N-Q 1 dnq.htm NORTHERN FUNDS Northern Funds

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT 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: June 30, 2009

Item 1.   Schedule of Investments.

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

   SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY FUND    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6%

      

Brazil - 5.6%

      

All America Latina Logistica S.A.

    85,400    $ 526

B2W Companhia Global Do Varejo

    11,900      225

Banco do Brasil S.A.

    74,000      800

BM&FBOVESPA S.A.

    275,018      1,653

Centrais Eletricas Brasileiras S.A.

    51,032      746

Cia de Concessoes Rodoviarias

    25,400      407

Cia de Saneamento Basico do Estado de Sao Paulo

    24,383      361

Cia Siderurgica Nacional S.A.

    88,900      1,979

Cia Vale do Rio Doce

    321,754      5,665

Cosan SA Industria e Comercio*

    23,300      171

CPFL Energia S.A.

    20,800      338

Cyrela Brazil Realty S.A.

    43,300      328

EDP - Energias do Brasil S.A.

    11,300      156

Empresa Brasileira de Aeronautica S.A.

    111,600      464

Gerdau S.A.

    22,100      179

Global Village Telecom Holding S.A.*

    18,600      310

Investimentos Itau S.A.

    8,043      36

JBS S.A.

    75,788      272

Marfrig Alimentos S.A.*

    27,400      203

MRV Engenharia e Participacoes S.A.

    18,800      261

Natura Cosmeticos S.A.

    27,500      363

OGX Petroleo e Gas Participacoes S.A.

    2,800      1,428

Perdigao S.A.*

    26,742      512

Petroleo Brasileiro S.A. - Petrobras

    509,832      10,446

Porto Seguro S.A.

    19,000      149

Redecard S.A.

    73,455      1,130

Souza Cruz S.A.

    16,300      464

Tele Norte Leste Participacoes S.A.

    12,400      234

Tractebel Energia S.A.

    26,600      257

Usinas Siderurgicas de Minas Gerais S.A.

    23,675      501
         
        30,564
         

Chile - 1.4%

      

AES Gener S.A.

    350,948      148

Banco de Credito e Inversiones

    5,445      137

Banco Santander Chile S.A.

    10,305,088      460

CAP S.A.

    15,166      375

Centros Comerciales Sudamericanos S.A.

    186,830      489

Colbun S.A.

    1,588,921      402

Compania Cervecerias Unidas S.A.

    28,428      203

Empresa Nacional de Electricidad S.A. ADR

    3,800      189

Empresa Nacional de Electricidad S.A.

    621,442      1,026

Empresas CMPC S.A.

    22,000      574

Empresas COPEC S.A.

    99,750      1,188

Enersis S.A.

    2,369,978      880

Enersis S.A. ADR

    9,024      167

ENTEL Chile S.A.

    22,772      305

Lan Airlines S.A.

    21,423      256

Lan Airlines S.A. ADR

    8,335      100

SACI Falabella

    59,210      233

Sociedad Quimica y Minera de Chile S.A. ADR

    3,193      116

Vina Concha y Toro S.A.

    102,933      191
         
        7,439
         

China - 18.9%

      

Agile Property Holdings Ltd.

    406,000      578

Air China Ltd., Class H*

    416,000      203

Alibaba.com Ltd.*

    284,500      502

Aluminum Corp. of China Ltd., Class H

    904,000      845

Angang Steel Co. Ltd., Class H

    257,360      425

Anhui Conch Cement Co. Ltd., Class H

    96,000      599

Bank of China Ltd., Class H

    12,786,146      6,059

Bank of Communications Co. Ltd., Class H

    1,239,000      1,385

Beijing Capital International Airport Co. Ltd., Class H*

    378,000      264

Beijing Enterprises Holdings Ltd.

    120,000      598

Belle International Holdings Ltd.

    864,000      758

Byd Co. Ltd., Class H*

    126,800      507

Chaoda Modern Agriculture Holding Ltd.

    612,110      361

China Agri-Industries Holdings Ltd.

    246,000      153

China BlueChemical Ltd., Class H

    232,000      122

China Citic Bank, Class H

    1,142,000      748

China Coal Energy Co., Class H

    796,000      956

China Communications Construction Co. Ltd.

    948,000      1,104

China Communications Services Corp. Ltd., Class H

    304,000      187

China Construction Bank Corp., Class H

    10,095,643      7,805

China COSCO Holdings Co. Ltd., Class H

    571,250      674

China Dongxiang Group Co.

    398,000      267

China Everbright Ltd.

    154,000      383

China High Speed Transmission Equipment Group Co. Ltd.

    207,500      416

China Insurance International Holdings Co. Ltd.*

    117,000      247

China International Marine Containers Co. Ltd., Class B

    102,000      97

China Life Insurance Co. Ltd., Class H

    1,675,502      6,187

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

China - 18.9% continued

      

China Mengniu Dairy Co. Ltd.*

    276,000    $ 640

China Merchants Bank Co. Ltd., Class H

    750,000      1,711

China Merchants Holdings International Co. Ltd.

    261,394      752

China Mobile Ltd.

    1,348,486      13,522

China National Building Material Co. Ltd., Class H

    288,000      556

China Oilfield Services Ltd., Class H

    292,000      314

China Overseas Land & Investment Ltd.

    932,560      2,159

China Petroleum & Chemical Corp.

    3,628,751      2,756

China Railway Construction Corp. Ltd., Class H

    427,000      658

China Railway Group Ltd., Class H*

    882,515      707

China Resources Enterprise

    290,000      580

China Resources Land Ltd.

    460,000      1,013

China Resources Power Holdings Co. Ltd.

    384,000      850

China Shenhua Energy Co. Ltd., Class H

    714,000      2,620

China Shipping Container Lines Co. Ltd., Class H*

    625,800      167

China Shipping Development Co. Ltd., Class H

    310,000      396

China South Locomotive and Rolling Stock Corp.

    436,000      257

China Telecom Corp. Ltd., Class H

    3,068,000      1,517

China Travel International Inv HK

    558,000      123

China Unicom Hong Kong Ltd.*

    1,363,340      1,817

China Vanke Co. Ltd., Class B

    236,272      341

China Yurun Food Group Ltd.

    200,000      302

China Zhongwang Holdings Ltd.*

    342,000      470

Citic Pacific Ltd.

    253,000      520

CNOOC Ltd.

    4,028,604      4,961

Cnpc Hong Kong Ltd.

    410,000      341

Cosco Pacific Ltd.

    274,000      307

Country Garden Holdings Co.

    962,000      445

Datang International Power Generation Co. Ltd., Class H

    710,000      429

Denway Motors Ltd.

    1,092,000      435

Dongfang Electric Corp. Ltd., Class H

    24,000      85

Dongfeng Motor Group Co. Ltd., Class H

    626,000      526

Fosun International

    250,000      157

GOME Electrical Appliances Holdings Ltd.

    1,136,000      283

Guangdong Investment Ltd.

    410,000      201

Guangshen Railway Co. Ltd., Class H

    266,000      125

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

    230,800      513

Harbin Power Equipment Co. Ltd., Class H

    138,000      129

Hengan International Group Co. Ltd.

    152,000      710

Huabao International Holdings Ltd.

    312,000      302

Huaneng Power International, Inc., Class H

    708,000      494

Industrial & Commercial Bank of China, Class H

    9,342,000      6,488

Inner Mongolia Yitai Coal Co., Class B

    58,800      273

Jiangsu Express Co. Ltd., Class H

    232,000      170

Jiangxi Cooper Co. Ltd., Class H

    341,000      554

Kingboard Chemicals Holdings Ltd.

    108,000      268

Lenovo Group Ltd.

    1,086,000      412

Li Ning Co. Ltd.

    174,000      512

Maanshan Iron & Steel, Class H*

    306,000      192

Parkson Retail Group Ltd.

    312,000      445

PetroChina Co. Ltd., Class H

    4,755,038      5,246

PICC Property & Casualty Co., Ltd., Class H*

    458,000      315

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

    287,000      1,936

Renhe Commercial Holdings Co. Ltd.

    632,000      130

Shandong Weigao, Class H

    60,000      154

Shanghai Electric Group Co. Ltd., Class H

    748,000      318

Shanghai Industrial Holdings Ltd.

    126,000      511

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

    74,000      127

Shanghai Zhenhua Port Machinery Co., Class B

    141,570      121

Shimao Property Holdings Ltd.

    377,000      729

Shui On Land Ltd.

    527,600      359

Sinochem Hong Kong Holding Ltd.

    346,000      174

Sino-Ocean Land Holdings Ltd.

    709,179      809

Sinopec Shanghai Petrochemical Co. Ltd., Class H*

    396,000      136

Sinotruk Hong Kong Ltd.

    114,000      109

Soho China Ltd.

    370,000      228

Tencent Holdings Ltd.

    204,000      2,375

Tingyi Cayman Islands Holding Corp.

    406,000      669

Tsingtao Brewery Co. Ltd.

    56,000      177

Want Want China Holdings Ltd.

    552,000      312

Weichai Power Co. Ltd.

    30,000      101

Yantai Changyu Pioneer Wine Co., Class H

    30,000      185

Yanzhou Coal Mining Co. Ltd., Class H

    456,000      626

Zhejiang Expressway Co. Ltd., Class H

    243,000      192

Zijin Mining Group Co. Ltd., Class H

    920,000      829

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

China - 18.9% continued

      

ZTE Corp., Class H

    49,036    $ 170
         
        103,973
         

Colombia - 0.5%

      

BanColombia S.A.

    50,960      390

BanColombia S.A. ADR

    8,252      252

Cementos Argos S.A.

    63,816      246

Ecopetrol S.A.

    885,811      1,066

Inversiones Argos S.A.

    59,045      336

ISA S.A.

    76,194      324

Suramericana de Inversiones S.A.

    44,907      421
         
        3,035
         

Czech Republic - 0.5%

      

CEZ A/S

    39,670      1,788

Komercni Banka A/S

    3,410      471

Telefonica O2 Czech Republic A/S

    24,540      558
         
        2,817
         

Egypt - 0.5%

      

Commercial International Bank

    52,879      464

Egyptian Co. for Mobile Services

    7,228      251

Egyptian Financial Group-Hermes Holding

    48,924      198

Egyptian Kuwait Holding Co.

    129,370      235

EL Ezz Aldekhela Steel Alexandria

    548      69

El Ezz Steel Rebars SAE

    40,122      86

ElSwedy Cables Holding Co.

    8,426      101

Orascom Construction Industries

    19,169      655

Orascom Telecom Holding SAE*

    95,545      512

Sidi Kerir Petrochemcials Co.

    36,488      76

Talaat Moustafa Group*

    78,534      73

Telecom Egypt

    71,097      205
         
        2,925
         

Hungary - 0.5%

      

Magyar Telekom Telecommunications PLC

    93,743      276

MOL Hungarian Oil and Gas Nyrt.*

    11,706      721

OTP Bank Nyrt.*

    61,261      1,104

Richter Gedeon Nyrt.

    3,111      558
         
        2,659
         

India - 7.2%

      

ABB Ltd.

    9,502      154

ACC Ltd.

    9,112      145

Aditya Birla Nuvo Ltd.

    6,837      123

Axis Bank Ltd.*

    37,968      655

Bajaj Auto Ltd.

    8,269      173

Bharat Heavy Electricals Ltd.

    26,664      1,224

Bharat Petroleum Corp. Ltd.

    14,899      134

Cairn India Ltd.*

    57,757      280

Cipla Ltd.

    70,638      373

DLF Ltd.

    88,860      575

Dr. Reddy’s Laboratories Ltd.

    14,679      239

Dr. Reddy’s Laboratories Ltd. ADR

    12,305      209

GAIL India Ltd.

    82,618      496

Glenmark Pharmaceuticals Ltd.*

    16,864      76

GMR Infrastructure Ltd.*

    71,411      211

Grasim Industries Ltd.

    4,302      207

Gujarat Ambuja Cements Ltd.

    109,970      201

HCL Technologies Ltd.

    26,364      102

HDFC Bank Ltd.

    41,043      1,272

HDFC Bank Ltd. ADR

    6,300      650

Hero Honda Motors Ltd.

    17,390      507

Hindalco Industries Ltd.

    156,696      282

Hindustan Unilever Ltd.

    194,246      1,083

Housing Development Finance Corp.

    47,366      2,313

ICICI Bank Ltd.

    130,400      1,960

ICICI Bank Ltd. ADR

    22,771      672

Idea Cellular Ltd.*

    119,323      177

Indiabulls Real Estate Ltd.

    64,983      264

Infosys Technologies Ltd.

    75,762      2,802

Infosys Technologies Ltd. ADR

    27,237      1,002

Infrastructure Development Finance Co. Ltd.

    140,589      398

ITC Ltd.

    244,064      971

Jaiprakash Associates Ltd.

    121,537      518

Jindal Steel & Power Ltd.

    14,208      735

JSW Steel Ltd.

    15,868      203

Kotak Mahindra Bank Ltd.

    25,683      338

Larsen & Toubro Ltd.

    45,010      1,470

Mahindra & Mahindra Ltd.*

    30,156      435

Maruti Suzuki India Ltd.

    14,236      317

NTPC Ltd.

    189,054      769

Oil & Natural Gas Corp. Ltd.

    58,217      1,295

Power Grid Corp. of India Ltd.

    81,339      185

Ranbaxy Laboratories Ltd.*

    16,359      83

Reliance Capital Ltd.

    23,189      434

Reliance Communications Ltd.

    137,269      827

Reliance Industries Ltd.*

    82,992      3,499

Reliance Industries Ltd., GDR (London Exchange) (1)(2) *

    28,713      2,372

Reliance Infrastructure Ltd.

    23,126      576

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

India - 7.2% continued

      

Reliance Natural Resources Ltd.*

    130,508    $ 228

Reliance Petroleum Ltd.*

    197,223      515

Satyam Computer Services Ltd.

    23,139      34

Sesa Goa Ltd.

    62,487      237

Siemens India Ltd.

    15,137      149

State Bank of India Ltd.

    13,197      480

Steel Authority Of India Ltd.

    98,455      310

Sterlite Industries India Ltd.

    56,936      718

Sun Pharmaceuticals Industries Ltd.

    15,950      363

Tata Consultancy Services Ltd.

    107,301      872

Tata Motors Ltd.*

    42,313      256

Tata Power Compnay Ltd.

    17,284      414

Tata Steel Ltd.

    40,284      326

United Phosphorus Ltd.

    40,476      120

United Spirits Ltd.

    8,603      156

Wipro Ltd.

    51,593      406

Wipro Ltd. ADR

    13,570      160

Zee Entertainment Enterprises Ltd.

    35,959      133
         
        39,863
         

Indonesia - 1.6%

      

Aneka Tambang Tbk PT

    625,000      123

Astra Agro Lestari Tbk PT

    74,000      122

Astra International Tbk PT

    453,500      1,055

Bank Central Asia Tbk PT

    2,763,500      953

Bank Danamon Indonesia Tbk PT

    702,769      330

Bank Mandiri Persero Tbk PT

    1,521,000      469

Bank Rakyat Indonesia

    1,226,000      753

Bumi Resources Tbk PT

    3,921,000      710

Indocement Tunggal Prakarsa Tbk PT*

    162,000      123

Indofood Sukses Makmur Tbk PT

    979,500      179

Indosat Tbk PT

    307,233      149

International Nickel Indonesia Tbk PT*

    454,500      183

Lippo Karawaci Tbk PT*

    2,132,000      140

Perusahaan Gas Negara PT*

    2,577,000      792

Semen Gresik Persero Tbk PT

    268,500      128

Tambang Batubara Bukit Asam Tbk PT

    155,000      176

Telekomunikasi Indonesia Tbk PT

    2,252,821      1,668

Unilever Indonesia Tbk PT

    301,500      273

United Tractors Tbk PT

    307,500      298
         
        8,624
         

Israel - 2.9%

      

Bank Hapoalim BM*

    220,360      583

Bank Leumi Le-Israel BM*

    266,108      697

Bezeq Israeli Telecommunication Corp. Ltd.

    252,494      466

Cellcom Israel Ltd.

    10,140      269

Check Point Software Technologies*

    38,343      900

Delek Group Ltd.

    948      115

Discount Investment Corp.

    4,635      84

Elbit Systems Ltd.

    4,772      287

Israel (The) Corp. Ltd.

    427      227

Israel Chemicals Ltd.

    110,939      1,092

Israel Discount Bank Ltd., Class A

    86,305      112

Makhteshim-Agan Industries Ltd.

    58,026      286

Mizrahi Tefahot Bank Ltd.*

    21,203      126

Nice Systems Ltd.*

    13,230      304

Ormat Industries

    13,792      112

Partner Communications

    15,536      265

Teva Pharmaceutical Industries Ltd.

    198,616      9,790
         
        15,715
         

Malaysia - 2.7%

      

AirAsia Bhd.*

    166,000      53

Alliance Financial Group Bhd.

    185,000      123

AMMB Holdings Bhd.

    394,737      378

Asiatic Development Bhd.

    37,000      58

Astro All Asia Networks PLC

    76,300      70

Berjaya Sports Toto Bhd.

    157,600      226

British American Tobacco Malaysia Bhd.

    30,200      384

Bumiputra-Commerce Holdings Bhd.

    589,100      1,514

Bursa Malaysia Bhd.

    71,000      139

Digi.Com Bhd.

    75,000      474

Gamuda Bhd.

    328,800      259

Genting Bhd.

    501,000      802

Hong Leong Bank Bhd.

    103,600      168

Hong Leong Financial Group Bhd.

    31,000      43

IGB Corp. Bhd.

    144,000      70

IJM Corp. Bhd.

    165,500      272

IOI Corp. Bhd.

    759,350      1,018

KLCC Property Holdings Bhd.

    70,000      65

Kuala Lumpur Kepong Bhd.

    103,150      348

Lafarge Malayan Cement Bhd.

    65,800      110

Malayan Banking Bhd.

    778,806      1,302

Malaysian Airline System Bhd.

    54,000      47

MISC Bhd.

    239,600      586

MMC Corp. Bhd.

    186,400      113

Parkson Holdings Bhd.

    104,000      150

Petronas Dagangan Bhd.

    46,600      111

Petronas Gas Bhd.

    110,900      309

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

Malaysia - 2.7% continued

      

PLUS Expressways Bhd.

    333,000    $ 303

PPB Group Bhd.

    108,000      356

Public Bank Bhd.

    4,142      11

Public Bank Bhd. (Registered)

    233,000      596

Resorts World Bhd.

    693,500      530

RHB Capital Bhd.

    72,000      85

Sime Darby Bhd.

    660,515      1,302

SP Setia Bhd.

    171,100      193

Tanjong PLC

    39,600      150

Telekom Malaysia Bhd.

    184,100      153

Tenaga Nasional Bhd.

    439,400      953

TM International Bhd.*

    522,225      351

UMW Holdings Bhd.

    128,000      216

YTL Corp. Bhd.

    159,400      315

YTL Power International Bhd.

    429,199      264
         
        14,970
         

Mexico - 4.3%

      

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

    53,000      149

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

    4,195,417      8,139

Carso Global Telecom S.A.B. de C.V.*

    151,000      558

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

    1,709,394      1,598

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

    54,000      217

Desarrolladora Homex S.A.B. de C.V.*

    47,000      219

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

    476,000      1,535

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

    98,000      250

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

    2,000      11

Grupo Bimbo S.A.B. de C.V., Series A (OTC Exchange)

    73,000      388

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

    123,000      331

Grupo Elektra S.A. de C.V.

    17,000      774

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

    318,000      770

Grupo Financiero Inbursa S.A., Class O

    150,725      400

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

    843,527      922

Grupo Modelo S.A.B. de C.V., Series C*

    110,000      390

Grupo Televisa S.A., Series CPO

    549,612      1,868

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

    23,000      368

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

    116,000      445

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

    169,000      214

Telefonos de Mexico S.A.B. de C.V., Series L

    1,241,388      1,013

Telmex Internacional S.A.B. de C.V., Series L

    1,176,388      747

Urbi Desarrollos Urbanos S.A.B. de C.V.*

    98,000      149

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

    661,971      1,963
         
        23,418
         

Morocco - 0.4%

      

Attijariwafa Bank

    6,107      222

Banque Marocaine du Commerce Exterieur

    10,126      333

Compagnie Generale Immobiliere*

    800      199

Douja Promotion Groupe Addoha S.A.

    20,429      377

Marco Telecom

    38,158      716

ONA S.A.

    1,163      216
         
        2,063
         

Peru - 0.5%

      

Cia de Minas Buenaventura S.A. ADR

    41,412      995

Credicorp Ltd.

    15,153      882

Southern Copper Corp.

    45,975      940
         
        2,817
         

Philippines - 0.4%

      

Ayala Corp.

    36,586      200

Ayala Land, Inc.

    1,123,580      188

Banco de Oro Universal Bank

    157,600      103

Bank of the Philippine Islands

    265,208      231

Energy Development Corp.

    1,084,000      89

Globe Telecom, Inc.

    6,870      135

Jollibee Foods Corp.

    61,000      62

Manila Electric Co.

    92,980      267

Metropolitan Bank & Trust

    107,200      70

Philippine Long Distance Telephone Co.

    9,960      496

SM Investments Corp.

    39,047      247

SM Prime Holdings, Inc.

    885,251      163
         
        2,251
         

Poland - 1.0%

      

Asseco Poland S.A

    11,313      194

Bank Handlowy w Warszawie S.A.*

    4,921      78

Bank Millennium S.A.*

    53,378      49

Bank Pekao S.A.*

    25,864      935

Bank Zachodni WBK S.A.*

    3,763      107

BRE Bank S.A.*

    2,197      119

Cyfrowy Polsat S.A.

    14,122      68

Getin Holding S.A.*

    57,969      115

Globe Trade Centre S.A.*

    26,508      185

Grupa Lotos S.A.*

    9,693      62

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

Poland - 1.0% continued

      

ING Bank Slaski S.A.*

    489    $ 54

KGHM Polska Miedz S.A.

    25,553      655

PBG S.A.*

    1,563      116

Polski Koncern Naftowy Orlen

    71,928      598

Polskie Gornictwo Naftowe I Gazownictwo S.A.

    265,525      340

Powszechna Kasa Oszczednosci Bank Polski S.A.

    109,616      882

Telekomunikacja Polska S.A.

    153,309      743

TVN S.A.

    26,357      83
         
        5,383
         

Russia - 6.0%

      

Comstar United Telesystems OJSC GDR (Registered)

    31,331      134

Federal Grid Co. Unified Energy System JSC*

    63,017,930      534

Gazprom OAO

    9,257      48

Gazprom OAO ADR (London Exchange)

    518,520      10,566

Gazprom OAO ADR (OTC Exchange)

    7,800      158

Gazpromneft JSC

    67,305      226

LUKOIL

    1,414      65

LUKOIL ADR (London Exchange)

    83,440      3,724

LUKOIL ADR (OTC Exchange)

    19,800      885

Mechel ADR

    29,808      249

MMC Norilsk Nickel*

    4,009      376

MMC Norilsk Nickel ADR*

    149,055      1,356

Mobile Telesystems OJSC ADR

    44,904      1,658

NovaTek OAO, GDR (Registered)

    19,980      959

Novolipetsk Steel OJSC GDR (Registered)

    15,405      316

Pharmstandard GDR*

    15,294      232

Polymetal*

    14,441      127

Polymetal*

    15,000      131

Polyus Gold Co.*

    3,932      159

Polyus Gold Co. ADR*

    26,234      542

Rosneft Oil Co.

    167,080      925

Rosneft Oil Co. (London Exchange)*

    217,200      1,193

Rostelecom

    1,040      6

Rostelecom ADR

    2,537      80

RusHydro*

    21,802,665      817

Sberbank

    56,000      71

Sberbank-CLS

    1,883,265      2,372

Severstal

    665      4

Severstal GDR

    38,330      207

Sistema JSFC GDR*

    19,730      241

Surgutneftegaz

    353,000      254

Surgutneftegaz ADR (OTC Exchange)

    122,975      849

Tatneft

    36,400      153

Tatneft, GDR

    46,283      1,142

TMK OAO GDR (Registered)

    10,602      109

Uralkali

    27,100      436

Uralkaliy

    101,486      345

Vimpel-Communications ADR*

    69,965      823

VTB Bank OJSC

    220,845,406      256

VTB Bank OJSC (Registered)

    69,600      154

VTB Bank OJSC GDR (1) (2)

    5,276      12

Wimm-Bill-Dann Foods OJSC ADR*

    3,102      170
         
        33,064
         

South Africa - 7.2%

      

ABSA Group Ltd.

