 2,675 158 Independent Bank Corp. of Massachusetts 4,100 148 Independent Bank Corp. of Michigan 6,310 160 Integra Bank Corp. 4,743 131 Interchange Financial Services Corp. of New Jersey 5,000 115 International Bancshares Corp. 12,800 396 Intervest Bancshares Corp. * 1,400 48 Irwin Financial Corp. 5,500 124 ITLA Capital Corp. 1,500 87 Lakeland Bancorp, Inc. 5,373 80 Lakeland Financial Corp. 3,400 87 Macatawa Bank Corp. 4,128 88 MainSource Financial Group, Inc. 4,370 74 MB Financial, Inc. 7,772 292 MBT Financial Corp. 4,200 64 Mercantile Bank Corp. 2,160 81 MetroCorp. Bancshares, Inc. 1,800 38 Mid-State Bancshares 6,100 222 Midwest Banc Holdings, Inc. 4,800 114 Nara Bancorp, Inc. 5,800 121 National Penn Bancshares, Inc. 13,218 268 NBT Bancorp, Inc. 9,504 242 Northern Empire Bancshares * 2,520 74 Old National Bancorp of Indiana 18,495 350 Old Second Bancorp, Inc. 3,838 112 Omega Financial Corp. 3,378 108 Oriental Financial Group, Inc. 5,947 77 Pacific Capital Bancorp 12,833 431
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED BANKS - 7.7% - (CONTINUED) Park National Corp. 3,225 $ 319 Peoples Bancorp, Inc. of Ohio 2,860 85 Pinnacle Financial Partners, Inc. * 4,300 143 Placer Sierra Bancshares 3,300 78 Preferred Bank of California 1,200 72 Premierwest Bancorp, 3,930 63 PrivateBancorp, Inc. 4,900 204 Prosperity Bancshares, Inc. 7,000 242 Provident Bankshares Corp. 9,056 322 R & G Financial Corp., Class B 7,950 61 Renasant Corp. 4,400 135 Republic Bancorp, Inc. of Kentucky, Class A 2,093 53 Republic Bancorp, Inc. of Michigan 20,449 275 Royal Bancshares of Pennsylvania, Inc., Class A 1,275 34 S & T Bancorp, Inc. 7,100 246 Sandy Spring Bancorp, Inc. 4,100 157 Santander BanCorp 1,379 25 SCBT Financial Corp. 2,387 100 Seacoast Banking Corp. of Florida 4,020 100 Security Bank Corp. of Georgia 4,200 96 Shore Bancshares, Inc. 2,300 69 Sierra Bancorp 1,600 47 Signature Bank of New York * 8,100 251 Simmons First National Corp., Class A 3,900 123 Smithtown Bancorp, Inc. 2,200 60 Southside Bancshares, Inc. 2,930 75 Southwest Bancorp, Inc. of Oklahoma 4,000 111 State National Bancshares, Inc. 2,900 112 Sterling Bancorp of New York 5,129 101 Sterling Bancshares, Inc. of Texas 18,788 245 Sterling Financial Corp. of Pennsylvania 6,957 165 Sterling Financial Corp. of Washington 10,454 353 Suffolk Bancorp 2,900 111 Sun Bancorp, Inc. of New Jersey * 3,921 83 Superior Bancorp * 4,800 54 Susquehanna Bancshares, Inc. 14,279 384 SVB Financial Group * 9,700 452 SY Bancorp, Inc. 3,485 98 Taylor Capital Group, Inc. 1,600 59 Texas Capital Bancshares, Inc. * 6,400 127 Texas United Bancshares, Inc. 2,500 86 Tompkins Trustco, Inc. 1,853 84
EQUITY INDEX FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED BANKS - 7.7% - (CONTINUED) Trico Bancshares 3,800 $ 103 Trustco Bank Corp. of New York 20,594 229 Trustmark Corp. 13,400 438 UCBH Holdings, Inc. 26,000 457 UMB Financial Corp. 8,712 318 Umpqua Holdings Corp. 15,431 454 Union Bankshares Corp. of Virginia 3,700 113 United Bankshares, Inc. 10,200 394 United Community Banks, Inc. of Georgia 9,300 301 United Security Bancshares of California 2,000 48 Univest Corp. of Pennsylvania 3,250 99 USB Holding Co., Inc. 3,374 81 USB Holdings Co., Inc. - Fractional Shares 50,000 -- Vineyard National Bancorp 2,550 59 Virginia Commerce Bancorp * 4,284 85 Virginia Financial Group, Inc. 3,000 84 W. Holding Co., Inc. 29,900 178 Washington Trust Bancorp, Inc. 3,300 92 WesBanco, Inc. 6,000 201 West Bancorporation 4,959 88 West Coast Bancorp of Oregon 4,207 146 Westamerica Bancorporation 8,600 435 Western Alliance Bancorp * 3,600 125 Wilshire Bancorp, Inc. 4,200 80 Wintrust Financial Corp. 7,000 336 Yardville National Bancorp 2,700 102 ---------- 28,913 ---------- BEVERAGES - 0.1% Boston Beer Co., Inc., Class A * 2,600 94 Coca-Cola Bottling Co. Consolidated 1,327 91 Farmer Bros. Co. 2,000 43 Green Mountain Coffee Roasters, Inc. * 1,300 64 Jones Soda Co. * 7,000 86 National Beverage Corp. * 2,300 32 Overland Beverage Distributing 20 -- Peet's Coffee & Tea, Inc. * 3,900 102 ---------- 512 ---------- BIOTECHNOLOGY - 2.3% Advanced Magnetics, Inc. * 2,200 131 ADVENTRX Pharmaceuticals, Inc. * 16,000 47 Affymetrix, Inc. * 18,500 427 Alexion Pharmaceuticals, Inc. * 9,700 392
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED BIOTECHNOLOGY - 2.3% - (CONTINUED) American Oriental Bioengineering, Inc. * 12,300 $ 144 Applera Corp. (Celera Genomics Group) * 21,100 295 Arena Pharmaceuticals, Inc. * 13,000 168 Ariad Pharmaceuticals, Inc. * 17,800 92 Bio-Rad Laboratories, Inc., Class A * 5,100 421 Biocryst Pharmaceuticals, Inc. * 6,500 75 Cambrex Corp. 7,300 166 Cell Genesys, Inc. * 14,300 49 Coley Pharmaceutical Group, Inc. * 4,900 48 Cotherix, Inc. * 5,500 74 Cytokinetics, Inc. * 7,400 55 DeCODE Genetics, Inc. * 17,700 80 Digene Corp. * 4,800 230 Diversa Corp. * 8,300 90 Encysive Pharmaceuticals, Inc. * 16,300 69 Enzo Biochem, Inc. * 7,507 107 Enzon Pharmaceuticals, Inc. * 12,000 102 Exelixis, Inc. * 24,300 219 Genitope Corp. * 8,300 29 Genomic Health, Inc. * 3,500 65 Geron Corp. * 18,100 159 GTX, Inc. * 3,400 61 Hana Biosciences, Inc. * 8,200 52 Human Genome Sciences, Inc. * 36,133 450 ICOS Corp. * 18,000 608 Illumina, Inc. * 12,500 491 Incyte Corp. * 23,000 134 Integra LifeSciences Holdings Corp. * 5,200 221 InterMune, Inc. * 7,100 218 Keryx Biopharmaceuticals, Inc. * 11,800 157 Lexicon Genetics, Inc. * 19,500 70 Lifecell Corp. * 9,200 222 Martek Biosciences Corp. * 8,800 205 Maxygen, Inc. * 8,100 87 Metabasis Therapeutics, Inc. * 6,000 45 Momenta Pharmaceuticals, Inc. * 6,200 98 Monogram Biosciences, Inc. * 37,000 66 Myriad Genetics, Inc. * 10,800 338 Nektar Therapeutics * 24,600 374 Northfield Laboratories, Inc. * 7,000 29 Novavax, Inc. * 17,500 72 Panacos Pharmaceuticals, Inc. * 13,800 55
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED BIOTECHNOLOGY - 2.3% - (CONTINUED) Peregrine Pharmaceuticals, Inc. * 54,000 $ 63 Regeneron Pharmaceuticals, Inc. * 14,300 287 Sangamo BioSciences, Inc. * 8,200 54 Savient Pharmaceuticals, Inc. * 14,752 165 Sirna Therapeutics, Inc. * 11,000 143 SuperGen, Inc. * 14,100 72 Telik, Inc. * 14,400 64 ---------- 8,635 ---------- BUILDING MATERIALS - 0.8% AAON, Inc. 2,600 68 Apogee Enterprises, Inc. 7,700 149 Builders FirstSource, Inc. * 4,200 75 Comfort Systems USA, Inc. 11,100 140 Drew Industries, Inc. * 5,100 133 ElkCorp 5,607 230 Genlyte Group, Inc. * 6,800 531 Goodman Global, Inc. * 6,700 115 Interline Brands, Inc. * 7,430 167 LSI Industries, Inc. 5,912 117 NCI Building Systems, Inc. * 5,600 290 PGT, Inc. * 2,900 37 Simpson Manufacturing Co., Inc. 10,200 323 Texas Industries, Inc. 6,300 405 Trex Co., Inc. * 3,300 76 U.S. Concrete, Inc. * 9,200 65 Universal Forest Products, Inc. 4,600 214 ---------- 3,135 ---------- CHEMICALS - 1.8% American Vanguard Corp. 5,000 79 Arch Chemicals, Inc. 6,600 220 Balchem Corp. 3,300 85 CF Industries Holdings, Inc. 15,100 387 Ferro Corp. 11,750 243 Fuller (H.B.) Co. 16,200 418 Georgia Gulf Corp. 9,400 182 Grace (W.R.) & Co. * 18,500 366 Hercules, Inc. * 31,200 602 Innospec, Inc. 3,400 158 Kronos Worldwide, Inc. 778 25 MacDermid, Inc. 7,600 259 Minerals Technologies, Inc. 5,400 317 NewMarket Corp. 4,700 278
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED CHEMICALS - 1.8% - (CONTINUED) NL Industries, Inc. 2,300 $ 24 Olin Corp. 19,800 327 OM Group, Inc. * 8,000 362 Omnova Solutions, Inc. * 12,200 56 Pioneer Cos., Inc. * 3,300 95 PolyOne Corp. * 25,400 190 Rockwood Holdings, Inc. * 9,697 245 Schulman (A.), Inc. 6,600 147 Sensient Technologies Corp. 12,700 312 Spartech Corp. 8,800 231 Stepan Co. 1,700 54 Symyx Technologies, Inc. * 9,300 201 Terra Industries, Inc. * 26,100 313 Tronox, Inc., Class B 11,400 180 UAP Holding Corp. 14,000 353 US BioEnergy Corp. * 718 12 Zoltek Cos., Inc. * 4,400 87 ---------- 6,808 ---------- COAL - 0.1% Alpha Natural Resources, Inc. * 14,170 202 International Coal Group, Inc. * 31,200 170 James River Coal Co. * 4,900 46 Westmoreland Coal Co. * 1,900 37 ---------- 455 ---------- COMMERCIAL SERVICES - 5.6% Aaron Rents, Inc. 12,050 347 ABM Industries, Inc. 12,048 274 Administaff, Inc. 6,300 269 Advance America Cash Advance Centers, Inc. 18,610 273 Advisory Board (The) Co. * 5,100 273 Affymax, Inc. * 159 5 Albany Molecular Research, Inc. * 7,300 77 AMN Healthcare Services, Inc. * 8,900 245 Arbitron, Inc. 8,300 360 Bankrate, Inc. * 2,800 106 Banta Corp. 6,650 242 Barrett Business Services 1,900 44 BearingPoint, Inc. * 51,200 403 Bowne & Co., Inc. 8,200 131 Bright Horizons Family Solutions, Inc. * 7,200 278 Capella Education Co. * 157 4 CBIZ, Inc. * 14,900 104
EQUITY INDEX FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED COMMERCIAL SERVICES - 5.6% - (CONTINUED) CDI Corp. 3,600 $ 90 Central Parking Corp. 2,744 49 Cenveo, Inc. * 14,570 309 Chemed Corp. 7,200 266 Clark, Inc. 4,800 80 Clayton Holdings, Inc. * 2,600 49 Coinmach Service Corp., Class A 7,500 89 Coinstar, Inc. * 7,600 232 Compass Diversified Trust 3,600 62 Consolidated Graphics, Inc. * 3,100 183 Corinthian Colleges, Inc. * 23,600 322 Cornell Cos., Inc. * 3,200 59 Corvel Corp. * 2,125 101 CoStar Group, Inc. * 4,600 246 CRA International, Inc. * 3,100 162 Cross Country Healthcare, Inc. * 8,800 192 Deluxe Corp. 14,000 353 DeVry, Inc. 16,700 468 Diamond Management & Technology Consultants, Inc. 8,300 103 Dollar Financial Corp. * 3,500 97 Dollar Thrifty Automotive Group * 6,800 310 DynCorp International, Inc., Class A * 6,900 109 Educate, Inc. * 4,800 34 Electro Rent Corp. * 5,374 90 Euronet Worldwide, Inc. * 9,600 285 ExlService Holdings, Inc. * 1,456 31 Exponent, Inc. * 4,100 76 First Advantage Corp., Class A * 2,000 46 First Consulting Group, Inc. * 5,900 81 Forrester Research, Inc. * 3,900 106 FTI Consulting, Inc. * 10,925 305 Gartner, Inc. * 15,600 309 Geo Group (The), Inc. * 5,300 199 Gevity HR, Inc. 7,200 170 Global Cash Access Holdings, Inc. * 9,100 148 H&E Equipment Services, Inc. * 3,100 77 Healthcare Services Group 7,525 218 Healthspring, Inc. * 5,100 104 Heartland Payment Systems, Inc. 4,000 113 Heidrick & Struggles International, Inc. * 5,000 212 Home Solutions of America, Inc. * 11,800 69 Hudson Highland Group, Inc. * 6,700 112
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED COMMERCIAL SERVICES - 5.6% - (CONTINUED) Huron Consulting Group, Inc. * 4,800 $ 218 ICT Group, Inc. * 1,800 57 Integrated Electrical Services, Inc. * 4,400 78 Interactive Data Corp. 9,900 238 Jackson Hewitt Tax Service, Inc. 9,700 329 Kelly Services, Inc., Class A 5,529 160 Kendle International, Inc. * 3,400 107 Kenexa Corp. * 4,400 146 Kforce, Inc. * 8,000 97 Korn/Ferry International * 11,700 269 Labor Ready, Inc. * 15,000 275 Landauer, Inc. 2,500 131 LECG Corp. * 6,700 124 Live Nation, Inc. * 17,500 392 MAXIMUS, Inc. 5,900 182 McGrath Rentcorp 5,964 183 Medifast, Inc. * 3,200 40 Midas, Inc. * 4,400 101 Monro Muffler, Inc. 3,300 116 Morningstar, Inc. * 3,800 171 MPS Group, Inc. * 28,400 403 Navigant Consulting, Inc. * 11,700 231 Net 1 UEPS Technologies, Inc. * 13,700 405 On Assignment, Inc. * 7,200 85 Parexel International Corp. * 7,400 214 PeopleSupport, Inc. * 5,300 111 PharmaNet Development Group, Inc. * 4,950 109 PHH Corp. * 14,600 421 PRA International * 4,900 124 Pre-Paid Legal Services, Inc. * 2,700 106 Providence Service (The) Corp. * 3,330 84 Rent-A-Center, Inc. * 19,100 564 Resources Connection, Inc. * 13,200 420 Rewards Network, Inc. * 7,259 50 Rollins, Inc. 8,100 179 SAIC, Inc. * 23,600 420 Senomyx, Inc. * 8,640 112 Sotheby's 17,500 543 Source Interlink Cos., Inc. * 9,600 78 Spherion Corp. * 15,830 118 Standard Parking Corp. * 1,400 54 Startek, Inc. 3,100 42
NORTHERN FUNDS QUARTERLY REPORT 6 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED COMMERCIAL SERVICES - 5.6% - (CONTINUED) Stewart Enterprises, Inc., Class A 28,900 $ 181 Strayer Education, Inc. 3,900 414 Team, Inc. * 1,900 66 TeleTech Holdings, Inc. * 9,000 215 TNS, Inc. * 6,600 127 Universal Technical Institute, Inc. * 6,300 140 Valassis Communications, Inc. * 13,127 190 Vertrue, Inc. * 2,000 77 Viad Corp. 6,100 248 Volt Information Sciences, Inc. * 2,250 113 Watson Wyatt Worldwide, Inc., Class A 11,600 524 Wright Express Corp. * 11,090 346 ---------- 21,079 ---------- COMPUTERS - 2.7% 3D Systems Corp. * 4,100 65 Agilysys, Inc. 8,387 140 Ansoft Corp. * 4,500 125 BISYS Group (The), Inc. * 33,100 427 Brocade Communications Systems, Inc. * 75,000 616 CACI International, Inc., Class A * 8,400 475 CIBER, Inc. * 15,000 102 COMSYS IT Partners, Inc. * 4,500 91 Comtech Group, Inc. * 4,100 75 Covansys Corp. * 8,500 195 Echelon Corp. * 8,800 70 Electronics for Imaging, Inc. * 15,900 423 Gateway, Inc. * 74,871 150 Henry (Jack) & Associates, Inc. 21,800 467 Hutchinson Technology, Inc. * 7,015 165 iGate Corp. * 6,000 41 IHS, Inc., Class A * 6,400 253 Imation Corp. 9,600 446 Integral Systems, Inc. of Maryland 3,050 71 InterVoice, Inc. * 10,600 81 Isilon Systems, Inc. * 304 8 Kanbay International, Inc. * 9,100 262 Komag, Inc. * 8,400 318 Kronos, Inc. * 8,818 324 Magma Design Automation, Inc. * 10,500 94 Manhattan Associates, Inc. * 7,500 226 Maxwell Technologies, Inc. * 3,900 54 McData Corp., Class A * 42,300 235
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED COMPUTERS - 2.7% - (CONTINUED) Mentor Graphics Corp. * 22,000 $ 397 Mercury Computer Systems, Inc. * 5,900 79 Micros Systems, Inc. * 10,600 559 Mobility Electronics, Inc. * 8,500 28 MTS Systems Corp. 5,000 193 Ness Technologies, Inc. * 7,500 107 Netscout Systems, Inc. * 7,300 61 Palm, Inc. * 25,206 355 Perot Systems Corp., Class A * 23,800 390 Quantum Corp. * 57,500 133 Rackable Systems, Inc. * 7,600 235 Radiant Systems, Inc. * 7,200 75 Radisys Corp. * 5,800 97 SI International, Inc. * 3,600 117 Sigma Designs, Inc. * 6,200 158 Silicon Storage Technology, Inc. * 24,900 112 SRA International, Inc., Class A * 10,500 281 Stratasys, Inc. * 2,850 89 SYKES Enterprises, Inc. * 8,000 141 Synaptics, Inc. * 6,900 205 Syntel, Inc. 2,400 64 Talx Corp. 8,857 243 Tyler Technologies, Inc. * 10,800 152 ---------- 10,270 ---------- COSMETICS/PERSONAL CARE - 0.1% Chattem, Inc. * 4,800 240 Elizabeth Arden, Inc. * 7,100 135 Inter Parfums, Inc. 1,400 27 Parlux Fragrances, Inc. * 3,500 20 Revlon, Inc., Class A * 46,300 59 ---------- 481 ---------- DISTRIBUTION/WHOLESALE - 0.7% Beacon Roofing Supply, Inc. * 12,000 226 BlueLinx Holdings, Inc. 3,700 38 Brightpoint, Inc. * 13,850 186 Building Material Holding Corp. 7,900 195 Central European Distribution Corp. * 8,650 257 Core-Mark Holding Co., Inc. * 2,800 93 Directed Electronics, Inc. * 2,800 32 LKQ Corp. * 12,300 283 MWI Veterinary Supply, Inc. * 1,600 52 NuCo2, Inc. * 4,200 103
EQUITY INDEX FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED DISTRIBUTION/WHOLESALE - 0.7% - (CONTINUED) Owens & Minor, Inc. 11,062 $ 346 Scansource, Inc. * 7,100 216 United Stationers, Inc. * 8,692 406 Watsco, Inc. 7,650 361 ---------- 2,794 ---------- DIVERSIFIED FINANCIAL SERVICES - 1.9% Accredited Home Lenders Holding Co. * 5,870 160 Advanta Corp., Class B 5,300 231 Asset Acceptance Capital Corp. * 4,300 72 Asta Funding, Inc. 3,300 100 Calamos Asset Management, Inc., Class A 6,400 172 CharterMac 14,300 307 Cityscape Financial Corp. * 3,800 -- Cohen & Steers, Inc. 3,600 145 CompuCredit Corp. * 5,700 227 Credit Acceptance Corp. * 2,752 92 Doral Financial Corp. 24,700 71 eSpeed, Inc., Class A * 5,600 49 Federal Agricultural Mortgage Corp., Class C 3,100 84 Financial Federal Corp. 7,400 218 Friedman Billings Ramsey Group, Inc., Class A 40,300 322 GAMCO Investors, Inc., Class A 1,600 62 GFI Group, Inc. * 3,220 200 Greenhill & Co., Inc. 4,800 354 International Securities Exchange, Inc. 10,400 487 KBW, Inc. * 168 5 Knight Capital Group, Inc., Class A * 28,700 550 LaBranche & Co., Inc. * 14,600 143 MarketAxess Holdings, Inc. * 8,700 118 Marlin Business Services Corp. * 3,200 77 National Financial Partners Corp. 10,299 453 NewStar Financial, Inc. * 157 3 Ocwen Financial Corp. * 9,400 149 optionsXpress Holdings, Inc. 5,730 130 Penson Worldwide, Inc. * 2,000 55 Piper Jaffray Cos. * 5,091 332 Portfolio Recovery Associates, Inc. * 4,400 205 Sanders Morris Harris Group, Inc. 3,800 48 Stifel Financial Corp. * 3,333 131 SWS Group, Inc. 4,277 153 Thomas Weisel Partners Group, Inc. * 2,000 42 TradeStation Group, Inc. * 7,000 96
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED DIVERSIFIED FINANCIAL SERVICES - 1.9% - (CONTINUED) United PanAm Financial Corp. * 2,800 $ 39 Waddell & Reed Financial, Inc., Class A 23,300 637 World Acceptance Corp. * 5,000 235 ---------- 6,954 ---------- ELECTRIC - 1.8% Allete, Inc. 6,900 321 Aquila, Inc. * 102,700 483 Avista Corp. 13,500 342 Black Hills Corp. 9,100 336 CH Energy Group, Inc. 4,300 227 Cleco Corp. 15,500 391 Duquesne Light Holdings, Inc. 24,300 482 El Paso Electric Co. * 13,300 324 Empire District Electric (The) Co. 8,200 203 Idacorp, Inc. 11,700 452 ITC Holdings Corp. 4,100 164 MGE Energy, Inc. 5,625 206 NorthWestern Corp. 9,800 347 Ormat Technologies, Inc. 2,200 81 Otter Tail Corp. 8,100 252 Pike Electric Corp. * 4,300 70 PNM Resources, Inc. 20,800 647 Portland General Electric Co. 7,400 202 UIL Holdings Corp. 6,733 284 Unisource Energy Corp. 9,620 351 Westar Energy, Inc. 23,900 620 ---------- 6,785 ---------- ELECTRICAL COMPONENTS & EQUIPMENT - 0.9% Advanced Energy Industries, Inc. * 9,600 181 American Superconductor Corp. * 9,000 88 Belden CDT, Inc. 11,712 458 Capstone Turbine Corp. * 28,200 35 China BAK Battery, Inc. * 7,350 48 Color Kinetics, Inc. * 3,700 79 Encore Wire Corp. 6,400 141 Energy Conversion Devices, Inc. * 10,700 364 EnerSys * 12,800 205 General Cable Corp. * 13,800 603 GrafTech International Ltd. * 26,900 186 Greatbatch, Inc. * 6,000 161 Insteel Industries, Inc. 3,900 69 Lamson & Sessions (The) Co. * 3,800 92
NORTHERN FUNDS QUARTERLY REPORT 8 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED ELECTRICAL COMPONENTS & EQUIPMENT - 0.9% - (CONTINUED) Littelfuse, Inc. * 6,100 $ 194 Medis Technologies Ltd. * 5,896 103 Powell Industries, Inc. * 2,200 69 Power-One, Inc. * 19,200 140 Superior Essex, Inc. * 5,550 185 Universal Display Corp. * 6,500 98 Vicor Corp. 5,400 60 ---------- 3,559 ---------- ELECTRONICS - 2.5% American Science & Engineering, Inc. * 2,500 149 Analogic Corp. 3,800 213 Badger Meter, Inc. 3,900 108 Bel Fuse, Inc., Class B 2,800 97 Benchmark Electronics, Inc. * 17,663 430 Brady Corp., Class A 12,338 460 Checkpoint Systems, Inc. * 10,700 216 Cogent, Inc. * 11,900 131 Coherent, Inc. * 8,500 268 CTS Corp. 9,880 155 Cubic Corp. 4,400 95 Cymer, Inc. * 10,173 447 Daktronics, Inc. 10,700 394 Dionex Corp. * 5,500 312 Eagle Test Systems, Inc. * 2,200 32 Electro Scientific Industries, Inc. * 8,000 161 Excel Technology, Inc. * 3,400 87 FEI Co. * 6,600 174 Flextronics International Ltd. * 7,122 82 Flir Systems, Inc. * 18,000 573 II-VI, Inc. * 6,500 182 Ionatron, Inc. * 9,040 37 Itron, Inc. * 7,000 363 Kemet Corp. * 23,800 174 L-1 Identity Solutions, Inc. * 17,824 270 LoJack Corp. * 5,100 87 Measurement Specialties, Inc. * 3,900 84 Methode Electronics, Inc. 10,242 111 Molecular Devices Corp. * 4,800 101 Multi-Fineline Electronix, Inc. * 2,300 47 OSI Systems, Inc. * 4,200 88 OYO Geospace Corp. * 1,100 64 Park Electrochemical Corp. 5,500 141
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED ELECTRONICS - 2.5% - (CONTINUED) Paxar Corp. * 11,320 $ 261 Photon Dynamics, Inc. * 4,700 55 Plexus Corp. * 12,600 301 RAE Systems, Inc. * 11,500 37 Rofin-Sinar Technologies, Inc. * 4,200 254 Rogers Corp. * 4,800 284 Sonic Solutions, Inc. * 7,000 114 Taser International, Inc. * 17,100 130 Technitrol, Inc. 11,200 268 TTM Technologies, Inc. * 11,500 130 Varian, Inc. * 8,500 381 Watts Water Technologies, Inc., Class A 7,100 292 Woodward Governor Co. 8,300 330 X-Rite, Inc. 6,900 85 Zygo Corp. * 5,100 84 ---------- 9,339 ---------- ENERGY - ALTERNATE SOURCES - 0.4% Aventine Renewable Energy Holdings, Inc. * 8,317 196 Evergreen Energy, Inc. * 19,500 193 Evergreen Solar, Inc. * 18,600 141 First Solar, Inc. * 6,037 180 FuelCell Energy, Inc. * 14,500 94 Headwaters, Inc. * 11,600 278 MGP Ingredients, Inc. 2,600 59 Pacific Ethanol, Inc. * 6,600 101 Plug Power, Inc. * 19,871 77 Quantum Fuel Systems Technologies Worldwide, Inc. * 13,100 21 Sunpower Corp., Class A * 2,800 104 Syntroleum Corp. * 11,600 40 VeraSun Energy Corp. * 5,165 102 ---------- 1,586 ---------- ENGINEERING & CONSTRUCTION - 0.6% Dycom Industries, Inc. * 11,100 235 EMCOR Group, Inc. * 8,600 489 ENGlobal Corp. * 4,800 31 Granite Construction, Inc. 9,462 476 Infrasource Services, Inc. * 7,300 159 Insituform Technologies, Inc., Class A * 7,500 194 Layne Christensen Co. * 3,300 108 Perini Corp. * 6,000 185 Stanley, Inc. * 162 3
EQUITY INDEX FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED ENGINEERING & CONSTRUCTION - 0.6% - (CONTINUED) Sterling Construction Co., Inc. * 2,400 $ 52 Washington Group International, Inc. * 7,900 472 ---------- 2,404 ---------- ENTERTAINMENT - 0.8% Bally Technologies, Inc. * 14,300 267 Bluegreen Corp. * 5,800 75 Carmike Cinemas, Inc. 3,500 71 Century Casinos, Inc. * 5,500 61 Churchill Downs, Inc. 2,400 103 Dover Downs Gaming & Entertainment, Inc. 3,995 53 Great Wolf Resorts, Inc. * 7,360 103 Isle of Capri Casinos, Inc. * 4,300 114 Lakes Entertainment, Inc. * 6,500 70 Macrovision Corp. * 14,200 401 Magna Entertainment Corp., Class A * 11,000 50 Pinnacle Entertainment, Inc. * 13,200 438 Progressive Gaming International Corp. * 9,700 88 Shuffle Master, Inc. * 9,550 250 Six Flags, Inc. * 19,600 103 Speedway Motorsports, Inc. 4,200 161 Steinway Musical Instruments * 2,000 62 Vail Resorts, Inc. * 8,300 372 ---------- 2,842 ---------- ENVIRONMENTAL CONTROL - 0.6% American Ecology Corp. 4,300 80 Basin Water, Inc. * 1,800 12 Calgon Carbon Corp. * 10,900 68 Casella Waste Systems, Inc., Class A * 6,000 73 Clean Harbors, Inc. * 4,300 208 Darling International, Inc. * 20,300 112 Metal Management, Inc. 7,100 269 Mine Safety Appliances Co. 8,500 312 Rentech, Inc. * 38,000 143 Synagro Technologies, Inc. 16,800 74 Tetra Tech, Inc. * 15,791 286 Waste Connections, Inc. * 12,250 509 Waste Industries USA, Inc. 2,100 64 Waste Services, Inc. * 7,666 75 ---------- 2,285 ---------- FOOD - 1.4% Arden Group, Inc., Class A 400 50 Chiquita Brands International, Inc. 11,600 185
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED FOOD - 1.4% - (CONTINUED) Diamond Foods, Inc. 4,400 $ 84 Flowers Foods, Inc. 14,225 384 Gold Kist, Inc. * 14,000 294 Great Atlantic & Pacific Tea Co. 5,300 136 Hain Celestial Group, Inc. * 8,500 265 Imperial Sugar Co. 3,200 78 Ingles Markets, Inc., Class A 3,300 98 J & J Snack Foods Corp. 3,800 157 Lance, Inc. 8,300 167 M & F Worldwide Corp. * 2,900 73 Nash Finch Co. 3,600 98 Pathmark Stores, Inc. * 14,300 160 Performance Food Group Co. * 9,500 263 Pilgrims Pride Corp. 11,100 327 Premium Standard Farms, Inc. 3,900 72 Ralcorp Holdings, Inc. * 7,300 372 Ruddick Corp. 10,900 303 Sanderson Farms, Inc. 4,600 139 Seaboard Corp. 120 212 Spartan Stores, Inc. 5,800 121 Tootsie Roll Industries, Inc. 9,782 320 TreeHouse Foods, Inc. * 8,600 268 United Natural Foods, Inc. * 11,600 417 Village Super Market, Class A 400 34 Weis Markets, Inc. 2,600 104 Wild Oats Markets, Inc. * 7,950 114 ---------- 5,295 ---------- FOREST PRODUCTS & PAPER - 0.6% Bowater, Inc. 15,300 344 Buckeye Technologies, Inc. * 10,300 123 Caraustar Industries, Inc. * 8,000 65 Deltic Timber Corp. 2,800 156 Glatfelter 12,200 189 Mercer International, Inc. * 7,400 88 Neenah Paper, Inc. 4,200 148 Potlatch Corp. 10,560 463 Rock-Tenn Co., Class A 8,740 237 Schweitzer-Mauduit International, Inc. 4,200 110 Wausau Paper Corp. 12,342 185 Xerium Technologies, Inc. 5,400 53 ---------- 2,161 ----------
NORTHERN FUNDS QUARTERLY REPORT 10 EQUITY INDEX FUNDS EQUITY INDEX FUND SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED GAS - 1.0% Cascade Natural Gas Corp. 3,100 $ 80 EnergySouth, Inc. 1,850 74 Laclede Group (The), Inc. 5,900 207 New Jersey Resources Corp. 7,650 372 Nicor, Inc. 12,200 571 Northwest Natural Gas Co. 7,550 321 Peoples Energy Corp. 10,550 470 Piedmont Natural Gas Co., Inc. 20,800 556 South Jersey Industries, Inc. 8,026 268 Southwest Gas Corp. 11,000 422 WGL Holdings, Inc. 13,400 437 ---------- 3,778 ---------- HAND/MACHINE TOOLS - 0.3% Baldor Electric Co. 8,853 296 Franklin Electric Co., Inc. 6,200 318 Raser Technologies, Inc. * 6,000 37 Regal-Beloit Corp. 8,441 443 ---------- 1,094 ---------- HEALTHCARE - PRODUCTS - 3.3% Abaxis, Inc. * 5,500 106 Abiomed, Inc. * 6,400 90 Adeza Biomedical Corp. * 4,100 61 Align Technology, Inc. * 15,300 214 American Medical Systems Holdings, Inc. * 19,200 356 Angiodynamics, Inc. * 3,500 75 Arrow International, Inc. 6,200 219 Arthrocare Corp. * 7,200 287 Aspect Medical Systems, Inc. * 4,600 86 Biosite, Inc. * 4,500 220 Bruker BioSciences Corp. * 11,464 86 Candela Corp. * 6,500 80 Cepheid, Inc. * 14,900 127 Cerus Corp. * 7,900 46 Conceptus, Inc. * 6,200 132 Conmed Corp. * 7,725 179 Cyberonics, Inc. * 5,900 122 Datascope Corp. 3,600 131 DexCom, Inc. * 4,600 45 DJO, Inc. * 6,200 265 ev3, Inc. * 4,500 78 Foxhollow Technologies, Inc. * 5,400 116 Haemonetics Corp. of Massachusetts * 7,300 329
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED HEALTHCARE - PRODUCTS - 3.3% - (CONTINUED) Hansen Medical, Inc., * 737 $ 8 HealthTronics, Inc. * 9,600 64 Hologic, Inc. * 14,400 681 ICU Medical, Inc. * 3,900 159 Immucor, Inc. * 18,580 543 Intralase Corp. * 5,800 130 Invacare Corp. 8,512 209 Inverness Medical Innovations, Inc. * 9,200 356 IRIS International, Inc. * 4,800 61 Kensey Nash Corp. * 3,100 99 Kyphon, Inc. * 12,100 489 LCA-Vision, Inc. 5,750 198 Luminex Corp. * 8,800 112 Medical Action Industries, Inc. * 2,600 84 Mentor Corp. 10,000 489 Merge Technologies, Inc. * 6,100 40 Meridian Bioscience, Inc. 5,750 141 Merit Medical Systems, Inc. * 7,467 118 Natus Medical, Inc. * 5,800 96 Neurometrix, Inc. * 3,400 51 Northstar Neuroscience, Inc. * 3,200 46 NuVasive, Inc. * 9,000 208 Oakley, Inc. 6,800 136 OraSure Technologies, Inc. * 12,600 104 Palomar Medical Technologies, Inc. * 4,800 243 PolyMedica Corp. 6,300 255 PSS World Medical, Inc. * 18,550 362 Quidel Corp. * 8,300 113 Sirona Dental Systems, Inc. 4,800 185 Solexa, Inc. * 6,500 85 SonoSite, Inc. * 4,500 139 Spectranetics Corp. * 8,400 95 Stereotaxis, Inc. * 6,400 66 STERIS Corp. 18,600 468 SurModics, Inc. * 4,500 140 Symmetry Medical, Inc. * 9,570 132 Thermogenesis Corp. * 15,000 65 Thoratec Corp. * 14,485 255 Ventana Medical Systems, Inc. * 7,900 340 Viasys Healthcare, Inc. * 8,900 248 Visicu, Inc. * 2,000 22 Vital Images, Inc. * 3,700 129
EQUITY INDEX FUNDS 11 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED HEALTHCARE - PRODUCTS - 3.3% - (CONTINUED) Vital Signs, Inc. 1,900 $ 95 West Pharmaceutical Services, Inc. 8,852 453 Wright Medical Group, Inc. * 9,400 219 Young Innovations, Inc. 1,400 47 Zoll Medical Corp. * 2,600 151 ---------- 12,379 ---------- HEALTHCARE - SERVICES - 1.6% Air Methods Corp. * 2,900 81 Alliance Imaging, Inc. * 4,500 30 Amedisys, Inc. * 6,134 202 AMERIGROUP Corp. * 14,200 510 Amsurg Corp. * 8,200 189 Apria Healthcare Group, Inc. * 11,600 309 Bio-Reference Labs, Inc. * 2,800 63 Capital Senior Living Corp. * 6,200 66 Centene Corp. * 11,900 292 Five Star Quality Care, Inc. * 8,600 96 Genesis HealthCare Corp. * 5,350 253 Gentiva Health Services, Inc. * 7,400 141 Healthways, Inc. * 9,500 453 Horizon Health Corp. * 4,100 80 Hythiam, Inc. * 7,200 66 Kindred Healthcare, Inc. * 7,800 197 LHC Group, Inc. * 3,200 91 Magellan Health Services, Inc. * 10,100 436 Matria Healthcare, Inc. * 5,700 164 Medcath Corp. * 2,400 66 Molina Healthcare, Inc. * 3,300 107 National Healthcare Corp. 1,700 94 Nighthawk Radiology Holdings, Inc. * 1,700 43 Odyssey HealthCare, Inc. * 9,475 126 Option Care, Inc. 7,400 105 Psychiatric Solutions, Inc. * 14,500 544 Radiation Therapy Services, Inc. * 3,400 107 RehabCare Group, Inc. * 4,700 70 Res-Care, Inc. * 6,100 111 Sun Healthcare Group, Inc. * 6,300 80 Sunrise Senior Living, Inc. * 12,200 375 Symbion, Inc. * 5,100 94 United Surgical Partners International, Inc. * 12,200 346 VistaCare, Inc., Class A * 3,100 31 ---------- 6,018 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED HOLDING COMPANIES - DIVERSIFIED - 0.0% Resource America, Inc., Class A 4,300 $ 114 Star Maritime Acquisition Corp. * 5,200 51 ---------- 165 ---------- HOME BUILDERS - 0.7% Amrep Corp. 400 49 Brookfield Homes Corp. 3,467 130 Cavco Industries, Inc. * 1,700 60 Champion Enterprises, Inc. * 20,908 196 Fleetwood Enterprises, Inc. * 17,500 138 Hovnanian Enterprises, Inc., Class A * 13,700 464 Levitt Corp., Class A 4,500 55 M/I Homes, Inc. 3,300 126 Meritage Homes Corp. * 6,200 296 Monaco Coach Corp. 7,300 103 Orleans Homebuilders, Inc. 1,300 25 Palm Harbor Homes, Inc. * 2,812 39 Skyline Corp. 1,900 76 Technical Olympic USA, Inc. 5,400 55 WCI Communities, Inc. * 9,200 177 Williams Scotsman International, Inc. * 8,200 161 Winnebago Industries, Inc. 9,000 296 ---------- 2,446 ---------- HOME FURNISHINGS - 0.5% American Woodmark Corp. 3,300 138 Audiovox Corp., Class A * 4,600 65 DTS, Inc. * 4,800 116 Ethan Allen Interiors, Inc. 9,100 329 Furniture Brands International, Inc. 12,400 201 Hooker Furniture Corp. 2,900 45 Kimball International, Inc., Class B 6,756 164 La-Z-Boy, Inc. 14,200 169 Sealy Corp. 5,700 84 Stanley Furniture Co., Inc. 3,200 69 Tempur-Pedic International, Inc. * 13,800 282 TiVo, Inc. * 22,200 114 Universal Electronics, Inc. * 3,800 80 ---------- 1,856 ---------- HOUSEHOLD PRODUCTS/WARES - 0.9% ACCO Brands Corp. * 12,400 328 American Greetings Corp., Class A 14,600 349 Blyth, Inc. 7,100 147 Central Garden and Pet Co. * 5,900 286
NORTHERN FUNDS QUARTERLY REPORT 12 EQUITY INDEX FUNDS EQUITY INDEX FUND SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED HOUSEHOLD PRODUCTS/WARES - 0.9% - (CONTINUED) CSS Industries, Inc. 1,900 $ 67 Ennis, Inc. 7,000 171 Fossil, Inc. * 11,900 269 Harland (John H.) Co. 7,400 371 Playtex Products, Inc. * 15,300 220 Prestige Brands Holdings, Inc. * 9,110 119 Russ Berrie & Co., Inc. * 3,200 49 Spectrum Brands, Inc. * 10,100 110 Standard Register (The) Co. 4,900 59 Tupperware Brands Corp. 16,700 378 WD-40 Co. 4,570 159 Yankee Candle Co., Inc. 11,200 384 ---------- 3,466 ---------- HOUSEWARES - 0.0% Lifetime Brands, Inc. 3,100 51 National Presto Industries, Inc. 1,300 78 ---------- 129 ---------- INSURANCE - 2.6% 21st Century Insurance Group 9,000 159 Affirmative Insurance Holdings, Inc. 2,000 33 Alfa Corp. 9,000 169 American Equity Investment Life Holding Co. 15,300 199 American Physicians Capital, Inc. * 2,700 108 Amtrust Financial Services, Inc. 7,300 62 Argonaut Group, Inc. * 8,600 300 Baldwin & Lyons, Inc., Class B 2,250 57 Bristol West Holdings, Inc. 4,300 68 CNA Surety Corp. * 4,400 95 Commerce Group, Inc. 14,900 443 Crawford & Co., Class B 6,400 47 Delphi Financial Group, Inc., Class A 11,367 460 Direct General Corp. 4,000 83 Donegal Group, Inc., Class A 3,577 70 EMC Insurance Group, Inc. 1,600 55 Enstar Group, Inc. 900 86 FBL Financial Group, Inc., Class A 3,800 149 First Acceptance Corp. * 4,721 51 First Mercury Financial Corp. * 3,160 74 FPIC Insurance Group, Inc. * 2,900 113 Great American Financial Resources, Inc. 2,360 54 Harleysville Group, Inc. 3,700 129 Hilb, Rogal & Hobbs Co. 9,900 417
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED INSURANCE - 2.6% - (CONTINUED) Horace Mann Educators Corp. 11,800 $ 238 Independence Holding Co. 1,480 32 Infinity Property & Casualty Corp. 5,700 276 James River Group, Inc. * 2,600 84 Kansas City Life Insurance Co. 1,100 55 LandAmerica Financial Group, Inc. 4,900 309 Meadowbrook Insurance Group, Inc. * 6,900 68 Midland (The) Co. 3,200 134 National Interstate Corp. 4,300 104 National Western Life Insurance Co., Class A 600 138 Navigators Group, Inc. * 3,600 173 NYMAGIC, Inc. 1,600 59 Odyssey Re Holdings Corp. 3,600 134 Ohio Casualty Corp. 17,500 522 Phoenix Companies (The), Inc. 30,900 491 PMA Capital Corp., Class A * 9,100 84 Presidential Life Corp. 5,900 130 ProAssurance Corp. * 9,046 452 RLI Corp. 6,126 346 Safety Insurance Group, Inc. 3,900 198 SCPIE Holdings, Inc. * 2,900 76 SeaBright Insurance Holdings, Inc. * 4,400 79 Selective Insurance Group, Inc. 8,000 458 State Auto Financial Corp. 3,900 135 Stewart Information Services Corp. 4,700 204 Tower Group, Inc. 4,600 143 Triad Guaranty, Inc. * 3,100 170 United Fire & Casualty Co. 5,700 201 Universal American Financial Corp. * 10,500 196 USI Holdings Corp. * 12,700 195 Zenith National Insurance Corp. 10,100 474 ---------- 9,839 ---------- INTERNET - 3.5% 1-800-FLOWERS.COM, Inc., Class A * 7,200 44 24/7 Real Media, Inc. * 13,300 120 Access Integrated Technologies, Inc., Class A * 3,800 33 Agile Software Corp. * 16,100 99 aQuantive, Inc. * 20,800 513 Ariba, Inc. * 20,454 158 Art Technology Group, Inc. * 30,600 71 At Road, Inc. * 16,960 124 Audible, Inc. * 7,300 58
EQUITY INDEX FUNDS 13 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED INTERNET - 3.5% - (CONTINUED) Avocent Corp. * 14,100 $ 477 Blue Coat Systems, Inc. * 4,100 98 Blue Nile, Inc. * 3,600 133 Chordiant Software, Inc. * 21,800 72 CMGI, Inc. * 126,900 170 CNET Networks, Inc. * 41,200 374 Cogent Communications Group, Inc. * 5,900 96 Covad Communications Group, Inc. * 83,100 115 CyberSource Corp. * 8,400 93 DealerTrack Holdings, Inc. * 3,200 94 Digital Insight Corp. * 8,900 342 Digital River, Inc. * 10,800 602 Digitas, Inc. * 24,800 332 Drugstore.com, Inc. * 21,900 80 Earthlink, Inc. * 33,700 239 eCollege.com, Inc. * 5,100 80 Equinix, Inc. * 7,800 590 eResearch Technology, Inc. * 13,475 91 FTD Group, Inc. * 3,680 66 GSI Commerce, Inc. * 10,700 201 Harris Interactive, Inc. * 14,900 75 i2 Technologies, Inc. * 3,900 89 Infospace, Inc. * 8,600 176 Internap Network Services Corp. * 8,390 167 Internet Capital Group, Inc. * 10,700 110 Interwoven, Inc. * 11,700 172 iPass, Inc. * 17,700 104 j2 Global Communications, Inc. * 13,600 371 Jupitermedia Corp. * 6,400 51 Knot (The), Inc. * 4,500 118 Lionbridge Technologies * 16,400 106 Liquidity Services, Inc. * 2,300 40 Move, Inc. * 27,500 151 NetBank, Inc. 12,700 59 NetFlix, Inc. * 12,200 315 Netratings, Inc. * 3,700 65 NIC, Inc. * 10,500 52 Online Resources Corp. * 6,200 63 Openwave Systems, Inc. * 25,933 239 Opsware, Inc. * 22,500 198 Overstock.com, Inc. * 3,200 51 Perficient, Inc. * 5,000 82
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED INTERNET - 3.5% - (CONTINUED) Priceline.com, Inc. * 6,366 $ 278 ProQuest Co. * 7,200 75 RealNetworks, Inc. * 29,400 322 Redback Networks, Inc. * 17,241 430 RightNow Technologies, Inc. * 4,200 72 S1 Corp. * 19,400 107 Safeguard Scientifics, Inc. * 33,000 80 Sapient Corp. * 22,400 123 Secure Computing Corp. * 13,200 87 Shutterfly, Inc. * 169 2 Sohu.com, Inc. * 7,100 170 SonicWALL, Inc. * 17,700 149 Stamps.com, Inc. * 5,250 83 Terremark Worldwide, Inc. * 11,400 77 TheStreet.com, Inc. 5,100 45 TIBCO Software, Inc. * 57,800 546 Travelzoo, Inc. * 900 27 TriZetto Group, Inc. * 11,800 217 United Online, Inc. 17,600 234 ValueClick, Inc. * 26,200 619 Vasco Data Security International, Inc. * 6,800 81 Vignette Corp. * 8,200 140 WebEx Communications, Inc. * 11,500 401 webMethods, Inc. * 14,900 110 Websense, Inc. * 12,300 281 WebSideStory, Inc. * 4,800 61 ---------- 13,236 ---------- INVESTMENT COMPANIES - 0.4% Apollo Investment Corp. 22,243 498 Ares Capital Corp. 13,500 258 Capital Southwest Corp. 700 89 Gladstone Capital Corp. 3,200 76 Gladstone Investment Corp. 3,600 55 Harris & Harris Group, Inc. * 5,900 71 MCG Capital Corp. 15,400 313 Medallion Financial Corp. 4,200 52 MVC Capital, Inc. 4,700 63 NGP Capital Resources Co. 4,900 82 Technology Investment Capital Corp. 5,500 89 ---------- 1,646 ----------
NORTHERN FUNDS QUARTERLY REPORT 14 EQUITY INDEX FUNDS EQUITY INDEX FUND SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED IRON/STEEL - 0.8% AK Steel Holding Corp. * 30,200 $ 510 Chaparral Steel Co. 12,600 558 Cleveland-Cliffs, Inc. 11,400 552 Gibraltar Industries, Inc. 6,650 156 Olympic Steel, Inc. 2,300 51 Oregon Steel Mills, Inc. * 9,800 612 Ryerson, Inc. 7,132 179 Schnitzer Steel Industries, Inc., Class A 6,200 246 Steel Technologies, Inc. 3,100 55 Wheeling-Pittsburgh Corp. * 3,200 60 ---------- 2,979 ---------- LEISURE TIME - 0.6% Ambassadors Group, Inc. 5,700 173 Ambassadors International, Inc. 2,000 91 Arctic Cat, Inc. 3,525 62 Bally Total Fitness Holding Corp. * 11,400 28 Callaway Golf Co. 20,800 300 K2, Inc. * 12,900 170 Life Time Fitness, Inc. * 8,300 403 Marine Products Corp. 3,300 39 Multimedia Games, Inc. * 7,800 75 Nautilus, Inc. 9,037 126 Polaris Industries, Inc. 10,700 501 Town Sports International Holdings, Inc. * 2,500 41 WMS Industries, Inc. * 7,400 258 ---------- 2,267 ---------- LODGING - 0.5% Ameristar Casinos, Inc. 7,100 218 Aztar Corp. * 9,900 539 Gaylord Entertainment Co. * 11,100 565 Lodgian, Inc. * 5,570 76 Marcus Corp. 5,925 152 Monarch Casino & Resort, Inc. * 2,800 67 Morgans Hotel Group Co. * 5,100 86 MTR Gaming Group, Inc. * 6,400 78 Riviera Holdings Corp. * 3,000 73 Trump Entertainment Resorts, Inc. * 8,500 155 ---------- 2,009 ---------- MACHINERY - CONSTRUCTION & MINING - 0.2% Astec Industries, Inc. * 4,800 169 Bucyrus International, Inc., Class A 8,600 445 ---------- 614 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED MACHINERY - DIVERSIFIED - 1.2% Albany International Corp., Class A 7,367 $ 242 Applied Industrial Technologies, Inc. 12,253 322 Briggs & Stratton Corp. 14,100 380 Cascade Corp. 3,400 180 Cognex Corp. 12,743 304 Columbus McKinnon Corp. of New York * 5,000 105 DXP Enterprises, Inc. * 500 18 Gehl Co. * 2,940 81 Gerber Scientific, Inc. * 6,200 78 Gorman-Rupp (The) Co. 3,187 118 Intermec, Inc. * 13,800 335 Intevac, Inc. * 5,700 148 iRobot Corp. * 3,100 56 Kadant, Inc. * 3,820 93 Lindsay Manufacturing Co. 3,255 106 Middleby Corp. * 1,800 188 NACCO Industries, Inc., Class A 1,500 205 Nordson Corp. 8,100 404 Presstek, Inc. * 8,100 52 Robbins & Myers, Inc. 3,700 170 Sauer-Danfoss, Inc. 2,900 94 Tecumseh Products Co., Class A * 4,700 79 Tennant Co. 4,500 130 TurboChef Technologies, Inc. * 4,100 70 Wabtec Corp. 13,374 406 ---------- 4,364 ---------- MEDIA - 1.5% Acacia Research - Acacia Technologies * 7,600 102 Belo Corp., Class A 24,900 457 Charter Communications, Inc., Class A * 105,400 323 Citadel Broadcasting Corp. 10,100 101 CKX, Inc. * 14,200 167 Courier Corp. 2,825 110 Cox Radio, Inc., Class A * 12,400 202 Crown Media Holdings, Inc., Class A * 4,000 15 Cumulus Media, Inc., Class A * 9,676 101 Emmis Communications Corp., Class A 9,371 77 Entercom Communications Corp., Class A 8,800 248 Entravision Communications Corp., Class A * 18,400 151 Fisher Communications, Inc. * 2,100 93 GateHouse Media, Inc. 4,450 83 Gemstar-TV Guide International, Inc. * 68,200 273
EQUITY INDEX FUNDS 15 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED MEDIA - 1.5% - (CONTINUED) Gray Television, Inc. 11,800 $ 87 Journal Communications, Inc., Class A 12,000 151 Journal Register Co. 11,300 82 Lee Enterprises, Inc. 12,600 391 Lin TV Corp., Class A * 7,600 76 Lodgenet Entertainment Corp. * 4,500 113 Martha Stewart Living Omnimedia, Inc., Class A 7,000 153 Media General, Inc., Class A 6,100 227 Mediacom Communications Corp., Class A * 15,200 122 Outdoor Channel Holdings, Inc. * 3,700 47 Playboy Enterprises, Inc., Class B * 5,800 66 Primedia, Inc. * 56,300 95 Private Media Group Ltd. * 7,000 28 Radio One, Inc., Class D * 21,000 142 Readers Digest Association (The), Inc. 26,419 441 Salem Communications Corp., Class A 2,900 35 Scholastic Corp. * 9,700 348 Sinclair Broadcast Group, Inc., Class A 12,500 131 Spanish Broadcasting System, Inc., Class A * 12,600 52 Sun-Times Media Group, Inc., Class A 18,071 89 Value Line, Inc. 400 18 Westwood One, Inc. 19,300 136 World Wrestling Entertainment, Inc., Class A 6,100 99 ---------- 5,632 ---------- METAL FABRICATION/HARDWARE - 0.8% Ampco-Pittsburgh Corp. 2,100 70 Castle (A.M.) & Co. 2,800 71 CIRCOR International, Inc. 4,400 162 Dynamic Materials Corp. 3,300 93 Foster (L.B.) Co., Class A * 2,800 73 Kaydon Corp. 7,713 306 Ladish Co., Inc. * 3,800 141 Lawson Products, Inc. 1,040 48 Mueller Industries, Inc. 10,100 320 Mueller Water Products, Inc., Class A 30,300 451 NN, Inc. 4,700 58 Quanex Corp. 10,400 360 RBC Bearings, Inc. * 5,600 160 Valmont Industries, Inc. 5,000 277 Worthington Industries, Inc. 19,900 353 ---------- 2,943 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED MINING - 0.7% AMCOL International Corp. 6,014 $ 167 Brush Engineered Materials, Inc. * 5,300 179 Century Aluminum Co. * 6,300 281 Coeur D'alene Mines Corp. * 76,400 378 Compass Minerals International, Inc. 8,800 278 Hecla Mining Co. * 32,700 250 Royal Gold, Inc. 5,300 191 RTI International Metals, Inc. * 6,200 485 Stillwater Mining Co. * 11,350 142 USEC, Inc. * 23,900 304 ---------- 2,655 ---------- MISCELLANEOUS MANUFACTURING - 1.8% Actuant Corp., Class A 7,455 355 Acuity Brands, Inc. 12,300 640 American Railcar Industries, Inc. 2,500 85 Ameron International Corp. 2,400 183 Aptargroup, Inc. 9,600 567 Barnes Group, Inc. 10,864 236 Blount International, Inc. * 10,400 140 Ceradyne, Inc. * 7,350 415 Clarcor, Inc. 14,224 481 EnPro Industries, Inc. * 5,800 193 ESCO Technologies, Inc. * 7,100 323 Federal Signal Corp. 13,200 212 Flanders Corp. * 3,500 35 Freightcar America, Inc. 3,400 189 GenTek, Inc. * 2,800 97 Griffon Corp. * 8,163 208 Hexcel Corp. * 25,607 446 Jacuzzi Brands, Inc. * 21,300 265 Koppers Holdings, Inc. 2,700 70 Lancaster Colony Corp. 6,600 292 Matthews International Corp., Class A 8,800 346 Myers Industries, Inc. 7,306 114 PW Eagle, Inc. 2,900 100 Raven Industries, Inc. 4,400 118 Reddy Ice Holdings, Inc. 4,600 119 Smith & Wesson Holding Corp. * 8,300 86 Smith (A.O.) Corp. 5,600 210 Standex International Corp. 3,500 106 Tredegar Corp. 9,350 211 ---------- 6,842 ----------
NORTHERN FUNDS QUARTERLY REPORT 16 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED OFFICE FURNISHINGS - 0.3% Herman Miller, Inc. 18,200 $ 662 Interface, Inc., Class A* 13,100 186 Knoll, Inc. 8,360 184 ---------- 1,032 ---------- OFFICE/BUSINESS EQUIPMENT - 0.2% Global Imaging Systems, Inc.* 14,206 312 IKON Office Solutions, Inc. 30,200 494 ---------- 806 ---------- OIL & GAS - 2.7% Alon USA Energy, Inc. 3,400 89 Arena Resources, Inc. * 3,200 137 Atlas America, Inc. * 4,707 240 ATP Oil & Gas Corp. * 5,500 218 Atwood Oceanics, Inc. * 7,400 362 Aurora Oil & Gas Corp. * 18,900 61 Berry Petroleum Co., Class A 9,700 301 Bill Barrett Corp. * 7,870 214 Bois d'Arc Energy, Inc. * 4,600 67 Brigham Exploration Co. * 12,500 91 Bronco Drilling Co., Inc. * 3,800 65 Callon Petroleum Co. * 5,800 87 Carrizo Oil & Gas, Inc. * 6,100 177 Clayton Williams Energy, Inc. * 1,500 54 Comstock Resources, Inc. * 11,800 367 Crosstex Energy, Inc. 8,589 272 Delek US Holdings, Inc. 2,800 46 Delta Petroleum Corp. * 14,500 336 Edge Petroleum Corp. * 4,900 89 Encore Acquisition Co. * 14,500 356 Energy Partners Ltd. * 10,500 256 EXCO Resources, Inc. * 14,300 242 Exploration Co. of Delaware (The), Inc. * 8,000 107 Gasco Energy, Inc. * 20,200 49 GeoGlobal Resources, Inc. * 8,600 68 GeoMet, Inc. * 2,988 31 Giant Industries, Inc. * 4,000 300 GMX Resources, Inc. * 2,200 78 Goodrich Petroleum Corp. * 3,500 127 Grey Wolf, Inc. * 53,400 366 Gulfport Energy Corp. * 3,500 48 Harvest Natural Resources, Inc. * 10,200 108 Houston Exploration Co. * 8,000 414
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED OIL & GAS - 2.7% - (CONTINUED) Mariner Energy, Inc. * 20,061 $ 393 McMoRan Exploration Co. * 6,700 95 Meridian Resource Corp. * 24,812 77 Parallel Petroleum Corp. * 10,300 181 Parker Drilling Co. * 29,700 243 Penn Virginia Corp. 5,100 357 Petrohawk Energy Corp. * 38,900 447 Petroleum Development Corp. * 3,902 168 Petroquest Energy, Inc. * 11,300 144 Pioneer Drilling Co. * 11,400 151 Quest Resource Corp. * 5,400 55 RAM Energy Resources, Inc. * 5,400 30 Rosetta Resources, Inc. * 13,870 259 Stone Energy Corp. * 7,476 264 Sulphco, Inc. * 10,300 49 Swift Energy Co. * 7,990 358 Toreador Resources Corp. * 3,300 85 Transmeridian Exploration, Inc. * 20,800 72 Vaalco Energy, Inc. * 15,800 107 Venoco, Inc. * 3,563 63 Warren Resources, Inc. * 14,630 171 Western Refining, Inc. 6,400 163 Whiting Petroleum Corp. * 10,100 471 ---------- 10,226 ---------- OIL & GAS SERVICES - 1.7% Allis-Chalmers Energy, Inc. * 4,300 99 Basic Energy Services, Inc. * 3,700 91 Cal Dive International, Inc. * 2,133 27 CARBO Ceramics, Inc. 5,500 206 Complete Production Services, Inc. * 7,100 151 Dawson Geophysical Co. * 2,000 73 Dril-Quip, Inc. * 6,100 239 Gulf Island Fabrication, Inc. 3,400 125 Hanover Compressor Co. * 28,068 530 Hercules Offshore, Inc. * 5,600 162 Hornbeck Offshore Services, Inc. * 6,700 239 Hydril * 4,600 346 Input/Output, Inc. * 19,300 263 Lone Star Technologies, Inc. * 8,400 407 Lufkin Industries, Inc. 4,100 238 Markwest Hydrocarbon, Inc. 1,650 80 Matrix Service Co. * 6,200 100
EQUITY INDEX FUNDS 17 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED OIL & GAS SERVICES - 1.7% - (CONTINUED) Metretek Technologies, Inc. * 4,300 $ 53 NATCO Group, Inc., Class A * 4,100 131 Newpark Resources, Inc. * 24,580 177 Oil States International, Inc. * 13,600 438 RPC, Inc. 8,842 149 Superior Well Services, Inc. * 3,000 77 Trico Marine Services, Inc. * 3,300 126 Union Drilling, Inc. * 3,800 53 Universal Compression Holdings, Inc. * 8,300 516 Veritas DGC, Inc. * 9,700 831 W-H Energy Services, Inc. * 8,100 394 ---------- 6,321 ---------- PACKAGING & CONTAINERS - 0.3% AEP Industries, Inc. * 1,800 96 Chesapeake Corp. 5,600 95 Graphic Packaging Corp. * 21,500 93 Greif, Inc., Class A 4,500 533 Silgan Holdings, Inc. 6,400 281 ---------- 1,098 ---------- PHARMACEUTICALS - 3.3% Acadia Pharmaceuticals, Inc. * 6,600 58 Adams Respiratory Therapeutics, Inc. * 8,300 339 Adolor Corp. * 12,400 93 Akorn, Inc. * 13,200 83 Alkermes, Inc. * 26,600 356 Alnylam Pharmaceuticals, Inc. * 9,000 193 Alpharma, Inc., Class A 11,650 281 Altus Pharmaceuticals, Inc. * 2,300 43 Array Biopharma, Inc. * 10,700 138 Atherogenics, Inc. * 11,400 113 Auxilium Pharmaceuticals, Inc. * 6,300 93 AVANIR Pharmaceuticals, Class A * 9,100 21 AVI BioPharma, Inc. * 13,800 44 Bentley Pharmaceuticals, Inc. * 5,500 56 Bioenvision, Inc. * 9,900 46 BioMarin Pharmaceuticals, Inc. * 24,400 400 Bradley Pharmaceuticals, Inc. * 4,100 84 Cadence Pharmaceuticals, Inc. * 1,463 18 Combinatorx, Inc. * 7,300 63 Conor Medsystems, Inc. * 8,200 257 Cubist Pharmaceuticals, Inc. * 14,900 270 CV Therapeutics, Inc. * 14,000 195
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED PHARMACEUTICALS - 3.3% - (CONTINUED) Cypress Bioscience, Inc. * 9,200 $ 71 Dendreon Corp. * 19,500 81 Depomed, Inc. * 10,100 35 Durect Corp. * 16,700 74 Emisphere Technologies, Inc. * 7,200 38 Genta, Inc. * 41,100 18 HealthExtras, Inc. * 7,400 178 Hi-Tech Pharmacal Co., Inc. * 2,550 31 I-Flow Corp. * 6,400 96 Idenix Pharmaceuticals, Inc. * 6,800 59 Indevus Pharmaceuticals, Inc. * 15,900 113 Isis Pharmaceuticals, Inc. * 20,000 222 KV Pharmaceutical Co., Class A * 10,600 252 Mannatech, Inc. 4,700 69 MannKind Corp. * 8,600 142 Medarex, Inc. * 33,500 496 Medicines Co. * 13,800 438 Medicis Pharmaceutical Corp., Class A 15,000 527 MGI Pharma, Inc. * 21,500 396 Nabi Biopharmaceuticals * 16,500 112 Nastech Pharmaceutical Co., Inc. * 5,900 89 NBTY, Inc. * 15,100 628 Neurocrine Biosciences, Inc. * 10,400 108 New River Pharmaceuticals, Inc. * 4,400 241 Noven Pharmaceuticals, Inc. * 6,500 165 NPS Pharmaceuticals, Inc. * 13,100 59 Nuvelo, Inc. * 14,833 59 Obagi Medical Products, Inc. * 1,100 11 Onyx Pharmaceuticals, Inc. * 12,000 127 OSI Pharmaceuticals, Inc. * 15,600 546 Osiris Therapeutics, Inc. * 1,100 28 Pain Therapeutics, Inc. * 9,700 86 Par Pharmaceutical Cos., Inc. * 9,600 215 Penwest Pharmaceuticals Co. * 6,300 105 Perrigo Co. 21,300 369 PetMed Express, Inc. * 5,200 69 Pharmion Corp. * 6,700 173 Pozen, Inc. * 6,900 117 Progenics Pharmaceuticals, Inc. * 6,100 157 Renovis, Inc. * 6,500 21 Rigel Pharmaceuticals, Inc. * 7,100 84 Salix Pharmaceuticals Ltd. * 12,700 155
NORTHERN FUNDS QUARTERLY REPORT 18 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED PHARMACEUTICALS - 3.3% - (CONTINUED) Santarus, Inc. * 13,200 $ 103 Sciele Pharma, Inc. * 8,000 192 Somaxon Pharmaceuticals, Inc. * 1,600 23 Tanox, Inc. * 6,700 133 Trimeris, Inc. * 5,000 64 United Therapeutics Corp. * 6,500 353 USANA Health Sciences, Inc. * 2,600 134 Valeant Pharmaceuticals International 25,500 440 Viropharma, Inc. * 18,900 277 Xenoport, Inc. * 5,800 142 Zymogenetics, Inc. * 10,300 160 ---------- 12,325 ---------- REAL ESTATE - 0.1% Affordable Residential Communities * 9,400 110 Avatar Holdings, Inc. * 1,600 129 Californina Coastal Communities, Inc. * 2,980 64 Consolidated-Tomoka Land Co. of Florida 1,600 116 Housevalues, Inc. * 4,300 24 Tarragon Corp. 3,962 48 ---------- 491 ---------- REAL ESTATE INVESTMENT TRUSTS - 7.1% Acadia Realty Trust 8,685 217 Agree Realty Corp. 2,100 72 Alexander's, Inc. * 500 210 Alexandria Real Estate Equities, Inc. 7,999 803 American Campus Communities, Inc. 6,300 179 American Financial Realty Trust 35,600 407 American Home Mortgage Investment Corp. 12,005 422 Anthracite Capital, Inc. 15,600 199 Anworth Mortgage Asset Corp. 12,400 118 Arbor Realty Trust, Inc. 3,200 96 Ashford Hospitality Trust, Inc. 15,100 188 BioMed Realty Trust, Inc. 17,800 509 Capital Lease Funding, Inc. 9,100 106 Capital Trust, Inc. of New York, Class A 2,800 140 Cedar Shopping Centers, Inc. 9,000 143 CentraCore Properties Trust 3,100 100 Corporate Office Properties Trust 9,100 459 Cousins Properties, Inc. 10,500 370 Crescent Real Estate Equities Co. 21,700 429 Crystal River Capital, Inc. 2,200 56 Deerfield Triarc Capital Corp. 14,200 240
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED REAL ESTATE INVESTMENT TRUSTS - 7.1% - (CONTINUED) DiamondRock Hospitality Co. 18,500 $ 333 Digital Realty Trust, Inc. 6,900 236 EastGroup Properties, Inc. 6,500 348 Education Realty Trust, Inc. 7,160 106 Entertainment Properties Trust 7,200 421 Equity Inns, Inc. 15,000 239 Equity Lifestyle Properties, Inc. 5,300 288 Equity One, Inc. 10,500 280 Extra Space Storage, Inc. 15,700 287 FelCor Lodging Trust, Inc. 16,700 365 Fieldstone Investment Corp. 14,000 61 First Industrial Realty Trust, Inc. 12,300 577 First Potomac Realty Trust 6,300 183 Franklin Street Properties Corp. 16,042 338 Getty Realty Corp. 4,800 148 Glimcher Realty Trust 10,100 270 GMH Communities Trust 10,800 110 Gramercy Capital Corp. of New York 5,100 158 Healthcare Realty Trust, Inc. 13,100 518 Hersha Hospitality Trust 8,400 95 Highland Hospitality Corp. 16,300 232 Highwoods Properties, Inc. 14,800 603 Home Properties, Inc. 9,400 557 HomeBanc Corp. of Georgia 16,400 69 IMPAC Mortgage Holdings, Inc. 20,900 184 Inland Real Estate Corp. 18,500 346 Innkeepers USA Trust 11,800 183 Investors Real Estate Trust 12,700 130 JER Investors Trust, Inc. 7,100 147 Kite Realty Group Trust 7,800 145 KKR Financial Corp. 22,100 592 LaSalle Hotel Properties 10,900 500 Lexington Corporate Properties Trust 14,500 325 Longview Fibre Co. 18,044 396 LTC Properties, Inc. 6,400 175 Luminent Mortgage Capital, Inc. 11,300 110 Maguire Properties, Inc. 10,400 416 Medical Properties Trust, Inc. 11,000 168 MFA Mortgage Investments, Inc. 21,700 167 Mid-America Apartment Communities, Inc. 6,500 372 Mills (The) Corp. 15,500 310 MortgageIT Holdings, Inc. 7,900 117
EQUITY INDEX FUNDS 19 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED REAL ESTATE INVESTMENT TRUSTS - 7.1% - (CONTINUED) National Health Investors, Inc. 6,500 $ 215 National Retail Properties, Inc. 15,900 365 Nationwide Health Properties, Inc. 22,700 686 Newcastle Investment Corp. 12,000 376 Newkirk Realty Trust, Inc. 5,300 96 NorthStar Realty Finance Corp. 16,100 267 Novastar Financial, Inc. 9,400 251 OMEGA Healthcare Investors, Inc. 15,800 280 Parkway Properties, Inc. of Maryland 3,900 199 Pennsylvania Real Estate Investment Trust 10,101 398 Post Properties, Inc. 11,800 539 PS Business Parks, Inc. 4,400 311 RAIT Investment Trust 14,300 493 Ramco-Gershenson Properties 4,600 175 Realty Income Corp. 27,400 759 Redwood Trust, Inc. 5,300 308 Republic Property Trust 7,400 85 Saul Centers, Inc. 3,000 166 Senior Housing Properties Trust 18,300 448 Sovran Self Storage, Inc. 4,900 281 Spirit Finance Corp. 26,640 332 Strategic Hotels & Resorts, Inc. 20,162 439 Sun Communities, Inc. 4,900 159 Sunstone Hotel Investors, Inc. 15,900 425 Tanger Factory Outlet Centers, Inc. 8,500 332 Trustreet Properties, Inc. 18,600 313 U-Store-It Trust 12,900 265 Universal Health Realty Income Trust 3,300 129 Urstadt Biddle Properties, Inc., Class A 5,800 111 Washington Real Estate Investment Trust 12,300 492 Winston Hotels, Inc. 7,900 105 Winthrop Realty Trust 6,600 45 ---------- 26,913 ---------- RETAIL - 6.4% 99 Cents Only Stores * 13,000 158 AC Moore Arts & Crafts, Inc. * 4,400 95 Aeropostale, Inc. * 15,000 463 AFC Enterprises * 7,000 124 America's Car-Mart, Inc. * 2,650 31 Applebee's International, Inc. 20,400 503 Asbury Automotive Group, Inc. 3,500 82 Bebe Stores, Inc. 6,500 129
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED RETAIL - 6.4% - (CONTINUED) Big 5 Sporting Goods Corp. 6,200 $ 151 Big Lots, Inc. * 31,000 711 BJ's Restaurants, Inc. * 3,800 77 Blockbuster, Inc., Class A * 52,400 277 Bob Evans Farms, Inc. 9,900 339 Bon-Ton Stores (The), Inc. 1,800 62 Books-A-Million, Inc. 3,900 88 Borders Group, Inc. 17,800 398 Brown Shoe Co., Inc. 7,800 372 Buckle (The), Inc. 2,700 137 Buffalo Wild Wings, Inc. * 2,000 106 Build-A-Bear Workshop, Inc. * 4,000 112 Cabela's, Inc., Class A * 8,800 212 Cache, Inc. * 3,300 83 California Pizza Kitchen, Inc. * 5,400 180 Carrols Restaurant Group, Inc. * 1,600 23 Casey's General Stores, Inc. 13,800 325 Cash America International, Inc. 8,100 380 Casual Male Retail Group, Inc. * 8,400 110 Cato (The) Corp., Class A 8,400 192 CBRL Group, Inc. 8,500 380 CEC Entertainment, Inc. * 9,092 366 Charlotte Russe Holding, Inc. * 4,500 138 Charming Shoppes, Inc. * 33,600 455 Children's Place Retail Stores (The), Inc. * 6,200 394 Chipotle Mexican Grill, Inc. * 6,700 348 Christopher & Banks Corp. 10,025 187 Citi Trends, Inc. * 1,800 71 CKE Restaurants, Inc. 18,700 344 Conn's, Inc. * 2,200 51 Cosi, Inc. * 9,400 48 Cost Plus, Inc. of California * 6,375 66 CSK Auto Corp. * 12,000 206 DEB Shops, Inc. 1,400 37 dELiA*s, Inc. * 5,807 61 Denny's Corp. * 26,300 124 Domino's Pizza, Inc. 10,400 291 Dress Barn, Inc. * 12,600 294 DSW, Inc., Class A * 4,400 170 Ezcorp, Inc., Class A * 9,800 159 Finish Line (The), Inc., Class A 11,700 167 First Cash Financial Services, Inc. * 7,700 199
NORTHERN FUNDS QUARTERLY REPORT 20 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED RETAIL - 6.4% - (CONTINUED) Fred's, Inc. 11,025 $ 133 Genesco, Inc. * 6,400 239 Group 1 Automotive, Inc. 6,800 352 Guitar Center, Inc. * 8,000 364 Haverty Furniture Cos., Inc. 6,200 92 Hibbett Sporting Goods, Inc. * 8,743 267 HOT Topic, Inc. * 12,125 162 IHOP Corp. 5,000 264 Insight Enterprises, Inc. * 13,250 250 J Crew Group, Inc. * 5,900 227 Jack in the Box, Inc. * 9,700 592 Jo-Ann Stores, Inc. * 6,610 163 Jos. A. Bank Clothiers, Inc. * 4,933 145 Kenneth Cole Productions, Inc., Class A 2,542 61 Krispy Kreme Doughnuts, Inc. * 15,100 168 Landry's Restaurants, Inc. 4,484 135 Lithia Motors, Inc., Class A 4,300 124 Longs Drug Stores Corp. 8,700 369 Luby's, Inc. * 5,900 64 MarineMax, Inc. * 4,500 117 McCormick & Schmick's Seafood Restaurants, Inc. * 3,300 79 Men's Wearhouse, Inc. 13,100 501 Morton's Restaurant Group, Inc. * 2,700 45 Movado Group, Inc. 4,800 139 New York & Co., Inc. * 5,900 77 Nu Skin Enterprises, Inc., Class A 15,800 288 O'Charleys, Inc. * 6,300 134 P.F. Chang's China Bistro, Inc. * 7,300 280 Pacific Sunwear of California, Inc. * 20,000 392 Pantry (The), Inc. * 6,200 290 Papa John's International, Inc. * 6,750 196 Payless Shoesource, Inc. * 18,300 601 Pep Boys - Manny, Moe & Jack 14,900 221 Pier 1 Imports, Inc. 23,900 142 Rare Hospitality International, Inc. * 9,275 305 Red Robin Gourmet Burgers, Inc. * 4,500 161 Regis Corp. 12,500 494 Restoration Hardware, Inc. * 8,100 69 Retail Ventures, Inc. * 5,600 107 Ruby Tuesday, Inc. 16,200 445 Rush Enterprises, Inc., Class A * 5,900 100 Ruth's Chris Steak House * 4,800 88
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED RETAIL - 6.4% - (CONTINUED) School Specialty, Inc. * 6,350 $ 238 Select Comfort Corp. * 14,750 257 Shoe Carnival, Inc. * 2,300 73 Smart & Final, Inc. * 3,750 71 Sonic Automotive, Inc., Class A 8,300 241 Sonic Corp. * 19,100 457 Stage Stores, Inc. 7,650 233 Steak n Shake (The) Co. * 7,704 136 Stein Mart, Inc. 7,400 98 Susser Holdings Corp. * 744 13 Syms Corp. * 1,600 32 Systemax, Inc. * 800 14 Talbots, Inc. 6,200 149 Texas Roadhouse, Inc., Class A * 14,300 190 Triarc Cos., Inc., Class B 16,803 336 Tuesday Morning Corp. 8,200 128 Tween Brands, Inc. * 9,200 367 Under Armour, Inc., Class A * 5,700 288 West Marine, Inc. * 4,100 71 Wet Seal (The), Inc., Class A * 18,500 123 World Fuel Services Corp. 7,500 333 Zale Corp. * 13,100 370 Zumiez, Inc. * 3,900 115 ---------- 24,251 ---------- SAVINGS & LOANS - 1.8% Abington Community Bancorp, Inc. 1,500 29 Anchor BanCorp Wisconsin, Inc. 5,300 153 BankAtlantic Bancorp, Inc., Class A 13,000 179 BankFinancial Corp. 6,700 119 BankUnited Financial Corp., Class A 8,600 240 Berkshire Hills Bancorp, Inc. 2,400 80 BFC Financial Corp., Class A * 5,100 33 Brookline Bancorp, Inc. 16,903 223 Charter Financial Corp. of Georgia 1,100 57 Citizens First Bancorp, Inc. 2,400 74 Clifton Savings Bancorp, Inc. 3,400 41 Dime Community Bancshares 6,825 96 Downey Financial Corp. 5,800 421 Fidelity Bankshares, Inc. 6,900 274 First Financial Holdings, Inc. 3,300 129 First Niagara Financial Group, Inc. 30,519 453 First Place Financial Corp. of Ohio 4,800 113
EQUITY INDEX FUNDS 21 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED SAVINGS & LOANS - 1.8% - (CONTINUED) FirstFed Financial Corp. * 4,550 $ 305 Flagstar Bancorp, Inc. 11,200 166 Flushing Financial Corp. 5,425 93 Franklin Bank Corp. of Houston * 6,400 131 Investors Bancorp, Inc. * 14,600 230 Kearny Financial Corp. 6,200 99 KNBT Bancorp, Inc. 8,000 134 MAF Bancorp, Inc. 9,236 413 NASB Financial, Inc. 1,000 41 NewAlliance Bancshares, Inc. 30,300 497 Northwest Bancorp, Inc. 5,100 140 OceanFirst Financial Corp. 2,400 55 Partners Trust Financial Group, Inc. 12,330 143 PennFed Financial Services, Inc. 2,600 50 PFF Bancorp, Inc. 6,690 231 Provident Financial Services, Inc. 17,629 320 Provident New York Bancorp 11,661 175 Rockville Financial, Inc. 2,200 39 Roma Financial Corp. * 3,000 50 TierOne Corp. 5,000 158 United Community Financial Corp. of Ohio 7,400 91 ViewPoint Financial Group * 3,300 56 Wauwatosa Holdings, Inc. * 2,900 52 Westfield Financial, Inc. * 1,200 41 Willow Grove Bancorp, Inc. 4,200 63 WSFS Financial Corp. 1,600 107 ---------- 6,594 ---------- SEMICONDUCTORS - 3.1% Actel Corp. * 7,100 129 Advanced Analogic Technologies, Inc. * 10,100 54 AMIS Holdings, Inc. * 11,900 126 Amkor Technology, Inc. * 28,000 262 Anadigics, Inc. * 12,900 114 Applied Micro Circuits Corp. * 81,100 289 Asyst Technologies, Inc. * 13,800 101 ATMI, Inc. * 9,600 293 Axcelis Technologies, Inc. * 27,700 161 Bookham, Inc. * 17,300 70 Brooks Automation, Inc. * 20,544 296 Cabot Microelectronics Corp. * 6,600 224 Cirrus Logic, Inc. * 24,000 165 Cohu, Inc. 6,200 125
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED SEMICONDUCTORS - 3.1% - (CONTINUED) Conexant Systems, Inc. * 132,000 $ 269 Credence Systems Corp. * 27,480 143 Diodes, Inc. * 5,425 192 DSP Group, Inc. * 8,300 180 EMCORE Corp. * 11,200 62 Emulex Corp. * 23,200 453 Entegris, Inc. * 37,777 409 Exar Corp. * 8,600 112 Formfactor, Inc. * 12,600 469 Genesis Microchip, Inc. * 9,700 98 Hittite Microwave Corp. * 3,600 116 Ikanos Communications, Inc. * 5,600 49 IPG Photonics Corp. * 162 4 IXYS Corp. * 7,400 66 Kopin Corp. * 18,800 67 Kulicke & Soffa Industries, Inc. * 15,600 131 Lattice Semiconductor Corp. * 31,300 203 LTX Corp. * 17,500 98 Mattson Technology, Inc. * 14,400 134 Micrel, Inc. * 18,700 202 Microsemi Corp. * 19,400 381 Microtune, Inc. * 14,500 68 Mindspeed Technologies, Inc. * 30,300 58 MIPS Technologies, Inc. * 11,900 99 MKS Instruments, Inc. * 10,000 226 Monolithic Power Systems, Inc. * 6,400 71 MoSys, Inc. * 6,100 56 Netlogic Microsystems, Inc. * 4,400 95 Omnivision Technologies, Inc. * 14,600 199 ON Semiconductor Corp. * 41,600 315 Pericom Semiconductor Corp. * 7,500 86 Photronics, Inc. * 11,400 186 PLX Technology, Inc. * 6,800 89 Portalplayer, Inc. * 7,000 94 Rudolph Technologies, Inc. * 6,632 106 Semitool, Inc. * 6,100 81 Semtech Corp. * 19,900 260 Silicon Image, Inc. * 22,300 284 Sirf Technology Holdings, Inc. * 14,000 357 Skyworks Solutions, Inc. * 44,000 312 Standard Microsystems Corp. * 6,100 171 Supertex, Inc. * 3,300 130
NORTHERN FUNDS QUARTERLY REPORT 22 EQUITY INDEX FUNDS EQUITY FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED SEMICONDUCTORS - 3.1% - (CONTINUED) Tessera Technologies, Inc. * 12,700 $ 512 Transmeta Corp. of Delaware * 53,700 60 Transwitch Corp. * 34,900 49 Triquint Semiconductor, Inc. * 38,354 173 Ultratech, Inc. * 6,800 85 Varian Semiconductor Equipment Associates, Inc. * 15,650 712 Veeco Instruments, Inc. * 8,300 155 Virage Logic Corp. * 4,400 41 Volterra Semiconductor Corp. * 5,300 80 Zoran Corp. * 13,465 196 ---------- 11,653 ---------- SOFTWARE - 3.6% Actuate Corp. * 15,500 92 Advent Software, Inc. * 5,600 198 Allscripts Healthcare Solutions, Inc. * 12,700 343 Altiris, Inc. * 6,400 162 American Reprographics Co. * 7,140 238 Ansys, Inc. * 9,000 391 Aspen Technology, Inc. * 14,500 160 Avid Technology, Inc. * 11,600 432 Blackbaud, Inc. 12,016 312 Blackboard, Inc. * 7,600 228 Borland Software Corp. * 21,400 116 Bottomline Technologies, Inc. * 5,600 64 Commvault Systems, Inc. * 3,647 73 Computer Programs & Systems, Inc. 2,600 88 Concur Technologies, Inc. * 8,800 141 Convera Corp., Class A * 8,300 38 CSG Systems International, Inc. * 13,100 350 Dendrite International, Inc. * 10,200 109 Digi International, Inc. * 6,800 94 DivX, Inc. * 2,600 60 Eclipsys Corp. * 12,400 255 eFunds Corp. * 12,800 352 Emageon, Inc. * 5,900 91 Epicor Software Corp. * 15,600 211 EPIQ Systems, Inc. * 4,150 70 FalconStor Software, Inc. * 10,500 91 Hyperion Solutions Corp. * 16,300 586 Infocrossing, Inc. * 4,700 77 Informatica Corp. * 23,700 289 infoUSA, Inc. * 9,150 109
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED SOFTWARE - 3.6% - (CONTINUED) Innerworkings, Inc. * 194 $ 3 InPhonic, Inc. * 6,500 72 Inter-Tel, Inc. 5,800 129 INVESTools, Inc. * 12,700 175 JDA Software Group, Inc. * 8,000 110 Keane, Inc. * 11,900 142 Lawson Software, Inc. * 34,200 253 Mantech International Corp., Class A * 4,900 180 MapInfo Corp. * 5,800 76 MicroStrategy, Inc., Class A * 2,600 296 Midway Games, Inc. * 9,789 68 Neoware, Inc. * 5,400 71 Nuance Communications, Inc. * 34,510 395 Omnicell, Inc. * 7,500 140 Open Solutions, Inc. * 5,600 211 OPNET Technologies, Inc. * 3,500 51 Packeteer, Inc. * 9,600 131 Parametric Technology Corp. * 30,620 552 PDF Solutions, Inc. * 5,800 84 Pegasystems, Inc. 3,400 34 Per-Se Technologies, Inc. * 9,180 255 Phase Forward, Inc. * 9,300 139 Progress Software Corp. * 11,300 316 QAD, Inc. 3,900 33 Quality Systems, Inc. 4,500 168 Quest Software, Inc. * 18,400 270 Renaissance Learning, Inc. 2,300 41 Schawk, Inc. 4,400 86 Smith Micro Software, Inc. * 5,700 81 SPSS, Inc. * 5,300 159 Sybase, Inc. * 24,700 610 SYNNEX Corp. * 3,400 75 Take-Two Interactive Software, Inc. * 19,700 350 Taleo Corp., Class A * 3,900 53 THQ, Inc. * 17,525 570 Transaction Systems Architects, Inc. * 10,300 335 Trident Microsystems, Inc. * 15,700 285 Ulticom, Inc. * 3,500 34 Ultimate Software Group, Inc. * 6,600 154 VA Software Corp. * 18,500 93
EQUITY INDEX FUNDS 23 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED SOFTWARE - 3.6% - (CONTINUED) Verint Systems, Inc. * 3,700 $ 127 Wind River Systems, Inc. * 20,700 212 Witness Systems, Inc. * 9,200 161 ---------- 13,600 ---------- STORAGE/WAREHOUSING - 0.1% Mobile Mini, Inc. * 9,700 261 ---------- TELECOMMUNICATIONS - 4.5% 3Com Corp. * 107,500 442 Acme Packet, Inc. * 3,800 78 Adaptec, Inc. * 31,300 146 Adtran, Inc. 17,800 404 Aeroflex, Inc. * 20,600 241 Alaska Communications Systems Group, Inc. 11,500 175 Anaren, Inc. * 4,900 87 Andrew Corp. * 43,800 448 Anixter International, Inc. * 9,000 489 Arris Group, Inc. * 29,400 368 Atheros Communications, Inc. * 14,100 301 Atlantic Tele-Network, Inc. 1,400 41 Avanex Corp. * 46,700 88 Black Box Corp. 4,800 202 Broadwing Corp. * 20,970 328 C-COR, Inc. * 13,200 147 CalAmp Corp. * 6,300 53 Carrier Access Corp. * 6,100 40 Cbeyond Communications, Inc. * 4,500 138 Centennial Communications Corp. 6,200 45 Cincinnati Bell, Inc. * 67,500 308 Commonwealth Telephone Enterprises, Inc. 5,833 244 CommScope, Inc. * 15,800 482 Comtech Telecommunications Corp. * 6,225 237 Consolidated Communications Holdings, Inc. 5,600 117 CPI International, Inc. * 1,900 29 CT Communications, Inc. 5,300 121 Ditech Networks, Inc. * 8,900 62 Dobson Communications Corp., Class A * 41,400 361 EMS Technologies, Inc. * 4,300 86 Eschelon Telecom, Inc. * 2,600 52 Essex Corp. * 5,300 127 Extreme Networks * 32,700 137 Fairpoint Communications, Inc. 7,510 142 FiberTower Corp. * 33,000 194
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED TELECOMMUNICATIONS - 4.5% - (CONTINUED) Finisar Corp. * 62,600 $ 202 Foundry Networks, Inc. * 40,000 599 General Communication, Inc., Class A * 14,700 231 Globalstar, Inc. * 5,154 72 Golden Telecom, Inc. 6,000 281 Harmonic, Inc. * 20,400 148 Hypercom Corp. * 14,700 93 ID Systems, Inc. * 3,000 56 IDT Corp., Class B * 12,300 161 Interdigital Communications Corp. * 14,200 476 Iowa Telecommunications Services, Inc. 8,600 169 iPCS, Inc. * 4,600 255 Ixia * 11,700 112 Lightbridge, Inc. * 7,684 104 Loral Space & Communications, Inc. * 3,200 130 Mastec, Inc. * 11,000 127 MRV Communications, Inc. * 34,334 122 Netgear, Inc. * 9,100 239 Newport Corp. * 11,100 233 North Pittsburgh Systems, Inc. 4,100 99 Novatel Wireless, Inc. * 8,100 78 NTELOS Holdings Corp. * 4,300 77 Oplink Communications, Inc. * 4,428 91 Optium Corp. * 390 10 Parkervision, Inc. * 5,200 58 Plantronics, Inc. 12,900 273 Polycom, Inc. * 24,000 742 Powerwave Technologies, Inc. * 31,800 205 Premiere Global Services, Inc. * 19,900 188 Radyne Corp. * 5,000 54 RCN Corp. * 8,000 241 RF Micro Devices, Inc. * 52,600 357 SafeNet, Inc. * 7,127 171 SAVVIS, Inc. * 8,900 318 Shenandoah Telecom Co. 2,143 101 Sirenza Microdevices, Inc. * 6,800 53 Sonus Networks, Inc. * 69,400 457 Stratex Networks, Inc. * 26,400 128 SureWest Communications 4,000 110 Sycamore Networks, Inc. * 50,600 190 Symmetricom, Inc. * 12,600 112 Syniverse Holdings, Inc. * 6,480 97
NORTHERN FUNDS QUARTERLY REPORT 24 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS SMALL CAP INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED TELECOMMUNICATIONS - 4.5% - (CONTINUED) Tekelec * 15,900 $ 236 Time Warner Telecom, Inc., Class A * 38,800 773 USA Mobility, Inc. 7,576 169 UTStarcom, Inc. * 33,200 290 Viasat, Inc. * 6,100 182 Vonage Holdings Corp. * 8,600 60 Wireless Facilities, Inc. * 15,700 45 Zhone Technologies, Inc. * 33,150 43 ---------- 16,778 ---------- TEXTILES - 0.1% G&K Services, Inc., Class A 5,850 227 Unifirst Corp. of Massachusetts 2,700 104 ---------- 331 ---------- TOYS, GAMES & HOBBIES - 0.3% Jakks Pacific, Inc. * 7,550 165 Leapfrog Enterprises, Inc. * 9,300 88 Marvel Entertainment, Inc. * 13,000 350 RC2 Corp. * 5,709 251 Topps (The) Co. 9,800 87 ---------- 941 ---------- TRANSPORTATION - 1.5% ABX Air, Inc. * 16,500 114 American Commercial Lines, Inc. * 8,400 550 Arkansas Best Corp. 6,900 248 Atlas Air Worldwide Holdings, Inc. * 5,499 245 Bristow Group, Inc. * 6,427 232 Celadon Group, Inc. * 6,300 106 Dynamex, Inc. * 3,010 70 EGL, Inc. * 8,690 259 Florida East Coast Industries, Inc. 9,600 572 Forward Air Corp. 8,650 250 Genesee & Wyoming, Inc., Class A * 9,925 260 Gulfmark Offshore, Inc. * 4,400 165 Heartland Express, Inc. 16,670 250 Horizon Lines, Inc., Class A 3,900 105 HUB Group, Inc., Class A * 11,000 303 Knight Transportation, Inc. 15,739 268 Marten Transport Ltd. * 4,150 76 Old Dominion Freight Line, Inc. * 7,725 186 P.A.M. Transportation Services, Inc. * 1,569 35 Pacer International, Inc. 10,300 307 Patriot Transportation Holding, Inc. * 400 37
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 98.9% - CONTINUED TRANSPORTATION - 1.5% - (CONTINUED) PHI, Inc. * 3,700 $ 121 Quality Distribution, Inc. * 2,400 32 RailAmerica, Inc. * 10,700 172 Saia, Inc. * 4,000 93 Sirva, Inc. * 14,100 49 U.S. Xpress Enterprises, Inc., Class A * 2,700 45 Universal Truckload Services, Inc. * 1,700 40 USA Truck, Inc. * 2,600 42 Werner Enterprises, Inc. 14,100 247 ---------- 5,479 ---------- TRUCKING & LEASING - 0.1% AMERCO, Inc. * 2,800 244 Greenbrier Cos., Inc. 3,700 111 Interpool, Inc. 3,400 79 TAL International Group, Inc. 4,400 117 ---------- 551 ---------- WATER - 0.2% American States Water Co. 4,600 178 California Water Service Group 4,900 198 Pico Holdings, Inc. * 2,700 94 SJW Corp. 4,100 159 Southwest Water Co. 6,197 85 ---------- 714 ---------- TOTAL COMMON STOCKS (COST $283,809) 372,419 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- OTHER - 0.0% Escrow Position PetroCorp. * 1,900 -- ---------- TOTAL OTHER (COST $ -) -- ---------- RIGHTS - 0.0% Affordable Residential Communities LP * 9,400 8 CSF Holdings, Inc. * 4,212 1 REVLON, Inc. SUBS RIGHTS * 46,300 2 ---------- TOTAL RIGHTS (COST $ -) 11 ----------
EQUITY INDEX FUNDS 25 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- WARRANTS - 0.0% Imperial Credit Industries, Exp. 1/31/08, Strike $2.15 * 33 $ -- Optical Cable Corp., Exp. 10/24/07, Strike $4.88 * 147 -- Optical Cable Corp., Exp. 10/24/07,Strike $4.88 52,400 -- Redback Networks, Exp. 1/2/11, Strike $5.00 * 782 15 Redback Networks, Exp. 1/2/11, Strike $9.50 * 823 13 ---------- TOTAL WARRANTS (COST $ -) 28 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 1.3% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 4,156 4,157 U.S. Treasury Bill, (1) 4.91%, 2/22/07 645 640 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $4,797) 4,797 ---------- TOTAL INVESTMENTS - 100.2% (COST $288,606) 377,255 Liabilities less Other Assets - (0.2)% (632) ---------- NET ASSETS - 100.0% $376,623
(1) Security pledged as collateral to cover margin requirements for open futures contracts. * Non-Income Producing Security At December 31, 2006, the Small Cap Index Fund had open futures contracts as follows:
NOTIONAL UNREALIZED NUMBER OF AMOUNT CONTRACT CONTRACT LOSS TYPE CONTRACTS (000S) POSITION EXP. (000S) ---- --------- -------- -------- -------- ---------- Russell 2000 E-Mini 63 $5,008 Long 3/07 $(7)
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 288,606 ---------- Gross tax appreciation of investments $ 105,042 Gross tax depreciation of investments (16,393) ---------- Net tax appreciation of investments $ 88,649 ==========
NORTHERN FUNDS QUARTERLY REPORT 26 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS STOCK INDEX FUND
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% ADVERTISING - 0.2% Interpublic Group of Cos. (The), Inc. * 17,935 $ 219 Omnicom Group, Inc. 7,400 774 ---------- 993 ---------- AEROSPACE/DEFENSE - 2.1% Boeing (The) Co. 35,568 3,160 General Dynamics Corp. 18,300 1,360 Goodrich Corp. 4,800 219 L-3 Communications Holdings, Inc. 5,800 474 Lockheed Martin Corp. 16,446 1,514 Northrop Grumman Corp. 16,098 1,090 Raytheon Co. 20,000 1,056 Rockwell Collins, Inc. 7,100 449 United Technologies Corp. 45,900 2,870 ---------- 12,192 ---------- AGRICULTURE - 1.7% Altria Group, Inc. 93,800 8,050 Archer-Daniels-Midland Co. 29,992 958 Reynolds American, Inc. 8,100 530 UST, Inc. 7,400 431 ---------- 9,969 ---------- AIRLINES - 0.1% Southwest Airlines Co. 35,330 541 ---------- APPAREL - 0.4% Coach, Inc. * 16,500 709 Jones Apparel Group, Inc. 4,200 140 Liz Claiborne, Inc. 3,800 165 NIKE, Inc., Class B 8,900 881 VF Corp. 4,028 331 ---------- 2,226 ---------- AUTO MANUFACTURERS - 0.4% Ford Motor Co. 81,475 612 General Motors Corp. 25,000 768 PACCAR, Inc. 11,452 743 ---------- 2,123 ---------- AUTO PARTS & EQUIPMENT - 0.2% Goodyear Tire & Rubber (The) Co. * 9,058 190 Johnson Controls, Inc. 8,600 739 ---------- 929 ---------- BANKS - 6.5% Bank of America Corp. 203,040 10,840 Bank of New York Co. (The), Inc. 35,400 1,394
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED BANKS - 6.5% - (CONTINUED) BB&T Corp. 23,100 $ 1,015 Comerica, Inc. 7,350 431 Commerce Bancorp, Inc. of New Jersey 7,800 275 Compass Bancshares, Inc. 5,100 304 Fifth Third Bancorp 26,030 1,065 First Horizon National Corp. 6,300 263 Huntington Bancshares, Inc. 11,572 275 KeyCorp 16,800 639 M&T Bank Corp. 3,500 428 Marshall & Ilsley Corp. 10,600 510 Mellon Financial Corp. 17,700 746 National City Corp. 28,200 1,031 Northern Trust Corp. 7,400 449 PNC Financial Services Group, Inc. 13,800 1,022 Regions Financial Corp. 33,704 1,261 State Street Corp. 15,500 1,045 SunTrust Banks, Inc. 16,900 1,427 Synovus Financial Corp. 13,250 408 U.S. Bancorp 81,177 2,938 Wachovia Corp. 86,487 4,925 Wells Fargo & Co. 151,514 5,388 Zions Bancorporation 5,200 429 ---------- 38,508 ---------- BEVERAGES - 2.0% Anheuser-Busch Cos., Inc. 34,488 1,697 Brown-Forman Corp., Class B 3,400 225 Coca-Cola (The) Co. 92,600 4,468 Coca-Cola Enterprises, Inc. 12,800 261 Constellation Brands, Inc., Class A * 8,400 244 Molson Coors Brewing Co., Class B 2,400 183 Pepsi Bottling Group, Inc. 6,400 198 PepsiCo, Inc. 74,480 4,659 ---------- 11,935 ---------- BIOTECHNOLOGY - 1.1% Amgen, Inc. * 52,636 3,596 Biogen Idec, Inc. * 15,955 785 Celgene Corp. * 17,000 978 Genzyme Corp. * 11,900 733 Medimmune, Inc. * 11,100 359 Millipore Corp. * 2,000 133 ---------- 6,584 ----------
EQUITY INDEX FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED BUILDING MATERIALS - 0.2% American Standard Companies, Inc. 8,000 $ 367 Masco Corp. 18,800 561 ---------- 928 ---------- CHEMICALS - 1.5% Air Products & Chemicals, Inc. 9,400 661 Ashland, Inc. 3,100 215 Dow Chemical (The) Co. 43,671 1,744 du Pont (E.I.) de Nemours & Co. 42,077 2,050 Eastman Chemical Co. 3,375 200 Ecolab, Inc. 8,500 384 Hercules, Inc. * 3,900 75 International Flavors & Fragrances, Inc. 3,300 162 Monsanto Co. 24,482 1,286 PPG Industries, Inc. 7,700 495 Praxair, Inc. 14,500 860 Rohm & Haas Co. 6,443 329 Sherwin-Williams (The) Co. 5,400 343 Sigma-Aldrich Corp. 3,500 272 ---------- 9,076 ---------- COAL - 0.1% Consol Energy, Inc. 8,400 270 Peabody Energy Corp. 11,700 473 ---------- 743 ---------- COMMERCIAL SERVICES - 0.8% Apollo Group, Inc., Class A * 6,700 261 Convergys Corp. * 5,100 121 Donnelley (R.R.) & Sons Co. 9,000 320 Equifax, Inc. 5,100 207 H&R Block, Inc. 13,200 304 McKesson Corp. 13,641 692 Monster Worldwide, Inc. * 6,000 280 Moody's Corp. 10,804 746 Paychex, Inc. 15,700 621 Robert Half International, Inc. 8,000 297 Western Union (The) Co. 35,023 785 ---------- 4,634 ---------- COMPUTERS - 4.0% Affiliated Computer Services, Inc., Class A * 5,700 278 Apple Computer, Inc. * 38,100 3,233 Cognizant Technology Solutions Corp., Class A * 6,600 509 Computer Sciences Corp. * 8,100 432 Dell, Inc. * 102,600 2,574
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED COMPUTERS - 4.0% - (CONTINUED) Electronic Data Systems Corp. 22,100 $ 609 EMC Corp. of Massachusetts * 101,612 1,341 Hewlett-Packard Co. 122,742 5,056 IBM Corp. 68,340 6,639 Lexmark International, Inc., Class A * 4,500 330 NCR Corp. * 7,500 321 Network Appliance, Inc. * 16,900 664 SanDisk Corp. * 10,000 430 Sun Microsystems, Inc. * 160,700 871 Unisys Corp. * 12,000 94 ---------- 23,381 ---------- COSMETICS/PERSONAL CARE - 2.0% Avon Products, Inc. 19,744 652 Colgate-Palmolive Co. 23,800 1,553 Estee Lauder Cos. (The), Inc., Class A 5,200 212 Procter & Gamble Co. 142,707 9,172 ---------- 11,589 ---------- DISTRIBUTION/WHOLESALE - 0.1% Genuine Parts Co. 6,950 329 Grainger (W.W.), Inc. 3,800 266 ---------- 595 ---------- DIVERSIFIED FINANCIAL SERVICES - 8.7% American Express Co. 55,100 3,343 Ameriprise Financial, Inc. 10,960 597 Bear Stearns Cos. (The), Inc. 5,231 852 Capital One Financial Corp. 19,503 1,498 Charles Schwab (The) Corp. 47,925 927 Chicago Mercantile Exchange Holdings, Inc. 1,600 816 CIT Group, Inc. 9,300 519 Citigroup, Inc. 221,861 12,358 Countrywide Financial Corp. 27,100 1,150 E*TRADE Financial Corp. * 18,500 415 Fannie Mae 43,800 2,601 Federated Investors, Inc., Class B 3,814 129 Franklin Resources, Inc. 7,700 848 Freddie Mac 31,100 2,112 Goldman Sachs Group, Inc. 19,364 3,860 Janus Capital Group, Inc. 9,400 203 JPMorgan Chase & Co. 155,525 7,512 Legg Mason, Inc. 5,610 533 Lehman Brothers Holdings, Inc. 24,300 1,898 Merrill Lynch & Co., Inc. 40,284 3,750
NORTHERN FUNDS QUARTERLY REPORT 2 EQUITY INDEX FUNDS EQUITY INDEX FUND SCHEDULE OF INVESTMENTS STOCK INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED DIVERSIFIED FINANCIAL SERVICES - 8.7% - (CONTINUED) Morgan Stanley 48,718 $ 3,967 Price (T. Rowe) Group, Inc. 12,200 534 SLM Corp. 18,900 922 ---------- 51,344 ---------- ELECTRIC - 3.2% AES Corp. * 29,400 648 Allegheny Energy, Inc. * 6,600 303 Ameren Corp. 9,600 516 American Electric Power Co., Inc. 18,540 789 Centerpoint Energy, Inc. 15,122 251 CMS Energy Corp. * 11,100 185 Consolidated Edison, Inc. 10,300 495 Constellation Energy Group, Inc. 8,400 579 Dominion Resources, Inc. of Virginia 16,293 1,366 DTE Energy Co. 6,900 334 Duke Energy Corp. 57,355 1,905 Dynegy, Inc., Class A * 13,607 99 Edison International 14,100 641 Entergy Corp. 9,700 896 Exelon Corp. 30,724 1,902 FirstEnergy Corp. 14,215 857 FPL Group, Inc. 18,700 1,018 PG&E Corp. 16,100 762 Pinnacle West Capital Corp. 3,500 177 PPL Corp. 18,100 649 Progress Energy, Inc. 10,400 510 Public Service Enterprise Group, Inc. 11,650 773 Southern (The) Co. 34,400 1,268 TECO Energy, Inc. 7,600 131 TXU Corp. 20,568 1,115 Xcel Energy, Inc. 16,585 382 ---------- 18,551 ---------- ELECTRICAL COMPONENTS & EQUIPMENT - 0.4% American Power Conversion Corp. 8,500 260 Emerson Electric Co. 36,600 1,614 Molex, Inc. 6,575 208 ---------- 2,082 ---------- ELECTRONICS - 0.5% Agilent Technologies, Inc. * 18,956 661 Applera Corp. - Applied Biosystems Group 7,600 279 Jabil Circuit, Inc. 7,600 187 PerkinElmer, Inc. 4,500 100
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED ELECTRONICS - 0.5% - (CONTINUED) Sanmina-SCI Corp. * 26,800 $ 92 Solectron Corp. * 36,900 119 Symbol Technologies, Inc. 10,934 163 Tektronix, Inc. 3,100 90 Thermo Fisher Scientific, Inc. * 19,100 865 Waters Corp. * 4,100 201 ---------- 2,757 ---------- ENGINEERING & CONSTRUCTION - 0.1% Fluor Corp. 4,100 335 ---------- ENTERTAINMENT - 0.1% International Game Technology 15,600 721 ---------- ENVIRONMENTAL CONTROL - 0.2% Allied Waste Industries, Inc. * 11,100 136 Waste Management, Inc. 24,173 889 ---------- 1,025 ---------- FOOD - 1.4% Campbell Soup Co. 10,800 420 ConAgra Foods, Inc. 23,800 643 Dean Foods Co. * 5,700 241 General Mills, Inc. 15,400 887 Heinz (H.J.) Co. 15,300 689 Hershey Foods Corp. 7,200 358 Kellogg Co. 10,600 531 Kroger Co. 32,400 747 McCormick & Co., Inc. 5,100 197 Safeway, Inc. 19,300 667 Sara Lee Corp. 35,000 596 SUPERVALU, Inc. 9,792 350 Sysco Corp. 27,600 1,014 Tyson Foods, Inc., Class A 9,600 158 Whole Foods Market, Inc. 6,600 310 Wrigley (Wm.) Jr. Co. 9,625 498 ---------- 8,306 ---------- FOREST PRODUCTS & PAPER - 0.4% International Paper Co. 20,993 716 MeadWestvaco Corp. 6,843 206 Plum Creek Timber Co., Inc. 6,900 275 Temple-Inland, Inc. 4,600 212 Weyerhaeuser Co. 11,500 812 ---------- 2,221 ---------- GAS - 0.2% KeySpan Corp. 8,300 342
EQUITY INDEX FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED GAS - 0.2% - (CONTINUED) Nicor, Inc. 2,200 $ 103 NiSource, Inc. 10,400 251 Peoples Energy Corp. 1,003 45 Sempra Energy 12,071 676 ---------- 1,417 ---------- HAND/MACHINE TOOLS - 0.1% Black & Decker Corp. 3,500 280 Snap-On, Inc. 2,050 98 Stanley Works (The) 3,900 196 ---------- 574 ---------- HEALTHCARE - PRODUCTS - 3.0% Bard (C.R.), Inc. 4,400 365 Bausch & Lomb, Inc. 2,700 141 Baxter International, Inc. 29,800 1,382 Becton, Dickinson & Co. 11,100 779 Biomet, Inc. 11,350 468 Boston Scientific Corp. * 52,500 902 Johnson & Johnson 131,600 8,688 Medtronic, Inc. 52,000 2,783 Patterson Cos., Inc. * 6,900 245 St. Jude Medical, Inc. * 15,400 563 Stryker Corp. 12,800 705 Zimmer Holdings, Inc. * 10,840 850 ---------- 17,871 ---------- HEALTHCARE - SERVICES - 1.4% Aetna, Inc. 24,292 1,049 Coventry Health Care, Inc. * 6,555 328 Health Management Associates, Inc., Class A 9,300 196 Humana, Inc. * 7,100 393 Laboratory Corp. of America Holdings * 5,700 419 Manor Care, Inc. 3,650 171 Quest Diagnostics, Inc. 7,000 371 Tenet Healthcare Corp. * 20,300 141 UnitedHealth Group, Inc. 60,200 3,235 WellPoint, Inc. * 28,083 2,210 ---------- 8,513 ---------- HOME BUILDERS - 0.2% Centex Corp. 5,500 310 D.R. Horton, Inc. 11,600 307 KB Home 3,872 199 Lennar Corp., Class A 5,700 299
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED HOME BUILDERS - 0.2% - (CONTINUED) Pulte Homes, Inc. 8,800 $ 291 ---------- 1,406 ---------- HOME FURNISHINGS - 0.1% Harman International Industries, Inc. 2,700 270 Whirlpool Corp. 3,706 307 ---------- 577 ---------- HOUSEHOLD PRODUCTS/WARES - 0.4% Avery Dennison Corp. 3,800 258 Clorox Co. 6,500 417 Fortune Brands, Inc. 6,300 538 Kimberly-Clark Corp. 21,136 1,436 ---------- 2,649 ---------- HOUSEWARES - 0.1% Newell Rubbermaid, Inc. 12,108 351 ---------- INSURANCE - 4.9% ACE Ltd. 14,800 896 Aflac, Inc. 22,000 1,012 Allstate (The) Corp. 28,814 1,876 AMBAC Financial Group, Inc. 4,800 428 American International Group, Inc. 116,489 8,348 AON Corp. 13,375 473 Chubb Corp. 17,800 942 CIGNA Corp. 4,800 631 Cincinnati Financial Corp. 7,189 326 Genworth Financial, Inc., Class A 21,100 722 Hartford Financial Services Group, Inc. 14,200 1,325 Lincoln National Corp. 12,632 839 Loews Corp. 20,400 846 Marsh & McLennan Cos., Inc. 25,000 766 MBIA, Inc. 6,150 449 Metlife, Inc. 34,700 2,048 MGIC Investment Corp. 3,400 213 Principal Financial Group, Inc. 11,300 663 Progressive (The) Corp. 33,752 817 Prudential Financial, Inc. 22,300 1,915 SAFECO Corp. 5,700 357 St. Paul Travelers Cos. (The), Inc. 31,613 1,697 Torchmark Corp. 3,800 242 UnumProvident Corp. 14,261 296 XL Capital Ltd., Class A 7,859 566 ---------- 28,693 ----------
NORTHERN FUNDS QUARTERLY REPORT 4 EQUITY INDEX FUNDS EQUITY INDEX FUNDS SCHEDULE OF INVESTMENTS STOCK INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED INTERNET - 1.6% Amazon.com, Inc. * 14,039 $ 554 eBay, Inc. * 53,124 1,598 Google, Inc., Class A * 9,556 4,400 IAC/InterActiveCorp * 10,600 394 Symantec Corp. * 42,024 876 VeriSign, Inc. * 11,700 281 Yahoo!, Inc. * 55,400 1,415 ---------- 9,518 ---------- IRON/STEEL - 0.3% Allegheny Technologies, Inc. 4,532 411 Nucor Corp. 13,600 743 United States Steel Corp. 5,600 410 ---------- 1,564 ---------- LEISURE TIME - 0.4% Brunswick Corp. 4,000 128 Carnival Corp. 20,296 996 Harley-Davidson, Inc. 11,400 803 Sabre Holdings Corp., Class A 5,181 165 ---------- 2,092 ---------- LODGING - 0.5% Harrah's Entertainment, Inc. 7,950 657 Hilton Hotels Corp. 17,100 597 Marriott International, Inc., Class A 15,900 759 Starwood Hotels & Resorts Worldwide, Inc. 9,900 619 Wyndham Worldwide Corp. * 8,661 277 ---------- 2,909 ---------- MACHINERY - CONSTRUCTION & MINING - 0.4% Caterpillar, Inc. 29,100 1,785 Terex Corp. * 4,600 297 ---------- 2,082 ---------- MACHINERY - DIVERSIFIED - 0.3% Cummins, Inc. 2,200 260 Deere & Co. 10,300 979 Rockwell Automation, Inc. 8,000 489 ---------- 1,728 ---------- MEDIA - 3.5% CBS Corp., Class B 36,274 1,131 Clear Channel Communications, Inc. 22,600 803 Comcast Corp., Class A * 94,654 4,007 DIRECTV Group (The), Inc. * 35,600 888 Disney (Walt) Co. 94,403 3,235
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED MEDIA - 3.5% - (CONTINUED) Dow Jones & Co., Inc. 3,200 $ 122 Gannett Co., Inc. 10,800 653 McGraw-Hill Cos. (The), Inc. 16,400 1,116 Meredith Corp. 1,800 101 New York Times Co., Class A 7,100 173 News Corp., Class A 103,400 2,221 Scripps (E.W.) Co., Class A 3,500 175 Time Warner, Inc. 181,700 3,957 Tribune Co. 9,200 283 Univision Communications, Inc., Class A * 10,200 361 Viacom, Inc., Class B * 32,774 1,345 ---------- 20,571 ---------- MINING - 0.7% Alcoa, Inc. 39,712 1,192 Freeport-McMoRan Copper & Gold, Inc., Class B 9,100 507 Newmont Mining Corp. 19,977 902 Phelps Dodge Corp. 9,260 1,109 Vulcan Materials Co. 4,300 386 ---------- 4,096 ---------- MISCELLANEOUS MANUFACTURING - 5.1% 3M Co. 34,200 2,665 Cooper Industries Ltd., Class A 3,800 344 Danaher Corp. 10,900 790 Dover Corp. 9,200 451 Eastman Kodak Co. 13,600 351 Eaton Corp. 6,500 488 General Electric Co. 463,745 17,256 Honeywell International, Inc. 37,612 1,702 Illinois Tool Works, Inc. 19,600 905 Ingersoll-Rand Co. Ltd., Class A 14,500 567 ITT Corp. 8,400 477 Leggett & Platt, Inc. 7,700 184 Pall Corp. 4,766 165 Parker Hannifin Corp. 5,325 409 Textron, Inc. 5,300 497 Tyco International Ltd. 89,790 2,730 ---------- 29,981 ---------- OFFICE/BUSINESS EQUIPMENT - 0.2% Pitney Bowes, Inc. 9,100 420 Xerox Corp. * 45,196 766 ---------- 1,186 ----------
EQUITY INDEX FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED OIL & GAS - 7.9% Anadarko Petroleum Corp. 20,412 $ 888 Apache Corp. 15,306 1,018 Chesapeake Energy Corp. 17,500 508 Chevron Corp. 98,732 7,260 ConocoPhillips 74,046 5,328 Devon Energy Corp. 19,600 1,315 EOG Resources, Inc. 10,400 649 Exxon Mobil Corp. 262,414 20,109 Hess Corp. 12,100 600 Marathon Oil Corp. 15,909 1,472 Murphy Oil Corp. 8,700 442 Nabors Industries Ltd. * 14,700 438 Noble Corp. 6,400 487 Occidental Petroleum Corp. 39,356 1,922 Rowan Cos., Inc. 5,600 186 Sunoco, Inc. 6,100 380 Transocean, Inc. * 12,972 1,049 Valero Energy Corp. 27,200 1,392 XTO Energy, Inc. 17,000 800 ---------- 46,243 ---------- OIL & GAS SERVICES - 1.3% Baker Hughes, Inc. 14,740 1,101 BJ Services Co. 14,000 411 Halliburton Co. 45,600 1,416 National-Oilwell Varco, Inc. * 7,800 477 Schlumberger Ltd. 53,300 3,366 Smith International, Inc. 9,500 390 Weatherford International Ltd. * 14,794 618 ---------- 7,779 ---------- PACKAGING & CONTAINERS - 0.1% Ball Corp. 3,900 170 Bemis Co. 3,800 129 Pactiv Corp. * 6,900 247 Sealed Air Corp. 3,253 211 ---------- 757 ---------- PHARMACEUTICALS - 5.6% Abbott Laboratories 69,400 3,381 Allergan, Inc. 6,634 794 AmerisourceBergen Corp. 8,618 387 Barr Pharmaceuticals, Inc. * 4,600 231 Bristol-Myers Squibb Co. 89,460 2,355 Cardinal Health, Inc. 18,624 1,200
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED PHARMACEUTICALS - 5.6% - (CONTINUED) Caremark Rx, Inc. 19,300 $ 1,102 Express Scripts, Inc. * 6,400 458 Forest Laboratories, Inc. * 13,900 703 Gilead Sciences, Inc. * 20,944 1,360 Hospira, Inc. * 6,480 218 King Pharmaceuticals, Inc. * 9,700 154 Lilly (Eli) & Co. 44,596 2,323 Medco Health Solutions, Inc. * 13,668 730 Merck & Co., Inc. 97,700 4,260 Mylan Laboratories, Inc. 9,900 198 Pfizer, Inc. 327,292 8,477 Schering-Plough Corp. 67,500 1,596 Watson Pharmaceuticals, Inc. * 4,500 117 Wyeth 61,100 3,111 ---------- 33,155 ---------- PIPELINES - 0.3% El Paso Corp. 31,647 483 Kinder Morgan, Inc. 5,200 550 Questar Corp. 3,800 316 Williams Cos. (The), Inc. 26,300 687 ---------- 2,036 ---------- REAL ESTATE - 0.1% CB Richard Ellis Group, Inc., Class A * 8,400 279 Realogy Corp. * 10,291 312 ---------- 591 ---------- REAL ESTATE INVESTMENT TRUSTS - 1.0% Apartment Investment & Management Co., Class A 4,900 275 Archstone-Smith Trust 8,900 518 Boston Properties, Inc. 5,400 604 Equity Office Properties Trust 16,300 785 Equity Residential 12,500 634 Kimco Realty Corp. 8,800 396 ProLogis 11,535 701 Public Storage, Inc. 4,946 482 Simon Property Group, Inc. 10,200 1,033 Vornado Realty Trust 5,900 717 ---------- 6,145 ---------- RETAIL - 5.4% Autonation, Inc. * 7,985 170 Autozone, Inc. * 2,300 266 Bed Bath & Beyond, Inc. * 13,300 507 Best Buy Co., Inc. 17,925 882
NORTHERN FUNDS QUARTERLY REPORT 6 EQUITY INDEX FUNDS EQUITY INDEX FUND SCHEDULE OF INVESTMENTS STOCK INDEX FUND (continued)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED RETAIL - 5.4% - (CONTINUED) Big Lots, Inc. * 5,600 $ 128 Circuit City Stores, Inc. 6,800 129 Costco Wholesale Corp. 21,416 1,132 CVS Corp. 36,100 1,116 Darden Restaurants, Inc. 6,350 255 Dillard's, Inc., Class A 3,100 108 Dollar General Corp. 12,805 206 Family Dollar Stores, Inc. 6,900 202 Federated Department Stores, Inc. 23,782 907 Gap (The), Inc. 23,987 468 Home Depot (The), Inc. 92,255 3,705 Kohl's Corp. * 14,400 985 Limited Brands 15,700 454 Lowe's Cos., Inc. 67,900 2,115 McDonald's Corp. 54,300 2,407 Nordstrom, Inc. 10,000 494 Office Depot, Inc. * 12,300 470 OfficeMax, Inc. 3,533 176 Penney (J.C.) Co., Inc. 9,700 750 RadioShack Corp. 6,400 107 Sears Holdings Corp. * 3,873 650 Staples, Inc. 34,375 918 Starbucks Corp. * 34,500 1,222 Target Corp. 39,000 2,225 Tiffany & Co. 5,500 216 TJX Cos., Inc. 20,600 588 Wal-Mart Stores, Inc. 110,800 5,117 Walgreen Co. 45,700 2,097 Wendy's International, Inc. 5,900 195 Yum! Brands, Inc. 11,600 682 ---------- 32,049 ---------- SAVINGS & LOANS - 0.4% Sovereign Bancorp, Inc. 15,978 406 Washington Mutual, Inc. 43,876 1,996 ---------- 2,402 ---------- SEMICONDUCTORS - 2.4% Advanced Micro Devices, Inc. * 23,500 478 Altera Corp. * 16,700 329 Analog Devices, Inc. 15,200 500 Applied Materials, Inc. 61,000 1,125 Broadcom Corp., Class A * 20,700 669 Intel Corp. 258,300 5,230
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED SEMICONDUCTORS - 2.4% - (CONTINUED) Kla-Tencor Corp. 9,300 $ 463 Linear Technology Corp. 14,100 427 LSI Logic Corp. * 19,400 175 Maxim Integrated Products, Inc. 14,900 456 Micron Technology, Inc. * 31,700 442 National Semiconductor Corp. 12,900 293 Novellus Systems, Inc. * 6,100 210 NVIDIA Corp. * 15,200 562 PMC - Sierra, Inc. * 11,300 76 QLogic Corp. * 7,800 171 Teradyne, Inc. * 10,000 150 Texas Instruments, Inc. 67,800 1,953 Xilinx, Inc. 16,200 386 ---------- 14,095 ---------- SOFTWARE - 3.7% Adobe Systems, Inc. * 26,300 1,081 Autodesk, Inc. * 10,600 429 Automatic Data Processing, Inc. 25,800 1,271 BMC Software, Inc. * 8,700 280 CA, Inc. 18,993 430 Citrix Systems, Inc. * 8,300 224 Compuware Corp. * 17,400 145 Electronic Arts, Inc. * 14,000 705 Fidelity National Information Services, Inc. 7,100 285 First Data Corp. 34,623 883 Fiserv, Inc. * 8,200 430 IMS Health, Inc. 8,504 234 Intuit, Inc. * 15,800 482 Microsoft Corp. 389,180 11,621 Novell, Inc. * 18,200 113 Oracle Corp. * 180,500 3,094 ---------- 21,707 ---------- TELECOMMUNICATIONS - 6.0% ADC Telecommunications, Inc. * 5,928 86 Alltel Corp. 17,900 1,083 AT&T, Inc. 174,043 6,222 Avaya, Inc. * 18,800 263 BellSouth Corp. 82,000 3,863 CenturyTel, Inc. 5,050 221 Ciena Corp. * 4,157 115 Cisco Systems, Inc. * 274,100 7,491 Citizens Communications Co. 12,900 185
EQUITY INDEX FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- COMMON STOCKS - 97.7% - CONTINUED TELECOMMUNICATIONS - 6.0% - (CONTINUED) Comverse Technology, Inc. * 9,800 $ 207 Corning, Inc. * 69,300 1,297 Embarq Corp. 6,896 362 JDS Uniphase Corp. * 9,650 161 Juniper Networks, Inc. * 25,600 485 Motorola, Inc. 108,965 2,240 QUALCOMM, Inc. 75,000 2,834 Qwest Communications International, Inc. * 72,155 604 Sprint Nextel Corp. 130,236 2,460 Tellabs, Inc. * 20,600 211 Verizon Communications, Inc. 129,430 4,820 Windstream Corp. 21,999 313 ---------- 35,523 ---------- TEXTILES - 0.0% Cintas Corp. 5,600 222 ---------- TOYS, GAMES & HOBBIES - 0.1% Hasbro, Inc. 8,112 221 Mattel, Inc. 17,541 398 ---------- 619 ---------- TRANSPORTATION - 1.6% Burlington Northern Santa Fe Corp. 16,228 1,198 CSX Corp. 19,248 663 FedEx Corp. 13,840 1,503 Norfolk Southern Corp. 18,900 950 Ryder System, Inc. 3,100 158 Union Pacific Corp. 12,300 1,132 United Parcel Service, Inc., Class B 49,200 3,689 ---------- 9,293 ---------- TOTAL COMMON STOCKS (COST $386,494) 574,682 ---------- WARRANTS - 0.0% Raytheon Co., Exp. 6/16/11, Strike $37.50 * 233 4 ---------- TOTAL WARRANTS (COST $-) 4 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 2.6% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 14,036 $ 14,036 U.S. Treasury Bill, (1) 4.94%, 2/22/07 1,110 1,102 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $15,138) 15,138 ---------- TOTAL INVESTMENTS - 100.3% (COST $401,632) 589,824 Liabilities less Other Assets - (0.3)% (1,501) ---------- NET ASSETS - 100.0% $ 588,323
(1) Security pledged as collateral to cover margin requirements for open futures contracts. * Non-Income Producing Security At December 31, 2006, the Stock Index Fund had open futures contracts as follows:
NOTIONAL UNREALIZED NUMBER OF AMOUNT CONTRACT CONTRACT GAIN TYPE CONTRACTS (000S) POSITION EXP. (000S) ---- --------- -------- -------- -------- ---------- S&P 500 E-Mini 187 $13,356 Long 3/07 $31
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 401,632 ---------- Gross tax appreciation of investments $ 205,997 Gross tax depreciation of investments (17,805) ---------- Net tax appreciation of investments $ 188,192 ==========
NORTHERN FUNDS QUARTERLY REPORT 8 EQUITY INDEX FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS ARIZONA TAX-EXEMPT FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 100.3% ARIZONA - 94.3% Arizona Sports & Tourism Authority Revenue Refunding Bonds, Series A, Multipurpose Stadium Facilities Project (MBIA Insured), (1) 4.50%, 7/1/22 $ 2,000 $ 2,035 Arizona State Transportation Board Highway Revenue Bonds, 5.00%, 7/1/20 35 38 5.00%, 7/1/21 950 1,026 Arizona State Transportation Board Highway Revenue Bonds, Prerefunded, 5.75%, 7/1/09 2,390 2,514 Arizona State University COP, Research Infrastructure Project (AMBAC Insured), 5.00%, 9/1/30 2,000 2,104 Arizona State University Revenue Bonds (FGIC Insured), Prerefunded, 5.50%, 7/1/12 2,160 2,357 Chandler Water & Sewerage Revenue Bonds (MBIA Insured), 7.25%, 7/1/09 240 260 Downtown Phoenix Hotel Corp. Revenue Bonds, Series B (FGIC Insured), 5.00%, 7/1/36 1,500 1,583 Glendale G.O. Bonds, 2.00%, 7/1/18 2,600 2,073 Glendale IDA Revenue Bonds, Series A, Midwestern University, 4.63%, 5/15/07 410 411 4.75%, 5/15/08 425 430 Maricopa County School District No. 8 Osborn G.O. Refunding Bonds, Bank Qualified (FGIC Insured), 4.70%, 7/1/14 1,000 1,064 Maricopa County Unified School District No. 48 Scottsdale G.O. Unlimited Bonds, Series B, School Improvement Project 2004 (FSA Insured), 4.00%, 7/1/17 1,000 1,004 Maricopa County Unified School District No. 80 Chandler Capital Appreciation G.O. Refunding Bonds (FGIC Insured), 0.00%, 7/1/09 1,000 911
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 100.3% - CONTINUED ARIZONA - 94.3% - (CONTINUED) Maricopa County Unified School District No. 89 Dysart G.O. Bonds, Series B, School Improvement Project of 2002 (FSA Insured), 5.25%, 7/1/15 $ 1,600 $ 1,757 Maricopa County Unified School District No. 97 Deer Valley G.O. Unlimited Bonds, Series B, School Improvement Project 2004 (FSA Insured), (1) 4.00%, 7/1/18 1,250 1,245 Mesa Street & Highway Revenue Bonds (FSA Insured), 5.25%, 7/1/24 625 719 Mesa Utilities System Revenue Bonds (FGIC Insured), Prerefunded, 5.00%, 7/1/09 30 31 Northern Arizona University COP, Northern Arizona University Resh Projects (AMBAC Insured), 5.00%, 9/1/26 400 424 Northern Arizona University Revenue Bonds, Systems (FGIC Insured), Prerefunded, 5.13%, 6/1/12 785 841 5.13%, 6/1/12 770 825 Northern Arizona University Revenue Refunding Bonds (FGIC Insured), 4.50%, 6/1/31 1,000 1,003 Phoenix Civic Improvement Corp. Excise TRB, Series A, Senior Lien, Municipal Courthouse Project, 5.75%, 7/1/15 1,325 1,399 Phoenix Civic Improvement Corp. Municipal Facilities Subordinate Excise TRB (FGIC Insured), 5.75%, 7/1/15 1,000 1,074 Phoenix Civic Improvement Corp. Wastewater System Revenue Bonds, Junior Lien (FGIC Insured), Prerefunded, 6.25%, 7/1/10 1,000 1,093 Phoenix Civic Improvement Corp. Wastewater System Revenue Bonds, Junior Lien (MBIA Insured), 5.00%, 7/1/28 1,300 1,374 5.00%, 7/1/29 400 422
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 100.3% - CONTINUED ARIZONA - 94.3% - (CONTINUED) Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (FGIC Insured), 5.50%, 7/1/17 $ 3,500 $ 3,793 Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (MBIA Insured), 4.75%, 7/1/22 2,000 2,090 Phoenix G.O. Bonds, 4.50%, 7/1/22 1,000 1,007 Phoenix G.O. Bonds, Series B, Various Purpose, 5.38%, 7/1/20 1,000 1,079 Phoenix G.O. Refunding Bonds, Series A, 4.50%, 7/1/15 1,500 1,526 Phoenix G.O. Refunding Bonds, Series B, 4.50%, 7/1/20 1,100 1,110 Pima County G.O. Bonds (FSA Insured), 4.00%, 7/1/14 750 757 Pima County Unified School District No.12 Sunnyside G.O. Bonds (FGIC Insured), Prerefunded, 5.75%, 7/1/09 2,000 2,104 Pima County Unified School District No. 6 Marana G.O. Refunding Bonds (FGIC Insured), 5.40%, 7/1/14 1,300 1,382 Salt River Project Agricultural Improvement & Power District Electrical Systems Revenue Refunding Bonds, Series C, 4.90%, 1/1/08 470 474 Scottsdale Municipal Property Corp. Excise Refunding TRB, 5.00%, 7/1/20 1,250 1,388 Scottsdale Preservation Authority Excise TRB (FGIC Insured), Prerefunded, 6.00%, 7/1/08 370 387 Tempe Excise Refunding TRB, (1) 4.50%, 7/1/21 1,345 1,380 Tucson G.O. Limited Refunding Bonds (MBIA Insured), 4.25%, 7/1/18 1,000 1,018 Tucson Water Revenue Refunding Bonds (MBIA Insured), 4.00%, 7/1/18 1,000 996 ---------- 50,508 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 100.3% - CONTINUED PUERTO RICO - 6.0% Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation Bonds, Series A, Escrowed to Maturity, 5.50%, 10/1/20 $ 2,500 $ 2,686 5.50%, 10/1/40 500 537 ---------- 3,223 ---------- TOTAL MUNICIPAL BONDS (COST $51,732) 53,731 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- INVESTMENT COMPANIES - 4.7% AIM Tax Exempt Cash Fund 2,519,492 2,519 Dreyfus Tax-Exempt Cash Management Fund 2,602 3 ---------- TOTAL INVESTMENT COMPANIES (COST $2,522) 2,522 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 2.6% Arizona Health Facilities Authority Revenue VRDB, Series A (MBIA Insured), 3.89%, 1/3/07 $ 1,200 1,200 Phoenix IDA Revenue VRDB, Valley of the Sun YMCA Project (Bank of America N.A. LOC), 4.00%, 1/2/07 200 200 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $1,400) 1,400 ---------- TOTAL INVESTMENTS - 107.6% (COST $55,654) 57,653 ---------- Liabilities less Other Assets - (7.6)% (4,089) ---------- NET ASSETS - 100.0% $ 53,564
(1) When-Issued Security NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS ARIZONA TAX-EXEMPT FUND (continued) At December 31, 2006, the industry sectors for the Arizona Tax-Exempt Fund were:
INDUSTRY SECTOR % OF INVESTMENTS --------------- ---------------- Facilities 7.0% General 9.0 General Obligation 14.9 Higher Education 14.6 School District 16.4 Special Obligation 5.6 Transportation 7.5 Utilities 5.5 Water 11.9 All other sectors less than 5% 7.6 ----- Total 100.0%
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $ 55,654 -------- Gross tax appreciation of investments $ 2,062 Gross tax depreciation of investments (63) -------- Net tax appreciation of investments $ 1,999 ========
With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets. Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent the stated date on the security, the next interest reset/ puttable date for floating and variable rate securities or the prerefunded date for these types of securities. Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are safely invested, usually in Treasury securities, that will mature at the first call date of the first bond issue. Those first bonds are said to be prerefunded after this operation has taken place. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: AMBAC - American Municipal Bond Assurance Corporation COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assurance G.O. - General Obligation IDA - Industrial Development Authority MBIA - Municipal Bond Insurance Association TRB - Tax Revenue Bonds VRDB - Variable Rate Demand Bonds FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA TAX-EXEMPT FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 97.5% CALIFORNIA - 90.9% Alameda County Unified School District Capital Appreciation G.O. Bonds, Series A (FSA Insured), 0.00%, 8/1/29 $ 2,000 $ 735 Alameda County Water District Revenue Refunding Bonds (MBIA Insured), 4.75%, 6/1/20 2,000 2,038 Anaheim PFA Revenue Bonds, Electric System Distributing Facilities (MBIA Insured), 5.00%, 10/1/28 2,000 2,054 Anaheim PFA Tax Allocation Revenue Bonds, Series A, Redevelopment Project (MBIA Insured), 5.25%, 2/1/18 250 255 Anaheim Union High School District Capital Appreciation G.O. Bonds, Election 2002 (MBIA Insured), 0.00%, 8/1/28 575 222 Aztec Shops Ltd. Auxiliary Organization Student Housing Revenue Bonds, San Diego State University, 6.00%, 9/1/31 2,000 2,114 Bay Area Governments Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (FGIC Insured), 5.00%, 8/1/17 3,000 3,238 Beverly Hills Unified School District G.O. Bonds, Series A, Prerefunded, 5.38%, 8/1/12 1,370 1,496 California Educational Facilities Authority Capital Appreciation Revenue Bonds, Loyola Marymount (MBIA Insured), Prerefunded, 0.00%, 10/1/09 4,435 1,215 0.00%, 10/1/09 3,435 827 California Educational Facilities Authority Revenue Bonds, University of the Pacific, 5.00%, 11/1/30 1,500 1,575 California Health Facilities Finance Authority Revenue Bonds, Series A, Cedars-Sinai Medical Center, Prerefunded, 6.13%, 12/1/09 3,350 3,624
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 97.5% - CONTINUED CALIFORNIA - 90.9% - (CONTINUED) California Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, 5.75%, 7/1/30 $ 250 $ 258 California State G.O. Bonds, 5.13%, 6/1/24 2,000 2,085 California State G.O. Refunding Bonds (FGIC Insured), 4.75%, 2/1/29 1,000 1,014 California State G.O. Refunding Bonds, 4.00%, 10/1/17 1,000 999 4.38%, 10/1/17 1,390 1,402 5.00%, 2/1/20 1,000 1,047 5.00%, 9/1/20 650 697 5.00%, 3/1/21 1,000 1,060 5.00%, 8/1/22 500 530 5.00%, 3/1/26 1,000 1,060 California State Public Works Board Lease Revenue Refunding Bonds, Series A, California State University (FGIC Insured), 5.00%, 10/1/16 2,000 2,191 California State Public Works Board Lease Revenue Refunding Bonds, Series B, Various Community College Project (AMBAC Insured), 5.63%, 3/1/16 1,000 1,022 California State Public Works Board Lease Revenue Refunding Bonds, Series F, Department of Corrections & Rehabilitation (FGIC Insured), 5.25%, 11/1/17 1,000 1,123 California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation, 5.00%, 6/1/19 500 533 California State University Foundation Revenue Bonds, Series A, Sacramento Auxiliary (MBIA Insured), Prerefunded, 5.50%, 10/1/12 500 550 5.50%, 10/1/12 500 550 California State Various Purpose G.O. Bonds, 4.75%, 3/1/34 1,000 1,021
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 97.5% - CONTINUED CALIFORNIA - 90.9% - (CONTINUED) California Statewide Communities Development Authority Student Housing Revenue Bonds, Series A, East Campus Apartments LLC (ACA Insured), 5.63%, 8/1/34 $ 1,000 $ 1,059 Dry Creek Joint Elementary School District Capital Appreciation G.O. Bonds, Series A (FSA Insured), 0.00%, 8/1/09 400 364 East Bay Municipal Utilities District Water System Revenue Bonds (MBIA Insured), 5.00%, 6/1/26 1,000 1,042 East Bay Regional Park District G.O. Refunding Bonds, 5.00%, 9/1/17 2,250 2,296 Folsom G.O. Bonds, Series D, School Facilities Project (FGIC Insured), 5.70%, 8/1/13 200 206 Fremont-Newark Community College District G.O. Bonds, Series A (MBIA Insured), 5.38%, 8/1/19 750 809 Glendale Unified School District G.O. Bonds, Series D (MBIA Insured), 5.38%, 9/1/18 665 712 Golden State Tobacco Securitization Corp. Revenue Bonds, Series B, Enhanced Asset Backed, Prerefunded, 5.38%, 6/1/10 2,220 2,346 5.63%, 6/1/13 2,000 2,221 Huntington Beach Union High School District G.O., Election 2004 (FSA Insured), 5.00%, 8/1/29 1,155 1,221 Imperial Irrigation District COP, Electric Systems Project, 6.50%, 11/1/07 825 844 Imperial Irrigation District Refunding COP, Electric Systems Project (MBIA Insured), 5.20%, 11/1/09 175 181 Lemoore Union High School District G.O. Bonds (AMBAC Insured), 6.00%, 1/1/12 200 222
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 97.5% - CONTINUED CALIFORNIA - 90.9% - (CONTINUED) Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured), 4.75%, 7/1/15 $ 1,750 $ 1,810 Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured), Prerefunded, 4.75%, 7/1/09 1,150 1,196 Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series C (MBIA Insured), 5.00%, 7/1/29 1,500 1,584 Los Angeles Harbor Department Revenue Bonds, Escrowed to Maturity, 7.60%, 10/1/18 35 43 Lucia Mar Unified School District G.O. Refunding Bonds (FGIC Insured), 5.25%, 8/1/22 700 801 Modesto Irrigation District Refunding COP, Series B, Capital Improvements Projects, 5.30%, 7/1/22 1,655 1,656 Monterey Regional Water Pollution Control Agency Wastewater Revenue Bonds (AMBAC Insured), 5.00%, 6/1/24 1,025 1,103 Natomas Unified School District G.O., Series B, Election 2002 (FGIC Insured), 5.00%, 9/1/27 1,000 1,062 New Haven Unified School District G.O. Refunding Bonds (FSA Insured), 5.75%, 8/1/20 320 353 Orange County Public Financing Authority Lease Revenue Bonds (MBIA Insured), 5.00%, 6/1/18 1,500 1,652 Perris Unified High School District Capital Appreciation G.O. Bonds, Series B (FGIC Insured), 0.00%, 9/1/26 1,000 432 Rio Hondo Community College District G.O. Bonds, Series A, School Facilities Construction & Improvement (MBIA Insured), Prerefunded, 5.25%, 8/1/14 2,000 2,217