    66,188      946

African Bank Investments Ltd.

    171,283      618

African Rainbow Minerals Ltd.

    21,827      368

Anglo Platinum Ltd.

    13,570      962

Anglogold Ashanti Ltd.

    67,605      2,479

ArcelorMittal South Africa Ltd.

    39,260      487

Aspen Pharmacare Holdings Ltd.*

    45,989      327

Aveng Ltd.

    87,978      399

Bidvest Group

    65,348      820

Discovery Holdings Ltd.

    54,319      182

Exxaro Resources Ltd.

    24,942      245

FirstRand Ltd.

    627,184      1,146

Foschini Ltd.

    45,049      294

Gold Fields Ltd.

    147,398      1,779

Growthpoint Properties Ltd.

    299,712      506

Harmony Gold Mining Co. Ltd.*

    81,004      838

Impala Platinum Holdings Ltd.

    120,694      2,673

Imperial Holdings Ltd.

    33,822      257

Investec Ltd.

    38,328      211

Kumba Iron Ore Ltd.

    16,498      388

Liberty Holdings Ltd.

    18,963      148

Massmart Holdings Ltd.

    45,879      477

MTN Group Ltd.

    334,771      5,143

Murray & Roberts Holdings Ltd.

    65,579      427

Naspers Ltd., Class N

    86,337      2,275

Nedbank Group Ltd.

    41,769      532

Netcare Ltd.*

    240,748      304

Northam Platinum Ltd.

    20,738      81

Pick’n Pay Stores Ltd.

    44,790      192

Pretoria Portland Cement Co. Ltd.

    102,766      387

 

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

South Africa - 7.2% continued

      

Remgro Ltd.

    97,300    $ 936

Reunert Ltd.

    30,305      172

RMB Holdings Ltd.

    151,651      462

Sanlam Ltd.

    463,721      1,041

Sappi Ltd.

    100,499      295

Sasol Ltd.

    134,575      4,729

Shoprite Holdings Ltd.

    93,816      670

Standard Bank Group Ltd.

    257,013      2,961

Steinhoff International Holdings Ltd.

    233,447      407

Telkom S.A. Ltd.*

    57,466      284

Tiger Brands Ltd.

    36,010      674

Truworths International Ltd.

    94,432      454

Vodacom Group Pty Ltd.*

    80,669      598

Woolworths Holdings Ltd.

    138,660      233
         
        39,807
         

South Korea - 11.7%

      

Amorepacific Corp.

    759      407

Busan Bank

    25,812      176

Celltrion, Inc.*

    9,100      119

Cheil Industries, Inc.

    10,650      382

CJ CheilJedang Corp.

    1,585      185

Daegu Bank

    20,760      190

Daelim Industrial Co. Ltd.

    6,280      303

Daewoo Engineering & Construction Co. Ltd.

    27,870      280

Daewoo International Corp.

    9,228      199

Daewoo Securities Co. Ltd.

    27,600      409

Daewoo Shipbuilding & Marine Engineering Co. Ltd.

    23,490      367

DC Chemical Co. Ltd.

    2,860      479

Dongbu Insurance Co. Ltd.

    6,490      133

Dongkuk Steel Mill Co. Ltd.

    6,380      129

Doosan Corp.

    1,455      101

Doosan Heavy Industries and Construction Co. Ltd.

    7,380      353

Doosan Infracore Co. Ltd.

    12,530      138

GS Engineering & Construction Corp.

    8,240      476

GS Holdings Corp.

    8,520      199

Hana Financial Group, Inc.

    44,110      941

Hanjin Heavy Industries & Construction Co. Ltd.

    5,701      148

Hanjin Shipping Co. Ltd.

    12,230      170

Hankook Tire Co. Ltd.

    15,390      201

Hanwha Chem Corp.

    11,432      93

Hanwha Corp.

    12,090      310

Hite Brewery Co. Ltd.

    984      121

Honam Petrochemical Corp.

    2,570      154

Hynix Semiconductor, Inc.*

    105,190      1,121

Hyosung Corp.

    5,350      391

Hyundai Department Store Co. Ltd.

    2,310      162

Hyundai Development Co.

    13,590      428

Hyundai Engineering & Construction Co. Ltd.

    11,480      479

Hyundai Heavy Industries

    8,512      1,266

Hyundai Mipo Dockyard

    2,560      253

Hyundai Mobis

    14,492      1,263

Hyundai Motor Co.

    34,982      2,028

Hyundai Securities Co.

    28,460      310

Hyundai Steel Co.

    12,640      582

Industrial Bank of Korea*

    36,280      309

Kangwon Land, Inc.

    16,700      213

KB Financial Group, Inc.*

    68,585      2,284

KCC Corp.

    1,090      321

KIA Motors Corp.*

    41,950      412

Korea Electric Power Corp.*

    57,466      1,329

Korea Exchange Bank

    57,540      444

Korea Express Co. Ltd.*

    1,229      79

Korea Gas Corp.

    4,090      151

Korea Investment Holdings Co. Ltd.

    6,820      195

Korea Line Corp

    940      45

Korea Zinc Co. Ltd.

    1,860      201

Korean Air Lines Co. Ltd.*

    7,468      208

KT Corp.

    40,476      1,166

KT&G Corp.

    24,838      1,403

Kumho Industrial Co. Ltd.

    3,310      37

LG Chem Ltd.

    10,424      1,137

LG Corp.

    21,400      1,018

LG Dacom Corp.

    5,320      73

LG Display Co. Ltd.

    53,220      1,328

LG Electronics, Inc.

    21,334      1,949

LG Household & Health Care Ltd.

    1,864      316

LG Telecom Ltd.

    24,980      157

Lotte Confectionery Co. Ltd.

    130      102

Lotte Shopping Co. Ltd.

    2,184      448

LS Corp.

    4,410      325

Mirae Asset Securities Co. Ltd.

    5,086      275

NCSoft Corp.

    3,170      454

NHN Corp.*

    9,244      1,277

POSCO

    14,689      4,865

S1 Corp. of Korea

    2,540      108

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

South Korea - 11.7% continued

      

Samsung C&T Corp.

    28,290    $ 949

Samsung Card Co.

    8,820      310

Samsung Electro-Mechanics Co. Ltd.

    12,620      603

Samsung Electronics Co. Ltd.

    24,728      11,452

Samsung Engineering Co. Ltd.

    6,960      460

Samsung Fire & Marine Insurance Co. Ltd.

    8,508      1,252

Samsung Heavy Industries Co. Ltd.

    36,690      832

Samsung SDI Co. Ltd.

    7,820      632

Samsung Securities Co. Ltd.

    11,804      625

Samsung Techwin Co. Ltd.

    8,892      501

Shinhan Financial Group Co. Ltd.*

    87,411      2,196

Shinsegae Co. Ltd.

    3,175      1,256

SK Broadband Co. Ltd.*

    17,920      73

SK Energy Co. Ltd.

    13,828      1,105

SK Holdings Co. Ltd.

    5,318      443

SK Networks Co. Ltd.

    11,840      136

SK Telecom Co. Ltd.

    9,075      1,239

S-Oil Corp.

    10,480      467

STX Pan Ocean Co. Ltd.

    22,190      204

STX Shipbuilding Co. Ltd.

    7,740      97

Taewoong Co. Ltd.

    1,220      86

Taihan Electric Wire Co. Ltd.

    3,290      54

Woongjin Coway Co. Ltd.

    9,610      233

Woori Finance Holdings Co. Ltd.*

    52,680      418

Woori Investment & Securities Co. Ltd.

    14,800      173

Yuhan Corp.

    1,857      272
         
        64,143
         

Taiwan - 11.1%

      

Acer, Inc.

    565,974      980

Advanced Semiconductor Engineering, Inc.

    979,096      573

Advantech Co. Ltd.

    40,240      57

Asia Cement Corp.

    372,022      395

Asustek Computer, Inc.

    832,465      1,076

AU Optronics Corp.

    1,610,271      1,562

Capital Securities Corp.

    162,000      73

Catcher Technology Co. Ltd.

    105,829      251

Cathay Financial Holding Co. Ltd.*

    1,292,156      1,898

Chang Hwa Commercial Bank

    1,118,000      486

Cheng Shin Rubber Industry Co. Ltd.

    178,426      277

Cheng Uei Precision Industry Co. Ltd.

    53,504      85

Chi Mei Optoelectronics Corp.

    1,060,967      556

Chicony Electronics Co. Ltd.

    60,000      111

China Airlines*

    400,600      99

China Development Financial Holding Corp.

    2,217,206      526

China Steel Corp.

    2,092,582      1,792

Chinatrust Financial Holding Co. Ltd.*

    1,843,393      1,104

Chunghwa Picture Tubes Ltd.

    1,696,000      221

Chunghwa Telecom Co. Ltd.

    1,046,041      2,086

Chunghwa Telecom Co. Ltd. ADR

    5,062      100

Clevo Co.

    75,000      94

CMC Magnetics Corp.*

    444,000      96

Compal Communications, Inc.

    29,657      24

Compal Electronics, Inc.

    845,251      683

Coretronic Corp.

    120,000      120

CSBC Corp.*

    50,000      52

Delta Electronics, Inc.

    360,784      817

E.Sun Financial Holding Co. Ltd.

    461,648      154

Epistar Corp.

    103,351      278

Eternal Chemical Co. Ltd.

    86,609      62

Eva Airways Corp.*

    307,000      82

Evergreen International Storage & Transport Corp.

    61,000      55

Evergreen Marine Corp. Tawain Ltd.

    281,180      141

Everlight Electronics Co. Ltd.

    80,779      205

Far Eastern Department Stores Co. Ltd.

    213,400      209

Far Eastern Textile Co. Ltd.

    628,913      725

Far EasTone Telecommunications Co. Ltd.

    351,345      411

Farglory Land Development Co Ltd.*

    41,000      99

Feng Hsin Iron & Steel Co.

    69,160      102

First Financial Holding Co. Ltd.

    1,027,998      611

Formosa Chemicals & Fibre Co.*

    605,520      908

Formosa International Hotels Corp.

    5,000      70

Formosa Petrochemical Corp.*

    268,000      640

Formosa Plastics Corp.

    829,390      1,475

Formosa Sumco Technology Corp.

    19,000      39

Formosa Taffeta Co. Ltd.

    170,540      116

Foxconn Technology Co. Ltd.

    113,208      314

Fubon Financial Holding Co. Ltd.*

    981,000      912

Giant Manufacturing Co. Ltd.

    36,000      87

Global Unichip Corp.

    9,000      42

HannStar Display Corp.

    1,090,898      220

HON HAI Precision Industry Co. Ltd.

    1,687,076      5,193

HTC Corp.

    141,076      1,984

Hua Nan Financial Holdings Co. Ltd.

    756,560      452

InnoLux Display Corp.

    452,290      551

Inotera Memories, Inc.*

    215,320      92

Inventec Co. Ltd.

    416,990      240

 

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

Taiwan - 11.1% continued

      

KGI Securities Co. Ltd.

    491,000    $ 223

Kinsus Interconnect Technology Corp.

    37,587      62

Largan Precision Co. Ltd.

    23,368      246

Lite-On Technology Corp.

    455,394      394

Macronix International

    732,109      331

MediaTek, Inc.

    200,425      2,384

Mega Financial Holding Co. Ltd.

    1,721,000      788

Micro-Star International Co. Ltd.

    136,000      85

Mitac International

    229,759      91

Motech Industries, Inc.

    32,958      128

Nan Ya Plastics Corp.*

    1,104,800      1,429

Nan Ya Printed Circuit Board Corp.

    32,925      88

Nanya Technology Corp.*

    572,932      89

Novatek Microelectronics Corp. Ltd.

    103,244      245

Phison Electronics Corp.

    15,000      84

Pixart Imaging, Inc.

    23,000      156

Polaris Securities Co. Ltd.

    478,612      240

POU Chen Corp.

    513,341      313

Powerchip Semiconductor Corp.*

    1,658,758      140

Powertech Technology, Inc.

    128,135      266

President Chain Store Corp.

    107,000      274

Qisda Corp.

    241,496      89

Quanta Computer, Inc.

    484,659      784

Realtek Semiconductor Corp.

    77,931      144

Richtek Technology Corp.

    23,700      148

Ruentex Industries Ltd.

    60,000      67

Shin Kong Financial Holding Co. Ltd.

    910,257      378

Siliconware Precision Industries Co.

    616,827      710

Simplo Technology Co. Ltd.

    30,000      120

Sincere Navigation

    33,000      37

Sino-American Silicon Products, Inc.

    28,450      77

Sinopac Financial Holdings Co. Ltd.

    1,227,000      427

Synnex Technology International Corp.

    230,189      374

Taishin Financial Holdings Co. Ltd.

    701,000      261

Taiwan Business Bank*

    319,000      77

Taiwan Cement Corp.

    623,447      594

Taiwan Cooperative Bank

    791,900      454

Taiwan Fertilizer Co. Ltd.

    165,000      488

Taiwan Glass Industrial Corp.

    107,094      71

Taiwan Mobile Co. Ltd.

    413,921      706

Taiwan Secom Co. Ltd.

    31,100      48

Taiwan Semiconductor Manufacturing Co. Ltd.

    5,338,319      8,868

Tatung Co. Ltd.*

    880,000      216

Teco Electric and Machinery Co. Ltd.

    404,000      161

Transcend Information, Inc.

    50,934      128

Tripod Technology Corp.

    63,878      107

TSRC Corp.

    71,000      86

Tung Ho Steel Enterprise Corp.

    122,000      116

U-Ming Marine Transport Corp.

    101,000      196

Unimicron Technology Corp.

    130,107      99

Uni-President Enterprises Corp.

    700,947      720

United Microelectronics Corp.

    2,708,322      902

Vanguard International Semiconductor Corp.

    131,949      52

Via Technologies, Inc.*

    112,000      41

Walsin Lihwa Corp.

    614,000      195

Wan Hai Lines Ltd.*

    277,310      129

Winbond Electronics Corp.*

    436,000      67

Wintek Corp.

    166,000      99

Wistron Corp.

    310,657      513

WPG Holdings Co. Ltd.

    102,000      101

Ya Hsin Industrial Co. Ltd.*

    121,548      —  

Yang Ming Marine Transport Corp.

    240,082      86

Young Fast Optoelectronics Co. Ltd.

    19,000      177

Yuanta Financial Holding Co. Ltd.

    1,589,285      1,063

Yulon Motor Co. Ltd.

    144,257      136
         
        61,031
         

Thailand - 1.4%

      

Advanced Info Service PCL (Registered)

    194,000      507

Bangkok Bank PCL

    74,500      234

Bangkok Bank PCL (Registered)

    197,200      643

Bangkok Bank PCL NVDR

    21,300      67

Bank of Ayudhya PCL

    190,000      80

Bank of Ayudhya PCL (Registered)

    328,654      140

Banpu Co.

    3,600      35

Banpu PCL (Registered)

    28,300      279

BEC World PCL (Registered)

    196,500      121

Central Pattana PCL (Registered)

    132,900      77

CP ALL PCL

    152,900      76

CP ALL PCL (Registered)

    299,700      150

CP ALL PCL NVDR

    110,700      55

Glow Energy PCL

    100,200      100

IRPC PCL

    1,928,700      183

Kasikornbank PCL (Registered)

    272,200      574

Krung Thai Bank PCL

    559,800      144

Land and Houses PCL (Registered)

    444,100      70

PTT Aromatics & Refining PCL

    124,994      66

PTT Aromatics & Refining PCL NVDR

    141,000      74

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.6% continued

      

Thailand - 1.4% continued

      

PTT Chemical PCL (Registered)

    72,700    $ 113

PTT Exploration & Production PCL

    13,100      51

PTT Exploration & Production PCL NVDR

    16,700      65

PTT Exploration & Production PCL (Registered)

    246,200      983

PTT PCL (Registered)

    185,700      1,275

PTT PCL NVDR

    18,200      124

Ratchaburi Electricity Generating Holding PCL (Registered)

    74,900      84

Siam Cement PCL (Registered)

    62,900      296

Siam Commercial Bank PCL (Registered)

    255,900      563

Thai Oil PCL

    112,300      117

Thai Oil PCL NVDR

    48,200      50

TMB Bank PCL*

    3,729,497      94

Total Access Communication PCL

    93,341      90

Total Access Communication PCL NVDR

    50,000      48
         
        7,628
         

Turkey - 1.3%

      

Akbank TAS

    168,144      747

Aksigorta A.S.

    25,849      67

Anadolu Efes Biracilik Ve Malt Sanayii A.S.

    43,318      389

Asya Katilim Bankasi A.S.*

    104,510      144

BIM Birlesik Magazalar A.S.

    8,366      293

Coca-Cola Icecek A.S.

    12,061      69

Dogan Sirketler Grubu Holdings*

    154,201      112

Dogan Yayin Holding*

    1      —  

Enka Insaat ve Sanayi A.S.

    50,612      158

Eregli Demir ve Celik Fabrikalari TAS*

    115,119      330

Haci Omer Sabanci Holding A.S.

    106,491      285

Hurriyet Gazetecilik A.S.*

    1      —  

Is Gayrimenkul Yatirim Ortakligi A.S.

    1      —  

KOC Holding A.S.*

    103,066      178

Petkim Petrokimya Holding*

    15,877      67

Tekfen Holding A.S.*

    28,247      65

Tupras Turkiye Petrol Rafine

    27,631      335

Turk Sise ve Cam Fabrikalari A.S.*

    69,167      56

Turk Telekomunikasyon A.S.

    117,148      366

Turkcell Iletisim Hizmet A.S.

    172,482      955

Turkiye Garanti Bankasi A.S.*

    469,956      1,264

Turkiye Halk Bankasi A.S.

    63,286      248

Turkiye Is Bankasi, Class C

    241,775      707

Turkiye Vakiflar Bankasi Tao, Class D*

    154,669      232

Yapi ve Kredi Bankasi A.S.*

    172,276      253
         
        7,320
         

Total Common Stocks

      
         

(Cost $510,792) (3)

         481,509
         

PREFERRED STOCKS - 9.0%

      

Brazil - 8.5%

      

AES Tiete S.A.

    19,500      203

Aracruz Celulose S.A., Class B

    95,100      141

Banco Bradesco S.A.

    343,050      5,074

Banco do Estado do Rio Grande do Sul

    30,000      121

Bradespar S.A.

    48,100      628

Brasil Telecom Participacoes S.A.

    34,942      273

Brasil Telecom S.A.

    24,700      165

Braskem S.A., Class A*

    27,700      102

Centrais Eletricas Brasileiras S.A., Class B

    41,062      534

Cia Brasileira de Distribuicao Grupo Pao de Acucar

    17,744      344

Cia de Bebidas das Americas

    33,302      2,165

Cia de Transmissao de Energia Eletrica Paulista

    6,800      167

Cia Energetica de Minas Gerais

    76,251      1,025

Cia Energetica de Sao Paulo, Class B

    40,705      407

Cia Paranaense de Energia, Class B

    20,721      289

Cia Vale do Rio Doce, Class A

    471,034      7,176

Eletropaulo Metropolitana de Sao Paulo S.A., Class B

    19,121      339

Fertilizantes Fosfatados S.A.

    24,400      186

Gerdau S.A.

    143,800      1,504

Investimentos Itau S.A.

    502,451      2,236

Itau Unibanco Banco Multiplo S.A.

    417,018      6,619

Klabin S.A.

    85,500      130

Lojas Americanas S.A.

    74,274      348

Metalurgica Gerdau S.A.

    60,200      793

Net Servicos de Comunicacao S.A. (Sao Paolo Exchange)

    40,821      396

Petroleo Brasileiro S.A. - Petrobras

    702,366      11,678

Suzano Papel e Celulose S.A.

    29,500      228

Tele Norte Leste Participacoes S.A.

    57,600      920

Telemar Norte Leste S.A.

    5,800      161

Tim Participacoes S.A.

    118,498      210

Ultrapar Participacoes S.A.

    15,900      504

Usinas Siderurgicas de Minas Gerais S.A., Class A

    55,275      1,174

Vivo Participacoes S.A.

    28,166      536

 

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

PREFERRED STOCKS - 9.0% continued

      

Brazil - 8.5% continued

      

Votorantim Celulose e Papel S.A.

      17,300    $ 186
         
        46,962
         

Chile - 0.1%

      

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

      16,494      598
         

Colombia - 0.0%

      

BanColombia S.A.

      26,200      201
         

Russia - 0.1%

      

Surgutneftegaz

      415,374      125

Surgutneftegaz ADR

      104,300      287
         
        412
         

South Korea - 0.3%

      

Hyundai Motor Co.

      6,370      150

LG Electronics, Inc.

      2,668      112

Samsung Electronics Co. Ltd.

      4,421      1,348
         
        1,610
         

Total Preferred Stocks

      
         

(Cost $48,757) (3)

         49,783

RIGHTS - 0.0%

      

Cia de Transmissao de Energia Eletrica Paulista*

      69      —  
         

China Resources Power Holdings Co. Ltd.*

      34,200      14
         

SK Broadband Co. Ltd.*

      4,556      1
         

Total Rights

      
         

(Cost $ — ) (3)

         15
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 2.9%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 15,899      15,899
         

Total Short-Term Investments

      
         

(Cost $15,899)

         15,899
         

Total Investments - 99.5%

      
         

(Cost $575,448)

       $ 547,206
         

Other Assets less Liabilities - 0.5%

         2,480
         

NET ASSETS - 100.0%

       $ 549,686

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.
(2) Restricted security that has been deemed illiquid. At June 30, 2009, the value of these restricted illiquid securities amounted to approximately $2,384,000 or 0.43% of net assets. Additional information on each restricted illiquid security is as follows:

 

SECURITY

    ACQUISTION
AND
ENFORCEABLE
DATE		    ACQUISTION
COST
(000S)

Reliance Industries Ltd.,

      

GDR (London Exchange)

    11/1/06-12/22/06    $ 1,617

VTB Bank OJSC GDR

    5/11/07      56
           

 

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

Percentages shown are based on Net Assets.

At June 30, 2009, the Emerging Markets Equity Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		    NOTIONAL
AMOUNT
(000S)		    CONTRACT
POSITION		    CONTRACT
EXP.		    UNREALIZED
GAIN (LOSS)
(000S)		  

Dax Index (Euro)

    7    $ 1,183    Long    9/09    $ (1 ) 

E-mini MSCI Emerging Markets (U.S. Dollar)

    47      1,801    Long    9/09      12   

FTSE 100 (British Pound)

    7      486    Long    9/09      (3 ) 

FTSE JSE (South African Rand)

    116      2,999    Long    9/09      (17 ) 

Hang Seng Index (Hong Kong Dollar)

    19      2,258    Long    7/09      42   

MSCI Taiwan Index (U.S. Dollar)

    157      3,617    Long    7/09      3   

S&P/TSX (Canadian Dollar)

    29      3,127    Long    9/09      17   

SPI 200 (Australian Dollar)

    19      1,493    Long    9/09      15   

TOPIX Index (Japanese Yen)

    7      576    Long    9/09      1   
                    

Total

                $ 69   
                    

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

EMERGING MARKETS EQUITY FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

At June 30, 2009, the Emerging Markets Equity Fund’s investments were denominated in the following currencies :

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Hong Kong Dollar

    19.5 % 

Brazilian Real

    14.6   

Korean Won

    12.4   

Taiwan Dollar

    11.5   

U.S. Dollar

    8.3   

South African Rand

    7.5   

Indian Rupee

    6.5   

All other currencies less than 5%

    19.7   
      

Total

    100.0 % 
      

At June 30, 2009, the Emerging Markets Equity Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS

TO DELIVER

CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		   

IN EXCHANGE

FOR CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

U.S. Dollar

    270    Turkish New Lyra    415    7/1/09    $ (1 ) 

U.S. Dollar

    90    Czech Koruna    1,669    7/2/09      —     

U.S. Dollar

    50    Hungarian Forint    9,713    7/2/09      —     

U.S. Dollar

    320    Israeli New Sheqel    1,255    7/2/09      (1 ) 

U.S. Dollar

    560    Mexican Dollar    7,375    7/2/09      —     

U.S. Dollar

    160    Polish New Zloty    509    7/2/09      1   

U.S. Dollar

    710    South African Rand    5,483    7/2/09      1   

U.S. Dollar

    2,300    Hong Kong Dollar    17,825    7/3/09      —     
                    

Total

                $ —     
                    

At June 30, 2009, the industry sectors for the Emerging Markets Equity Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

    5.0 % 

Consumer Staples

    5.0   

Energy

    16.3   

Financials

    23.8   

Health Care

    2.5   

Industrials

    7.1   

Information Technology

    12.3   

Materials

    13.5   

Telecommunication Services

    10.6   

Utilities

    3.9   
      

Total

    100.0 % 
      

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 575,448   
        

Gross tax appreciation of investments

    $ 46,561   

Gross tax depreciation of investments

      (74,803 ) 
        

Net tax depreciation of investments

    $ (28,242 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Emerging Markets Equity Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

            

Consumer Discretionary

    $ 4,055    $ 21,254    $ —      $ 25,309

Consumer Staples

      7,986      16,287      —        24,273

Energy

      14,832      59,644      —        74,476

Financials

      7,754      105,355      —        113,109

Health Care

      209      12,890      —        13,099

Industrials

      3,886      33,051      —        36,937

Information Technology

      3,192      60,546      —        63,738

Materials

      16,941      42,060      —        59,001

Telecommunication Services

      14,239      39,749      —        53,988

Utilities

      5,095      12,484      —        17,579

Preferred Stocks

            

Consumer Discretionary

      744      262      —        1,006

Consumer Staples

      2,509      —        —        2,509

Energy

      12,469      125      —        12,594

Financials

      14,250      —        —        14,250

Information Technology

      —        1,348      —        1,348

Materials

      12,846      —        —        12,846

Telecommunication Services

      2,266      —        —        2,266

Utilities

      2,964      —        —        2,964

 

INVESTMENTS

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

Rights

            

Telecommunication Services

    $ —      $ —      $ 1    $ 1

Utilities

      —        14      —        14

Short-Term Investments

      —        15,899      —        15,899
                           

Total Investments

    $ 126,237    $ 420,968    $ 1    $ 547,206
                           

Other Financial Instruments*

    $ 69    $ —      $ —      $ —  
                           

 

* Other financial instruments include futures and forwards, if applicable.