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 97.5% - CONTINUED CALIFORNIA - 90.9% - (CONTINUED) Ross Elementary School District G.O. Bonds, Election 2006 (MBIA Insured), 5.25%, 8/1/27 $ 850 $ 923 Sacramento City Financing Authority Revenue Bonds, Series A, Capital Improvement (AMBAC Insured), Prerefunded, 5.00%, 6/1/11 1,720 1,818 Sacramento County Sanitation District Financing Authority Revenue Bonds, Series A, 5.60%, 12/1/16 305 305 San Francisco City & County Airport Commission International Airport Revenue Refunding Bonds, Second Series Issue 20 (MBIA Insured), 4.75%, 5/1/15 1,000 1,022 San Francisco City & County Airports Commission International Airport Revenue Refunding Bonds, Second Series Issue 32F (FGIC Insured), 5.00%, 5/1/15 500 545 San Francisco City & County G.O. Bonds, Series A, Educational Facilities Community College Project, Prerefunded, 5.75%, 6/15/08 1,200 1,261 San Francisco City & County G.O. Refunding Bonds, Series R2 (AMBAC Insured), 4.00%, 6/15/19 500 499 San Francisco State Building Authority Lease Revenue Bonds, Series A, Department of General Services, 5.00%, 10/1/13 4,250 4,463 San Gabriel Unified School District G.O. Bonds, Series A (FSA Insured), 5.38%, 8/1/19 200 216 5.38%, 8/1/20 225 243 San Jose Airport Revenue Bonds, Series A (FGIC Insured), 5.25%, 3/1/16 440 464 San Jose G.O. Bonds, Libraries & Public Safety Project, 4.25%, 9/1/23 770 768
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 97.5% - CONTINUED CALIFORNIA - 90.9% - (CONTINUED) San Jose Unified School District Santa Clara County G.O. Bonds, Series A (FSA Insured), 5.38%, 8/1/19 $ 500 $ 539 San Mateo County Transit District Revenue Bonds, Series A (MBIA Insured), Prerefunded, 5.00%, 6/1/10 500 524 4.50%, 6/1/10 1,225 1,264 Santa Margarita-Dana Point Authority Revenue Bonds, Series B, California Improvements Districts 3, 3a, 4, & 4a (MBIA Insured), 7.25%, 8/1/09 1,150 1,252 Santa Rosa Wastewater Revenue Refunding Bonds, Series A (FGIC Insured), 5.25%, 9/1/16 35 39 Santa Rosa Wastewater Revenue Refunding Bonds, Series A, Subregional Wastewater Project (FGIC Insured), 4.75%, 9/1/16 200 203 South Placer Wastewater Authority Revenue Bonds, Series A (FGIC Insured), Prerefunded, 5.00%, 11/1/10 2,410 2,558 Torrance Hospital Revenue Bonds, Series A, Torrance Memorial Medical Center, 6.00%, 6/1/22 500 544 University of California Revenue Bonds, Series A, Limited Project (MBIA Insured), 4.75%, 5/15/26 1,000 1,028 University of California Revenue Bonds, Series B, Limited Project, 4.75%, 5/15/38 2,525 2,588 University of California Revenue Bonds, Series C (MBIA Insured), 4.75%, 5/15/31 1,000 1,032 University of California Revenue Bonds, Series J (FSA Insured), (1) 4.50%, 5/15/26 2,505 2,530 University of California Revenue Bonds, Series Q, Multiple Purpose Projects (FSA Insured), Prerefunded, 5.00%, 9/1/11 2,000 2,141
FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 97.5% - CONTINUED CALIFORNIA - 90.9% - (CONTINUED) Vista Unified School District G.O. Bonds, Series A (FSA Insured), 5.38%, 8/1/16 $ 100 $ 109 5.38%, 8/1/17 190 206 Walnut Valley Unified School District G.O. Refunding Bonds, Series A (MBIA Insured), 7.20%, 2/1/16 1,000 1,177 Washington Township Healthcare District Revenue Bonds, 5.00%, 7/1/09 405 413 5.00%, 7/1/11 500 513 5.00%, 7/1/12 1,270 1,303 West Kern Community College District Capital Appreciation G.O. Unlimited Bonds, Series B, Election 2004 (XLCA Insured), 0.00%, 11/1/21 2,280 1,159 ---------- 97,616 ---------- PUERTO RICO - 5.6% Puerto Rico Commonwealth Highway & Transportation Authority Revenue Bonds, Series B (MBIA Insured), Prerefunded, 5.75%, 7/1/10 1,600 1,726 Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation Bonds, Series A, Escrowed to Maturity, 5.50%, 10/1/40 4,000 4,291 ---------- 6,017 ---------- VIRGIN ISLANDS - 1.0% Virgin Islands PFA Revenue Bonds, Series A, Gross Receipts Tax Lien Note, 5.63%, 10/1/10 1,050 1,078 ---------- TOTAL MUNICIPAL BONDS (COST $99,261) 104,711 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 3.2% California State Economic Recovery Revenue VRDB, Series C-8 (Lloyds TSB Bank PLC LOC), 3.75%, 1/2/07 $ 2,450 $ 2,450 Los Angeles Department of Water & Power Waterworks Revenue VRDB, Subseries B-1, 3.82%, 1/4/07 100 100 San Francisco City & County Redevelopment Agency Multifamily Revenue VRDB, Series B, Housing - Bayside Village Project (Bank One Arizona N.A. LOC), 3.77%, 1/3/07 900 900 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $3,450) 3,450 ---------- TOTAL INVESTMENTS - 100.7% (COST $102,711) 108,161 ---------- Liabilities less Other Assets - (0.7)% (741) ---------- NET ASSETS - 100.0% $ 107,420
(1) When-Issued Security At December 31, 2006, the industry sectors for the California Tax-Exempt Fund were:
INDUSTRY SECTOR % OF INVESTMENTS --------------- ---------------- General 8.4% General Obligation 15.5 Higher Education 18.0 Medical 5.9 School District 10.2 Transportation 6.1 Utilities 7.9 All other sectors less than 5% 28.0 ----- Total 100.0%
NORTHERN FUNDS QUARTERLY REPORT 4 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA TAX-EXEMPT FUND (continued) Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $102,711 -------- Gross tax appreciation of investments $ 5,487 Gross tax depreciation of investments (37) -------- Net tax appreciation of investments $ 5,450 ========
With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets. Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent the stated date on the security, the next interest reset/ puttable date for floating and variable rate securities or the prerefunded date for these types of securities. Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are safely invested, usually in Treasury securities, that will mature at the first call date of the first bond issue. Those first bonds are said to be prerefunded after this operation has taken place. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: ACA - American Capital Access AMBAC - American Municipal Bond Assurance Corporation COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assurance G.O. - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Insurance Association PFA - Public Finance Authority TRB - Tax Revenue Bonds VRDB - Variable Rate Demand Bonds XLCA - XL Capital Assurance FIXED INCOME FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 87.9% CALIFORNIA - 87.2% Antelope Valley Union High School District Capital Appreciation G.O. Bonds, Series B, Election 2002 (MBIA Insured), 0.00%, 8/1/29 $ 3,500 $ 1,286 Arcade Water District Revenue COP (FGIC Insured), Prerefunded, 5.00%, 11/1/07 1,000 1,031 Bay Area Governments Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (FGIC Insured), 5.00%, 8/1/17 3,000 3,238 California Health Facilities Financing Authority Revenue Refunding Bonds, Cedars-Sinai Medical Center, 5.00%, 11/15/13 1,000 1,058 California Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, 5.75%, 7/1/30 1,000 1,034 California Infrastructure & Economic Development Bank Revenue Bonds, Series C, J Paul Getty, 3.90%, Mandatory Put 12/1/11 2,000 2,023 California State Department of Water Resources Power Supply Revenue Bonds, Series A (AMBAC Insured), 5.50%, 5/1/14 500 549 California State G.O. Refunding Bonds (FGIC Insured), 4.75%, 2/1/19 1,000 1,023 California State G.O. Refunding Bonds, 5.00%, 2/1/20 850 890 5.00%, 9/1/20 2,055 2,203 5.00%, 3/1/21 1,500 1,591 5.00%, 8/1/22 920 976 5.00%, 3/1/26 500 530 California State Public Works Board Lease Revenue Refunding Bonds, Series A, California State University (FGIC Insured), 5.00%, 10/1/16 1,000 1,096 5.25%, 10/1/17 1,000 1,123
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 87.9% - CONTINUED CALIFORNIA - 87.2% - (CONTINUED) California State Public Works Board Lease Revenue Refunding Bonds, Series A, Department of Corrections State Prisons (AMBAC Insured), 5.25%, 12/1/13 $ 1,350 $ 1,462 California State Public Works Board Lease Revenue Refunding Bonds, Series A, Trustees California State University, 5.25%, 10/1/14 3,545 3,661 California State Public Works Board Lease Revenue Refunding Bonds, Series F, Department of Corrections & Rehabilitation (FGIC Insured), 5.25%, 11/1/17 1,000 1,123 California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation, 5.00%, 6/1/19 2,000 2,131 California State Various Purpose G.O. Bonds, 5.25%, 11/1/24 1,000 1,074 4.75%, 3/1/34 1,000 1,021 California Statewide Communities Development Authority Revenue COP, John Muir/Mount Diablo Health System (MBIA Insured), 5.50%, 8/15/12 4,030 4,269 California Statewide Communities Development Authority Student Housing Revenue Bonds, Series A, East Campus Apartments LLC (ACA Insured), 5.00%, 8/1/12 1,775 1,854 Contra Costa County Home Mortgage Revenue Bonds, GNMA Mortgage Backed Securities Program (Colld. by GNMA), Escrowed to Maturity, 7.50%, 5/1/14 1,000 1,243 Desert Sands Unified School District G.O. Refunding Bonds (AMBAC Insured), 0.00%, 6/1/13 2,750 2,153 Duarte Redevelopment Agency SFM Revenue Refunding Bonds, Series B, Mortgage Backed Securities Program (Colld. by FNMA), Escrowed to Maturity, 6.88%, 10/1/11 950 1,083 East Bay Regional Park District G.O. Refunding Bonds, 5.00%, 9/1/17 250 255
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 87.9% - CONTINUED CALIFORNIA - 87.2% - (CONTINUED) Fremont-Newark Community College District G.O. Bonds, Series A (MBIA Insured), 5.38%, 8/1/18 $ 1,350 $ 1,455 5.38%, 8/1/19 625 674 Glendale Unified School District G.O. Bonds, Series D (MBIA Insured), 5.38%, 9/1/18 1,000 1,071 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed (AMBAC Insured), 5.00%, 6/1/21 1,000 1,048 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series B, Enhanced Asset Backed, Escrowed to Maturity, 5.00%, 6/1/10 2,000 2,089 Imperial Irrigation District COP, Electric Systems Project, 6.50%, 11/1/07 1,030 1,054 Los Angeles Community College District G.O. Bonds, Series E, 2003 Election (FSA Insured), 5.00%, 8/1/17 300 329 Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured), 4.75%, 7/1/15 1,250 1,292 Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured), Prerefunded, 4.75%, 7/1/09 850 884 Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series C (MBIA Insured), 5.00%, 7/1/29 1,300 1,373 Lucia Mar Unified School District G.O. Refunding Bonds (FGIC Insured), 5.25%, 8/1/22 1,300 1,487 Metropolitan Water District of Southern California Waterworks Revenue Bonds, Series A, Prerefunded, 5.50%, 7/1/09 1,350 1,428
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 87.9% - CONTINUED CALIFORNIA - 87.2% - (CONTINUED) Modesto Wastewater Revenue Refunding Bonds, Series A (FSA Insured), 5.25%, 11/1/18 $ 1,000 $ 1,103 Newark Unified School District Capital Appreciation G.O. Bonds, Series D, Election of 1997 (FSA Insured), 0.00%, 8/1/24 2,430 1,134 Orange County PFA Lease Revenue Bonds (MBIA Insured), 5.00%, 6/1/18 1,500 1,652 Orange County Water District COP, Series B (MBIA Insured), 5.38%, 8/15/18 1,000 1,086 Ross Elementary School District G.O. Bonds, Election 2006 (MBIA Insured), 5.25%, 8/1/27 455 494 Sacramento County Sanitation District Financing Authority Revenue Bonds, Series A, 5.60%, 12/1/16 915 916 San Francisco City & County Airport Commission International Airport Revenue Refunding Bonds, Second Series Issue 20 (MBIA Insured), 4.75%, 5/1/15 500 511 San Francisco City & County Airports Commission International Airport Revenue Refunding Bonds, Second Series Issue 32F (FGIC Insured), 5.00%, 5/1/15 3,300 3,596 San Francisco City & County G.O. Bonds, Series A, Educational Facilities Community College Project, Prerefunded, 5.75%, 6/15/08 700 736 San Francisco City & County G.O. Unlimited Refunding Bonds, Series R2 (AMBAC Insured), 4.00%, 6/15/19 1,500 1,496 San Gabriel Unified School District G.O. Bonds, Series A (FSA Insured), 5.38%, 8/1/18 180 195 San Jose Airport Revenue Bonds, Series A (FGIC Insured), 5.25%, 3/1/16 1,000 1,055
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 87.9% - CONTINUED CALIFORNIA - 87.2% - (CONTINUED) San Marcos PFA Capital Appreciation Custom Receipts Revenue Bonds, Escrowed to Maturity, 0.00%, 7/1/11 $ 1,000 $ 846 San Mateo County Community College District G.O. Bonds, Series A, Election of 2001 (FGIC Insured), 5.00%, 9/1/21 1,000 1,063 San Mateo County Transit District Revenue Bonds, Series A (MBIA Insured), Prerefunded, 5.00%, 6/1/10 575 602 Santa Rosa Wastewater Revenue Refunding Bonds, Series A, Subregional Wastewater Project (FGIC Insured), 4.75%, 9/1/16 1,000 1,016 Southern California Public Power Authority Capital Appreciation Subordinate Revenue Refunding Bonds, Southtran Transmission Project, 0.00%, 7/1/14 1,000 738 Southern California Public Power Authority Power Project Revenue Bonds, 6.75%, 7/1/12 2,100 2,379 University of California Revenue Bonds, Series A, Limited Project (MBIA Insured), 4.75%, 5/15/26 1,900 1,954 University of California Revenue Bonds, Series B, Limited Project, 4.75%, 5/15/38 1,750 1,794 University of California Revenue Bonds, Series C (MBIA Insured), 4.75%, 5/15/31 2,000 2,064 Washington Township Healthcare District Revenue Bonds, 4.50%, 7/1/07 1,005 1,007 5.00%, 7/1/09 250 255 ---------- 82,856 ---------- VIRGIN ISLANDS - 0.7% Virgin Islands PFA Revenue Bonds, Series A, Gross Receipts Tax Lien Note, 5.63%, 10/1/10 705 724 ---------- TOTAL MUNICIPAL BONDS (COST $80,706) 83,580 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 8.6% Bay Area Toll Authority Revenue VRDB, Series C, San Francisco Bay Area (AMBAC Insured), 3.73%, 1/4/07 $ 100 $ 100 California Health Facilities Financing Authority Revenue VRDB, Series J, Health Facilities-Catholic (Bank of America N.A. LOC), 3.73%, 1/3/07 100 100 California Pollution Control Financing Authority PCR Refunding VRDB (Bank One N.A. LOC), 3.92%, 1/2/07 1,500 1,500 California State Department of Water Resources Power Supply Revenue VRDB, Series B-1 (Bank Of New York LOC), 3.92%, 1/2/07 1,400 1,400 California State Department of Water Resources Power Supply Revenue VRDB, Series C-4 (JPMorgan Chase Bank LOC), 3.84%, 1/4/07 100 100 California State Department of Water Resources Power Supply Revenue VRDB, Subseries F-5 (Citibank N.A. LOC), 3.86%, 1/2/07 100 100 California State Department of Water Resources Power Supply Revenue VRDB, Subseries G-1 (Bank of Nova Scotia LOC), 3.82%, 1/4/07 1,100 1,100 California State Department of Water Resources Power Supply VRDB, Series C-7 (FSA Insured), 3.75%, 1/4/07 750 750 Irvine Improvement Act 1915 Limited Obligation Special Assessment VRDB, Assessment District No. 93-14 (Bank of America N.A. LOC), 3.75%, 1/2/07 200 200 Los Angeles Department of Water & Power Waterworks Revenue VRDB, Subseries B-1, 3.82%, 1/4/07 200 200 Metropolitan Water District of Southern California Waterworks Revenue Refunding VRDB, Series C1, 3.70%, 1/4/07 300 300 Orange County Sanitation District VRDB COP, 3.75%, 1/2/07 300 300
FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 8.6% - CONTINUED San Francisco City & County Redevelopment Agency Multifamily Revenue VRDB, Series A, Bayside Village Project (Bank One Arizona N.A. LOC), 3.77%, 1/3/07 $ 500 $ 500 San Francisco City & County Redevelopment Agency Multifamily Revenue VRDB, Series B, Housing - Bayside Village Project (Bank One Arizona N.A. LOC), 3.77%, 1/3/07 1,500 1,500 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $8,150) 8,150 ---------- TOTAL INVESTMENTS - 96.5% (COST $88,856) 91,730 ---------- Other Assets less Liabilities - 3.5% 3,312 ---------- NET ASSETS - 100.0% $ 95,042
At December 31, 2006, the industry sectors for the California Intermediate Tax- Exempt Fund were:
INDUSTRY SECTOR % OF INVESTMENTS --------------- ---------------- Airport 5.6% General 6.7 General Obligation 16.3 Higher Education 12.7 Medical 7.3 Power 8.9 School District 8.5 Utilities 10.8 All other sectors less than 5% 23.2 ----- Total 100.0%
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $88,856 ------- Gross tax appreciation of investments $ 2,958 Gross tax depreciation of investments (84) ------- Net tax appreciation of investments $ 2,874 =======
With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets. Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent the stated date on the security, the next interest reset/puttable date for floating and variable rate securities or the prerefunded date for these types of securities. Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are safely invested, usually in Treasury securities, that will mature at the first call date of the first bond issue. Those first bonds are said to be prerefunded after this operation has taken place. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: ACA - American Capital Access AMBAC - American Municipal Bond Assurance Corporation Colld. - Collateralized COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FNMA - Fannie Mae FSA - Financial Security Assurance GNMA - Government National Mortgage Association G.O. - General Obligation LOC - Letter of Credit MBIA - Municipal Bond Insurance Association PCR - Pollution Control Revenue PFA - Public Finance Authority SFM - Single Family Mortgage TRB - Tax Revenue Bonds VRDB - Variable Rate Demand Bonds NORTHERN FUNDS QUARTERLY REPORT 4 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS FIXED INCOME FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- ASSET-BACKED SECURITIES - 14.8% COMMERCIAL MORTGAGE SERVICES - 14.5% Banc of America Commercial Mortgage, Inc., Series 2004-5, Class A2, 4.18%, 11/10/41 $ 4,810 $ 4,686 Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A2, 4.74%, 9/11/42 9,085 8,944 Bear Stearns Commercial Mortgage Securities, Series 2006-PW13, Class A4, 5.54%, 9/11/41 8,960 9,089 Chase Manhattan Bank-First Union National Bank, Series 1999-1, Class A2, 7.44%, 8/15/31 7,390 7,726 Commercial Mortgage Acceptance Corp., Series 1998-C2, Class A3, 6.04%, 9/15/30 5,319 5,353 Commercial Mortgage Asset Trust, Series 1999-C1, Class A3, 6.64%, 1/17/32 4,820 4,939 Credit Suisse First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A3, 6.13%, 4/15/37 8,858 9,191 Credit Suisse First Boston Mortgage Securities Corp., Series 2004-C5, Class A2, 4.18%, 11/15/37 7,780 7,545 GMAC Commercial Mortgage Securities, Inc., Series 2002-C3, Class A2, 4.93%, 7/10/39 2,555 2,514 Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A2, 4.31%, 8/10/42 2,155 2,098 Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 5.91%, 7/10/38 10,860 11,367 JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A2, 4.63%, 3/15/46 5,185 5,095
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- ASSET-BACKED SECURITIES - 14.8% - CONTINUED COMMERCIAL MORTGAGE SERVICES - 14.5% -(CONTINUED) LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A2, 4.55%, 7/15/30 $ 7,982 $ 7,827 LB-UBS Commercial Mortgage Trust, Series 2005-C5, Class A2, 4.89%, 9/15/30 9,045 8,958 LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4, 5.37%, 9/15/39 8,920 8,935 Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A2, 4.07%, 10/12/41 4,955 4,813 Morgan Stanley Capital I, Series 2003-T11, Class A4, 5.15%, 6/13/41 8,965 8,901 Morgan Stanley Capital I, Series 2006-HQ9, Class A4, 5.73%, 7/12/44 10,860 11,163 Morgan Stanley Dean Witter Capital I, Series 2001-TOP1, Class A4, 6.66%, 2/15/33 3,300 3,448 Morgan Stanley Dean Witter Capital I, Series 2001-TOP3, Class A4, 6.39%, 7/15/33 9,085 9,470 ---------- 142,062 ---------- WHOLE LOAN - 0.3% Washington Mutual, Inc., Series 2003-AR7, Class A5, 3.07%, 8/25/33 3,003 2,942 ---------- TOTAL ASSET-BACKED SECURITIES (COST $145,684) 145,004 ---------- CORPORATE BONDS - 20.3% APPAREL - 0.5% Levi Strauss & Co., 12.25%, 12/15/12 4,445 4,945 ---------- BANKS - 0.3% RBS Capital Trust III, 5.51%, 9/29/49 2,740 2,708 ---------- DIVERSIFIED FINANCIAL SERVICES - 7.7% ANZ Capital Trust, (1)(2) 4.48%, 1/29/49 4,500 4,374
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- CORPORATE BONDS - 20.3%- CONTINUED DIVERSIFIED FINANCIAL SERVICES - 7.7% - (CONTINUED) Capital One Capital III, 7.69%, 8/15/36 $ 5,050 $ 5,719 General Electric Capital Corp., 5.88%, 2/15/12 8,250 8,484 Goldman Sachs Group, Inc., 6.45%, 5/1/36 3,175 3,303 International Lease Finance Corp., 5.40%, 2/15/12 5,610 5,615 Lehman Brothers Holdings, Inc., 5.75%, 5/17/13 3,380 3,433 Merrill Lynch & Co., Inc., 6.22%, 9/15/26 3,055 3,148 Nelnet, Inc., 7.40%, 9/29/36 3,550 3,656 Power Receivable Finance LLC, (1) (2) 6.29%, 1/1/12 1,338 1,345 Residential Capital Corp., 7.20%, 4/17/09 (1) (2) 5,460 5,489 6.38%, 6/30/10 4,240 4,289 Swiss Re Capital I LP, (1) (2) 6.85%, 5/29/49 5,000 5,246 TRAINS, (1) 7.55%, 5/1/16 18,658 19,040 UBS Preferred Funding Trust V, 6.24%, 5/29/49 2,605 2,698 ---------- 75,839 ---------- ELECTRIC - 1.9% AES (The) Corp., 9.50%, 6/1/09 5,135 5,495 Edison Mission Energy, 7.73%, 6/15/09 4,325 4,476 PSEG Energy Holdings LLC, 10.00%, 10/1/09 5,215 5,710 Virginia Electric and Power Co., 6.00%, 1/15/36 2,410 2,399 ---------- 18,080 ---------- GAMING - 1.0% Harrah's Operating Co., Inc., 6.50%, 6/1/16 5,985 5,359
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- CORPORATE BONDS - 20.3% - CONTINUED GAMING - 1.0% - (CONTINUED) MGM Mirage, 7.63%, 1/15/17 $ 4,815 $ 4,827 ---------- 10,186 ---------- HEALTHCARE - SERVICES - 0.4% HCA, Inc., (1) 9.13%, 11/15/14 3,305 3,532 ---------- HOLDING COMPANIES - DIVERSIFIED - 0.4% Kansas City Southern Railway, 9.50%, 10/1/08 4,105 4,290 ---------- INSURANCE - 1.2% Genworth Financial, Inc., 6.15%, 11/15/66 3,600 3,595 Lincoln National Corp., 7.00%, 5/17/66 3,480 3,688 Metlife, Inc., 6.40%, 12/15/36 4,325 4,345 ---------- 11,628 ---------- MACHINERY - DIVERSIFIED - 0.3% Case New Holland, Inc., 9.25%, 8/1/11 3,130 3,314 ---------- MEDIA - 0.8% Charter Communications Operating LLC/Charter Communications Operating Capital, (1) 8.00%, 4/30/12 4,545 4,721 Comcast Corp., 4.95%, 6/15/16 3,610 3,377 ---------- 8,098 ---------- OIL & GAS - 1.0% Premcor Refining Group (The), Inc., 9.50%, 2/1/13 1,950 2,106 6.75%, 5/1/14 7,385 7,526 ---------- 9,632 ---------- OIL & GAS PRODUCERS - 0.3% Chesapeake Energy Corp., 7.50%, 6/15/14 3,185 3,308 ----------
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS FIXED INCOME FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- CORPORATE BONDS - 20.3% - CONTINUED OIL & GAS SERVICES - 0.4% Dresser-Rand Group, Inc., 7.38%, 11/1/14 $ 3,830 $ 3,859 ---------- PIPELINES - 0.7% Consolidated Natural Gas Co., 5.00%, 3/1/14 2,905 2,802 Williams Cos., Inc., 8.13%, 3/15/12 3,435 3,718 ---------- 6,520 ---------- REAL ESTATE - 0.3% EOP Operating LP, 7.88%, 7/15/31 2,595 3,058 ---------- REAL ESTATE INVESTMENT TRUSTS - 0.8% iStar Financial, Inc., 5.88%, 3/15/16 3,110 3,082 Simon Property Group LP, 5.25%, 12/1/16 4,780 4,658 ---------- 7,740 ---------- RETAIL - 0.6% Home Depot, Inc., 5.88%, 12/16/36 5,750 5,643 ---------- SAVINGS & LOANS - 0.6% Washington Mutual Preferred Funding Delaware, (1) 6.53%, 3/29/49 5,600 5,536 ---------- TELECOMMUNICATIONS - 1.1% Sprint Capital Corp., 6.90%, 5/1/19 3,805 3,923 Verizon Global Funding Corp., 5.85%, 9/15/35 3,220 3,084 Verizon New Jersey, Inc., 5.88%, 1/17/12 2,335 2,365 Verizon of New England, Inc., 6.50%, 9/15/11 1,600 1,645 ---------- 11,017 ---------- TOTAL CORPORATE BONDS (COST $197,608) 198,933 ----------
PRINCIPAL AMOUNT VALUE (000S)(3) (000S) ------------ ---------- DEBT OBLIGATION - 2.9% JAPANESE YEN - 2.9% Government of Japan Ten Year Bond, 1.70%, 9/20/16 3,350,000 $ 28,243 ---------- TOTAL DEBT OBLIGATION (COST $28,851) 28,243 ---------- FOREIGN BONDS - 1.6% EURO - 1.6% Barclays Bank PLC, 4.88%, 12/31/49 1,500 1,916 Bayer A.G., 6.00%, 4/10/12 2,300 3,253 Publicis Group, 4.13%, 1/31/12 1,500 1,936 Rolls-Royce Group PLC, 4.50%, 3/16/11 1,600 2,126 Telecom Italia Finance S.A., 7.75%, 1/24/33 3,000 4,692 TNT N.V., 3.88%, 6/1/15 1,500 1,877 ---------- 15,800 ---------- TOTAL FOREIGN BONDS (COST $15,305) 15,800 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- FOREIGN ISSUER BONDS - 4.6% BANKS - 1.7% HSBC Holdings PLC, 6.50%, 5/2/36 $ 4,755 5,115 Lloyds TSB Group PLC, (1) 6.27%, 12/31/49 5,805 5,805 Shinsei Finance Cayman Ltd., (1) (2) 6.42%, 1/29/49 5,975 5,968 ---------- 16,888 ---------- DIVERSIFIED FINANCIAL SERVICES - 1.5% MUFG Capital Finance 1 Ltd., 6.35%, 7/29/49 8,255 8,378 SMFG Preferred Capital 1 Ltd., (1) 6.08%, 1/29/49 6,515 6,462 ---------- 14,840 ----------
FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- FOREIGN ISSUER BONDS - 4.6% - CONTINUED ELECTRIC - 0.3% Abu Dhabi National Energy Co., (1) 6.50%, 10/27/36 $ 3,065 $ 3,161 ---------- INSURANCE - 0.9% Allied World Assurance Holdings Ltd. of Bermuda, 7.50%, 8/1/16 2,620 2,812 AXA S.A., (1) 6.46%, 12/14/18 5,505 5,435 ---------- 8,247 ---------- OIL & GAS - 0.2% Dong Energy A/S, 5.50%, 6/29/15 1,500 1,988 ---------- TOTAL FOREIGN ISSUER BONDS (COST $44,653) 45,124 ---------- U.S. GOVERNMENT AGENCIES - 38.4% (4) FANNIE MAE - 25.4% Pool #255452, 5.50%, 10/1/19 7,530 7,536 Pool #535714, 7.50%, 1/1/31 230 240 Pool #535982, 7.50%, 5/1/31 521 543 Pool #545003, 8.00%, 5/1/31 18 19 Pool #545437, 7.00%, 2/1/32 514 529 Pool #545556, 7.00%, 4/1/32 345 355 Pool #545757, 7.00%, 6/1/32 2,547 2,621 Pool #555189, 7.00%, 12/1/32 1,719 1,768 Pool #581806, 7.00%, 7/1/31 772 794 Pool #725424, 5.50%, 4/1/34 23,175 22,939 Pool #725787, 5.00%, 9/1/19 18,252 17,963 Pool #739433, 5.00%, 10/1/18 490 483
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- U.S. GOVERNMENT AGENCIES - 38.4% (4) - CONTINUED FANNIE MAE - 25.4% - (CONTINUED) Pool #796371, 5.00%, 10/1/19 $ 291 $ 286 Pool #796457, 6.00%, 9/1/34 13,028 13,126 Pool #797773, 5.00%, 3/1/20 2,031 1,996 Pool #814782, 7.00%, 4/1/35 55 57 Pool #831810, 6.00%, 9/1/36 19,655 19,788 Pool TBA, (5) 4.50%, 1/15/18 27,165 26,197 5.00%, 1/1/34 31,270 30,185 6.00%, 12/31/49 65,565 65,995 5.50%, 12/31/49 1,750 1,749 5.50%, 12/31/64 35,025 34,609 ---------- 249,778 ---------- FREDDIE MAC - 0.6% Pool TBA, (5) 5.50%, 1/15/33 6,003 5,791 ---------- FREDDIE MAC GOLD - 11.7% Pool #A46279, 5.00%, 7/1/35 28,101 27,123 Pool #C00910, 7.50%, 1/1/30 832 868 Pool TBA, (5) 5.50%, 12/15/08 85,070 84,113 6.00%, 1/31/33 2,700 2,719 ---------- 114,823 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.7% Pool #595091, 6.00%, 10/15/32 2,192 2,225 Pool #627123, 5.50%, 3/15/34 4,625 4,606 ---------- 6,831 ---------- TOTAL U.S. GOVERNMENT AGENCIES (COST $380,476) 377,223 ---------- U.S. GOVERNMENT OBLIGATIONS - 15.1% U.S. TREASURY BOND - 0.5% 4.50%, 2/15/36 4,819 4,583 ----------
NORTHERN FUNDS QUARTERLY REPORT 4 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS FIXED INCOME FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- U.S. GOVERNMENT OBLIGATIONS - 15.1% - CONTINUED U.S. TREASURY NOTES - 14.6% 4.88%, 10/31/08 $ 12,220 $ 12,226 4.63%, 11/15/09 10,988 10,954 4.50%, 11/30/11 2,200 2,180 4.63%, 11/15/16 119,276 118,493 ---------- 143,853 ---------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $149,234) 148,436 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- WARRANTS - 0.0% Leap Wireless International, Exp. 4/15/10, Strike $96.80,(1) * 500 -- ---------- TOTAL WARRANTS (COST $5) -- ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 28.0% FHLB Discount Note, 4.87%, 1/3/07 $ 128,135 128,101 ING, Belgium, Brussels, Eurodollar Time Deposit, 5.28%, 1/3/07 146,746 146,746 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $274,847) 274,847 ---------- TOTAL INVESTMENTS - 125.7% (COST $1,236,663) 1,233,610 ---------- Liabilities less Other Assets - (25.7)% (252,177) ---------- NET ASSETS - 100.0% $ 981,433
(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of Northern Funds. (2) Restricted security that has been deemed illiquid. At December 31, 2006, the value of these restricted illiquid securities amounted to approximately $22,422,000 or 2.3% of net assets. Additional information on each restricted illiquid security is as follows:
ACQUISITION ACQUISITION COST SECURITY DATE (000S) -------- ---------------------- ----------- ANZ Capital Trust, 4.48%, 1/29/49 9/21/06 $ 4,368 Power Receivable Finance LLC, 6.29%, 1/1/12 9/30/03 1,337 Residential Capital Corp., 7.20%, 4/17/09 9/29/06 5,486 Shinsei Finance Cayman Ltd., 6.42%, 1/29/49 2/16/06 6,011 Swiss Re Capital I LP, 6.85%, 5/29/49 5/4/06 5,000
(3) Principal amounts stated in local currencies. (4) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. (5) When-Issued Security * Non-Income Producing Security At December 31, 2006, Fixed Income Fund had outstanding forward foreign currency exchange contracts as follows:
AMOUNT IN AMOUNT CONTRACTS (LOCAL EXCHANGE (LOCAL UNREALIZED TO DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT GAINS CURRENCY (000S) CURRENCY (000S) DATE (000S) ---------------- --------- ----------- --------- ---------- ---------- Japanese Yen 3,367,150 U.S. Dollar 28,578 1/11/07 $224 Euro 14,300 U.S. Dollar 18,929 1/12/07 38 ---- Total $262
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $1,236,663 ---------- Gross tax appreciation of investments $ 4,423 Gross tax depreciation of investments (7,476) ---------- Net tax depreciation of investments $ (3,053) ==========
FIXED INCOME FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS GLOBAL FIXED INCOME FUND
PRINCIPAL AMOUNT VALUE (000S)(1) (000S) ------------- ---------- DEBT OBLIGATIONS - 96.9% BRITISH POUND STERLING - 10.9% Treasury of Great Britain, 5.00%, 3/7/08 362 $ 707 4.25%, 3/7/11 235 447 5.00%, 9/7/14 300 593 4.75%, 3/7/20 238 471 5.00%, 3/7/25 159 331 4.25%, 3/7/36 317 625 ---------- 3,174 ---------- CANADIAN DOLLAR - 3.8% Government of Canada, 5.00%, 6/1/14 1,230 1,118 ---------- DANISH KRONE - 4.2% Government of Denmark, 4.00%, 8/15/08 6,920 1,228 ---------- EURO - 35.8% Bundesobligation, 3.25%, 4/17/09 185 241 Buoni Poliennali Del Tesoro, 4.50%, 5/1/09 280 374 5.25%, 11/1/29 590 874 Deutsche Bundesrepublik, 4.25%, 1/4/14 850 1,143 4.00%, 7/4/16 420 556 6.25%, 1/4/24 450 752 6.50%, 7/4/27 990 1,736 5.50%, 1/4/31 95 152 Government of Belgium, 5.00%, 9/28/11 400 552 4.25%, 9/28/14 190 256 Government of Finland, 5.00%, 7/4/07 500 664 3.00%, 7/4/08 475 619 Government of France O.A.T., 4.75%, 10/25/12 500 687 Government of France Treasury Note BTAN, 2.50%, 7/12/10 413 520 Government of Ireland, 5.00%, 4/18/13 100 140 Government of Netherlands, 2.75%, 1/15/09 440 568
PRINCIPAL AMOUNT VALUE (000S)(1) (000S) ------------- ---------- DEBT OBLIGATIONS - 96.9% - CONTINUED EURO - 35.8% - (CONTINUED) Government of Spain, 3.25%, 7/30/10 188 $ 243 Portugal Obrigacoes do Tesouro OT, 5.15%, 6/15/11 300 414 ---------- 10,491 ---------- JAPANESE YEN - 18.9% Government of Japan Five Year Bonds, 1.10%, 3/20/11 80,000 672 Government of Japan Ten Year Bonds, 1.80%, 9/21/09 60,000 517 1.90%, 6/21/10 75,000 650 1.40%, 9/20/11 53,000 449 1.50%, 3/20/12 15,000 127 0.80%, 3/20/13 160,000 1,300 1.90%, 6/20/14 36,500 316 Government of Japan Twenty Year Bonds, 1.90%, 3/22/21 180,000 1,516 ---------- 5,547 ---------- SWEDISH KRONA - 0.9% Kingdom of Sweden, 9.00%, 4/20/09 1,600 260 ---------- UNITED STATES DOLLAR - 22.4% Freddie Mac, 5.13%, 7/15/12 750 755 U.S. Treasury Bonds, 8.75%, 5/15/17 600 794 6.38%, 8/15/27 750 892 4.50%, 2/15/36 165 157 U.S. Treasury Notes, 5.00%, 7/31/08 1,171 1,173 4.63%, 11/30/08 300 300 4.88%, 8/15/09 780 782 4.63%, 11/15/09 300 299 4.38%, 12/15/10 300 297 4.13%, 5/15/15 650 624 5.13%, 5/15/16 485 500 ---------- 6,573 ---------- TOTAL DEBT OBLIGATIONS (COST $26,352) 28,391 ----------
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 2.0% ING, Belgium, Brussels, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 602 $ 602 ---------- TOTAL SHORT-TERM INVESTMENT (COST $602) 602 ---------- TOTAL INVESTMENTS - 98.9% (COST $26,954) 28,993 ---------- Other Assets less Liabilities - 1.1% 313 ---------- NET ASSETS - 100.0% $ 29,306
(1) Principal amounts stated in local currencies. At December 31, 2006, the industry sectors for the Global Fixed Income Fund as a percentage of investments including cash were:
INDUSTRY SECTOR % --------------- ----- Other Governments 75.4% U.S. Government 19.9 AAA 2.6 Cash and Equivalents 2.1 ----- Total 100.0%
At December 31, 2006, Global Fixed Income Fund had outstanding forward foreign currency exchange contracts as follows:
AMOUNT IN AMOUNT CONTRACTS (LOCAL EXCHANGE (LOCAL UNREALIZED TO DELIVER CURRENCY) FOR CURRENCY) SETTLEMENT GAIN/(LOSS) CURRENCY (000S) CURRENCY (000S) DATE (000S) ---------- --------- ----------- --------- ---------- ----------- British Pound 703 U.S. Dollar 1,381 1/25/07 $ 4 Canadian Dollar 551 U.S. Dollar 478 1/25/07 5 Danish Krone 5,261 U.S. Dollar 935 1/25/07 3 U.S. Australian Dollar 114 Dollar 145 1/25/07 1 U.S. Dollar 940 Euro 709 1/25/07 (2) U.S. Japanese Dollar 3,179 Yen 369,800 1/25/07 (60) U.S. Swedish Dollar 94 Krona 640 1/25/07 -- ---- Total $(49)
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $26,954 ------- Gross tax appreciation of investments $ 2,413 Gross tax depreciation of investments (374) ------- Net tax appreciation of investments $ 2,039 =======
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD FIXED INCOME FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% ADVERTISING - 1.5% Advanstar Communications, Inc., 12.00%, 2/15/11 $ 9,055 $ 9,462 Donnelley (R.H.) Corp., 8.88%, 1/15/16 8,000 8,400 Donnelley (R.H.), Inc., 10.88%, 12/15/12 7,263 7,917 ---------- 25,779 ---------- AEROSPACE/DEFENSE - 1.0% L-3 Communications Corp., 6.38%, 10/15/15 7,965 7,886 Moog, Inc., 6.25%, 1/15/15 9,890 9,593 ---------- 17,479 ---------- APPAREL - 0.7% Levi Strauss & Co., 12.25%, 12/15/12 2,825 3,143 9.75%, 1/15/15 8,375 9,024 ---------- 12,167 ---------- AUTO MANUFACTURERS - 2.1% General Motors Corp., 7.13%, 7/15/13 39,275 37,017 ---------- AUTO PARTS & EQUIPMENT - 1.5% ArvinMeritor, Inc., 8.75%, 3/1/12 9,875 10,146 Goodyear Tire & Rubber (The) Co., 7.86%, 8/15/11 7,200 7,236 8.63%, 12/1/11 (1) 1,900 1,962 Lear Corp., (1) 8.50%, 12/1/13 6,675 6,475 ---------- 25,819 ---------- BEVERAGES - 0.7% Constellation Brands, Inc., 7.25%, 9/1/16 12,225 12,561 ---------- BUILDING MATERIALS - 0.9% Gibraltar Industries, Inc., 8.00%, 12/1/15 10,350 10,208 Ply Gem Industries, Inc., 9.00%, 2/15/12 6,750 5,737 ---------- 15,945 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED CABLE TELEVISION - 0.8% Mediacom Broadband LLC, 8.50%, 10/15/15 $ 13,975 $ 14,150 ---------- CHEMICALS - 2.8% BCP Crystal U.S. Holdings Corp., 9.63%, 6/15/14 2,780 3,072 Hexion US Finance Corp/Hexion Nova Scotia Finance ULC, (1) 9.75%, 11/15/14 10,350 10,492 Lyondell Chemical Co., 8.00%, 9/15/14 14,375 14,914 Mosaic (The) Co., (1) 7.38%, 12/1/14 7,100 7,286 NewMarket Corp., (1) 7.13%, 12/15/16 7,650 7,650 PolyOne Corp., 10.63%, 5/15/10 5,575 5,910 ---------- 49,324 ---------- COMMERCIAL SERVICES - 2.8% Corrections Corp. of America, 6.25%, 3/15/13 7,100 7,038 Education Management LLC/Education Management Corp., (1) 10.25%, 6/1/16 6,525 6,900 H&E Equipment Services, Inc., 8.38%, 7/15/16 5,675 5,945 Hertz Corp., (1) 8.88%, 1/1/14 10,500 10,999 NCO Group, Inc., (1) 11.88%, 11/15/14 5,700 5,771 Service Corp. International, 7.70%, 4/15/09 2,615 2,713 7.00%, 6/15/17 2,500 2,531 United Rentals North America, Inc., 6.50%, 2/15/12 6,575 6,493 ---------- 48,390 ---------- COMPUTERS - 0.8% Sungard Data Systems, Inc., 9.13%, 8/15/13 13,856 14,549 ---------- DIVERSIFIED FINANCIAL SERVICES - 5.9% American Real Estate Partners LP/American Real Estate Finance Corp., 7.13%, 2/15/13 11,010 11,065
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED DIVERSIFIED FINANCIAL SERVICES - 5.9% - (CONTINUED) Ford Motor Credit Co., 8.00%, 12/15/16 $ 9,400 $ 9,288 General Motors Acceptance Corp., 6.75%, 12/1/14 28,355 29,124 Momentive Performance Materials, Inc., (1) 9.75%, 12/1/14 5,650 5,650 11.50%, 12/1/16 1,900 1,862 Nelnet, Inc., 7.40%, 9/29/36 6,425 6,616 Residential Capital Corp., (1)(2) 7.20%, 4/17/09 10,000 10,054 TRAINS, (1) 7.55%, 5/1/16 28,416 28,998 ---------- 102,657 ---------- ELECTRIC - 6.7% AES (The) Corp., 9.50%, 6/1/09 16,290 17,430 Aquila, Inc., 14.88%, 7/1/12 6,925 9,037 CMS Energy Corp., 9.88%, 10/15/07 5,130 5,290 8.50%, 4/15/11 1,390 1,512 Edison Mission Energy, 7.73%, 6/15/09 10,285 10,645 7.50%, 6/15/13 11,425 11,939 Mirant North America LLC, 7.38%, 12/31/13 7,775 7,892 NRG Energy, Inc., 7.38%, 2/1/16 12,200 12,261 7.38%, 1/15/17 5,650 5,664 PSEG Energy Holdings LLC, 10.00%, 10/1/09 14,635 16,025 Sierra Pacific Power Co., 6.25%, 4/15/12 1,300 1,320 Sierra Pacific Resources, 8.63%, 3/15/14 4,270 4,585 TECO Energy, Inc., 6.75%, 5/1/15 4,925 5,147 TXU Corp., 6.50%, 11/15/24 8,325 7,843 ---------- 116,590 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED ELECTRICAL COMPONENTS & EQUIPMENT - 0.4% Superior Essex Communications LLC/Essex Group, Inc., 9.00%, 4/15/12 $ 6,175 $ 6,422 ---------- ENGINEERING & CONSTRUCTION - 0.2% Esco Corp., (1) 8.63%, 12/15/13 3,900 4,007 ---------- ENTERTAINMENT - 0.4% Warner Music Group, 7.38%, 4/15/14 6,685 6,618 ---------- ENVIRONMENTAL CONTROL - 0.7% Allied Waste North America, 9.25%, 9/1/12 11,084 11,777 ---------- FOOD - 1.8% Dole Food Co., Inc., 7.25%, 6/15/10 4,945 4,710 Pinnacle Foods Holding Corp., 8.25%, 12/1/13 4,700 4,811 Smithfield Foods, Inc., 7.00%, 8/1/11 5,275 5,328 Supervalu, Inc., 7.50%, 5/15/12 12,325 12,703 7.50%, 11/15/14 2,825 2,946 ---------- 30,498 ---------- FOREST PRODUCTS & PAPER - 2.7% Boise Cascade LLC, 7.13%, 10/15/14 5,710 5,524 Bowater, Inc., 9.00%, 8/1/09 7,235 7,579 Georgia-Pacific Corp., 8.13%, 5/15/11 16,615 17,446 Glatfelter, 7.13%, 5/1/16 6,175 6,206 Verso Paper Holdings LLC and Verson Paper, Inc., (1) 11.38%, 8/12/16 10,025 10,526 ---------- 47,281 ---------- GAMING - 5.6% Buffalo Thunder Development Authority, (1) 9.38%, 12/15/14 6,325 6,420
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD FIXED INCOME FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED GAMING - 5.6% - (CONTINUED) Chukchansi Economic Development Authority, (1)(2) 8.00%, 11/15/13 $ 7,425 $ 7,713 Harrah's Operating Co., Inc., 6.50%, 6/1/16 17,900 16,027 Isle of Capri Casinos, Inc., 7.00%, 3/1/14 9,275 9,229 MGM Mirage, 8.50%, 9/15/10 14,775 15,809 6.75%, 4/1/13 5,825 5,694 7.63%, 1/15/17 2,825 2,832 Pinnacle Entertainment, Inc., 8.25%, 3/15/12 6,050 6,111 River Rock Entertainment Authority, 9.75%, 11/1/11 11,141 11,809 Seneca Gaming Corp., 7.25%, 5/1/12 7,295 7,423 Wimar Opco LLC, (1) 9.63%, 12/15/14 8,500 8,415 ---------- 97,482 ---------- HEALTHCARE - PRODUCTS - 0.4% Accellent, Inc., 10.50%, 12/1/13 6,775 7,029 ---------- HEALTHCARE - SERVICES - 3.3% AMR HoldCo Inc./Emcare HoldCo Inc., 10.00%, 2/15/15 4,835 5,234 HCA, Inc., (1) 9.13%, 11/15/14 18,800 20,093 9.25%, 11/15/16 18,800 20,139 Tenet Healthcare Corp., 7.38%, 2/1/13 4,956 4,553 6.88%, 11/15/31 8,225 6,601 ---------- 56,620 ---------- HOME BUILDERS - 1.2% KB Home, 5.75%, 2/1/14 11,050 10,169 Technical Olympic USA, Inc., 8.25%, 4/1/11 (1) 6,725 6,557 7.50%, 1/15/15 5,130 4,001 ---------- 20,727 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED HOUSEHOLD PRODUCTS/WARES - 1.4% ACCO Brands Corp., 7.63%, 8/15/15 $ 8,190 $ 8,046 Gregg Appliances, Inc., 9.00%, 2/1/13 5,060 4,832 Spectrum Brands, Inc., 7.38%, 2/1/15 6,780 5,865 Visant Holding Corp., 8.75%, 12/1/13 4,625 4,764 ---------- 23,507 ---------- INSURANCE - 0.7% Crum & Forster Holdings Corp., 10.38%, 6/15/13 11,830 12,806 ---------- LEISURE TIME - 0.3% Leslie's Poolmart, 7.75%, 2/1/13 4,630 4,607 ---------- MACHINERY - DIVERSIFIED - 0.6% Case New Holland, Inc., 9.25%, 8/1/11 10,350 10,958 ---------- MEDIA - 6.7% American Media Operations, Inc., 10.25%, 5/1/09 12,262 11,879 CCH I Holdings LLC, 13.50%, 1/15/14 17,800 17,489 CCH I LLC, 11.00%, 10/1/15 18,968 19,466 Charter Communications Operating LLC/Charter Communications Operating Capital, (1) 8.00%, 4/30/12 9,750 10,128 CSC Holdings, Inc., 8.13%, 7/15/09 12,025 12,461 7.00%, 4/15/12 (1) 4,315 4,207 Dex Media East LLC, 12.13%, 11/15/12 4,850 5,341 Echostar DBS Corp., 7.00%, 10/1/13 7,650 7,640 Idearc, Inc., (1) 8.00%, 11/15/16 15,775 16,012 Liberty Media Corp., 8.25%, 2/1/30 3,635 3,563
FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED MEDIA - 6.7% - (CONTINUED) Young Broadcasting, Inc., 10.00%, 3/1/11 $ 7,975 $ 7,576 ---------- 115,762 ---------- MISCELLANEOUS MANUFACTURING - 0.6% Park-Ohio Industries, Inc., 8.38%, 11/15/14 11,585 10,803 ---------- OIL & GAS - 3.7% AmeriGas Partners LP/AmeriGas Eagle Finance Corp., 7.13%, 5/20/16 7,690 7,690 Denbury Resources. Inc., 7.50%, 12/15/15 5,175 5,279 Encore Acquisition Co., 7.25%, 12/1/17 6,400 6,192 Giant Industries, Inc., 11.00%, 5/15/12 4,705 5,046 8.00%, 5/15/14 1,000 1,081 Inergy LP/Inergy Finance Corp., 8.25%, 3/1/16 8,300 8,715 Pioneer Natural Resources Co., 6.88%, 5/1/18 5,000 4,834 Quicksilver Resources, Inc., 7.13%, 4/1/16 10,940 10,694 Stone Energy Corp., (1) 8.24%, 7/15/10 5,250 5,198 Whiting Petroleum Corp., 7.00%, 2/1/14 9,575 9,551 ---------- 64,280 ---------- OIL & GAS PRODUCERS - 2.4% Chesapeake Energy Corp., 7.50%, 6/15/14 7,700 7,999 6.88%, 1/15/16 15,225 15,358 Magnum Hunter Resources, Inc., 9.60%, 3/15/12 3,285 3,453 Swift Energy Co., 7.63%, 7/15/11 5,100 5,189 9.38%, 5/1/12 8,460 8,925 ---------- 40,924 ---------- OIL & GAS SERVICES - 0.6% Dresser-Rand Group, Inc., 7.38%, 11/1/14 9,927 10,001 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED PACKAGING & CONTAINERS - 2.6% Ball Corp., 6.63%, 3/15/18 $ 6,450 $ 6,418 Covalence Specialty Materials Corp., (1) 10.25%, 3/1/16 4,650 4,255 Crown Americas LLC/Crown Americas Capital Corp., 7.63%, 11/15/13 8,250 8,497 Jefferson Smurfit Corp. U.S., 7.50%, 6/1/13 10,525 9,893 Owens-Illinois, Inc., 8.10%, 5/15/07 4,685 4,697 Packaging Dynamics Finance Corp., (1)(2) 10.00%, 5/1/16 4,000 4,000 Solo Cup Co., 8.50%, 2/15/14 9,350 8,088 ---------- 45,848 ---------- PIPELINES - 3.0% El Paso Corp., 7.75%, 6/15/10 14,270 15,091 Pacific Energy Partners LP/Pacific Energy Finance Corp., 6.25%, 9/15/15 4,725 4,619 Southern Natural Gas Co., 7.35%, 2/15/31 16,025 17,640 Williams Cos., Inc., 8.13%, 3/15/12 14,125 15,290 ---------- 52,640 ---------- REAL ESTATE INVESTMENT TRUSTS - 1.7% Crescent Real Estate Equities LP, 7.50%, 9/15/07 4,665 4,683 Omega Healthcare Investors, Inc., 7.00%, 4/1/14 7,925 7,984 Saxon Capital, Inc., (1) (2) 12.00%, 5/1/14 4,850 6,930 Trustreet Properties, Inc., 7.50%, 4/1/15 9,715 10,492 ---------- 30,089 ---------- RETAIL - 1.7% Dave & Buster's, Inc., 11.25%, 3/15/14 6,175 6,268 Neiman-Marcus Group, Inc., 10.38%, 10/15/15 8,250 9,178
NORTHERN FUNDS QUARTERLY REPORT 4 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD FIXED INCOME FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED RETAIL - 1.7% - (CONTINUED) Petro Stopping Centers LP/Petro Financial Corp., 9.00%, 2/15/12 $ 6,180 $ 6,396 The Restaurant Co., 10.00%, 10/1/13 7,925 7,459 ---------- 29,301 ---------- SEMICONDUCTORS - 1.0% Freescale Semiconductor, Inc., (1) 8.88%, 12/15/14 17,000 16,936 ---------- SOFTWARE - 0.3% SS&C Technologies, Inc., 11.75%, 12/1/13 4,705 5,105 ---------- TELECOMMUNICATIONS - 6.5% American Cellular Corp., 10.00%, 8/1/11 13,000 13,747 Centennial Cellular Operating Co., 10.13%, 6/15/13 3,630 3,911 Centennial Communications Corp., 10.00%, 1/1/13 7,225 7,686 Cincinnati Bell, Inc., 8.38%, 1/15/14 10,750 11,046 Citizens Communications Co., 9.00%, 8/15/31 5,700 6,184 Hawaiian Telcom Communications, Inc., 12.50%, 5/1/15 3,725 3,902 PanAmSat Corp., 9.00%, 8/15/14 8,936 9,439 Qwest Capital Funding, Inc., 7.90%, 8/15/10 14,250 14,838 6.88%, 9/15/33 8,350 7,974 Qwest Corp., 7.88%, 9/1/11 8,125 8,653 Rural Cellular Corp., 9.75%, 1/15/10 10,310 10,594 West Corp., (1) 11.00%, 10/15/16 5,995 6,055 Windstream Corp., (1) 8.63%, 8/1/16 7,625 8,349 ---------- 112,378 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- CORPORATE BONDS - 80.9% - CONTINUED TEXTILES - 0.9% Collins & Aikman Floor Cover, 9.75%, 2/15/10 $ 6,575 $ 6,723 Invista, (1) (2) 9.25%, 5/1/12 8,590 9,213 ---------- 15,936 ---------- TOBACCO - 0.3% Reynolds American, Inc., 7.88%, 5/15/09 4,450 4,635 ---------- TRANSPORTATION - 1.0% Kansas City Southern Railway, 9.50%, 10/1/08 8,475 8,856 Overseas Shipholding Group, 8.25%, 3/15/13 7,465 7,848 ---------- 16,704 ---------- TOTAL CORPORATE BONDS (COST $1,372,845) 1,404,108 FOREIGN ISSUER BONDS - 10.2% AEROSPACE/DEFENSE - 0.6% Bombardier, Inc., (1) 6.75%, 5/1/12 10,850 10,633 ---------- BUILDING MATERIALS - 0.4% Ainsworth Lumber Co. Ltd., 6.75%, 3/15/14 9,645 7,330 ---------- CHEMICALS - 0.8% Nell AF SARL, (1)(2) 8.38%, 8/15/15 12,700 13,049 ---------- ELECTRONICS - 0.6% NXP BV/NXP Funding LLC, (1) 7.88%, 10/15/14 9,525 9,847 ---------- FOREST PRODUCTS & PAPER - 0.5% Abitibi-Consolidated, Inc., 7.75%, 6/15/11 6,300 5,654 8.85%, 8/1/30 4,300 3,526 ---------- 9,180 ---------- GAMING - 0.7% Galaxy Entertainment Finance Co. Ltd., (1)(2) 9.88%, 12/15/12 12,016 12,872 ----------
FIXED INCOME FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- FOREIGN ISSUER BONDS - 10.2% - CONTINUED LEISURE TIME - 0.5% NCL Corp., 10.63%, 7/15/14 $ 8,370 $ 8,370 ---------- MEDIA - 0.8% Kabel Deutschland GmbH, 10.63%, 7/1/14 8,815 9,774 Rogers Cable, Inc., 6.75%, 3/15/15 4,750 4,894 ---------- 14,668 ---------- OIL & GAS - 0.7% Compton Petroleum Finance Corp., 7.63%, 12/1/13 6,675 6,441 OPTI Canada, Inc., (1) 8.25%, 12/15/14 4,675 4,804 ---------- 11,245 ---------- RETAIL - 0.5% Jean Coutu Group, Inc., 7.63%, 8/1/12 8,315 8,752 ---------- SEMICONDUCTORS - 0.9% Avago Technologies Finance, (1) 10.13%, 12/1/13 9,150 9,768 MagnaChip Semiconductor S.A., 8.00%, 12/15/14 9,650 6,465 ---------- 16,233 ---------- TELECOMMUNICATIONS - 2.5% Intelsat Bermuda Ltd., (1) 9.25%, 6/15/16 8,650 9,299 Intelsat Ltd., 7.63%, 4/15/12 10,450 9,744 Intelsat Subsidiary Holding Co. Ltd., 8.25%, 1/15/13 4,110 4,172 Nortel Networks Ltd., (1) 10.75%, 7/15/16 11,400 12,469 Rogers Wireless Communications, Inc., 7.50%, 3/15/15 7,545 8,186 ---------- 43,870 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- FOREIGN ISSUER BONDS - 10.2% - CONTINUED TRANSPORTATION - 0.7% Kansas City Southern de Mexico S.A. de C.V., (1) 7.63%, 12/1/13 $ 6,650 $ 6,650 OMI Corp., 7.63%, 12/1/13 4,800 4,908 ---------- 11,558 ---------- TOTAL FOREIGN ISSUER BONDS (COST $177,777) 177,607
NUMBER VALUE OF SHARES (000S) --------- ---------- WARRANTS - 0.0% IPCS, Inc., Exp. 7/15/10, Strike $5.50 * 1,500 -- Leap Wireless International, Exp. 4/15/10, Strike $96.80 (1) * 2,500 -- Leap Wireless, International Exp. 4/15/10, Strike $96.80 (1) * 2,000 -- WRC Media, Inc., (1) * 4,059 -- ---------- TOTAL WARRANTS (COST $10) --
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ---------- SHORT-TERM INVESTMENT - 6.8% ING, Belgium, Brussels, Eurodollar Time Deposit, 5.28%, 1/3/07 $118,235 118,235 ---------- TOTAL SHORT-TERM INVESTMENT (COST $118,235) 118,235 ---------- TOTAL INVESTMENTS - 97.9% (COST $1,668,867) 1,699,950 Other Assets less Liabilities - 2.1% 36,626 ---------- NET ASSETS - 100.0% $1,736,576
(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of Northern Funds. NORTHERN FUNDS QUARTERLY REPORT 6 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD FIXED INCOME FUND (continued) (2) Restricted that security has been deemed illiquid. At December 31, 2006, the value of these restricted illiquid securities amounted to approximately $63,831,000 or 3.7% of net assets. Additional information on each restricted illiquid security is as follows:
ACQUISITION ACQUISITION COST SECURITY DATE (000S) -------- ---------------- ----------- Chukchansi Economic Development Authority, 8.00%, 11/15/13 12/2/05-8/22/06 $ 7,554 Galaxy Entertainment Finance Co. Ltd., 9.88%, 12/15/12 12/7/05-11/30/06 12,471 Invista, 9.25%, 5/1/12 4/23/04-12/15/06 9,004 Nell AF SARL, 8.38%, 8/15/15 8/4/05-11/30/06 12,719 Packaging Dynamics Finance Corp., 10.00%, 5/1/16 4/13/06-4/18/06 4,053 Residential Capital Corp., 7.20%, 4/17/09 9/29/06 10,047 Saxon Capital, Inc., 12.00%, 5/1/14 4/26/06 4,870
* Non-Income Producing Security At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $1,668,867 ---------- Gross tax appreciation of investments $ 43,696 Gross tax depreciation of investments (12,613) ---------- Net tax appreciation of investments $ 31,083 ----------
FIXED INCOME FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD MUNICIPAL FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% ALABAMA - 1.1% Butler Industrial Development Board Solid Waste Disposal Revenue Refunding Bonds (AMT), Georgia-Pacific Corp. Project, 5.75%, 9/1/28 $ 1,000 $ 1,023 Camden Industrial Development Board Revenue Refunding Bonds, Series A, Weyerhaeuser Company, 6.13%, 12/1/24 1,000 1,101 Montgomery Medical Clinic Board Health Facility Revenue Bonds, Jackson Hospital & Clinic, 5.25%, 3/1/36 1,000 1,040 ---------- 3,164 ---------- ARIZONA - 2.6% Arizona Health Facilities Authority Hospital System Revenue Bonds, John C. Lincoln Health Network, Prerefunded, 6.88%, 12/1/10 1,000 1,131 Arizona Health Facilities Authority Health Care Facilities Revenue Bonds, Beatitudes Campus Project, (1) 5.20%, 10/1/37 2,000 1,997 Coconino County PCR Bonds, Series A (AMT), Tucson Electric Power Co., 7.13%, 10/1/32 1,000 1,038 Navajo County IDA Revenue Bonds (AMT), Stone Container Corp. Project, 7.40%, 4/1/26 2,300 2,334 Peoria IDA Revenue Refunding Bonds, Series A, Sierra Winds Life, 6.25%, 8/15/20 500 519 Yavapai County IDA Hospital Facilities Revenue Bonds, Series A, Yavapai Regional Medical Center, 6.00%, 8/1/33 500 539 ---------- 7,558 ---------- ARKANSAS - 0.2% Little Rock Hotel & Restaurant Gross Receipts Refunding TRB, 7.38%, 8/1/15 500 585 ---------- CALIFORNIA - 8.5% California Educational Facilities Authority Revenue Bonds, Dominican University, 5.00%, 12/1/36 2,000 2,069
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED CALIFORNIA - 8.5% - (CONTINUED) California Health Facilities Financing Authority Revenue Refunding Bonds, Cedars-Sinai Medical Center, 5.00%, 11/15/34 $ 3,000 $ 3,108 California Pollution Control Financing Authority Solid Waste Disposal PCR Refunding Bonds, Series A (AMT), USA Waste Services, Inc., 5.10%, Mandatory Put 6/1/08 2,300 2,328 California State Department of Water Resources Power Supply Revenue Bonds, Series A, 5.50%, 5/1/09 500 521 6.00%, 5/1/14 500 558 California State Public Works Board Lease Revenue Bonds, Series C, Department of Corrections, 5.50%, 6/1/15 1,000 1,104 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed, 5.00%, 6/1/45 2,000 2,075 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A-5, Asset Backed, 7.88%, 6/1/42 500 611 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series B, Enhanced Asset Backed, Prerefunded, 5.50%, 6/1/13 1,000 1,101 Irvine Unified School District Financing Authority Special Tax Bonds, Series A, 5.13%, 9/1/36 2,000 2,042 Laguna Beach Unified School District G.O. Bonds, Election of 2001 (FSA Insured), 5.00%, 8/1/28 1,000 1,049 Modesto Special Tax Bonds, Community Facilities District No. 04-1-VLG2, 5.10%, 9/1/26 2,000 2,057 Northstar Community Services District No. 1 Special Tax Bonds, 5.55%, 9/1/36 1,400 1,447 5.00%, 9/1/37 3,000 2,978
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED CALIFORNIA - 8.5% - (CONTINUED) Tobacco Securitization Authority of Southern California TOB, Series A1, 5.00%, 6/1/37 $ 2,000 $ 2,040 ---------- 25,088 ---------- COLORADO - 1.8% Colorado Health Facilities Authority Revenue Bonds, Portercare Adventist Health Hospital, Prerefunded, 6.50%, 11/15/11 500 566 Copperleaf Metropolitan District No. 2 G.O. Limited Bonds, 5.85%, 12/1/26 1,000 1,017 5.95%, 12/1/36 1,000 1,017 Prairie Center Metropolitan District No. 3 Property Tax Supported Primary G.O. Limited Bonds, Series A, 5.40%, 12/15/31 2,700 2,690 ---------- 5,290 ---------- CONNECTICUT - 0.4% Connecticut State Development Authority PCR Refunding Bonds, Series B (AMT), Connecticut Light & Power, 5.95%, 9/1/28 1,000 1,049 ---------- DELAWARE - 0.4% Delaware State Health Facility Authority Revenue Refunding Bonds, Series A, Beebe Medical Center Project, 5.50%, 6/1/24 1,000 1,066 ---------- DISTRICT OF COLUMBIA - 0.1% District of Columbia Revenue Bonds, Methodist Home of the District of Columbia Issue, 6.00%, 1/1/20 400 408 ---------- FLORIDA - 12.5% Belmont Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B, 5.13%, 11/1/14 2,000 2,010 Broward County Airport Exempt Facility Revenue Bonds (AMT), Learjet, Inc. Project, 7.50%, 11/1/20 3,430 4,037