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

 

     INVESTMENTS
IN SECURITIES
(000S)		    OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 3/31/09

    $ —      $ —  

Realized gain (loss)

      —        —  

Change in unrealized

      

appreciation/depreciation

      1      —  

Net Purchases (Sales)

      —        —  

Transfers in and/or out of

      

Level 3

      —        —  
             

Balance as of 6/30/09

    $ 1    $ —  

 

* Other financial instruments include futures and forwards, if applicable.

The amount of change in unrealized gains due to investments in level 3 securities still held at June 30, 2009 was $1,000.

 

EQUITY FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

ENHANCED LARGE CAP FUND

   JUNE 30, 2009 (UNAUDITED)

 

      NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.6%

      

Advertising - 0.8%

      

Interpublic Group of Cos. (The), Inc.*

    10,901    $ 55

Omnicom Group, Inc.

    4,834      153
         
        208
         

Aerospace/Defense - 2.7%

      

General Dynamics Corp.

    3,323      184

L-3 Communications Holdings, Inc.

    312      22

Lockheed Martin Corp.

    733      59

Northrop Grumman Corp.

    3,691      168

Raytheon Co.

    4,044      180

United Technologies Corp.

    1,111      58
         
        671
         

Agriculture - 2.1%

      

Altria Group, Inc.

    12,423      204

Archer-Daniels-Midland Co.

    6,772      181

Philip Morris International, Inc.

    3,272      143
         
        528
         

Apparel - 0.3%

      

VF Corp.

    1,155      64
         

Auto Manufacturers - 0.2%

      

Ford Motor Co.*

    9,517      58
         

Banks - 8.6%

      

Bank of America Corp.

    26,296      347

Bank of New York Mellon Corp.

    913      27

BB&T Corp.

    5,788      127

Capital One Financial Corp.

    1,277      28

Goldman Sachs Group (The), Inc.

    2,392      353

JPMorgan Chase & Co.

    15,140      516

Morgan Stanley

    8,084      231

Regions Financial Corp.

    5,471      22

State Street Corp.

    1,377      65

SunTrust Banks, Inc.

    555      9

U.S. Bancorp

    2,566      46

Wells Fargo & Co.

    16,709      405
         
        2,176
         

Beverages - 1.8%

      

Coca-Cola (The) Co.

    3,408      164

Coca-Cola Enterprises, Inc.

    8,254      137

Dr Pepper Snapple Group, Inc.*

    1,144      24

Pepsi Bottling Group, Inc.

    416      14

PepsiCo, Inc.

    2,267      125
         
        464
         

Biotechnology - 1.6%

      

Amgen, Inc.*

    5,480      290

Biogen Idec, Inc.*

    1,574      71

Gilead Sciences, Inc.*

    1,159      54
         
        415
         

Building Materials - 0.2%

      

Masco Corp.

    4,005      38
         

Chemicals - 1.7%

      

CF Industries Holdings, Inc.

    149      11

Dow Chemical (The) Co.

    8,851      143

International Flavors & Fragrances, Inc.

    3,966      130

Monsanto Co.

    196      14

PPG Industries, Inc.

    3,212      141
         
        439
         

Commercial Services - 0.4%

      

Donnelley (R.R.) & Sons Co.

    3,386      40

H&R Block, Inc.

    1,873      32

Robert Half International, Inc.

    129      3

Washington Post (The), Co., Class B

    68      24
         
        99
         

Computers - 6.6%

      

Apple, Inc.*

    1,759      250

Computer Sciences Corp.*

    3,363      149

Dell, Inc.*

    13,539      186

EMC Corp. of Massachusetts*

    9,112      119

Hewlett-Packard Co.

    10,604      410

IBM Corp.

    5,294      553
         
        1,667
         

Cosmetics/Personal Care - 1.8%

      

Procter & Gamble (The) Co.

    9,058      463
         

Distribution/Wholesale - 0.1%

      

Genuine Parts Co.

    1,045      35
         

Diversified Financial Services - 0.8%

      

American Express Co.

    3,038      70

Ameriprise Financial, Inc.

    3,907      95

CME Group, Inc.

    99      31
         
        196
         

Electric - 3.2%

      

Constellation Energy Group, Inc.

    2,778      74

DTE Energy Co.

    4,324      138

Duke Energy Corp.

    5,407      79

Edison International

    3,850      121

 

NORTHERN FUNDS QUARTERLY REPORT     1     EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

ENHANCED LARGE CAP FUND    continued

  

 

     NUMBER
OF SHARES		    VALUE
(000S)

Electric - 3.2% continued

      

Entergy Corp.

    1,233    $ 95

FirstEnergy Corp.

    411      16

Pepco Holdings, Inc.

    7,647      103

PG&E Corp.

    1,902      73

Pinnacle West Capital Corp.

    2,459      74

Public Service Enterprise Group, Inc.

    820      27
         
        800
         

Electrical Components & Equipment - 0.6%

      

Emerson Electric Co.

    4,750      154
         

Electronics - 0.2%

      

PerkinElmer, Inc.

    1,305      23

Thermo Fisher Scientific, Inc.*

    787      32
         
        55
         

Engineering & Construction - 0.5%

      

Fluor Corp.

    2,424      124
         

Food - 2.2%

      

Dean Foods Co.*

    7,170      138

Kellogg Co.

    2,255      105

Kroger (The) Co.

    635      14

Safeway, Inc.

    1,548      31

Sara Lee Corp.

    13,478      132

Sysco Corp.

    3,962      89

Tyson Foods, Inc., Class A

    3,686      46
         
        555
         

Forest Products & Paper - 0.1%

      

International Paper Co.

    2,242      34
         

Gas - 0.8%

      

Centerpoint Energy, Inc.

    4,219      47

Sempra Energy

    3,085      153
         
        200
         

Hand/Machine Tools - 0.0%

      

Black & Decker Corp.

    92      3
         

Healthcare - Products - 3.6%

      

Baxter International, Inc.

    1,260      67

Becton, Dickinson & Co.

    1,038      74

Hospira, Inc.*

    1,482      57

Johnson & Johnson

    7,744      440

Medtronic, Inc.

    7,025      245

Stryker Corp.

    711      28
         
        911
         

Healthcare - Services - 1.5%

      

Aetna, Inc.

    395      10

Humana, Inc.*

    1,147      37

UnitedHealth Group, Inc.

    8,609      215

WellPoint, Inc.*

    2,296      117
         
        379
         

Home Builders - 0.4%

      

D.R. Horton, Inc.

    4,701      44

Lennar Corp., Class A

    685      7

Pulte Homes, Inc.

    4,872      43
         
        94
         

Household Products/Wares - 0.8%

      

Kimberly-Clark Corp.

    3,679      193
         

Insurance - 2.4%

      

Allstate (The) Corp.

    737      18

American International Group, Inc.

    13,923      16

Chubb Corp.

    2,240      89

Genworth Financial, Inc., Class A*

    2,335      16

Hartford Financial Services Group, Inc.

    219      3

Lincoln National Corp.

    1,086      19

Loews Corp.

    5,623      154

Prudential Financial, Inc.

    1,181      44

Travelers Cos. (The), Inc.

    4,643      191

Unum Group

    3,805      60

XL Capital Ltd., Class A

    244      3
         
        613
         

Internet - 2.3%

      

Amazon.com, Inc.*

    989      83

eBay, Inc.*

    3,069      53

Google, Inc., Class A*

    595      251

Symantec Corp.*

    7,410      115

Yahoo!, Inc.*

    4,741      74
         
        576
         

Iron/Steel - 0.8%

      

Nucor Corp.

    3,384      150

United States Steel Corp.

    1,188      43
         
        193
         

Media - 2.3%

      

CBS Corp., Class B

    3,508      24

Comcast Corp., Class A

    6,442      93

Disney (The Walt) Co.

    3,085      72

McGraw-Hill Cos. (The), Inc.

    2,226      67

News Corp., Class A

    5,652      52

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.6% continued

      

Media - 2.3% continued

      

Time Warner, Inc.

    8,363    $ 211

Viacom, Inc., Class B*

    2,486      56
         
        575
         

Mining - 0.2%

      

Freeport-McMoRan Copper & Gold, Inc.

    769      38
         

Miscellaneous Manufacturing - 4.3%

      

3M Co.

    4,230      254

Cooper Industries Ltd., Class A

    3,997      124

Dover Corp.

    3,773      125

General Electric Co.

    30,871      362

Honeywell International, Inc.

    962      30

Illinois Tool Works, Inc.

    3,148      117

ITT Corp.

    936      42

Parker Hannifin Corp.

    486      21
         
        1,075
         

Office/Business Equipment - 0.0%

      

Pitney Bowes, Inc.

    132      3
         

Oil & Gas - 11.5%

      

Anadarko Petroleum Corp.

    3,310      150

Apache Corp.

    1,896      137

Chevron Corp.

    7,964      528

ConocoPhillips

    7,329      308

Diamond Offshore Drilling, Inc.

    77      7

ENSCO International, Inc.

    1,472      51

Exxon Mobil Corp.

    16,919      1,183

Marathon Oil Corp.

    3,122      94

Murphy Oil Corp.

    2,723      148

Nabors Industries Ltd.*

    987      15

Occidental Petroleum Corp.

    2,678      176

Sunoco, Inc.

    1,886      44

Tesoro Corp.

    2,536      32

Valero Energy Corp.

    1,341      23
         
        2,896
         

Oil & Gas Services - 0.8%

      

BJ Services Co.

    2,226      30

Cameron International Corp.*

    384      11

National-Oilwell Varco, Inc.*

    2,361      77

Schlumberger Ltd.

    1,525      83
         
        201
         

Packaging & Containers - 0.6%

      

Bemis Co., Inc.

    79      2

Pactiv Corp.*

    1,228      26

Sealed Air Corp.

    6,980      129
         
        157
         

Pharmaceuticals - 6.5%

      

Abbott Laboratories

    3,063      144

AmerisourceBergen Corp.

    5,562      99

Bristol-Myers Squibb Co.

    2,236      45

Forest Laboratories, Inc.*

    6,077      153

Lilly (Eli) & Co.

    5,608      194

Medco Health Solutions, Inc.*

    2,129      97

Merck & Co., Inc.

    6,698      187

Mylan, Inc.*

    2,674      35

Pfizer, Inc.

    29,194      438

Schering-Plough Corp.

    3,624      91

Wyeth

    3,640      165
         
        1,648
         

Real Estate Investment Trusts - 0.8%

      

HCP, Inc.

    2,492      53

Host Hotels & Resorts, Inc.

    1,884      16

Kimco Realty Corp.

    668      7

ProLogis

    3,731      30

Public Storage

    1,621      106
         
        212
         

Retail - 6.9%

      

Best Buy Co., Inc.

    1,120      37

CVS Caremark Corp.

    7,936      253

Family Dollar Stores, Inc.

    359      10

GameStop Corp., Class A*

    1,276      28

Gap (The), Inc.

    8,906      146

Home Depot (The), Inc.

    8,419      199

Limited Brands, Inc.

    7,647      92

Macy’s, Inc.

    1,170      14

McDonald’s Corp.

    3,678      211

Office Depot, Inc.*

    9,271      42

Penney (J.C.) Co., Inc.

    337      10

RadioShack Corp.

    7,731      108

Sears Holdings Corp.*

    1,906      127

Wal-Mart Stores, Inc.

    9,373      454
         
        1,731
         

Semiconductors - 2.6%

      

Intel Corp.

    24,370      403

QLogic Corp.*

    1,217      16

Texas Instruments, Inc.

    10,171      217

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.6% continued

      

Semiconductors - 2.6% continued

      

Xilinx, Inc.

      1,579    $ 32
         
        668
         

Software - 4.7%

      

BMC Software, Inc.*

      549      19

CA, Inc.

      2,508      44

Fidelity National Information Services, Inc.

      5,533      110

Microsoft Corp.

      28,920      687

Novell, Inc.*

      5,844      27

Oracle Corp.

      13,550      290
         
        1,177
         

Telecommunications - 6.0%

      

AT&T, Inc.

      16,358      406

CenturyTel, Inc.

      3,818      117

Cisco Systems, Inc.*

      20,261      378

Embarq Corp.

      411      17

Motorola, Inc.

      9,326      62

QUALCOMM, Inc.

      2,215      100

Qwest Communications International, Inc.

      8,082      34

Sprint Nextel Corp.*

      24,809      119

Tellabs, Inc.*

      23,052      132

Verizon Communications, Inc.

      5,088      157
         
        1,522
         

Textiles - 0.2%

      

Cintas Corp.

      2,459      56
         

Transportation - 1.1%

      

C.H. Robinson Worldwide, Inc.

      870      45

FedEx Corp.

      1,213      68

Norfolk Southern Corp.

      1,303      49

United Parcel Service, Inc., Class B

      2,543      127
         
        289
         

Total Common Stocks

      
         

(Cost $25,983)

         24,653

PREFERRED STOCKS - 0.3%

      

Banks - 0.3%

      

Citigroup, Inc.*

      3,426      64
         

Total Preferred Stocks

      
         

(Cost $46)

         64
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 2.1%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 325      325

U.S. Treasury Bill,

      

0.29%, 11/19/09(1)

     210      210
         

Total Short-Term Investments

      
         

(Cost $535)

         535
         

Total Investments - 100.0%

      
         

(Cost $26,564)

         25,252

Other Assets less Liabilities - 0.0%

         2
         

NET ASSETS - 100.0%

       $ 25,254

 

(1) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Enhanced Large Cap Fund had open futures contracts as follows:

 

TYPE

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

S&P 500

               

E-mini

    11    $ 504    Long    9/09    $ (12 ) 
                    

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 26,564   
        

Gross tax appreciation of investments

    $ 1,389   

Gross tax depreciation of investments

      (2,701 ) 
        

Net tax depreciation of investments

    $ (1,312 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Enhanced Large Cap Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 24,653 (1)    $ —      $ —      $ 24,653

Preferred Stocks

      64 (1)      —        —        64

Short-Term Investments

      —          535      —        535
                            

Total Investments

    $ 24,717      $ 535    $ —      $ 25,252
                            

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

 

SCHEDULE OF INVESTMENTS

 

GROWTH EQUITY FUND   JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.9%

      

Aerospace/Defense - 3.0%

      

L-3 Communications Holdings, Inc.

    17,199    $ 1,193

Lockheed Martin Corp.

    11,456      924

Raytheon Co.

    26,854      1,193

Rolls-Royce Group PLC ADR

    43,419      1,303
         
        4,613
         

Apparel - 1.8%

      

Coach, Inc.

    73,816      1,984

NIKE, Inc., Class B

    15,308      793
         
        2,777
         

Banks - 10.5%

      

Bank of America Corp.

    241,962      3,194

Goldman Sachs Group (The), Inc.

    17,398      2,565

JPMorgan Chase & Co.

    70,268      2,397

Morgan Stanley

    69,078      1,970

State Street Corp.

    41,150      1,942

SunTrust Banks, Inc.

    82,165      1,352

Wells Fargo & Co.

    110,773      2,687
         
        16,107
         

Beverages - 2.1%

      

Dr Pepper Snapple Group, Inc.*

    56,703      1,202

Pepsi Bottling Group, Inc.

    58,689      1,986
         
        3,188
         

Biotechnology - 1.8%

      

Amgen, Inc.*

    35,953      1,903

Biogen Idec, Inc.*

    17,742      801
         
        2,704
         

Chemicals - 0.7%

      

Dow Chemical (The) Co.

    70,542      1,138
         

Computers - 7.3%

      

Accenture Ltd., Class A

    26,069      872

Dell, Inc.*

    136,104      1,869

Hewlett-Packard Co.

    72,684      2,809

IBM Corp.

    45,180      4,718

Micros Systems, Inc.*

    39,133      991
         
        11,259
         

Cosmetics/Personal Care - 1.0%

      

Procter & Gamble (The) Co.

    29,815      1,523
         

Diversified Financial Services - 0.9%

      

Lazard Ltd., Class A

    52,774      1,421
         

Electric - 3.4%

      

Entergy Corp.

    15,017      1,164

FPL Group, Inc.

    26,687      1,517

NRG Energy, Inc.*

    98,112      2,547
         
        5,228
         

Environmental Control - 0.5%

      

Waste Management, Inc.

    27,755      782
         

Food - 4.1%

      

General Mills, Inc.

    27,507      1,541

Kroger (The) Co.

    126,032      2,779

Sysco Corp.

    39,073      878

Unilever PLC

    49,446      1,162
         
        6,360
         

Healthcare - Products - 3.8%

      

Covidien PLC

    65,787      2,463

Johnson & Johnson

    59,698      3,391
         
        5,854
         

Healthcare - Services - 2.5%

      

CIGNA Corp.(1)

    66,682      1,606

Quest Diagnostics, Inc.

    23,372      1,319

Tenet Healthcare Corp.*

    347,721      981
         
        3,906
         

Home Builders - 1.3%

      

Pulte Homes, Inc.

    219,539      1,938
         

Insurance - 3.0%

      

Conseco, Inc.*

    489,671      1,160

MetLife, Inc.

    36,278      1,089

Prudential Financial, Inc.

    23,214      864

Unum Group

    98,335      1,560
         
        4,673
         

Iron/Steel - 0.8%

      

United States Steel Corp.

    35,134      1,256
         

Machinery - Construction & Mining - 0.9%

      

Joy Global, Inc.

    37,797      1,350
         

Machinery - Diversified - 0.6%

      

Cummins, Inc.

    23,591      831
         

Media - 1.6%

      

Disney (The Walt) Co.

    35,761      834

Time Warner, Inc.

    66,701      1,680
         
        2,514
         

Metal Fabrication/Hardware - 1.0%

      

Precision Castparts Corp.

    21,468      1,568
         

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

GROWTH EQUITY FUND    continued  

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.9% continued

      

Mining - 1.5%

      

Southern Copper Corp.

      56,149    $ 1,147

Vale S.A. ADR

      69,132      1,219
         
        2,366
         

Miscellaneous Manufacturing - 2.7%

      

Dover Corp.

      34,014      1,126

General Electric Co.

      157,011      1,840

Parker Hannifin Corp.

      25,661      1,102
         
        4,068
         

Oil & Gas - 12.9%

      

Chevron Corp.

      65,692      4,352

ENSCO International, Inc.

      43,605      1,521

Exxon Mobil Corp.

      74,751      5,226

Noble Corp.

      55,829      1,689

Occidental Petroleum Corp.

      38,519      2,535

Petroleo Brasileiro S.A. ADR (1)

      45,789      1,876

Talisman Energy, Inc.

      104,341      1,491

Valero Energy Corp.

      71,658      1,210
         
        19,900
         

Pharmaceuticals - 5.2%

      

Cephalon, Inc.*

      21,869      1,239

Forest Laboratories, Inc.*

      61,891      1,554

Schering-Plough Corp.

      146,079      3,669

Teva Pharmaceutical Industries Ltd. ADR

      29,664      1,464
         
        7,926
         

Real Estate Investment Trusts - 0.8%

      

Annaly Capital Management, Inc.

      83,104      1,258
         

Retail - 8.7%

      

Aeropostale, Inc.*

      17,457      598

Best Buy Co., Inc.

      29,014      972

Gap (The), Inc.

      115,405      1,892

McDonald’s Corp.

      41,777      2,402

Nordstrom, Inc.

      63,861      1,270

TJX Cos., Inc.

      63,975      2,013

Wal-Mart Stores, Inc.

      88,214      4,273
         
        13,420
         

Semiconductors - 4.3%

      

ASML Holding NV (New York Shares)

      65,136      1,410

Intel Corp.

      146,145      2,419

ON Semiconductor Corp.*

      181,640      1,246

Texas Instruments, Inc.

      73,286      1,561
         
        6,636
         

Software - 5.5%

      

BMC Software, Inc.*

      37,690      1,274

CA, Inc.

      105,756      1,843

Microsoft Corp.

      184,448      4,384

Oracle Corp.

      46,804      1,003
         
        8,504
         

Telecommunications - 5.2%

      

AT&T, Inc.

      65,397      1,624

Cisco Systems, Inc.*

      97,598      1,819

Nokia OYJ ADR

      82,896      1,209

Qwest Communications International, Inc.

      321,431      1,334

Verizon Communications, Inc.

      64,714      1,989
         
        7,975
         

Transportation - 0.5%

      

Kansas City Southern*

      49,072      791
         

Total Common Stocks

      
         

(Cost $164,874)

         153,834
     PRINCIPAL
AMOUNT
(000S)		     

SHORT- TERM INVESTMENTS - 0.0%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 13      13
         

Total Short-Term Investments

      
         

(Cost $13)

         13

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF
CONTRACTS		    VALUE
(000S)

CALL OPTIONS - 0.0%

      

Lehman Brothers Holdings, Inc.,

      

Exp. Date 1/16/10, Strike Price $20.00*

    375    $ —  

Lehman Brothers Holdings, Inc.,

      

Exp. Date 1/16/10, Strike Price $22.50*

    631      1
         

Total Call Options

      
         

(Premiums Paid $484)

         1
         

Total Investments - 99.9%

      
         

(Cost $165,371)

         153,848

Other Assets less Liabilities - 0.1%

         192
         

NET ASSETS - 100.0%

       $ 154,040

 

(1) A portion of the security is held to cover open written option contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Growth Equity Fund had open written call options as follows:

 

TYPE

    NUMBER OF
CONTRACTS		     VALUE
(000S)		  

CIGNA Corp.,

     

Exp. Date 7/18/09, Strike Price $30

    (121 )    $ (1 ) 

Petroleo Brasileria S.A.,

     

Exp. Date 7/18/09, Strike Price $47

    (37 )      —     
          

Total Written Option Contracts

     
          

(Premiums Received $5)

      $ (1 ) 

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 165,371   
        

Gross tax appreciation of investments

    $ 10,740   

Gross tax depreciation of investments

      (22,260 ) 
        

Net tax depreciation of investments

    $ (11,520 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Growth Equity Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 153,834 (1)    $ —      $ —      $ 153,834   

Short-Term Investments

      —          13      —        13   

Open Call Options

      —          —        1      1   
                              

Total Investments

    $ 153,834      $ 13    $ 1    $ 153,848   
                              

Other Financial Instruments*

    $ (1 )    $ —      $ —      $ (1 ) 
                              

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures, forwards, and open written options if applicable.

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

 

     INVESTMENTS
IN SECURITIES
(000S)		     OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 3/31/09

    $ 6      $ —  

Realized gain (loss)

      —          —  

Change in unrealized appreciation/depreciation

      (5 )      —  

Net Purchases (Sales)

      —          —  

Transfers in and/or out of Level 3

      —          —  
              

Balance as of 6/30/09

    $ 1      $ —  

 

* Other financial instruments include futures, forwards, and open written options if applicable.

The amount of change in unrealized loss due to investments in level 3 securities still held at June 30, 2009 was $5,000.

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

   SCHEDULE OF INVESTMENTS
INCOME EQUITY FUND    JUNE 30, 2009 (UNAUDITED)

 

      NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 52.5%

      

Auto Parts & Equipment - 1.1%

      

Magna International, Inc., Class A

    60,000    $ 2,534
         

Beverages - 0.9%

      

Coca-Cola (The) Co.

    45,000      2,159
         

Chemicals - 1.4%

      

Dow Chemical (The) Co.

    200,000      3,228
         

Computers - 4.1%

      

Accenture Ltd., Class A

    145,000      4,852

Computer Sciences Corp.*

    110,000      4,873
         
        9,725
         

Cosmetics/Personal Care - 1.0%

      

Procter & Gamble (The) Co.

    45,000      2,299
         

Electrical Components & Equipment - 0.5%

      

Emerson Electric Co.

    40,000      1,296
         

Food - 6.2%

      

B&G Food, Inc.

    280,000      4,063

General Mills, Inc.

    20,000      1,121

Kellogg Co.

    55,000      2,561

Kraft Foods, Inc., Class A

    180,000      4,561

SUPERVALU, Inc.

    200,000      2,590
         
        14,896
         

Forest Products & Paper - 2.1%

      

Rayonier, Inc.

    140,000      5,089
         

Healthcare - Products - 2.0%

      

Johnson & Johnson

    85,000      4,828
         

Insurance - 4.2%

      

Berkshire Hathaway, Inc., Class A*

    20      1,800

Chubb Corp.

    100,000      3,988

Travelers Cos. (The), Inc.

    105,000      4,309
         
        10,097
         

Media - 2.0%

      

Disney (The Walt) Co.

    200,000      4,666
         

Mining - 1.7%

      

Southern Copper Corp.

    195,000      3,986
         

Miscellaneous Manufacturing - 4.0%

      

3M Co.

    75,000      4,507

Eaton Corp.

    60,000      2,677

General Electric Co.

    205,000      2,403
         
        9,587
         

Oil & Gas - 9.1%

      

ConocoPhillips

    75,000      3,154

Devon Energy Corp.

    60,000      3,270

EnCana Corp.

    75,000      3,710

Marathon Oil Corp.

    144,000      4,339

Occidental Petroleum Corp.

    75,000      4,936

Sunoco, Inc.

    30,000      696

Valero Energy Corp.

    95,000      1,605
         
        21,710
         

Pharmaceuticals - 5.5%

      

Abbott Laboratories

    40,000      1,882

AstraZeneca PLC ADR

    35,000      1,545

Bristol-Myers Squibb Co.

    75,000      1,523

GlaxoSmithKline PLC ADR

    127,000      4,488

Pfizer, Inc.

    255,000      3,825
         
        13,263
         

Real Estate Investment Trusts - 1.3%

      

Healthcare Realty Trust, Inc.

    185,000      3,114
         

Retail - 2.2%

      

Best Buy Co., Inc.

    50,000      1,674

Home Depot (The), Inc.

    150,000      3,545
         
        5,219
         

Telecommunications - 3.2%

      

Nokia OYJ ADR

    215,000      3,135

Verizon Communications, Inc.

    150,000      4,609
         
        7,744
         

Total Common Stocks

      
         

(Cost $155,472)

         125,440

CONVERTIBLE PREFERRED STOCKS - 11.4%

      

Chemicals - 2.0%

      

Celanese Corp., 4.25%

    150,000      4,741
         

Electric - 1.1%

      

Great Plains Energy, Inc., 12.00%

    45,000      2,588
         

Pharmaceuticals - 4.6%

      

Mylan, Inc. of Pennsylvania, 6.50%

    4,500      3,876

Schering-Plough Corp., 6.00%

    32,000      7,255
         
        11,131
         

Savings & Loans - 3.7%

      

New York Community Capital Trust V, 6.00%

    200,000      6,656

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

INCOME EQUITY FUND    continued   

 

     NUMBER
OF SHARES		    VALUE
(000S)

CONVERTIBLE PREFERRED STOCKS - 11.4% continued

      

Savings & Loans - 3.7% continued

      

Sovereign Capital Trust IV, 4.38%

      100,000    $ 2,087
         
        8,743
         

Total Convertible Preferred Stocks

      
         

(Cost $33,046)

         27,203
     PRINCIPAL
AMOUNT
(000S)		     

CONVERTIBLE BONDS - 30.3%

      

Computers - 7.8%

      

CACI International, Inc.,

      

2.13%, 5/1/14

    $ 6,000      5,580

Maxtor Corp.,

      

2.38%, 8/15/12

      4,500      3,870

Mentor Graphics Corp.,

      

6.25%, 3/1/26

      5,000      3,888

NetApp, Inc.,

      

1.75%, 6/1/13(1) (2)

      6,000      5,332
         
        18,670
         

Healthcare - Services - 1.7%

      

LifePoint Hospitals, Inc.,

      

3.50%, 5/15/14

      5,000      4,006
         

Home Builders - 0.7%

      

DR Horton, Inc.,

      

2.00%, 5/15/14

      1,750      1,680
         

Housewares - 0.3%

      

Newell Rubbermaid, Inc.,

      

5.50%, 3/15/14

      500      705
         

Insurance - 3.8%

      

American Equity Investment Life Holding Co.,

      

5.25%, 12/6/24

      8,000      5,920

Old Republic International Corp.,

      

8.00%, 5/15/12

      3,000      3,045
         
        8,965
         

Iron/Steel - 0.7%

      

ArcelorMittal,

      

5.00%, 5/15/14

      1,100      1,400

United States Steel Corp.,

      

4.00%, 5/15/14

      200      261
         
        1,661
         

Mining - 2.2%

      

Newmont Mining Corp.,

      

1.63%, 7/15/17

      5,000      5,288
         

Miscellaneous Manufacturing - 0.1%

      

Ingersoll-Rand Co. Ltd.,

      

4.50%, 4/15/12

      250      335
         

Oil & Gas - 3.1%

      

Transocean, Inc.,

      

1.50%, 12/15/37

      5,000      4,531

1.63%, 12/15/37

      3,000      2,850
         
        7,381
         

Pharmaceuticals - 2.1%

      

Watson Pharmaceuticals, Inc.,

      

1.75%, 3/15/23

      5,000      4,912
         

Retail - 1.9%

      

Sonic Automotive, Inc.,

      

4.25%, 11/30/15

      5,500      4,641
         

Semiconductors - 2.1%

      

Intel Corp.,

      

2.95%, 12/15/35

      6,000      5,032
         

Telecommunications - 3.8%

      

Alaska Communications Systems Group, Inc.,

      

5.75%, 3/1/13

      5,500      4,428

NII Holdings, Inc.,

      

3.13%, 6/15/12

      6,000      4,650
         
        9,078
         

Total Convertible Bonds

      
         

(Cost $82,206)

         72,354

SHORT - TERM INVESTMENTS - 5.6%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

      13,537      13,537
         

Total Short-Term Investments

      
         

(Cost $13,537)

         13,537
         

Total Investments - 99.8%

      
         

(Cost $284,261)

         238,534

Other Assets less Liabilities - 0.2%

         539
         

NET ASSETS - 100.0%

       $ 239,073

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

(1) Restricted security that has been deemed illiquid. At June 30, 2009, the value of the restricted illiquid security amounted to approximately $5,332,000 or 2.2% of net assets. Additional information on the restricted illiquid security is as follows:

 

SECURITY

    ACQUISTION
AND
ENFORCEABLE
DATE		    ACQUISTION
COST
(000S)

NetApp, Inc.,

1.75%, 6/1/13

    6/04/08 - 7/16/08    5,956
         

 

(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 284,261   
        

Gross tax appreciation of investments

    $ 8,310   

Gross tax depreciation of investments

      (54,037 ) 
        

Net tax depreciation of investments

    $ (45,727 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Income Equity Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 125,440 (1)    $ —        $ —      $ 125,440

Preferred Stocks

      27,203 (1)      —          —        27,203

Convertible Bonds

      —          72,354 (1)      —        72,354

Short-Term Investments

      —          13,537        —        13,537
                             

Total Investments

    $ 152,643      $ 85,891      $ —      $ 238,534
                             

 

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

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

   SCHEDULE OF INVESTMENTS
INTERNATIONAL GROWTH EQUITY FUND    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.8%

      

Australia - 2.0%

      

QBE Insurance Group Ltd.

    149,385    $ 2,383

Telstra Corp. Ltd.

    1,055,536      2,880
         
        5,263
         

Belgium - 2.0%

      

Anheuser-Busch InBev N.V.

    144,724      5,239
         

Brazil - 2.0%

      

Petroleo Brasileiro S.A. ADR

    66,230      2,714

Vale S.A. ADR

    147,683      2,604
         
        5,318
         

Canada - 0.9%

      

Bombardier, Inc., Class B

    824,477      2,446
         

China - 1.3%

      

Bank of China Ltd., Class H

    7,349,000      3,482
         

Finland - 2.0%

      

Nokia OYJ

    169,979      2,481

UPM-Kymmene OYJ

    316,171      2,755
         
        5,236
         

France - 10.0%

      

Accor S.A.

    52,810      2,100

Air Liquide S.A.

    24,983      2,288

BNP Paribas

    83,595      5,425

Peugeot S.A.*

    114,885      3,030

Societe Generale

    102,798      5,609

Total S.A.

    72,747      3,940

UBISOFT Entertainment*

    110,403      2,699

Veolia Environment

    46,424      1,372
         
        26,463
         

Germany - 9.1%

      

Allianz S.E. (Registered)

    43,145      3,990

Deutsche Bank A.G. (Registered)

    41,270      2,511

Deutsche Telekom A.G. (Registered)

    213,418      2,522

E.ON A.G.

    113,417      4,026

GEA Group A.G.

    98,121      1,489

Linde A.G.

    28,751      2,364

SAP A.G.

    80,584      3,249

Siemens A.G. (Registered)

    58,014      4,016
         
        24,167
         

Hong Kong - 1.6%

      

Huabao International Holdings Ltd.

    4,541,000      4,389
         

Ireland - 0.8%

      

Covidien PLC

    54,332      2,034
         

Italy - 2.7%

      

Enel S.p.A.

    672,486      3,276

ENI S.p.A.

    168,933      4,008
         
        7,284
         

Japan - 19.0%

      

Chiyoda Corp.

    326,000      2,624

Chubu Electric Power Co., Inc.

    93,000      2,150

East Japan Railway Co.

    29,000      1,746

Fast Retailing Co. Ltd.

    24,600      3,204

Kawasaki Heavy Industries Ltd.

    1,029,000      2,820

Kinden Corp.

    183,000      1,603

Kubota Corp.

    283,000      2,324

Mitsubishi UFJ Financial Group, Inc.

    1,013,295      6,229

Mitsui & Co. Ltd.

    297,500      3,505

Murata Manufacturing Co. Ltd.

    47,200      2,001

NGK Insulators Ltd.

    71,000      1,442

Nomura Holdings, Inc.

    402,600      3,373

Shin-Etsu Chemical Co. Ltd.

    54,700      2,526

Shiseido Co. Ltd.

    119,000      1,947

Sony Corp.

    139,200      3,596

Sumitomo Metal Mining Co. Ltd.

    206,000      2,897

Toyota Motor Corp.

    171,200      6,472
         
        50,459
         

Netherlands - 6.3%

      

Koninklijke Ahold N.V.

    143,814      1,652

Koninklijke KPN N.V.

    147,935      2,038

Qiagen N.V.*

    99,122      1,840

Royal Dutch Shell PLC, Class B (London Exchange)

    294,518      7,436

Unilever N.V. - CVA

    154,264      3,723
         
        16,689
         

Portugal - 0.5%

      

Jeronimo Martins SGPS S.A.

    197,551      1,349
         

Singapore - 3.1%

      

CapitaLand Ltd.

    1,885,600      4,789

DBS Group Holdings Ltd.

    415,000      3,368
         
        8,157
         

Spain - 2.9%

      

Iberdrola Renovables S.A.*

    256,701      1,175

Iberdrola S.A.

    287,492      2,338

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL GROWTH EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.8% continued

      

Spain - 2.9% continued

      

Telefonica S.A.

      189,099    $ 4,288
         
        7,801
         

Sweden - 1.4%

      

Telefonaktiebolaget LM Ericsson, Class B

      396,491      3,878
         

Switzerland - 8.6%

      

ABB Ltd. (Registered)*

      215,830      3,397

ACE Ltd.

      43,947      1,944

Credit Suisse Group A.G. (Registered)

      60,271      2,751

Novartis A.G. (Registered)

      126,242      5,129

Roche Holding A.G. (Genusschein)

      47,930      6,521

Syngenta A.G. (Registered)

      13,149      3,054
         
        22,796
         

United Kingdom - 21.1%

      

Autonomy Corp. PLC*

      111,575      2,644

BAE Systems PLC

      348,550      1,946

BP PLC

      540,531      4,277

Compass Group PLC

      770,117      4,340

GlaxoSmithKline PLC

      313,976      5,529

HSBC Holdings PLC

      283,158      2,351

ITV PLC

      3,313,557      1,913

National Grid PLC

      242,193      2,184

Pearson PLC

      230,979      2,320

QinetiQ Group PLC

      601,250      1,423

Reckitt Benckiser Group PLC

      88,386      4,028

Rolls-Royce Group PLC*

      771,425      4,600

Royal Bank of Scotland Group PLC*

      4,140,956      2,633

Standard Chartered PLC

      196,324      3,698

Vodafone Group PLC

      3,046,579      5,889

Weir Group (The) PLC

      300,325      2,289

WPP PLC

      591,132      3,932
         
        55,996
         

United States - 0.5%

      

Lazard Ltd., Class A

      52,762      1,420
         

Total Common Stocks

      
         

(Cost $292,163) (1)

         259,866
     PRINCIPAL
AMOUNT
(000S)		     

SHORT - TERM INVESTMENTS - 0.0%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 2      2
         

Total Short-Term Investments

      
         

(Cost $2)

         2
         

Total Investments - 97.8%

      
         

(Cost $292,165)

         259,868

Other Assets less Liabilities - 2.2%

         5,818
         

NET ASSETS - 100.0%

       $ 265,686

 

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

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the International Growth Equity Fund were:

 

INDUSTRY SECTOR

    % OF LONG TERM
INVESTMENTS		  

Consumer Discretionary

    11.9 % 

Consumer Staples

    6.9   

Energy

    8.6   

Financials

    21.6   

Health Care

    8.1   

Industrials

    14.5   

Information Technology

    6.5   

Materials

    8.8   

Telecommunication Services

    6.8   

Utilities

    6.3   
      

Total

    100.0 % 
      

At June 30, 2009, the International Growth Equity Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Euro

    33.4 % 

British Pound

    24.4   

Japanese Yen

    19.4   

Swiss Franc

    8.0   

All other currencies less than 5%

    14.8   
      

Total

    100.0 % 
      

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 292,165   
        

Gross tax appreciation of investments

    $ 23,485   

Gross tax depreciation of investments

      (55,782 ) 
        

Net tax depreciation of investments

    $ (32,297 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the International Growth Equity Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

            

Consumer Discretionary

    $ —      $ 30,907    $ —      $ 30,907

Consumer Staples

      —        17,939      —        17,939

Energy

      2,714      19,661      —        22,375

Financials

      3,364      52,593      —        55,957

Health Care

      2,034      19,019      —        21,053

Industrials

      2,446      35,224      —        37,670

Information Technology

      —        16,951      —        16,951

Materials

      2,604      20,272      —        22,876

Telecommunication Services

      —        17,617      —        17,617

Utilities

      —        16,521      —        16,521

Short-Term Investments

      —        2      —        2
                           

Total Investments

    $ 13,162    $ 246,706    $ —      $ 259,868
                           

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

   SCHEDULE OF INVESTMENTS
LARGE CAP VALUE FUND    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.2%

      

Advertising - 2.1%

      

Omnicom Group, Inc.

    157,050    $ 4,960
         

Aerospace/Defense - 4.2%

      

Boeing (The) Co.

    134,575      5,720

Lockheed Martin Corp.

    53,915      4,348
         
        10,068
         

Banks - 8.4%

      

Bank of New York Mellon Corp.

    188,450      5,523

Goldman Sachs Group (The), Inc.

    52,666      7,765

Wells Fargo & Co.

    276,525      6,709
         
        19,997
         

Beverages - 3.9%

      

Coca-Cola (The) Co.

    100,245      4,811

PepsiCo, Inc.

    81,370      4,472
         
        9,283
         

Chemicals - 1.4%

      

Dow Chemical (The) Co.

    212,440      3,429
         

Computers - 1.0%

      

IBM Corp.

    22,715      2,372
         

Cosmetics/Personal Care - 1.8%

      

Procter & Gamble (The) Co.

    83,875      4,286
         

Diversified Financial Services - 5.5%

      

American Express Co.

    250,320      5,817

BlackRock, Inc.

    42,461      7,449
         
        13,266
         

Food - 1.9%

      

Kraft Foods, Inc., Class A

    179,675      4,553
         

Forest Products & Paper - 1.6%

      

Weyerhaeuser Co.

    124,205      3,779
         

Hand/Machine Tools - 1.4%

      

Black & Decker Corp.

    120,300      3,448
         

Healthcare - Products - 4.3%

      

Johnson & Johnson

    87,100      4,947

Medtronic, Inc.

    150,805      5,262
         
        10,209
         

Insurance - 6.8%

      

Allstate (The) Corp.

    281,095      6,859

Chubb Corp.

    63,215      2,521

Hartford Financial Services Group, Inc.

    83,200      987

Metlife, Inc.

    201,000      6,032
         
        16,399
         

Machinery - Diversified - 2.0%

      

Deere & Co.

    116,915      4,671
         

Media - 2.2%

      

McGraw-Hill Cos. (The), Inc.

    175,870      5,295
         

Mining - 1.9%

      

Alcoa, Inc.

    448,300      4,631
         

Miscellaneous Manufacturing - 4.6%

      

3M Co.

    58,745      3,530

General Electric Co.

    639,130      7,491
         
        11,021
         

Oil & Gas - 7.1%

      

Chevron Corp.

    57,920      3,837

EnCana Corp.

    90,330      4,469

Exxon Mobil Corp.

    79,100      5,530

Sunoco, Inc.

    135,655      3,147
         
        16,983
         

Oil & Gas Services - 4.4%

      

Baker Hughes, Inc.

    134,530      4,902

Schlumberger Ltd.

    105,800      5,725
         
        10,627
         

Pharmaceuticals - 7.2%

      

Bristol-Myers Squibb Co.

    213,780      4,342

Pfizer, Inc.

    188,600      2,829

Sanofi-Aventis ADR

    156,700      4,621

Wyeth

    118,500      5,379
         
        17,171
         

Retail - 5.7%

      

Gap (The), Inc.

    169,250      2,776

Home Depot (The), Inc.

    260,950      6,166

Penney (J.C.) Co., Inc.

    167,400      4,806
         
        13,748
         

Savings & Loans - 3.5%

      

Hudson City Bancorp, Inc.

    255,255      3,392

New York Community Bancorp, Inc.

    460,955      4,928
         
        8,320
         

Semiconductors - 5.3%

      

Analog Devices, Inc.

    205,425      5,090

Intel Corp.

    458,500      7,588
         
        12,678
         

Software - 3.3%

      

Microsoft Corp.

    334,420      7,949
         

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

LARGE CAP VALUE FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.2% continued

      

Telecommunications - 5.7%

      

AT&T, Inc.

    128,120    $ 3,183

Telefonaktiebolaget LM Ericsson ADR

    467,105      4,568

Verizon Communications, Inc.

    194,895      5,989
         
        13,740
         

Tobacco - 2.0%

      

Philip Morris International, Inc.

    109,200      4,763
         

Total Common Stocks

      
         

(Cost $273,043)

         237,646

 

     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 0.3%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 814    $ 814
         

Total Short-Term Investments

      
         

(Cost $814)

         814
         

Total Investments - 99.5%

      
         

(Cost $273,857)

         238,460

Other Assets less Liabilities - 0.5%

         1,138
         

NET ASSETS - 100.0%

       $ 239,598

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 273,857   
        

Gross tax appreciation of investments

    $ 14,480   

Gross tax depreciation of investments

      (49,877 ) 
        

Net tax depreciation of investments

    $ (35,397 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities, and other financial instruments, if any. Following is a summary of the inputs used in valuing the Large Cap Value Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 237,646 (1)    $ —    $ —    $ 237,646

Short-Term Investments

      —        814      —      814
                            

Total Investments

    $ 237,646      $ 814    $ —    $ 238,460
                            

 

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

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

  SCHEDULE OF INVESTMENTS
MID CAP GROWTH FUND   JUNE 30, 2009 (UNAUDITED)

 

     NUMBER    VALUE
     OF SHARES    (000S)

COMMON STOCKS - 97.4%

      

Aerospace/Defense - 2.3%

      

Elbit Systems Ltd.

    22,248    $ 1,376

Goodrich Corp.

    21,872      1,093
         
        2,469
         

Auto Manufacturers - 0.6%

      

Navistar International Corp.*

    14,750      643
         

Banks - 4.2%

      

City National Corp. of California

    36,508      1,345

Credicorp Ltd.

    25,792      1,501

State Street Corp.

    33,888      1,599
         
        4,445
         

Beverages - 1.1%

      

Hansen Natural Corp.*

    39,785      1,226
         

Biotechnology - 1.7%

      

Charles River Laboratories International, Inc.*

    22,700      766

Life Technologies Corp.*

    25,209      1,052
         
        1,818
         

Chemicals - 1.2%

      

FMC Corp.

    27,617      1,306
         

Commercial Services - 6.6%

      

Alliance Data Systems Corp.*

    20,766      855

Apollo Group, Inc., Class A*

    25,215      1,793

FTI Consulting, Inc.*

    28,106      1,426

ITT Educational Services, Inc.*

    16,868      1,698

Monster Worldwide, Inc.*

    109,737      1,296
         
        7,068
         

Computers - 4.9%

      

Brocade Communications Systems, Inc.*

    180,777      1,414

Micros Systems, Inc.*

    33,800      856

NetApp, Inc.*

    59,809      1,179

Riverbed Technology, Inc.*

    42,881      994

Western Digital Corp.*

    27,990      742
         
        5,185
         

Cosmetics/Personal Care - 1.3%

      

Chattem, Inc.*

    20,334      1,385
         

Distribution/Wholesale - 1.5%

      

LKQ Corp.*

    99,906      1,643
         

Diversified Financial Services - 2.4%

      

IntercontinentalExchange, Inc.*

    12,330      1,408

Lazard Ltd., Class A

    43,301      1,166
         
        2,574
         

Electrical Components & Equipment - 2.2%

      

General Cable Corp.*

    31,649      1,189

GrafTech International Ltd.*

    98,099      1,110
         
        2,299
         

Electronics - 3.0%

      

Amphenol Corp., Class A

    33,854      1,071

Cogent, Inc.*

    84,205      904

Jabil Circuit, Inc.

    171,946      1,276
         
        3,251
         

Engineering & Construction - 3.9%

      

Fluor Corp.

    38,196      1,959

Shaw Group (The), Inc.*

    40,441      1,109

URS Corp.*

    22,173      1,098
         
        4,166
         

Food - 0.8%

      

TreeHouse Foods, Inc.*

    29,465      848
         

Healthcare - Products - 4.9%

      

Haemonetics Corp.*

    21,285      1,213

Inverness Medical Innovations, Inc.*

    28,368      1,010

NuVasive, Inc.*

    20,294      905

ResMed, Inc.*

    30,033      1,223

Thoratec Corp.*

    33,721      903
         
        5,254
         

Healthcare - Services - 3.1%

      

AMERIGROUP Corp.*

    38,924      1,045

LifePoint Hospitals, Inc.*

    40,902      1,074

Quest Diagnostics, Inc.