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED FLORIDA - 12.5% - (CONTINUED) Capital Projects Finance Authority Continuing Care Retirement Community Revenue Bonds, Series A, The Glenridge on Palmer Ranch Project, Prerefunded, 8.00%, 6/1/12 $ 750 $ 902 Capital Trust Agency Revenue Bonds (AMT), Fort Lauderdale Project, 5.75%, 1/1/32 525 552 Crossings at Fleming Island Community Development District Special Assessment Revenue Refunding Bonds, Series C, 7.05%, 5/1/15 400 426 Gateway Services Community Development District Special Assessment Bonds, Series B, Sun City Center - Fort Meyers Project, 5.50%, 5/1/10 430 434 Halifax Hospital Medical Center Refunding & Improvement Revenue Bonds, Series A, 5.38%, 6/1/46 2,000 2,103 Heritage Harbor South Community Development District Capital Improvement Special Assessment Bonds, Series B, 5.40%, 11/1/08 5 5 Highlands County Health Facilities Authority Revenue Bonds, Series A, Adventist Health System/Sunbelt, Prerefunded, 6.00%, 11/15/11 1,250 1,388 Hillsborough County IDA PCR Refunding Bonds (AMT), Tampa Electric Company, 4.25%, Mandatory Put 8/1/07 1,600 1,600 Islands at Doral III Community District Special Assessment Bonds, Series 2004-A, 5.90%, 5/1/35 990 1,029 Miami Beach Health Facilities Authority Revenue Refunding Bonds, Mount Sinai Medical Center, 6.75%, 11/15/29 1,000 1,125 Midtown Miami Community Development District Special Assessment Bonds, Series A, 6.25%, 5/1/37 1,000 1,088
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD MUNICIPAL FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED FLORIDA - 12.5% - (CONTINUED) Old Palm Community Development District Special Assessment Bonds, Series B, Palm Beach Gardens, 5.38%, 5/1/14 $ 1,085 $ 1,100 Orange County Health Facilities Authority Revenue Bonds, Orlando Regional Healthcare, 5.13%, 11/15/39 1,000 1,051 Palm Glades Community Development District Special Assessment Bonds, Series B, 4.85%, 5/1/11 2,000 2005 Poinciana Community Development District Special Assessment Bonds, Series A, 7.13%, 5/1/31 400 428 Polk County Transportation Improvement Revenue Bonds (FSA Insured), Prerefunded, 5.63%, 12/1/10 1,000 1,081 Reunion East Community Development District Special Assessment Bonds, 5.80%, 5/1/36 1,000 1,037 Reunion West Community Development District Special Assessment Bonds, 6.25%, 5/1/36 1,000 1,057 South Village Community Development District Capital Improvement Revenue Bonds, Series A, 5.70%, 5/1/35 985 1,015 Sterling Hill Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B, 5.50%, 11/1/10 430 434 Tern Bay Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B, 5.00%, 5/1/15 2,575 2,568 Verano Center Community Development District Special Assessment Bonds, Series B, District Number 1 Infrastructure Project, 5.00%, 11/1/12 2,000 2,008 Watergrass Community Development District Special Assessment Revenue Bonds, Series B, Watergrass Development, 4.88%, 11/1/10 1,965 1,960
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED FLORIDA - 12.5% - (CONTINUED) Westchester Community Development District No. 1 Special Assessment Bonds, Community Infrastructure, 6.00%, 5/1/23 $ 2,420 $ 2,574 Winter Garden Village at Fowler Groves Community Development District Special Assessment Bonds, 5.65%, 5/1/37 1,500 1,576 ---------- 36,593 ---------- GEORGIA - 3.1% Atlanta Tax Allocation Bonds, Princeton Lakes Project, 5.50%, 1/1/31 1,235 1,267 Chatham County Hospital Authority Revenue Bonds, Series A, Memorial Health University, Medical Center, Inc., 5.50%, 1/1/34 3,000 3,182 Georgia State G.O. Bonds, Series D, Prerefunded, 5.75%, 10/1/10 705 757 Milledgeville-Baldwin County Development Authority Revenue Bonds, Georgia College & State University Foundation, 6.00%, 9/1/33 3,500 3,837 ---------- 9,043 ---------- IDAHO - 1.1% Madison County Hospital Revenue COP, 5.25%, 9/1/26 1,500 1,610 5.25%, 9/1/30 1,500 1,603 ---------- 3,213 ---------- ILLINOIS - 6.6% Illinois Development Finance Authority Revenue Bonds, Series B, Midwestern University, 6.00%, 5/15/31 500 540 Illinois Educational Facilities Authority Student Housing Revenue Bonds, Educational Advancement Fund University Center Project, Prerefunded, 6.25%, 5/1/12 750 844 Illinois Finance Authority Revenue Bonds, Series A, Three Crowns Park Project, 5.88%, 2/15/38 1,500 1,570
FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED ILLINOIS - 6.6% - (CONTINUED) Illinois Finance Authority Revenue Bonds, Series A, Illinois Institute of Technology, 5.00%, 4/1/20 $ 3,000 $ 3,145 Illinois Finance Authority Revenue Bonds, Series A, Landing at Plymouth Place Project, 6.00%, 5/15/37 1,250 1,314 Illinois Finance Authority Revenue Bonds, Series A, Montgomery Place Project, 5.75%, 5/15/38 1,600 1,656 Illinois Finance Authority Revenue Bonds, Series A, Smith Village Project, 6.25%, 11/15/35 3,000 3,161 Illinois Finance Authority Student Housing Revenue Bonds, Series A, MJH Education Assistance IV, 5.13%, 6/1/35 2,000 2,045 Illinois Finance Authority Student Housing Revenue Refunding Bonds, Class B, Educational Advancement Fund, Inc., University Center, 5.00%, 5/1/30 3,445 3,538 Illinois Health Facilities Authority Revenue Bonds, Riverside Health System, Prerefunded, 6.00%, 11/15/12 1,000 1,118 Illinois Health Facilities Authority Revenue Bonds, Series A, Lutheran Senior Ministries Obligation, Prerefunded, 7.38%, 8/15/11 500 580 ---------- 19,511 ---------- INDIANA - 3.7% Delaware County Hospital Authority Revenue Bonds, Cardinal Health Systems Obligation Group, 5.13%, 8/1/29 3,000 3,099 Indiana Development Finance Authority Environmental Revenue Refunding Bonds, USX Corp. Project, 5.25%, Mandatory Put 12/2/11 1,000 1,069 Indiana Health & Educational Facilities Financing Authority Revenue Bonds, Series B-5, Ascension Health Senior Credit, 5.00%, 11/15/36 3,000 3,138
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED INDIANA - 3.7% - (CONTINUED) Indiana Health Facility Financing Authority Hospital Revenue Bonds, Series A, Community Foundation of Northwest Indiana, 6.38%, 8/1/31 $ 500 $ 535 6.00%, 3/1/34 1,000 1,074 North Manchester Revenue Bonds, Series A, Peabody Retirement Community Project, 7.25%, 7/1/33 750 778 Petersburg PCR Bonds (AMT), Indianapolis Power & Light, 6.38%, 11/1/29 1,000 1,086 ---------- 10,779 ---------- IOWA - 4.3% Bremer County Healthcare & Residential Facilities Revenue Bonds, Bartels Lutheran Home Project, Prerefunded, 7.25%, 11/15/29 500 552 Bremer County Retirement Facility Revenue Bonds, Series A, Bartels Lutheran Home Project, 5.13%, 11/15/20 400 408 5.38%, 11/15/27 750 767 Coralville COP, Series D, Coralville Marriott Hotel and Convention Center, 5.25%, 6/1/26 2,200 2,329 Iowa Higher Education Loan Authority Revenue Bonds, Series B, Wartburg Private College Facilities, 5.55%, 10/1/37 3,000 3,091 Iowa Higher Education Loan Authority Private College Revenue Refunding Bonds, Grand View College Project, 5.10%, 10/1/36 2,500 2,559 Washington County Hospital Revenue Bonds, Washington County Hospital Project, 5.38%, 7/1/26 1,525 1,569 5.50%, 7/1/32 1,275 1,314 ---------- 12,589 ---------- KANSAS - 0.5% Olathe Senior Living Facility Revenue Bonds, Series A, Aberdeen Village, Inc., Prerefunded, 8.00%, 5/15/10 500 575
NORTHERN FUNDS QUARTERLY REPORT 4 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD MUNICIPAL FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED KANSAS - 0.5% - (CONTINUED) Wyandotte County-Kansas City Unified Government Special Obligation Revenue Refunding Bonds, Series B, Sales Tax Second Lien, 5.00%, 12/1/20 $ 1,000 $ 1,039 ---------- 1,614 ---------- LOUISIANA - 1.0% Desoto Parish PCR Refunding Bonds, Series A, International Paper Co. Projects, 5.00%, 10/1/12 1,000 1,042 Plaquemines Port Harbor & Terminal District Revenue Refunding Bonds, Series B, Electro-Coal Tranfer Corp. Project, 5.00%, 9/1/07 2,000 2,004 ---------- 3,046 ---------- MAINE - 0.3% Maine Finance Authority Solid Waste Recycling Facilities Revenue Bonds, (AMT), Great Northern Paper Project, Bowater Inc., 7.75%, 10/1/22 1,000 1,004 ---------- MARYLAND - 3.1% Annapolis Special Obligation Revenue Bonds, Series A, Park Place Project, 5.35%, 7/1/34 1,000 1,028 Anne Arundel County Special Obligation Bonds, National Business Park Project, Prerefunded, 7.38%, 7/1/10 500 561 Maryland Industrial Development Financing Authority Revenue Bonds, Series A, Our Lady of Good Counsel School, 6.00%, 5/1/35 1,000 1,071 Maryland State Economic Development Corp. Student Housing Revenue Bonds, University of Maryland, College Park Project, Prerefunded, 5.63%, 6/1/13 1,000 1,105 Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, King Farm Presbyterian Community, (1) 5.30%, 1/1/37 1,000 989
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED MARYLAND - 3.1% - (CONTINUED) Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Mercy Ridge, 6.00%, 4/1/35 $ 1,000 $ 1,085 Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Washington Christian Academy, 5.50%, 7/1/38 1,170 1,177 Prince Georges County Special Obligation Bonds, National Harbor Project, 5.20%, 7/1/34 1,000 1,026 Westminster Educational Facilities Revenue Bonds, McDaniel College, Inc., 5.00%, 11/1/31 1,000 1,044 ---------- 9,086 ---------- MASSACHUSETTS - 2.4% Massachusetts State Development Finance Agency Revenue Bonds, Hampshire College, 5.70%, 10/1/34 1,000 1,070 Massachusetts State Development Finance Agency Revenue Bonds, Series B, Briarwood, Prerefunded, 8.25%, 12/1/10 500 585 Massachusetts State Development Finance Agency Revenue Bonds (AMT), Waste Management Project, 5.50%, Mandatory Put 5/1/14 1,000 1,068 Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series A, Northern Berkshire Health System, 6.38%, 7/1/34 1,000 1,053 Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series B, Northern Berkshire Health System, 6.38%, 7/1/34 500 526 Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series D, Milton Hospital, 5.25%, 7/1/30 2,150 2,212
FIXED INCOME FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED MASSACHUSETTS - 2.4% - (CONTINUED) Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series E, Berkshire Health System, 6.25%, 10/1/31 $ 500 $ 536 ---------- 7,050 ---------- MICHIGAN - 3.3% Flint Hospital Building Authority Revenue Refunding Bonds, Hurley Medical Center, 6.00%, 7/1/20 1,000 1,055 Michigan State Strategic Fund Limited Obligation Revenue Bonds (AMT), Republic Services Inc., 4.25%, Mandatory Put 4/1/14 1,985 1,967 Michigan State Strategic Fund Limited Obligation Revenue Refunding Bonds (AMT), Dow Chemical Project, 5.50%, Mandatory Put 6/1/13 3,825 4,128 Michigan Strategic Fund PCR Refunding Bonds, General Motors Corp., 6.20%, 9/1/20 2,500 2,559 ---------- 9,709 ---------- MINNESOTA - 0.3% Duluth Economic Development Authority Health Care Facilities Revenue Bonds, St. Luke's Hospital, 7.25%, 6/15/32 750 820 ---------- MISSISSIPPI - 1.7% Lowndes County Solid Waste Disposal & PCR Refunding Bonds, Series B, Weyerhaeuser Co. Project, 6.70%, 4/1/22 1,000 1,216 Mississippi Business Finance Corp. PCR Refunding Bonds, Systems Energy Resources, Inc. Project, 5.90%, 5/1/22 630 632 Mississippi Development Bank Special Obligation Revenue Bonds, Harrison County Highway Construction (FGIC Insured), 5.00%, 1/1/16 3,000 3,246 ---------- 5,094 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED NEW HAMPSHIRE - 0.2% New Hampshire Business Finance Authority PCR Refunding Bonds, Series D (AMT), Public Service Co. of New Hampshire, 6.00%, 5/1/21 $ 500 $ 522 ---------- NEW JERSEY - 2.0% Middlesex County Improvement Authority Revenue Bonds, Series A, George Street Student Housing Project, 5.00%, 8/15/35 1,000 1,022 New Jersey Economic Development Authority Revenue Bonds, Cigarette Tax, 5.75%, 6/15/34 1,000 1,069 New Jersey Economic Development Authority Revenue Bonds, Series A, First Mortgage-Lions Gate Project, 5.88%, 1/1/37 1,000 1,039 New Jersey Health Care Facilities Financing Authority Revenue Bonds, Series A, Capital Health Systems Obligation Group, 5.38%, 7/1/33 1,000 1,050 New Jersey State Educational Facilities Authority Revenue Bonds, Series D, Fairleigh Dickinson University, 6.00%, 7/1/25 1,000 1,092 New Jersey Tobacco Settlement Financing Corp. Revenue Bonds, 6.75%, 6/1/39 500 571 ---------- 5,843 ---------- NEW YORK - 5.3% Long Island Power Authority Electric Systems Revenue Bonds, Series B, 5.25%, 12/1/14 3,000 3,290 Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (FGIC Insured), 5.25%, 11/15/14 1,695 1,870 Monroe County Industrial Development Agency Civic Facilities Revenue Refunding Bonds, Highland Hospital Rochester, 5.00%, 8/1/22 1,000 1,039 New York City G.O. Bonds, Series B, 6.50%, 8/15/09 1,500 1,601
NORTHERN FUNDS QUARTERLY REPORT 6 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD MUNICIPAL FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED NEW YORK - 5.3% - (CONTINUED) New York City Industrial Development Agency Special Facilities Revenue Bonds (AMT), Terminal One Group Association Project, 5.50%, 1/1/24 $ 1,000 $ 1,082 New York City Transitional Finance Authority Revenue Refunding Bonds, Series A-1, Future Tax Secured, 5.00%, 11/1/14 2,000 2,168 New York Liberty Development Corp. Revenue Bonds, Series A, National Sports Museum Project, 6.50%, 2/15/19 2,500 2,649 New York State Mortgage Agency Revenue Bonds, Series 130 (AMT), Homeowner Mortgage, 4.80%, 10/1/37 1,740 1,757 ---------- 15,456 ---------- NORTH CAROLINA - 2.3% Gaston County Industrial Facilities & Pollution Control Financing Authority Revenue Bonds (AMT), Exempt Facilities-National Gypsum Co. Project, 5.75%, 8/1/35 1,500 1,596 North Carolina Eastern Municipal Power Agency Power System Revenue Bonds, Series D, 6.45%, 1/1/14 385 416 North Carolina Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series B, 6.13%, 1/1/09 500 521 5.70%, 1/1/17 1,500 1,584 North Carolina Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series F, 5.38%, 1/1/13 1,000 1,069 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue Bonds, Series A, 5.50%, 1/1/13 1,000 1,076 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue Bonds, Series B, 6.38%, 1/1/13 500 540 ---------- 6,802 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED OHIO - 1.1% Toledo-Lucas County Port Authority Revenue Refunding Bonds, CSX Transportation, Inc. Project, 6.45%, 12/15/21 $ 2,750 $ 3,346 ---------- OKLAHOMA - 0.9% Langston Economic Development Authority Student Housing Revenue Bonds, Series A, Langston Community Development Corp., Prerefunded, 7.75%, 8/1/10 500 576 Norman Regional Hospital Authority Revenue Bonds, 5.38%, 9/1/36 2,000 2,081 ---------- 2,657 ---------- PENNSYLVANIA - 6.8% Allegheny County Redevelopment Authority Tax Allocation Revenue Bonds, Pittsburgh Mills Project, 5.60%, 7/1/23 2,000 2,125 Bucks County IDA Retirement Community Revenue Bonds, Ann's Choice Inc., Facility, Series A 6.25%, 1/1/35 2,600 2,757 Carbon County IDA Resource Recovery Refunding Bonds (AMT), Panther Creek Partners Project, 6.65%, 5/1/10 1,675 1,740 Fulton County IDA Hospital Revenue Bonds, Fulton County Medical Center Project, 5.90%, 7/1/40 2,000 2,066 Montgomery County Higher Education & Health Authority Revenue Bonds, Series A, Philadelphia Geriatric Center, Prerefunded, 7.25%, 12/1/09 500 557 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A (AMT), Amtrak Project, 6.13%, 11/1/21 1,400 1,505 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A (AMT), National Gypsum Co., Shippingport Project, 6.25%, 11/1/27 1,400 1,479
FIXED INCOME FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED PENNSYLVANIA - 6.8% - (CONTINUED) Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A (AMT), Reliant Energy, 6.75%, 12/1/36 $ 1,750 $ 1,930 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, LaSalle University, 5.50%, 5/1/34 1,000 1,060 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, Philadelphia University, 5.25%, 6/1/32 1,250 1,305 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Widener University, 5.40%, 7/15/36 750 793 Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue Bonds, Series A, Student Association, Inc. Project, 6.75%, 9/1/32 490 532 Philadelphia School District G.O. Bonds, Series A (FSA - State Aid Withholding), Prerefunded, 5.50%, 2/1/12 1,000 1,085 Washington County Redevelopment Authority Revenue Bonds, Series A, Victory Centre Project - Tanger, Outlet Development, 5.45%, 7/1/35 1,000 1,023 ---------- 19,957 ---------- PUERTO RICO - 0.3% Puerto Rico Highway & Transportation Authority Transportation Revenue Bonds, 5.00%, 7/1/09 1,000 1,020 ---------- SOUTH CAROLINA - 0.8% Florence County IDR Bonds, Stone Container Corp., 7.38%, 2/1/07 165 165 Lancaster County Special Assessment Revenue Bonds, Series B, Edenmoor Improvement District, 5.38%, 12/1/16 2,000 2,055 ---------- 2,220 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED TENNESSEE - 1.7% Johnson City Health & Educational Facilities Board Revenue Bonds, Series A, First Mortgage-Mountain States Health, 5.50%, 7/1/36 $ 2,000 $ 2,148 Shelby County Health Educational & Housing Facilities Board Revenue Bonds, Series A, Trezevant Manor Project, 5.75%, 9/1/37 2,700 2,772 ---------- 4,920 ---------- TEXAS - 9.0% Austin City Convention Center Revenue Bonds, Series A, Convention Enterprise, Inc., First Tier, Prerefunded, 6.70%, 1/1/11 700 776 Brazos County Health Facilities Development Corp. Franciscan Services Corp. Revenue Bonds, 5.38%, 1/1/32 2,545 2,687 Brazos River Authority Refunding PCR Bonds, Series A (AMT), Texas Utilities Electric Co. Project, 7.70%, 4/1/33 1,000 1,170 Comal County Health Facilities Development Revenue Bonds, Series A, McKenna Memorial Project, 6.13%, 2/1/22 3,000 3,257 Corpus Christi G.O. Certificates (FSA Insured), Prerefunded, 5.75%, 3/1/11 1,000 1,081 Dallas County Flood Control District No. 1 G.O. Unlimited Refunding Bonds, 7.25%, 4/1/32 1,000 1,069 Gulf Coast Waste Disposal Authority Revenue Bonds (AMT), Valero Energy Corp. Project, 6.65%, 4/1/32 1,000 1,090 Gulf Coast Waste Disposal Authority Revenue Refunding Bonds, Series A (AMT), International Paper Co. Project, 6.10%, 8/1/24 3,000 3,254 HFDC of Central Texas, Inc. Retirement Facilities Revenue Bonds, Series A, Legacy at Willow Bend Project, 5.75%, 11/1/36 1,000 1,028
NORTHERN FUNDS QUARTERLY REPORT 8 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS HIGH YIELD MUNICIPAL FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED TEXAS - 9.0% - (CONTINUED) Houston Industrial Development Corp. Revenue Bonds (AMT), Air Cargo, 6.38%, 1/1/23 $ 500 $ 537 Houston Water & Sewer System Junior Lien Revenue Bonds, Series A (FSA Insured), Prerefunded, 5.50%, 12/1/11 1,535 1,659 Matagorda County Navigation District No 1 Collateralized Revenue Refunding Bonds, Centerpoint Energy Houston Electric, LLC Project, 5.60%, 3/1/27 500 530 Port Corpus Christi Industrial Development Corp. Environmental Facilities Revenue Bonds (AMT), Citgo Petroleum Corp., 8.25%, 11/1/31 1,000 1,031 Sabine River Authority Revenue Refunding Bonds, Series B, TXU Energy Co. LLC Project, 6.15%, 8/1/22 500 548 Sam Rayburn Municipal Power Agency Revenue Refunding Bonds, 6.00%, 10/1/21 500 531 Tarrant County Cultural Education Facilities Finance Corp. Retirement Facilities Revenue Bonds, Series A, Edgemere Project, 6.00%, 11/15/26 750 806 6.00%, 11/15/36 1,265 1,344 Texas State Turnpike Authority Central Texas Turnpike Systems Revenue Bonds, Series A, First Tier (AMBAC Insured), 5.50%, 8/15/39 1,000 1,073 Travis County Health Facilities Development Corp. Retirement Facility Revenue Bonds, Querencia Barton Creek Project, 5.65%, 11/15/35 2,750 2,860 ---------- 26,331 ---------- VIRGIN ISLANDS - 0.3% University of the Virgin Islands General Improvement Bonds, Series A (G.O. of University), 5.38%, 6/1/34 750 794 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 95.3% - CONTINUED VIRGINIA - 3.4% Amherst IDA Revenue Refunding Bonds, Educational Facilities - Sweet Briar, 5.00%, 9/1/26 $ 1,000 $ 1,035 Charles City & County IDA Solid Waste Disposal Facilities Revenue Bonds (AMT), Waste Management, Inc. Project, 6.25%, Mandatory Put 4/1/12 500 543 Chesapeake Hospital Authority Facilities Revenue Bonds, Chesapeake General Hospital, Series A, 5.25%, 7/1/18 1,500 1,611 Tobacco Settlement Financing Corp. Revenue Bonds, Asset Backed, 5.63%, 6/1/37 4,530 4,812 West Point IDA Solid Waste Disposal Revenue Bonds, Series A (AMT), Chesapeake Corp. Project, 6.38%, 3/1/19 2,000 2,001 ---------- 10,002 ---------- WISCONSIN - 2.2% Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series A, Beaver Dam Community Hospitals, 6.75%, 8/15/34 1,000 1,099 Wisconsin Health & Educational Facilities Authority Revenue Bonds, Vernon Memorial Healthcare Project, 5.10%, 3/1/25 1,000 1,021 Wisconsin Health & Educational Facilities Authority Revenue Refunding Bonds, Divine Savior Healthcare, 5.00%, 5/1/32 3,155 3,185 Wisconsin Health & Educational Facilities Authority Revenue Refunding Bonds, Vernon Memorial Healthcare Project, 5.25%, 3/1/35 1,000 1,027 ---------- 6,332 ---------- TOTAL MUNICIPAL BONDS (COST $269,426) 279,561 ----------
FIXED INCOME FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ------------- ---------- INVESTMENT COMPANY - 1.7% AIM Tax Exempt Cash Fund 4,933,980 $ 4,934 ---------- TOTAL INVESTMENT COMPANY (COST $4,934) 4,934 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 2.8% Clarksville Tennessee Public Building Authority Revenue VRDB, Pooled Financing - Tennessee Municipal Bond Fund (Bank of America LOC), 4.00%, 1/2/07 $ 965 965 4.00%, 1/2/07 400 400 Harris County Health Facilities Development Corp. Revenue VRDB, Class A, Methodist Hospital System, 3.99%, 1/2/07 3,900 3,900 Mississippi Medical Center Educational Building Corp. Revenue VRDB, Adult Hospital Project (AMBAC Insured), 3.91%, 1/4/07 750 750 Utah Transit Authority Sales Tax Revenue VRDB, Subseries B (Fortis Bank S.A./N.V. LOC), 3.88%, 1/2/07 2,200 2,200 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $8,215) 8,215 ---------- TOTAL INVESTMENTS - 99.8% (COST $282,575) 292,710 ---------- Other Assets less Liabilities - 0.2% 667 ---------- NET ASSETS - 100.0% $ 293,377
(1) When-Issued Security At December 31, 2006, the industry sectors for the High Yield Municipal Fund were:
INDUSTRY SECTOR % OF INVESTMENTS --------------- ---------------- Development 24.6% General 9.0 Medical 25.1 Pollution 8.3 All other sectors less than 5% 33.0 ----- Total 100.0%
At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $282,575 -------- Gross tax appreciation of investments $ 10,472 Gross tax depreciation of investments (337) -------- Net tax appreciation of investments $ 10,135 ========
With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent the stated date on the security, the next interest reset/ puttable date for floating and variable rate securities or the prerefunded date for these types of securities. Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are safely invested, usually in Treasury securities, that will mature at the first call date of the first bond issue. Those first bonds are said to be prerefunded after this operation has taken place. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FSA - Financial Security Assurance G.O. - General Obligation IDA - Industrial Development Authority IDR - Industrial Development Revenue LOC - Letter of Credit PCR - Pollution Control Revenue TOB - Tender Option Bond TRB - Tax Revenue Bonds VRDB - Variable Rate Demand Bonds NORTHERN FUNDS QUARTERLY REPORT 10 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% ALABAMA - 0.9% Jefferson County Limited Obligation Revenue Bonds, Series A, 5.25%, 1/1/14 $ 5,000 $ 5,426 ---------- ARIZONA - 1.3% Arizona School District COP TAN, 4.50%, 7/30/07 5,000 5,025 Arizona State Transportation Board Highway Revenue Refunding Bonds, Series A, 5.00%, 7/1/15 2,500 2,728 ---------- 7,753 ---------- CALIFORNIA - 13.1% Anaheim PFA Revenue Bonds, Electric System Distributing Facilities (MBIA Insured), 5.00%, 10/1/28 2,000 2,054 Bay Area Governments Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (FGIC Insured), 5.00%, 8/1/17 5,000 5,312 Bay Area Governments Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (XLCA Insured), 5.00%, 8/1/13 5,000 5,220 5.00%, 8/1/17 2,500 2,673 California Housing Finance Agency Revenue Bonds, Series M (AMT), Home Mortgage, (1) 4.55%, 8/1/21 2,500 2,518 California State Department of Water Resources Center Valley Project Revenue Bonds, Series J-2, 7.00%, 12/1/11 5,000 5,739 California State Department of Water Resources Power Supply Revenue Bonds, Series A (AMBAC Insured), 5.50%, 5/1/14 5,000 5,490 California State Economic Recovery G.O. Unlimited Bonds, Series A, 5.25%, 7/1/14 10,430 11,474 California State G.O. Bonds (AMBAC Insured) 5.00%, 10/1/18 235 239
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED CALIFORNIA - 13.1% - (CONTINUED) California State G.O. Bonds (AMBAC Insured), Prerefunded, 5.00%, 10/1/07 $ 2,620 $ 2,675 5.00%, 10/1/07 255 260 California State G.O. Unlimited Bonds, 5.75%, 5/1/30 185 198 California State G.O. Unlimited Bonds, Prerefunded, 5.75%, 5/1/10 390 420 California Statewide Communities Development Authority Revenue Bonds, Series A, East Campus Apartments LLC (ACA Insured), 5.25%, 8/1/14 2,395 2,519 California Statewide Communities Development Authority Revenue Refunding Bonds, Series B, Rady Childrens Hospital (MBIA Insured), 4.50%, 8/15/28 8,385 8,385 Colton Joint Unified School District G.O. Unlimited Bonds, Series A (FGIC Insured), 5.38%, 8/1/26 2,500 2,725 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed (AMBAC Insured), 5.00%, 6/1/21 3,000 3,143 Los Angeles Harbor Department Revenue Refunding Bonds, Series B (AMT) (AMBAC Insured), 5.50%, 8/1/19 3,225 3,431 Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A-1 (FGIC Insured), 5.50%, 7/1/18 5,000 5,756 Menlo Park G.O. Unlimited Bonds, 5.25%, 8/1/27 1,000 1,074 Moreland School District G.O. Unlimited Bonds, Series C, Election of 2002 (FGIC Insured), 0.00%, 8/1/29 3,500 1,101 Orange County Sanitation District COP (FGIC Insured), 5.25%, 2/1/28 5,000 5,335
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED CALIFORNIA - 13.1% - (CONTINUED) University of California Revenue Bonds, Multiple Purpose Projects, Series Q (FSA Insured), Prerefunded, 5.00%, 9/1/11 $ 1,000 $ 1,070 ---------- 78,811 ---------- COLORADO - 0.3% Metro Wastewater Reclamation District Gross Revenue Refunding Bonds, Sewer Project, 5.45%, 4/1/12 2,000 2,042 ---------- CONNECTICUT - 2.4% Connecticut HFA Mortgage Program Revenue Bonds, Series D, 4.65%, 11/15/27 3,335 3,394 Connecticut State G.O. Unlimited Refunding Bonds, Series E, 5.00%, 12/15/20 2,500 2,723 Connecticut State Special Obligation Rate Reduction Revenue Bonds, Series A, 5.00%, 6/30/09 1,000 1,034 University of Connecticut Revenue Refunding Bonds, Series A (FGIC Insured - G.O. of Authority), 5.00%, 2/15/18 6,745 7,336 ---------- 14,487 ---------- FLORIDA - 7.2% Broward County Airport System Revenue Bonds, Series L (AMBAC Insured), 5.00%, 10/1/13 1,805 1,930 Crossings at Fleming Island Community Development District Special Assessment Revenue Refunding Bonds, Series C, 7.05%, 5/1/15 300 320 Dade County G.O. Unlimited Refunding Bonds (MBIA Insured), 6.50%, 10/1/10 400 439 Florida State Department Environmental Protection Preservation Revenue Bonds, Series B, 5.25%, 7/1/16 2,380 2,570 Gainesville Utility Systems Revenue Bonds, Series A, 5.25%, 10/1/15 1,065 1,159 5.25%, 10/1/16 1,120 1,219
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED FLORIDA - 7.2% - (CONTINUED) Hillsborough County School District Sales TRB (AMBAC Insured), 5.00%, 10/1/13 $ 1,000 $ 1,074 Jacksonville Excise Taxes Revenue Refunding Bonds, Series C (MBIA Insured), 5.25%, 10/1/16 1,300 1,393 JEA St. Johns River Refunding Revenue Bonds, Series 17-2, 5.25%, 10/1/13 2,000 2,127 Lee County Transportation Revenue Bonds (AMBAC Insured), 5.50%, 10/1/14 900 968 Marco Island Utility System Revenue Bonds (MBIA Insured), 5.25%, 10/1/15 2,520 2,737 Miami-Dade County Aviation Revenue Refunding Bonds, Series D, Miami Intl Airport (AMT) (MBIA Insured), 5.25%, 10/1/18 1,645 1,752 Miami-Dade County Expressway Authority Toll System Revenue Bonds, Series B (FGIC Insured), 5.25%, 7/1/25 2,525 2,743 Miami-Dade County School Board COP, Series D (FGIC Insured), 5.00%, 8/1/16 6,500 6,899 Miami-Dade County School District G.O. Refunding Bonds (FSA Insured), 5.38%, 8/1/14 1,000 1,106 Osceola County Infrastructure Sales Surtax Revenue Bonds (AMBAC Insured), 5.38%, 10/1/21 1,000 1,079 Palm Beach County Criminal Justice Facilities Revenue Bonds (FGIC Insured), 5.75%, 6/1/13 1,550 1,728 Palm Beach County G.O. Unlimited Refunding Bonds, Series B, 6.50%, 7/1/10 250 273 Palm Coast Utility System Revenue Bonds (MBIA Insured), 5.25%, 10/1/21 1,000 1,081
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS INTERMEDIATE TAX-EXEMPT FUND (Continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED FLORIDA - 7.2% - (CONTINUED) Polk County Utility System Revenue Refunding Bonds, Series B (FGIC Insured), 5.00%, 10/1/14 $ 1,500 $ 1,624 Pompano Beach Water & Sewer Revenue Bonds (FGIC Insured), Prerefunded, 5.05%, 7/1/07 1,000 1,017 South Florida Water Management District Special Obligation Limited Acquisition Revenue Refunding Bonds (AMBAC Insured), 5.25%, 10/1/13 1,250 1,363 Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15 5,950 6,561 ---------- 43,162 ---------- GEORGIA - 2.1% Fulton County Facilities Corp. COP, Fulton County Public Purpose Project (AMBAC Insured), 5.50%, 11/1/18 6,500 6,943 Georgia Municipal Electric Authority Power Revenue Bonds, Series W, 6.40%, 1/1/07 1,570 1,570 Georgia Municipal Electric Authority Power Revenue Bonds, Series W, Escrowed to Maturity, Prerefunded, 6.40%, 1/1/07 220 220 6.40%, 1/1/07 210 210 Georgia State G.O. Unlimited Refunding Bonds, Series C, 5.50%, 7/1/16 2,500 2,796 Milledgeville-Baldwin County Development Authority Revenue Bonds, College & State University Funding, 5.50%, 9/1/24 1,000 1,071 ---------- 12,810 ---------- ILLINOIS - 3.7% Chicago O'Hare International Airport Revenue Bonds, Series A, Passenger Facilities Charge (AMBAC Insured), 5.60%, 1/1/09 5,000 5,057
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED ILLINOIS - 3.7% - (CONTINUED) Chicago Wastewater Transmission Second Lien Revenue Bonds (MBIA Insured), Prerefunded, 6.00%, 1/1/10 $ 1,000 $ 1,074 6.00%, 1/1/10 1,000 1,074 Cook County Capital Improvement G.O. Unlimited Bonds, Series C (AMBAC Insured), 5.00%, 11/15/25 2,500 2,630 Illinois Development Finance Authority Economic Development Revenue Bonds, Latin School of Chicago Project, Prerefunded, 5.60%, 8/1/08 500 514 Illinois Development Finance Authority Revenue Bonds, Series B, Midwestern University Project, 5.75%, 5/15/16 500 531 Illinois Educational Facilities Authority Adjustable Revenue Bonds, Field Museum of Natural History Project, 4.60%, Mandatory Put 11/1/15 4,250 4,348 Illinois Educational Facilities Authority Student Housing Revenue Bonds, Educational Advancement Fund University Center Project, Prerefunded, 6.00%, 5/1/12 750 841 Illinois Health Facilities Authority Revenue Bonds, Riverside Health System, 6.00%, 11/15/32 1,000 1,118 Metropolitan Pier & Exposition Authority Revenue Bonds, Series A, McCormick Place Expansion (MBIA Insured), 5.25%, 6/15/42 5,000 5,349 ---------- 22,536 ---------- IOWA - 1.3% Iowa Finance Authority Hospital Facility Revenue Bonds, Mercy Medical Center Project (FSA Insured), Prerefunded, 6.00%, 8/15/09 3,610 3,860 Polk County G.O. Unlimited Bonds, Series C, 4.00%, 6/1/19 3,910 3,848 ---------- 7,708 ----------
FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED KANSAS - 1.3% Wichita Hospital Improvement Facilities Revenue Refunding Bonds, Series III, 5.25%, 11/15/15 $ 1,385 $ 1,451 6.25%, 11/15/18 1,600 1,755 Wichita Water & Sewer Utility Revenue Bonds (FGIC Insured), 5.25%, 10/1/18 4,000 4,330 ---------- 7,536 ---------- MARYLAND - 0.5% Ocean City G.O. Unlimited Refunding Bonds (MBIA Insured), 5.00%, 3/1/07 2,815 2,822 ---------- MASSACHUSETTS - 2.8% Lawrence G.O. Limited Bonds (AMBAC Insured - State Aid Withholding), Prerefunded, 5.50%, 2/1/11 2,625 2,808 Massachusetts State G.O. Unlimited Bonds, Series B, Prerefunded, 6.00%, 6/1/10 6,000 6,448 Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series B, Partners Healthcare System, 5.25%, 7/1/12 3,450 3,596 Massachusetts State Housing Finance Agency Revenue Bonds, Series III (AMT), Single Family, 3.45%, 12/1/09 1,050 1,043 Massachusetts State Water Resources Authority Revenue Refunding Bonds, Series D (MBIA Insured G.O. of Authority), 5.00%, 8/1/24 3,200 3,283 ---------- 17,178 ---------- MICHIGAN - 0.6% Michigan State Building Authority Revenue Refunding Bonds, Series I, Facilities Project (FSA Insured), 5.25%, 10/15/12 1,000 1,080 Wayne Charter County Airport Revenue Bonds, Series B (MBIA Insured), 4.88%, 12/1/23 2,500 2,550 ---------- 3,630 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED MINNESOTA - 0.1% Minnesota State Housing Finance Agency SFM Revenue Bonds, Series A (MBIA Insured), 5.35%, 7/1/17 $ 535 $ 550 ---------- MISSOURI - 3.1% Metro Development Agency District Revenue Bonds, Series B, Metrolink Cross Country Project (FSA Insured), 5.25%, 10/1/17 2,620 2,839 Missouri State Board of Public Buildings Special Obligations Revenue Bonds, Series A, 5.00%, 10/15/19 5,000 5,338 Missouri State Health & Educational Facilities Authority Revenue Bonds, Series B, The Washington University, (1) 4.50%, 1/15/41 5,000 4,965 Missouri State Highways & Transit Commission State Road Revenue Refunding Bonds, Senior Lien, 5.00%, 2/1/17 5,000 5,494 ---------- 18,636 ---------- NEVADA - 0.8% Clark County Passenger Facilities Charge Revenue Refunding Bonds, Las Vegas McCarran International Airport (MBIA Insured), (1) 4.75%, 7/1/22 5,000 5,094 ---------- NEW JERSEY - 2.5% New Jersey Economic Development Authority Revenue Bonds, Cigarette Tax, 5.63%, 6/15/19 3,985 4,182 New Jersey Health Care Facilities Financing Authority Revenue Refunding Bonds, Atlantic City Medical Center, 6.25%, 7/1/17 1,000 1,113 New Jersey State TRAN, 4.50%, 6/22/07 10,000 10,043 ---------- 15,338 ---------- NEW MEXICO - 0.9% Santa Fe City Gross Receipts TRB, 6.00%, 6/1/11 5,250 5,416 ----------
NORTHERN FUNDS QUARTERLY REPORT 4 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED NEW YORK - 13.5% Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (FGIC Insured), Prerefunded, 6.13%, 4/1/10 $ 3,815 $ 4,106 New York City G.O. Bonds, Series A, 6.00%, 5/15/19 30 32 New York City G.O. Bonds, Series A, Prerefunded, 6.00%, 5/15/10 305 331 New York City G.O. Unlimited Bonds, Series H, TCRS-BNY (AMBAC Insured), 5.00%, 8/1/19 5,000 5,351 New York City G.O. Unlimited Refunding Bonds, Series B, 5.75%, 8/1/14 5,000 5,469 New York City Transitional Finance Authority Revenue Bonds, Series C, Future Tax Secured, 5.25%, 2/1/16 7,000 7,662 New York G.O. Unlimited Bonds, Series C, (1) 5.00%, 1/1/21 5,000 5,341 New York Municipal Bond Bank Agency Revenue Bonds, Series C (State-Aid Withholding), 5.25%, 6/1/17 10,000 10,738 New York State Environmental Facilities Corp. Revenue Bonds, Series A, State Clean Water & Drinking Revolving Funds, 6.00%, 6/15/16 1,330 1,402 New York State Environmental Facilities Corp. Revenue Bonds, Series A, State Clean Water & Drinking Revolving Funds, Prerefunded, 6.00%, 6/15/09 170 180 New York State Thruway Authority Revenue Bonds, Series A, Highway and Bridge Trust Fund (FSA Insured), Prerefunded, 6.00%, 4/1/10 1,000 1,082 New York State Urban Development Corp. Subordinate Lien Revenue Bonds (G.O. of Corp.), 5.50%, 7/1/16 1,250 1,276
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED NEW YORK - 13.5% - (CONTINUED) Sales Tax Asset Receivables Corp. Revenue Bonds, Series A (MBIA Insured), 5.25%, 10/15/19 $ 5,100 $ 5,598 Tobacco Settlement Financing Authority Revenue Bonds, Series B-1C, 5.50%, 6/1/18 5,000 5,398 5.50%, 6/1/20 5,000 5,444 Tobacco Settlement Financing Corp. Revenue Bonds, Series C-1, 5.25%, 6/1/13 5,000 5,107 5.50%, 6/1/15 5,000 5,282 5.50%, 6/1/19 5,000 5,450 Triborough Bridge & Tunnel Authority Revenue Bonds, Series Y, General Purpose (G.O. of Authority), Escrowed to Maturity, 6.00%, 1/1/12 6,000 6,470 ---------- 81,719 ---------- NORTH CAROLINA - 0.8% North Carolina Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series A, 5.20%, 1/1/10 2,505 2,598 North Carolina State Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 3/1/07 2,000 2,005 ---------- 4,603 ---------- OHIO - 1.4% Akron G.O. Limited Bonds, Prerefunded, 5.75%, 12/1/10 1,000 1,084 Ohio Housing Finance Agency Mortgage Revenue Bonds, Series C (AMT), Residential Mortgage-Backed Securities (Colld. by GNMA Securities), 5.15%, 3/1/13 715 736 Ohio State Air Quality Development Authority Revenue Bonds (AMT), Dayton Power & Light Co. Project (FGIC Insured), 4.80%, 9/1/36 5,000 5,076
FIXED INCOME FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED OHIO - 1.4% - (CONTINUED) River Valley Local School District G.O. Bonds, School Facilities Construction & Improvement (FSA Insured), 5.25%, 11/1/20 $ 1,235 $ 1,312 ---------- 8,208 ---------- OREGON - 0.6% Portland City Airport Way Urban Renewal & Redevelopment Tax Increment Bonds, Series A (AMBAC Insured), Prerefunded, 6.00%, 6/15/10 3,450 3,742 ---------- PENNSYLVANIA - 6.7% Beaver County IDA PCR Refunding Bonds, Class D, Duquesne Convention (AMBAC Insured), (1) 4.50%, 11/1/29 2,500 2,493 Council Rock School District G.O. Unlimited Bonds, Series A (FSA State Aid Withholding Insured), 4.50%, 2/15/23 3,925 3,987 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A (AMT), Amtrak Project, 6.13%, 11/1/21 1,200 1,290 Pennsylvania Housing Finance Agency SFM Revenue Bonds, Series 72A (AMT), 4.80%, 4/1/12 750 768 Pennsylvania State G.O. Unlimited Bonds, First Series, 4.00%, 9/1/20 5,000 4,907 Pennsylvania State G.O. Unlimited Bonds, First Series, Prerefunded, 6.00%, 1/15/10 2,705 2,911 Pennsylvania State G.O. Unlimited Bonds, Second Series (FGIC Insured), 5.00%, 7/1/09 5,000 5,169 Pennsylvania State G.O. Unlimited Bonds, Second Series (MBIA Insured), 5.00%, 7/1/10 5,000 5,227 Pennsylvania State G.O. Unlimited Bonds, Second Series, 5.00%, 9/15/13 2,000 2,128
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED PENNSYLVANIA - 6.7% - (CONTINUED) Pennsylvania State Higher Education Revenue Bonds, Capital Acquisition (MBIA Insured - G.O. of Agency), Prerefunded, 6.00%, 12/15/10 $ 1,815 $ 1,970 6.13%, 12/15/10 1,925 2,098 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, UPMC Health System, 6.00%, 1/15/22 2,000 2,177 Pennsylvania State Turnpike Commission Oil Franchise Refunding TRB, Series A (AMBAC Insured), 5.00%, 12/1/19 5,075 5,513 ---------- 40,638 ---------- PUERTO RICO - 2.0% Puerto Rico Commonwealth Highway & Transportation Authority Transportation Revenue Bonds, Series D, Prerefunded, 5.25%, 7/1/12 10,000 10,817 Puerto Rico Municipal Financing Agency G.O. Unlimited Bonds, Series A (FSA Insured), Prerefunded, 6.00%, 8/1/09 1,000 1,071 ---------- 11,888 ---------- SOUTH CAROLINA - 1.5% Charleston Educational Excellence Finance Corp. County School District Revenue Bonds, 5.25%, 12/1/19 3,500 3,790 South Carolina State School Facilities G.O. Unlimited Bonds, Series A (State Aid Withholding Insured), 5.75%, 1/1/07 4,960 4,961 ---------- 8,751 ---------- TENNESSEE - 1.9% Memphis General Improvement G.O. Unlimited Bonds, Prerefunded, 5.25%, 4/1/08 5,000 5,151 Memphis-Shelby County Airport Authority Revenue Bonds, Series D (AMT) (AMBAC Insured), 6.25%, 3/1/15 2,000 2,158
NORTHERN FUNDS QUARTERLY REPORT 6 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED TENNESSEE - 1.9% - (CONTINUED) Tennessee Energy Acquisition Corp. Gas Revenue Bonds, Series C, 5.00%, 2/1/18 $ 4,000 $ 4,322 ---------- 11,631 ---------- TEXAS - 12.8% Alamo Community College District G.O. Bonds, 4.50%, 4/1/07 5,500 5,512 Austin City Utilities System Revenue Refunding Bonds (FSA Insured), 5.13%, 11/15/17 3,000 3,034 Dallas Civic Center Revenue Refunding & Improvement Bonds (MBIA Insured), 4.88%, 8/15/23 2,500 2,555 Ennis Independent School District Capital Appreciation G.O. Refunding Bonds (PSF Gtd.), Prerefunded, 0.00%, 8/15/10 2,225 687 Ennis Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds (PSF Gtd.), 0.00%, 8/15/26 1,140 344 Frisco Independent School District Building G.O. Unlimited Bonds (PSF Gtd.), 6.50%, 8/15/14 1,535 1,748 Harris County Health Facilities Development Corp. Revenue Bonds, Series A, Christus Health (MBIA Insured), 5.25%, 7/1/07 435 438 Harris County Health Facilities Development Corp. Revenue Bonds, Series A, Christus Health (MBIA Insured), Escrowed to Maturity, 5.25%, 7/1/07 65 66 Houston Water & Sewer System Revenue Refunding Bonds, Series D, Junior Lien (FGIC Insured), Prerefunded, 5.00%, 12/1/07 3,500 3,612 Lewisville Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.25%, 8/15/18 5,000 5,509
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED TEXAS - 12.8% - (CONTINUED) Panhandle Regional Housing Finance Agency Revenue Bonds, Series A (GNMA Insured), 6.50%, 7/20/21 $ 500 $ 550 Sam Rayburn Municipal Power Agency Revenue Refunding Bonds, 6.00%, 10/1/16 1,000 1,061 6.00%, 10/1/21 1,250 1,328 San Antonio Electric & Gas Revenue Refunding Bonds, Series A, 5.25%, 2/1/16 10,000 10,383 San Antonio Electricity & Gas Revenue Bonds, Series A, Prerefunded, 5.25%, 2/1/09 875 912 Texas Municipal Power Agency Revenue Refunding Bonds (AMBAC Insured), 4.00%, 9/1/12 2,000 2,003 Texas Municipal Power Agency Revenue Refunding Bonds, Sub Lien (FGIC Insured), 4.40%, 9/1/11 5,000 5,021 Texas State TRAN, 4.50%, 8/31/07 15,000 15,091 Texas State Transportation Commission Revenue Bonds, First Tier, 4.50%, 4/1/07 10,000 10,021 Texas University Revenue Bonds, Series E, Financing System, (1) 5.00%, 8/15/18 3,200 3,476 5.00%, 8/15/19 3,560 3,855 ---------- 77,206 ---------- VIRGIN ISLANDS - 0.1% Virgin Islands PFA Revenue Bonds, Series A, Gross Receipts Tax Lien Note, 5.63%, 10/1/10 700 718 ---------- VIRGINIA - 2.8% Virginia Housing Development Authority Commonwealth Mortgage Revenue Bonds (AMT), Series C, 4.50%, 7/1/15 3,000 3,037 Virginia Housing Development Authority Commonwealth Mortgage Revenue Bonds, Subseries J-1 (MBIA Insured - G.O. of Authority), 4.75%, 1/1/12 2,200 2,277
FIXED INCOME FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.2% - CONTINUED VIRGINIA - 2.8% - (CONTINUED) Virginia State G.O. Unlimited Refunding Bonds, Series B, 5.00%, 6/1/16 $ 6,180 $ 6,714 Virginia State Housing Development Authority Revenue Bonds, Subseries E-1 (AMT) (G.O. of Authority Insured), 4.00%, 4/10/10 5,100 5,143 ---------- 17,171 ---------- WASHINGTON - 1.8% Washington State G.O. Unlimited Bonds, Series S-4, 5.75%, 1/1/12 10,000 10,561 ---------- WISCONSIN - 0.4% Madison Metropolitan School District TRAN, 4.00%, 9/7/07 2,500 2,507 ---------- TOTAL MUNICIPAL BONDS (COST $542,644) 550,278 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- INVESTMENT COMPANIES - 2.9% AIM Tax Exempt Cash Fund 16,444,815 16,445 Dreyfus Tax-Exempt Cash Management Fund 1,321,732 1,322 ---------- TOTAL INVESTMENT COMPANIES (COST $17,767) 17,767 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 9.8% Brevard County Health Facilities Authority Refunding VRDB, Health Care First Inc. Project (Suntrust Bank LOC), 3.99%, 1/2/07 $ 250 250 Clarksville Public Building Authority Adjustable Revenue VRDB, Pooled Financing - Tennesse Municipal Bond Fund (Bank of America N.A. LOC), 4.00%, 1/2/07 1,100 1,100
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 9.8% - CONTINUED Collier County Health Facilities Authority Revenue VRDB, Cleveland Health Clinic, Series C-1 (JP Morgan Chase Bank LOC), 3.98%, 1/2/07 $ 1,600 $ 1,600 Harris County Health Facilities Development Corp. Revenue VRDB, Class A, Methodist Hospital System, 3.99%, 1/2/07 2,700 2,700 Highlands County Health Facilities Authority Revenue VRDB, Series A, Adventist/Sunbelt (Suntrust Bank LOC), 3.91%, 1/4/07 1,250 1,250 Indiana Health & Educational Facilities Finance Authority Hospital Revenue VRDB, Series A, Howard Regional Health System Project (Comerica Bank LOC), 4.05%, 1/2/07 7,200 7,200 Iowa Higher Education Loan Authority Revenue VRDB, Private College - Des Moines (Allied Irish Bank PLC LOC), 4.05%, 1/2/07 7,700 7,700 Jacksonville Health Facilities Authority Hospital Revenue VRDB, Baptist Medical Center Project (Wachovia Bank N.A. LOC), 3.95%, 1/2/07 600 600 Lee County Housing Finance Authority Multifamily Housing Revenue Refunding VRDB, Series A, Forestwood Apartments Project (FNMA Insured), 3.96%, 1/3/07 300 300 Massachusetts State Health & Educational Facilities Authority Revenue VRDB, Series GG-1, Harvard University, 3.90%, 1/4/07 5,000 5,000 Michigan State Hospital Finance Authority Revenue Refunding VRDB, Series A, Crittenton Hospital (Comerica Bank LOC), 4.00%, 1/2/07 600 600 Mississippi Medical Center Educational Building Corp. Revenue VRDB, Adult Hospital Project (AMBAC Insured), 3.91%, 1/4/07 650 650
NORTHERN FUNDS QUARTERLY REPORT 8 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 9.8% - CONTINUED Missouri Development Finance Board Cultural Facilities Revenue VRDB, Series B, Nelson Gallery Foundation (MBIA Insured), 3.98%, 1/2/07 $ 900 $ 900 Montgomery County Public Building Authority Pooled Financing Revenue VRDB, Tennessee County Loan Pool (Bank of America N.A. LOC), 4.00%, 1/2/07 9,900 9,900 Multnomah County Hospital Facilities Authority Revenue Refunding VRDB, Holladay Park Paza Project (Allied Irish Bank PLC LOC), 4.00%, 1/2/07 6,500 6,500 Ohio State Air Quality Development Authority Revenue Refunding VRDB, Series A, Polution Control - Firstenergy (Barclays Bank PLC LOC), 3.95%, 1/3/07 10,000 10,000 Sunshine State Governmental Financing Commission Revenue VRDB (AMBAC Insured), 3.97%, 1/2/07 1,100 1,100 Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Series C, Froedtert & Community Health (AMBAC Insured), 3.91%, 1/4/07 2,100 2,100 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $59,450) 59,450 ---------- TOTAL INVESTMENTS - 103.9% (COST $619,861) 627,495 ---------- Liabilities less Other Assets - (3.9)% (23,803) ---------- NET ASSETS - 100.0% $ 603,692
(1) When-Issued Security At December 31, 2006, the industry sectors for the Intermediate Tax-Exempt Fund were:
INDUSTRY SECTOR % OF INVESTMENTS --------------- ---------------- Development 6.0% Education 5.1 Facilities 5.4 General 7.4 General Obligation 19.5 Higher Education 7.4 Medical 7.6 Transportation 8.5 Utilities 8.2 All other sectors less than 5% 24.9 ----- Total 100.0%
At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $619,861 -------- Gross tax appreciation of investments $ 8,783 Gross tax depreciation of investments (1,149) -------- Net tax appreciation of investments $ 7,634 ========
With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent the stated date on the security, the next interest reset/ puttable date for floating and variable rate securities or the prerefunded date for these types of securities. Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are safely invested, usually in Treasury securities, that will mature at the first call date of the first bond issue. Those first bonds are said to be prerefunded after this operation has taken place. FIXED INCOME FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED) EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: ACA - American Capital Access AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax Colld. - Collateralized COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FNMA - Federal National Mortgage Association FSA - Financial Security Assurance GNMA - Government National Mortgage Association G.O. - General Obligation Gtd. - Guaranteed HFA - Housing Finance Authority IDA - Industrial Development Authority LOC - Letter of Credit MBIA - Municipal Bond Insurance Association PCR - Pollution Control Revenue PFA - Public Finance Authority PSF - Permanent School Fund SFM - Single Family Mortgage TCRS - Transferable Custodial Receipts TAN - Tax Anticipation Notes TRAN - Tax Revenue Anticipation Notes TRB - Tax Revenue Bonds VRDB - Variable Rate Demand Bonds XLCA - XL Capital Assurance NORTHERN FUNDS QUARTERLY REPORT 10 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS SHORT-INTERMEDIATE U.S. GOVERNMENT FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- U.S. GOVERNMENT AGENCIES - 64.8% (1) FANNIE MAE - 29.6% 5.63%, 5/19/11 $ 8,570 $ 8,657 5.63%, 5/19/11 3,885 3,896 Pool #555649, 7.50%, 10/1/32 253 264 Pool #725787, 5.00%, 9/1/19 5,305 5,221 Pool TBA, (2) 6.00%, 1/1/17 7,633 7,738 6.00%, 1/1/32 6,720 6,764 5.00%, 1/1/35 6,720 6,487 ---------- 39,027 ---------- FEDERAL HOME LOAN BANK - 10.7% 4.25%, 4/16/07 3,797 3,787 5.00%, 10/16/09 6,510 6,483 5.50%, 10/19/16 3,910 3,894 ---------- 14,164 ---------- FREDDIE MAC - 8.0% 5.25%, 10/6/11 8,175 8,141 Pool #410092, 6.91%, 11/1/24 31 32 Series 2944, Class WD, 5.50%, 11/15/28 2,365 2,362 ---------- 10,535 ---------- FREDDIE MAC GOLD - 9.1% Pool #E91020, 5.50%, 8/1/17 2,112 2,115 Pool TBA, (2) 5.50%, 1/1/32 10,000 9,888 ---------- 12,003 ---------- SMALL BUSINESS ADMINISTRATION - 7.4% Participation Certificates, Series 2005-20L, Class 1, 5.39%, 12/1/25 1,508 1,518 Participation Certificates, Series 2006-20B, Class 1, 5.35%, 2/1/26 1,377 1,383 Participation Certificates, Series 2006-20D, Class 1, 5.64%, 4/1/26 2,034 2,078 Participation Certificates, Series 2006-20K, Class 1, 5.36%, 11/1/26 2,743 2,754
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- U.S. GOVERNMENT AGENCIES - 64.8% (1) - CONTINUED SMALL BUSINESS ADMINISTRATION - 7.4% -(CONTINUED) Series 2005-P10B, Class 1, 4.94%, 8/10/15 $ 2,006 $ 1,983 ---------- 9,716 ---------- TOTAL U.S. GOVERNMENT AGENCIES (COST $85,935) 85,445 ---------- U.S. GOVERNMENT OBLIGATIONS - 8.4% U.S. TREASURY NOTES - 8.4% 4.63%, 11/15/09 3,590 3,579 4.50%, 11/30/11 7,495 7,428 ---------- 11,007 ---------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $11,087) 11,007 ---------- SHORT-TERM INVESTMENT - 50.6% FHLB Discount Note, 4.87%, 1/3/07 66,799 66,781 ---------- TOTAL SHORT-TERM INVESTMENT (COST $66,781) 66,781 ---------- TOTAL INVESTMENTS - 123.8% (COST $163,803) 163,233 ---------- Liabilities less Other Assets - (23.8)% (31,339) ---------- NET ASSETS - 100.0% $ 131,894
(1) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. (2) When-Issued Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $163,803 -------- Gross tax appreciation of investments $ 89 Gross tax depreciation of investments (659) -------- Net tax depreciation of investments $ (570) ========
EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: FHLB - FEDERAL HOME LOAN BANK FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS TAX-EXEMPT FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% ARIZONA - 3.2% Arizona School District COP TAN, 4.50%, 7/30/07 $ 3,500 $ 3,517 Arizona State Transportation Board Highway Revenue Refunding Bonds, Series A, 5.00%, 7/1/15 2,500 2,728 Arizona Student Loan Acquisition Authority Revenue Refunding Bonds, Series A-1 (AMT) (Student Loans Gtd.), 5.90%, 5/1/24 1,000 1,065 Arizona Tourism & Sports Authority Revenue Bonds, Series A, Multipurpose Stadium Facility (MBIA Insured), 5.00%, 7/1/31 2,250 2,354 Maricopa County Unified School District No. 41 Gilbert G.O. Unlimited Bonds, 6.25%, 7/1/15 235 243 Maricopa County Unified School District No. 41 Gilbert G.O. Unlimited Bonds, Prerefunded, 6.25%, 7/1/08 2,765 2,873 Phoenix Civic Improvement Corp. District Capital Appreciation Revenue Bonds, Series B (FGIC Insured), 0.00%, 7/1/20 2,045 1,697 Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (MBIA Insured), 4.75%, 7/1/22 3,000 3,134 ---------- 17,611 ---------- CALIFORNIA - 16.7% Anaheim PFA Revenue Bonds, Electric System Distributing Facilities (MBIA Insured), 5.00%, 10/1/28 2,345 2,408 Bay Area Governments Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (FGIC Insured), 5.00%, 8/1/17 5,000 5,312 Bay Area Governments Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (XLCA Insured), 5.00%, 8/1/13 5,000 5,220 5.00%, 8/1/17 2,500 2,673