    21,903      1,236
         
        3,355
         

Household Products/Wares - 1.6%

      

Scotts Miracle-Gro (The) Co., Class A

    48,976      1,717
         

Internet - 2.7%

      

McAfee, Inc.*

    28,085      1,185

Netease.com*

    17,024      599

Priceline.com, Inc.*

    9,892      1,103
         
        2,887
         

Iron/Steel - 1.2%

      

Cliffs Natural Resources, Inc.

    51,298      1,255
         

Lodging - 2.3%

      

Ameristar Casinos, Inc.

    58,768      1,118

Marriott International, Inc., Class A

    60,740      1,341
         
        2,459
         

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

MID CAP GROWTH FUND    continued

 

     NUMBER    VALUE
     OF SHARES    (000S)

COMMON STOCKS - 97.4% continued

      

Machinery - Diversified - 1.0%

      

Flowserve Corp.

      14,937    $ 1,043
         

Media - 1.3%

      

Discovery Communications, Inc., Class A*

      62,058      1,399
         

Miscellaneous Manufacturing - 0.8%

      

Hexcel Corp.*

      90,005      858
         

Oil & Gas - 2.4%

      

Newfield Exploration Co.*

      34,396      1,124

Noble Energy, Inc.

      24,842      1,465
         
        2,589
         

Oil & Gas Services - 3.6%

      

Cameron International Corp.*

      49,302      1,395

Core Laboratories N.V.

      16,594      1,446

Oceaneering International, Inc.*

      22,153      1,002
         
        3,843
         

Packaging & Containers - 1.5%

      

Rock-Tenn Co., Class A

      42,331      1,615
         

Pharmaceuticals - 3.7%

      

Express Scripts, Inc.*

      22,854      1,571

Mylan, Inc.*

      86,131      1,124

Valeant Pharmaceuticals International*

      49,054      1,262
         
        3,957
         

Retail - 10.7%

      

Aaron’s, Inc.

      34,524      1,029

Advance Auto Parts, Inc.

      29,862      1,239

Cheesecake Factory (The), Inc.*

      74,047      1,281

Coinstar, Inc.*

      26,840      717

Dollar Tree, Inc.*

      25,384      1,069

Guess?, Inc.

      47,171      1,216

Nordstrom, Inc.

      57,773      1,149

PetSmart, Inc.

      63,625      1,365

Ross Stores, Inc.

      27,379      1,057

World Fuel Services Corp.

      31,692      1,307
         
        11,429
         

Semiconductors - 6.7%

      

ON Semiconductor Corp.*

      288,559      1,979

Silicon Laboratories, Inc.*

      29,177      1,107

Skyworks Solutions, Inc.*

      149,587      1,463

Teradyne, Inc.*

      172,867      1,186

Xilinx, Inc.

      70,853      1,450
         
        7,185
         

Software - 5.1%

      

ANSYS, Inc.*

      49,367      1,538

Quality Systems, Inc.

      28,882      1,645

Red Hat, Inc.*

      65,503      1,319

Sybase, Inc.*

      31,438      985
         
        5,487
         

Telecommunications - 3.6%

      

CommScope, Inc.*

      63,846      1,677

Millicom International Cellular S.A.*

      20,148      1,133

Starent Networks Corp.*

      41,379      1,010
         
        3,820
         

Transportation - 3.5%

      

Con-way, Inc.

      33,622      1,187

CSX Corp.

      38,498      1,333

Hunt (J.B.) Transport Services, Inc.

      38,607      1,179
         
        3,699
         

Total Common Stocks

      
         

(Cost $90,877)

         104,177
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 1.5%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 1,622      1,622
         

Total Short-Term Investments

      
         

(Cost $1,622)

         1,622
         

Total Investments - 98.9%

      
         

(Cost $92,499)

         105,799

Other Assets less Liabilities - 1.1%

         1,175
         

NET ASSETS - 100.0%

       $ 106,974

 

* Non-Income Producing Security

Percentages shown are based on Net Assets.

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 92,499   
        

Gross tax appreciation of investments

    $ 14,735   

Gross tax depreciation of investments

      (1,435 ) 
        

Federal tax appreciation of investments

    $ 13,300   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Mid Cap Growth Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 104,177 (1)    $ —      $ —      $ 104,177

Short-Term Investments

      —          1,622      —        1,622
                            

Total Investments

    $ 104,177      $ 1,622    $ —      $ 105,799
                            

 

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

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

  SCHEDULE OF INVESTMENTS
SELECT EQUITY FUND   JUNE 30, 2009 (UNAUDITED)

 

     NUMBER    VALUE
     OF SHARES    (000S)

COMMON STOCKS - 98.0%

      

Aerospace/Defense - 4.4%

      

Goodrich Corp.

    34,185    $ 1,708

Lockheed Martin Corp.

    19,305      1,557
         
        3,265
         

Agriculture - 5.1%

      

Archer-Daniels-Midland Co.

    47,360      1,268

Philip Morris International, Inc.

    58,645      2,558
         
        3,826
         

Banks - 2.4%

      

Goldman Sachs Group (The), Inc.

    7,050      1,039

State Street Corp.

    15,605      737
         
        1,776
         

Beverages - 1.9%

      

Dr Pepper Snapple Group, Inc.*

    67,500      1,430
         

Biotechnology - 2.6%

      

Gilead Sciences, Inc.*

    14,735      690

Millipore Corp.*

    18,300      1,285
         
        1,975
         

Chemicals - 1.2%

      

FMC Corp.

    19,280      912
         

Commercial Services - 1.1%

      

Robert Half International, Inc.

    34,050      804
         

Computers - 11.0%

      

Apple, Inc.*

    17,670      2,517

EMC Corp. of Massachusetts*

    96,535      1,265

IBM Corp.

    21,095      2,203

NetApp, Inc.*

    57,130      1,126

Western Digital Corp.*

    41,625      1,103
         
        8,214
         

Diversified Financial Services - 1.5%

      

BlackRock, Inc.

    6,500      1,140
         

Electric - 1.6%

      

Public Service Enterprise Group, Inc.

    37,865      1,236
         

Engineering & Construction - 1.6%

      

Fluor Corp.

    23,750      1,218
         

Food - 3.3%

      

Kraft Foods, Inc., Class A

    60,400      1,531

Sysco Corp.

    41,080      923
         
        2,454
         

Healthcare - Products - 0.8%

      

Gen-Probe, Inc.*

    13,915      598
         

Healthcare - Services - 6.2%

      

Quest Diagnostics, Inc.

    28,555      1,611

UnitedHealth Group, Inc.

    50,715      1,267

WellPoint, Inc.*

    35,480      1,806
         
        4,684
         

Household Products/Wares - 2.1%

      

Kimberly-Clark Corp.

    30,285      1,588
         

Internet - 7.4%

      

Amazon.com, Inc.*

    11,380      952

Baidu, Inc. ADR*

    1,280      386

eBay, Inc.*

    74,570      1,277

Google, Inc., Class A*

    4,755      2,005

Sohu.com, Inc.*

    14,805      930
         
        5,550
         

Iron/Steel - 0.5%

      

Cia Siderurgica Nacional S.A. ADR

    16,680      373
         

Lodging - 1.0%

      

Marriott International, Inc., Class A

    34,930      771
         

Metal Fabrication/Hardware - 0.9%

      

Precision Castparts Corp.

    9,440      689
         

Mining - 2.5%

      

Freeport-McMoRan Copper & Gold, Inc.

    6,010      301

Goldcorp, Inc.

    30,620      1,064

Teck Resources Ltd., Class B*

    33,280      531
         
        1,896
         

Oil & Gas - 6.2%

      

Exxon Mobil Corp.

    18,105      1,266

Occidental Petroleum Corp.

    24,200      1,592

Talisman Energy, Inc.

    62,685      896

Transocean Ltd.*

    11,630      864
         
        4,618
         

Pharmaceuticals - 7.4%

      

Abbott Laboratories

    24,745      1,164

AstraZeneca PLC ADR

    35,500      1,567

Lilly (Eli) & Co.

    45,245      1,567

Teva Pharmaceutical Industries Ltd. ADR

    25,245      1,246
         
        5,544
         

Retail - 8.5%

      

Gap (The), Inc.

    79,890      1,310

Kohl’s Corp.*

    32,030      1,369

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SELECT EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 98.0% continued

      

Retail - 8.5% continued

      

TJX Cos., Inc.

      36,725    $ 1,156

Wal-Mart Stores, Inc.

      24,105      1,168

Yum! Brands, Inc.

      40,140      1,338
         
        6,341
         

Semiconductors - 3.7%

      

Broadcom Corp., Class A*

      26,705      662

Intel Corp.

      23,575      390

Marvell Technology Group Ltd.*

      31,570      367

National Semiconductor Corp.

      46,680      586

Texas Instruments, Inc.

      36,100      769
         
        2,774
         

Software - 5.9%

      

Microsoft Corp.

      127,160      3,023

Oracle Corp.

      64,000      1,371
         
        4,394
         

Telecommunications - 5.8%

      

Cisco Systems, Inc.*

      92,690      1,728

Juniper Networks, Inc.*

      16,585      391

Millicom International Cellular S.A.*

      16,795      945

Nokia OYJ ADR

      86,345      1,259
         
        4,323
         

Transportation - 1.4%

      

United Parcel Service, Inc., Class B

      21,325      1,066
         

Total Common Stocks

      
         

(Cost $68,557)

         73,459

PREFERRED STOCKS - 1.7%

      

Beverages - 1.7%

      

Cia de Bebidas das Americas ADR

      19,180      1,243
         

Total Preferred Stocks

      
         

(Cost $1,014)

         1,243
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 0.1%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit, 0.08%, 7/1/09

    $ 80      80
         

Total Short-Term Investments

      
         

(Cost $80)

         80

Total Investments - 99.8%

      
         

(Cost $69,651)

         74,782

Other Assets less Liabilities - 0.2%

         183
         

NET ASSETS - 100.0%

       $ 74,965

 

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 69,651   
        

Gross tax appreciation of investments

    $ 6,907   

Gross tax depreciation of investments

      (1,776 ) 
        

Net tax appreciation of investments

    $ 5,131   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Select Equity Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 73,459 (1)    $ —      $ —      $ 73,459

Preferred Stocks

      1,243 (1)      —        —        1,243

Short-Term Investments

      —          80      —        80
                            

Total Investments

    $ 74,702      $ 80    $ —      $ 74,782
                            

 

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

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

  SCHEDULE OF INVESTMENTS
SMALL CAP GROWTH FUND   JUNE 30, 2009 (UNAUDITED)

 

     NUMBER    VALUE
     OF SHARES    (000S)

COMMON STOCKS - 99.2%

      

Banks - 0.7%

      

City National Corp. of California

    6,730    $ 248
         

Biotechnology - 3.7%

      

Affymax, Inc.*

    9,360      172

AMAG Pharmaceuticals, Inc.*

    4,765      260

Charles River Laboratories

      

International, Inc.*

    7,170      242

Enzon Pharmaceuticals, Inc.*

    47,864      377

Seattle Genetics, Inc.*

    22,175      216
         
        1,267
         

Commercial Services - 8.4%

      

American Public Education, Inc.*

    9,185      364

Dollar Financial Corp.*

    22,315      308

Emergency Medical Services Corp.,

      

Class A*

    7,290      268

FTI Consulting, Inc.*

    5,729      291

Gartner, Inc.*

    25,410      388

HMS Holdings Corp.*

    7,410      302

Monster Worldwide, Inc.*

    29,670      350

Navigant Consulting, Inc.*

    24,734      319

Net 1 UEPS Technologies, Inc.*

    20,259      275
         
        2,865
         

Computers - 2.4%

      

Riverbed Technology, Inc.*

    12,325      286

SRA International, Inc., Class A*

    9,736      171

Synaptics, Inc.*

    9,155      354
         
        811
         

Cosmetics/Personal Care - 1.2%

      

Chattem, Inc.*

    5,931      404
         

Distribution/Wholesale - 3.2%

      

Beacon Roofing Supply, Inc.*

    23,721      343

LKQ Corp.*

    21,935      361

Owens & Minor, Inc.

    8,971      393
         
        1,097
         

Diversified Financial Services - 4.1%

      

GFI Group, Inc.

    48,825      329

Lazard Ltd., Class A

    9,430      254

Portfolio Recovery Associates, Inc.*

    11,455      444

Stifel Financial Corp.*

    7,445      358
         
        1,385
         

Electrical Components & Equipment - 4.4%

      

EnerSys*

    20,775      378

General Cable Corp.*

    9,400      353

GrafTech International Ltd.*

    28,585      323

Littelfuse, Inc.*

    22,185      443
         
        1,497
         

Electronics - 6.6%

      

American Science & Engineering, Inc.

    5,330      368

Cogent, Inc.*

    24,108      259

Dionex Corp.*

    5,986      365

Jabil Circuit, Inc.

    44,910      333

OSI Systems, Inc.*

    26,180      546

Plexus Corp.*

    17,625      361
         
        2,232
         

Engineering & Construction - 2.0%

      

Baker (Michael) Corp.*

    8,215      348

MYR Group, Inc.*

    15,885      321
         
        669
         

Entertainment - 1.1%

      

National CineMedia, Inc.

    26,810      369
         

Food - 0.8%

      

TreeHouse Foods, Inc.*

    9,305      268
         

Hand/Machine Tools - 0.8%

      

Regal-Beloit Corp.

    7,004      278
         

Healthcare - Products - 7.8%

      

Bruker Corp.*

    22,860      212

Greatbatch, Inc.*

    14,865      336

Haemonetics Corp.*

    5,831      332

ICU Medical, Inc.*

    8,128      335

Masimo Corp.*

    14,640      353

NuVasive, Inc.*

    5,740      256

ResMed, Inc.*

    7,485      305

Techne Corp.

    4,090      261

Thoratec Corp.*

    9,568      256
         
        2,646
         

Healthcare - Services - 3.3%

      

AMERIGROUP Corp.*

    11,645      313

LifePoint Hospitals, Inc.*

    14,935      392

RehabCare Group, Inc.*

    17,045      408
         
        1,113
         

Household Products/Wares - 1.1%

      

Scotts Miracle-Gro (The) Co., Class A

    10,670      374
         

Internet - 4.6%

      

AsiaInfo Holdings, Inc.*

    23,932      412

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP GROWTH FUND    continued

 

     NUMBER    VALUE
     OF SHARES    (000S)

COMMON STOCKS - 99.2% continued

      

Internet - 4.6% continued

      

Perfect World Co. Ltd. ADR*

    15,856    $ 453

Perficient, Inc.*

    52,350      366

TIBCO Software, Inc.*

    45,727      328
         
        1,559
         

Iron/Steel - 0.8%

      

Cliffs Natural Resources, Inc.

    11,385      279
         

Lodging - 1.1%

      

Ameristar Casinos, Inc.

    19,445      370
         

Machinery - Diversified - 0.7%

      

Wabtec Corp.

    8,005      258
         

Miscellaneous Manufacturing - 2.0%

      

AZZ, Inc.*

    12,897      444

Hexcel Corp.*

    25,245      240
         
        684
         

Oil & Gas - 2.0%

      

Berry Petroleum Co., Class A

    15,650      291

Encore Acquisition Co.*

    12,585      388
         
        679
         

Oil & Gas Services - 2.1%

      

NATCO Group, Inc., Class A*

    9,715      320

Oil States International, Inc.*

    15,715      380
         
        700
         

Packaging & Containers - 1.2%

      

Rock-Tenn Co., Class A

    11,135      425
         

Pharmaceuticals - 3.8%

      

Allos Therapeutics, Inc.*

    36,344      301

Catalyst Health Solutions, Inc.*

    15,710      392

Medivation, Inc.*

    12,390      278

Valeant Pharmaceuticals International*

    12,910      332
         
        1,303
         

Retail - 11.1%

      

Aaron’s, Inc.

    10,465      312

Asbury Automotive Group, Inc.

    16,405      168

Big 5 Sporting Goods Corp.

    27,710      306

CEC Entertainment, Inc.*

    10,713      316

Charming Shoppes, Inc.*

    65,165      242

Cheesecake Factory (The), Inc.*

    28,306      490

Coinstar, Inc.*

    9,800      262

Cracker Barrel Old Country Store, Inc.

    12,755      356

Guess?, Inc.

    15,623      403

Monro Muffler Brake, Inc.

    16,220      417

Texas Roadhouse, Inc., Class A*

    18,310      200

World Fuel Services Corp.

    7,823      322
         
        3,794
         

Semiconductors - 5.9%

      

Entegris, Inc.*

    98,085      267

IXYS Corp.

    24,976      253

Silicon Laboratories, Inc.*

    11,099      421

Skyworks Solutions, Inc.*

    41,645      407

Teradyne, Inc.*

    55,235      379

Ultratech, Inc.*

    23,530      289
         
        2,016
         

Software - 7.0%

      

Computer Programs & Systems, Inc.

    8,550      327

Informatica Corp.*

    20,878      359

Longtop Financial Technologies Ltd. ADR*

    6,828      168

Quality Systems, Inc.

    6,955      396

Seachange International, Inc.*

    49,533      398

Sybase, Inc.*

    7,685      241

Synchronoss Technologies, Inc.*

    25,825      317

Taleo Corp., Class A*

    9,635      176
         
        2,382
         

Telecommunications - 2.4%

      

CommScope, Inc.*

    17,440      458

Starent Networks Corp.*

    14,436      352
         
        810
         

Transportation - 2.9%

      

Con-way, Inc.

    10,475      370

Genesee & Wyoming, Inc., Class A*

    13,180      349

HUB Group, Inc., Class A*

    12,340      255
         
        974
         

Total Common Stocks

      
         

(Cost $29,607)

         33,756
         

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 0.8%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit, 0.08%, 7/1/09

    $ 288    $ 288   
           

Total Short-Term Investments

      
           

(Cost $288)

         288   
           

Total Investments - 100.0%

      
           

(Cost $29,895)

         34,044   

Liabilities less Other Assets - 0.0%

         (7 ) 
           

NET ASSETS - 100.0%

       $ 34,037   

 

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 29,895   
        

Gross tax appreciation of investments

    $ 4,755   

Gross tax depreciation of investments

      (606 ) 
        

Net tax depreciation of investments

    $ 4,149   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Small Cap Growth Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 33,756 (1)    $ —      $ —      $ 33,756

Short-Term Investments

      —          288      —        288
                            

Total Investments

    $ 33,756      $ 288    $ —      $ 34,044
                            

 

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

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

   SCHEDULE OF INVESTMENTS
SMALL CAP VALUE FUND    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7%

      

Advertising - 0.1%

      

Harte-Hanks, Inc.

    85,516    $ 791
         

Aerospace/Defense - 1.6%

      

AAR Corp.*

    114,661      1,840

Cubic Corp.

    39,500      1,414

Ducommun, Inc.

    67,746      1,273

Esterline Technologies Corp.*

    174,710      4,729

Herley Industries, Inc.*

    15,122      166

Moog, Inc., Class A*

    184,561      4,764

Triumph Group, Inc.

    93,654      3,746
         
        17,932
         

Agriculture - 0.3%

      

Andersons (The), Inc.

    24,517      734

Universal Corp. of Virginia

    91,827      3,040
         
        3,774
         

Airlines - 0.5%

      

Skywest, Inc.

    568,626      5,800
         

Apparel - 0.9%

      

Columbia Sportswear Co.

    99,731      3,084

Iconix Brand Group, Inc.*

    78,270      1,204

K-Swiss, Inc., Class A

    53,714      457

Lacrosse Footwear, Inc.

    3,504      33

Oxford Industries, Inc.

    117,087      1,364

Skechers U.S.A., Inc., Class A*

    205,564      2,008

Timberland (The) Co., Class A*

    105,150      1,395
         
        9,545
         

Auto Parts & Equipment - 0.7%

      

ATC Technology Corp.*

    151,988      2,204

Cooper Tire & Rubber Co.

    62,300      618

Dorman Products, Inc.*

    53,503      740

Exide Technologies*

    159,806      596

Miller Industries, Inc. of Tennessee*

    37,786      332

Modine Manufacturing Co.

    135,400      650

Superior Industries International, Inc.

    85,809      1,210

Titan International, Inc.

    123,978      926

Wonder Auto Technology, Inc.*

    400      4
         
        7,280
         

Banks - 11.1%

      

Alliance Financial Corp. of New York

    3,060      87

Bancfirst Corp.

    20,906      723

Bancorp Rhode Island, Inc.

    11,577      228

BancorpSouth, Inc.

    169,800      3,486

Bank Mutual Corp.

    151,532      1,321

Bank of Kentucky Financial Corp.

    9,651      270

Bank of the Ozarks, Inc.

    19,614      424

Capital City Bank Group, Inc.

    50,969      859

Capitol Bancorp Ltd.

    68,775      182

Cathay General Bancorp

    233,673      2,222

Century Bancorp, Inc. of Massachusetts, Class A

    7,229      133

Chemical Financial Corp.

    198,020      3,943

City Holding Co.

    34,462      1,046

CoBiz Financial, Inc.

    83,960      538

Columbia Banking System, Inc.

    81,913      838

Community Bank System, Inc.

    247,550      3,604

Community Trust Bancorp, Inc.

    91,251      2,441

CVB Financial Corp.

    195,520      1,167

Enterprise Financial Services Corp.

    31,000      282

Farmers Capital Bank Corp.

    43,168      1,087

First Bancorp of North Carolina

    46,053      722

First Bancorp of Puerto Rico

    533,625      2,108

First Busey Corp.

    89,370      657

First Commonwealth Financial Corp.

    543,620      3,447

First Community Bancshares, Inc. of Virginia

    102,871      1,321

First Financial Bancorp

    185,798      1,397

First Financial Corp. of Indiana

    55,200      1,743

First Merchants Corp.

    173,140      1,390

First Midwest Bancorp, Inc.

    250,940      1,834

FirstMerit Corp.

    278,944      4,736

FNB Corp. of Pennsylvania

    548,839      3,397

Glacier Bancorp, Inc.

    44,040      651

Harleysville National Corp.

    39,130      184

Heartland Financial USA, Inc.

    46,445      663

Heritage Commerce Corp.

    19,920      74

Heritage Financial Corp. of Washington

    15,194      176

Home Bancshares, Inc.

    1,600      30

IBERIABANK Corp.

    68,563      2,702

Independent Bank Corp. of Massachusetts

    49,927      984

International Bancshares Corp.

    286,017      2,949

Lakeland Bancorp, Inc.

    127,535      1,147

Lakeland Financial Corp.

    35,513      675

MainSource Financial Group, Inc.

    106,855      793

MB Financial, Inc.

    275,969      2,812

Nara Bancorp, Inc.

    16,658      86

National Penn Bancshares, Inc.

    695,184      3,205

NBT Bancorp, Inc.

    87,762      1,905

Northrim BanCorp, Inc.

    8,530      119

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Banks - 11.1% continued

      

Old National Bancorp of Indiana

    364,526    $ 3,580

Old Second Bancorp, Inc.

    25,633      151

Oriental Financial Group, Inc.

    12,800      124

Peoples Bancorp, Inc. of Ohio

    80,811      1,378

Pinnacle Financial Partners, Inc.*

    148,541      1,979

Prosperity Bancshares, Inc.

    234,710      7,001

Renasant Corp.

    104,358      1,567

Republic Bancorp, Inc. of Kentucky,

      

Class A

    1,600      36

S & T Bancorp, Inc.

    107,735      1,310

Sandy Spring Bancorp, Inc.

    36,618      538

SCBT Financial Corp.

    61,825      1,465

Sierra Bancorp

    20,804      263

Simmons First National Corp., Class A

    147,632      3,945

Southwest Bancorp, Inc. of Oklahoma

    68,574      669

StellarOne Corp.

    87,406      1,132

Sterling Bancshares, Inc. of Texas

    351,055      2,222

Sun Bancorp, Inc. of New Jersey*

    57,044      296

Susquehanna Bancshares, Inc.

    262,675      1,285

Texas Capital Bancshares, Inc.*

    96,017      1,485

Trico Bancshares

    54,929      851

Trustmark Corp.

    303,449      5,863

UCBH Holdings, Inc.

    529,583      667

UMB Financial Corp.

    146,981      5,587

Umpqua Holdings Corp.

    1,700      13

Union Bankshares Corp. of Virginia

    74,901      1,121

United Bankshares, Inc.

    176,283      3,445

Univest Corp. of Pennsylvania

    47,032      953

Washington Banking Co.

    28,140      265

Washington Trust Bancorp, Inc.

    60,130      1,072

WesBanco, Inc.

    41,836      608

Whitney Holding Corp.