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED CALIFORNIA - 16.7% - (CONTINUED) California Housing Finance Agency Revenue Bonds, Series E, Home Mortgage (FGIC Insured), 5.00%, 2/1/24 $ 3,245 $ 3,358 California Housing Finance Agency Revenue Bonds, Series M (AMT), Home Mortgage, (1) 4.55%, 8/1/21 2,500 2,518 California State Department of Water Resources Power Supply Revenue Bonds, Series A, Prerefunded, 6.00%, 5/1/10 12,000 13,403 California State Economic Recovery G.O. Unlimited Bonds, Series A, 5.25%, 7/1/14 5,000 5,500 California State Unlimited G.O. Bonds, 5.75%, 5/1/30 180 192 California State Unlimited G.O. Bonds, Prerefunded, 5.75%, 5/1/30 400 431 California Statewide Communities Development Authority Revenue Refunding Bonds, Series B, Rady Childrens Hospital (MBIA Insured), 4.50%, 8/15/28 8,425 8,425 Colton Joint Unified School District Capital Appreciation G.O. Unlimited Bonds, Series C, Election of 2001 (FGIC Insured), 0.00%, 2/1/32 5,800 1,626 Kern High School District G.O. Unlimited Refunding Bonds, Series A (MBIA Insured), 6.60%, 2/1/17 1,845 2,056 6.60%, 8/1/17 1,825 2,034 Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series C (MBIA Insured), 5.00%, 7/1/29 2,500 2,641 Los Angeles Harbor Department Revenue Refunding Bonds, Series B (AMT) (AMBAC Insured), 5.50%, 8/1/19 2,750 2,926 Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A-1 (FGIC Insured), 5.50%, 7/1/18 5,000 5,756
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED CALIFORNIA - 16.7% - (CONTINUED) Menlo Park G.O. Unlimited Bonds, 5.25%, 8/1/27 $ 1,000 $ 1,074 Moreland School District G.O. Unlimited Bonds, Series C, Election of 2002 (FGIC Insured), 0.00%, 8/1/28 3,000 1,002 Orange County Sanitation District COP (FGIC Insured), 5.25%, 2/1/28 12,310 13,134 San Mateo County Community College District G.O. Unlimited Bonds, Series B, Election 2005, 5.00%, 9/1/38 7,000 7,441 Walnut Valley Unified School District G.O. Unlimited Bonds, Series A (MBIA Insured), Escrowed to Maturity, 6.00%, 8/1/13 1,000 1,141 ---------- 90,271 ---------- COLORADO - 0.9% Colorado Health Facilities Authority Revenue Bonds, Portercare Adventist Health Hospital, Prerefunded, 6.50%, 11/15/11 1,000 1,133 Denver City & County Special Facilities Airport Revenue Bonds, Series A (AMT), Rental Car Project (MBIA Insured), 6.00%, 1/1/14 3,360 3,513 ---------- 4,646 ---------- CONNECTICUT - 3.1% Connecticut HFA Mortgage Program Revenue Bonds, Series D, 4.65%, 11/15/27 3,300 3,359 Connecticut State G.O. Unlimited Refunding Bonds, Series E, 5.00%, 12/15/20 2,500 2,723 Connecticut State Higher Education Supplement Loan Authority Revenue Refunding Bonds, Series A (AMT), Family Education Loan Program (MBIA Insured), 4.75%, 11/15/18 1,000 1,026
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED CONNECTICUT - 3.1% - (CONTINUED) Connecticut State Special Tax Obligation Revenue Bonds, Series A, Transportation Infrastructure, Partially Prerefunded, 7.13%, 6/1/10 $ 8,625 $ 9,425 ---------- 16,533 ---------- FLORIDA - 7.6% Crossings at Fleming Island Community Development District Special Assessment Revenue Refunding Bonds, Series C, 7.05%, 5/1/15 1,500 1,598 Florida State Board of Education Capital Outlay G.O. Unlimited Bonds, 9.13%, 6/1/14 2,090 2,526 Florida State Board of Education Capital Outlay G.O. Unlimited Refunding Bonds, Escrowed to Maturity, 9.13%, 6/1/14 325 433 Florida State Broward County G.O. Unlimited Bonds, Escrowed to Maturity, 10.00%, 7/1/14 15,950 20,757 Orlando Utilities Commission Water & Electric Revenue Refunding Bonds, Series D, Escrowed to Maturity, 6.75%, 10/1/17 7,700 9,187 Poinciana Community Development District Special Assessment Bonds, Series A, 7.13%, 5/1/31 1,000 1,071 Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15 4,945 5,452 ---------- 41,024 ---------- GEORGIA - 2.6% Forsyth County G.O. Unlimited Bonds, Prerefunded, 6.00%, 3/1/10 3,290 3,545 Gainesville & Hall County Development Authority Revenue Bonds, Series C, Senior Living Facilities - Lanier Village, 7.25%, 11/15/29 2,000 2,180 Georgia Municipal Electric Authority Power Revenue Bonds, Series B (FGIC-TCRS Insured), 6.38%, 1/1/16 2,300 2,739
NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED GEORGIA - 2.6% - (CONTINUED) Georgia State G.O. Unlimited Refunding Bonds, Series C, 5.50%, 7/1/16 $ 2,500 $ 2,796 Georgia State Housing & Finance Authority Revenue Bonds, Series B (AMT), Single Family Mortgage (G.O. of Authority Insured), 5.00%, 12/1/26 1,500 1,539 Private Colleges & Universities Authority Student Housing Revenue Bonds, Series A, Mercer Housing Corp. Project, 6.00%, 6/1/21 1,000 1,073 ---------- 13,872 ---------- ILLINOIS - 4.2% Bolingbrook Capital Appreciation G.O. Unlimited Bonds, Series B (MBIA Insured), 0.00%, 1/1/33 1,400 348 Chicago O'Hare International Airport Third Lien Revenue Bonds, Series B-2 (AMT) (XLCA Insured), 6.00%, 1/1/29 11,000 12,340 Cook County Capital Improvement G.O. Unlimited Bonds, Series C (AMBAC Insured), 5.00%, 11/15/25 2,500 2,630 Illinois Development Finance Authority Economic Development Revenue Bonds, Latin School of Chicago Project, Prerefunded, 5.60%, 8/1/08 350 360 Illinois Educational Facilities Authority Student Housing Revenue Bonds, Educational Advancement Fund University Center Project, Prerefunded, 6.00%, 5/1/12 750 840 Illinois Health Facilities Authority Revenue Bonds, Riverside Health System, Prerefunded, 6.00%, 11/15/12 1,000 1,118 Metropolitan Pier & Exposition Authority Revenue Bonds, Series A, McCormick Place Expansion (MBIA Insured), 5.25%, 6/15/42 5,000 5,349 ---------- 22,985 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED INDIANA - 4.6% Franklin Township Independent School Building Corp. Marion County First Mortgage Revenue Bonds, Prerefunded, 6.50%, 7/15/10 $ 5,000 $ 5,551 Hamilton County Independent Public Building Corp. First Mortgage G.O. Unlimited Bonds, 7.25%, 8/1/13 4,200 4,982 Indiana Office Building Commission Capital Complex Revenue Bonds, Series B (MBIA Insured), 7.40%, 7/1/15 5,620 6,929 Indianapolis Industrial Utilities District Revenue Refunding Bonds, Series B (FGIC Insured), 3.50%, 6/1/18 3,280 3,131 Indianapolis Industrial Utilities District Revenue Refunding Bonds, Series B (FGIC Insured), Escrowed to Maturity, 4.00%, 6/1/08 2,275 2,289 Monroe County Hospital Authority Revenue Bonds, Series B, Bloomington Hospital Obligation Group (FSA Insured), 6.00%, 5/1/29 2,000 2,114 ---------- 24,996 ---------- KANSAS - 0.3% Wichita Hospital Improvement Facilities Revenue Refunding Bonds, Series III, 6.25%, 11/15/18 1,685 1,848 ---------- KENTUCKY - 2.0% Louisville & Jefferson County Metropolitan Sewer District Sewer & Drain System Revenue Bonds, Series A (MBIA Insured), 5.50%, 5/15/34 10,000 10,810 ---------- MASSACHUSETTS - 1.6% Massachusetts State Water Pollution Abatement Revenue Bonds, Series A, MWRA Program, 6.00%, 8/1/19 3,000 3,622
FIXED INCOME FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED MASSACHUSETTS - 1.6% - (CONTINUED) Massachusetts State Water Resources Authority Revenue Refunding Bonds, Series D (MBIA Insured G.O. of Authority), 5.00%, 8/1/24 $ 5,000 $ 5,130 ---------- 8,752 ---------- MICHIGAN - 0.7% Wayne Charter County Airport Revenue Bonds, Series B (MBIA Insured), 4.88%, 12/1/23 2,500 2,550 Wayne Charter County Revenue Refunding Bonds, Series C (FGIC Insured), 5.38%, 12/1/15 1,000 1,078 ---------- 3,628 ---------- MINNESOTA - 0.3% Minnesota State Housing Finance Agency SFM Revenue Bonds, Series A (MBIA Insured), 5.35%, 7/1/17 535 550 Minnesota State Housing Finance Agency SFM Revenue Bonds, Series F, 5.70%, 1/1/17 915 916 ---------- 1,466 ---------- MISSOURI - 5.4% Metro Development Agency District Revenue Bonds, Series B, Metrolink Cross Country Project (FSA Insured), 5.25%, 10/1/17 2,500 2,709 Missouri State Board of Public Buildings Special Obligations Revenue Bonds, Series A, 5.00%, 10/15/19 5,000 5,338 Missouri State Health & Educational Facilities Authority Revenue Bonds, Series B, The Washington University, (1) 4.50%, 1/15/41 5,000 4,965 Missouri State Highways & Transit Commission State Road Revenue Bonds, Series A, First Lien, 5.00%, 5/1/19 10,000 10,859 Missouri State Highways & Transit Commission State Road Revenue Refunding Bonds, Senior Lien, 5.00%, 2/1/17 5,000 5,494 ---------- 29,365 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED NEVADA - 0.9% Clark County Passenger Facitities Charge Revenue Refunding Bonds, Las Vegas McCarran International Airport (MBIA Insured), (1) 4.75%, 7/1/22 $ 5,000 $ 5,094 ---------- NEW JERSEY - 3.7% New Jersey Economic Development Authority Revenue Bonds, Cigarette Tax, 5.75%, 6/15/29 5,000 5,410 New Jersey Health Care Facilities Financing Authority Revenue Refunding Bonds, Atlantic City Medical Center, 6.25%, 7/1/17 1,000 1,113 New Jersey State TRAN, 4.50%, 6/22/07 10,000 10,043 New Jersey State Turnpike Authority Growth & Income Securities Revenue Bonds, Series B (AMBAC Insured), 0.00%, 1/1/35 5,000 3,568 ---------- 20,134 ---------- NEW YORK - 11.6% Dutchess County IDA Civic Facilities Revenue Bonds, Bard College Civic Facilities, 5.75%, 8/1/30 2,000 2,138 New York City G.O. Unlimited Bonds, Series A, 6.00%, 5/15/30 50 54 New York City G.O. Unlimited Bonds, Series C, (1) 5.00%, 1/1/21 4,040 4,315 New York City G.O. Unlimited Bonds, Series C, Prerefunded, 5.50%, 3/15/12 3,500 3,777 New York City G.O. Unlimited Bonds, Series H, TCRS-BNY (AMBAC Insured), 5.00%, 8/1/19 5,000 5,351 New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series B, Prerefunded, 6.00%, 6/15/10 1,940 2,106
NORTHERN FUNDS QUARTERLY REPORT 4 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED NEW YORK - 11.6% - (CONTINUED) New York City Municipal Water Finance Authority Water & Sewer System Revenue Crossover Refunding Bonds, Series B, 6.00%, 6/15/33 $ 1,160 $ 1,255 New York City Transitional Finance Authority Revenue Bonds, Series B, Future Tax Secured, Prerefunded, 6.00%, 5/15/10 4,000 4,335 New York State Dormitory Authority Lease Revenue Bonds, Series A, Court Facilities, Prerefunded, 5.50%, 5/15/13 1,000 1,104 New York State Dormitory Authority Lease Revenue Bonds, Series A, University Dormitory Facilities, Prerefunded, 6.25%, 7/1/10 1,115 1,221 Port Authority of New York & New Jersey Revenue Bonds, Series 109 (G.O. of Authority), 5.38%, 1/15/32 2,000 2,022 Sales Tax Asset Receivables Corp. Revenue Bonds, Series A (MBIA Insured), 5.25%, 10/15/19 5,000 5,488 Tobacco Settlement Financing Authority Revenue Bonds, Series B-1C, 5.50%, 6/1/18 5,000 5,398 Tobacco Settlement Financing Corp. Revenue Bonds, Series C-1, 5.50%, 6/1/16 10,000 10,703 5.50%, 6/1/19 5,000 5,451 Triborough Bridge & Tunnel Authority Revenue Bonds, Series Y, General Purpose (G.O. of Authority), Escrowed to Maturity, 6.00%, 1/1/12 7,500 8,087 ---------- 62,805 ---------- NORTH CAROLINA - 2.8% North Carolina State Eastern Municipal Power Agency Power System Revenue Bonds, Series A, Escrowed to Maturity, 6.50%, 1/1/18 2,655 3,284 North Carolina State Eastern Municipal Power Agency Power System Revenue Bonds, Series D, 6.75%, 1/1/26 1,250 1,353
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED NORTH CAROLINA - 2.8% - (CONTINUED) North Carolina State Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series B, 7.00%, 1/1/08 $ 10,000 $ 10,312 ---------- 14,949 ---------- OHIO - 0.6% Columbus City School District G.O. Bonds, School Facilities Construction & Improvement (FSA Insured), Prerefunded, 5.25%, 12/1/14 1,115 1,232 Ohio Housing Finance Agency Mortgage Revenue Bonds, Series C (AMT), Residential Mortgage-Backed Securities (Colld. by GNMA Securities), 5.15%, 3/1/13 720 741 Plain Local School District G.O. Unlimited Bonds (FGIC Insured), 6.00%, 12/1/25 190 206 Plain Local School District G.O. Unlimited Bonds (FGIC Insured), Prerefunded, 6.00%, 6/1/11 810 887 ---------- 3,066 ---------- OKLAHOMA - 1.6% McGee Creek Authority Water Revenue Bonds (MBIA Insured), 6.00%, 1/1/13 6,000 6,421 Payne County Economic Development Authority Student Housing Revenue Bonds, Series A, Collegiate Housing Foundation, Prerefunded, 6.38%, 6/1/11 2,000 2,213 ---------- 8,634 ---------- OREGON - 0.3% Oregon State Housing & Community Services Department Mortgage Revenue Bonds, Series E, SFM Program (FHA Insured), 6.15%, 7/1/30 400 412 Oregon State Housing & Community Services Department Mortgage Revenue Bonds, Series F, SFM Project, 5.55%, 7/1/30 1,270 1,314 ---------- 1,726 ----------
FIXED INCOME FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED PENNSYLVANIA - 3.7% Beaver County IDA PCR Refunding Bonds, Class D, Duquesne Convention (AMBAC Insured), (1) 4.50%, 11/1/29 $ 2,500 $ 2,493 Montgomery County Higher Education & Health Authority Revenue Bonds, Series A, Philadelphia Geriatric Center, Prerefunded, 7.38%, 12/1/09 3,000 3,332 Pennsylvania Housing Finance Agency SFM Revenue Bonds, Series 72A (AMT), 4.80%, 4/1/12 750 768 Pennsylvania State G.O. Unlimited Bonds, First Series, 4.00%, 9/1/20 3,245 3,185 Pennsylvania State G.O. Unlimited Bonds, Second Series (FGIC Insured), 5.00%, 7/1/09 5,000 5,169 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, LaSalle University, 5.50%, 5/1/34 1,330 1,409 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, UPMC Health System, 6.00%, 1/15/22 1,750 1,905 Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue Bonds, Series A, Student Association, Inc. Project, 6.75%, 9/1/32 1,475 1,602 ---------- 19,863 ---------- PUERTO RICO - 2.6% Puerto Rico Commonwealth Highway & Transportation Authority Transportation Revenue Bonds, Series B, Prerefunded, 6.00%, 7/1/10 2,000 2,170 Puerto Rico Commonwealth Highway & Transportation Authority Transportation Revenue Bonds, Series D, Prerefunded, 5.25%, 7/1/12 11,260 12,180 ---------- 14,350 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED RHODE ISLAND - 0.6% Rhode Island Economic Development Corp. Airport Revenue Bonds, Series B (FGIC Insured), Prerefunded, 6.50%, 7/1/10 $ 3,000 $ 3,302 ---------- TEXAS - 7.9% Birdville Independent School District Capital Appreciation G.O. Unlimited Bonds (PSF Gtd.), 0.00%, 2/15/19 1,795 868 Dallas Civic Center Revenue Refunding & Improvement Bonds (MBIA Insured), 4.88%, 8/15/23 2,500 2,555 Denton Utility System Improvement Revenue Refunding Bonds (FSA Insured), 4.50%, 12/1/22 500 505 Harris County Health Facilities Development Corp. Revenue Bonds, Series A, Christus Health (MBIA Insured), Escrowed to Maturity, 5.50%, 7/1/09 180 188 Lewisville Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.25%, 8/15/18 5,000 5,509 Parker County Hospital District Revenue Bonds, Campbell Health System, Prerefunded, 6.25%, 8/15/09 1,000 1,083 Pflugerville Certificates G.O. Limited Bonds (AMBAC Insured), 5.00%, 8/1/33 3,075 3,242 Sam Rayburn Municipal Power Agency Revenue Refunding Bonds, 6.00%, 10/1/16 1,000 1,061 6.00%, 10/1/21 1,250 1,328 Texas Municipal Power Agency Revenue Refunding Bonds (AMBAC Insured), 4.00%, 9/1/12 1,000 1,001 Texas State TRAN, 4.50%, 8/31/07 15,000 15,091 Texas State Veterans Housing Assistance G.O. Unlimited Bonds, Series C (AMT), Fund II, 6.10%, 6/1/21 3,000 3,174
NORTHERN FUNDS QUARTERLY REPORT 6 FIXED INCOME FUNDS FIXED INCOME FINDS SCHEDULE OF INVESTMENTS TAX-EXEMPT FUND (continued)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- MUNICIPAL BONDS - 91.1% - CONTINUED TEXAS - 7.9% - (CONTINUED) Texas University Revenue Bonds, Series E, Financing System, (1) 5.00%, 8/15/18 $ 3,200 $ 3,476 5.00%, 8/15/19 3,000 3,249 Waxahachie Independent School District Capital Appreciation G.O. Unlimited Bonds (PSF Gtd.), 0.00%, 8/15/16 240 140 0.00%, 8/15/23 190 69 0.00%, 8/15/28 305 79 0.00%, 8/15/30 320 72 ---------- 42,690 ---------- WASHINGTON - 1.1% Washington State G.O. Unlimited Bonds, Series B & AT-7, 6.40%, 6/1/17 5,200 6,144 ---------- WISCONSIN - 0.5% Madison Metropolitan School District TRAN, 4.00%, 9/7/07 2,500 2,507 ---------- TOTAL MUNICIPAL BONDS (COST $472,831) 493,071 ----------
NUMBER VALUE OF SHARES (000S) ------------- ---------- INVESTMENT COMPANIES - 4.2% AIM Tax Exempt Cash Fund 22,732,164 22,732 Dreyfus Tax-Exempt Cash Management Fund 32,069 32 ---------- TOTAL INVESTMENT COMPANIES (COST $22,764) 22,764 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 9.0% Beaver County IDA PCR Refunding VRDB, Firstenergy Generation (Barclays Bank PLC LOC), 3.97%, 1/2/07 $ 300 300 Charlotte Water & Sewer Systems Revenue VRDB, Series B, 3.89%, 1/4/07 5,500 5,500
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 9.0% - CONTINUED Louisiana Offshore Terminal Authority Deepwater Port Revenue VRDB, Series A, Loop LLC Project (SunTrust Bank LOC), 3.99%, 1/2/07 $ 3,000 $ 3,000 Massachusetts State Health & Educational Facilities Authority Revenue VRDB, Series GG-1, Harvard University, 3.90%, 1/4/07 5,000 5,000 Michigan State Hospital Finance Authority Revenue Refunding VRDB, Series A, Crittenton Hospital (Comerica Bank LOC), 4.00%, 1/2/07 100 100 Mississippi Medical Center Educational Building Corp. Revenue VRDB, Adult Hospital Project (AMBAC Insured), 3.91%, 1/4/07 3,850 3,850 Ohio State Air Quality Development Authority Revenue Refunding VRDB, Series A, Polution Control - Firstenergy (Barclays Bank PLC LOC), 3.95%, 1/3/07 10,000 10,000 Sublette County PCR VRDB, Series B (AMT), Exxon Project, 3.99%, 1/2/07 2,000 2,000 Sunshine State Governmental Financing Commission Revenue VRDB (AMBAC Insured), 3.97%, 1/2/07 1,800 1,800 Tarrant County Health Facilities Development Corp. Revenue VRDB, Series A, Adventist/Sunbelt (Suntrust Bank LOC), 3.91%, 1/4/07 400 400 Utah Transit Authority Sales Tax Revenue VRDB, Subseries B (Fortis Bank S.A./N.V. LOC), 3.88%, 1/2/07 16,700 16,700
FIXED INCOME FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENTS - 9.0% - CONTINUED Washington State Housing Finance Commission Nonprofit Housing Revenue Refunding VRDB, Emerald Heights Project (Bank of America N.A. LOC), 3.95%, 1/2/07 $ 100 $ 100 ---------- TOTAL SHORT-TERM INVESTMENTS (COST $48,750) 48,750 ---------- TOTAL INVESTMENTS - 104.3% (COST $544,345) 564,585 ---------- Liabilities less Other Assets - (4.3)% (23,060) ---------- NET ASSETS - 100.0% $ 541,525
(1) When-Issued Security At December 31, 2006, the industry sectors for the Tax-Exempt Fund were:
INDUSTRY SECTOR % OF INVESTMENTS --------------- ---------------- General Obligation 16.7% Higher Education 6.3 Power 6.5 School District 5.5 Transportation 14.0 Utilities 10.0 All other sectors less than 5% 41.0 ----- Total 100.0%
At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $544,345 -------- Gross tax appreciation of investments $ 20,744 Gross tax depreciation of investments (504) -------- Net tax appreciation of investments $ 20,240 ========
With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent the stated date on the security, the next interest reset/ puttable date for floating and variable rate securities or the prerefunded date for these types of securities. Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are safely invested, usually in Treasury securities, that will mature at the first call date of the first bond issue. Those first bonds are said to be prerefunded after this operation has taken place. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax Colld. - Collateralized COP - Certificate of Participation FGIC - Financial Guaranty Insurance Corporation FHA - Federal Housing Authority FSA - Financial Security Assurance GNMA - Government National Mortgage Association G.O. - General Obligation Gtd. - Guaranteed HFA - Housing Finance Authority IDA - Industrial Development Authority LOC - Letter of Credit MBIA - Municipal Bond Insurance Association PFA - Public Finance Authority PSF - Permanent School Fund SFM - Single Family Mortgage TAN - Tax Anticipation Notes TCRS - Transferable Custodial Receipts TRAN - Tax and Revenue Anticipation Notes VRDB - Variable Rate Demand Bonds XLCA - XL Capital Assurance NORTHERN FUNDS QUARTERLY REPORT 8 FIXED INCOME FUNDS FIXED INCOME FUNDS SCHEDULE OF INVESTMENTS U.S. GOVERNMENT FUND
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- U.S. GOVERNMENT AGENCIES - 71.2% (1) FANNIE MAE - 34.9% 5.63%, 5/19/11 $ 5,575 $ 5,632 5.63%, 5/19/11 4,200 4,211 4.63%, 10/15/13 5,000 4,898 6.00%, 8/22/16 7,200 7,252 Pool #555649, 7.50%, 10/1/32 415 433 Pool #725787, 5.00%, 9/1/19 5,458 5,371 Pool TBA, (2) 6.00%, 1/1/17 8,710 8,830 6.00%, 1/1/32 7,010 7,056 5.00%, 1/1/35 7,010 6,767 ---------- 50,450 ---------- FEDERAL HOME LOAN BANK - 9.6% 4.25%, 4/16/07 4,574 4,562 5.63%, 6/13/16 5,000 5,146 5.50%, 10/19/16 4,230 4,213 ---------- 13,921 ---------- FREDDIE MAC - 9.6% 5.25%, 10/6/11 7,510 7,479 5.50%, 7/18/16 3,000 3,112 Pool #410092, 6.91%, 11/1/24 131 135 Series 2944, Class WD, 5.50%, 11/15/28 3,125 3,121 ---------- 13,847 ---------- FREDDIE MAC GOLD - 7.5% Pool TBA, (2) 5.50%, 1/1/32 10,900 10,777 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.0% Pool #268360, 10.00%, 4/15/19 31 35 Pool #270288, 10.00%, 6/15/19 26 29 ---------- 64 ----------
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- U.S. GOVERNMENT AGENCIES - 71.2% (1) - CONTINUED SMALL BUSINESS ADMINISTRATION - 9.6% Participation Certificates, Series 2005-20L, Class 1, 5.39%, 12/1/25 $ 1,851 $ 1,864 Participation Certificates, Series 2006-20B, Class 1, 5.35%, 2/1/26 1,672 1,680 Participation Certificates, Series 2006-20D, Class 1, 5.64%, 4/1/26 1,840 1,880 Participation Certificates, Series 2006-20G, Class 1, 6.07%, 7/1/26 3,000 3,123 Participation Certificates, Series 2006-20K, Class 1, 5.36%, 11/1/26 2,891 2,902 Series 2005-P10B, Class 1, 4.94%, 8/10/15 2,456 2,429 ---------- 13,878 ---------- TOTAL U.S. GOVERNMENT AGENCIES (COST $103,136) 102,937 ---------- U.S. GOVERNMENT OBLIGATIONS - 12.0% U.S. TREASURY NOTES - 12.0% 4.63%, 11/15/09 3,335 3,325 4.50%, 11/30/11 7,930 7,859 4.63%, 11/15/16 6,163 6,122 ---------- 17,306 ---------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $17,448) 17,306 ----------
FIXED INCOME FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) ------------- ---------- SHORT-TERM INVESTMENT - 39.5% FHLB Discount Note, 4.87%, 1/3/07 $ 57,227 $ 57,212 ---------- TOTAL SHORT-TERM INVESTMENT (COST $57,212) 57,212 ---------- TOTAL INVESTMENTS - 122.7% (COST $177,796) 177,455 ---------- Liabilities less Other Assets - (22.7)% (32,806) ---------- NET ASSETS - 100.0% $ 144,649
(1) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. (2) When-Issued Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $177,796 -------- Gross tax appreciation of investments $ 385 Gross tax depreciation of investments (726) -------- Net tax depreciation of investments $ (341) ========
EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS: FHLB - Federal Home Loan Bank NORTHERN FUNDS QUARTERLY REPORT 2 FIXED INCOME FUNDS MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% CALIFORNIA - 91.9% ABAG Finance Authority for Nonprofit Corp. Coros California Revenue VRDB, Jewish Home San Francisco (Allied Irish Bank LOC), 3.92%, 1/2/07 $ 2,440 $ 2,440 ABAG Finance Authority for Nonprofit Corp. Coros Califorinia Revenue VRDB, Series 2002, Jackson Labs (Bank of America N.A. LOC), 3.88%, 1/9/07 195 195 ABAG Finance Authority for Nonprofit Corp. Coros California Revenue VRDB, Series 2004, Thacher Schools, 3.91%, 1/9/07 2,000 2,000 ABAG Finance Authority for Nonprofit Corp. Coros California Revenue VRDB, Series 2005, Institute for Defense Analyses (AMBAC Insured), 3.93%, 1/9/07 3,000 3,000 ABAG Finance Authority for Nonprofit Corp. Multifamily Revenue VRDB, Series 2000A (AMT), East Ridge Apartments (FNMA LOC), 3.91%, 1/9/07 2,545 2,545 ABAG Finance Authority for Nonprofit Corp. Multifamily Revenue VRDB, Series 2002 (AMT), The Bachenheimer Building Project (FNMA Gtd.), 3.94%, 1/9/07 7,720 7,720 ABAG Finance Authority for Nonprofit Corp. Multifamily Revenue VRDB, Series 2002A (AMT), Darling Florist Building Project (FNMA Gtd.), 3.94%, 1/9/07 4,710 4,710 ABAG Finance Authority for Nonprofit Corp. Revenue VRDB, Series A, Elder Care Alliance (Citibank N.A. LOC), 3.46%, 1/9/07 7,800 7,800 Alameda County IDA Revenue VRDB, Series 1995A (AMT), Heat and Control, Inc. Project (Comerica Bank LOC), 3.85%, 1/9/07 1,420 1,420 Alameda County IDA Revenue VRDB, Series 1997A (AMT), Tool Family Partnership (Wells Fargo Bank N.A. LOC), 3.90%, 1/9/07 1,240 1,240 Alameda County IDA Revenue VRDB, Series 2001 (AMT), Pacific Paper Tube Project (Wells Fargo Bank N.A. LOC), 3.90%, 1/9/07 2,285 2,285 Alameda County IDA Revenue VRDB, Series 2004 (AMT), Autumn Press, Inc. Project (Wells Fargo Bank N.A. LOC), 3.95%, 1/9/07 2,212 2,212 Alameda County IDA Revenue VRDB, Series 2004A (AMT), BEMA Electronics Manufacturing Project (Comerica Bank LOC), 3.95%, 1/9/07 2,200 2,200 Alameda-Contra Costa Schools Financing Authority COPS, Series 2002J, Capital Improvement Project (KBC Bank N.V. LOC), 3.92%, 1/9/07 2,870 2,870 Alameda-Contra Costa Schools Financing Authority COPS, Series 2002K, Capital Improvement Project (KBC Bank N.V. LOC), 3.92%, 1/9/07 3,500 3,500 Azusa Multifamily Housing Revenue Refunding Bonds, Series 1994, Pacific Glen Apartments Project (FNMA LOC), 3.76%, 1/9/07 600 600 Bay Area Toll Bridge Revenue VRDB, Series C, San Francisco Bay Area Toll Authority (AMBAC Insured), 3.73%, 1/9/07 12,100 12,100
MONEY MARKET FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) Bay Area Toll Bridge Revenue VRDB, Series 2001A, San Francisco Bay Area Toll Authority (AMBAC Insured), 3.80%, 1/9/07 $ 2,320 $ 2,320 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002C-1 (Dexia Credit Local LOC), 3.82%, 1/9/07 16,400 16,400 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002C-3 (AMBAC Insured), 3.82%, 1/9/07 6,775 6,775 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002C-7 (FSA Corp. Insured), 3.75%, 1/9/07 30,940 30,940 California Economic Development Financing Authority Revenue VRDB, Series 1996A (AMT), Joseph Schmidt Confections Project (BNP Paribas LOC), 3.90%, 1/9/07 2,900 2,900 California Economic Development Financing Authority Revenue VRDB, Series 1998 (AMT), Fricke-Parks Press, Inc. Project (Wells Fargo Bank N.A. LOC), 3.85%, 1/9/07 1,690 1,690 California Educational Facilities Authority Revenue Bonds, University of Southern California, Series 2003-45A, Soc Gen Municipal Trust Receipts, (1) 3.91%, 1/9/07 5,000 5,000 California Educational Facilities Authority Revenue VRDB, Series 2005B, Pomona College, 3.75%, 1/9/07 6,300 6,300 California FHLMC Multifamily Variable Rate Certificates, Series M001 Class A (AMT) (FHLMC Gtd.), 4.01%, 1/9/07 39,256 39,256 California FHLMC Multifamily Variable Rate Certificates, Series M007 Class A (AMT) (FHLMC LOC), 4.01%, 1/9/07 11,105 11,105 California Health Facilities Financing Authority Revenue VRDB, Series 2002, Adventist Health Systems (Wachovia Bank N.A. LOC), 3.95%, 1/2/07 4,300 4,300 California Health Facilities Financing Authority Revenue VRDB, Series 2004K, Catholic Healthcare West (Bank of America N.A. LOC), 3.80%, 1/9/07 3,650 3,650 California Housing Finance Agency Revenue VRDB, Series F (AMT), Home Mortgage (FSA Corp. Insured), 3.91%, 1/9/07 17,600 17,600 Series 2004E-1 (AMT), Home Mortgage, 3.91%, 1/9/07 9,900 9,900 California Infrastructure and Economic Development Bank IDR VRDB, Series 2002A (AMT), Block and Brick Project (U.S. Bank N.A. LOC), 3.81%, 1/9/07 4,765 4,765 California Infrastructure and Economic Development Bank Revenue VRDB, Contemporary Jewish Museum (Bank of America N.A. LOC), 3.73%, 1/9/07 10,000 10,000 California Infrastructure and Economic Development Bank Revenue VRDB, J Paul Getty Trust, Series 2003B, 3.25%, 2/2/07 5,000 5,000 Series 2003D, 3.25%, 2/2/07 15,000 15,000
MONEY MARKET FUNDS 2 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) California Infrastructure and Economic Development Bank Revenue VRDB, Series 2002, Academy of Motion Pictures Arts and Sciences (AMBAC Insured), 3.93%, 1/9/07 $ 7,000 $ 7,000 California Infrastructure and Economic Development Bank Revenue VRDB, Series A (AMT), Pocino Foods Co. Project (Wells Fargo Bank N.A. LOC), 3.81%, 1/9/07 4,000 4,000 California Pollution Control Financing Authority Environmental Improvement Revenue VRDB, Series 1997B (AMT), Air Products Manufacturing, 3.95%, 1/9/07 10,000 10,000 California Financing Authority PCR Refunding Bonds, Series 1996C, Pacific Gas and Electric Company (JPMorgan Chase Bank LOC), 3.80%, 1/2/07 1,200 1,200 California Financing Authority PCR Refunding Bonds, Series 1996E, Pacific Gas and Electricity (JPMorgan Chase Bank LOC), 3.92%, 1/2/07 4,800 4,800 California Pollution Control Financing Authority Revenue Bonds, Merrill Lynch P-Floats PA-538R, San Diego Gas and Electric (MBIA Insured), (1) 3.96%, 1/9/07 24,160 24,160 California Pollution Control Financing Authority Revenue Bonds, Merrill Lynch P-Floats PA-633R, San Diego Gas and Electric (MBIA Insured), (1) 3.96%, 1/9/07 11,850 11,850 California School Cash Reserve Program Authority Revenue Notes COPS, Series 2006-07 A TRANS, 4.50%, 7/6/07 14,000 14,069 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002B-1 (Bank of New York LOC), 3.92%, 1/2/07 3,100 3,100 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002C-4 (JPMorgan Chase Bank LOC), 3.84%, 1/9/07 8,100 8,100 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002C-16 (Bank of New York LOC), 3.79%, 1/9/07 5,400 5,400 California State Department of Water Resources and Power Supply Revenue VRDB, Subseries F-4 (Bank of America N.A. LOC), 3.92%, 1/2/07 3,200 3,200 California State Department of Water Resources and Power Supply Revenue VRDB, Subseries G-1 (Bank of Nova Scotia LOC), 3.82%, 1/9/07 16,100 16,100 California State Department of Water Resources and Power Supply Revenue VRDB, Subseries G-3 (FSA Corp. Insured), 3.75%, 1/9/07 2,720 2,720
MONEY MARKET FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) California State Economic Recovery Revenue VRDB, Series 2004C-1 (BNP Paribas LOC), 3.84%, 1/9/07 $ 8,600 $ 8,600 Series 2004C-2, 3.75%, 1/2/07 150 150 Series 2004C-4, 3.92%, 1/2/07 8,450 8,450 Series 2004C-8 (Lloyds TSB Bank PLC LOC), 3.75%, 1/2/07 3,200 3,200 Series 2004C-16 (FSA Corp. Insured), 3.75%, 1/9/07 13,810 13,810 California State G.O., Eagle Trust Series 20000507 (XLCA Insured), (1) 3.92%, 1/9/07 10,000 10,000 California State G.O., Kindergarten-University, Series 2004A-2 (Citibank N.A. LOC), 3.88%, 1/2/07 4,530 4,530 Series 2004A-8 (Citibank N.A. LOC), 3.75%, 1/9/07 13,145 13,145 Series 2004A-9 (Citibank N.A. LOC), 3.79%, 1/9/07 16,600 16,600 California State G.O., Merrill Lynch P-Floats Series PT-1257 (XLCA Insured), (1) 3.94%, 1/9/07 11,475 11,475 California State G.O., P-Floats PA 1357 (Merrill Lynch Gtd.), (1) 3.95%, 1/9/07 4,000 4,000 California State G.O. RANS, 4.50%, 6/29/07 14,500 14,578 California State G.O., Series 2003-1, ABN AMRO Munitops Certificate Trust (AMBAC Insured), (1) 3.94%, 1/9/07 6,000 6,000 California State G.O., Series 2003B-4 Floating Rate Certificates (Bank of New York LOC), 3.75%, 1/9/07 14,000 14,000 California State G.O. VRDB, Series N, Macon Trust Certificates (AMBAC Insured), (1) 3.92%, 1/9/07 15,750 15,750 California State Public Works Board Revenue Bonds, Series PT-2915, Merrill Lynch P-Floats (MBIA Insured), (1) 3.92%, 1/9/07 9,600 9,600 California State Veterans G.O. (AMT), Citigroup ROCS-RR-II-R-438CE (Citigroup, Inc. Gtd.), (1) 3.93%, 1/9/07 9,375 9,375 California Statewide Communities Development Authority COPS, Series 1995, Covenenat Retirement Communities (LaSalle Bank N.A. LOC), 3.77%, 1/9/07 10,000 10,000 California Statewide Communities Development Authority COPS, Series 1999-176, Morgan Stanley Floating Rate Certificates (FSA Corp. Insured), (1) 3.90%, 1/9/07 10,595 10,595 California Statewide Communities Development Authority Multifamily (AMT), Merrill Lynch P-Floats Series PT-1863, Arms Apartments Project (Merrill Lynch & Co., Inc. Gtd.), (1) 4.00%, 1/9/07 3,480 3,480
MONEY MARKET FUNDS 4 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) California Statewide Communities Development Authority Multifamily Revenue Bonds, Series 2003NN1 (AMT), Bay Vista Meadow Park Project (Wells Fargo Bank N.A. LOC), 3.90%, 1/9/07 $ 7,500 $ 7,500 California Statewide Communities Development Authority Multifamily Revenue Refunding VRDB, Series 2002C (AMT), Aegis Moraga Project (FNMA LOC), 3.90%, 1/9/07 5,000 5,000 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series M (AMT), Pavillions Apartments (FNMA LOC), 3.87%, 1/9/07 11,200 11,200 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2000V (AMT), Aqua Vista Apartments Project (FNMA LOC), 3.87%, 1/9/07 6,700 6,700 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2002B (AMT), Olen Jones Senior Apartments Project (Citibank N.A. LOC), 4.02%, 1/9/07 860 860 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2002S (AMT), Concord Green Apartments (FHLB of San Francisco LOC), 3.87%, 1/9/07 5,000 5,000 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2002X (AMT), Sharps and Flats Apartments (FNMA LOC), 3.87%, 1/9/07 9,300 9,300 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2003-00 (AMT), Dublin Ranch Apartments (Bank of America N.A. LOC), 3.90%, 1/9/07 14,900 14,900 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2004A (AMT), Maple Square Apartments Project (Citibank N.A. LOC), 3.90%, 1/9/07 4,800 4,800 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2004C (AMT), Avian Glen Apartments Project (Citibank N.A. LOC), 3.90%, 1/9/07 9,600 9,600 California Statewide Communities Development Authority Multifamily Revenue VRDB, Series 2005 (AMT), Crossing Senior Phase IIJ (Citibank N.A. LOC), 3.90%, 1/9/07 7,425 7,425 California Statewide Communities Development Authority Revenue VRDB, Series 2001, Gemological Institute (AMBAC Insured), 3.76%, 1/9/07 100 100 California Statewide Communities Development Authority Revenue VRDB, Series 2001, Senior Living Facility (Bank of New York LOC), 3.77%, 1/9/07 15,800 15,800 California Statewide Communities Development Authority Revenue VRDB, Series 2003, Morgan Hill Country School (Bank of America N.A. LOC), 3.73%, 1/9/07 1,600 1,600 California Statewide Communities Development Authority Revenue VRDB, Series 2003B, Kaiser Permanente Project, 3.77%, 1/9/07 8,450 8,450 Series 2004J, Kaiser Permanente Project, 3.77%, 1/9/07 16,800 16,800 Series 2004L, Kaiser Permanente Project, 3.77%, 1/9/07 11,200 11,200 Series 2004M, Kaiser Permanente Project, 3.77%, 1/9/07 12,100 12,100 California Statewide Communities Development Authority Revenue VRDB, Series 2006, Amern Baptist Homes West (LaSalle Bank N.A. LOC), 3.77%, 1/9/07 9,600 9,600
MONEY MARKET FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) California Statewide Communities Development Authority Revenue VRDB, University of San Diego (BNP Paribas LOC), 3.88%, 1/9/07 $ 18,400 $ 18,400 City of Hayward Multifamily Housing Revenue VRDB, Series 1984A, Shorewood Apartment Project (FNMA Gtd.), 3.80%, 1/9/07 13,200 13,200 City of Stockton Revenue VRDB, Series 2002A, Dameron Hospital Association (U.S. Bank N.A. LOC), 3.85%, 1/2/07 1,100 1,100 Contra Costa Multifamily Housing Revenue VRDB, Series 2003 (AMT), Creekview Apartments (FHLMC LOC), 3.87%, 1/9/07 14,500 14,500 Contra Costa Water District Revenue Bonds, Series 750, Morgan Stanley Floating Certificates (FSA Corp. Insured), (1) 3.90%, 1/9/07 6,330 6,330 Elsinore Valley Municipal Water District COPS VRDB, Series 2000A (FGIC Insured), 3.73%, 1/9/07 16,600 16,600 Golden West Schools Financing Authority G.O., Series 2005A 12, Wachovia MERLOTS (FGIC Insured), (1) (2) 3.93%, 1/9/07 5,790 5,790 Grand Terrace Community Redevelopment Multifamily Revenue Bonds, Series 1985A, Mount Vernon Villas Project (FNMA LOC), 3.78%, 1/9/07 7,025 7,025 Livermore Multifamily Revenue Refunding VRDB, Series 1990, Diablo Vista Apartments (FNMA LOC), 3.78%, 1/9/07 2,200 2,200 Los Angeles Community Redevelopment Agency Multifamily Housing Revenue VRDB, Series A (AMT), Security Building Project (FNMA Insured), 3.83%, 1/9/07 6,000 6,000 Los Angeles Community Redevelopment Agency Revenue VRDB, Series 2003A (AMT), Views at 270 (Citibank N.A. LOC), 3.93%, 1/9/07 1,686 1,686 Los Angeles Convention and Exhibition Center Authority Lease Revenue Refunding VRDB, Series 2003D (AMBAC Insured), 3.75%, 1/9/07 8,515 8,515 Series 2003E (AMBAC Insured), 3.79%, 1/9/07 2,500 2,500 Los Angeles COPS, Series 2004A, Village School, Inc. (Allied Irish Bank PLC LOC), 3.87%, 1/9/07 5,815 5,815 Los Angeles County Housing Authority Multifamily Revenue VRDB, Series 1985, Malibu Canyon Apartments (FHLMC LOC), 3.75%, 1/9/07 8,200 8,200 Los Angeles County Housing Authority Multifamily Revenue VRDB, Series 2003C (AMT), Castaic Senior Apartments Project (FNMA LOC), 3.87%, 1/9/07 5,300 5,300 Los Angeles County TRANS, Series A (Los Angeles County Gtd.), 4.50%, 6/29/07 17,000 17,082 Los Angeles Department of Water and Power Waterworks Revenue Bonds, Series 2001B-1, 3.82%, 1/2/07 1,800 1,800
MONEY MARKET FUNDS 6 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) Los Angeles IDA Empowerment Zone Facilities Revenue Bonds, Series 2003 (AMT), Green Farms, Inc. Project (Comerica Bank LOC), 3.95%, 1/9/07 $ 3,000 $ 3,000 Los Angeles IDA Revenue VRDB, Series 2001 (AMT), Wing Hing Noodle Co. Project (Comerica Bank LOC), 3.95%, 1/9/07 2,335 2,335 Los Angeles Multifamily Revenue VRDB, Series 1985C, Studio Colony (JPMorgan Chase Bank N.A. LOC), 3.76%, 1/9/07 19,510 19,510 Los Angeles Multifamily Revenue VRDB, Series 1997D (AMT), Mission Village Terrace Project (FHLB of San Francisco LOC), 3.87%, 1/9/07 3,540 3,540 Los Angeles Multifamily Revenue VRDB, Series 2003A (AMT), Asbury Apartments Project (Citibank N.A. LOC), 3.89%, 1/9/07 5,500 5,500 Los Angeles, Series 2006, TRANS, 4.50%, 6/29/07 12,000 12,058 Los Angeles Unified School District COPS VRDB, Series 2005B, Administration Building Project III (AMBAC Insured), 3.75%, 1/9/07 3,450 3,450 Los Angeles Unified School District G.O., Series 2006, TRANS, 4.25%, 12/3/07 5,000 5,036 Metropolitan Water District of Southern California Revenue Bonds, Series 2005-66, ABN AMRO Munitops Certificate Trust (FSA Corp. Insured), (1) 3.94%, 1/9/07 16,685 16,685 Metropolitan Water District of Southern California Waterworks Revenue Bonds, Series 1999B, 3.71%, 1/9/07 3,400 3,400 Metropolitan Water District of Southern California Waterworks Revenue Refunding VRDB, Series 2003C-1, 3.70%, 1/9/07 7,595 7,595 Series 2003C-2, 3.75%, 1/9/07 2,620 2,620 Metropolitan Water District of Southern California Waterworks Revenue VRDB, Series 2000B-3, 3.75%, 1/2/07 3,000 3,000 Metropolitan Water District of Southern California Waterworks Revenue VRDB, Series 2005B-2, 3.84%, 1/9/07 12,800 12,800 Oakland G.O. Bonds, Series 2003-A, ABN AMRO Munitops Certificate Trust 2004-22 (MBIA Insured), (1) 3.94%, 1/9/07 8,935 8,935 Oakland Revenue Bonds, MERLOTS Series 2000M (AMBAC Insured), (1) 3.93%, 1/9/07 3,000 3,000 Ohlone Community College, Series 2005B, ABN AMRO Munitops Certificate Trust 2005-43 (FSA Corp. Insured), (1) 3.94%, 1/9/07 10,000 10,000 Orange County Development Revenue Refunding VRDB, Issue G of 1998 Series 3, WLCO LF Partners (FNMA LOC), 3.75%, 1/9/07 5,700 5,700
MONEY MARKET FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) Orange County Development Revenue VRDB, Series 1985-Z, Bear Brand Apartments Project (FHLMC LOC), 3.72%, 1/9/07 $ 3,700 $ 3,700 Orange County Sanitation District COPS, 3.75%, 1/2/07 6,650 6,650 Oxnard Financing Authority Lease Revenue VRDB, Civic Center Phase 2 Project (AMBAC Insured), 3.76%, 1/9/07 10,000 10,000 Palmdale Community Redevelopment Agency SFM Revenue Bonds, MERLOTS Series 2000-TTT (AMT) (U.S. Treasuries Escrowed), 3.98%, 1/9/07 5,885 5,886 Pittsburg Redevelopment VRDB, Tax Allocation, Series 2004A, Los Medanos Community (AMBAC Insured), 3.85%, 1/2/07 2,185 2,185 Pleasanton COPS VRDB, Assisted Living Facilities (Citibank N.A. LOC), 3.78%, 1/9/07 8,800 8,800 Riverside County Communication Facilities District Number 88-4 VRDB, Special Tax Refunding Bonds (Comerica Bank LOC), 3.76%, 1/9/07 1,950 1,950 Roaring Fork Municipal Products Revenue Bonds Trust Receipts (AMT) (FNMA Gtd.), (1) 3.95%, 1/9/07 7,100 7,100 Sacramento County Housing Authority Multifamily Revenue Refunding VRDB, Series 2001B (AMT), California Place Apartments (FNMA Gtd.), 3.88%, 1/9/07 4,500 4,500 Sacramento County Housing Authority Multifamily Revenue Refunding VRDB, Series 2001D (AMT), Oak Valley Apartments (FNMA Gtd.), 3.88%, 1/9/07 4,000 4,000 Sacramento County Housing Authority Multifamily Revenue Refunding VRDB, Series 2004C-2, Seasons of Winter (FHLMC Gtd.), 3.73%, 1/9/07 3,100 3,100 Sacramento County Housing Authority Mulitfamily Revenue VRDB, Series 2005D (AMT), Cascades (FNMA Gtd.), 3.87%, 1/9/07 1,200 1,200 Sacramento County Sanitation District Financing Authority Revenue Bonds, MERLOTS Series 2000-SSS (Colld. by U.S. Government Securities), (1) 3.93%, 1/9/07 7,500 7,500 Sacramento County TRANS, 4.50%, 7/17/07 18,000 18,076 Sacramento-Yolo Port District Revenue Refunding VRDB, Series 1997A (AMT), California Free Trade Zone Project (Wells Fargo Bank N.A. LOC), 3.83%, 1/9/07 3,500 3,500 San Bernardino County Housing Authority Multifamily Revenue Refunding VRDB, Series 1993, Monterey Villas Apartments Project (FHLB of San Francisco LOC), 3.81%, 1/9/07 1,600 1,600 San Bernardino County Multifamily Revenue Refunding VRDB, Series 2004A, Housing Mortgage Mountain View (FNMA LOC), 3.75%, 1/9/07 5,150 5,150 San Diego Housing Authority Multifamily Revenue VRDB, Series 2000A (AMT), Stratton Apartments Project (FNMA Gtd.), 3.87%, 1/9/07 3,300 3,300
MONEY MARKET FUNDS 8 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) San Francisco City and County Airports Commission International Airport (AMT), Merrill P-Floats PA-661R-A (FSA Corp. Insured), (1) 3.97%, 1/9/07 $ 6,905 $ 6,905 San Francisco City and County Finance Corp. Lease Revenue Bonds, Series 2000-1, Moscone Center Expansion Project (AMBAC Insured), 3.80%, 1/9/07 3,000 3,000 San Francisco City and County G.O. Revenue VRDB, Series 2005D, Laguna Honda Hospital (MBIA Insured), 3.71%, 1/9/07 2,950 2,950 San Francisco City and County Redevelopment Agency Multifamily Housing Revenue Bonds, Series 2005A-2 (AMT), Ceatrice Apartments Project (National City Bank Cleveland LOC), 3.92%, 1/9/07 2,250 2,250 San Francisco City and County Redevelopment Agency Multifamily Housing Revenue VRDB, Series 1985A, Bayside Village Project (JPMorgan Chase Bank LOC), 3.77%, 1/9/07 8,400 8,400 San Fransicso City and County Redevelopment Agency Multifamily Housing Revenue VRDB, Series 1985B, Bayside Village Project (JPMorgan Chase Bank LOC), 3.77%, 1/9/07 9,650 9,650 San Francisco City and County Redevelopment Agency Multifamily Housing Revenue VRDB, Series 2001B (AMT), Ocean Beach Apartments Project (Citibank N.A. LOC), 3.91%, 1/9/07 1,200 1,200 San Francisco City and County Redevelopment Agency Multifamily Housing Revenue VRDB, Series 2002A (AMT), Leland Polk Senior Community (Citibank N.A. LOC), 3.93%, 1/9/07 4,190 4,190 San Jose Multifamily Housing Revenue VRDB, Series 2004A (AMT), Trestles Apartments Project (FHLMC LOC), 3.93%, 1/9/07 3,675 3,675 San Jose Multifamily Housing Revenue VRDB, Series 2005 (AMT), Raintree Apartments Project (FHLMC LOC), 3.93%, 1/9/07 8,350 8,350 Santa Clara County Housing Authority Multifamily Revenue VRDB, Series A, Fountains Project (Citibank N.A. LOC), 3.78%, 1/9/07 2,795 2,795 Santa Cruz Redevelopment Agency Multifamily Housing Revenue VRDB, Series 2002A (AMT), Shaffer Road Apartments Project (FNMA LOC), 3.87%, 1/9/07 10,000 10,000 Sequoia Unified High School District G.O. Bonds, Series 2003-2, ABN AMRO Munitops Certificate Trust (MBIA Insured), (1) 3.94%, 1/9/07 1,545 1,545 Simi Valley Unified School District G.O., Series 2004-26, ABN AMRO Munitops Certificate Trust (MBIA Insured), (1) 3.94%, 1/9/07 6,995 6,995 Tahoe Forest Hospital District Revenue VRDB, Series 2002, Pacer County Health Facility (U.S. Bank N.A. LOC), 3.85%, 1/2/07 500 500 Tulare County Local Healthcare District Revenue VRDB, Series 2002 (U.S. Bank N.A. LOC), 3.85%, 1/2/07 850 850 Turlock Health Facility COPS VRDB, Series B, Emanual Medical Center, Inc. (U.S. Bank N.A. LOC), 3.77%, 1/9/07 550 550 Union County Multifamily Revenue Refunding VRDB, Series 1999A, Mission Sierra (FNMA Colld.), 3.75%, 1/9/07 100 100
MONEY MARKET FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 99.7% - CONTINUED CALIFORNIA - 91.9% - (CONTINUED) Watereuse Finance Authority Revenue VRDB (FSA Corp. Insured), 3.84%, 1/9/07 $ 6,320 $ 6,320 Western Placer Unified School District COPS, Series 2003 (Bank of America N.A. LOC), 3.78%, 1/9/07 5,150 5,150 Windsor Multifamily Housing Revenue VRDB, Series 1995A (AMT), Oakmont at Windsor Project (FNMA LOC), 3.87%, 1/9/07 4,015 4,015 ------------- 1,170,504 ------------- PUERTO RICO - 7.8% Commonwealth of Puerto Rico, TRANS, Series 2007 (Bank of Nova Scotia LOC), 4.50%, 7/30/07 47,600 47,867 Puerto Rico Electric Power Authority Revenue Bonds, Citigroup ROCS-RR-II-R-637CE (Citigroup, Inc. Gtd.), 3.96%, 1/9/07 30,000 30,000 Puerto Rico Highway and Transportation Revenue Bonds, Citigroup ROCS-RR-II-R-636CE (Citibank N.A. Gtd.), (1) 3.93%, 1/9/07 21,000 21,000 ------------- 98,867 ------------- TOTAL MUNICIPAL INVESTMENTS (COST $1,269,371) 1,269,371 ------------- TOTAL INVESTMENTS - 99.7% (COST $1,269,371) (3) 1,269,371 ------------- Other Assets less Liabilities - 0.3% 3,763 ------------- NET ASSETS - 100.0% $ 1,273,134 -------------
(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. (2) Restricted security that has been deemed illiquid. At December 31, 2006, the value of this restricted illiquid security amounted to approximately $5,790,000 or 0.5% of net assets. Additional information on this restricted illiquid security is as follows:
ACQUISITION ACQUISITION COST SECURITY DATE (000S) -------- ----------- ----------- Golden West Schools Financing Authority G.O. (CA), 3.93%, 1/9/07 7/8/05 $5,790
(3) The cost for federal income tax purposes was $1,269,371. At December 31, 2006, the industry sectors for the California Municipal Money Market Fund were:
INDUSTRY SECTOR % OF NET ASSETS --------------- --------------- Administration of Environment and Housing and Real Estate 9.0% Air, Water Services and Solid Waste Management 7.7 Electric Services, Gas and Combined Utilities 11.3 Executive, Legislative and General Government 31.6 Health Services and Residential Care 7.0 Housing Programs 6.9 Urban and Community Development and Social Services 10.6 All other sectors less than 5% 15.9 ----- Total 100.0%
MONEY MARKET FUNDS 10 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS ABBREVIATIONS AND OTHER INFORMATION CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of the net assets. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS ABAG Association of Bay Area Governments AMBAC American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax Colld. Collateralized COPS Certificates of Participation FGIC Financial Guaranty Insurance Corporation FHLB Federal Home Loan Bank FHLMC Freddie Mac FNMA Federal National Mortgage Association FSA Financial Security Assurance G.O. General Obligation Gtd. Guaranteed IDA Industrial Development Authority IDR Industrial Development Revenue LOC Letter of Credit MBIA Municipal Bond Insurance Association MERLOTS Municipal Exempt Receipts Liquidity Optional Tender PCR Pollution Control Revenue P-Floats Puttable Floating Rate Securities RANS Revenue Anticipation Notes ROCS Reset Option Certificates SFM Single Family Mortgage Soc Gen Societe Generale TRANS Tax and Revenue Anticipation Notes MONEY MARKET FUNDS 11 NORTHERN FUNDS QUARTERLY REPORT TSB Trustee Savings Bank MONEY MARKET FUNDS ABBREVIATIONS AND OTHER INFORMATION CALIFORNIA MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) VRDB Variable Rate Demand Bonds XLCA XL Capital Assurance MONEY MARKET FUNDS 12 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- ASSET-BACKED NOTES - 4.7% AUTO RECEIVABLES - 1.3% Capital One Prime Auto Receivables Trust, Series 2006-2, Class A1, 5.33%, 10/15/07 $ 14,018 $ 14,018 Ford Credit Auto Owner Trust, Series 2006-B, Class A1, (1) 5.43%, 9/15/07 16,383 16,383 Ford Credit Auto Owner Trust, Series 2006-C, Class A1, (1) 5.36%, 12/15/07 64,549 64,549 Honda Auto Receivables Owner Trust, Series 2006-2, Class A1, 5.43%, 8/21/07 3,632 3,632 Nissan Auto Receivables Owner Trust, Series 2006-B, Class A1, 5.08%, 5/15/07 904 904 Nissan Auto Receivables Owner Trust, Series 2006-C, Class A1, 5.49%, 8/15/07 12,152 12,152 USAA Auto Owner Trust, FRN, Series 2006-4, Class A1, 5.34%, 12/13/07 32,053 32,053 Wachovia Auto Loan Owner Trust, Series 2006-1, Class A1, (1) 5.39%, 10/19/07 12,400 12,400 ------------- 156,091 ------------- INTERNATIONAL RECEIVABLES - 3.1% Granite Master Issuer PLC, FRN, Series 2006-3, Class A4, 5.33%, 1/22/07 78,000 78,000 Holmes Financing PLC, FRN, Series 10A, Class 1A, (1) 5.32%, 1/16/07 25,000 25,000 Holmes Master Issuer PLC, FRN, Series 2006-1A, Class 1A, (1) 5.33%, 1/16/07 35,000 35,000 Interstar Millennium Trust, FRN, Series 2006-2GA, Class A1, (1) 5.33%, 1/29/07 42,821 42,821 Mound Financing PLC, FRN, Series 5A, Class 1A, (1) 5.32%, 1/8/07 25,000 25,000 Paragon Mortgages PLC, FRN, Series 12A, Class A1, (1) 5.33%, 1/16/07 34,326 34,326 Paragon Mortgages PLC, FRN, Series 13A, Class A1, (1) 5.34%, 1/16/07 30,000 30,000
MONEY MARKET FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- ASSET-BACKED NOTES - 4.7% - CONTINUED INTERNATIONAL RECEIVABLES - 3.1% - (CONTINUED) Permanent Financing PLC, FRN, Series 9A, Class 1A, (1) 5.32%, 1/10/07 $ 35,000 $ 35,000 Permanent Financing PLC, FRN, Series 2006-1, Class 1A, 5.33%, 1/16/07 50,000 50,000 ------------- 355,147 ------------- OTHER RECEIVABLES - 0.3% Caterpillar Financial Asset Trust, Series 2006-A, Class A1, 5.45%, 6/25/07 8,504 8,504 CIT Equipment Collateral Trust, Series 2006-VT1, Class A1, 4.99%, 3/20/07 2,897 2,897 CNH Equipment Trust, Series 2006-A, Class A1, 4.99%, 4/5/07 4,182 4,182 CNH Equipment Trust, Series 2006-B, Class A1, 5.39%, 10/5/07 19,068 19,068 ------------- 34,651 ------------- TOTAL ASSET-BACKED NOTES (COST $545,889) 545,889 ------------- CERTIFICATES OF DEPOSIT - 19.8% DOMESTIC DEPOSITORY INSTITUTIONS - 2.0% American Express Centurion Bank, 5.34%, 6/19/07 45,000 45,000 Washington Mutual Bank, FA, Stockton, California, 5.75%, 7/5/07 9,600 9,615 Washington Mutual Bank, FRCD, 5.36%, 2/20/07 57,000 57,000 Washington Mutual Bank, FRCD, 5.35%, 2/26/07 60,000 60,000 Wells Fargo Bank N.A., San Francisco, California, 4.79%, 1/18/07 27,000 27,000 Wells Fargo Bank N.A., San Francisco, California, 4.87%, 1/31/07 28,000 28,000 ------------- 226,615 ------------- FOREIGN DEPOSITORY INSTITUTIONS - 17.8% Barclays Bank, London Branch, 5.12%, 1/29/07 80,000 80,000 5.14%, 3/14/07 25,000 25,000 5.38%, 5/2/07 40,000 40,000 Barclays Bank, New York Branch, 5.09%, 2/26/07 45,000 45,000
MONEY MARKET FUNDS 2 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- CERTIFICATES OF DEPOSIT - 19.8% - CONTINUED FOREIGN DEPOSITORY INSTITUTIONS - 17.8% - (CONTINUED) BNP Paribas, London Branch, 4.91%, 2/5/07 $ 15,000 $ 15,000 5.11%, 3/7/07 47,000 47,000 5.41%, 5/21/07 78,000 78,000 5.30%, 7/10/07 25,000 25,000 5.26%, 9/17/07 40,000 40,000 5.30%, 9/21/07 68,000 68,000 CALYON, London Branch, 4.75%, 1/8/07 40,000 40,000 Canadian Imperial Bank of Commerce, New York Branch, 5.38%, 6/4/07 25,000 25,000 5.35%, 7/17/07 40,000 40,000 Credit Agricole, London Branch, 5.10%, 3/6/07 32,000 32,000 5.38%, 5/2/07 40,000 40,000 5.37%, 5/25/07 40,000 40,000 5.35%, 6/22/07 44,000 44,000 5.30%, 7/10/07 35,000 35,000 Credit Suisse First Boston, New York Branch, 5.00%, 2/8/07 25,000 25,000 5.34%, 4/19/07 40,000 40,000 5.40%, 6/4/07 20,000 20,000 Deutsche Bank, London Branch, 5.34%, 1/1/07, FRCD 80,000 80,000 4.93%, 2/5/07 10,000 10,000 5.42%, 5/21/07 43,000 43,000 5.36%, 10/19/07 40,000 40,000 Deutsche Bank, New York Branch, 4.80%, 1/29/07 40,000 40,000 5.13%, 3/12/07 12,000 12,000 5.25%, 10/3/07 35,000 34,980 Dexia Credit Local, New York Branch, 4.80%, 1/16/07 45,000 45,000 HBOS Treasury Services, London Branch, 5.31%, 3/27/07 35,000 35,000 5.65%, 6/26/07 35,000 35,000 5.41%, 9/20/07 65,000 65,000 HBOS Treasury Services, New York Branch, 5.38%, 6/1/07 22,000 22,000 5.22%, 12/17/07 43,000 43,000 Monte Dei Paschi Di Seina, London Branch, 5.33%, 2/22/07 50,000 50,000 National Australia Bank, London Branch, 5.05%, 2/16/07 15,000 15,000 Nordea Bank Finland, New York Branch, 4.82%, 1/29/07 25,000 25,000 5.15%, 3/14/07 20,000 20,000