    209,877      1,923

Wilshire Bancorp, Inc.

    138,763      798

Wintrust Financial Corp.

    26,524      427

Yadkin Valley Financial Corp.

    37,963      262
         
        121,069
         

Biotechnology - 0.2%

      

Cambrex Corp.*

    39,345      162

Martek Biosciences Corp.

    93,595      1,980
         
        2,142
         

Building Materials - 1.4%

      

Apogee Enterprises, Inc.

    96,678      1,189

Comfort Systems USA, Inc.

    139,126      1,426

Drew Industries, Inc.*

    62,222      757

Gibraltar Industries, Inc.

    112,365      772

Interline Brands, Inc.*

    132,773      1,816

LSI Industries, Inc.

    131,798      718

Quanex Building Products Corp.

    149,437      1,677

Simpson Manufacturing Co., Inc.

    140,662      3,041

Texas Industries, Inc.

    15,400      483

Trex Co., Inc.*

    3,100      42

Universal Forest Products, Inc.

    96,889      3,206
         
        15,127
         

Chemicals - 3.3%

      

Arch Chemicals, Inc.

    190,039      4,673

Cabot Corp.

    84,326      1,061

Cytec Industries, Inc.

    76,659      1,427

Fuller (H.B.) Co.

    383,674      7,202

Innophos Holdings, Inc.

    30,693      518

Innospec, Inc.

    53,500      575

Minerals Technologies, Inc.

    80,533      2,901

NewMarket Corp.

    13,240      891

OM Group, Inc.*

    71,525      2,076

PolyOne Corp.*

    279,019      756

Quaker Chemical Corp.

    17,502      233

Rockwood Holdings, Inc.*

    114,471      1,676

Schulman (A.), Inc.

    227,264      3,434

Sensient Technologies Corp.

    284,896      6,430

Symyx Technologies, Inc.*

    126,400      739

Westlake Chemical Corp.

    87,902      1,792

Zoltek Cos., Inc.*

    9,000      88
         
        36,472
         

Coal - 0.3%

      

Massey Energy Co.

    178,578      3,489
         

Commercial Services - 3.9%

      

Aaron’s, Inc.

    48,372      1,442

ABM Industries, Inc.

    81,591      1,474

Albany Molecular Research, Inc.*

    157,479      1,321

AMN Healthcare Services, Inc.*

    62,016      396

Barrett Business Services, inc.

    24,316      255

CDI Corp.

    91,498      1,020

ChinaCast Education Corp.*

    19,844      141

CRA International, Inc.*

    25,574      710

Cross Country Healthcare, Inc.*

    165,532      1,137

Electro Rent Corp.

    118,457      1,124

Emergency Medical Services Corp., Class A*

    41,793      1,539

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Commercial Services - 3.9% continued

      

First Advantage Corp., Class A*

    108,518    $ 1,651

H&E Equipment Services, Inc.*

    81,422      761

Hackett Group (The), Inc.*

    57,970      135

Heidrick & Struggles International, Inc.

    93,557      1,707

Jackson Hewitt Tax Service, Inc.

    35,882      225

Kelly Services, Inc., Class A

    66,899      733

Kenexa Corp.*

    7,928      92

Kforce, Inc.*

    65,430      541

Korn/Ferry International*

    130,457      1,388

MAXIMUS, Inc.

    24,043      992

Monro Muffler, Inc.

    3,900      100

MPS Group, Inc.*

    750,000      5,730

On Assignment, Inc.*

    205,814      805

PHH Corp.*

    182,040      3,310

Rent-A-Center, Inc.*

    344,792      6,148

Rewards Network, Inc.*

    74,927      283

Spherion Corp.*

    78,624      324

Stewart Enterprises, Inc., Class A

    505,397      2,436

United Rentals, Inc.*

    137,793      894

Viad Corp.

    146,547      2,524

Watson Wyatt Worldwide, Inc., Class A

    37,760      1,417
         
        42,755
         

Computers - 2.4%

      

Agilysys, Inc.

    202,046      946

CACI International, Inc., Class A*

    173,381      7,405

CIBER, Inc.*

    282,427      875

Cray, Inc.*

    234,297      1,846

Electronics for Imaging, Inc.*

    142,870      1,523

Imation Corp.

    91,086      693

Insight Enterprises, Inc.*

    254,236      2,456

Mentor Graphics Corp.*

    142,728      781

MTS Systems Corp.

    34,330      709

Ness Technologies, Inc.*

    128,545      503

Perot Systems Corp., Class A*

    490,761      7,033

SRA International, Inc., Class A*

    75,716      1,329
         
        26,099
         

Cosmetics/Personal Care - 0.1%

      

Elizabeth Arden, Inc.*

    18,278      159

Inter Parfums, Inc.

    51,860      381
         
        540
         

Distribution/Wholesale - 1.0%

      

Core-Mark Holding Co., Inc.*

    39,112      1,019

Owens & Minor, Inc.

    27,402      1,201

School Specialty, Inc.*

    123,279      2,491

Tech Data Corp.*

    59,774      1,955

United Stationers, Inc.*

    123,043      4,292
         
        10,958
         

Diversified Financial Services - 1.8%

      

Encore Capital Group, Inc.*

    54,187      718

Financial Federal Corp.

    148,323      3,048

GFI Group, Inc.

    66,200      446

Investment Technology Group, Inc.*

    67,626      1,379

Janus Capital Group, Inc.

    89,200      1,017

Knight Capital Group, Inc., Class A*

    281,216      4,795

Nelnet, Inc., Class A*

    80,627      1,096

Ocwen Financial Corp.*

    198,076      2,569

Penson Worldwide, Inc.*

    64,066      573

Stifel Financial Corp.*

    29,764      1,431

SWS Group, Inc.

    150,557      2,103
         
        19,175
         

Electric - 4.3%

      

Allete, Inc.

    154,513      4,442

Avista Corp.

    273,264      4,867

Central Vermont Public Service Corp.

    143,930      2,605

CH Energy Group, Inc.

    46,372      2,166

Cleco Corp.

    63,800      1,430

El Paso Electric Co.*

    284,433      3,971

Empire District Electric (The) Co.

    36,500      603

Idacorp, Inc.

    264,304      6,909

MGE Energy, Inc.

    22,525      756

NorthWestern Corp.

    104,826      2,386

Otter Tail Corp.

    115,669      2,526

Pike Electric Corp.*

    28,730      346

Portland General Electric Co.

    193,900      3,777

Unisource Energy Corp.

    183,156      4,861

Westar Energy, Inc.

    284,869      5,347
         
        46,992
         

Electrical Components & Equipment - 0.7%

      

Belden, Inc.

    130,917      2,186

Encore Wire Corp.

    182,967      3,906

Insteel Industries, Inc.

    20,260      167

Littelfuse, Inc.*

    57,233      1,143
         
        7,402
         

Electronics - 3.9%

      

Analogic Corp.

    62,723      2,318

Bel Fuse, Inc., Class B

    61,887      993

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Electronics - 3.9% continued

      

Benchmark Electronics, Inc.*

    176,818    $ 2,546

Brady Corp., Class A

    207,887      5,222

Coherent, Inc.*

    96,097      1,987

CTS Corp.

    390,859      2,560

Cymer, Inc.*

    157,206      4,674

FEI Co.*

    170,186      3,897

LaBarge, Inc.*

    29,794      276

Measurement Specialties, Inc.*

    19,501      138

Newport Corp.*

    88,983      515

OSI Systems, Inc.*

    68,167      1,421

Park Electrochemical Corp.

    55,428      1,193

Plexus Corp.*

    47,600      974

Rofin-Sinar Technologies, Inc.*

    98,352      1,968

Rogers Corp.*

    96,811      1,959

Spectrum Control, Inc.*

    36,930      325

Stoneridge, Inc.*

    21,200      102

Technitrol, Inc.

    2,789      18

TTM Technologies, Inc.*

    221,443      1,763

Varian, Inc.*

    41,993      1,656

Watts Water Technologies, Inc., Class A

    288,368      6,211

Zygo Corp.*

    14,800      69
         
        42,785
         

Engineering & Construction - 0.8%

      

Dycom Industries, Inc.*

    126,961      1,406

EMCOR Group, Inc.*

    182,463      3,671

Granite Construction, Inc.

    64,795      2,156

Layne Christensen Co.*

    78,037      1,596
         
        8,829
         

Entertainment - 0.8%

      

Churchill Downs, Inc.

    123,467      4,156

Dover Downs Gaming &

      

Entertainment, Inc.

    20,832      97

Speedway Motorsports, Inc.

    329,013      4,527

Vail Resorts, Inc.*

    17,400      467
         
        9,247
         

Food - 2.5%

      

Flowers Foods, Inc.

    144,585      3,158

Hain Celestial Group (The), Inc.*

    294,012      4,589

Imperial Sugar Co.

    96,630      1,170

J & J Snack Foods Corp.

    21,709      779

Lance, Inc.

    72,466      1,676

Nash Finch Co.

    58,669      1,588

Ruddick Corp.

    270,591      6,340

Sanderson Farms, Inc.

    36,000      1,620

Weis Markets, Inc.

    151,601      5,082

Winn-Dixie Stores, Inc.*

    65,941      827
         
        26,829
         

Forest Products & Paper - 0.2%

      

Buckeye Technologies, Inc.*

    28,860      130

Glatfelter

    253,758      2,258

Neenah Paper, Inc.

    21,700      191
         
        2,579
         

Gas - 1.2%

      

Laclede Group (The), Inc.

    50,017      1,657

Nicor, Inc.

    50,833      1,760

Northwest Natural Gas Co.

    21,948      973

Southwest Gas Corp.

    272,274      6,047

WGL Holdings, Inc.

    94,100      3,013
         
        13,450
         

Hand/Machine Tools - 0.6%

      

Regal-Beloit Corp.

    172,448      6,850
         

Healthcare - Products - 1.0%

      

Angiodynamics, Inc.*

    109,868      1,458

Cantel Medical Corp.*

    45,448      738

Conmed Corp.*

    274,631      4,262

Cooper (The) Cos., Inc.

    27,266      674

Greatbatch, Inc.*

    111,920      2,531

Home Diagnostics, Inc.*

    9,611      59

ICU Medical, Inc.*

    11,600      477

Invacare Corp.

    47,737      843

Medical Action Industries, Inc.*

    1,400      16
         
        11,058
         

Healthcare - Services - 2.9%

      

Allied Healthcare International, Inc.*

    59,899      130

American Dental Partners, Inc.*

    54,046      490

Amsurg Corp.*

    113,908      2,442

Assisted Living Concepts, Inc., Class A*

    5,755      84

Capital Senior Living Corp.*

    45,177      206

Centene Corp.*

    77,574      1,550

Gentiva Health Services, Inc.*

    60,481      995

Healthsouth Corp.*

    78,500      1,133

Healthspring, Inc.*

    174,477      1,895

Healthways, Inc.*

    17,936      241

Kindred Healthcare, Inc.*

    318,846      3,944

LifePoint Hospitals, Inc.*

    215,000      5,644

 

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Healthcare - Services - 2.9% continued

      

Medcath Corp.*

    95,077    $ 1,118

Molina Healthcare, Inc.*

    96,156      2,300

Odyssey HealthCare, Inc.*

    100,108      1,029

Psychiatric Solutions, Inc.*

    75,363      1,714

RehabCare Group, Inc.*

    37,632      900

Res-Care, Inc.*

    173,074      2,475

Sunrise Senior Living, Inc.*

    314,600      519

Triple-S Management Corp., Class B*

    133,776      2,086

WellCare Health Plans, Inc.*

    23,511      435
         
        31,330
         

Holding Companies - Diversified - 0.1%

      

Compass Diversified Holdings

    156,640      1,267
         

Home Builders - 0.0%

      

Cavco Industries, Inc.*

    12,387      314
         

Home Furnishings - 0.5%

      

American Woodmark Corp.

    40,200      963

Ethan Allen Interiors, Inc.

    114,955      1,191

Hooker Furniture Corp.

    24,986      287

La-Z-Boy, Inc.

    169,211      798

Stanley Furniture Co., Inc.

    16,214      175

Tempur-Pedic International, Inc.

    138,003      1,804
         
        5,218
         

Household Products/Wares - 1.2%

      

American Greetings Corp., Class A

    175,263      2,047

Blyth, Inc.

    48,052      1,576

CSS Industries, Inc.

    42,624      869

Ennis, Inc.

    259,099      3,228

Helen of Troy Ltd.*

    84,272      1,415

Jarden Corp.*

    121,070      2,270

Prestige Brands Holdings, Inc.*

    289,027      1,777
         
        13,182
         

Insurance - 6.9%

      

Ambac Financial Group, Inc.

    13,700      13

American Equity Investment Life

      

Holding Co.

    121,393      677

American Physicians Capital, Inc.

    52,119      2,041

American Physicians Service Group, Inc.

    10,794      245

Amerisafe, Inc.*

    66,865      1,040

Argo Group International Holdings Ltd.*

    81,341      2,295

Citizens, Inc. of Texas*

    25,500      155

CNA Surety Corp.*

    353,690      4,771

Crawford & Co., Class B*

    22,000      106

Delphi Financial Group, Inc., Class A

    220,715      4,288

Donegal Group, Inc., Class A

    143,372      2,181

EMC Insurance Group, Inc.

    58,196      1,211

FBL Financial Group, Inc., Class A

    169,851      1,403

First Mercury Financial Corp.

    50,164      691

FPIC Insurance Group, Inc.*

    64,539      1,976

Hallmark Financial Services, Inc.*

    52,939      379

Harleysville Group, Inc.

    162,237      4,578

Horace Mann Educators Corp.

    408,175      4,070

Infinity Property & Casualty Corp.

    139,065      5,070

IPC Holdings Ltd.

    26,200      716

Meadowbrook Insurance Group, Inc.

    310,085      2,025

Mercer Insurance Group, Inc.

    8,669      138

Montpelier Re Holdings Ltd.

    51,100      679

Navigators Group, Inc.*

    112,533      5,000

Phoenix Companies (The), Inc.*

    278,872      466

Platinum Underwriters Holdings Ltd.

    26,600      761

PMA Capital Corp., Class A*

    105,359      479

ProAssurance Corp.*

    150,000      6,932

RLI Corp.

    48,000      2,150

Safety Insurance Group, Inc.

    63,045      1,927

SeaBright Insurance Holdings, Inc.*

    163,173      1,653

Selective Insurance Group, Inc.

    374,509      4,782

State Auto Financial Corp.

    131,037      2,293

United America Indemnity Ltd., Class A*

    141,926      680

United Fire & Casualty Co.

    197,323      3,384

Universal American Corp.*

    104,368      910

Zenith National Insurance Corp.

    175,712      3,820
         
        75,985
         

Internet - 1.2%

      

Alloy, Inc.*

    26,011      138

Avocent Corp.*

    263,402      3,677

Infospace, Inc.*

    93,300      619

Internet Brands, Inc., Class A*

    49,904      349

PC-Tel, Inc.*

    91,982      492

RealNetworks, Inc.*

    311,204      930

SonicWALL, Inc.*

    154,898      849

TechTarget, Inc.*

    22,976      92

TIBCO Software, Inc.*

    669,003      4,797

United Online, Inc.

    108,753      708
         
        12,651
         

Investment Companies - 0.5%

      

Apollo Investment Corp.

    125,000      750

Hercules Technology Growth Capital, Inc.

    142,561      1,192

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Investment Companies - 0.5% continued

      

Medallion Financial Corp.

    50,917    $ 389

MVC Capital, Inc.

    132,181      1,118

Prospect Capital Corp.

    228,349      2,101
         
        5,550
         

Iron/Steel - 0.2%

      

Carpenter Technology Corp.

    68,862      1,433

Olympic Steel, Inc.

    20,679      506

Universal Stainless & Alloy*

    39,966      650
         
        2,589
         

Leisure Time - 0.3%

      

Arctic Cat, Inc.

    24,370      99

Callaway Golf Co.

    563,684      2,858

Life Time Fitness, Inc.*

    22,051      441
         
        3,398
         

Lodging - 0.3%

      

Gaylord Entertainment Co.*

    55,561      706

Marcus Corp.

    256,664      2,700
         
        3,406
         

Machinery - Diversified - 0.9%

      

Albany International Corp., Class A

    67,654      770

Altra Holdings, Inc.*

    35,917      269

Briggs & Stratton Corp.

    236,492      3,155

Cascade Corp.

    75,096      1,181

Chart Industries, Inc.*

    15,811      287

Cognex Corp.

    87,344      1,234

Columbus McKinnon Corp. of New York*

    83,960      1,062

Gerber Scientific, Inc.*

    104,126      260

Hurco Cos., Inc.*

    15,071      236

Intevac, Inc.*

    128,710      1,121

NACCO Industries, Inc., Class A

    27,987      804
         
        10,379
         

Media - 0.3%

      

Courier Corp.

    9,800      150

Journal Communications, Inc., Class A

    353,205      371

Playboy Enterprises, Inc., Class B*

    54,700      137

Scholastic Corp.

    159,290      3,152
         
        3,810
         

Metal Fabrication/Hardware - 1.1%

      

Castle (A.M.) & Co.

    67,475      815

CIRCOR International, Inc.

    93,532      2,208

Haynes International, Inc.*

    34,855      826

Mueller Industries, Inc.

    114,628      2,384

Northwest Pipe Co.*

    31,139      1,083

RTI International Metals, Inc.*

    94,411      1,668

Worthington Industries, Inc.

    225,000      2,878
         
        11,862
         

Mining - 0.8%

      

Brush Engineered Materials, Inc.*

    120,264      2,014

Coeur d’Alene Mines Corp.*

    189,538      2,331

Compass Minerals International, Inc.

    70,400      3,866

Hecla Mining Co.*

    273,000      732
         
        8,943
         

Miscellaneous Manufacturing - 2.5%

      

American Railcar Industries, Inc.

    75,761      626

Ameron International Corp.

    77,384      5,188

Barnes Group, Inc.

    113,170      1,346

Ceradyne, Inc.*

    200,244      3,536

EnPro Industries, Inc.*

    135,896      2,447

Federal Signal Corp.

    203,869      1,560

GP Strategies Corp.*

    21,731      128

Griffon Corp.*

    139,125      1,157

Movado Group, Inc.

    54,708      577

Myers Industries, Inc.

    219,562      1,827

NL Industries, Inc.

    12,900      95

Reddy Ice Holdings, Inc.*

    41,900      69

Smith (A.O.) Corp.

    201,542      6,564

Standex International Corp.

    71,275      827

Tredegar Corp.

    70,036      933
         
        26,880
         

Oil & Gas - 2.1%

      

Alon USA Energy, Inc.

    74,000      766

Berry Petroleum Co., Class A

    97,770      1,818

Bill Barrett Corp.*

    115,758      3,179

Clayton Williams Energy, Inc.*

    10,855      205

Delek US Holdings, Inc.

    238,119      2,019

Georesources, Inc.*

    37,273      380

Gran Tierra Energy, Inc.*

    321,135      1,108

Harvest Natural Resources, Inc.*

    125,464      553

Parker Drilling Co.*

    238,513      1,035

Penn Virginia Corp.

    86,084      1,409

Petroleum Development Corp.*

    51,229      804

Precision Drilling Trust

    14,353      70

Rosetta Resources, Inc.*

    128,731      1,127

St. Mary Land & Exploration Co.

    130,146      2,716

Stone Energy Corp.*

    90,177      669

 

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Oil & Gas - 2.1% continued

      

Swift Energy Co.*

    223,794    $ 3,726

Unit Corp.*

    4,900      135

Vaalco Energy, Inc.*

    177,980      753
         
        22,472
         

Oil & Gas Services - 1.6%

      

Basic Energy Services, Inc.*

    19,100      131

Complete Production Services, Inc.*

    62,000      394

Dawson Geophysical Co.*

    4,342      130

Gulf Island Fabrication, Inc.

    19,254      305

Hornbeck Offshore Services, Inc.*

    134,136      2,869

Key Energy Services, Inc.*

    68,200      393

Lufkin Industries, Inc.

    24,500      1,030

Natural Gas Services Group, Inc.*

    39,319      523

Newpark Resources, Inc.*

    355,565      1,013

Oil States International, Inc.*

    162,919      3,944

SEACOR Holdings, Inc.*

    62,016      4,666

T-3 Energy Services, Inc.*

    52,409      624

Union Drilling, Inc.*

    112,751      747

Willbros Group, Inc.*

    92,966      1,163
         
        17,932
         

Packaging & Containers - 0.2%

      

Rock-Tenn Co., Class A

    43,300      1,652
         

Pharmaceuticals - 0.5%

      

Caraco Pharmaceutical Laboratories Ltd.*

    148,150      455

Nabi Biopharmaceuticals*

    20,200      49

Nutraceutical International Corp.*

    69,774      725

Par Pharmaceutical Cos., Inc.*

    53,000      803

Salix Pharmaceuticals Ltd.*

    87,600      864

Viropharma, Inc.*

    400,016      2,372
         
        5,268
         

Pipelines - 0.2%

      

Enbridge Energy Management LLC*

    50,697      1,838

Enbridge Energy Management LLC (Fractional Shares) (1) *

    481,035      —  

Kinder Morgan Management LLC (Fractional Shares) (1) *

    17,719      —  
         
        1,838
         

Real Estate - 0.3%

      

Avatar Holdings, Inc.*

    56,134      1,020

Hilltop Holdings, Inc.*

    74,100      880

W.P. Carey & Co. LLC

    45,533      1,137
         
        3,037
         

Real Estate Investment Trusts - 6.7%

      

Acadia Realty Trust

    43,056      562

Agree Realty Corp.

    28,505      522

Alexandria Real Estate Equities, Inc.

    20,070      718

BioMed Realty Trust, Inc.

    480,352      4,914

Capstead Mortgage Corp.

    152,121      1,933

Cedar Shopping Centers, Inc.

    272,197      1,230

Corporate Office Properties Trust

      

SBI of Maryland

    28,900      848

DiamondRock Hospitality Co.

    194,168      1,215

Duke Realty Corp.

    82,200      721

Dynex Capital, Inc.

    25,957      213

Education Realty Trust, Inc.

    46,783      201

Entertainment Properties Trust

    265,732      5,474

Equity One, Inc.

    226,693      3,006

Extra Space Storage, Inc.

    506,474      4,229

First Potomac Realty Trust

    213,135      2,078

Franklin Street Properties Corp.

    177,842      2,356

Healthcare Realty Trust, Inc.

    92,209      1,552

Highwoods Properties, Inc.

    101,086      2,261

Home Properties, Inc.

    49,138      1,676

Investors Real Estate Trust

    60,505      538

Kite Realty Group Trust

    57,043      167

LaSalle Hotel Properties

    137,441      1,696

LTC Properties, Inc.

    163,784      3,349

Medical Properties Trust, Inc.

    481,014      2,920

MFA Financial, Inc.

    115,600      800

Mission West Properties, Inc.

    31,956      218

National Health Investors, Inc.

    121,090      3,234

National Retail Properties, Inc.

    428,029      7,426

NorthStar Realty Finance Corp.

    430,586      1,219

Parkway Properties, Inc. of Maryland

    104,128      1,354

Pennsylvania Real Estate Investment Trust

    37,000      185

PMC Commercial Trust

    7,990      53

Post Properties, Inc.

    68,885      926

Potlatch Corp.

    15,181      369

Ramco-Gershenson Properties Trust

    68,148      682

Senior Housing Properties Trust

    427,058      6,970

SL Green Realty Corp.

    31,900      732

Sovran Self Storage, Inc.

    155,033      3,814

Strategic Hotels & Resorts, Inc.

    342,242      380

Urstadt Biddle Properties, Inc., Class A

    14,500      204

Weingarten Realty Investors

    47,200      685
         
        73,630
         

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Retail - 6.1%

      

Allion Healthcare, Inc.*

    108,672    $ 647

Asbury Automotive Group, Inc.

    209,118      2,141

Bebe Stores, Inc.

    49,253      339

Bob Evans Farms, Inc.

    102,365      2,942

Brown Shoe Co., Inc.

    58,400      423

Build-A-Bear Workshop, Inc.*

    26,808      120

Cabela’s, Inc.*

    139,147      1,712

Casey’s General Stores, Inc.

    66,303      1,703

Cash America International, Inc.

    172,613      4,037

Charlotte Russe Holding, Inc.*

    130,283      1,678

Charming Shoppes, Inc.*

    242,700      903

Christopher & Banks Corp.