MONEY MARKET FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- CERTIFICATES OF DEPOSIT - 19.8% - CONTINUED FOREIGN DEPOSITORY INSTITUTIONS - 17.8% - (CONTINUED) Royal Bank of Canada, New York Branch, 5.37%, 10/25/07 $ 51,000 $ 51,000 Royal Bank of Scotland, New York Branch, FRCD, 5.29%, 1/8/07 40,000 39,984 Societe Generale, London Branch, 5.36%, 5/11/07 23,500 23,500 5.36%, 7/17/07 30,000 30,000 5.26%, 9/17/07 45,000 45,000 5.32%, 10/2/07 40,000 40,000 5.30%, 1/2/08 30,000 30,000 Societe Generale, New York Branch, FRCD, 5.39%, 1/1/07 45,000 45,002 Svenska Handelsbanken, Inc., New York Branch, 4.80%, 1/16/07 20,000 20,000 5.04%, 2/16/07 50,000 50,000 Toronto Dominion Bank, New York Branch, 5.41%, 6/4/07 27,000 27,000 5.54%, 6/18/07 40,000 40,000 5.71%, 7/9/07 30,000 30,000 UBS AG, Stamford Branch, 4.96%, 2/7/07 40,000 40,000 Unicredito, New York Branch, 5.43%, 2/28/07 60,000 60,000 5.40%, 3/14/07 20,000 20,000 ------------- 2,050,466 ------------- TOTAL CERTIFICATES OF DEPOSIT (COST $2,277,081) 2,277,081 ------------- COMMERCIAL PAPER - 31.8% AUTO RECEIVABLES - 2.9% FCAR1 Owner Trust, 5.28%, 1/16/07 20,000 19,956 5.35%, 2/2/07 25,000 24,881 5.26%, 2/15/07 40,000 39,737 Ford Credit Floorplan Master Owner Trust A, Motown Funding LLC, Series 2002, (1) 5.30%, 1/3/07 14,830 14,826 5.31%, 1/11/07 53,000 52,922 5.31%, 1/18/07 49,285 49,161 5.30%, 2/12/07 12,715 12,636 5.32%, 2/20/07 40,000 39,704 New Center Asset Trust, 5.28%, 1/2/07 57,000 56,992 5.33%, 1/23/07 25,000 24,918 ------------- 335,733 -------------
MONEY MARKET FUNDS 4 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- COMMERCIAL PAPER - 31.8% - CONTINUED BANK HOLDING COMPANIES - 0.2% Citigroup Global Markets Holdings, Inc., 5.30%, 1/10/07 $ 15,000 $ 14,980 5.28%, 1/16/07 10,000 9,978 ------------- 24,958 ------------- COLLATERALIZED LOAN OBLIGATIONS - 0.3% Simba Funding Corp., 5.28%, 3/22/07 40,000 39,531 ------------- COMMUNICATIONS - 0.4% AT&T, Inc., 5.35%, 1/2/07 50,000 49,993 ------------- CREDIT CARD MASTER TRUST - 1.0% BA Credit Card Trust, Emerald Certificates, (1) 5.29%, 2/23/07 20,000 19,844 Capital One Multi Execution Trust, Nova Notes, (1) 5.28%, 1/3/07 25,000 24,993 Citibank Credit Card Master Trust, Dakota Certificates, 5.27%, 1/12/07 19,346 19,315 5.27%, 1/17/07 50,000 49,883 ------------- 114,035 ------------- MULTI-SELLER CONDUITS - 18.2% Amstel Funding Corp., 5.18%, 3/26/07 70,000 69,155 5.17%, 3/28/07 40,000 39,506 5.21%, 4/16/07 45,000 44,316 5.18%, 5/25/07 43,000 42,110 5.20%, 6/20/07 30,000 29,264 Amsterdam Funding, 5.27%, 1/4/07 10,000 9,996 Atlantic Asset Securitization Corp., 5.27%, 1/2/07 (1) 20,000 19,997 5.29%, 1/12/07 (1) 20,156 20,124 5.30%, 1/18/07 30,000 29,925 Cedar Springs Capital Co., 5.28%, 1/10/07 30,000 29,960 5.27%, 2/16/07 35,000 34,764 5.27%, 2/26/07 20,000 19,836 5.27%, 2/27/07 30,000 29,750 Charta Corp., 5.27%, 1/10/07 15,000 14,980 5.28%, 1/22/07 15,000 14,954 5.27%, 1/23/07 20,000 19,936 Clipper Receivables Corp., 5.28%, 1/22/07 25,000 24,923 Concord Minuteman Capital Co., (1) 5.29%, 2/21/07 9,000 8,933
MONEY MARKET FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- COMMERCIAL PAPER - 31.8% - CONTINUED MULTI-SELLER CONDUITS - 18.2% - (CONTINUED) Corporate Receivables Corp., 5.29%, 2/15/07 $ 75,000 $ 74,504 Crown Point Capital Co., (1) 5.30%, 1/9/07, FRCP 50,000 49,998 5.24%, 1/17/07 63,000 62,853 5.30%, 1/22/07, FRCP 35,000 34,999 5.30%, 3/8/07, FRCP 40,000 39,997 Gemini Securitization, 5.27%, 1/22/07 15,000 14,954 5.26%, 3/14/07 10,000 9,895 5.27%, 3/16/07 20,000 19,784 5.28%, 3/21/07 40,000 39,537 George Street Finance LLC, (1) 5.28%, 1/16/07 18,695 18,654 5.33%, 1/17/07 22,687 22,633 5.27%, 3/13/07 20,000 19,792 Gotham Funding Corp., (1) 5.30%, 1/9/07 25,000 24,971 5.34%, 1/10/07 35,000 34,953 5.32%, 1/18/07 20,000 19,950 Jupiter Securitization Corp., 5.28%, 1/12/07 30,000 29,952 5.33%, 1/16/07 20,000 19,956 Kitty Hawk Funding Corp., 5.28%, 1/5/07 20,000 19,988 5.33%, 1/18/07 20,000 19,950 Legacy Capital LLC, (1) 5.30%, 1/25/07, FRCP 20,000 19,998 5.21%, 5/18/07 20,000 19,604 Lexington Parker Capital, 5.30%, 1/5/07, FRCP 15,000 15,000 5.32%, 1/5/07, FRCP 143,000 142,995 5.38%, 1/5/07 49,000 48,971 5.30%, 1/10/07, FRCP 80,000 80,000 5.30%, 1/19/07, FRCP 20,000 20,000 5.29%, 2/21/07 30,000 29,775 Liberty Street Funding Co., 5.32%, 1/22/07 40,000 39,876 Park Avenue Receivables, (1) 5.33%, 1/22/07 25,000 24,922 Ranger Funding Co. LLC, 5.28%, 1/12/07 15,000 14,976 Sheffield Receivables Corp., 5.28%, 1/10/07 80,000 79,894 5.27%, 1/23/07 20,000 19,936 5.27%, 1/29/07 90,000 89,631
MONEY MARKET FUNDS 6 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- COMMERCIAL PAPER - 31.8% - CONTINUED MULTI-SELLER CONDUITS - 18.2% - (CONTINUED) Thames Asset Global Securitization, Number One, 5.26%, 1/5/07 $ 35,000 $ 34,980 5.27%, 1/8/07 40,000 39,959 Thunder Bay Funding, Inc., 5.28%, 1/5/07 25,000 24,985 5.35%, 1/16/07 (1) 25,000 24,944 Tulip Funding Corp., 5.32%, 1/18/07 25,000 24,937 Variable Funding Capital, FRCP, 5.31%, 1/2/07 50,000 50,000 Victory Receivables Corp., 5.30%, 1/11/07 71,182 71,077 Yorktown Capital LLC, 5.28%, 1/3/07 50,000 49,985 5.29%, 2/15/07 20,000 19,868 5.30%, 2/22/07 30,000 29,770 ------------- 2,095,832 ------------- OTHER RECEIVABLES - 1.0% Thornburg Mortgage Capital Resources, (1) 5.33%, 1/8/07 10,000 9,990 5.32%, 1/9/07 30,000 29,965 5.33%, 1/16/07 35,000 34,922 5.33%, 1/19/07 40,000 39,893 ------------- 114,770 ------------- SINGLE SELLER CONDUITS - 0.3% Blue Spice LLC, 5.27%, 1/5/07 35,000 34,980 ------------- STRUCTURED INVESTMENT VEHICLES - 7.5% Aquifer Funding LLC, 5.31%, 1/5/07 44,000 43,974 Beta Finance, Inc., 5.17%, 3/29/07 50,000 49,375 Cancara Asset Securitization, Ltd., (1) 5.35%, 1/2/07 25,000 24,996 Cullinan Finance Corp., (1) 5.27%, 3/21/07 60,000 59,306 Deer Valley Funding LLC, 5.29%, 1/4/07 25,000 24,989 5.29%, 1/5/07 (1) 30,000 29,982 5.29%, 1/18/07 (1) 25,000 24,938 5.31%, 1/19/07 (1) 50,000 49,867 Five Finance Corp., (1) 5.27%, 2/13/07 20,000 19,874 Grampian Funding Ltd., 5.20%, 5/16/07 40,000 39,220 Links Finance LLC, 5.27%, 3/16/07 25,000 24,729
MONEY MARKET FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- COMMERCIAL PAPER - 31.8% - CONTINUED STRUCTURED INVESTMENT VEHICLES - 7.5% - (CONTINUED) North Sea Funding LLC, 5.27%, 2/27/07 $ 14,264 $ 14,145 Scaldis Capital LLC, 5.28%, 1/10/07 65,000 64,914 5.29%, 1/12/07 (1) 18,958 18,927 5.27%, 1/25/07 55,000 54,807 5.27%, 2/20/07 (1) 40,000 39,708 Sigma Finance, Inc., (1) 5.19%, 5/8/07 52,500 51,539 Solitaire Funding LLC, 5.27%, 3/15/07 29,970 29,650 Surrey Funding Corp., (1) 5.27%, 1/31/07 25,000 24,890 Whistlejacket Capital Ltd., (1) 5.29%, 1/11/07 25,000 24,963 5.28%, 1/22/07 25,000 24,923 5.28%, 1/24/07 15,000 14,949 White Pine Finance LLC, FRCP, (1) 5.31%, 1/3/07 25,000 24,999 5.31%, 1/8/07 10,000 10,000 5.31%, 1/12/07 20,000 19,999 5.31%, 1/22/07 50,000 49,999 ------------- 859,662 ------------- TOTAL COMMERCIAL PAPER (COST $3,669,494) 3,669,494 ------------- CORPORATE NOTES/BONDS - 20.2% BANK HOLDING COMPANIES - 0.8% HSBC Bank U.S.A., Inc., FRN, 5.35%, 1/16/07 25,000 25,000 Wachovia Bank, N.A., FRN, 5.36%, 3/1/07 35,000 35,010 Wachovia Corp., FRN, 5.45%, 1/22/07 36,000 36,021 ------------- 96,031 ------------- CHEMICAL AND ALLIED PRODUCTS - 0.3% Merck and Co., Inc., MTN, (1) 4.52%, 2/22/07 33,000 32,962 ------------- DOMESTIC DEPOSITORY INSTITUTIONS - 2.4% American Express Bank, FSB, FRN, 5.32%, 1/8/07 55,000 55,000 5.32%, 1/29/07 49,000 48,999 American Express Centurion, FRN, 5.43%, 1/16/07 20,000 20,018 5.34%, 1/22/07 20,000 20,001 Bank of America, N.A., FRN, 5.31%, 1/2/07 33,000 33,000 5.33%, 1/26/07 45,000 45,000
MONEY MARKET FUNDS 8 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- CORPORATE NOTES/BONDS - 20.2% - CONTINUED DOMESTIC DEPOSITORY INSTITUTIONS - 2.4% - (CONTINUED) National City Bank Cleveland, FRN, 5.35%, 1/4/07 $ 18,000 $ 18,000 Washington Mutual Bank, FRN, 5.42%, 2/16/07 35,000 35,018 ------------- 275,036 ------------- FOREIGN DEPOSITORY INSTITUTIONS - 3.8% Australia and New Zealand Banking Corp., FRN, (1) 5.35%, 1/8/07 25,000 25,000 5.35%, 1/23/07 21,000 21,000 5.34%, 3/5/07 70,000 70,000 Nordea Bank Finland, New York Branch, FRN, (1) 5.36%, 1/11/07 65,000 65,000 Royal Bank of Canada, FRN, 5.40%, 1/10/07 24,000 24,001 Royal Bank of Scotland PLC, FRN, (1) 5.34%, 1/22/07 55,000 55,000 UBS AG Stamford, 5.40%, 11/28/07 100,000 100,000 Westpac Banking Corp., FRN, 5.33%, 1/8/07 (1) 60,000 60,000 5.39%, 3/12/07 15,000 15,000 ------------- 435,001 ------------- INSURANCE CARRIERS - 1.6% Allstate Life Global Funding II, FRN, (1) 5.44%, 1/16/07 25,000 25,000 ASIF Global Financing XXXI, FRN, (1) 5.37%, 2/23/07 61,000 61,001 ING Verzekeringen, N.V., FRN, 5.29%, 1/4/07 55,000 55,000 MET Life Global Funding I, FRN, (1) 5.44%, 1/16/07 50,000 50,000 ------------- 191,001 ------------- NON-DEPOSITORY PERSONAL CREDIT - 2.7% American Express Credit Corp., FRN, 5.31%, 1/9/07 60,000 60,000 General Electric Capital Corp., FRN, 5.48%, 1/9/07 35,000 35,007 5.31%, 1/24/07 65,000 65,000 Household Finance Corp., FRN, 5.41%, 3/1/07 15,000 15,003 HSBC Finance Corp., FRN, 5.34%, 1/8/07 30,000 30,000 5.38%, 1/24/07 25,000 25,000 5.41%, 2/28/07 17,000 17,002 SLM Corp., FRN, (1) 5.35%, 1/12/07 64,000 64,000 ------------- 311,012 -------------
MONEY MARKET FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- CORPORATE NOTES/BONDS - 20.2% - CONTINUED PAPER AND ALLIED PRODUCTS - 0.3% Kimberly-Clark Corp., (1) 5.26%, 12/19/07 $ 30,000 $ 30,000 SECURITY AND COMMODITY BROKERS - 3.1% Bear Stearns Co., Inc., FRN, 5.43%, 1/5/07 20,000 20,000 Lehman Brothers Holdings, FRN, 5.50%, 1/22/07 80,000 80,000 5.29%, 2/26/07 22,000 22,000 Merrill Lynch & Co., FRN, MTN, 5.41%, 1/4/07 40,000 40,000 5.60%, 1/11/07 35,000 35,010 5.33%, 1/24/07 25,000 25,000 5.32%, 1/29/07 20,000 20,000 5.34%, 3/1/07 5,000 5,000 Morgan Stanley, FRN, 5.41%, 1/16/07 22,000 22,000 5.44%, 1/29/07 92,800 92,800 ------------- 361,810 ------------- STRUCTURED INVESTMENT VEHICLES - 4.8% Beta Finance, Inc., FRN, MTN, (1) 5.36%, 1/18/07 30,000 30,000 5.36%, 1/22/07 10,000 10,001 Cullinan Finance Corp., MTN, 5.31%, 1/16/07, FRN (1) 13,000 12,999 5.31%, 1/25/07, FRN (1) 28,000 27,997 5.34%, 1/25/07, FRN (1) 25,000 24,999 5.31%, 3/12/07, FRN (1) 48,000 47,991 5.34%, 10/10/07 (1) 40,000 40,000 Five Finance, Inc., FRN, (1) 5.30%, 1/16/07 20,000 19,999 5.33%, 3/15/07 35,000 34,997 Links Finance LLC, FRN, MTN, (1) 5.33%, 1/8/07 17,000 16,999 5.33%, 1/10/07 20,000 19,999 5.33%, 1/11/07 21,000 21,000 5.32%, 1/16/07 75,000 74,997 5.31%, 1/26/07 22,000 21,999 Sigma Finance, Inc., 5.35%, 1/16/07, FRN (1) 35,000 35,001 5.45%, 10/29/07 50,000 50,000 Whistlejacket Capital LLC, FRN, (1) 5.35%, 1/16/07 20,000 20,001 5.34%, 1/22/07 25,000 25,001 White Pine Finance LLC, FRN, (1) 5.31%, 1/25/07 15,000 14,998 ------------- 548,978 -------------
MONEY MARKET FUNDS 10 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- CORPORATE NOTES/BONDS - 20.2% - CONTINUED TRANSPORTATION EQUIPMENT - 0.4% American Honda Finance, FRN, (1) 5.34%, 1/26/07 $ 20,000 $ 20,000 5.38%, 3/7/07 25,000 25,002 ------------- 45,002 ------------- TOTAL CORPORATE NOTES/BONDS (COST $2,326,833) 2,326,833 ------------- EURODOLLAR TIME DEPOSITS - 11.9% DOMESTIC DEPOSITORY INSTITUTIONS - 1.1% Citibank, Nassau, 5.34%, 1/18/07 75,000 75,000 Citibank, Toronto, Canada, 5.34%, 3/5/07 50,000 50,000 ------------- 125,000 ------------- FOREIGN DEPOSITORY INSTITUTIONS - 10.8% Allied Irish Banks, Dublin, 5.42%, 2/20/07 37,000 37,000 Banco Santander Centrale, Madrid, 5.34%, 4/4/07 20,000 20,000 Credit Suisse First Boston, Grand Cayman, 5.38%, 1/2/07 100,000 100,000 Danske Bank, Copenhagen, Denmark, 5.36%, 1/2/07 100,000 100,000 Danske Bank, London, 5.34%, 1/2/07 190,000 190,000 Dexia Bank Belgium, Brussels, 5.38%, 1/2/07 170,000 170,000 Dexia Bank Belgium, London, 5.32%, 1/5/07 70,000 70,000 ING Bank, Amsterdam, 5.29%, 1/2/07 115,964 115,964 KBC Bank, Paris, 5.33%, 5/17/07 65,000 65,000 Lloyds Bank, London, 5.30%, 1/4/07 85,000 85,000 National Bank of Canada, Montreal, 5.34%, 3/29/07 100,000 100,000 Rabobank Nederland, Grand Cayman, 5.25%, 1/2/07 17,088 17,088 UBS AG, Grand Cayman, 5.27%, 1/2/07 175,000 175,000 ------------- 1,245,052 ------------- TOTAL EURODOLLAR TIME DEPOSITS (COST $1,370,052) 1,370,052 ------------- MUNICIPAL INVESTMENTS - 0.8% ADMINISTRATION OF ENVIRONMENTAL AND HOUSING PROGRAMS - 0.2% Florida Housing Financial Corp., Taxable Revenue Bonds, Series 2002A, Affordable Housing (AMBAC Insured), 5.35%, 1/9/07 4,800 4,800
MONEY MARKET FUNDS 11 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 0.8% - CONTINUED ADMINISTRATION OF ENVIRONMENTAL AND HOUSING PROGRAMS - 0.2% - (CONTINUED) State of Texas G.O. Taxable, Veterans' Land Refunding Bonds, Series 2000, 5.32%, 1/9/07 $ 14,960 $ 14,960 State of Texas G.O. Taxable, VRDB, Veterans' Land Refunding Bonds, Series 2002, 5.32%, 1/9/07 9,140 9,140 ------------- 28,900 ------------- EXECUTIVE, LEGISLATIVE AND GENERAL GOVERNMENT - 0.2% Cook County, Illinois, G.O. Taxable Bonds, Series 2002A, 5.37%, 1/9/07 15,500 15,500 Cook County, Illinois, G.O. Taxable Bonds, Series 2004D, 5.37%, 1/9/07 10,000 10,000 ------------- 25,500 ------------- MISCELLANEOUS RETAIL - 0.1% Macon-Bibb County, Georgia, IDR, Taxable Revenue Bonds, Bass Pro Outdoor World LLC (General Electric Capital Corp. LOC), (1) 5.32%, 1/9/07 11,000 11,000 ------------- STUDENT LOANS - 0.1% Illinois Student Assistance Comission Student Loan VRDB Taxable, Series D (Bank of America N.A. LOC), 5.37%, 1/9/07 11,000 11,000 ------------- WATER SERVICES - 0.2% Los Angeles, California, Department of Water and Power Waterworks Taxable VRDB, Series B-1, 5.36%, 1/9/07 18,000 18,000 ------------- TOTAL MUNICIPAL INVESTMENTS (COST $94,400) 94,400 ------------- U.S. GOVERNMENT AGENCIES - 0.5% (2) FREDDIE MAC - 0.5% FHLMC Notes, 4.76%, 2/9/07 10,000 10,000 4.25%, 4/5/07 10,000 9,979 5.35%, 12/19/07 35,000 35,000 ------------- 54,979 ------------- TOTAL U.S. GOVERNMENT AGENCIES (COST $54,979) 54,979 ------------- INVESTMENTS, AT AMORTIZED COST ($10,338,728) 10,338,728 -------------
MONEY MARKET FUNDS 12 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- REPURCHASE AGREEMENTS - 10.7% (COLLD. AT A MINIMUM OF %) (3) JOINT REPURCHASE AGREEMENTS - 1.2% Bank of America Securities LLC, dated 12/29/06, repurchase price $46,081 4.60%, 1/2/07 $ 46,058 $ 46,058 Morgan Stanley & Co., Inc., dated 12/29/06, repurchase price $30,722 4.80%, 1/2/07 30,705 30,705 Societe Generale - New York Branch, dated 12/29/06, repurchase price $15,361 4.85%, 1/2/07 15,353 15,353 UBS Securities LLC, dated 12/29/06, repurchase price $46,083 4.85%, 1/2/07 46,058 46,058 ------------- 138,174 ------------- (COLLD. AT A MINIMUM OF %) (4) REPURCHASE AGREEMENTS - 9.5% Bank of America N.A., dated 12/29/06, repurchase price $570,338 5.33%, 1/2/07 570,000 570,000 Citigroup Global Markets, Inc., dated 12/29/06, repurchase price $230,137 5.35%, 1/2/07 230,000 230,000 Goldman Sachs & Co., Inc., dated 12/29/06, repurchase price $250,148 5.34%, 1/2/07 250,000 250,000 Goldman Sachs & Co., Inc., dated 12/29/06, repurchase price $50,030 5.35%, 1/2/07 50,000 50,000 ------------- 1,100,000 ------------- TOTAL REPURCHASE AGREEMENTS (COST $1,238,174) 1,238,174 ------------- TOTAL INVESTMENTS - 100.4% (COST $11,576,902) (5) 11,576,902 ------------- Liabilities less Other Assets - (0.4)% (48,080) ------------- NET ASSETS - 100.0% $11,528,822 -------------
MONEY MARKET FUNDS 13 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) (1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. (2) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. (3) The nature and terms of the collateral received for the joint repurchase agreements are as follows:
NAME COUPON RATES MATURITY DATES ---- -------------- ------------------ U.S. Treasury Bonds 2.00% - 10.38% 4/15/29 - 11/15/12 U.S. Treasury Notes 2.00% - 4.25% 1/15/10 - 1/15/14
(4) The nature and terms of the collateral received for the repurchase agreements are as follows:
NAME COUPON RATES MATURITY DATES ---- ------------- ----------------- FHLMC 4.50% - 6.50% 10/1/18 - 12/1/36 FNMA 4.50% - 7.00% 5/1/18 - 9/1/36
(5) The cost for federal income tax purposes was $11,576,902. MONEY MARKET FUNDS 14 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS ABBREVIATIONS AND OTHER INFORMATION MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of the net assets. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities. Interest rates are reset daily and interest is payable monthly with respect to all joint repurchase agreements. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS AMBAC American Municipal Bond Assurance Corporation Colld. Collateralized FHLMC Freddie Mac FNMA Federal National Mortgage Association FRCD Floating Rate Certificates of Deposit FRCP Floating Rate Commerical Paper FRN Floating Rate Notes FSB Federal Savings Bank G.O. General Obligation IDR Industrial Development Revenue LOC Letter of Credit MTN Medium Term Notes VRDB Variable Rate Demand Bonds MONEY MARKET FUNDS 15 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS U.S. GOVERNMENT MONEY MARKET FUND DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- U.S. GOVERNMENT AGENCIES - 76.6% (1) FANNIE MAE - 27.0% FNMA Discount Notes, 5.20%, 1/2/07 $ 10,061 $ 10,059 4.61%, 1/26/07 37,974 37,852 5.15%, 2/1/07 5,000 4,978 5.19%, 2/12/07 1,927 1,915 5.19%, 2/23/07 1,932 1,917 5.15%, 3/14/07 5,000 4,949 5.19%, 4/2/07 15,000 14,805 5.20%, 4/2/07 26,036 25,698 4.89%, 10/26/07 2,989 2,868 FNMA FRN, 5.23%, 3/21/07 28,000 27,996 FNMA Notes, 3.00%, 1/12/07 11,350 11,342 5.00%, 1/15/07 3,025 3,025 2.63%, 1/19/07 5,000 4,993 2.69%, 1/30/07 5,000 4,992 2.71%, 1/30/07 3,750 3,742 2.38%, 2/15/07 17,595 17,529 3.63%, 3/15/07 5,580 5,561 5.20%, 3/28/07 5,000 4,999 5.25%, 4/15/07 8,222 8,221 4.00%, 5/23/07 10,000 9,947 3.70%, 11/1/07 1,000 987 3.38%, 11/9/07 6,360 6,264 ------------- 214,639 ------------- FEDERAL FARM CREDIT BANK - 6.9% FFCB Bond, 1.88%, 1/16/07 8,100 8,088 FFCB FRN, 5.19%, 1/1/07 12,500 12,493 5.28%, 1/9/07 1,500 1,500 5.23%, 1/19/07 15,000 14,999 5.21%, 1/28/07 5,000 4,999 5.22%, 2/28/07 5,000 4,998 FFCB Discount Notes, 4.98%, 4/13/07 3,000 2,958 4.83%, 11/2/07 5,000 4,795 ------------- 54,830 ------------- FEDERAL HOME LOAN BANK - 20.1% FHLB Bonds, 2.63%, 5/15/07 20,000 19,811 3.13%, 8/15/07 4,500 4,441 4.75%, 8/17/07 5,705 5,688 4.63%, 10/24/07 1,500 1,492 FHLB Discount Notes, 5.18%, 1/3/07 10,000 9,997 5.11%, 1/5/07 20,000 19,989 5.02%, 1/25/07 1,445 1,440 5.10%, 2/27/07 12,419 12,319 5.15%, 3/28/07 10,000 9,877 FHLB FRN, 5.21%, 1/8/07 15,000 14,998 5.21%, 1/10/07 10,000 9,996 5.22%, 1/24/07 10,000 9,994 5.19%, 2/28/07 9,000 8,994
MONEY MARKET FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- U.S. GOVERNMENT AGENCIES - 76.6% (1) - CONTINUED FEDERAL HOME LOAN BANK - 20.1% - (CONTINUED) FHLB Notes, 2.63%, 2/16/07 $ 10,000 $ 9,969 3.38%, 2/23/07 1,015 1,012 4.00%, 4/25/07 8,000 7,969 4.50%, 5/11/07 2,755 2,747 4.88%, 5/15/07 8,545 8,534 ------------- 159,267 ------------- FREDDIE MAC - 17.3% FHLMC Discount Notes, 5.00%, 4/13/07 8,664 8,541 4.89%, 10/16/07 7,445 7,154 FHLMC FRN, 5.24%, 1/6/07 21,000 20,996 5.22%, 1/17/07 35,000 34,993 5.20%, 1/27/07 25,000 24,993 5.24%, 3/19/07 5,000 5,000 FHLMC Notes, 2.38%, 2/15/07 3,800 3,786 3.63%, 2/15/07 3,629 3,622 2.85%, 2/23/07 5,580 5,560 3.75%, 3/15/07 2,000 1,994 4.88%, 3/15/07 7,961 7,954 2.40%, 3/29/07 2,850 2,831 4.25%, 4/5/07 5,000 4,987 4.50%, 4/18/07 3,500 3,492 4.71%, 10/11/07 1,500 1,493 ------------- 137,396 ------------- OVERSEAS PRIVATE INVESTMENT CORP. - 5.3% Participation Certificates, Series 2003, 5.35%, 1/3/07 18,488 18,488 Participation Certificates, Series 518-2002-406-IG, 5.35%, 1/3/07 23,623 23,623 ------------- 42,111 ------------- TOTAL U.S. GOVERNMENT AGENCIES (COST $608,243) 608,243 ------------- REPURCHASE AGREEMENTS - 28.5% (COLLD. AT A MINIMUM OF 102%) (2) JOINT REPURCHASE AGREEMENTS - 7.6% Bank of America Securities LLC, dated 12/29/06, repurchase price $20,057 4.60%, 1/2/07 20,047 20,047 Morgan Stanley & Co., Inc., dated 12/29/06, repurchase price $13,372 4.80%, 1/2/07 13,364 13,364 Societe Generale - New York Branch, dated 12/29/06, repurchase price $6,686 4.85%, 1/2/07 6,682 6,682 UBS Securiites LLC, dated 12/29/06, repurchase price $20,058 4.85%, 1/2/07 20,047 20,047 ------------- 60,140 -------------
MONEY MARKET FUNDS 2 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- REPURCHASE AGREEMENTS - 28.5% - CONTINUED (COLLD. AT A MINIMUM OF 102%) (3) REPURCHASE AGREEMENTS - 20.9% Citigroup Global Markets, Inc., dated 12/29/06, repurchase price $25,015 5.35%, 1/2/07 $ 25,000 $ 25,000 Goldman Sachs & Co., dated 12/29/06, repurchase price $50,030 5.34%, 1/2/07 50,000 50,000 Lehman Brothers, Inc., dated 12/29/06, repurchase price $66,067 5.32%, 1/2/07 66,028 66,028 UBS Securities LLC, dated 12/29/06, repurchase price $25,015 5.33%, 1/2/07 25,000 25,000 ------------- 166,028 ------------- TOTAL REPURCHASE AGREEMENTS (COST $226,168) 226,168 ------------- TOTAL INVESTMENTS - 105.1% (COST $834,411) (4) 834,411 ------------- Liabilities less Other Assets - (5.1)% (40,626) ------------- NET ASSETS - 100.0% $ 793,785 -------------
(1) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. (2) The nature and terms of the collateral received for the joint repurchase agreements are as follows:
NAME COUPON RATES MATURITY DATES ---- ------------- ------------------ U.S. Treasury Bonds 2.00% - 10.38% 4/15/29 - 11/15/12 U.S. Treasury Notes 2.00% - 4.25% 1/15/10 - 1/15/14
(3) The nature and terms of the collateral received for the repurchase agreements are as follows:
NAME COUPON RATES MATURITY DATES ---- ------------- ---------------- FHLB 5.13% 4/16/08 FHLMC 0.00% 12/1/29 - 4/1/36 FNMA 4.50% - 5.50% 3/15/11 - 9/1/23
(4) The cost for federal income tax purposes was $834,411. MONEY MARKET FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS ABBREVIATIONS AND OTHER INFORMATION U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of the net assets. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities. Interest rates are reset daily and interest is payable monthly with respect to all joint repurchase agreements. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS Colld. Collateralized FFCB Federal Farm Credit Bank FHLB Federal Home Loan Bank FHLMC Freddie Mac FNMA Federal National Mortgage Association FRN Floating Rate Notes MONEY MARKET FUNDS 4 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS U.S. GOVERNMENT SELECT MONEY MARKET FUND DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- U.S. GOVERNMENT AGENCIES - 99.9% (1) FEDERAL FARM CREDIT BANK - 28.7% FFCB Discount Notes, 5.11%, 1/5/07 $ 8,000 $ 7,995 4.96%, 2/15/07 5,000 4,969 5.09%, 3/5/07 20,000 19,822 5.11%, 3/13/07 5,000 4,950 5.07%, 4/9/07 10,000 9,862 5.06%, 4/11/07 25,000 24,649 5.26%, 5/4/07 15,000 14,730 5.05%, 5/9/07 4,860 4,773 5.06%, 5/15/07 3,892 3,819 5.05%, 5/22/07 5,182 5,079 4.89%, 10/15/07 13,450 12,926 FFCB FRN, 5.19%, 1/1/07 30,000 29,982 5.21%, 1/1/07 40,000 40,000 5.23%, 1/4/07 10,000 10,000 5.23%, 1/19/07 25,000 24,998 5.21%, 1/24/07 10,000 10,000 5.21%, 1/28/07 20,000 19,997 5.22%, 2/28/07 10,000 9,995 5.25%, 3/19/07 25,000 24,998 ------------- 283,544 ------------- FEDERAL HOME LOAN BANK - 71.2% FHLB Bonds, 3.50%, 1/18/07 5,680 5,675 3.38%, 2/15/07 6,320 6,305 4.30%, 3/19/07 20,000 19,962 5.00%, 4/3/07 3,100 3,099 2.63%, 5/15/07 25,445 25,205 3.17%, 5/24/07 10,160 10,078 5.13%, 6/1/07 5,980 5,976 4.00%, 7/13/07 11,000 10,929 3.13%, 8/15/07 9,825 9,699 6.50%, 8/15/07 6,515 6,562 4.75%, 8/17/07 8,130 8,105 FHLB Discount Notes, 4.80%, 1/2/07 68,023 68,014 4.82%, 1/2/07 75,000 74,990 5.00%, 1/2/07 54,000 53,992 5.18%, 1/3/07 20,000 19,994 5.15%, 1/5/07 25,000 24,986 5.19%, 1/5/07 3,000 2,998 5.10%, 1/12/07 10,000 9,984 5.17%, 1/17/07 15,000 14,965 5.14%, 2/21/07 15,000 14,891 5.15%, 3/14/07 3,210 3,177 5.14%, 3/21/07 15,000 14,831 5.01%, 4/4/07 20,000 19,741 4.86%, 10/30/07 3,671 3,521 FHLB FRN, 5.21%, 1/8/07 35,000 34,995 5.21%, 1/10/07 25,000 24,989 5.22%, 1/24/07 15,000 14,992
MONEY MARKET FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS U.S. GOVERNMENT SELECT MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- U.S. GOVERNMENT AGENCIES - 99.9% (1) - CONTINUED FEDERAL HOME LOAN BANK - 71.2% - (CONTINUED) FHLB Notes, 4.63%, 1/30/07 $ 24,445 $ 24,442 4.71%, 2/9/07 25,000 25,000 2.88%, 2/15/07 15,555 15,507 2.63%, 2/16/07 30,000 29,906 3.38%, 2/23/07 13,800 13,761 5.00%, 3/20/07 13,420 13,414 4.00%, 4/25/07 26,000 25,888 4.25%, 5/8/07 3,725 3,712 4.50%, 5/11/07 16,810 16,767 4.88%, 5/15/07 19,600 19,572 3.63%, 6/20/07 3,545 3,519 ------------- 704,143 ------------- TOTAL U.S. GOVERNMENT AGENCIES (COST $987,687) 987,687 ------------- TOTAL INVESTMENTS - 99.9% (COST $987,687) (2) 987,687 ------------- Other Assets less Liabilities - 0.1% 532 ------------- NET ASSETS - 100.0% $ 988,219 -------------
(1) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. (2) The cost for federal income tax purposes was $987,687. MONEY MARKET FUNDS 2 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS ABBREVIATIONS AND OTHER INFORMATION U.S. GOVERNMENT SELECT MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of the net assets. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS FFCB Federal Farm Credit Bank FHLB Federal Home Loan Bank FRN Floating Rate Notes MONEY MARKET FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% ALABAMA - 3.1% Alabama HFA Revenue VRDB (AMT), Chapelridge Apartments Project (Wachovia Bank N.A. LOC), 4.06%, 1/9/07 $ 11,000 $ 11,000 Birmingham Medical Clinic Board Revenue Bonds, University of Alabama Health Services (SunTrust Bank LOC), 3.92%, 1/9/07 54,500 54,500 Calhoun County Economic Development Council Revenue Bonds (AMT), IPC Aerospace Corp. Project (Wachovia Bank N.A. LOC), 4.11%, 1/9/07 2,000 2,000 Columbia IDB PCR Refunding VRDB, Series 1999C, Alabama Power Company Project (Alabama Power Gtd.), 4.00%, 1/2/07 4,200 4,200 Columbia IDB Revenue VRDB, Series 1997 (AMT), Alabama Power Company Project, 4.01%, 1/9/07 15,000 15,000 Eutaw IDB PCR Refunding Bonds, Green County Project (Mississippi Power Co. Gtd.), 4.04%, 1/2/07 6,550 6,550 Homewood Educational Building Authority Revenue VRDB, Series 1999, Educational Facilities Samford University (AMBAC Insured), 3.95%, 1/2/07 1,180 1,180 Jefferson County Obligation School Warrant Revenue Bonds, Series 2005B (AMBAC Insured), 3.94%, 1/9/07 66,300 66,300 Mobile Alabama Special Care Facilities Financing Authority Revenue VRDB, Series 1999B, Ascension Health Credit, 3.88%, 1/9/07 9,700 9,700 Taylor-Ryan Improvement District Number 2, Variable Improvement Bonds, Series 2005 (Wachovia Bank N.A. LOC), 3.98%, 1/9/07 8,180 8,180 University of Alabama at Birmingham Hospital Revenue Bonds, Merrill Lynch P-Floats PA-1413-200 (Merrill Lynch & Co. Inc. Gtd.), (1) 3.97%, 1/9/07 10,000 10,000 ------------- 188,610 ------------- ALASKA - 0.2% Valdez Marine Terminal Revenue Refunding VRDB, Series 2003B, BP Pipelines Project (BP PLC Gtd.), 3.97%, 1/2/07 12,000 12,000 ------------- ARIZONA - 1.8% Arizona Health Facilities Authority Revenue VRDB, Series A, Banner Health (MBIA Insured), 3.89%, 1/9/07 88,195 88,195 Phoenix IDA Revenue VRDB, Series 2001, Valley of the Sun YMCA Project (Bank of America N.A. LOC), 4.00%, 1/2/07 4,800 4,800 Salt River Project Agricultural Improvement and Power District Revenue Bonds, Citigroup Eagle Series 2006-14, (1) 3.96%, 1/9/07 8,700 8,700 Salt River Project System Revenue Bonds, Eagle Trust Series 20020301 Class A, (1) 3.96%, 1/9/07 8,000 8,000 ------------- 109,695 -------------
MONEY MARKET FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED ARKANSAS - 0.2% Boone County Hospital Revenue VRDB, North Arkansas Regional Medical Center Project (Bank of America N.A. LOC), 3.90%, 1/9/07 $ 6,600 $ 6,600 Green County IDR VRDB, Series 1999 (AMT), Jimmy Sanders, Inc. Project (Amsouth Bank Birmingham LOC), 4.13%, 1/9/07 4,200 4,200 ------------- 10,800 ------------- CALIFORNIA - 3.6% ABAG Finance Authority for Nonprofit Corp. Coros California COPS VRDB, Series 2000, Episcopal Homes Foundation (Wells Fargo Bank N.A. LOC), 3.77%, 1/9/07 2,600 2,600 ABAG Finance Authority for Nonprofit Corp. Coros California Revenue VRDB, Series 2002, Jewish Community Center Project (Allied Irish Bank LOC), 3.92%, 1/2/07 1,675 1,675 ABAG Finance Authority for Nonprofit Corp. Coros California Revenue VRDB, Series 2004, Thacher Schools, 3.91%, 1/9/07 1,200 1,200 ABAG Finance Authority for Nonprofit Corp. Revenue VRDB, Series 2004, California Senior Living, Elder Care Alliance (Lloyds TSB Bank LOC), 3.80%, 1/9/07 300 300 Adelanto Public Utility Authority Revenue Refunding VRDB, Utility System Project (AMBAC Insured), 3.85%, 1/2/07 10,500 10,500 Alameda-Contra Costa Schools COPS VRDB, Series 2002J, Capital Improvement Financing Projects (KBC Bank N.V. LOC), 3.92%, 1/9/07 2,510 2,510 California Department of Water Resources Revenue VRDB, Series 2002C-7, Power Supply Revenue Bonds (FSA Corp. Insured), 3.75%, 1/9/07 11,600 11,600 California Health Facilities Finance Authority Revenue VRDB, Series 2004J, Catholic Healthcare West (Bank of America N.A. LOC), 3.73%, 1/9/07 5,800 5,800 California Financing Authority PCR Refunding Bonds, Series 1996C, Pacific Gas and Electric Company (JPMorgan Chase Bank LOC), 3.80%, 1/2/07 500 500 California Financing Authority PCR Refunding Bonds, Series 1996E, Pacific Gas and Electricity (JPMorgan Chase Bank LOC), 3.92%, 1/2/07 2,200 2,200 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002B-1 (Bank of New York LOC), 3.92%, 1/2/07 7,800 7,800 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002B-2 (BNP Paribas LOC), 3.86%, 1/2/07 100 100 California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002C-4 (JPMorgan Chase Bank LOC), 3.84%, 1/9/07 27,900 27,900 California State Department of Water Resources and Power Supply Revenue VRDB, Subseries G-1 (Bank of Nova Scotia LOC), 3.82%, 1/9/07 800 800 California State Economic Recovery Revenue VRDB, Series 2004C-1 (BNP Paribas LOC), 3.84%, 1/9/07 14,090 14,090
MONEY MARKET FUNDS 2 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED CALIFORNIA - 3.6% - (CONTINUED) California State G.O., Kindergarten-University, Series 2004A-8 (Citibank N.A. LOC), 3.75%, 1/9/07 $ 7,500 $ 7,500 Series 2004A-9 (Citibank N.A. LOC), 3.79%, 1/9/07 300 300 California State G.O., Series 2003B-4, Floating Rate Certificates (Bank of New York LOC), 3.75%, 1/9/07 18,200 18,200 California Statewide Communities Development Authority Revenue VRDB, Series 2001, Gemological Institute (AMBAC Insured), 3.76%, 1/9/07 22,350 22,350 California Statewide Communities Development Authority Revenue VRDB, Series 2001, Senior Living Facility (Bank of New York LOC), 3.77%, 1/9/07 2,000 2,000 California Statewide Communities Development Authority Revenue VRDB, Series 2003B, Kaiser Permanente Project, 3.77%, 1/9/07 2,350 2,350 California Statewide Communities Development Authority Revenue VRDB, Series 2004L, Kaiser Permanente Project, 3.77%, 1/9/07 14,200 14,200 City of Stockton Revenue VRDB, Series 2002A, Dameron Hospital Association (U.S. Bank N.A. LOC), 3.85%, 1/2/07 100 100 Covina Redevelopment Agency Multifamily Revenue Refunding VRDB, Series 1994A, Shadowhills Apartments (FNMA LOC), 3.75%, 1/9/07 200 200 Los Angeles Department of Water and Power Waterworks Revenue Bonds, Series 2001B-1, 3.82%, 1/2/07 900 900 Metropolitan Water District of Southern California Waterworks Revenue Refunding VRDB, Series 2003C-1, 3.70%, 1/9/07 23,500 23,500 Orange County Development Revenue Refunding VRDB, Issue G of 1998 Series 3, WLCO LF Partners (FNMA LOC), 3.75%, 1/9/07 1,550 1,550 Oxnard Financing Authority Wastewater Revenue VRDB, Headworks and Septic System Conversion (AMBAC Insured), 3.76%, 1/9/07 2,375 2,375 Pittsburg Redevelopment VRDB, Tax Allocation, Series 2004A, Los Medanos Community (AMBAC Insured), 3.85%, 1/2/07 14,955 14,955 San Bernadino County Housing Authority Multifamily Revenue Refunding VRDB, Montclair Heritage Project (FHLB of San Francisco LOC), 3.75%, 1/9/07 1,000 1,000 San Francisco City and County Redevelopment Agency Multifamily Housing Revenue VRDB, Series 1985A, Bayside Village Project (JPMorgan Chase Bank LOC), 3.77%, 1/9/07 7,200 7,200 Sequoia Unified High School District G.O. Bonds, Series 2003-2, ABN AMRO Munitops Certificate Trust (MBIA Insured), (1) 3.94%, 1/9/07 11,400 11,400 ------------- 219,655 ------------- COLORADO - 3.0% Adams County Multifamily Housing Revenue VRDB, Series 85A, Hunters Cove (FNMA LOC), 3.90%, 1/9/07 3,250 3,250
MONEY MARKET FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED COLORADO - 3.0% - (CONTINUED) Colorado Educational and Cultural Facilities Authority Revenue VRDB, Series 2003, Vail Mountain School Project (KeyBank N.A. LOC), 3.99%, 1/9/07 $ 5,500 $ 5,500 Colorado Health Facilities Authority Revenue Bonds, Frasier Meadows Manor Project (JPMorgan Chase Bank LOC), 3.91%, 1/9/07 19,805 19,805 Colorado Health Facilities Authority Revenue Bonds, Series C-1, Christian Living Community (Citibank N.A. LOC), 3.93%, 1/9/07 7,685 7,685 Colorado Health Facilities Authority Revenue Refunding VRDB, Covenant Retirement (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 12,830 12,830 Colorado Health Facilities Authority Revenue VRDB, Series 2004B, Adventist Health System Sunbelt (SunTrust Bank LOC), 3.91%, 1/9/07 15,700 15,700 Colorado Housing and Finance Authority Revenue Bonds (AMT), Genesis Innovations LLC (JPMorgan Chase Bank LOC), 4.20%, 1/9/07 1,310 1,310 Colorado Housing and Finance Authority SFM Revenue Bonds, Class I, C-2-2006, 4.00%, 1/9/07 46,700 46,700 Colorado Housing and Finance Authority SFM Revenue Notes, Class 1-B-5 (AMT), 3.85%, 6/1/07 7,000 7,000 Eagle County Metropolitan District Revenue VRDB, Series 1999B, Eagle Ranch Golf Course Enterprise (Bank of America N.A. LOC), 3.97%, 1/9/07 6,570 6,570 Greenwood Village G.O. Refunding VRDB, Series 2003, City of Fiddlers Business Improvement District (U.S. Bank N.A. LOC), 4.03%, 1/9/07 3,000 3,000 Park Creek Metropolitan District Revenue Bonds, Merrill Lynch P-Floats 157 (Danske Bank Gtd.), (1) (2) 3.50%, 2/15/07 16,995 16,995 Pitkin County IDA Revenue Refunding Bonds, Series 1994A, Aspen Skiing Company Project (JPMorgan Chase Bank LOC), 4.00%, 1/2/07 6,850 6,850 Roaring Fork Municipal Products Revenue Bonds, Trust Certificates Series 2006-21, Class A (AMBAC Insured), (1) 3.98%, 1/9/07 10,625 10,625 Summit County Recreational Facilities Revenue Refunding Bonds, Series 1992, Copper Mountain (Bank of Nova Scotia LOC), 4.00%, 1/9/07 8,895 8,895 Westminster EDA Tax Increment Revenue VRDB, Series 2005, North Huron Urban Revewal Project (Depfa Bank PLC LOC), 3.92%, 1/9/07 10,000 10,000 ------------- 182,715 ------------- CONNECTICUT - 0.6% Connecticut State Health and Educational Facility Authority Revenue Bonds, Series 1997 T-2, Yale University, 3.92%, 1/9/07 5,000 5,000 Connecticut State Health and Educational Facility Authority Revenue Bonds, Series U2 (Yale University LOC), 3.92%, 1/9/07 35,000 35,000 ------------- 40,000 -------------
MONEY MARKET FUNDS 4 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED DISTRICT OF COLUMBIA - 0.7% District of Columbia Metropolitan Airport Authority Revenue Bonds (AMT), Citigroup ROCS Number 54 (MBIA Insured), (1) 4.03%, 1/9/07 $ 2,495 $ 2,495 District of Columbia Multifamily Housing Finance Agency Revenue Bonds (AMT), Merrill Lynch P-Floats PT-2391 (Merrill Lynch & Co. Inc., Gtd.), (1) 4.02%, 1/9/07 2,410 2,410 District of Columbia Revenue VRDB, Series 2001, Henry J. Kaiser Foundation, 3.98%, 1/9/07 10,100 10,100 District of Columbia Revenue VRDB, Series 2005, Georgetown Day School Issue (SunTrust Bank LOC), 3.92%, 1/9/07 19,000 19,000 District of Columbia Water and Sewer Authority Revenue Bonds, Series 1998, Citibank Eagle Trust 985201 (FSA Corp. Insured), (1) 3.96%, 1/9/07 3,300 3,300 District of Columbia Water and Sewer Revenue Bonds, Citicorp Eagle Trust 8121A (FSA Corp. Insured), (1) 3.96%, 1/9/07 7,590 7,590 ------------- 44,895 ------------- FLORIDA - 4.1% Brevard County Healthcare Facilities Revenue Refunding VRDB, Series 2003, Health First, Inc. Project (SunTrust Bank LOC), 3.99%, 1/2/07 450 450 Charlotte County Utility Revenue Refunding VRDB, Series 2003A (FSA Corp. Insured), 3.93%, 1/9/07 10,000 10,000 Dade County Special Obligation Refunding Bonds, Morgan Stanley Floating Rate Trust Certificates, Series 2000-415 (AMBAC Insured), (1) 3.95%, 1/9/07 8,995 8,995 Florida Board of Education Capital Outlay Revenue Bonds, Citicorp Eagle Trust, Series 20000902, (1) 3.96%, 1/9/07 4,550 4,550 Florida Gas Utility Revenue VRDB, Series 2006, Gas Supply Project Number 2-A-2 (UBS Gtd.), 3.88%, 1/9/07 34,900 34,900 Florida Housing Finance Corp. Revenue Bonds, Merrill Lynch P-Floats 305 (Merrill Lynch & Co., Inc. Gtd.), (1) 3.99%, 1/9/07 17,170 17,170 Florida State Board of Education G.O., Eagle 720050054 - Class A, (1) 3.96%, 1/9/07 7,000 7,000 Florida State Department of Juvenile Justice Lease Certificates Revenue Bonds, Wachovia MERLOTS Series 2000-OOO (MBIA Insured), (1) 3.95%, 1/9/07 5,310 5,310 Highlands County Health Facilities Authority Revenue VRDB, Series 1996A, Adventist/Sunbelt (FGIC Insured), 3.91%, 1/9/07 49,100 49,100 Highlands County Health Facilities Authority Revenue VRDB, Series 1996A, Adventist Health System Sunbelt (SunTrust Bank LOC), 3.91%, 1/9/07 2,100 2,100 Highlands County Health Facilities Authority Revenue VRDB, Series 1997A, Adventist Health System Sunbelt (SunTrust Bank LOC), 3.91%, 1/9/07 14,480 14,480
MONEY MARKET FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED FLORIDA - 4.1% - (CONTINUED) Highlands County Health Facilities Authority Revenue Refunding VRDB, Series B, Adventist Health (FGIC Insured), 4.02%, 1/9/07 $ 10,000 $ 10,000 Highlands County Health Facilities Authority Revenue VRDB, Series 2000A, Adventist Health System Sunbelt (FGIC Insured), 3.91%, 1/9/07 17,050 17,050 Highlands County Health Facilities Authority Revenue VRDB, Series 2003B, Adventist Health System Sunbelt (SunTrust Bank LOC), 3.92%, 1/9/07 10,805 10,805 Lee County IDA Healthcare Facilities Revenue VRDB, Series 1999B, Shell Point Village Project (Bank of America N.A. LOC), 3.91%, 1/9/07 1,750 1,750 Lee County IDA Healthcare Facilities Revenue VRDB, Series 2002A, Shell Point Village Project (Bank of America N.A. LOC), 3.91%, 1/9/07 8,405 8,405 Orange County HFA Revenue Refunding Bonds, Series 1997, Post Lake Apartments Project (FNMA Colld.), 3.95%, 1/9/07 500 500 Orlando and Orange County Expressway Authority Revenue VRDB, Subseries D (AMBAC Insured), 3.89%, 1/9/07 21,840 21,840 Orlando and Orange County Expressway Authority Revenue VRDB, Subseries E (AMBAC Insured), 3.89%, 1/9/07 8,940 8,940 Palm Beach County Health Facilities Authority Revenue VRDB, Series 2001, Bethesda Healthcare Systems Project (SunTrust Bank LOC), 3.99%, 1/2/07 450 450 Pinellas County Health Facility Authority Revenue Refunding VRDB, Series A, Bayfront Hospital (SunTrust Bank LOC), 3.99%, 1/2/07 5,000 5,000 Pinellas County HFA Revenue VRDB, Series 2004 (AMT), Alta Largo Apartments Project (Amsouth Bank Birmingham LOC), 3.99%, 1/9/07 5,000 5,000 Polk County IDA Revenue Bonds, Series 2004, Lifepath Hospice Project (SunTrust Bank LOC), 3.92%, 1/9/07 2,700 2,700 St. Lucie County IDA Revenue Bonds, Series 2000 (AMT), Freedom Plastics Project (LaSalle Bank N.A. LOC), 3.97%, 1/9/07 1,700 1,700 ------------- 248,195 ------------- GEORGIA - 4.6% Albany-Dougherty County Hospital Authority Revenue Bonds, Series 96, Phoebe Putney Memorial Hospital (AMBAC Insured), 3.91%, 1/9/07 18,645 18,645 Bulloch County Development Authority Revenue Bonds, Series 1999 (AMT), Apogee Enterprises, Inc. (Bank of New York LOC), 4.00%, 1/9/07 5,400 5,400 Burke County Development Authority PCR Bonds, Vogtle First Series, Georgia Power Plant Co., 3.76%, 6/1/07 20,000 20,000 Clayton County Development Authority Revenue VRDB, Series 2000A, Delta Airlines Project (General Electric Capital Corp. LOC), (1) 3.98%, 1/9/07 40,400 40,400
MONEY MARKET FUNDS 6 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED GEORGIA - 4.6% - (CONTINUED) Clayton County Housing Authority Revenue Bonds, Series 1985, Rivers Edge Development (FHLMC Gtd.), 3.91%, 1/9/07 $ 6,000 $ 6,000 DeKalb County Housing Authority Multifamily Revenue VRDB, Post Brook Project (FNMA Gtd.), 3.95%, 1/9/07 4,300 4,300 DeKalb County Hospital Authority Revenue VRDB, Series 2005, Revenue Anticipation Certificates, DeKalb Medical Center, Inc. Project (SunTrust Bank LOC), 3.92%, 1/9/07 8,000 8,000 Fulco Hospital Authority Revenue Anticipation Certificates, Series 1999J, Piedmont Hospital Project (SunTrust Bank LOC), 3.91%, 1/9/07 27,775 27,775 Fulton County Development Authority Revenue Bonds, Series 2004, Holy Innocents Episcopal School Project (SunTrust Bank LOC), 3.92%, 1/9/07 8,900 8,900 Gainesville Redevelopment Authority Revenue VRDB, Series 2000, Riverside Military Project (SunTrust Bank LOC), 3.92%, 1/9/07 7,820 7,820 Georgia Medical Center Hospital Authority Revenue Bonds, Series 2004, Spring Harbor at Green Island (HBOS Treasury Services LOC), 3.91%, 1/9/07 4,400 4,400 Georgia State G.O. Bonds, (1) Eagle Trust Series 97C1001, 3.96%, 1/9/07 15,500 15,500 Eagle Trust Series 97C1002, 3.96%, 1/9/07 15,100 15,100 Eagle Trust Series 99D1002, 3.96%, 1/9/07 24,280 24,280 Gordon County Hospital Authority Revenue VRDB, Series 1996-A, Adventist Health Systems Sunbelt Project (SunTrust Bank LOC), 4.06%, 1/9/07 730 730 Gwinnett County Multifamily Housing Revenue VRDB, Series 1996, Post Corners Project (FNMA Gtd.), 3.95%, 1/9/07 13,460 13,460 Gwinnett County Multifamily Housing Revenue VRDB, Series 1998, Post Court Project (FNMA Gtd.), 3.91%, 1/9/07 10,000 10,000 Macon Water and Sewer Authority Revenue Bonds, Series 2004, 3.92%, 1/9/07 10,020 10,020 Richmond County Authority Revenue Anticipation Certificates, Series 2003, University Health Services, Inc. Project (SunTrust Bank LOC), 3.92%, 1/9/07 8,800 8,800 Rockdale County Hospital Authority Revenue Anticipation Certificates, Series 2002, Rockdale Hospital (SunTrust Bank LOC), 3.91%, 1/9/07 9,720 9,720 Smyrna Housing Authority Multifamily Housing Revenue VRDB, Series 1995, Hills of Post Village Project (FNMA Gtd.), 3.91%, 1/9/07 4,000 4,000 Smyrna Housing Authority Multifamily Housing Revenue VRDB, Series 1996, Gardens Post Village Project (FNMA Gtd.), 3.91%, 1/9/07 7,950 7,950
MONEY MARKET FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED GEORGIA - 4.6% - (CONTINUED) Thomasville Hospital Authority Revenue Anticipation Certificates, Series 2003, John D. Archibold Memorial Hospital Project (SunTrust Bank LOC), 3.92%, 1/9/07 $ 5,300 $ 5,300 Waleska Downtown Development Authority Revenue VRDB, Reinhardt College Project (Regions Bank LOC), 3.94%, 1/9/07 3,700 3,700 ------------- 280,200 ------------- HAWAII - 0.1% Hawaii State G.O. Bonds, Citicorp Eagle Trust 2000-1101 (FGIC Insured), (1) 3.96%, 1/9/07 6,000 6,000 ------------- IDAHO - 0.2% Boise City Housing Authority Revenue VRDB, Series 2002B, Civic Plaza Housing Project (KeyBank N.A. LOC), 4.05%, 1/9/07 12,710 12,710 ------------- ILLINOIS - 8.5% Aurora Kane and DuPage Counties IDB Revenue Bonds (AMT), Series 1999, Jania Family LLC Project (LaSalle Bank N.A. LOC), 4.05%, 1/9/07 4,660 4,660 Chicago Board of Education G.O., Series A PA 616, School Reform Board (FGIC Insured), (1) 3.96%, 1/9/07 6,705 6,705 Chicago Board of Education G.O. Variable Rate Certificates, Series 2000A, School Reform Board (FGIC Insured), (1) 4.01%, 1/9/07 6,200 6,200 Chicago G.O. Project and Refunding Bonds, Series 1998M, Bank of America Partnership (FGIC Insured), (1) 4.01%, 1/9/07 15,000 15,000 Chicago G.O. Refunding Bonds, Series 1998, Citicorp Eagle Trust 981302 (FSA Corp. Insured), (1) 3.96%, 1/9/07 11,600 11,600 Chicago G.O. Revenue Refunding VRDB, Series 2005D, Refunding Project (FSA Corp. Insured), 3.91%, 1/9/07 15,900 15,900 Chicago G.O. Tender Notes, Series 2006 (Bank of America N.A. LOC), 3.52%, 10/11/07 10,000 10,000 Chicago Housing Revenue Bonds, Lehman Municipal Trust Receipts K58 (FSA Corp. Insured), (1) 3.84%, 1/9/07 23,145 23,145 Crystal Lake Development VRDN (AMT), Millennium Electronics Project (U.S. Bank N.A. LOC), 4.11%, 1/9/07 1,750 1,750 Elmhurst Revenue Bonds, Commission Accreditation of Healthcare Project (JPMorgan Chase Bank LOC), 3.92%, 1/9/07 9,550 9,550 Evanston G.O. VRDB, Series C, Recreation Center Project, 3.93%, 1/9/07 3,300 3,300 Evanston, Illinois G.O., Series 2002A, Sherman Plaza, 3.93%, 1/9/07 18,050 18,050
MONEY MARKET FUNDS 8 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED ILLINOIS - 8.5% - (CONTINUED) Illinois Development Finance Authority IDR Bonds, Series 1990B, Tajon Warehouse Project (JPMorgan Chase Bank LOC), 4.06%, 1/9/07 $ 2,225 $ 2,225 Illinois Development Finance Authority IDR Bonds, Series 1997A (AMT), Randall Metals Corp. Project (LaSalle Bank N.A. LOC), 4.20%, 1/9/07 1,590 1,590 Illinois Development Finance Authority IDR VRDB, Series 2000 (AMT), Olson International Limited Project (JPMorgan Chase Bank LOC), 4.20%, 1/9/07 630 630 Illinois Development Finance Authority Revenue Bonds, Series 2001, YMCA of Metropolitan Chicago Project (Harris N.A. LOC), 3.95%, 1/9/07 28,500 28,500 Illinois Development Finance Authority Revenue Bonds, Series 2004, Robert Morris College (JPMorgan Chase Bank LOC), 3.97%, 1/9/07 10,935 10,935 Illinois Development Finance Authority Revenue VRDB, Series 1998, American Youth Hostels Project (Harris N.A. LOC), 3.95%, 1/9/07 6,975 6,975 Illinois Development Finance Authority Revenue VRDB, Series 1999D1, AMR Pooled Program (Fifth Third Bank LOC), 4.01%, 1/9/07 2,200 2,200 Illinois Development Finance Authority Revenue VRDB, Series 1999D2, AMR Pooled Program (Fifth Third Bank LOC), 4.01%, 1/9/07 7,260 7,260 Illinois Development Finance Authority Revenue VRDB, Series 2002, St. Augustine College Project (JPMorgan Chase Bank LOC), 4.00%, 1/2/07 5,290 5,290 Illinois Development Finance Authority Water Facilities Revenue Refunding VRDB, Series 2002 (AMT), Illinois-American Water (MBIA Insured), 4.02%, 1/9/07 5,000 5,000 Illinois Educational Facilities Authority Revenue Bonds, Northwestern University, Macon Trust Variable Rate Certificates Series D, (1) 3.95%, 1/9/07 7,005 7,005 Illinois Educational Facilities Authority Revenue Bonds, Series A, IIT Student Housing (Harris N.A. LOC), 3.94%, 1/9/07 20,095 20,095 Illinois Educational Facilities Authority Revenue Bonds, Series 2002, Aurora University (Fifth Third Bank LOC), 3.97%, 1/9/07 3,300 3,300 Illinois Finance Authority Revenue Bonds, Series A, All Saints Catholic (Harris N.A. LOC), 3.95%, 1/9/07 12,400 12,400 Illinois Finance Authority Revenue Bonds, Series 2004, Community Action Partnership (Citibank N.A. LOC), 3.94%, 1/9/07 6,000 6,000 Illinois Finance Authority Revenue VRDB, Series 2005C, Friendship Village Schaumburg (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 20,700 20,700 Illinois Finance Authority Revenue VRDB, Series 2006B, Loyola University Health System (Harris N.A. LOC), 3.90%, 1/9/07 30,000 30,000 Illinois Finance Authority Revenue VRDB, Series D, The Clare At Water Tower Project (ABN AMRO Bank N.V. LOC), 3.92%, 1/9/07 30,000 30,000
MONEY MARKET FUNDS 9 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED ILLINOIS - 8.5% - (CONTINUED) Illinois Finance Authority Revenue VRDB, Landing at Plymouth Place (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 $ 17,500 $ 17,500 Illinois Finance Authority Revenue VRDB, WBEZ Alliance Income Project (LaSalle Bank N.A. LOC), 3.93%, 1/9/07 3,000 3,000 Illinois Health Facilities Authority Revenue Bonds, Advocate Healthcare Network, Series 2003A, 3.85%, 7/6/07 10,550 10,550 Illinois Health Facilities Authority Revenue VRDB, Series 2003, Memorial Health Systems (JPMorgan Chase Bank LOC), 4.05%, 1/2/07 2,500 2,500 Illinois Metropolitan Water Reclamation District, ABN AMRO Munitops Certificate Trust 2006-29, (1) 3.96%, 1/9/07 10,000 10,000 Illinois Multifamily Finance Authority, Series 2005, Villagebrook Apartments Project (FHLMC LOC), 3.97%, 1/9/07 5,700 5,700 Illinois State G.O. Bonds, Series 2002, Tax-Exempt Eagle Trust 20021301, Illinois First (FGIC Insured), (1) 3.96%, 1/9/07 5,000 5,000 Illinois State Sales TRB, Salomon Smith Barney Eagle Trust, (1) 3.96%, 1/9/07 5,045 5,045 Illinois State Sales Tax Revenue VRDB, Bank of America Macon Trust Receipts Series C, (1) 3.93%, 1/9/07 3,500 3,500 Illinois State Tollway Highway Revenue Bonds, Series A2, ABN AMRO Munitops Certificate Trust 2006-44 (FSA Corp. Insured), (1) 3.96%, 1/9/07 40,000 40,000 Lisle Multifamily Housing Authority Revenue Bonds, Ashley of Lisle Project (FHLMC LOC), 3.91%, 1/9/07 13,600 13,600 Metropolitan Pier and Exposition Authority Revenue Bonds, Citicorp Eagle Trust Series 20026001 (MBIA Insured), (1) 3.96%, 1/9/07 10,000 10,000 Normal G.O. VRDN, Series 2003, McLean County Project, 3.95%, 1/9/07 4,750 4,750 Peoria Multifamily Revenue Bonds, Series 2003 (AMT), Oak Woods Apartments (FNMA Gtd.), 3.99%, 1/9/07 3,900 3,900 Quad Cities Regional EDA Revenue Bonds, Augustana College Project (Harris N.A. LOC), 3.93%, 1/9/07 14,900 14,900 Regional Transportation Authority Revenue Bonds, Citicorp Eagle Trust Series 20001303 (MBIA Insured), (1) 3.96%, 1/9/07 14,510 14,510 Roaring Forks O'Hare Municipal Certificates Class A2004-7 (AMT) (MBIA Insured), (1) 4.06%, 1/9/07 10,340 10,340 Rockford Revenue Bonds, Series 2002, Wesley Willows Obligation (Marshall & Ilsley Bank LOC), 4.00%, 1/2/07 5,100 5,100
MONEY MARKET FUNDS 10 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED ILLINOIS - 8.5% - (CONTINUED) Savanna IDR Bonds, Series 1994 (AMT), Metform Corp. Project (JPMorgan Chase Bank LOC), 4.02%, 1/9/07 $ 6,500 $ 6,500 University of Illinois Auxiliary Facility Revenue Bonds, Eagle Trust Series 20001301 (MBIA Insured), (1) 3.96%, 1/9/07 3,000 3,000 Warren County Industrial Project Revenue Bonds, Series 2002, Monmouth College Project (Allied Irish Bank LOC), 3.94%, 1/9/07 5,430 5,430 West Chicago City IDR Bonds, Series 1999 (AMT), Royal Gold Ribbons Foods Project (JPMorgan Chase Bank LOC), 4.20%, 1/9/07 1,500 1,500 ------------- 522,290 ------------- INDIANA - 4.5% Columbus Economic Development Revenue VRDB, Series 2004 (AMT), Arbors at Water Edge Apartments Project (FHLB of Cincinnati LOC), 3.97%, 1/9/07 3,850 3,850 Dearborn County Industrial Economic Development Revenue VRDB, Series 2006, Dearborn County Hospital Project (JPMorgan Chase Bank LOC), 3.96%, 1/9/07 15,000 15,000 Dekko Foundation Education Facilities COPS, Series 2001-1 (JPMorgan Chase Bank LOC), 4.15%, 1/9/07 3,725 3,725 Fort Wayne Economic Development Revenue VRDB, Series 2004, University of St. Francis (JPMorgan Chase Bank LOC), 3.97%, 1/9/07 2,800 2,800 Hobart Industrial Economic Development Revenue VRDB (AMT), Albanese Confectionery (Harris N.A. LOC), 4.00%, 1/9/07 3,385 3,385 Indiana Bond Bank Revenue Bonds, Series 2006A, Advanced Funding Program Notes, 4.50%, 2/1/07 10,000 10,010 Indiana Bond Bank Revenue Notes, Series 2006A, Midyear Funding Program Notes, 4.50%, 2/2/07 25,000 25,020 Indiana Development Finance Authority Industrial Revenue Bonds, Series 1999, Youth Opportunity Center Project (JPMorgan Chase Bank LOC), 3.97%, 1/9/07 1,500 1,500 Indiana Development Finance Authority Revenue VRDB, Series 2001 (AMT), Bhar, Inc. Project (JPMorgan Chase Bank LOC), 4.20%, 1/9/07 1,500 1,500 Indiana Educational Facilities Authority Revenue VRDB, Series 2003, Franklin College (JPMorgan Chase Bank LOC), 4.05%, 1/2/07 2,800 2,800 Indiana Health and Educational Facilities Finance Authority Revenue VRDB, Parkview Health Systems (AMBAC Insured), Series 2005A, 3.90%, 1/9/07 28,000 28,000 Series 2005B, 3.90%, 1/9/07 23,990 23,990 Indiana Health Facility Financing Authority Revenue Bonds, Series 2001A3, Ascension Health Credit Group, 3.35%, 1/30/07 17,000 17,000