    18,061      121

Collective Brands, Inc.*

    209,701      3,055

Conn’s, Inc.*

    978      12

Cracker Barrel Old Country Store, Inc.

    64,404      1,797

Dillard’s, Inc., Class A

    282,011      2,595

Dress Barn, Inc.*

    211,672      3,027

DSW, Inc., Class A*

    112,178      1,105

Einstein Noah Restaurant Group, Inc.*

    39,548      342

Fred’s, Inc., Class A

    229,947      2,897

Genesco, Inc.*

    71,915      1,350

Group 1 Automotive, Inc.

    23,225      604

Haverty Furniture Cos., Inc.

    61,236      560

HOT Topic, Inc.*

    158,926      1,162

Jo-Ann Stores, Inc.*

    10,500      217

Jos. A. Bank Clothiers, Inc.*

    24,815      855

Kenneth Cole Productions, Inc., Class A

    59,204      416

Landry’s Restaurants, Inc.*

    137,545      1,183

Luby’s, Inc.*

    187,439      761

Men’s Wearhouse (The), Inc.

    272,048      5,218

Pantry (The), Inc.*

    100,102      1,662

PC Connection, Inc.*

    144,558      759

Regis Corp.

    394,080      6,861

Retail Ventures, Inc.*

    295,979      645

Rex Stores Corp.*

    52,467      528

Rush Enterprises, Inc., Class A*

    160,402      1,869

Shoe Carnival, Inc.*

    29,674      354

Sonic Automotive, Inc., Class A

    335,163      3,405

Sport Supply Group, Inc.

    23,881      205

Stage Stores, Inc.

    338,141      3,753

Steak n Shake (The) Co.*

    34,721      304

Stein Mart, Inc.*

    94,851      840

Steinway Musical Instruments*

    18,237      195

Systemax, Inc.*

    87,816      1,046

Zale Corp.*

    112,700      388
         
        66,736
         

Savings & Loans - 2.4%

      

Abington Bancorp, Inc.

    116,496      927

Anchor BanCorp Wisconsin, Inc.

    174,176      226

BankFinancial Corp.

    55,555      492

Berkshire Hills Bancorp, Inc.

    71,533      1,487

Dime Community Bancshares

    209,805      1,911

First Financial Holdings, Inc.

    110,212      1,036

First Niagara Financial Group, Inc.

    324,956      3,711

Flushing Financial Corp.

    214,066      2,002

Legacy Bancorp, Inc.

    18,684      207

NewAlliance Bancshares, Inc.

    275,000      3,163

Northwest Bancorp, Inc.

    36,874      695

OceanFirst Financial Corp.

    40,645      487

Provident Financial Services, Inc.

    305,435      2,780

Provident New York Bancorp

    222,950      1,810

Pulaski Financial Corp.

    20,428      135

Teche Holding Co.

    2,953      98

United Financial Bancorp, Inc.

    59,307      820

Washington Federal, Inc.

    257,310      3,345

Westfield Financial, Inc.

    12,075      109

WSFS Financial Corp.

    45,631      1,246
         
        26,687
         

Semiconductors - 2.2%

      

Actel Corp.*

    57,300      615

ATMI, Inc.*

    94,891      1,474

Brooks Automation, Inc.*

    490,606      2,198

Cabot Microelectronics Corp.*

    36,876      1,043

Cohu, Inc.

    87,149      782

Emulex Corp.*

    174,900      1,710

Fairchild Semiconductor

      

International, Inc.*

    175,768      1,229

GSI Technology, Inc.*

    80,915      312

Lattice Semiconductor Corp.*

    516,888      972

Microtune, Inc.*

    10,569      25

MKS Instruments, Inc.*

    453,574      5,983

Omnivision Technologies, Inc.*

    191,627      1,991

Pericom Semiconductor Corp.*

    99,284      836

Photronics, Inc.*

    178,800      724

Sigma Designs, Inc.*

    95,745      1,536

Silicon Image, Inc.*

    206,852      476

Skyworks Solutions, Inc.*

    114,001      1,115

Standard Microsystems Corp.*

    55,482      1,134

 

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Semiconductors - 2.2% continued

      

White Electronic Designs Corp.*

    30,849    $ 143
         
        24,298
         

Software - 1.4%

      

Digi International, Inc.*

    207,645      2,025

DivX, Inc.*

    104,355      573

infoGROUP, Inc.*

    159,869      913

JDA Software Group, Inc.*

    225,102      3,367

Lawson Software, Inc.*

    599,971      3,348

OpenTV Corp., Class A*

    166,505      220

Pervasive Software, Inc.*

    26,517      161

Schawk, Inc.

    141,692      1,064

Seachange International, Inc.*

    89,175      716

Smith Micro Software, Inc.*

    17,983      177

SYNNEX Corp.*

    108,815      2,719
         
        15,283
         

Storage/Warehousing - 0.2%

      

Mobile Mini, Inc.*

    176,323      2,587
         

Telecommunications - 2.2%

      

Adaptec, Inc.*

    214,569      569

Anaren, Inc.*

    1,100      19

Anixter International, Inc.*

    13,000      489

Atlantic Tele-Network, Inc.

    34,398      1,352

Black Box Corp.

    73,627      2,464

Communications Systems, Inc.

    10,081      99

CPI International, Inc.*

    20,106      175

EMS Technologies, Inc.*

    81,153      1,696

Extreme Networks, Inc.*

    170,000      340

Fairpoint Communications, Inc.

    332,275      199

General Communication, Inc., Class A*

    11,300      78

Globecomm Systems, Inc.*

    83,577      601

Harris Stratex Networks, Inc., Class A*

    101,500      658

Iowa Telecommunications Services, Inc.

    55,988      700

Netgear, Inc.*

    46,308      667

Oplink Communications, Inc.*

    56,493      644

PAETEC Holding Corp.*

    8,800      24

Plantronics, Inc.

    75,255      1,423

Premiere Global Services, Inc.*

    238,440      2,585

Shenandoah Telecommunications Co.

    29,749      604

SureWest Communications*

    2,137      22

Sycamore Networks, Inc.*

    772,675      2,418

Syniverse Holdings, Inc.*

    186,300      2,986

Tekelec*

    173,316      2,917
         
        23,729
         

Textiles - 0.9%

      

G&K Services, Inc., Class A

    219,225      4,637

Unifirst Corp. of Massachusetts

    152,597      5,672
         
        10,309
         

Toys Games & Hobbies - 0.4%

      

Jakks Pacific, Inc.*

    238,677      3,062

RC2 Corp.*

    64,800      858
         
        3,920
         

Transportation - 2.7%

      

Arkansas Best Corp.

    208,069      5,483

Bristow Group, Inc.*

    129,699      3,843

Eagle Bulk Shipping, Inc.

    216,869      1,017

General Maritime Corp.

    120,839      1,195

Gulfmark Offshore, Inc.*

    157,001      4,333

International Shipholding Corp.

    17,097      461

Nordic American Tanker Shipping

    60,800      1,935

Overseas Shipholding Group, Inc.

    49,481      1,684

PHI, Inc.*

    43,171      740

Saia, Inc.*

    70,490      1,269

Ship Finance International Ltd.

    151,948      1,676

Universal Truckload Services, Inc.

    7,000      110

Werner Enterprises, Inc.

    325,000      5,889
         
        29,635
         

Trucking & Leasing - 0.3%

      

AMERCO, Inc.*

    55,855      2,075

Greenbrier Cos., Inc.

    6,341      46

TAL International Group, Inc.

    57,024      621

Willis Lease Finance Corp.*

    26,439      347
         
        3,089
         

Total Common Stocks

      
         

(Cost $1,338,789)

         1,047,835

PREFERRED STOCKS - 0.1%

      

Healthcare - Products - 0.1%

      

Inverness Medical Innovations, Inc.*

    3,001      669
         

Total Preferred Stocks

      
         

(Cost $724)

         669

OTHER - 0.0%

      

Escrow DLB Oil & Gas (1) *

    2,100      —  
         

Total Other

      
         

(Cost $ —)

         —  

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

SMALL CAP VALUE FUND    continued    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF WARRANTS		    VALUE
(000S)		  

WARRANTS - 0.0%

      

American Satellite Network (1) *

      255    $ —     
           

Total Warrants

      
           

(Cost $ — )

         —     
     PRINCIPAL
AMOUNT
(000S)		       

SHORT-TERM INVESTMENTS - 5.9%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 58,558    $ 58,558   

U.S. Treasury Bill,

      

0.27%, 11/19/09(2)

     5,775      5,769   
           

Total Short-Term Investments

      
           

(Cost $64,327)

         64,327   
           

Total Investments - 101.7%

      
           

(Cost $1,403,840)

         1,112,831   

Liabilities less Other Assets - (1.7)%

         (18,228 ) 
           

NET ASSETS - 100.0%

       $ 1,094,603   

 

(1) Security has been deemed worthless by the Northern Trust Global Investments (“NTGI”) Valuation Committee.
(2) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Small Cap Value Fund had open futures contracts as follows:

 

TYPE

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

S&P 500

               

E-Mini

    385    $ 17,623    Long    9/09    $ (354 ) 

Russell 2000

               

Mini

    489      24,802    Long    9/09      (569 ) 
                    

Total

                $ (923 ) 
                    

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,403,840   
        

Gross tax appreciation of investments

    $ 27,961   

Gross tax depreciation of investments

      (318,970 ) 
        

Net tax depreciation of investments

    $ (291,009 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Small Cap Value Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 1,047,835 (1)    $ —      $ —      $ 1,047,835   

Preferred Stocks

      669 (1)      —        —        669   

Short-Term Investments

      —          64,327      —        64,327   
                              

Total Investments

    $ 1,048,504      $ 64,327    $ —      $ 1,112,831   
                              

Other Financial Instruments*

    $ (923 )    $ —      $ —      $ (923 ) 
                              

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

TECHNOLOGY FUND    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 98.6%

      

Aerospace/Defense - 2.5%

      

Lockheed Martin Corp.

    13,849    $ 1,117

Raytheon Co.

    15,804      702
         
        1,819
         

Biotechnology - 8.0%

      

Amgen, Inc.*

    14,249      754

Biogen Idec, Inc.*

    25,364      1,145

Genzyme Corp.*

    31,565      1,757

Gilead Sciences, Inc.*

    25,858      1,211

Myriad Genetics, Inc.*

    12,908      460

OSI Pharmaceuticals, Inc.*

    14,716      416
         
        5,743
         

Commercial Services - 4.6%

      

Net 1 UEPS Technologies, Inc.*

    41,079      558

SAIC, Inc.*

    82,096      1,523

Western Union (The) Co.

    73,219      1,201
         
        3,282
         

Computers - 21.6%

      

Accenture Ltd., Class A

    31,543      1,055

Apple, Inc.*

    18,935      2,697

Brocade Communications Systems, Inc.*

    148,938      1,165

Dell, Inc.*

    49,864      685

EMC Corp. of Massachusetts*

    98,789      1,294

Hewlett-Packard Co.

    56,970      2,202

IBM Corp.

    25,769      2,691

Micros Systems, Inc.*

    54,564      1,381

NetApp, Inc.*

    82,995      1,637

Synaptics, Inc.*

    19,699      761
         
        15,568
         

Electronics - 1.0%

      

Cogent, Inc.*

    64,564      693
         

Healthcare - Products - 4.5%

      

Covidien PLC

    28,040      1,050

Medtronic, Inc.

    40,973      1,430

Thoratec Corp.*

    27,273      730
         
        3,210
         

Internet - 7.8%

      

Google, Inc., Class A*

    4,344      1,831

j2 Global Communications, Inc.*

    60,979      1,376

McAfee, Inc.*

    37,870      1,598

VeriSign, Inc.*

    42,778      790
         
        5,595
         

Pharmaceuticals - 1.7%

      

Cephalon, Inc.*

    12,556      711

Isis Pharmaceuticals, Inc.*

    32,641      539
         
        1,250
         

Retail - 0.7%

      

GameStop Corp., Class A*

    22,571      497
         

Semiconductors - 11.8%

      

Altera Corp.

    48,338      787

Analog Devices, Inc.

    37,692      934

Applied Materials, Inc.

    65,337      717

Broadcom Corp., Class A*

    28,435      705

Intel Corp.

    61,834      1,023

Kla-Tencor Corp.

    27,618      697

Microchip Technology, Inc.

    31,600      713

MKS Instruments, Inc.*

    26,493      349

National Semiconductor Corp.

    54,785      688

Texas Instruments, Inc.

    53,088      1,131

Xilinx, Inc.

    38,186      781
         
        8,525
         

Software - 19.9%

      

Activision Blizzard, Inc.*

    70,489      890

Adobe Systems, Inc.*

    56,944      1,612

BMC Software, Inc.*

    40,708      1,376

CA, Inc.

    58,897      1,027

Cerner Corp.*

    17,841      1,111

Check Point Software Technologies*

    49,830      1,169

Double-Take Software, Inc.*

    45,461      393

Microsoft Corp.

    39,821      947

Open Text Corp.*

    17,804      648

Oracle Corp.

    81,107      1,737

Red Hat, Inc.*

    42,847      862

SAP A.G. ADR

    18,951      762

Seachange International, Inc.*

    112,900      907

Sybase, Inc.*

    28,651      898
         
        14,339
         

Telecommunications - 14.5%

      

Amdocs Ltd.*

    58,939      1,264

Cisco Systems, Inc.*

    67,841      1,265

Harmonic, Inc.*

    107,974      636

Juniper Networks, Inc.*

    49,344      1,165

Nokia OYJ ADR

    101,170      1,475

Polycom, Inc.*

    63,012      1,277

QUALCOMM, Inc.

    34,876      1,576

Starent Networks Corp.*

    36,870      900

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

 

TECHNOLOGY FUND    continued    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER OF
SHARES		    VALUE
(000S)		  

COMMON STOCKS - 98.6% continued

      

Telecommunications - 14.5% continued

      

Telefonaktiebolaget LM Ericsson ADR

      92,003    $ 900   
           
        10,458   
           

Total Common Stocks

      
           

(Cost $71,732)

         70,979   
     PRINCIPAL
AMOUNT
(000S)		       

SHORT-TERM INVESTMENTS - 2.0%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 1,414    $ 1,414   
           

Total Short-Term Investments

      
           

(Cost $1,414)

         1,414   
           

Total Investments - 100.6%

      
           

(Cost $73,146)

         72,393   

Liabilities less Other Assets - (0.6)%

         (439 ) 
           

NET ASSETS - 100.0%

       $ 71,954   

 

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 73,146   
        

Gross tax appreciation of investments

    $ 6,965   

Gross tax depreciation of investments

      (7,718 ) 
        

Net tax depreciation of investments

    $ (753 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Technology Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 70,979 (1)    $ —      $ —      $ 70,979

Short-Term Investments

      —          1,414      —        1,414
                            

Total Investments

    $ 70,979      $ 1,414    $ —      $ 72,393
                            

 

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

 

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.1%

      

Australia - 8.1%

      

Australand Property Group

    570,561    $ 219

Bunnings Warehouse Property Trust

    236,583      310

CFS Retail Property Trust

    1,276,312      1,687

Commonwealth Property Office Fund

    1,278,395      850

Dexus Property Group

    3,254,834      1,951

Goodman Group

    1,904,328      559

GPT Group

    5,821,126      2,272

ING Office Fund

    1,235,904      455

Macquarie Office Trust

    3,085,059      518

Mirvac Group

    1,814,108      1,563

Stockland

    1,494,603      3,832

Westfield Group

    1,574,484      14,340
         
        28,556
         

Austria - 0.3%

      

CA Immobilien Anlagen A.G*

    60,602      503

Conwert Immobilien Invest S.E.*

    57,963      468
         
        971
         

Belgium - 0.6%

      

Befimmo SCA Sicafi

    11,360      862

Cofinimmo

    6,230      727

Intervest Offices

    4,463      118

Leasinvest Real Estate SCA

    1,058      75

Warehouses De Pauw SCA

    5,677      231

Wereldhave Belgium N.V.

    1,328      92
         
        2,105
         

Brazil - 1.4%

      

BR Malls Participacoes S.A.*

    89,000      677

Brookfield, Incorporacoes S.A.

    118,200      258

Camargo Correa Desenvolvimento Imobiliario S.A.

    28,000      55

Cyrela Brazil Realty S.A.

    184,600      1,399

Cyrela Commercial Properties S.A. Empreendimentos e Participacoes

    43,800      192

Gafisa S.A.

    92,600      775

Iguatemi Empresa de Shopping Centers S.A.

    12,500      120

Inpar S.A.*

    94,600      125

Klabin Segall S.A.*

    29,000      47

MRV Engenharia e Participacoes S.A.

    47,100      653

Multiplan Empreendimentos Imobiliarios S.A.

    62,500      631

Rodobens Negocios Imobiliarios S.A.

    15,600      142
         
        5,074
         

Canada - 2.9%

      

Allied Properties Real Estate Investment Trust

    20,408      259

Boardwalk Real Estate Investment Trust

    34,106      959

Brookfield Properties Corp.

    204,555      1,618

Calloway Real Estate Investment Trust

    54,460      601

Canadian Apartment Properties Real Estate Investment Trust

    46,776      537

Canadian Real Estate Investment Trust

    45,874      970

Chartwell Seniors Housing Real Estate Investment Trust

    64,772      302

Cominar Real Estate Investment Trust

    33,974      452

Dundee Real Estate Investment Trust

    11,395      149

Extendicare Real Estate Investment Trust

    45,811      246

H&R Real Estate Investment Trust

    102,557      968

InnVest Real Estate Investment Trust

    49,260      167

Morguard Real Estate Investment Trust

    29,160      242

Northern Property Real Estate Investment Trust

    15,014      242

Primaris Retail Real Estate Investment Trust

    40,564      413

RioCan Real Estate Investment Trust

    152,422      2,002
         
        10,127
         

China - 1.2%

      

Beijing North Star Co., Class H

    467,797      158

China Merchants Property Development Co. Ltd., Class B

    165,959      391

China Vanke Co. Ltd., Class B

    913,985      1,319

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

    671,182      1,492

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B

    159,800      146

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

    354,508      607
         
        4,113
         

Egypt - 0.1%

      

Six of October Development & Investment*

    18,839      221
         

Finland - 0.2%

      

Citycon OYJ

    107,610      281

Sponda OYJ*

    143,775      410

Technopolis PLC

    37,514      156
         
        847
         

France - 4.3%

      

Acanthe Developpement S.A.

    31,760      50

Affine S.A.

    2,523      45

Fonciere Des Regions

    21,268      1,600

EQUITY INDEX FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.1% continued

      

France - 4.3% continued

      

Gecina S.A.

    12,924    $ 800

ICADE

    13,653      1,123

Klepierre

    57,472      1,483

Mercialys

    24,720      763

Societe de la Tour Eiffel

    4,093      137

Societe Immobiliere de Location pour I’Industrie et le Commerce

    8,997      794

Unibail-Rodamco S.E.

    56,373      8,418
         
        15,213
         

Germany - 0.5%

      

Alstria Office A.G.

    18,282      144

Colonia Real Estate A.G.*

    17,053      70

Deutsche Euroshop A.G.

    23,195      714

Deutsche Wohnen A.G.*

    18,025      252

DIC Asset A.G.*

    17,262      122

GAGFAH S.A.

    31,187      259

Patrizia Immobilien AG*

    24,252      93

Vivacon A.G.*

    16,409      13
         
        1,667
         

Greece - 0.1%

      

Babis Vovos International Construction Co.*

    17,596      105

Eurobank Properties Real Estate Investment Co.

    11,951      119

Lamda Development S.A.*

    9,152      76
         
        300
         

Hong Kong - 16.9%

      

Agile Property Holdings Ltd.

    1,029,780      1,465

Champion REIT

    1,442,930      471

China Overseas Land & Investment Ltd.

    2,821,866      6,534

China Resources Land Ltd.

    1,312,048      2,889

Country Garden Holdings Co.

    2,243,356      1,037

Great Eagle Holdings Ltd.

    202,761      429

Hang Lung Properties Ltd.

    1,439,565      4,752

Henderson Land Development Co. Ltd.

    745,702      4,266

Hongkong Land Holdings Ltd.

    1,173,618      4,143

Hopson Development Holdings Ltd.

    413,000      634

Hysan Development Co. Ltd.

    542,542      1,391

Kerry Properties Ltd.

    392,704      1,746

Kowloon Development Co. Ltd.

    375,973      331

Link REIT (The)

    1,487,426      3,171

New World China Land Ltd.

    744,550      413

New World Development Ltd.

    2,008,869      3,626

Shenzhen Investment Ltd.

    1,050,763      435

Shimao Property Holdings Ltd.

    906,226      1,752

Shui On Land Ltd.

    941,250      640

Sino Land Co.

    1,674,529      2,752

Sun Hung Kai Properties Ltd.

    1,329,200      16,545
         
          59,422
         

Indonesia - 0.3%

      

Bakrieland Development Tbk PT*

    13,430,635      386

Ciputra Development Tbk PT*

    3,168,957      222

Lippo Karawaci Tbk PT*

    8,328,490      546
         
          1,154
         

Italy - 0.1%

      

Beni Stabili S.p.A.

    250,025      196

Immobiliare Grande Distribuzione

    80,769      141
         
        337
         

Japan - 13.1%

      

Aeon Mall Co. Ltd.

    63,997      1,211

Daibiru Corp.

    42,400      364

Heiwa Real Estate Co. Ltd.

    88,661      289

Japan Prime Realty Investment Corp.

    411      888

Japan Real Estate Investment Corp.

    287      2,382

Japan Retail Fund Investment Corp.

    273      1,260

Kenedix Realty Investment Corp.

    143      494

Mitsubishi Estate Co. Ltd.

    712,318      11,801

Mitsui Fudosan Co. Ltd.

    610,562      10,578

Mori Trust Sogo REIT, Inc.

    55      391

Nippon Building Fund, Inc.

    378      3,235

Nomura Real Estate Office Fund, Inc.

    211      1,340

NTT Urban Development Corp.

    887      855

Orix JREIT, Inc.

    168      769

Premier Investment Co.

    92      328

Sumitomo Realty & Development Co. Ltd.

    331,425      6,029

TOC Co. Ltd.

    73,500      320

Tokyo Tatemono Co. Ltd.

    160,201      887

Tokyu Land Corp.

    270,556      1,222

Tokyu REIT, Inc.

    82      443

Top REIT Inc.

    98      379

United Urban Investment Corp.

    131      562
         
        46,027
         

Malaysia - 0.5%

      

IGB Corp. Bhd.

    731,509      355

KLCC Property Holdings Bhd.

    304,948      282

Land & General Bhd.*

    251,827      19

SP Setia Bhd.

    700,111      791

 

NORTHERN FUNDS QUARTERLY REPORT    2    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.1% continued

      

Malaysia - 0.5% continued

      

YNH Property Bhd.

    257,708    $ 128
         
        1,575
         

Mexico - 0.6%

      

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

    650,454      282

Corporacion GEO S.A.B. de C.V., Series B*

    276,546      534

Desarrolladora Homex S.A.B. de C.V.*

    175,133      814

Sare Holding S.A.B. de C.V.*

    272,250      82

Urbi Desarrollos Urbanos S.A.B. de C.V.*

    338,365      514
         
        2,226
         

Netherlands - 1.6%

      

Corio N.V.

    51,319      2,501

Eurocommercial Properties N.V.

    24,812      765

Nieuwe Steen Investments Funds N.V.

    27,132      419

Vastned Offices/Industrial

    13,603      200

Vastned Retail N.V.

    11,380      567

Wereldhave N.V.

    14,150      1,055
         
        5,507
         

New Zealand - 0.1%

      

Kiwi Income Property Trust

    552,104      320
         

Norway - 0.0%

      

Norwegian Property ASA*

    84,810      76
         

Philippines - 0.4%

      

Ayala Land, Inc.

    3,590,447      602

Filinvest Land, Inc.

    6,450,000      92

Megaworld Corp.*

    6,800,000      138

Robinsons Land Corp.

    597,275      84

SM Prime Holdings, Inc.

    2,780,003      513

Vista Land & Lifescapes, Inc.*

    2,280,759      75
         
        1,504
         

Poland - 0.2%

      

Globe Trade Centre S.A.*

    76,115      530

LC Corp. S.A.*

    147,530      58
         
        588
         

Singapore - 3.4%

      

Allgreen Properties Ltd.