MONEY MARKET FUNDS 11 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED INDIANA - 4.5% - (CONTINUED) Indiana Health Facility Financing Authority Revenue VRDB, Series 2000, Senior Living Greencroft Project (LaSalle Bank N.A. LOC), 3.92%, 1/9/07 $ 10,754 $ 10,754 Indiana Health Facility Financing Authority Revenue VRDB, Series 2004A, Margaret Mary Community Hospital Project (Fifth Third Bank LOC), 4.05%, 1/2/07 1,400 1,400 Indiana Hospital Equipment Financing Revenue VRDB, Hospital Equipment Program Project (MBIA Insured), 3.92%, 1/9/07 10,510 10,510 Indiana State Development Finance Authority Revenue VRDB, Indiana Historical Society, Inc. Project (JPMorgan Chase Bank LOC), 3.95%, 1/9/07 6,640 6,640 Indiana State Finance Authority Revenue VRDB, Series A (AMT), IB & B LLC Project (Harris N.A. LOC), 4.00%, 1/9/07 7,980 7,980 Indianapolis Bond Bank Revenue Bonds (AMT), ABN AMRO Munitops Certificate Trust 2006-34 (AMBAC Insured), (1) 4.01%, 1/9/07 10,000 10,000 Indianapolis Local Public Improvement Bond Bank Revenue VRDB, Waterworks Project Series G-3 (MBIA Insured), 3.91%, 1/9/07 18,070 18,070 Knox Economic Development Revenue VRDB (AMT), J.W. Hicks, Inc. Project (Harris N.A. LOC), 4.00%, 1/9/07 5,685 5,685 Marion Economic Development Revenue VRDB, Wesleyan University Project (Bank of America N.A. LOC), 3.90%, 1/9/07 6,400 6,400 Mt. Vernon Industrial Pollution Control and Solid Waste Disposal Revenue VRDB, General Electric Co. Project, 3.88%, 1/2/07 39,080 39,080 Noblesville Economic Development Revenue Bonds (AMT), Princeton Lakes Apartments Project, Series PJ-2003B (FHLB of Indianapolis LOC), 4.04%, 1/9/07 1,094 1,094 Terre Haute Industrial Economic Development Revenue Bonds, Series 1985, First Financial Corp. Project (JPMorgan Chase Bank LOC), 3.97%, 1/9/07 300 300 Vincennes University Revenue Bonds, Series 2004G, Student Fees (JPMorgan Chase Bank LOC), 3.92%, 1/9/07 18,090 18,090 ------------- 274,583 ------------- IOWA - 0.6% Iowa Finance Authority Retirement Community Revenue Bonds, Series 2003A, Deerfield Retirement (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 21,700 21,700 Iowa Finance Authority Revenue VRDB, Series B, Wheaton Franciscan (MBIA Insured), 3.90%, 1/9/07 9,700 9,700 Iowa Higher Education Loan Authority Revenue VRDB, Private College, Series 2003, Des Moines University Project (Allied Irish Bank LOC), 4.05%, 1/2/07 800 800 Iowa Higher Education Loan Authority Revenue VRDB, Series 2003, Graceland College (Bank of America N.A. LOC), 3.95%, 1/9/07 1,700 1,700 ------------- 33,900 -------------
MONEY MARKET FUNDS 12 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED KANSAS - 1.3% Colwich IDR Bonds, Series 1999 (AMT), EPCO Carbondioxide Project (Regions Bank LOC), 4.06%, 1/9/07 $ 1,075 $ 1,075 Kansas Development Finance Authority Revenue VRDB, Series 1998B, Shalom Village Obligation Group (Citibank N.A. LOC), 4.00%, 1/9/07 2,755 2,755 Kansas Development Finance Authority Revenue VRDB, Series 2004C, Adventist Health System/Sunbelt (SunTrust Bank LOC), 3.93%, 1/9/07 2,000 2,000 Kansas Department of Transportation Highway Revenue Bonds, Eagle Series 20001601, (1) 3.96%, 1/9/07 5,975 5,975 Kansas Department of Transportation Highway Revenue Bonds, Series 2004C-1, 3.87%, 1/9/07 16,600 16,600 Kansas Department of Transportation Highway Revenue Bonds, Series C3, 3.87%, 1/9/07 22,575 22,575 Olathe Health Facilities Revenue VRDB, Series 2002A, Olathe Medical Center (AMBAC Insured), 4.00%, 1/2/07 4,375 4,375 Olathe Senior Living Facility Revenue VRDB, Series C-1, Catholic Care Campus (LaSalle Bank N.A. LOC), 3.92%, 1/9/07 22,000 22,000 ------------- 77,355 ------------- KENTUCKY - 1.3% Clark County Industrial Building Revenue Bonds, Series 1996 (AMT), Bluegrass Art Cast Project (JPMorgan Chase Bank LOC), 4.20%, 1/9/07 1,150 1,150 Fort Mitchell League of Cities Revenue VRDB, Series 2002A, Trust Lease Program (U.S. Bank N.A. LOC), 3.99%, 1/9/07 12,650 12,650 Franklin County G.O. Refunding Notes, Series 2001 (JPMorgan Chase Bank LOC), 3.98%, 1/9/07 4,300 4,300 Henderson County Revenue Refunding Bonds, Murray-Calloway County Public Hospital Project (Branch Banking & Trust Co. LOC), 4.01%, 1/9/07 5,035 5,035 Kentucky Housing Revenue Bonds (AMT), Clipper Tax-Exempt Trust Certificates Series 2005-35, (1) 4.00%, 1/9/07 10,000 10,000 Kentucky, Inc. Public Energy Authority Gas Supply Revenue VRDB, 4.00%, 1/2/07 30,900 30,900 Morehead League of Cities Revenue VRDB, Series 2004A, Trust Lease Program (U.S. Bank N.A. LOC), 3.99%, 1/9/07 7,533 7,533 Shelby County Revenue VRDB, Series 2004A, Kentucky Association of Counties Leasing Trust (U.S. Bank N.A. LOC), 4.00%, 1/2/07 6,320 6,320 ------------- 77,888 ------------- LOUISIANA - 2.7% Louisiana Environmental Facilities Development Revenue Bonds, Series 2004, Sacred Heart Project (SunTrust Bank LOC), 3.97%, 1/9/07 1,000 1,000
MONEY MARKET FUNDS 13 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED LOUISIANA - 2.7% - (CONTINUED) Louisiana Public Facilities Authority Revenue Bonds, Series 1985A, Hospital Equipment Financing and Refunding (JPMorgan Chase Bank LOC), 3.94%, 1/9/07 $ 29,700 $ 29,700 Louisiana Public Facilites Authority Revenue VDRB, Series 2004, Tiger Athletic Foundation Project (Regions Bank LOC), 3.90%, 1/9/07 41,185 41,185 Lousiana State Municipal Natural Gas Purchasing and District Authority Revenue Bonds, Series 1411Q, Putters (JPMorgan Chase Bank LOC), (1) 3.97%, 1/9/07 51,695 51,695 Louisiana State Offshore Terminal Authority Deepwater Revenue Refunding Bonds, Series 2003A, LOOP LLC Project (SunTrust Bank LOC), 3.99%, 1/2/07 18,450 18,450 Louisiana State Offshore Terminal Authority Deepwater Revenue Refunding Bonds, Series 2003B (JPMorgan Chase Bank LOC), 3.93%, 1/9/07 5,700 5,700 New Orleans G.O. Bonds, Series 2005-13, Roaring Fork Municipal Products LLC (MBIA Insured), (1) 3.99%, 1/9/07 8,355 8,355 St. Charles Parish PCR Bonds, Series 1991 (AMT), Shell Oil Co. Norco Project (FNMA Gtd.), 4.04%, 1/2/07 11,300 11,300 ------------- 167,385 ------------- MAINE - 0.3% Maine State Housing Authority Mortgage Purchase Bonds, Series 1998F2 (AMT), (1) 4.11%, 1/9/07 9,995 9,995 Maine State Housing Authority Revenue Bonds, Series 2006-C (AMT), 3.50%, 3/15/07 5,000 5,000 Maine State Turnpike Authority Revenue Bonds, Eagle Trust Series 20001901 (FGIC Insured), (1) 3.96%, 1/9/07 3,000 3,000 ------------- 17,995 ------------- MARYLAND - 1.6% Baltimore County Dunfield Townhomes Revenue Bonds, Series 2003, Roaring Fork Trust Receipts (GNMA Gtd.), (1) 3.98%, 1/9/07 10,025 10,025 Gaithersburg Economic Development Revenue Bonds, Series 1997, Asbury Methodist (MBIA Insured), 3.91%, 1/9/07 24,320 24,320 Gaithersburg Economic Development Revenue VRDB, Series B, Asbury Maryland Obligation (KBC Bank N.V. LOC), 3.93%, 1/9/07 4,900 4,900 Howard County Revenue Refunding VRDB, Series 2002A, Vantage House Facilities (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 14,930 14,930 Maryland Health and Higher Educational Facilities Authority Revenue Bonds, Series A, Charleston Community (Bank of America N.A. LOC), 3.91%, 1/9/07 3,700 3,700 Maryland Health and Higher Educational Facilities Authority Revenue Refunding VRDB, Series 2005B, Adventist Healthcare (Manufacturers & Traders Trust Co. LOC), 3.93%, 1/9/07 13,800 13,800
MONEY MARKET FUNDS 14 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED MARYLAND - 1.6% - (CONTINUED) Maryland Industrial Development Financing Authority Revenue VRDB, Series 2005B, Our Lady of Good Counsel Project (Manufacturers & Traders Trust Co. LOC), 3.96%, 1/9/07 $ 8,356 $ 8,356 Montgomery County Housing Opportunities Commission Multifamily Housing Revenue Bonds, Series 1991-A, Oakwood Apartments (FHLMC LOC), 3.92%, 1/9/07 15,320 15,320 ------------- 95,351 ------------- MASSACHUSETTS - 4.5% Boston Water and Sewer Tax-Exempt CP (Bank of America N.A. LOC), 3.55%, 3/2/07 7,000 7,000 Massachusetts State Development Finance Agency Multifamily Revenue Bonds, Variable Certificates Austin Trust Receipts (Bank of America N.A. LOC), (1) 3.96%, 1/9/07 10,750 10,750 Massachusetts State Development Finance Agency Revenue VRDB, Series 2003, Lesley University (Bank of America N.A. LOC), 3.96%, 1/9/07 4,800 4,800 Massachusetts State Development Finance Agency Revenue VRDB, Series 2004, Groton School, 3.96%, 1/9/07 7,500 7,500 Massachusetts State Development Finance Agency Revenue VRDB, Series 2005, ISO New England, Inc. (KeyBank N.A. LOC), 3.94%, 1/9/07 5,000 5,000 Massachusetts State G.O. Refunding VRDB, Series 2005A, 3.90%, 1/9/07 134,600 134,600 Massachusetts State Health and Educational Facilities Authority Revenue VRDB, Series 2004GG-1, Harvard University, 3.90%, 1/9/07 49,100 49,100 Massachusetts State Health and Educational Facilities Authority Revenue VRDB, Series L-2, Childrens Hospital (AMBAC Insured), 3.95%, 1/2/07 8,200 8,200 Massachusetts State Industrial Finance Agency Revenue VRDB, Series B 1998, Groton School Issue, 3.96%, 1/9/07 1,600 1,600 Massachusetts Transit Improvement Association Revenue VRDB, Series 2002B, Lease Revenue Demand Obligations (AMBAC Insured), 3.89%, 1/9/07 49,110 49,110 ------------- 277,660 ------------- MICHIGAN - 4.6% Avondale School District, Series 2003, Citigroup ROCS RR II R 2047, (1) 3.95%, 1/9/07 6,385 6,385 Detroit G.O. RANS (Bank of Nova Scotia LOC), 4.50%, 3/1/07 12,800 12,815 Detroit Sewer Disposal Revenue VRDB, Series A, Second Lien (FGIC Insured), 3.91%, 1/9/07 10,000 10,000 Detroit Sewage Disposal System Senior Lien Revenue Refunding Bonds, Series 2001E (FGIC Insured), 3.78%, 7/12/07 37,680 37,680 Farmington Hills Hospital Finance Authority Revenue Bonds, Series 1991, Botsford General Hospital (MBIA Insured), 4.05%, 1/2/07 3,050 3,050
MONEY MARKET FUNDS 15 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED MICHIGAN - 4.6% - (CONTINUED) Grand Rapids Economic Development Corp. Revenue Refunding Bonds, Series 1991A, Amway Hotel (Standard Federal Bank N.A. LOC), 3.92%, 1/9/07 $ 1,100 $ 1,100 Jackson County Economic Development Corp. Limited Obligation Revenue Refunding VRDB, Series 2001A, Vista Grande Villa (LaSalle Bank N.A. LOC), 3.97%, 1/2/07 6,250 6,250 Macomb County Hospital Finance Authority Revenue Refunding VRDB, Mt. Clemens General (Comerica Bank LOC), Series 2003A-1, 4.00%, 1/2/07 2,500 2,500 Series 2003A-2, 4.00%, 1/2/07 3,900 3,900 Michigan Higher Education Facilities Authority Revenue Refunding VRDB, Series 2006, Albion College (JPMorgan Chase Bank LOC), 3.92%, 1/9/07 56,385 56,385 Michigan Municipal Bond Authority Revenue Notes, Series B-2 (Bank of Nova Scotia LOC), 4.50%, 8/20/07 56,500 56,783 Michigan State G.O. Notes, Series A 2006, 4.25%, 9/28/07 43,200 43,433 Michigan State Hospital Finance Authority Revenue Refunding VRDB, Series 2003A, Crittenton Hospital (Comerica Bank LOC), 4.00%, 1/2/07 2,450 2,450 Michigan State Hospital Finance Authority Revenue VRDB, Series 1999A, Covenant Retirement (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 430 430 Michigan State Hospital Finance Authority Revenue VRDB, Series 2002, Hospice of Michigan (Fifth Third Bank LOC), 3.96%, 1/9/07 5,960 5,960 Michigan State Hospital Finance Authority Revenue VRDB, Series 2005F, Trinity Health Credit, 3.98%, 1/2/07 4,620 4,620 Michigan State Strategic Fund Limited Obligation Revenue Bonds, Leader Dogs for the Blind Project (Comerica Bank LOC), 3.98%, 1/9/07 2,800 2,800 Michigan State Strategic Fund Revenue VRDB, Series 1999 (AMT), Great Lakes Metal Stamping (JPMorgan Chase Bank LOC), 4.20%, 1/9/07 1,200 1,200 Michigan State Strategic Fund Revenue VRDB, Series 2000 (AMT), Roesler Metal Finishing Project (Standard Federal Bank N.A. LOC), 4.02%, 1/9/07 4,365 4,365 Michigan State Strategic Fund Revenue VRDB, Series 2002 (AMT), Pioneer Labs, Inc. Project (JPMorgan Chase Bank LOC), 3.99%, 1/9/07 1,100 1,100 Oakland County Economic Development Corp. Revenue VRDB, Series 1998 (AMT), Richard Tool & Die Corp. Project (Comerica Bank LOC), 4.07%, 1/9/07 3,510 3,510 Wayne Charter County Revenue VRDB, Series 2001, University of Detroit Jesuit Project (Allied Irish Bank LOC), 3.93%, 1/9/07 13,825 13,825 ------------- 280,541 ------------- MINNESOTA - 2.8% Austin Housing and Redevelopment Authority Revenue Bonds, Series 2004A, Cedars of Austin Project (LaSalle Bank N.A. LOC), 4.05%, 1/9/07 4,320 4,320
MONEY MARKET FUNDS 16 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED MINNESOTA - 2.8% - (CONTINUED) Becker Tax Increment, Series 1994D (AMT), Piper Jaffray Funding LLC Trust Certificates Series 2004F (MBIA Insured), (1) 3.99%, 1/9/07 $ 9,995 $ 9,995 Dakota County Community Development Authority Revenue VRDB (AMT), View Pointe Apartments Project (LaSalle Bank N.A. LOC), 4.01%, 1/9/07 4,000 4,000 Duluth EDA Healthcare Facilities Revenue VRDB, Series 1997, Miller-Dwan Medical Center Project (U.S. Bank N.A. LOC), 4.05%, 1/2/07 6,550 6,550 Eden Prairie Revenue VRDB, Series 2003 (AMT), Eden Prairie Leased Housing Association Project (LaSalle Bank N.A. LOC), 4.01%, 1/9/07 11,500 11,500 Mankato Multifamily Housing Revenue VRDB, Series 1997, Highland Hills Project (LaSalle Bank N.A. LOC), 4.05%, 1/2/07 1,100 1,100 Maple Grove Economic Development Revenue Bonds, Series 2004, Heritage Christian Academy (U.S. Bank N.A. LOC), 3.91%, 1/9/07 5,960 5,960 Minneapolis Multifamily Housing Revenue Refunding VRDB, Series 2002 (AMT), Second Street Acquisition Project (LaSalle Bank N.A. LOC), 4.05%, 1/9/07 2,780 2,780 Minneapolis Revenue VRDB, Series 2000, People Serving People Project (U.S. Bank N.A. LOC), 4.05%, 1/2/07 2,025 2,025 Minnesota Housing Finance Agency Revenue Notes, Residential Housing Finance Notes, Series D, 3.70%, 5/24/07 9,680 9,680 Minnesota Housing Finance Agency Revenue Notes (AMT), Residential Housing Finance Notes, Series E, 3.75%, 5/24/07 31,755 31,755 Minnesota Housing Finance Agency Revenue Bonds, Residential Housing Finance Series O, 3.53%, 11/29/07 7,500 7,500 Minnesota Housing Finance Agency Revenue Bonds, Residential Housing Finance Series Q, 3.53%, 11/29/07 4,000 4,000 Minnesota Water PCR Bonds, Series 2002A, Wachovia MERLOTS Series 2003-B06, (1) 3.95%, 1/9/07 9,975 9,975 Northfield Multifamily Housing Revenue Bonds, Series 2003A (AMT), Summerfield Investments LLC (LaSalle Bank N.A. LOC), 4.05%, 1/9/07 3,510 3,510 Ramsey County Housing and Redevelopment Authority Revenue VRDB (AMT), Series 2002, St. Paul Leased Housing Association (LaSalle Bank N.A. LOC), 4.01%, 1/9/07 6,950 6,950 Ramsey County Housing and Redevelopment Authority Revenue VRDB, Series 2003A (AMT), Gateway Apartments Partnership Project (LaSalle Bank N.A. LOC), 4.01%, 1/9/07 19,000 19,000 Robbinsdale Multifamily Housing Revenue Refunding Bonds, Series 2004A (AMT), Copperfield (LaSalle Bank N.A. LOC), 4.05%, 1/9/07 2,545 2,545 St. Anthony Multifamily Housing Revenue Bonds, Series 2004 (AMT), Landings at Silver Lake Village Project (LaSalle Bank N.A. LOC), 4.01%, 1/9/07 10,000 10,000
MONEY MARKET FUNDS 17 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED MINNESOTA - 2.8% - (CONTINUED) St. Paul Housing and Redevelopment Authority Revenue Bonds, Series A, Science Museum of Minnesota (U.S. Bank N.A. LOC), 3.93%, 1/9/07 $ 17,100 $ 17,100 St. Paul Housing and Redevelopment Authority Revenue VRDB, Series 2005 (AMT), St. Paul Leased Housing Association Project (LaSalle Bank N.A. LOC), 4.01%, 1/9/07 2,595 2,595 ------------- 172,840 ------------- MISSISSIPPI - 1.3% Jackson Redevelopment Authority Revenue Bonds, Jackson Medical Mall Foundation Project (JPMorgan Chase Bank LOC), 3.95%, 1/9/07 3,535 3,535 Mississippi Business Finance Corp. IDR Bonds, Series 2001 (AMT), H. M. Richards, Inc. Project (Amsouth Bank Birmingham LOC), 4.06%, 1/9/07 1,865 1,865 Mississippi Business Finance Corp. IDR Refunding Bonds, Series 2002 (AMT), Howard Industries Project (Amsouth Bank Birmingham LOC), 4.06%, 1/9/07 1,355 1,355 Mississippi Business Finance Corp. Revenue VRDB, Edgewater Retail Partners (JPMorgan Chase Bank LOC), 3.99%, 1/9/07 17,000 17,000 Mississippi Business Finance Corp. Revenue VRDB, Series 600, Concourse Project (Regions Bank LOC), 3.99%, 1/9/07 2,800 2,800 Mississippi Development Bank Obligation Bonds, Series 04, ABN AMRO Munitops Certificate Trust 2004-40 (FSA Corp. Insured), (1) 3.95%, 1/9/07 19,995 19,995 Mississippi Home Corp. Multifamily Housing Revenue Bonds, Series 2001-2 (AMT), Chapel Ridge Apartments (Regions Bank LOC), 3.99%, 1/9/07 6,300 6,300 Mississippi Home Corp. Multifamily Housing Revenue Refunding Bonds, Series 1999D-2 (AMT), Summer Park Apartments Project (Wachovia Bank N.A. LOC), 4.06%, 1/9/07 520 520 Mississippi Home Corp. Multifamily Housing Revenue VRDB, Series 2001-4 (AMT), Highland Park Apartments Project (Wachovia Bank N.A. LOC), 4.06%, 1/9/07 7,500 7,500 Mississippi Medical Center Educational Building Corp. Revenue VRDB, Adult Hospital Project (AMBAC Insured), 3.91%, 1/2/07 11,285 11,285 Mississippi Medical Center Educational Building Corp. Revenue VRDB, Series 2004, Pediatric and Research Facilities Project (AMBAC Insured), 3.93%, 1/9/07 6,000 6,000 ------------- 78,155 ------------- MISSOURI - 2.2% Chesterfield IDA Educational Facilities Revenue VRDB, Series 2003, Gateway Academy, Inc. Project (U.S. Bank N.A. LOC), 4.05%, 1/2/07 5,050 5,050 Kansas City IDA Revenue VRDB, Series B, Downtown Redevelopment District (AMBAC Insured), 3.95%, 1/9/07 10,000 10,000 Missouri Development Finance Board Cultural Facilities Revenue VRDB, Series 2001B, Nelson Gallery (MBIA Insured), 3.98%, 1/2/07 1,800 1,800 Missouri State Development Finance Board Infrastructure Facilities Revenue VRDB, Series 2000C, St. Louis Convention Center (U.S. Bank N.A. LOC), 4.05%, 1/2/07 8,200 8,200
MONEY MARKET FUNDS 18 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED MISSOURI - 2.2% - (CONTINUED) Missouri State Development Finance Board Lease Revenue Bonds, Series 2003, Missouri Association Municipal Utilities (U.S. Bank N.A. LOC), 4.05%, 1/2/07 $ 2,490 $ 2,490 Missouri State Health and Educational Authority Revenue Bonds, Series 2000, Lutheran Senior Services (U.S. Bank N.A. LOC), 3.94%, 1/9/07 18,685 18,685 Missouri State Health and Educational Authority Revenue VRDB, Series 2001B, Bethesda Health Group (U.S. Bank N.A. LOC), 4.05%, 1/2/07 3,445 3,445 Missouri State Health and Educational Facilities Authority Revenue VRDB, Series A, St. Francis Medical Center (Bank of America N.A. LOC), 4.00%, 1/2/07 7,740 7,740 Platte County IDA Multifamily Housing Revenue Refunding Bonds, Series 1996, Wexford Place Project (FHLMC Gtd.), (1) 3.93%, 1/9/07 8,125 8,125 St. Charles County IDA Revenue Refunding VRDB, Series 1993, Remington Apartments Project (FNMA Gtd.), 3.93%, 1/9/07 10,400 10,400 St. Charles County IDA Revenue Refunding VRDB, Series 1995, Casalon Apartments Project (FNMA Gtd.), 3.93%, 1/9/07 5,570 5,570 St. Charles County IDA Revenue VRDB, Series 2006 (AMT), Trinity Manufacturing Project (Marshall & Ilsley Bank LOC), 4.01%, 1/9/07 7,200 7,200 St. Louis County IDA Revenue Refunding VRDB, Series 1996-B, Friendship Village South County Project (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 4,725 4,725 St. Louis County IDA Revenue Refunding VRDB, Series 1996-B, Friendship Village West (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 3,570 3,570 St. Louis County IDA Revenue VRDB, Series 1995 (AMT), Whispering Lakes Apartment Project (FNMA LOC), 4.01%, 1/9/07 7,435 7,435 St. Louis County IDA Revenue VRDB, Series 1997 (AMT), Black Forest Apartments Project (FNMA LOC), 4.01%, 1/9/07 4,000 4,000 St. Louis General Fund TRANS, 4.50%, 6/29/07 4,000 4,014 University of Missouri Revenue Notes, Series FY, Curators of the University, Capital Project Notes, 4.50%, 6/29/07 15,000 15,057 Washington IDA Revenue VRDB, Series A (AMT), Missourian Public Project (U.S. Bank N.A. LOC), 4.02%, 1/9/07 6,600 6,600 ------------- 134,106 ------------- NEBRASKA - 0.3% Douglas County School District G.O., Series 2003, Citigroup ROCS RR-II-R-4058, (1) 3.95%, 1/9/07 2,375 2,375 Lancaster County Hospital Authority Revenue VRDB, Series 2002, Bryan LGH Medical Center Project (AMBAC Insured), 4.00%, 1/2/07 2,265 2,265 Nebraska Educational Finance Authority Revenue Bonds, Series 2003, Creighton University Project (AMBAC Insured), 4.00%, 1/2/07 6,775 6,775
MONEY MARKET FUNDS 19 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED NEBRASKA - 0.3% - (CONTINUED) Omaha Convention Center and Arena, Citigroup Eagle Trust Series 20040009, (1) 3.96%, 1/9/07 $ 8,000 $ 8,000 York County IDR Bonds, Series 1998 (AMT), EPCO Carbondioxide, Inc. Project (Regions Bank LOC), 4.06%, 1/9/07 1,300 1,300 ------------- 20,715 ------------- NEVADA - 0.6% Clark County Economic Development Revenue VRDB, Bishop Gorman High School Project (Allied Irish Bank LOC), 3.92%, 1/9/07 14,800 14,800 Clark County IDA Revenue VRDB, Series 2003A (AMT), Southwest Gas Corp. Project (Bank of America N.A. LOC), 4.00%, 1/9/07 12,250 12,250 Clark County Revenue Refunding Bonds, Series 1993A, Airport Improvement (MBIA Insured), 3.90%, 1/9/07 3,800 3,800 Director of the State of Nevada Department Revenue VRDB, Series 1998A (AMT), 575 Mill Street LLC Project (KeyBank N.A. LOC), 4.06%, 1/9/07 3,195 3,195 Nevada State Municipal G.O., Series 1997-SGB 31 (FGIC Insured), (1) 3.94%, 1/9/07 1,900 1,900 ------------- 35,945 ------------- NEW JERSEY - 0.4% New Jersey EDA Revenue Refunding VRDB, Class A 2006, Cedar Crest Village, Inc. (Bank of New York LOC), 3.93%, 1/9/07 20,020 20,020 New Jersey EDA Revenue VRDB, Subseries R-1, FACS Construction (Lloyds TSB Bank LOC), 3.90%, 1/2/07 3,300 3,300 ------------- 23,320 ------------- NEW HAMPSHIRE - 0.3% New Hampshire Business Finance Authority Revenue VRDB, Cottage Hospital Issue (Allied Irish Bank LOC), 3.91%, 1/9/07 6,585 6,585 New Hampshire Health and Educational Facilities Authority Revenue Bonds, Bishop Guertin High School (Allied Irish Bank LOC), 4.05%, 1/9/07 5,915 5,915 New Hampshire Health and Educational Facilities Authority Revenue VRDB, New Hampshire Medical Center (Bank of America N.A. LOC), 4.05%, 1/9/07 1,475 1,475 New Hampshire Health and Educational Facilities Authority Revenue VRDB, Series A, LRG Healthcare (JPMorgan Chase Bank LOC), 3.96%, 1/9/07 6,150 6,150 ------------- 20,125 ------------- NEW MEXICO - 0.2% New Mexico Mortgage Finance Authority Revenue Bonds, Series 2006 (AMT), SFM Draw Down (General Electric Capital Corp. GIC), 4.55%, 1/2/07 12,400 12,400 ------------- NEW YORK - 2.7% Babylon Industrial Development Agency Resource Recovery Revenue Refunding Bonds, Series 1998, Ogden Martin Project (FSA Corp. Insured), 3.84%, 1/9/07 6,270 6,270
MONEY MARKET FUNDS 20 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED NEW YORK - 2.7% - (CONTINUED) Long Island Power Authority Electric System Revenue Bonds, Subseries 7-B (MBIA Insured), 3.88%, 1/9/07 $ 8,000 $ 8,000 New York City Capital Resources Corp. Revenue VRDB, Series A, Loan Enhanced Assistance (Bank of America N.A. LOC), 3.85%, 1/9/07 2,000 2,000 New York City G.O. VRDB, Subseries E-4 (Bank of America N.A. LOC), 3.90%, 1/9/07 4,000 4,000 New York City Industrial Development Agency Civic Center Revenue VRDB, Sephardic Community Youth Center (Manufacturers & Traders Trust Co. LOC), 3.96%, 1/9/07 1,200 1,200 New York Local Government Assistance Corp. Revenue VRDB, Series 1995F (Societe Generale LOC), 3.80%, 1/9/07 8,545 8,545 New York State Power Authority, Series 2, 3.50%, 3/8/07 800 800 Triborough Bridge and Tunnel Authority Revenue VRDB, Series 2003B, 3.86%, 1/9/07 60,000 60,000 Triborough Bridge and Tunnel Authority Revenue Refunding VRDB, Subseries 2005 B-1, 3.86%, 1/9/07 76,000 76,000 ------------- 166,815 ------------- NORTH CAROLINA - 1.5% Charlotte Water and Sewer System Revenue VRDB, Series B, 3.89%, 1/9/07 11,650 11,650 North Carolina Capital Facilities Finance Agency Revenue Bonds, Duke University, Citigroup Eagle 2006-12, (1) 3.96%, 1/9/07 12,000 12,000 North Carolina Capital Facilities Finance Agency Revenue VRDB, Series 2004 (AMT), Repair Services, Inc. Project (SunTrust Bank LOC), 4.04%, 1/2/07 4,250 4,250 North Carolina Medical Care Commission Healthcare Revenue VRDB, Series C, First Mortgage Pennybyrn Project (Bank of America N.A. LOC), 3.91%, 1/9/07 20,000 20,000 North Carolina Medical Care Commission Revenue Refunding VRDB, Series B, Duke University Health System, 3.88%, 1/9/07 22,300 22,300 University of North Carolina Revenue Bonds, Citigroup Eagle 720053014 Class 2005A, (1) 3.96%, 1/9/07 5,800 5,800 Wake County G.O. VRDB, Series 2003B, Public Improvement, 3.88%, 1/9/07 17,400 17,400 ------------- 93,400 ------------- OHIO - 1.5% Clinton County Hospital Revenue Refunding VRDB, Series 2003A1, HB Magruder Memorial Hospital Project (Fifth Third Bank LOC), 4.01%, 1/9/07 5,120 5,120 Cuyahoga County Healthcare Facilities Revenue Bonds, McGregor AMASA Stone (KeyBank N.A. LOC), 3.94%, 1/9/07 19,265 19,265
MONEY MARKET FUNDS 21 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED OHIO - 1.5% - (CONTINUED) Franklin County Healthcare Facilities Revenue Refunding Bonds, Series 2005, Chelsea First Community (KBC Bank N.V. LOC), 3.93%, 1/9/07 $ 22,200 $ 22,200 Mahoning County Hospital Facilities Revenue VRDB, Series 1997B, Forum Health Obligation Group (MBIA Insured), 3.93%, 1/9/07 200 200 Middletown Hospital Facilities Revenue Bonds, Merrill Lynch P-Floats MT-239 (Merrill Lynch & Co., Inc. Gtd.), (1) 3.99%, 1/9/07 15,495 15,495 Ohio State G.O. Bonds, Citigroup ROCS Series RR-II-R-4037, (1) 3.95%, 1/9/07 14,495 14,495 Ohio State PCR Bonds, Series 2001 (AMT), Ross Incineration Services Project (JPMorgan Chase Bank LOC), 4.30%, 1/9/07 635 635 Parma Hospital Improvement Revenue VRDB, Series 2006C, Parma Community Hospital (JPMorgan Chase Bank LOC), 3.91%, 1/9/07 10,300 10,300 Summit County IDR Bonds (AMT), Arch Aluminum & Glass Co., Inc. (Comerica Bank LOC), 4.07%, 1/9/07 4,000 4,000 ------------- 91,710 ------------- OKLAHOMA - 0.5% Garfield County Industrial Authority PCR Refunding Bonds, Series A, Oklahoma Gas & Electric Co. Project, 3.98%, 1/9/07 17,200 17,200 Oklahoma Development Finance Authority Revenue VRDB, Series 2002C, Continuing Care Community (KBC Bank N.V. LOC), 4.05%, 1/2/07 385 385 Oklahoma Housing Finance Agency Single Family Revenue Refunding Bonds (AMT), Mortgage Draw Down (General Electric Capital Corp. GIC), (1) 4.53%, 1/31/07 772 772 Tulsa Airports Improvement Variable Rate Certificates Series B2 (MBIA Insured), (1) 4.06%, 1/9/07 14,190 14,190 ------------- 32,547 ------------- OREGON - 0.7% Clackamas County Hospital Facility Authority Revenue Refunding VRDB, Willamette Series A-1 (Bank of New York LOC), 3.91%, 1/9/07 10,100 10,100 Multnomah County Hospital Facilities Authority Revenue Refunding VRDB, Series 2003, Holladay Park Plaza Project (Allied Irish Bank LOC), 4.00%, 1/2/07 100 100 Oregon Economic Development Revenue VRDB, Series 176 (AMT), Cascade Steel Rolling Mills Project (Wells Fargo Bank N.A. LOC), 4.02%, 1/9/07 7,700 7,700 Oregon Health, Housing, Educational and Cultural Facilities Authority Revenue VRDB, Series 95A, Evangelical Lutheran Good Samaritan (U.S. Bank N.A. LOC), 3.96%, 1/9/07 2,950 2,950 Oregon State Facilities Authority Revenue VRDB, Series 2002A, Hazelden Springbrook Project (Allied Irish Bank LOC), 3.94%, 1/9/07 3,700 3,700 Washington County Multifamily Housing Revenue Bonds, Series 1995 (AMT), Cedar Mills Project (Manufacturers & Traders Trust Co. LOC), 4.04%, 1/9/07 15,500 15,500 ------------- 40,050 -------------
MONEY MARKET FUNDS 22 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED PENNSYLVANIA - 1.8% Beaver County IDA PCR Refunding VRDB, First Energy Generation (Barclays Bank PLC LOC), 3.97%, 1/2/07 $ 10,100 $ 10,100 Delaware Valley Regional Financial Authority Local Government Revenue Bonds, Series 1986 (National Australia Bank Limited LOC), 3.91%, 1/9/07 20,140 20,140 Emmaus General Authority Revenue VRDB, Local Government Revenue Bonds (Depfa Bank PLC LOC), Subseries 1989-D24, 3.95%, 1/9/07 10,000 10,000 Subseries 1989-D25, 3.95%, 1/9/07 1,600 1,600 Pennsylvania Economic Development Financing Authority Revenue VRDB, Gertrude Barber Center Project (National City Bank Cleveland LOC), 3.93%, 1/9/07 5,630 5,630 Pennsylvania Intergovernmental Cooporative Authority Special Tax Revenue Refunding Bonds, Series 2003, Philadelphia Funding Program (AMBAC Insured), 3.93%, 1/9/07 19,430 19,430 Philadelphia TRANS, 4.50%, 6/29/07 10,000 10,034 University of Pittsburgh Revenue Notes, Panthers Notes, 4.50%, 8/24/07 18,500 18,592 Westmoreland County IDA Revenue VRDB, Series C, Retirement Redstone (Bank of Nova Scotia PLC LOC), 3.92%, 1/9/07 13,000 13,000 ------------- 108,526 ------------- PUERTO RICO - 0.3% Puerto Rico Highway and Transportation Revenue Bonds, Citigroup ROCS-RR-II-R-636CE (Citibank N.A. Gtd.), (1) 3.93%, 1/9/07 10,000 10,000 Puerto Rico TRANS (Bank of Nova Scotia LOC), 4.50%, 7/30/07 6,000 6,034 ------------- 16,034 ------------- SOUTH CAROLINA - 1.4% Charleston Waterworks and Sewer Revenue VRDB, Series B, Capital Improvements, 3.90%, 1/9/07 27,200 27,200 Cherokee County IDR VRDB, Series 1989 (AMT), Oshkosh Truck Corp. Project (Bank of America N.A. LOC), 4.05%, 1/9/07 5,600 5,600 Medical University Hospital Authority Revenue VRDB, Series 2005A-5, Austin Variable Certificates (MBIA Insured), (1) 3.96%, 1/9/07 12,230 12,230 North Charleston Housing Authority Multifamily Housing Revenue Bonds, Series 2006B (AMT), Horizon Village (Bank of America N.A. LOC), 3.97%, 1/9/07 6,075 6,075 Oconee County PCR Refunding VRDB, Series 1993, Duke Energy Corp. (SunTrust Bank LOC), 3.92%, 1/9/07 30,350 30,350
MONEY MARKET FUNDS 23 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED SOUTH CAROLINA - 1.4% - (CONTINUED) South Carolina Jobs EDA Revenue VRDB, Series 2000 (AMT), Concept Packaging Group Project (Bank of America N.A. LOC), 4.00%, 1/9/07 $ 600 $ 600 South Carolina Jobs EDA Revenue VRDB, Series 2001 (AMT), Pharmaceutical Associates Project (Wachovia Bank N.A. LOC), 4.02%, 1/9/07 2,250 2,250 ------------- 84,305 ------------- SOUTH DAKOTA - 0.2% South Dakota Health and Educational Facilities Authority Revenue VRDB, Series 2003, Rapid City Regional Hospital (MBIA Insured), 4.00%, 1/2/07 13,900 13,900 ------------- TENNESSEE - 7.3% Blount County Public Building Authority Revenue VRDB, Local Government Public Improvement Bonds (AMBAC Insured), Series A-2G, 4.00%, 1/2/07 1,305 1,305 Series 2004A-9-A, 3.94%, 1/2/07 6,025 6,025 Series 2004A-9-B, 3.94%, 1/2/07 685 685 Blount County Public Building Authority Revenue VRDB, Series A-4-A, Local Government Public Improvement Bonds, 4.00%, 1/2/07 4,300 4,300 Chattanooga IDB Lease Rent Revenue Bonds, Citicorp Eagle Trust Series 20004202 (AMBAC Insured), (1) 3.96%, 1/9/07 6,000 6,000 Clarksville Public Building Authority G.O. VRDB, Series 2001 (SunTrust Bank LOC), 3.92%, 1/9/07 6,600 6,600 Clarksville Public Building Authority Revenue Bonds, Series 2003 (Bank of America N.A. LOC), 4.00%, 1/2/07 2,400 2,400 City of Jackson Hospital Revenue Refunding VRDB, Series B, Jackson Madison Hospital (AMBAC Insured), 3.89%, 1/9/07 50,000 50,000 Knox County Health Educational and Housing Board Multifamily Revenue Bonds, Merrill Lynch P-Floats Series 3365 (AMT) (Merrill Lynch & Co., Inc. Gtd.), (1) 4.01%, 1/9/07 6,725 6,725 Knox County Health Educational and Housing Facilities Board Revenue Bonds, Series 2000, Volunteer Student Housing LLC Project (Allied Irish Bank LOC), 3.92%, 1/9/07 13,020 13,020 Metropolitan Government Nashville and Davidson County Electric Revenue Bonds, Citicorp Eagle Trust Series 984201, (1) 3.96%, 1/9/07 4,205 4,205 Metropolitan Nashville and Davidson County Health and Educational Facilities Revenue Bonds, Series A (AMT), Jackson Grove Apartments (Marshall & Ilsley Bank LOC), 4.00%, 1/9/07 8,000 8,000 Metropolitan Nashville and Davidson County Health and Educational Facilities Revenue Refunding Bonds, Richland Place, Inc. Project (SunTrust Bank LOC), 3.92%, 1/9/07 1,000 1,000 Metropolitan Nashville and Davidson County Health and Educational Facilities Revenue VRDB, Series B1, Ascension, 3.72%, 8/3/07 20,000 20,000
MONEY MARKET FUNDS 24 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED TENNESSEE - 7.3% - (CONTINUED) Metropolitan Nashville and Davidson County Health and Educational Facilities Revenue VRDB, Series 1996A, Adventist Health System (SunTrust Bank LOC), 3.91%, 1/9/07 $ 1,645 $ 1,645 Metropolitan Nashville and Davidson County Health and Educational Facilities Revenue VRDB, Series 2002, Ensworth School Project (SunTrust Bank LOC), 3.92%, 1/9/07 3,880 3,880 Montgomery County Public Building Authority Pooled Financing Revenue Bonds, Series 2004, Tennessee County Loan Pool (Bank of America N.A. LOC), 4.00%, 1/2/07 15,100 15,100 Montgomery County Public Building Authority Pooled Financing Revenue Bonds, Tennessee County Loan Pool (Bank of America N.A. LOC), 4.00%, 1/2/07 11,200 11,200 Municipal Energy Acquisition Corp. Revenue Bonds, Series 1579-2006, Putters (JPMorgan Chase Bank LOC), (1) 3.94%, 1/4/07 48,775 48,775 Rutherford County IDB Revenue VRDB, Series 1999A (AMT), Tennessee Farmers Co-Op Project (Amsouth Bank Birmingham LOC), 4.01%, 1/9/07 2,110 2,110 Sevier County Public Building Authority, Local Government Public Improvement Revenue Bonds, Series 2000 IV-D-1 (AMBAC Insured), 4.00%, 1/2/07 7,500 7,500 Series 2000 IV-F-1 (AMBAC Insured), 4.00%, 1/2/07 2,550 2,550 Sevier County Public Building Authority, Local Government Public Improvement Revenue Bonds, Series 2004 VI-A-1, 4.00%, 1/2/07 1,200 1,200 Sevier County Public Building Authority, Local Government Improvement Revenue Bonds (FSA Corp. Insured), Series 2000 IV-B-8, 4.00%, 1/2/07 410 410 Series 2000 IV-C1, 4.00%, 1/2/07 1,700 1,700 Shelby County Health, Educational and Housing Facilities Board Revenue VRDB, Memphis University School Project (SunTrust Bank LOC), 3.93%, 1/9/07 4,400 4,400 Shelby County Health, Educational and Housing Facilities Board Revenue VRDB, Series A-1, Gateway Projects (FNMA Gtd.), 3.92%, 1/9/07 5,575 5,575 Shelby County Health, Educational and Housing Facilities Board Revenue VRDB, Series 2001, Youth Villages (Allied Irish Bank LOC), 3.94%, 1/9/07 1,700 1,700 Sullivan County Health and Educational and Housing Facilities Board Revenue Bonds, Wellmont Health Systems Project (Bank of America N.A. LOC), 3.91%, 1/9/07 27,220 27,220 Tennergy Corp. Gas Revenue Bonds, Series 1258Q, Putters (JPMorgan Chase Bank LOC), (1) 3.97%, 1/9/07 44,000 44,000 Tennergy Corp. Gas Revenue Bonds, STARS Trust Receipts 1260B (BNP Paribas LOC), (1) 3.96%, 1/9/07 93,300 93,300 Tennesee Housing Development Agency Revenue Bonds (AMT), Clipper Tax-Exempt Series 2005-10, (1) 4.00%, 1/9/07 44,865 44,865 ------------- 447,395 -------------
MONEY MARKET FUNDS 25 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED TEXAS - 13.7% Aldine Independent School District G.O. Refunding Bonds, Series 1997, Soc Gen Municipal Trust Receipts SGB29 (PSF of Texas Gtd.), (1) 3.94%, 1/9/07 $ 8,950 $ 8,950 Bastrop Independent School District G.O., Series 1997, Soc Gen Municipal Securities Trust Receipts Series SGB-37 (PSF of Texas Gtd.), (1) 3.94%, 1/9/07 18,870 18,870 Bexar County Health Facilities Development Corp. Revenue VRDB, Air Force Village (Bank of America N.A. LOC), 3.91%, 1/9/07 29,000 29,000 Bexar County Health Facilities Development Corp. Revenue VRDB, Healthcare Chandler Memorial Home (JPMorgan Chase Bank LOC), (1) 3.93%, 1/9/07 3,175 3,175 Bexar County Revenue Bonds, Series 2001-3, State Street Clipper Trust (MBIA Insured), (1) (2) 3.60%, 3/8/07 10,975 10,975 Brazos River Harbor Naval District Revenue VRDB, Series 2002 (AMT), BASF Corp. Project (BASF Corp. Project), 4.10%, 1/9/07 5,000 5,000 Conroe Independent School District G.O., ABN AMRO Munitops Certificate Trust 2002-1 (PSF of Texas Gtd.), (1) 3.96%, 1/9/07 9,995 9,995 Comal Independent School District Revenue VRDB, Series 1999-9, ABN AMRO Munitops Certificate Trust (PSF of Texas Gtd.), (1) 3.94%, 1/9/07 1,800 1,800 Cypress-Fairbanks Independent School District, Citicorp Eagle Trust, Series 20004304 (PSF of Texas Gtd.), (1) 3.96%, 1/9/07 7,640 7,640 Denton Independent School District Variable Rate Certificates, Series 2004C, Piper Jaffray Funding LLC (PSF of Texas Gtd.), (1) 3.96%, 1/9/07 12,705 12,705 El Paso Housing Finance Corp. Variable Certificates, Series 2001E, SFM Revenue, (1) 3.99%, 1/9/07 7,810 7,810 Grand Prairie Independent School District G.O. VRDB, 3.82%, 8/1/07 33,600 33,600 Gulf Coast Waste Disposal Authority Revenue Bonds, Series 2001 (AMT), American Acrylic Project (JPMorgan Chase Bank LOC), 4.00%, 1/9/07 25,000 25,000 Harris County G.O. CP Notes, Series A (Depfa Bank PLC LOC), 3.58%, 1/31/07 3,000 3,000 Series A (Depfa Bank PLC LOC), 3.60%, 1/31/07 4,000 4,000 Series A (Depfa Bank PLC LOC), 3.70%, 1/31/07 4,000 4,000 Series C, 3.59%, 3/9/07 55,000 55,000 Harris County Health Facilities Development Corp. Revenue VRDB, Series A-2, Christus Health Project (AMBAC Insured), 3.89%, 1/9/07 15,600 15,600 Harris County Health Facilities Development Corp. Revenue VRDB, Series 1999, Texas Childrens Hospital Project (MBIA Insured), 3.98%, 1/2/07 9,500 9,500
MONEY MARKET FUNDS 26 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED TEXAS - 13.7% - (CONTINUED) Harris County Industrial Development Corp. Revenue Bonds, Series 2000 (AMT), North American Galvanizing (JPMorgan Chase Bank LOC), 4.02%, 1/9/07 $ 2,820 $ 2,820 HFDC of Central Texas, Inc. Retirement Facilities Revenue VRDB, Series 2006 C, Village Gleannloch Farms (Citibank N.A. LOC), 3.92%, 1/9/07 10,250 10,250 Houston Independent School District G.O. Revenue VRDB, Series 2004, Schoolhouse (PSF of Texas Gtd.), 3.63%, 6/15/07 25,000 25,000 Irving Independent School District Revenue VRDB, Series 2004A (PSF of Texas Gtd.), 3.82%, 8/1/07 15,000 15,000 Keller Independent School District G.O., Series 2001-26, ABN AMRO Munitops Certificate Trust (PSF of Texas Gtd.), (1) 3.95%, 1/9/07 6,350 6,350 La Marque Independent School District G.O., Series 2003, Smith Barney ROCS 1058 (PSF of Texas Gtd.), (1) 3.95%, 1/9/07 8,070 8,070 Leander Independent School District G.O., ABN AMRO Munitops Certificate Trust Series 2002-16 (PSF of Texas Gtd.), (1) 3.96%, 1/9/07 5,500 5,500 North Texas Tollway Authority Revenue VRDB, Series 2005C, Dallas North Tollway System (FGIC Insured), 3.90%, 1/9/07 19,900 19,900 Northside Independent School District School Building Bonds, Series 2002A, ABN AMRO Munitops Certificate Trust 2003-28 (PSF of Texas Gtd.), (1) 3.96%, 1/9/07 9,870 9,870 Nueces River Authority Water Supply, Eagle Trust Series 97430, Corpus Christi Lake Project (FSA Corp. Insured), (1) 3.96%, 1/9/07 16,600 16,600 Port Arthur Navigation District Revenue Bonds, Series 1998 (AMT), BASF Corp. Project (BASF Corp. Gtd.), 4.07%, 1/2/07 5,000 5,000 Richmond Higher Education Corp. Revenue VRDB, Series 2003A, Bayou University Project (AMBAC Insured), 3.94%, 1/9/07 3,800 3,800 Rockwall Independent School District G.O. VRDB, Series 2006, School Building (PSF of Texas Gtd.), 3.92%, 1/9/07 16,000 16,000 San Antonio Independent School District G.O., Series 2001B, ABN AMRO Munitops Certificate Trust 2001-29 (PSF of Texas Gtd.), (1) 3.96%, 1/9/07 19,995 19,995 San Antonio Multifamily Housing Revenue Bonds, Series 2002 (AMT), Roaring Fork Series 2002-10 (GNMA Gtd.), (1) 4.06%, 1/9/07 7,085 7,085 State of Texas G.O. Bonds, Series 2006B, Multi-Mode-Mobility, 3.52%, 9/5/07 48,000 48,000 State of Texas TRANS, Series 2006, 4.50%, 8/31/07 175,500 176,567 Tarrant County Health Facilities Development Corp. Revenue VRDB, Series 1996-A, Adventist Health System Sunbelt (SunTrust Bank LOC), 3.91%, 1/9/07 5,215 5,215
MONEY MARKET FUNDS 27 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED TEXAS - 13.7% - (CONTINUED) Tarrant County Housing Finance Corp. Multifamily Revenue Bonds, Merrill Lynch P-Floats Series PT-473 (FHLMC Gtd.), (1) (2) 3.50%, 2/15/07 $ 5,755 $ 5,755 Tarrant County Housing Finance Corp. Revenue Bonds, Merrill Lynch P-Floats Series 3169 (AMT) (Merrill Lynch & Co., Inc. Gtd.), (1) 4.02%, 1/9/07 7,120 7,120 Tarrant County Housing Finance Corp. Revenue Bonds, Series 2003, Gateway Arlington Apartments Project (FNMA Gtd.), 3.91%, 1/9/07 8,545 8,545 Texas City Industrial Development Corp., Wachovia MERLOTS Series 2000-A34, Arco Pipeline Project, (1) 3.95%, 1/9/07 3,880 3,880 Texas State Department of Housing and Community Affairs Residential Mortgage Revenue Bonds, Series B (AMT), State Street Clipper Trust 2001-1, (1) (2) 3.80%, 2/1/07 13,970 13,970 Texas State Department of Housing and Community Affairs Revenue VRDB, Series 2003, NHP Foundation, Asmara Project (FHLMC LOC), 3.95%, 1/9/07 10,360 10,360 Texas State Transportation Commission Revenue Bonds, Putters Series 1297, (1) 3.97%, 1/9/07 26,080 26,080 Texas State Transportation Commission Revenue VRDB, Series B, First Tier, 3.91%, 1/9/07 34,500 34,500 Texas University Revenue Bonds, Citigroup Eagle Series 20060108 Class A, (1) 3.96%, 1/9/07 18,810 18,810 Texas University Revenue Bonds, Series 2003B, Wachovia MERLOTS Series 2003-B14, (1) 3.95%, 1/9/07 7,780 7,780 Texas Water Development Board Revenue Refunding VRDB, Series 2005, 3.92%, 1/2/07 35,685 35,685 ------------- 839,127 ------------- UTAH - 1.0% Intermountain Power Agency Supply Revenue Bonds, Citicorp Eagle Trust CR-331 (FSA Corp. Insured), (1) 3.96%, 1/9/07 3,300 3,300 St. George Housing Revenue VRDB, Series A, OK Foundation Projects (FNMA Gtd.), 3.92%, 1/9/07 10,490 10,490 Utah Transit Authority Sales Tax Revenue Bonds, Subseries B (Fortis Bank LOC), 3.88%, 1/2/07 2,900 2,900 Utah Water Finance Agency Revenue VRDB (AMBAC Insured), Series 2002A2, 3.96%, 1/9/07 3,400 3,400 Series 2002A5, 3.96%, 1/9/07 6,050 6,050 Series 2003A7, 3.96%, 1/9/07 5,500 5,500 Series 2004A9, 3.96%, 1/9/07 15,000 15,000 Series 2005A13, 3.93%, 1/9/07 10,000 10,000
MONEY MARKET FUNDS 28 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED UTAH - 1.0% - (CONTINUED) West Valley City Revenue VRDB, Series A, Monticello Academy (KeyBank N.A. LOC), 3.94%, 1/9/07 $ 3,200 $ 3,200 ------------- 59,840 ------------- VIRGINIA - 0.8% Alexandria IDA Revenue Refunding VRDB, Series 2005, Institute of Defense (AMBAC Insured), 3.97%, 1/9/07 5,000 5,000 Chesapeake Bay Bridge and Tunnel District Revenue Bonds, Wachovia MERLOTS Series 2003A39 (MBIA Insured), (1) 3.95%, 1/9/07 6,045 6,045 Fairfax County Educational Facilities Revenue Bonds, Series 2003, The Madeira School (Bank of America N.A. LOC), 3.96%, 1/9/07 19,200 19,200 Harrisonburg IDA Revenue Refunding Bonds, Series B, Mennonite Retirement (Citibank N.A. LOC), 3.92%, 1/9/07 13,815 13,815 Virginia State Housing Development Authority Revenue VRDB, Series 2005D (AMT), Trust Receipts, Morgan Keegan Municipal Products, Inc. Various States, (1) 4.01%, 1/9/07 6,740 6,740 ------------- 50,800 ------------- WASHINGTON - 3.9% Bremerton County Revenue Bonds, Series 2003, Kitsap Regional Conference Center Parking (Bank of America N.A. LOC), 3.95%, 1/9/07 2,375 2,375 City of Seattle G.O. Bonds, Series 1996D, 3.92%, 1/9/07 29,000 29,000 King County G.O. Limited BANS, Series A 2006, 4.00%, 11/1/07 3,415 3,427 King County G.O. Limited BANS, Series B 2006, 4.00%, 11/1/07 7,075 7,101 King County Revenue Bonds, Lehman Municipal Trust Receipts Series 06-K86, (1) 4.03%, 1/9/07 24,400 24,400 King County Sewer Revenue VRDB, Junior Lien Series 2006A (MBIA Insured), 3.90%, 1/9/07 8,400 8,400 King County Sewer Revenue VRDB, Junior Lien Series 2006B (MBIA Insured), 3.89%, 1/9/07 10,000 10,000 Port Bellingham Industrial Development Corp. Revenue VRDB (AMT), Hempler Foods Group (Bank of Montreal - Chicago Branch LOC), 4.00%, 1/9/07 6,125 6,125 Seattle Light and Power Revenue Refunding Bonds (FSA Corp. Insured), (1) Smith Barney ROCS II-R Series 47, 3.95%, 1/9/07 17,920 17,920 Smith Barney ROCS II-R Series 48, 3.95%, 1/9/07 5,995 5,995 Washington State G.O., Series 1993B, Smith Barney Soc Gen Trust SGB-13, (1) 3.95%, 1/9/07 20,600 20,600 Washington State G.O., Series 2000B, Eagle Trust Series 20004701, (1) 3.96%, 1/9/07 10,365 10,365
MONEY MARKET FUNDS 29 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED WASHINGTON - 3.9% - (CONTINUED) Washington State G.O., Series 2004D, ABN AMRO Munitops Certificate Trust Series 2004-13 (AMBAC Insured), (1) 3.96%, 1/9/07 $ 15,000 $ 15,000 Washington State G.O., Wachovia MERLOTS Series 2001-A54, (1) 3.95%, 1/9/07 4,100 4,100 Washington State Healthcare Facilities Authority Revenue VRDB, Seattle Cancer Care (KeyBank N.A. LOC), 3.94%, 1/9/07 10,795 10,795 Washington State Healthcare Facilities Authority Revenue VRDB, Series 2003, Association of Community and Migrant Health Centers (U.S. Bank N.A. LOC), 3.97%, 1/9/07 4,515 4,515 Washington State Higher Education Facilities Authority Revenue VRDB, Series 2003A, Cornish College of Arts Project (Bank of America N.A. LOC), 4.00%, 1/9/07 2,100 2,100 Washington State Housing Finance Commission Multifamily Revenue VRDB, Series 1994 (AMT), Arbors on the Park Project (Bank of America N.A. LOC), 4.01%, 1/9/07 8,450 8,450 Washington State Housing Finance Commission Nonprofit Housing Revenue Refunding VRDB, Series 1997, Panorama City Project (KeyBank N.A. LOC), 4.02%, 1/2/07 8,200 8,200 Washington State Housing Finance Commission Nonprofit Housing Revenue VRDB, Series 2000, Living Care Centers Project (Wells Fargo Bank N.A. LOC), 3.92%, 1/9/07 8,210 8,210 Washington State Housing Finance Commission Nonprofit Revenue VRDB, Bertschi School Project (Bank of America N.A. LOC), 3.95%, 1/9/07 500 500 Washington State Housing Finance Commission Nonprofit Revenue VRDB, Museum of History and Industry (Bank of America N.A. LOC), 4.04%, 1/2/07 800 800 Washington State Housing Finance Commission Nonprofit Revenue VRDB, Rockwood Retirement Communities (Wells Fargo Bank N.A. LOC), 4.04%, 1/2/07 1,600 1,600 Washington State Housing Finance Commission Nonprofit Revenue VRDB, Series 2000, University Prep Academy Project (Bank of America N.A. LOC), 3.95%, 1/9/07 4,000 4,000 Washington State Housing Finance Commission Revenue Refunding VRDB, Series 2003, Emerald Heights Project (Bank of America N.A. LOC), 3.95%, 1/2/07 7,400 7,400 Washington State Housing Finance Commission Revenue VRDB (AMT), Rosemont Apartments Project (BNP Paribas LOC), 4.11%, 1/2/07 2,890 2,890 Washington State Motor Vehicle Fuel Tax G.O., Series 2005B, ABN AMRO Munitops Certificate Trust Series 2005-51 (FSA Corp. Insured), (1) 3.96%, 1/9/07 13,040 13,040 ------------- 237,308 ------------- WEST VIRGINIA - 0.7% Cabell County Revenue VRDB, Series 2001, Huntington YMCA (JPMorgan Chase Bank LOC), 4.15%, 1/9/07 3,200 3,200 Monongalia County Building Commission Revenue Refunding Bonds, Series 2005B, Monongalia General Hospital Project (JPMorgan Chase Bank LOC), 3.92%, 1/9/07 13,315 13,315 West Virginia State Hospital Finance Authority Revenue Refunding VRDB, Series 2003A1, Pallottine Health Services, Inc. Project (Fifth Third Bank LOC), 3.92%, 1/9/07 26,610 26,610 ------------- 43,125 -------------
MONEY MARKET FUNDS 30 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED WISCONSIN - 1.9% Germantown IDR Bonds, Series 1996 (AMT), Great Lakes Packaging Corp. Project (Marshall & Ilsley Bank LOC), 4.01%, 1/9/07 $ 1,210 $ 1,210 Manitowoc IDR VRDB (AMT), Cher-Make Sausage Co. Project (U.S. Bank N.A. LOC), 4.11%, 1/9/07 2,300 2,300 Mequon IDR Bonds, Series 2001A (AMT), Gateway Plastic (JPMorgan Chase Bank LOC), 4.20%, 1/9/07 1,000 1,000 Milwaukee Redevelopment Authority Revenue VRDB, Series 2005, University of Wisconsin Kenilworth Project (Depfa Bank PLC LOC), 3.88%, 1/9/07 10,535 10,535 Milwaukee School RANS, 4.50%, 8/30/07 13,000 13,077 Oostburg IDR VRDB, Series 2002 (AMT), Dutchland Plastics Corp. (U.S. Bank N.A. LOC), 4.02%, 1/9/07 2,125 2,125 Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2002, Meriter Hospital, Inc. Project (Marshall & Ilsley Bank LOC), 4.05%, 1/2/07 1,400 1,400 Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2003, Mequon Jewish Project (JPMorgan Chase Bank LOC), 3.95%, 1/9/07 3,555 3,555 Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2004C, EastCastle Place, Inc. (LaSalle Bank N.A. LOC), 3.91%, 1/9/07 3,700 3,700 Wisconsin Health and Educational Facilities Authority Revenue Bonds, St. Joseph Community Hospital Project (Marshall & Ilsley Bank LOC), 3.94%, 1/9/07 6,590 6,590 Wisconsin Health and Educational Facilities Authority Revenue VRDB, Pooled Financing Program (Marshall & Ilsley Bank LOC), Series 2002C, 4.06%, 1/9/07 1,500 1,500 Series 2002D, 4.06%, 1/9/07 665 665 Series 2002G, 4.06%, 1/9/07 1,050 1,050 Wisconsin Health and Educational Facilities Authority Revenue VRDB, Series 2001, Riverview Hospital Association (U.S. Bank N.A. LOC), 4.05%, 1/2/07 4,625 4,625 Wisconsin Health and Educational Facilities Authority Revenue VRDB, Series 2002A, Capital Access Pool, Vernon Memorial Hospital (U.S. Bank N.A. LOC), 4.05%, 1/2/07 4,850 4,850 Wisconsin Health and Higher Educational Facilities Authority Revenue Bonds, Series 1997, Froedtert Memorial Lutheran Hospital Trust (Marshall & Ilsley Bank LOC), 3.94%, 1/9/07 12,673 12,673 Wisconsin School Districts Cash Flow Management Program COPS, Series 2006-A1, 4.50%, 9/19/07 5,000 5,032 Wisconsin School Districts Cash Flow Management Program COPS, Series 2006-B, 4.25%, 11/1/07 10,000 10,062 Wisconsin State Health and Educational Facilities Authority Revenue Bonds, Beaver Dam Community Hospital Project (U.S. Bank N.A. LOC), 3.92%, 1/9/07 10,000 10,000
MONEY MARKET FUNDS 31 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED)
PRINCIPAL AMOUNT VALUE (000S) (000S) --------- ------------- MUNICIPAL INVESTMENTS - 101.0% - CONTINUED WISCONSIN - 1.9% - (CONTINUED) Wisconsin State Health and Educational Facilities Authority Revenue Bonds, Series 2003, Mercy Health Systems (Marshall & Ilsley Bank LOC), 3.93%, 1/9/07 $ 6,900 $ 6,900 Wisconsin State Health and Educational Facilities Authority Revenue VRDB, Series 2005, National Regency New Berlin Project (Marshall & Ilsley Bank LOC), 4.05%, 1/2/07 6,740 6,740 Wisconsin State Health and Educational Facilities Authority Revenue VRDB, Series 2005C, Froedtert and Community Health (AMBAC Insured), 3.91%, 1/9/07 8,000 8,000 ---------- 117,589 ---------- MULTIPLE STATES POOLED SECURITIES - 0.9% Access to Loans for Learning Student Loan Corp. Revenue VRDB, Series V-A-5 (AMT) (AMBAC Insured), 3.98%, 1/9/07 10,000 10,000 Clipper Tax-Exempt Certificates, Series 1999-3 (AMT), Multistate Tax-Exempt Certificates, (1) 4.11%, 1/9/07 13,513 13,513 Lehman Brothers Pooled Municipal Trust Receipts, Floating Rate Trust Receipts P10 Regulation D (MBIA Insured), (1) 4.03%, 1/9/07 21,895 21,895 National FHLMC Multifamily Variable Rate Certificates, Series M008 Class A (AMT) (FHLMC LOC), 4.01%, 1/9/07 10,634 10,634 ---------- 56,042 ---------- TOTAL MUNICIPAL INVESTMENTS (COST $6,176,542) 6,176,542 ----------
NUMBER OF VALUE SHARES (000S) ---------- ---------- INVESTMENT COMPANIES - 0.6% AIM Tax-Exempt Cash Fund 38,322,774 38,323 Dreyfus Tax-Exempt Cash Management Fund 61,897 62 Merrill Lynch Institutional Tax-Exempt Fund 285,000 285 ---------- TOTAL INVESTMENT COMPANIES (COST $38,670) 38,670 ---------- TOTAL INVESTMENTS - 101.6% (COST $6,215,212) (3) 6,215,212 ---------- Liabilities less Other Assets - (1.6)% (100,117) ---------- NET ASSETS - 100.0% $6,115,095 ----------
(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. MONEY MARKET FUNDS 32 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS SCHEDULE OF INVESTMENTS MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) (2) Restricted security that has been deemed illiquid. At December 31, 2006, the value of these restricted illiquid securities amounted to approximately $47,695,000 or 0.8% of net assets. Additional information on each restricted illiquid security is as follows:
ACQUISITION ACQUISITION COST SECURITY DATE (000S) -------- ----------- ----------- Park Creek Metropolitan District Revenue Bonds (CO), 3.50%, 2/15/07 2/13/06 $16,995 Bexar County Revenue Bonds (TX), 3.60%, 3/8/07 3/11/04 10,975 Tarrant County Housing Finance Corp. Multifamily Revenue Bonds (TX), 3.50%, 2/15/07 3/14/03 5,755 Texas State Department of Housing and Community Affairs Residential Mortgage Revenue Bonds (TX), 3.80%, 2/1/07 3/11/04 13,970
(3) The cost for federal income tax purposes was $6,215,212. At December 31, 2006, the industry sectors for the Municipal Money Market Fund were:
INDUSTRY SECTOR % OF NET ASSETS --------------- --------------- Administration of Environment & Housing & Real Estate 5.3% Air, Water Services & Solid Waste Management 7.2 Educational Services 9.5 Electric Services, Gas and Combined Utilities 8.4 Executive, Legislative & General Government 27.5 General Medical & Surgical, Nursing and Personal Care 11.9 Health Services and Residential Care 10.3 Urban & Community Development, Housing Programs & Social Services 7.0 All other sectors less than 5% 12.9 ----- TOTAL 100.0%
MONEY MARKET FUNDS 33 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS ABBREVIATIONS AND OTHER INFORMATION MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of the net assets. Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate. Maturity dates represent either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities. EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS ABAG Association of Bay Area Governments AMBAC American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax BANS Bond Anticipation Notes Colld. Collateralized COPS Certificates of Participation CP Commercial Paper EDA Economic Development Authority FGIC Financial Guaranty Insurance Corporation FHLB Federal Home Loan Bank FHLMC Freddie Mac FNMA Federal National Mortgage Association FSA Financial Security Assurance GIC Guaranteed Investment Contract GNMA Government National Mortgage Association G.O. General Obligation Gtd. Guaranteed HFA Housing Finance Authority IDA Industrial Development Authority IDB Industrial Development Board IDR Industrial Development Revenue LOC Letter of Credit MBIA Municipal Bond Insurance Association MERLOTS Municipal Exempt Receipts Liquidity Optional Tender PCR Pollution Control Revenue P-Floats Puttable Floating Rate Securities MONEY MARKET FUNDS 34 NORTHERN FUNDS QUARTERLY REPORT MONEY MARKET FUNDS ABBREVIATIONS AND OTHER INFORMATION MUNICIPAL MONEY MARKET FUND (CONTINUED) DECEMBER 31, 2006 (UNAUDITED) PSF Permanent School Fund RANS Revenue Anticipation Notes ROCS Reset Option Certificates SFM Single Family Mortgage SGB Societe Generale Bank Soc Gen Societe Generale STARS Short Term Adjustable Rate Securities TRANS Tax and Revenue Anticipation Notes TRB Tax Revenue Bonds TSB Trustee Savings Bank VRDB Variable Rate Demand Bonds VRDN Variable Rate Demand Notes MONEY MARKET FUNDS 35 NORTHERN FUNDS QUARTERLY REPORT MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER INTERNATIONAL EQUITY FUND
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% AUSTRALIA - 1.6% Alumina Ltd. 902,300 $ 4,515 AMP Ltd. 195,663 1,560 CSL Ltd. 41,409 2,136 National Australia Bank Ltd. 49,200 1,569 Newcrest Mining Ltd. 104,750 2,179 Rio Tinto Ltd. 15,930 934 ------- 12,893 ------- AUSTRIA - 0.2% Erste Bank der Oesterreichischen Sparkassen A.G. 19,760 1,516 ------- BELGIUM - 1.3% Belgacom S.A. 138,120 6,085 Fortis 53,088 2,265 InBev N.V. 25,794 1,701 KBC Groep N.V. 3 -- ------- 10,051 ------- BRAZIL - 0.3% Centrais Eletricas Brasileiras S.A. 202,600 2,273 ------- CANADA - 4.0% AUR Resources, Inc. 41,300 859 Barrick Gold Corp. 349,490 10,729 HudBay Minerals, Inc. * 44,900 841 Inmet Mining Corp. 15,600 835 Ivanhoe Mines Ltd. * 286,400 2,815 Magna International, Inc., Class A 81,520 6,567 OPTI Canada, Inc. * 124,900 2,119 Patheon, Inc. * 109,920 476 Rogers Communications, Inc. 53,900 1,604 Suncor Energy, Inc. 41,000 3,235 Teck Cominco Ltd. 19,800 1,493 ------- 31,573 ------- CHINA - 0.9% Air China Ltd. 862,000 467 Bank of Communications Co. Ltd. 784,000 952 China Communications Construction Co. Ltd. * 2,203,000 2,178 Foxconn International Holdings Ltd. * 326,000 1,067 Industrial & Commercial Bank of China * 2,402,000 1,492 Yanzhou Coal Mining Co. Ltd. 1,525,000 1,231 ------- 7,387 ------- DENMARK - 0.6% Carlsberg A/S, Class B 17,050 1,693 FLSmidth & Co. A/S 26,850 1,707
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% -- CONTINUED DENMARK - 0.6% -- (CONTINUED) Novo-Nordisk A/S 18,040 $ 1,503 -------- 4,903 -------- FINLAND - 1.7% Nokia OYJ 223,737 4,573 Stora Enso OYJ ADR 112,400 1,775 Stora Enso OYJ (Registered) 419,100 6,640 -------- 12,988 -------- FRANCE - 9.1% Alcatel S.A. 137,916 1,985 Alstom * 26,792 3,633 Areva S.A. 4,200 3,122 BNP Paribas 35,084 3,828 Carrefour S.A. 34,383 2,085 Casino Guichard Perrachon S.A. 11,454 1,065 Cie de Saint-Gobain 23,320 1,960 Compagnie Generale de Geophysique S.A. * 18,773 4,070 France Telecom S.A. 35,293 976 Gemalto N.V. * 89,400 2,227 L'Oreal S.A. 28,710 2,877 Lafarge S.A. 6,620 985 Neopost S.A. 12,038 1,512 PPR 13,139 1,964 Sanofi-Aventis 48,744 4,502 Schneider Electric S.A. 7,087 787 Suez S.A. 75,207 3,895 Technip S.A. 33,100 2,273 Thales S.A. 118,870 5,929 Total S.A. 99,858 7,205 Total S.A. ADR 21,900 1,575 Vallourec 10,386 3,021 Veolia Environnement 54,823 4,227 Vivendi S.A. 141,714 5,540 -------- 71,243 -------- GERMANY - 6.7% Allianz SE 40,679 8,312 Altana A.G. 12,121 752 BASF A.G. 10,970 1,070 Bayer A.G. 33,639 1,806 Deutsche Bank A.G. (Registered) 23,268 3,113 Deutsche Postbank A.G. 37,382 3,157 Deutsche Telekom A.G. 104,050 1,901 Hugo Boss A.G. 5,949 322
MULTI-MANAGER FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% -- CONTINUED GERMANY - 6.7% -- (CONTINUED) Hypo Real Estate Holding A.G. 23,063 $ 1,454 Infineon Technologies A.G. * 42,903 605 IVG Immobilien A.G. 55,667 2,392 Metro A.G. 85,380 5,446 Muenchener Rueckversicherungs A.G. (Registered) 11,829 2,037 Premiere A.G. * 409,550 6,867 Puma A.G. Rudolf Dassler Sport 3,844 1,501 SAP A.G. 47,095 2,503 Siemens A.G. 54,697 5,426 Stada Arzneimittel A.G. 31,066 1,782 United Internet A.G. 102,265 1,692 -------- 52,138 -------- GREECE - 0.5% Hellenic Telecommunications Organization S.A. * 76,607 2,302 Piraeus Bank S.A. 55,875 1,801 -------- 4,103 -------- HONG KONG - 1.2% AAC Acoustic Technology Holdings, Inc. * 1,420,000 1,347 Cheung Kong Holdings Ltd. 122,000 1,502 Hutchison Telecommunications International Ltd. * 828,000 2,087 Melco International Development 932,000 2,210 Melco PBL Entertainment Macau Ltd. ADR * 3,813 81 Nine Dragons Paper Holdings Ltd. 1,271,000 2,190 -------- 9,417 -------- INDIA - 0.2% Infosys Technologies Ltd. ADR 31,000 1,691 -------- INDONESIA - 0.2% Bank Mandiri Persero Tbk PT 5,590,000 1,803 -------- IRELAND - 0.7% Anglo Irish Bank Corp. PLC 46,910 969 Kingspan Group PLC 160,977 4,272 -------- 5,241 -------- ITALY - 6.7% Alleanza Assicurazioni S.p.A. 197,280 2,633 Ansaldo STS S.p.A. * 188,730 2,230 Arnoldo Mondadori Editore S.p.A. 222,740 2,329 Assicurazioni Generali S.p.A. 50,234 2,207 Banco Popolare di Verona e Novara Scrl 47,780 1,372 Enel S.p.A. 849,471 8,765
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% -- CONTINUED ITALY - 6.7% -- (CONTINUED) ENI S.p.A. 342,055 $ 11,507 Mediaset S.p.A. 274,842 3,262 Telecom Italia S.p.A. 4,639,970 11,775 UniCredito Italiano S.p.A. 707,331 6,201 -------- 52,281 -------- JAPAN - 21.9% Acom Co. Ltd. 59,200 1,992 Astellas Pharma, Inc. 60,711 2,762 Bridgestone Corp. 70,200 1,567 Canon, Inc. 27,950 1,575 Chugai Pharmaceutical Co. Ltd. 72,800 1,503 Coca-Cola West Holdings Co. Ltd. 49,000 1,135 Dai Nippon Printing Co. Ltd. 436,000 6,739 Daiichi Sankyo Co. Ltd. 126,100 3,945 Daiwa House Industry Co. Ltd. 103,230 1,797 Daiwa Securities Group, Inc. 314,400 3,530 East Japan Railway Co. 295 1,972 Fanuc Ltd. 38,400 3,785 Fast Retailing Co. Ltd. 21,500 2,054 Fuji Television Network, Inc. 1,170 2,676 FUJIFILM Holdings Corp. 158,100 6,502 Haseko Corp. * 336,000 1,204 Honda Motor Co. Ltd. 41,300 1,632 Japan Tobacco, Inc. 766 3,704 Joyo Bank (The) Ltd. 507,685 2,805 JSR Corp. 65,000 1,684 Keyence Corp. 6,100 1,513 Kirin Brewery Co. Ltd. 300,000 4,720 Kose Corp. 46,340 1,403 Marui Co. Ltd. 65,800 768 Matsushita Electric Industrial Co. Ltd. 103,000 2,057 Millea Holdings, Inc. 63,200 2,232 Mitsubishi Electric Corp. 158,000 1,443 Mitsubishi Estate Co. Ltd. 199,900 5,178 Mitsubishi UFJ Financial Group, Inc. 341 4,216 Mitsui-Soko Co. Ltd. 242,142 1,405 NEC Electronics Corp. * 100,000 2,927 Nikko Cordial Corp. 78,000 895 Nippon Electric Glass Co. Ltd. 43,000 904 Nippon Telegraph & Telephone Corp. 179,400 4,447 Nipponkoa Insurance Co. Ltd. 506,200 4,108 Nomura Holdings, Inc. 358,658 6,772
NORTHERN FUNDS QUARTERLY REPORT 2 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER INTERNATIONAL EQUITY FUND (CONTINUED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% -- CONTINUED JAPAN - 21.9% -- (CONTINUED) NTT Data Corp. 604 $ 3,027 NTT DoCoMo, Inc. 869 1,374 ORIX Corp. 5,080 1,472 Pioneer Corp. 111,300 1,530 Promise Co. Ltd. 70,650 2,198 Ricoh Co. Ltd. 95,000 1,941 Sankyo Co. Ltd. 40,000 2,217 Secom Co. Ltd. 29,100 1,510 Sekisui House Ltd. 87,000 1,268 Seven & I Holdings Co. Ltd. 163,178 5,078 Sharp Corp. 117,000 2,017 Shin-Etsu Chemical Co. Ltd. 23,400 1,568 Shiseido Co. Ltd. 200,000 4,340 Sumco Corp. 44,100 3,731 Sumitomo Forestry Co. Ltd. 151,970 1,649 Sumitomo Mitsui Financial Group, Inc. 473 4,853 Sumitomo Realty & Development Co. Ltd. 33,000 1,060 Sumitomo Trust & Banking (The) Co. Ltd. 364,800 3,829 Suzuki Motor Corp. 75,622 2,137 T&D Holdings, Inc. 28,600 1,893 Takefuji Corp. 221,490 8,773 TDK Corp. 12,800 1,018 Tokuyama Corp. 105,000 1,600 Tokyo Electron Ltd. 21,400 1,688 Tokyu Land Corp. 83,000 783 Toyota Motor Corp. 26,100 1,747 Toyota Tsusho Corp. 51,000 1,368 Wacoal Holdings Corp. 169,000 2,298 West Japan Railway Co. 775 3,318 Yamada Denki Co. Ltd. 14,600 1,240 -------- 172,076 -------- MEXICO - 0.4% Alfa S.A. de C.V. 177,000 1,178 America Movil S.A. de C.V. ADR, Series L 39,700 1,795 -------- 2,973 -------- NETHERLANDS - 5.0% ABN AMRO Holding N.V. 36,271 1,166 Aegon N.V. 76,030 1,450 Akzo Nobel N.V. 26,707 1,629 European Aeronautic Defence and Space Co. N.V. 32,424 1,117 Heineken N.V. 50,610 2,408 ING Groep N.V. 154,337 6,845
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% -- CONTINUED NETHERLANDS - 5.0% -- (CONTINUED) Koninklijke Philips Electronics N.V. 89,655 $ 3,382 Koninklijke Philips Electronics N.V. (Registered) 43,900 1,650 Royal Dutch Shell PLC 101,680 3,587 Royal Dutch Shell PLC 94,680 6,736 Royal Dutch Shell PLC 54,776 1,920 Royal KPN N.V. 300,655 4,275 SBM Offshore N.V. 25,766 886 Unilever N.V. 82,470 2,254 -------- 39,305 -------- NORWAY - 0.6% Statoil ASA 73,657 1,952 Telenor ASA 166,000 3,122 -------- 5,074 -------- PAPUA NEW GUINEA - 0.3% Lihir Gold Ltd. * 881,150 2,170 -------- PORTUGAL - 0.3% Energias de Portugal S.A. 214,463 1,087 Energias de Portugal S.A. ADR 31,560 1,599 -------- 2,686 -------- RUSSIA - 0.2% OAO Gazprom ADR (OTC Exchange) 30,679 1,412 -------- SINGAPORE - 0.9% City Developments Ltd. 208,000 1,723 DBS Group Holdings Ltd. 288,100 4,246 SembCorp Marine Ltd. 488,000 1,082 -------- 7,051 -------- SOUTH AFRICA - 1.1% Anglogold Ashanti Ltd. ADR 116,650 5,493 Impala Platinum Holdings Ltd. 118,678 3,112 -------- 8,605 -------- SOUTH KOREA - 3.1% Hynix Semiconductor, Inc. * 18,730 734 Hyundai Engineering & Construction Co. Ltd. * 25,700 1,575 Hyundai Motor Co. Ltd. 22,670 1,643 Kookmin Bank * 29,760 2,400 Korea Electric Power Corp. * 187,410 4,256 KT Corp. * 317,190 8,041 Samsung Electronics Co. Ltd. 6,090 2,003 Samsung SDI Co. Ltd. * 216,600 3,744 -------- 24,396 --------
MULTI-MANEGAR FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% -- CONTINUED SPAIN - 1.1% Red Electrica de Espana 37,770 $ 1,620 Repsol YPF S.A. 139,664 4,831 Telefonica S.A. 86,853 1,849 -------- 8,300 -------- SWEDEN - 2.4% Assa Abloy AB 76,800 1,672 Boliden AB 71,400 1,836 Nordea Bank AB 346,612 5,343 SSAB Svenskt Stal AB, Series A 70,100 1,665 Telefonaktiebolaget LM Ericsson, Class B 1,551,586 6,268 Telefonaktiebolaget LM Ericsson ADR 40,400 1,625 -------- 18,409 -------- SWITZERLAND - 4.4% ABB Ltd. (Registered) 110,526 1,983 Clariant A.G. (Registered) * 215,500 3,229 Credit Suisse Group (Registered) 36,180 2,532 Nestle S.A. (Registered) 21,823 7,758 Novartis A.G. (Registered) 69,257 3,995 Phonak Holding A.G. (Registered) 15,606 1,243 Roche Holding A.G. (Genusschein) 31,428 5,638 Swiss Reinsurance (Registered) 9,375 797 Syngenta A.G. (Registered) * 9,196 1,712 UBS A.G. (Registered) 51,365 3,123 Xstrata PLC 20,940 1,045 Zurich Financial Services A.G. (Registered) 4,117 1,109 -------- 34,164 -------- TAIWAN - 1.4% Chunghwa Telecom Co. Ltd. ADR 467,249 9,219 United Microelectronics Corp. 1,415,000 879 United Microelectronics Corp. ADR 307,258 1,072 -------- 11,170 -------- THAILAND - 0.2% Bangkok Bank PCL 366,080 1,188 -------- UNITED KINGDOM - 15.5% Alliance Boots PLC 126,591 2,076 Anglo American PLC 88,590 4,321 ARM Holdings PLC 330,989 815 BAE Systems PLC 2,125 18 BAE Systems PLC 392,781 3,274 Barclays PLC 109,392 1,564 Berkeley Group Holdings PLC * 40,849 1,369 BP PLC ADR 70,200 4,710
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.0% -- CONTINUED UNITED KINGDOM - 15.5% -- (CONTINUED) British Land Co. PLC 56,146 $ 1,884 BT Group PLC 601,009 3,548 Burberry Group PLC 130,843 1,654 Cadbury Schweppes PLC 651,545 6,972 Carnival PLC 17,760 900 Dawnay Day Treveria PLC 722,626 1,188 Diageo PLC 309,372 6,073 Eurocastle Investment Ltd. 33,420 1,703 GlaxoSmithKline PLC 335,022 8,816 Imperial Chemical Industries PLC 222,491 1,969 Intercontinental Hotels Group PLC 78,173 1,932 International Power PLC 499,675 3,735 ITV PLC 182,378 380 J Sainsbury PLC 671,290 5,379 Kesa Electricals PLC 72,511 482 Kingfisher PLC 1,135,851 5,304 Land Securities Group PLC 94,753 4,310 Lloyds TSB Group PLC 192,865 2,158 Lonmin PLC 58,640 3,456 Marks & Spencer Group PLC 117,728 1,653 Prudential PLC 173,857 2,381 Reckitt Benckiser PLC 24,614 1,125 Rolls Royce Group PLC, Class B * 5,361,392 11 Rolls-Royce Group PLC * 185,788 1,629 Royal Bank of Scotland Group PLC 121,130 4,727 Scottish & Southern Energy PLC 56,290 1,713 Smiths Group PLC 80,741 1,567 Standard Chartered PLC 68,440 1,999 United Utilities PLC 260,300 3,975 Vodafone Group PLC 2,310,550 6,402 Vodafone Group PLC ADR 191,051 5,307 Whitbread PLC 74,401 2,440 WM Morrison Supermarkets PLC 272,888 1,360 Woolworths Group PLC 779,706 523 WPP Group PLC 377,050 5,098 -------- 121,900 -------- UNITED STATES - 0.3% Apex Silver Mines Ltd. * 160,200 2,546 -------- TOTAL COMMON STOCKS (COST $669,162) 744,926 --------
NORTHERN FUNDS QUARTERLY REPORT 4 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER INTERNATIONAL EQUITY FUND (continued)
NUMBER VALUE OF SHARES (000S) ----------- -------- PREFERRED STOCKS - 0.4% GERMANY - 0.4% Henkel KGaA 15,720 $ 2,314 Hugo Boss A.G. 22,371 1,150 -------- 3,464 -------- TOTAL PREFERRED STOCKS (COST $2,936) 3,464 WARRANTS - 0.3% Merrill Lynch * 189,748 2,021 Reliance Communications Ltd. Exp. 1/25/11 * 2,544 27 -------- TOTAL WARRANTS (COST $1,576) 2,048 INVESTMENT COMPANY - 5.2% Northern Institutional Funds - Diversified Assets Portfolio (1) 40,442,681 40,443 -------- TOTAL INVESTMENT COMPANY (COST $40,443) 40,443
PRINCIPAL AMOUNT VALUE (000S) (000S) ----------- -------- SHORT-TERM INVESTMENT - 0.3% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 2,645 2,645 -------- TOTAL SHORT-TERM INVESTMENT (COST $2,645) 2,645 -------- TOTAL INVESTMENTS - 101.2% (COST $716,762) 793,526 Liabilities less Other Assets - (1.2)% (9,445) -------- NET ASSETS - 100.0% $784,081
(1) NTI is an investment adviser of the Fund and the adviser of the Northern Institutional Funds. * Non-Income Producing Security At December 31, 2006, the industry sectors for the Multi-Manager International Equity Fund were:
% OF LONG-TERM INDUSTRY SECTOR INVESTMENTS --------------- -------------- Consumer Discretionary 11.3% Consumer Staples 7.0 Energy 7.8 Financials 18.8 Health Care 4.0 Industrials 21.4 Information Technology 6.6 Materials 8.8 Telecommunication Services 9.2 Utilities 5.1 ----- Total 100.0%
At December 31, 2006, the Multi-Manager International Equity Fund's investments were denominated in the following currencies:
% OF LONG-TERM CONCENTRATION BY CURRENCY INVESTMENTS ------------------------- -------------- Euro 33.5% Japanese Yen 22.3 British Pound 14.9 U.S. Dollar 13.4 All other currencies less than 5% 15.9 ----- Total 100.0%
At December 31, 2006, the Multi-Manager International Equity Fund had outstanding forward foreign currency exchange contracts as follows:
AMOUNT AMOUNT CONTRACTS (LOCAL (LOCAL UNREALIZED TO DELIVER CURRENCY) IN EXCHANGE CURRENCY) SETTLEMENT GAIN (LOSS) CURRENCY (000S) FOR CURRENCY (000S) DATE (000S) ----------- --------- ------------------ --------- ---------- ----------- U.S. Dollar 41 Australian Dollar 53 1/2/07 $-- U.S. Dollar 577 British Pound 295 1/2/07 1 U.S. Dollar 216 British Pound 111 1/2/07 -- U.S. Dollar 25 Danish Kroner 141 1/2/07 -- U.S. Dollar 38 Danish Kroner 217 1/2/07 --
MULTI-MANAGER FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
AMOUNT AMOUNT CONTRACTS (LOCAL (LOCAL UNREALIZED TO DELIVER CURRENCY) IN EXCHANGE CURRENCY) SETTLEMENT GAIN (LOSS) CURRENCY (000S) FOR CURRENCY (000S) DATE (000S) ----------- --------- ------------------ --------- ---------- ----------- U.S. Dollar 1,018 Euro 775 1/2/07 6 U.S. Dollar 357 Euro 272 1/2/07 2 U.S. Dollar 252 Euro 191 1/2/07 -- U.S. Dollar 21 Indonesian Rupiah 184,027 1/2/07 -- U.S. Dollar 10 Korean Won 9,452 1/2/07 -- U.S. Dollar 32 Norwegian Krone 198 1/2/07 -- U.S. Dollar 34 Norwegian Krone 211 1/2/07 -- U.S. Dollar 80 Swedish Krona 553 1/2/07 1 U.S. Dollar 61 Swedish Kronor 418 1/2/07 -- U.S. Dollar 15 Taiwanese Dollar 500 1/2/07 -- U.S. Dollar 92 Canadian Dollar 107 1/3/07 -- U.S. Dollar 693 Euro 525 1/3/07 -- U.S. Dollar 197 Euro 149 1/3/07 -- U.S. Dollar 15 Singaporean Dollar 23 1/3/07 -- U.S. Dollar 70 Swiss Franc 86 1/3/07 1 U.S. Dollar 145 Swiss Franc 178 1/3/07 -- U.S. Dollar 60 Australian Dollar 76 1/4/07 -- U.S. Dollar 317 British Pound 162 1/4/07 -- U.S. Dollar 526 Euro 399 1/4/07 -- U.S. Dollar 307 Japanese Yen 36,338 1/4/07 (1) U.S. Dollar 90 Japanese Yen 10,646 1/4/07 -- U.S. Dollar 54 Japanese Yen 6,463 1/5/07 -- U.S. Dollar 198 Japanese Yen 23.621 1/5/07 --
AMOUNT AMOUNT CONTRACTS (LOCAL (LOCAL UNREALIZED TO DELIVER CURRENCY) IN EXCHANGE CURRENCY) SETTLEMENT GAIN (LOSS) CURRENCY (000S) FOR CURRENCY (000S) DATE (000S) ----------- --------- ------------------ --------- ---------- ----------- U.S. Dollar 504 Japanese Yen 59,953 1/9/07 1 --- Total $11
Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $716,762 -------- Gross tax appreciation of investments $ 83,068 Gross tax depreciation of investments (6,304) -------- Net tax appreciation of investments $ 76,764 --------
NORTHERN FUNDS QUARTERLY REPORT 6 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER MID CAP FUND
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% ADVERTISING - 0.3% Focus Media Holding Ltd. ADR * 11,400 $ 757 -------- AEROSPACE/DEFENSE - 0.8% L-3 Communications Holdings, Inc. 24,200 1,979 -------- APPAREL - 1.8% Coach, Inc. * 63,750 2,739 Jones Apparel Group, Inc. 42,900 1,434 Kellwood Co. 13,500 439 -------- 4,612 -------- AUTO MANUFACTURERS - 0.2% Navistar International Corp. * 18,100 605 -------- AUTO PARTS & EQUIPMENT - 0.6% ArvinMeritor, Inc. 20,900 381 Goodyear Tire & Rubber (The) Co. * 26,500 556 TRW Automotive Holdings Corp. * 21,300 551 -------- 1,488 -------- BANKS - 4.0% Associated Banc-Corp 18,800 656 BancorpSouth, Inc. 13,000 349 Comerica, Inc. 33,400 1,960 Commerce Bancorp, Inc. of New Jersey 46,000 1,622 First Horizon National Corp. 15,600 652 FirstMerit Corp. 17,400 420 Huntington Bancshares, Inc. of Ohio 75,100 1,784 KeyCorp 43,200 1,643 UnionBanCal Corp. 17,200 1,053 -------- 10,139 -------- BEVERAGES - 1.0% Coca-Cola Enterprises, Inc. 52,600 1,074 Molson Coors Brewing Co., Class B 9,600 734 Pepsi Bottling Group, Inc. 21,900 677 -------- 2,485 -------- BIOTECHNOLOGY - 1.1% Genentech, Inc. * 17,900 1,452 Medimmune, Inc. * 25,400 822 Vertex Pharmaceuticals, Inc. * 12,800 479 -------- 2,753 -------- BUILDING MATERIALS - 0.6% Masco Corp. 47,400 1,416 -------- CHEMICALS - 3.7% Lubrizol Corp. 21,700 1,088 Olin Corp. 39,000 644
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% - CONTINUED CHEMICALS - 3.7% - (CONTINUED) OM Group, Inc. * 13,400 $ 607 PolyOne Corp. * 60,300 452 PPG Industries, Inc. 21,200 1,361 RPM International, Inc. 43,800 915 Schulman (A.), Inc. 30,200 672 Sensient Technologies Corp. 42,200 1,038 Sherwin-Williams (The) Co. 21,000 1,335 Spartech Corp. 21,100 553 Valspar Corp. 23,900 661 -------- 9,326 -------- COMMERCIAL SERVICES - 6.2% Advisory Board (The) Co. * 17,000 910 Alliance Data Systems Corp. * 46,825 2,925 Bright Horizons Family Solutions, Inc. * 28,700 1,110 Convergys Corp. * 13,900 331 Corporate Executive Board Co. 36,300 3,183 Donnelley (R.R.) & Sons Co. 23,700 842 Jackson Hewitt Tax Service, Inc. 8,900 302 Laureate Education, Inc. * 28,575 1,390 Monster Worldwide, Inc. * 22,400 1,045 Resources Connection, Inc. * 41,200 1,312 Robert Half International, Inc. 21,900 813 Strayer Education, Inc. 9,000 954 United Rentals, Inc. * 18,800 478 -------- 15,595 -------- COMPUTERS - 4.5% Cognizant Technology Solutions Corp., Class A * 55,495 4,282 Computer Sciences Corp. * 24,700 1,318 Factset Research Systems, Inc. 34,225 1,933 Lexmark International, Inc., Class A * 22,400 1,640 Research In Motion Ltd. * 7,200 920 SRA International, Inc., Class A * 43,975 1,176 -------- 11,269 -------- DISTRIBUTION/WHOLESALE - 1.4% CDW Corp. 23,450 1,649 Fastenal Co. 52,875 1,897 -------- 3,546 -------- DIVERSIFIED FINANCIAL SERVICES - 4.7% Affiliated Managers Group, Inc. * 24,350 2,560 AmeriCredit Corp. * 27,200 685
MULTI-MANAGER FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% - CONTINUED DIVERSIFIED FINANCIAL SERVICES - 4.7% - (CONTINUED) Chicago Mercantile Exchange Holdings, Inc., Class A 4,235 $ 2,159 CIT Group, Inc. 31,100 1,734 E*TRADE Financial Corp. * 40,300 903 Edwards (A.G.), Inc. 7,900 500 GFI Group, Inc. * 18,000 1,121 Nuveen Investments, Inc., Class A 29,550 1,533 Price (T. Rowe) Group, Inc. 11,700 512 -------- 11,707 -------- ELECTRIC - 4.9% Alliant Energy Corp. 39,700 1,499 American Electric Power Co., Inc. 40,500 1,724 Centerpoint Energy, Inc. 50,400 836 DTE Energy Co. 16,500 799 Energy East Corp. 28,500 707 OGE Energy Corp. 10,100 404 Pepco Holdings, Inc. 60,000 1,561 Pinnacle West Capital Corp. 28,300 1,434 Puget Energy, Inc. 37,000 938 Westar Energy, Inc. 38,600 1,002 Xcel Energy, Inc. 59,000 1,361 -------- 12,265 -------- ELECTRICAL COMPONENTS & EQUIPMENT - 0.2% Energy Conversion Devices, Inc. * 19,000 646 -------- ELECTRONICS - 0.6% Amphenol Corp., Class A 12,975 805 Sanmina-SCI Corp. * 58,200 201 Vishay Intertechnology, Inc. * 30,000 406 -------- 1,412 -------- ENGINEERING & CONSTRUCTION - 0.5% Foster Wheeler Ltd. * 20,900 1,152 -------- ENVIRONMENTAL CONTROL - 0.9% Stericycle, Inc. * 29,050 2,193 -------- FOOD - 1.2% Del Monte Foods Co. 36,900 407 JM Smucker (The) Co. 13,800 669 SUPERVALU, Inc. 17,800 636 Whole Foods Market, Inc. 30,000 1,408 -------- 3,120 --------
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% - CONTINUED FOREST PRODUCTS & PAPER - 0.6% MeadWestvaco Corp. 24,000 $ 722 Rock-Tenn Co., Class A 26,900 729 -------- 1,451 -------- GAS - 0.4% Nicor, Inc. 12,400 580 WGL Holdings, Inc. 14,300 466 -------- 1,046 -------- HAND/MACHINE TOOLS - 0.4% Black & Decker Corp. 11,900 952 -------- HEALTHCARE - PRODUCTS - 4.5% Abaxis, Inc. * 22,100 425 IDEXX Laboratories, Inc. * 21,750 1,725 Intralase Corp. * 24,900 557 Intuitive Surgical, Inc. * 9,400 902 Kinetic Concepts, Inc. * 21,100 835 Kyphon, Inc. * 23,795 961 Palomar Medical Technologies, Inc. * 10,500 532 Resmed, Inc. * 36,900 1,816 Stryker Corp. 32,950 1,816 Varian Medical Systems, Inc. * 34,975 1,664 -------- 11,233 -------- HEALTHCARE - SERVICES - 2.4% Apria Healthcare Group, Inc. * 35,400 943 Covance, Inc. * 24,300 1,432 Coventry Health Care, Inc. * 21,700 1,086 Express Scripts, Inc. * 13,800 988 Healthways, Inc. * 28,825 1,375 Universal Health Services, Inc., Class B 3,400 189 -------- 6,013 -------- HOME FURNISHINGS - 1.2% Ethan Allen Interiors, Inc. 33,600 1,213 Harman International Industries, Inc. 13,950 1,394 Whirlpool Corp. 6,200 515 -------- 3,122 -------- HOUSEHOLD PRODUCTS/WARES - 0.7% Blyth, Inc. 25,500 529 Harland (John H.) Co. 24,900 1,250 -------- 1,779 -------- INSURANCE - 6.5% Assurant, Inc. 13,400 740 Brown & Brown, Inc. 41,350 1,167
NORTHERN FUNDS QUARTERLY REPORT 2 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER MID CAP FUND (continued)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% - CONTINUED INSURANCE - 6.5% - (CONTINUED) CIGNA Corp. 6,900 $ 908 Cincinnati Financial Corp. 19,400 879 Commerce Group, Inc. 37,200 1,107 eHealth, Inc. * 13,100 263 Hub International Ltd. 12,400 389 Lincoln National Corp. 13,500 896 MBIA, Inc. 21,800 1,593 MGIC Investment Corp. 25,800 1,614 National Interstate Corp. 36,437 885 Nationwide Financial Services, Inc., Class A 30,300 1,642 PMI Group (The), Inc. 17,800 840 Presidential Life Corp. 19,600 430 Radian Group, Inc. 15,100 814 SAFECO Corp. 32,800 2,052 -------- 16,219 -------- INTERNET - 2.7% Akamai Technologies, Inc. * 23,200 1,233 Checkfree Corp. * 12,900 518 Ctrip.com International Ltd. ADR 19,800 1,237 Equinix, Inc. * 7,700 582 NetFlix, Inc. * 34,700 897 Opsware, Inc. * 90,000 794 WebEx Communications, Inc. * 39,800 1,389 -------- 6,650 -------- IRON/STEEL - 0.7% Steel Dynamics, Inc. 30,200 980 United States Steel Corp. 10,400 761 -------- 1,741 -------- LEISURE TIME - 0.6% Brunswick Corp. 15,600 498 K2, Inc. * 33,700 444 Sabre Holdings Corp., Class A 21,600 689 -------- 1,631 -------- LODGING - 0.6% Melco PBL Entertainment Macau Ltd. ADR * 13,100 279 Wynn Resorts Ltd. 13,000 1,220 -------- 1,499 -------- MACHINERY - CONSTRUCTION & MINING - 1.0% Joy Global, Inc. 49,525 2,394 --------
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% - CONTINUED MACHINERY - DIVERSIFIED - 0.4% AGCO Corp. * 22,300 $ 690 Albany International Corp., Class A 10,500 346 -------- 1,036 -------- MEDIA - 1.0% Belo Corp., Class A 35,400 650 Gannett Co., Inc. 20,200 1,221 Tribune Co. 23,900 736 -------- 2,607 -------- METAL FABRICATION/HARDWARE - 0.4% Timken (The) Co. 34,000 992 -------- MISCELLANEOUS MANUFACTURING - 2.3% Donaldson Co., Inc. 33,150 1,151 Leggett & Platt, Inc. 50,900 1,216 Roper Industries, Inc. 35,525 1,785 SPX Corp. 26,000 1,590 -------- 5,742 -------- OFFICE/BUSINESS EQUIPMENT - 0.9% IKON Office Solutions, Inc. 34,200 560 Xerox Corp. * 103,900 1,761 -------- 2,321 -------- OIL & GAS - 3.1% Apache Corp. 26,125 1,738 Hess Corp. 23,400 1,160 Patterson-UTI Energy, Inc. 29,100 676 Sunoco, Inc. 22,000 1,372 Tesoro Corp. 6,500 427 XTO Energy, Inc. 48,250 2,270 -------- 7,643 -------- OIL & GAS SERVICES - 3.7% BJ Services Co. 48,775 1,430 FMC Technologies, Inc. * 18,200 1,121 SEACOR Holdings, Inc. * 9,400 932 Smith International, Inc. 85,125 3,496 Tidewater, Inc. 12,900 624 Veritas DGC, Inc. * 18,100 1,550 -------- 9,153 -------- PACKAGING & CONTAINERS - 0.2% Sonoco Products Co. 13,900 529 --------
MULTI-MANAGER FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% - CONTINUED PHARMACEUTICALS - 0.8% CV Therapeutics, Inc. * 25,900 $ 362 King Pharmaceuticals, Inc. * 76,400 1,216 Salix Pharmaceuticals Ltd. * 30,200 367 -------- 1,945 -------- PIPELINES - 0.2% National Fuel Gas Co. 12,100 466 -------- REAL ESTATE INVESTMENT TRUSTS - 3.2% American Home Mortgage Investment Corp. 15,000 527 Anthracite Capital, Inc. 52,100 663 Entertainment Properties Trust 14,000 818 Equity Inns, Inc. 27,700 442 FelCor Lodging Trust, Inc. 13,200 288 Hospitality Properties Trust 24,700 1,174 Innkeepers USA Trust 28,100 436 Newcastle Investment Corp. 25,100 786 Parkway Properties, Inc. of Maryland 14,800 755 PS Business Parks, Inc. 10,300 728 RAIT Investment Trust 18,000 621 Ramco-Gershenson Properties 19,400 740 -------- 7,978 -------- RETAIL - 7.1% Bed Bath & Beyond, Inc. * 36,650 1,396 BJ's Wholesale Club, Inc. * 20,800 647 Borders Group, Inc. 10,300 230 Cheesecake Factory (The), Inc. * 21,700 534 Chipotle Mexican Grill, Inc., Class A * 6,800 388 Chipotle Mexican Grill, Inc., Class B* 7,200 374 Coldwater Creek, Inc. * 44,325 1,087 Dick's Sporting Goods, Inc. * 39,675 1,944 Dillard's, Inc., Class A 26,600 930 Family Dollar Stores, Inc. 34,300 1,006 O'Reilly Automotive, Inc. * 74,125 2,377 P.F. Chang's China Bistro, Inc. * 12,300 472 Panera Bread Co., Class A * 33,150 1,853 Petsmart, Inc. 46,925 1,354 Ruby Tuesday, Inc. 45,100 1,238 Tractor Supply Co. * 16,200 724 Urban Outfitters, Inc. * 38,900 896 Zumiez, Inc. * 13,200 390 -------- 17,840 -------- SAVINGS & LOANS - 0.1% Washington Federal, Inc. 13,500 318 --------
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 98.2% - CONTINUED SEMICONDUCTORS - 2.1% Atmel Corp. * 55,200 $ 334 Broadcom Corp., Class A * 30,900 998 Hittite Microwave Corp. * 17,400 562 Linear Technology Corp. 15,400 467 Marvell Technology Group Ltd. * 55,700 1,069 MKS Instruments, Inc. * 20,000 451 Novellus Systems, Inc. * 22,100 761 Photronics, Inc. * 15,400 252 Zoran Corp. * 19,800 289 -------- 5,183 -------- SOFTWARE - 6.7% Adobe Systems, Inc. * 57,900 2,381 Ansys, Inc. * 20,400 887 Cerner Corp. * 42,300 1,925 Citrix Systems, Inc. * 57,900 1,566 Electronic Arts, Inc. * 28,700 1,445 Fiserv, Inc. * 43,500 2,280 Global Payments, Inc. 38,400 1,778 Intuit, Inc. * 56,925 1,737 Salesforce.com, Inc. * 26,900 980 SEI Investments Co. 23,700 1,412 SYNNEX Corp. * 13,300 292 -------- 16,683 -------- TELECOMMUNICATIONS - 1.2% Amdocs Ltd. * 59,050 2,288 RF Micro Devices, Inc. * 98,100 666 -------- 2,954 -------- TOYS, GAMES & HOBBIES - 1.2% Hasbro, Inc. 64,700 1,763 Mattel, Inc. 53,100 1,203 -------- 2,966 -------- TRANSPORTATION - 2.1% CH Robinson Worldwide, Inc. 34,850 1,425 Expeditors International Washington, Inc. 42,750 1,732 Overseas Shipholding Group 12,500 704 Ryder System, Inc. 9,500 485 YRC Worldwide, Inc. * 21,000 792 -------- 5,138 -------- TOTAL COMMON STOCKS (COST $228,160) 245,689
NORTHERN FUNDS QUARTERLY REPORT 4 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS DECEMBER 31, 2006 (UNAUDITED) MULTI-MANAGER MID CAP FUND (continued)
NUMBER VALUE OF SHARES (000S) ----------- -------- INVESTMENT COMPANY - 1.2% Northern Institutional Funds - Diversified Assets Portfolio (1) 2,999,965 $ 3,000 -------- TOTAL INVESTMENT COMPANY (COST $3,000) 3,000
PRINCIPAL AMOUNT VALUE (000S) (000S) ----------- -------- SHORT-TERM INVESTMENT - 0.7% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 1,741 1,741 -------- TOTAL SHORT-TERM INVESTMENT (COST $1,741) 1,741 -------- TOTAL INVESTMENTS - 100.1% (COST $232,901) 250,430 Liabilities less Other Assets - (0.1)% (339) -------- NET ASSETS - 100.0% $250,091
(1) NTI is an investment adviser of the Fund and the adviser of the Northern Institutional Funds. * Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $232,901 Gross tax appreciation of investments $ 21,929 Gross tax depreciation of investments (4,400) -------- Net tax appreciation of investments $ 17,529 --------
MULTI-MANAGER FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER SMALL CAP FUND
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% ADVERTISING - 1.1% Catalina Marketing Corp. 6,307 $ 174 inVentiv Health, Inc. * 32,420 1,146 Sitel Corp. * 11,833 50 ValueVision Media, Inc., Class A * 56,270 739 -------- 2,109 -------- AEROSPACE/DEFENSE - 0.3% Heico Corp. 2,050 80 Sequa Corp., Class A * 320 37 Triumph Group, Inc. 5,371 281 United Industrial Corp. of New York 2,333 118 -------- 516 -------- AGRICULTURE - 0.5% Alliance One International, Inc. * 1,400 10 Andersons (The), Inc. 22,025 934 -------- 944 -------- APPAREL - 1.4% Coach, Inc. * 15,825 680 CROCS, Inc. * 16,045 693 Deckers Outdoor Corp. * 1,000 60 Gildan Activewear, Inc. * 9,305 434 Gymboree Corp. * 8,200 313 Jones Apparel Group, Inc. 1,710 57 Kellwood Co. 6,920 225 Perry Ellis International, Inc. * 3,354 137 Skechers U.S.A., Inc., Class A * 2,100 70 -------- 2,669 -------- AUTO PARTS & EQUIPMENT - 0.9% Aftermarket Technology Corp. * 38,700 823 Autoliv, Inc. 1,450 87 BorgWarner, Inc. 9,500 561 Keystone Automotive Industries, Inc. * 1,200 41 Lear Corp. 7,300 216 -------- 1,728 -------- BANKS - 4.7% BancTrust Financial Group, Inc. 1,504 39 Boston Private Financial Holdings, Inc. 32,000 903 Cascade Bancorp 6,705 208 Cathay General Bancorp 27,840 961 Center Financial Corp. 760 18 Central Pacific Financial Corp. 2,380 92 Chittenden Corp. 1,900 58
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED BANKS - 4.7% - (CONTINUED) Community Trust Bancorp, Inc. 540 $ 23 CVB Financial Corp. 23,400 338 First Bancorp of North Carolina 1,570 34 First Regional Bancorp of California * 2,122 72 First Republic Bank of California 26,000 1,016 First South Bancorp, Inc. of North Carolina 1,029 33 FNB Corp. of Virginia 844 35 Frontier Financial Corp. 2,850 83 Greater Bay Bancorp 8,325 219 Hancock Holding Co. 813 43 Hanmi Financial Corp. 15,988 360 Heritage Commerce Corp. 1,400 37 Horizon Financial Corp. 1,761 42 Intervest Bancshares Corp. * 2,120 73 Investors Financial Services Corp. 12,310 525 Lakeland Financial Corp. 500 13 Preferred Bank of California 3,548 213 Prosperity Bancshares, Inc. 24,000 828 Renasant Corp. 1,400 43 Shore Bancshares, Inc. 994 30 Signature Bank of New York * 18,320 568 Superior Bancorp * 72,000 817 Trico Bancshares 2,050 56 Trustmark Corp. 1,331 44 Virginia Commerce Bancorp * 4,940 98 W. Holding Co., Inc. 149,500 891 Wilshire Bancorp, Inc. 8,550 162 -------- 8,975 -------- BEVERAGES - 0.0% National Beverage Corp. * 4,210 59 -------- BIOTECHNOLOGY - 1.4% Applera Corp. (Celera Genomics Group) * 15,720 220 Bio-Rad Laboratories, Inc., Class A * 1,060 88 Cambrex Corp. 1,500 34 Illumina, Inc. * 6,718 264 Integra LifeSciences Holdings Corp. * 36,310 1,546 Maxygen, Inc. * 1,800 19 Millennium Pharmaceuticals, Inc. * 31,919 348 Myriad Genetics, Inc. * 3,200 100 Savient Pharmaceuticals, Inc. * 9,897 111 -------- 2,730 --------
MULTI-MANAGER FUNDS 1 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED BUILDING MATERIALS - 0.0% Comfort Systems USA, Inc. 3,450 $ 44 -------- CHEMICALS - 1.7% Airgas, Inc. 14,080 570 Arch Chemicals, Inc. 1,097 37 Ashland, Inc. 23 2 CF Industries Holdings, Inc. 7,540 193 Innospec, Inc. 3,434 160 Landec Corp. * 53,100 571 NewMarket Corp. 1,624 96 OM Group, Inc. * 8,068 365 PolyOne Corp. * 10,290 77 RPM International, Inc. 39,000 815 Stepan Co. 2,450 78 Terra Industries, Inc. * 15,430 185 -------- 3,149 -------- COMMERCIAL SERVICES - 10.0% Adesa, Inc. 38,000 1,055 Albany Molecular Research, Inc. * 6,107 65 Alliance Data Systems Corp. * 19,115 1,194 Arbitron, Inc. 1,130 49 Central Parking Corp. 5,290 95 Coinstar, Inc. * 15,650 478 Consolidated Graphics, Inc. * 1,500 89 Corinthian Colleges, Inc. * 67,000 913 Corvel Corp. * 4,224 201 CPI Corp. 3,429 159 CRA International, Inc. * 15,450 810 Dollar Thrifty Automotive Group * 3,685 168 Electro Rent Corp. * 2,490 42 Euronet Worldwide, Inc. * 37,510 1,114 FirstService Corp. * 53,140 1,228 FTI Consulting, Inc. * 10,600 296 Gartner, Inc. * 36,000 712 Heartland Payment Systems, Inc. 35,900 1,014 Huron Consulting Group, Inc. * 39,020 1,769 ICT Group, Inc. * 1,060 33 Kforce, Inc. * 127,055 1,546 Laureate Education, Inc. * 29,230 1,421 MPS Group, Inc. * 21,790 309 Navigant Consulting, Inc. * 49,000 968 PHH Corp. * 11,258 325 Providence Service (The) Corp. * 30,005 754
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED COMMERCIAL SERVICES - 10.0% - (CONTINUED) Rewards Network, Inc. * 2,842 $ 20 SAIC, Inc. * 37,870 674 Service Corp. International 8,010 82 Spherion Corp. * 26,311 196 Standard Parking Corp. * 371 14 TeleTech Holdings, Inc. * 2,480 59 Viad Corp. 900 37 Volt Information Sciences, Inc. * 8,711 437 WNS Holdings Ltd. ADR* 19,040 592 -------- 18,918 -------- COMPUTERS - 3.0% Agilysys, Inc. 4,020 67 Ansoft Corp. * 6,131 170 Brocade Communications Systems, Inc. * 47,025 386 CACI International, Inc., Class A * 17,720 1,001 CIBER, Inc. * 4,613 31 Manhattan Associates, Inc. * 31,600 950 McData Corp., Class A * 47,700 265 Mentor Graphics Corp. * 14,283 258 NetList, Inc. * 31,190 303 Netscout Systems, Inc. * 17,433 145 Radiant Systems, Inc. * 77,220 806 SYKES Enterprises, Inc. * 2,110 37 Synopsys, Inc. * 14,580 390 Unisys Corp. * 121,500 953 -------- 5,762 -------- DISTRIBUTION/WHOLESALE - 3.3% Beacon Roofing Supply, Inc. * 51,360 967 BlueLinx Holdings, Inc. 3,480 36 Central European Distribution Corp. * 36,615 1,087 Directed Electronics, Inc. * 55,175 632 Huttig Building Products, Inc. * 74,500 394 Ingram Micro, Inc., Class A * 1,840 38 Pool Corp. 16,490 646 Scansource, Inc. * 42,530 1,293 Tech Data Corp. * 2,797 106 United Stationers, Inc. * 21,038 982 -------- 6,181 -------- DIVERSIFIED FINANCIAL SERVICES - 3.0% Affiliated Managers Group, Inc. * 6,900 725 Credit Acceptance Corp. * 2,928 98 IntercontinentalExchange, Inc. * 9,830 1,061
NORTHERN FUNDS QUARTERLY REPORT 2 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE O FINVESTMENTS MULTI-MANAGER SMALL CAP FUND (continued)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED DIVERSIFIED FINANCIAL SERVICES - 3.0% - (CONTINUED) Knight Capital Group, Inc., Class A * 4,910 $ 94 National Financial Partners Corp. 23,760 1,045 optionsXpress Holdings, Inc. 5,023 114 Penson Worldwide, Inc. * 39,565 1,084 Piper Jaffray Cos. * 1,620 105 SWS Group, Inc. 3,651 130 TradeStation Group, Inc. * 5,735 79 World Acceptance Corp. * 23,634 1,110 -------- 5,645 -------- ELECTRIC - 1.9% Avista Corp. 8,571 217 Central Vermont Public Service Corp. 2,450 58 Dynegy, Inc., Class A * 145,800 1,056 Idacorp, Inc. 3,140 121 ITC Holdings Corp. 24,400 973 NorthWestern Corp. 1,210 43 Pike Electric Corp. * 46,000 751 Portland General Electric Co. 1,330 36 Reliant Energy, Inc. * 4,000 57 Unisource Energy Corp. 3,000 110 Westar Energy, Inc. 3,135 81 -------- 3,503 -------- ELECTRICAL COMPONENTS & EQUIPMENT - 0.8% Ametek, Inc. 19,800 630 Belden CDT, Inc. 8,900 348 Encore Wire Corp. 3,994 88 General Cable Corp. * 3,440 150 Greatbatch, Inc. * 412 11 Superior Essex, Inc. * 7,600 253 -------- 1,480 -------- ELECTRONICS - 3.1% Analogic Corp. 430 24 Benchmark Electronics, Inc. * 33,200 809 Coherent, Inc. * 24,340 768 Flir Systems, Inc. * 39,650 1,262 LoJack Corp. * 35,000 598 Molecular Devices Corp. * 4,852 102 Planar Systems, Inc. * 5,240 50 Sonic Solutions, Inc. * 42,500 693 TTM Technologies, Inc. * 62,920 713 Waters Corp. * 1,100 54 Watts Water Technologies, Inc., Class A 19,700 810
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED ELECTRONICS - 3.1% - (CONTINUED) Woodward Governor Co. 398 $ 16 Zygo Corp. * 2,200 36 -------- 5,935 -------- ENERGY - ALTERNATE SOURCES - 0.4% Headwaters, Inc. * 22,790 546 MGP Ingredients, Inc. 5,300 120 -------- 666 -------- ENGINEERING & CONSTRUCTION - 0.2% EMCOR Group, Inc. * 6,370 362 Granite Construction, Inc. 291 15 -------- 377 -------- ENTERTAINMENT - 1.4% Carmike Cinemas, Inc. 18,000 367 Dover Downs Gaming & Entertainment, Inc. 10,156 136 Lions Gate Entertainment Corp. * 91,630 983 Penn National Gaming, Inc. * 15,780 657 Scientific Games Corp., Class A * 16,970 513 -------- 2,656 -------- FOOD - 1.7% Fresh Del Monte Produce, Inc. 22,000 328 Great Atlantic & Pacific Tea Co. 1,190 31 Imperial Sugar Co. 7,560 183 Ingles Markets, Inc., Class A 3,160 94 J & J Snack Foods Corp. 24,000 993 Performance Food Group Co. * 24,883 688 Ralcorp Holdings, Inc. * 1,300 66 Spartan Stores, Inc. 5,973 125 SunOpta, Inc. * 77,475 682 -------- 3,190 -------- FOREST PRODUCTS & PAPER - 0.6% Neenah Paper, Inc. 26,800 947 Rock-Tenn Co., Class A 3,535 96 Schweitzer-Mauduit International, Inc. 3,890 101 -------- 1,144 -------- GAS - 0.5% New Jersey Resources Corp. 20,700 1,006 -------- HEALTHCARE - PRODUCTS - 5.4% Abaxis, Inc. * 7,770 150 Advanced Medical Optics, Inc. * 28,000 985 Cooper Cos., Inc. 22,000 979 DJO, Inc. * 22,940 982
MULTI-MANAGER FUNDS 3 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED HEALTHCARE - PRODUCTS - 5.4% - (CONTINUED) Immucor, Inc. * 3,890 $ 114 Kyphon, Inc. * 30,110 1,216 Mentor Corp. 4,200 205 NuVasive, Inc. * 38,380 887 Palomar Medical Technologies, Inc. * 4,477 227 Resmed, Inc. * 36,765 1,810 SurModics, Inc. * 21,690 675 Varian Medical Systems, Inc. * 14,010 666 Viasys Healthcare, Inc. * 1,800 50 West Pharmaceutical Services, Inc. 19,455 997 Zoll Medical Corp. * 3,240 189 -------- 10,132 -------- HEALTHCARE - SERVICES - 2.9% AMERIGROUP Corp. * 11,980 430 Genesis HealthCare Corp. * 118 6 Healthways, Inc. * 25,590 1,221 Kindred Healthcare, Inc. * 7,400 187 Magellan Health Services, Inc. * 1,900 82 Matria Healthcare, Inc. * 33,090 951 Molina Healthcare, Inc. * 3,962 129 Option Care, Inc. 42,000 598 Psychiatric Solutions, Inc. * 27,410 1,028 United Surgical Partners International, Inc. * 33,500 950 -------- 5,582 -------- HOME BUILDERS - 0.7% Amrep Corp. 1,845 226 Thor Industries, Inc. 13,000 572 Winnebago Industries, Inc. 16,750 551 -------- 1,349 -------- HOME FURNISHINGS - 0.5% American Woodmark Corp. 960 40 Harman International Industries, Inc. 6,880 687 Kimball International, Inc., Class B 2,900 71 Tempur-Pedic International, Inc. * 10,400 213 -------- 1,011 -------- HOUSEHOLD PRODUCTS/WARES - 0.5% American Greetings Corp., Class A 5,975 143 CSS Industries, Inc. 700 25 Jarden Corp. * 20,565 715 Yankee Candle Co., Inc. 2,160 74 -------- 957 --------
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED INSURANCE - 3.5% American Physicians Capital, Inc. * 1,876 $ 75 Argonaut Group, Inc. * 2,700 94 Assured Guaranty Ltd. 28,230 751 FBL Financial Group, Inc., Class A 780 30 FPIC Insurance Group, Inc. * 632 25 Infinity Property & Casualty Corp. 22,200 1,074 Odyssey Re Holdings Corp. 8,100 302 Presidential Life Corp. 1,360 30 Primus Guaranty Ltd. * 47,250 546 SCPIE Holdings, Inc. * 760 20 SeaBright Insurance Holdings, Inc. * 7,139 129 Selective Insurance Group, Inc. 19,081 1,093 Stancorp Financial Group, Inc. 17,400 784 Stewart Information Services Corp. 16,700 724 Tower Group, Inc. 1,330 41 W.R. Berkley Corp. 23,645 816 -------- 6,534 -------- INTERNET - 3.7% Art Technology Group, Inc. * 14,165 33 CyberSource Corp. * 58,650 646 Digital Insight Corp. * 940 36 Digital River, Inc. * 2,400 134 F5 Networks, Inc. * 7,480 555 Imergent, Inc. * 17,700 507 Infospace, Inc. * 8,293 170 Interwoven, Inc. * 13,976 205 j2 Global Communications, Inc. * 38,430 1,047 Knot (The), Inc. * 4,400 116 RealNetworks, Inc. * 16,060 176 S1 Corp. * 23,890 132 Sohu.com, Inc. * 2,000 48 SonicWALL, Inc. * 21,396 180 Tumbleweed Communications Corp. * 196,190 516 ValueClick, Inc. * 64,320 1,520 Vignette Corp. * 4,160 71 WebEx Communications, Inc. * 23,400 816 webMethods, Inc. * 19,046 140 -------- 7,048 -------- INVESTMENT COMPANIES - 0.5% Capital Southwest Corp. 105 13 Gladstone Capital Corp. 1,600 38
NORTHERN FUNDS QUARTERLY REPORT 4 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER SMALL CAP FUND (continued)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED INVESTMENT COMPANIES - 0.5% - (CONTINUED) Medallion Financial Corp. 65,460 $ 810 -------- 861 -------- IRON/STEEL - 0.1% Olympic Steel, Inc. 3,439 77 Wheeling-Pittsburgh Corp. * 7,910 148 -------- 225 -------- LEISURE TIME - 0.9% Cybx International, Inc. * 109,345 657 K2, Inc. * 58,800 775 WMS Industries, Inc. * 6,500 227 -------- 1,659 -------- LODGING - 0.1% Lodgian, Inc. * 6,131 83 Marcus Corp. 5,940 152 -------- 235 -------- MACHINERY - DIVERSIFIED - 0.6% AGCO Corp. * 5,290 164 Flow International Corp. * 62,320 687 Gerber Scientific, Inc. * 4,899 61 NACCO Industries, Inc., Class A 1,610 220 -------- 1,132 -------- MEDIA - 1.2% Central European Media Enterprises Ltd. * 16,900 1,183 Cox Radio, Inc., Class A * 17,546 286 Radio One, Inc., Class D * 40,700 274 Saga Communications, Inc., Class A * 25,000 240 Scholastic Corp. * 6,380 229 -------- 2,212 -------- METAL FABRICATION/HARDWARE - 0.0% Ampco-Pittsburgh Corp. 990 33 -------- MINING - 0.1% USEC, Inc. * 14,380 183 -------- MISCELLANEOUS MANUFACTURING - 2.9% Acuity Brands, Inc. 3,020 157 EnPro Industries, Inc. * 1,977 66 Freightcar America, Inc. 1,000 56 Harsco Corp. 10,800 822 Hexcel Corp. * 52,000 905 Matthews International Corp., Class A 37,850 1,489 Roper Industries, Inc. 15,800 794 Smith (A.O.) Corp. 4,000 150
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED MISCELLANEOUS MANUFACTURING - 2.9% - (CONTINUED) SPX Corp. 2,206 $ 135 Tredegar Corp. 38,349 867 -------- 5,441 -------- OFFICE/BUSINESS EQUIPMENT - 0.2% IKON Office Solutions, Inc. 25,369 415 -------- OIL & GAS - 0.9% Holly Corp. 5,552 285 Houston Exploration Co. * 600 31 Quicksilver Resources, Inc. * 26,500 970 Swift Energy Co. * 8,030 360 -------- 1,646 -------- OIL & GAS SERVICES - 1.6% Lufkin Industries, Inc. 12,340 717 Matrix Service Co. * 2,400 39 Oceaneering International, Inc. * 24,300 965 Tetra Technologies, Inc. * 28,045 717 Tidewater, Inc. 3,500 169 Trico Marine Services, Inc. * 3,893 149 Universal Compression Holdings, Inc. * 2,000 124 Veritas DGC, Inc. * 903 77 -------- 2,957 -------- PACKAGING & CONTAINERS - 0.1% AEP Industries, Inc. * 1,900 101 -------- PHARMACEUTICALS - 2.9% Alkermes, Inc. * 15,863 212 Barr Pharmaceuticals, Inc. * 11,825 593 Caraco Pharmaceutical Laboratories Ltd. * 9,980 140 Cephalon, Inc. * 1,200 84 Combinatorx, Inc. * 6,300 55 King Pharmaceuticals, Inc. * 13,196 210 NBTY, Inc. * 5,435 226 Noven Pharmaceuticals, Inc. * 10,799 275 Nuvelo, Inc. * 900 4 Pain Therapeutics, Inc. * 18,558 165 Par Pharmaceutical Cos., Inc. * 20,500 459 Pozen, Inc. * 4,200 71 Santarus, Inc. * 114,100 893 Sciele Pharma, Inc. * 48,100 1,154 USANA Health Sciences, Inc. * 3,528 182 VCA Antech, Inc. * 20,305 654 Watson Pharmaceuticals, Inc. * 777 20 -------- 5,397 --------
MULTI-MANAGER FUNDS 5 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED PIPELINES - 0.0% Oneok, Inc. 900 $ 39 -------- REAL ESTATE - 0.1% Avatar Holdings, Inc. * 303 24 Jones Lang LaSalle, Inc. 1,235 114 -------- 138 -------- REAL ESTATE INVESTMENT TRUSTS - 1.5% American Home Mortgage Investment Corp. 11,883 417 Arbor Realty Trust, Inc. 4,160 125 Crystal River Capital, Inc. 1,500 38 FelCor Lodging Trust, Inc. 5,450 119 Franklin Street Properties Corp. 6,414 135 Gramercy Capital Corp. of New York 850 26 HRPT Properties Trust 4,000 50 Mack-Cali Realty Corp. 2,500 128 Medical Properties Trust, Inc. 17,832 273 New Century Financial Corp. 5,281 167 Newkirk Realty Trust, Inc. 19,457 351 NorthStar Realty Finance Corp. 9,470 157 RAIT Investment Trust 6,402 221 Redwood Trust, Inc. 2,100 122 Senior Housing Properties Trust 8,143 199 SL Green Realty Corp. 90 12 Spirit Finance Corp. 21,040 262 Winston Hotels, Inc. 8,838 117 -------- 2,919 -------- RETAIL - 5.7% Abercrombie & Fitch Co., Class A 8,960 624 AC Moore Arts & Crafts, Inc. * 59,300 1,285 Asbury Automotive Group, Inc. 6,157 145 Autonation, Inc. * 3,240 69 Big Lots, Inc. * 4,030 92 Bob Evans Farms, Inc. 1,900 65 Books-A-Million, Inc. 2,320 53 Brown Shoe Co., Inc. 3,140 150 Buffalo Wild Wings, Inc. * 2,100 112 CEC Entertainment, Inc. * 7,440 299 Charming Shoppes, Inc. * 3,100 42 Christopher & Banks Corp. 1,710 32 Dillard's, Inc., Class A 5,280 185 Dress Barn, Inc. * 3,780 88 Duckwall-ALCO Stores, Inc. * 13,870 541 Ezcorp, Inc., Class A * 3,672 60
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED RETAIL - 5.7% - (CONTINUED) First Cash Financial Services, Inc. * 1,880 $ 49 Fred's, Inc. 31,500 379 Haverty Furniture Cos., Inc. 2,600 38 Jack in the Box, Inc. * 6,810 416 Jo-Ann Stores, Inc. * 6,400 157 Jos. A. Bank Clothiers, Inc. * 24,560 721 Landry's Restaurants, Inc. 2,100 63 McCormick & Schmick's Seafood Restaurants, Inc. * 25,480 613 O'Charleys, Inc. * 6,230 133 Office Depot, Inc. * 20,290 774 Papa John's International, Inc. * 4,294 125 Payless Shoesource, Inc. * 2,300 75 Rush Enterprises, Inc., Class A * 3,960 67 School Specialty, Inc. * 26,000 975 Shoe Carnival, Inc. * 3,973 126 Sonic Automotive, Inc., Class A 4,770 138 Syms Corp. * 2,325 46 Systemax, Inc. * 3,400 59 Tractor Supply Co. * 22,630 1,012 United Auto Group, Inc. 2,300 54 World Fuel Services Corp. 21,200 943 -------- 10,805 -------- SAVINGS & LOANS - 0.5% BankUnited Financial Corp., Class A 9,929 277 Downey Financial Corp. 5,300 385 Partners Trust Financial Group, Inc. 14,240 166 PFF Bancorp, Inc. 838 29 TierOne Corp. 3,140 99 -------- 956 -------- SEMICONDUCTORS - 3.2% Actel Corp. * 9,174 167 Applied Micro Circuits Corp. * 11,000 39 ARM Holdings PLC ADR 87,460 638 Atmel Corp. * 33,236 201 BTU International, Inc. * 71,500 701 Cirrus Logic, Inc. * 22,206 153 Diodes, Inc. * 14,225 505 Exar Corp. * 8,282 108 ON Semiconductor Corp. * 135,205 1,023 Rudolph Technologies, Inc. * 10,965 174 Silicon Image, Inc. * 5,572 71
NORTHERN FUNDS QUARTERLY REPORT 6 MULTI-MANAGER FUNDS MULTI-MANAGER FUNDS SCHEDULE OF INVESTMENTS MULTI-MANAGER SMALL CAP FUND (continued)
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED SEMICONDUCTORS - 3.2% - (CONTINUED) Silicon Motion Technology Corp. ADR * 49,385 $ 784 Tessera Technologies, Inc. * 19,260 777 Triquint Semiconductor, Inc. * 20,430 92 Veeco Instruments, Inc. * 3,368 63 Volterra Semiconductor Corp. * 32,720 491 -------- 5,987 -------- SOFTWARE - 5.4% Altiris, Inc. * 10,210 259 Avid Technology, Inc. * 27,000 1,006 Blackbaud, Inc. 4,305 112 Business Objects S.A. ADR * 28,900 1,140 Cognos, Inc. * 13,830 587 CSG Systems International, Inc. * 7,920 212 Eclipsys Corp. * 50,160 1,031 Global Payments, Inc. 7,290 338 Hyperion Solutions Corp. * 21,800 783 JDA Software Group, Inc. * 2,730 38 Keane, Inc. * 5,600 67 MapInfo Corp. * 3,900 51 MicroStrategy, Inc., Class A * 2,004 228 MSC.Software Corp. * 64,800 987 Nuance Communications, Inc. * 76,590 878 Omnicell, Inc. * 4,300 80 OPNET Technologies, Inc. * 1,240 18 PDF Solutions, Inc. * 25,520 369 Schawk, Inc. 29,000 567 SEI Investments Co. 42 2 Sybase, Inc. * 1,300 32 SYNNEX Corp. * 1,600 35 Ulticom, Inc. * 3,100 30 Ultimate Software Group, Inc. * 60,490 1,407 -------- 10,257 -------- TELECOMMUNICATIONS - 3.3% Amdocs Ltd. * 20,120 780 Anaren, Inc. * 6,700 119 Carrier Access Corp. * 16,636 109 CT Communications, Inc. 8,400 193 Ditech Networks, Inc. * 14,804 102 General Communication, Inc., Class A * 73,500 1,156 Interdigital Communications Corp. * 9,427 316 Leap Wireless International, Inc. * 1,410 84 Lightbridge, Inc. * 4,790 65
NUMBER VALUE OF SHARES (000S) ----------- -------- COMMON STOCKS - 95.2% - CONTINUED TELECOMMUNICATIONS - 3.3% - (CONTINUED) NeuStar, Inc., Class A * 22,975 $ 745 NII Holdings, Inc. * 13,590 876 Polycom, Inc. * 11,040 341 Sirenza Microdevices, Inc. * 108,592 854 Sycamore Networks, Inc. * 32,060 121 USA Mobility, Inc. 10,795 241 UTStarcom, Inc. * 23,014 201 -------- 6,303 -------- TEXTILES - 0.7% G&K Services, Inc., Class A 8,400 327 Unifirst Corp. of Massachusetts 25,200 968 -------- 1,295 -------- TOYS, GAMES & HOBBIES - 0.6% Marvel Entertainment, Inc. * 14,300 385 RC2 Corp. * 17,000 748 -------- 1,133 -------- TRANSPORTATION - 3.0% American Commercial Lines, Inc. * 11,674 765 Atlas Air Worldwide Holdings, Inc. * 22,915 1,020 Bristow Group, Inc. * 970 35 Celadon Group, Inc. * 37,770 633 Dynamex, Inc. * 100 2 Knight Transportation, Inc. 43,200 737 Landstar System, Inc. 23,800 909 Overseas Shipholding Group 2,350 132 P.A.M. Transportation Services, Inc. * 4,110 90 Saia, Inc. * 4,892 113 Tsakos Energy Navigation Ltd. 16,300 748 U.S. Xpress Enterprises, Inc., Class A * 4,723 78 USA Truck, Inc. * 25,000 401 -------- 5,663 -------- TOTAL COMMON STOCKS (COST $164,685) 179,991
MULTI-MANAGER FUNDS 7 NORTHERN FUNDS QUARTERLY REPORT DECEMBER 31, 2006 (UNAUDITED)
NUMBER VALUE OF SHARES (000S) ----------- -------- INVESTMENT COMPANIES - 5.0% iShares Russell 2000 Index Fund 5,100 $ 398 iShares Russell 2000 Value Index Fund 25,600 2,049 Northern Institutional Funds - Diversified Assets Portfolio (1) 7,072,814 7,073 -------- TOTAL INVESTMENT COMPANIES (COST $9,455) 9,520
PRINCIPAL AMOUNT VALUE (000S) (000S) ----------- -------- SHORT-TERM INVESTMENT - 0.5% ING Bank, Amsterdam, Eurodollar Time Deposit, 5.28%, 1/3/07 $ 962 962 TOTAL SHORT-TERM INVESTMENT (COST $962) 962 -------- TOTAL INVESTMENTS - 100.7% (COST $175,102) 190,473 Liabilities less Other Assets - (0.7)% (1,291) -------- NET ASSETS - 100.0% $189,182
(1) NTI is an investment adviser of the Fund and the adviser of the Northern Institutional Funds. * Non-Income Producing Security Federal Tax Information: At December 31, 2006, the components of investments for federal income tax purposes were as follows: (Amounts in thousands) Federal tax cost of investments $175,102 Gross tax appreciation of investments $ 18,183 Gross tax depreciation of investments (2,812) -------- Net tax appreciation of investments $ 15,371 --------
NORTHERN FUNDS QUARTERLY REPORT 8 MULTI-MANAGER FUNDS 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) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended, as of a date within 90 days of the filing date of this report. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the 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 and Section 302 of the Sarbanes-Oxley Act 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. (Registrant) Northern Funds By: /s/ Lloyd A. Wennlund -------------------------------------------- Lloyd A. Wennlund, President (Principal Executive Officer) Date: February 26, 2007 ------------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. (Registrant) Northern Funds By: /s/ Lloyd A. Wennlund -------------------------------------------- Lloyd A. Wennlund, President (Principal Executive Officer) Date: February 26, 2007 ----------------- By: /s/ Stuart N. Schuldt -------------------------------------------- Stuart N. Schuldt, Treasurer (Principal Financial and Accounting Officer) Date: February 26, 2007 -----------------