    526,562      364

Ascendas Real Estate Investment Trust

    1,180,753      1,292

CapitaCommercial Trust

    1,467,014      825

CapitaLand Ltd.

    2,202,915      5,595

CapitaMall Trust

    1,653,715      1,592

Keppel Land Ltd.

    479,027      725

Mapletree Logistics Trust

    977,299      373

Singapore Land Ltd.

    107,756      397

Suntec Real Estate Investment Trust

    1,047,291      618

Wing Tai Holdings Ltd.

    386,380      357
         
        12,138
         

South Africa - 1.2%

      

Emira Property Fund

    241,257      318

Fountainhead Property Trust

    694,041      496

Growthpoint Properties Ltd.

    978,162      1,652

Hyprop Investments Ltd.

    86,872      435

Pangbourne Properties Ltd.

    298,899      533

Redefine Income Fund Ltd.

    443,105      373

SA Corporate Real Estate Fund

    1,464,867      481
         
        4,288
         

Sweden - 0.7%

      

Castellum AB

    116,271      741

Fabege AB

    115,832      393

Hufvudstaden AB, Class A

    53,031      330

Klovern AB

    81,559      192

Kungsleden AB

    94,844      438

Wihlborgs Fastigheter AB

    24,286      327
         
        2,421
         

Switzerland - 1.0%

      

Allreal Holding A.G. (Registered)

    3,943      468

Jelmoli Holding A.G.

    2,108      766

PSP Swiss Property A.G. (Registered)*

    32,516      1,553

Swiss Prime Site A.G.*

    12,886      631

Zueblin Immobilien Holding A.G. (Registered)*

    22,199      85
         
        3,503
         

Thailand - 0.4%

      

Amata Corp. PCL

    286,700      45

Asian Property Development PCL

    487,600      68

Central Pattana PCL (Registered)

    425,863      245

Land and Houses PCL

    5,193,500      768

LPN Development PCL

    1,069,100      160

Property Perfect PCL

    662,600      51

Quality House PCL

    2,056,700      88

SC Asset Corp. PCL

    131,400      30

Supalai PCL

    1,199,013      114
         
        1,569
         

Turkey - 0.0%

      

Is Gayrimenkul Yatirim Ortakligi A.S.

    117,530      82
         

 

EQUITY INDEX FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.1% continued

      

United Kingdom - 5.5%

      

Big Yellow Group PLC

    88,750    $ 500

British Land Co. PLC

    591,547      3,731

Brixton PLC

    162,101      109

CLS Holdings PLC*

    15,916      80

Daejan Holdings PLC

    2,719      86

Derwent London PLC

    69,486      1,071

Development Securities PLC

    27,906      121

Grainger PLC

    79,970      192

Great Portland Estates PLC

    210,114      762

Hammerson PLC

    483,963      2,453

Helical Bar PLC

    73,561      399

Invista Foundation Property Trust Ltd.

    218,793      106

Land Securities Group PLC

    524,453      4,080

Liberty International PLC

    391,488      2,570

Mucklow (A&J) Group PLC

    16,817      69

Primary Health Properties PLC

    18,142      75

Quintain Estates & Development PLC

    94,000      78

Segro PLC

    3,910,158      1,566

Shaftesbury PLC

    155,240      772

St. Modwen Properties PLC

    102,492      308

Unite Group PLC

    98,509      221

Workspace Group PLC

    811,499      188
         
        19,537
         

United States - 30.4%

      

Acadia Realty Trust

    27,179      355

Agree Realty Corp.

    6,169      113

Alexander’s, Inc.

    1,321      356

Alexandria Real Estate Equities, Inc.

    27,778      994

AMB Property Corp.

    102,286      1,924

American Campus Communities, Inc.

    37,094      823

Apartment Investment & Management Co., Class A

    83,009      735

Ashford Hospitality Trust, Inc.

    60,573      170

Associated Estates Realty Corp.

    10,806      64

AvalonBay Communities, Inc.

    55,617      3,111

BioMed Realty Trust, Inc.

    63,320      648

Boston Properties, Inc.

    94,671      4,516

Brandywine Realty Trust

    85,765      639

BRE Properties, Inc.

    36,233      861

Camden Property Trust

    46,035      1,271

CBL & Associates Properties, Inc.

    80,039      431

Cedar Shopping Centers, Inc.

    28,854      130

Colonial Properties Trust

    31,731      235

Corporate Office Properties Trust SBI of Maryland

    38,347      1,125

Corrections Corp. of America*

    80,946      1,375

Cousins Properties, Inc.

    25,662      218

DCT Industrial Trust, Inc.

    133,439      544

Developers Diversified Realty Corp.

    93,077      454

DiamondRock Hospitality Co.

    74,706      468

Digital Realty Trust, Inc.

    53,211      1,908

Douglas Emmett, Inc.

    59,390      534

Duke Realty Corp.

    157,152      1,378

DuPont Fabros Technology, Inc.

    25,743      243

EastGroup Properties, Inc.

    16,228      536

Education Realty Trust, Inc.

    18,610      80

Entertainment Properties Trust

    22,005      453

Equity Lifestyle Properties, Inc.

    16,468      612

Equity One, Inc.

    28,125      373

Equity Residential

    189,989      4,223

Essex Property Trust, Inc.

    19,320      1,202

Extra Space Storage, Inc.

    57,359      479

Federal Realty Investment Trust

    41,160      2,121

FelCor Lodging Trust, Inc.

    41,065      101

First Industrial Realty Trust, Inc.

    28,834      125

First Potomac Realty Trust

    19,712      192

Forest City Enterprises, Inc., Class A

    81,936      541

Getty Realty Corp.

    12,069      228

Government Properties, Income Trust*

    9,240      190

HCP, Inc.

    189,378      4,013

Health Care REIT, Inc.

    77,397      2,639

Healthcare Realty Trust, Inc.

    38,401      646

Hersha Hospitality Trust

    25,861      64

Highwoods Properties, Inc.

    49,988      1,118

Hilltop Holdings, Inc.*

    27,597      328

Home Properties, Inc.

    22,328      761

Hospitality Properties Trust

    66,469      790

Host Hotels & Resorts, Inc.

    419,111      3,516

HRPT Properties Trust

    153,354      623

Inland Real Estate Corp.

    53,074      372

Investors Real Estate Trust

    41,275      367

Kilroy Realty Corp.

    28,762      591

Kimco Realty Corp.

    262,286      2,636

Kite Realty Group Trust

    34,318      100

LaSalle Hotel Properties

    42,157      520

Lexington Realty Trust

    72,062      245

Liberty Property Trust

    73,057      1,683

LTC Properties, Inc.

    14,970      306

 

NORTHERN FUNDS QUARTERLY REPORT    4    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.1% continued

      

United States - 30.4% continued

      

Macerich (The) Co.

      56,860    $ 1,001

Mack-Cali Realty Corp.

      54,068      1,233

Medical Properties Trust, Inc.

      53,666      326

Mid-America Apartment Communities, Inc.

      18,404      676

National Healthcare Corp.

      6,364      241

National Retail Properties, Inc.

      55,555      964

Nationwide Health Properties, Inc.

      71,765      1,847

Omega Healthcare Investors, Inc.

      58,403      906

Orient-Express Hotels Ltd.

      47,886      407

Parkway Properties, Inc. of Maryland

      13,139      171

Pennsylvania Real Estate Investment Trust

      25,976      130

Post Properties, Inc.

      28,679      385

ProLogis

      308,443      2,486

PS Business Parks, Inc.

      10,000      484

Public Storage

      88,800      5,815

Ramco-Gershenson Properties Trust

      14,493      145

Realty Income Corp.

      73,261      1,606

Regency Centers Corp.

      56,082      1,958

Saul Centers, Inc.

      8,732      258

Senior Housing Properties Trust

      84,720      1,383

Simon Property Group, Inc.

      195,749      10,067

SL Green Realty Corp.

      54,133      1,242

Sovran Self Storage, Inc.

      15,281      376

Strategic Hotels & Resorts, Inc.

      65,785      73

Sun Communities, Inc.

      11,935      164

Sunstone Hotel Investors, Inc.

      53,870      288

Tanger Factory Outlet Centers, Inc.

      20,645      670

Taubman Centers, Inc.

      25,903      696

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

      50,000      —  

UDR, Inc.

      106,284      1,098

Universal Health Realty Income Trust

      7,739      244

Urstadt Biddle Properties, Inc., Class A

      11,962      168

U-Store-It Trust

      37,670      185

Ventas, Inc.

      108,958      3,254

Vornado Realty Trust

      123,616      5,566

Washington Real Estate Investment Trust

      41,119      920

Weingarten Realty Investors

      84,279      1,223

Winthrop Realty Trust

      9,359      84
         
        107,137
         

Total Common Stocks

      
         

(Cost $497,292) (2)

         338,605

INVESTMENT COMPANIES - 0.5%

      

ApexHi Properties Ltd., Class A

      191,238      327

ApexHi Properties Ltd., Class B

      184,691      392

ApexHi Properties Ltd., Class C

      136,550      118

F&C Commercial Property Trust Ltd.

      177,742      220

ING UK Real Estate Income Trust Ltd.

      226,053      113

ISIS Property Ltd.

      39,974      52

ISIS Property Trust 2 Ltd.

      65,231      62

ProLogis European Properties

      38,879      148

Standard Life Investment Property Income Trust PLC

      96,302      74

UK Commercial Property Trust Ltd.

      172,712      192
         

Total Investment Companies

      
         

(Cost $2,434) (2)

         1,698

RIGHTS - 0.0%

      

ING Office Fund*

      470,067      —  
         

Warehouses De Pauw SCA*

      1      —  
         

Development Securities PLC*

      17,172      —  
         

Total Rights

      
         

(Cost $ — ) (2)

         —  
     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT-TERM INVESTMENTS - 0.8%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit, 0.08%, 7/1/09

    $ 2,873    $ 2,873
         

Total Short-Term Investments

      
         

(Cost $2,873)

         2,873
         

Total Investments - 97.4%

      
         

(Cost $502,599)

         343,176

Other Assets less Liabilities - 2.6%

         9,097
         

NET ASSETS - 100.0%

       $ 352,273

 

(1) Security has been deemed worthless by the NTGI Valuation Committee.
(2) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

 

EQUITY INDEX FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

 

At June 30, 2009, the industry sectors for the Global Real Estate Index Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Commercial Service & Supply

    0.4 % 

Healthcare Providers & Services

    0.1   

Hotels Restaurants & Leisure

    0.1   

Household Durables

    1.7   

Real Estate

    3.7   

Real Estate Investment Trusts

    56.7   

Real Estate Management/Development

    37.3   
      

Total

    100.0 % 
      

At June 30, 2009, the Global Real Estate Index Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		    NOTIONAL
AMOUNT
(000S)		    CONTRACT
POSITION		    CONTRACT
EXP.		    UNREALIZED
GAIN (LOSS)
(000S)		  

Eurx E-Stxx (Euro)

    32    $ 1,077    Long    9/09    $ (4 ) 

Hang Seng Index (Hong Kong Dollar)

    15      1,783    Long    7/09      28   

SPI 200 (Australian Dollar)

    15      1,179    Long    9/09      5   

S&P MidCap 400 E-Mini (U.S. Dollar)

    110      6,344    Long    9/09      (58 ) 

TOPIX Index (Japanese Yen)

    11      1,056    Long    9/09      7   
                              

Total

                $ (22 ) 
                    

At June 30, 2009, the Global Real Estate Index Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS TO DELIVER CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    IN EXCHANGE
FOR CURRENCY		    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)

Hong Kong Dollar

    1,500    Euro    139    09/16/09      1
                  

Total

                $ 1
                  

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 502,599   
        

Gross tax appreciation of investments

    $ 11,422   

Gross tax depreciation of investments

      (170,845 ) 
        

Net tax depreciation of investments

    $ (159,423 ) 
        

At June 30, 2009, the Global Real Estate Index Fund’s investments were denominated in the following currencies :

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Australian Dollar

    5.9 % 

British Pound

    5.9   

Euro

    7.9   

Hong Kond Dollar

    17.3   

Japanese Yen

    13.4   

U.S. Dollar

    32.1   

All other currencies less than 5%

    14.0   
      

Total

    100.0 % 
      

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments. Following is a summary of the inputs used in valuing the Global Real Estate Index Fund’s investments, and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

           

Commercial Services & Supplies

    $ 1,375    $ —        $ —      $ 1,375   

Health Care Providers & Services

      241      —          —        241   

Hotels Restaurants & Leisure

      407      —          —        407   

Household Durables

      5,680      —          —        5,680   

Insurance

      328      —          —        328   

Real Estate Investment Trust

      112,754      90,457        —        203,211   

Real Estate Management & Development

      3,779      123,584        —        127,363   

Investment Companies

           

Real Estate Investment Trusts

      —        713        —        713   

Real Estate Management & Development

      —        985        —        985   

Short Term Investments

      —        2,873        —        2,873   
                              

Total Investments

    $ 124,564    $ 218,612      $ —      $ 343,176   
                              

Other Financial Instruments*

    $ 1    $ (22 )    $ —      $ (21 ) 
                              

 

* Other financial instruments include futures and forwards, if applicable.

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5%

      

Australia - 4.2%

      

AGL Energy Ltd.

    2,378    $ 26

Alumina Ltd.

    13,660      16

AMP Ltd.

    9,377      37

APA Group

    1,083      2

Asciano Group*

    1,308      1

Asciano Group*

    1,308      1

Australia & New Zealand Banking Group Ltd.

    13,024      172

Billabong International Ltd.

    444      3

BlueScope Steel Ltd.

    4,208      9

Brambles Ltd.

    7,147      34

Cochlear Ltd.

    214      10

Commonwealth Bank of Australia

    8,418      263

CSR Ltd.

    5,240      7

Downer EDI Ltd.

    950      4

Fairfax Media Ltd.

    5,889      6

Fortescue Metals Group Ltd.*

    11,122      34

Leighton Holdings Ltd.

    526      10

Macquarie Airports

    3,873      7

Macquarie Infrastructure Group

    5,658      6

National Australia Bank Ltd.

    10,495      189

Newcrest Mining Ltd.

    2,641      65

Orica Ltd.

    1,925      33

Origin Energy Ltd.

    4,186      49

Pacific Brands Ltd.

    2,109      1

QBE Insurance Group Ltd.

    5,498      88

Santos Ltd.

    4,388      52

Suncorp-Metway Ltd.

    6,272      34

Toll Holdings Ltd.

    2,562      13

Transurban Group

    5,029      17

United Group Ltd.

    327      3

Wesfarmers Ltd.

    5,272      96

West Australian Newspapers Holdings Ltd.

    406      1

Westpac Banking Corp.

    16,501      267

Woodside Petroleum Ltd.

    2,907      101

Woolworths Ltd.

    6,970      147
         
        1,804
         

Austria - 0.3%

      

OMV A.G.

    820      31

Telekom Austria A.G.

    1,780      28

Verbund - Oesterreichische Elektrizita-etswirtschafts A.G., Class A

    400      20

Voestalpine A.G.

    870      24

Wienerberger A.G.*

    320      4
         
        107
         

Belgium - 0.3%

      

Bekaert N.V.

    26      3

Belgacom S.A.

    849      27

Delhaize Group

    529      37

Dexia S.A.*

    2,795      21

KBC Groep N.V.*

    1,100      20

Solvay S.A., Class A

    282      24

Umicore

    639      15
         
        147
         

Canada - 7.3%

      

Agnico-Eagle Mines Ltd.

    734      39

Agrium, Inc.

    753      30

Astral Media, Inc.

    207      5

Atco Ltd., Class I

    104      4

Bank of Montreal

    2,972      125

Bank of Nova Scotia

    5,561      208

Barrick Gold Corp.

    4,792      161

BCE, Inc.

    1,249      26

Biovail Corp.

    414      6

Bombardier, Inc., Class B

    7,953      24

Brookfield Asset Management, Inc., Class A

    3,190      55

Canadian Imperial Bank of Commerce (1)

    2,082      104

Canadian National Railway Co.

    2,573      111

Canadian Pacific Railway Ltd.

    919      37

Canadian Tire Corp. Ltd., Class A

    432      20

Canadian Utilities Ltd., Class A

    104      3

Cardiome Pharma Corp.*

    207      1

CML Healthcare Income Fund

    104      1

Enbridge, Inc.

    2,013      70

EnCana Corp.

    4,164      206

Finning International, Inc.

    518      8

George Weston Ltd.

    252      13

Gildan Activewear, Inc.*

    311      5

Groupe Aeroplan, Inc.

    621      4

Inmet Mining Corp.

    109      4

Kincross Gold Corp.

    3,776      69

Loblaw Cos. Ltd.

    531      16

Manulife Financial Corp.

    8,840      153

MDS, Inc.*

    414      2

Methanex Corp.

    311      4

Metro, Inc., Class A

    581      19

 

EQUITY INDEX FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5% continued

      

Canada - 7.3% continued

      

Nexen, Inc.

    2,588    $ 56

Nova Chemicals Corp.

    207      1

Petro-Canada

    2,647      102

Potash Corp. of Saskatchewan

    1,676      156

Rogers Communications, Inc., Class B

    2,879      74

RONA, Inc.*

    311      3

Royal Bank of Canada

    7,800      319

Saputo, Inc.

    414      9

Shaw Communications, Inc., Class B

    1,773      30

Shoppers Drug Mart Corp.

    1,122      48

SNC-Lavalin Group, Inc.

    813      30

Sun Life Financial, Inc.

    3,015      81

Suncor Energy, Inc.

    5,306      161

Talisman Energy, Inc.

    5,584      80

Teck Resources Ltd., Class B*

    2,606      42

TELUS Corp.

    259      7

Toronto-Dominion (The) Bank

    4,651      240

TransAlta Corp.

    1,079      21

TransCanada Corp.

    3,379      91

Viterra Inc.*

    621      5

Yamana Gold, Inc.

    4,052      36
         
        3,125
         

Denmark - 0.6%

      

Danisco A/S

    141      6

FLSmidth & Co. A/S*

    153      5

Novo-Nordisk A/S, Class B

    2,985      162

Novozymes A/S, Class B

    222      18

Vestas Wind Systems A/S*

    1,050      76
         
        267
         

Finland - 0.9%

      

KCI Konecranes OYJ

    308      7

Kesko OYJ, Class B

    189      5

Kone OYJ, Class B

    987      30

Metso OYJ

    368      7

Neste Oil OYJ

    357      5

Nokia OYJ

    20,501      299

Rautaruukki OYJ

    231      5

Stora Enso OYJ (Registered)*

    2,393      13

UPM-Kymmene OYJ

    2,840      25

YIT OYJ

    342      3
         
        399
         

France - 2.9%

      

Accor S.A.

    1,179      47

Air Liquide S.A.

    1,469      135

Bouygues S.A.

    1,351      51

Carrefour S.A.

    3,984      170

Cie de Saint-Gobain

    2,583      86

Compagnie Generale des Establissements Michelin, Class B

    721      41

Danone

    3,478      172

Dassault Systemes S.A.

    158      7

Lafarge S.A.

    898      61

Lafarge S.A. - NEW*

    288      19

L’Oreal S.A.

    1,586      119

Peugeot S.A.*

    890      23

PPR

    501      41

Renault S.A.*

    1,089      40

Schneider Electric S.A.

    1,356      104

Vinci S.A.

    2,611      117
         
        1,233
         

Germany - 2.0%

      

Allianz S.E. (Registered)

    2,494      231

Bayerische Motoren Werke A.G.

    1,764      67

Beiersdorf A.G.

    391      18

Deutsche Lufthansa A.G. (Registered)

    1,129      14

Deutsche Post A.G. (Registered)

    5,006      65

K+S A.G.

    868      49

Linde A.G.

    758      62

Metro A.G.

    850      41

Muenchener Rueckversicherungs A.G. (Registered)

    1,131      153

Q-Cells S.E.*

    169      4

Solarworld A.G.

    229      5

Volkswagen A.G.

    489      166
         
        875
         

Greece - 0.1%

      

Coca Cola Hellenic Bottling Co. S.A.

    910      19

Public Power Corp. S.A.*

    600      12

Titan Cement Co. S.A.

    110      3
         
        34
         

Hong Kong - 1.2%

      

CLP Holdings Ltd.

    10,000      66

Hang Lung Properties Ltd.

    11,000      36

Hang Seng Bank Ltd.

    4,300      61

Hong Kong & China Gas Co. Ltd.

    26,700      56

Hong Kong Electric Holdings Co. Ltd.

    8,500      47

Li & Fung Ltd.

    14,000      38

 

NORTHERN FUNDS QUARTERLY REPORT    2    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5% continued

      

Hong Kong - 1.2% continued

      

MTR Corp.

    9,528    $ 29

New World Development Ltd.

    13,000      24

Noble Group Ltd.

    13,600      17

Sun Hung Kai Properties Ltd.

    11,000      137
         
        511
         

Ireland - 0.3%

      

CRH PLC

    3,833      88

Experian PLC

    5,397      41

Kerry Group PLC, Class A

    709      16
         
        145
         

Italy - 2.4%

      

Atlantia S.p.A.

    2,260      46

Autogrill S.p.A.

    245      2

Enel S.p.A.

    40,727      198

ENI S.p.A.

    15,137      359

Italcementi S.p.A. (RSP)

    237      1

Pirelli & C. S.p.A.*

    4,915      2

Snam Rete Gas S.p.A.

    10,402      46

Telecom Italia S.p.A.

    70,364      97

Telecom Italia S.p.A. (RSP)

    31,698      31

Terna S.p.A.

    8,276      28

UniCredit S.p.A. (Milan Exchange)*

    92,818      238
         
        1,048
         

Japan - 10.5%

      

Advantest Corp.

    900      16

Aeon Co. Ltd.

    3,700      36

Aisin Seiki Co. Ltd.

    900      19

Ajinomoto Co., Inc.

    3,000      24

All Nippon Airways Co. Ltd.

    2,000      7

Asahi Glass Co. Ltd.

    6,000      48

Asahi Kasei Corp.

    7,000      35

Astellas Pharma, Inc.

    2,000      71

Benesse Corp.

    400      16

Canon, Inc.

    7,400      241

Chugai Pharmaceutical Co. Ltd.

    1,010      19

Dai Nippon Printing Co. Ltd.

    3,000      41

Daido Steel Co. Ltd.

    2,000      8

Daiichi Sankyo Co. Ltd.

    3,300      59

Daito Trust Construction Co. Ltd.

    500      23

Daiwa House Industry Co. Ltd.

    2,000      21

Daiwa Securities Group, Inc.

    7,000      41

Denso Corp.

    2,500      64

Eisai Co. Ltd.

    1,300      46

Fanuc Ltd.

    1,000      80

Fast Retailing Co. Ltd.

    300      39

FUJIFILM Holdings Corp.

    2,000      63

Fujitsu Ltd.

    10,000      54

Hankyu Hanshin Holdings, Inc.

    5,000      23

Hitachi Construction Machinery Co. Ltd.

    200      3

Honda Motor Co. Ltd.

    7,600      208

Ibiden Co. Ltd.

    700      20

JGC Corp.

    1,000      16

Joyo Bank (The) Ltd.

    3,000      15

JS Group Corp.

    900      14

JSR Corp.

    1,000      17

Kaneka Corp.

    1,000      7

Kao Corp.

    3,000      65

Kawasaki Kisen Kaisha Ltd.

    2,000      8

KDDI Corp.

    19      101

Keihin Electric Express Railway Co. Ltd.

    2,000      16

Keio Corp.

    2,000      12

Kintetsu Corp.

    8,000      35

Konica Minolta Holdings, Inc.

    2,000      21

Kubota Corp.

    3,000      25

Kuraray Co. Ltd.

    2,000      22

Kurita Water Industries Ltd.

    400      13

Kyocera Corp.

    1,100      83

Lawson, Inc.

    200      9

Makita Corp.

    700      17

Mazda Motor Corp.

    2,000      5

Mitsubishi Chemical Holdings Corp.

    6,500      27

Mitsubishi Estate Co. Ltd.

    6,000      99

Mitsubishi Gas Chemical Co., Inc.

    1,000      5

Mitsubishi Materials Corp.

    5,000      16

Mitsui Chemicals, Inc.

    4,000      13

Mitsui Fudosan Co. Ltd.

    5,000      87

Mizuho Financial Group, Inc.

    45,133      105

Murata Manufacturing Co. Ltd.

    1,300      55

NGK Insulators Ltd.

    2,000      41

Nidec Corp.

    300      18

Nikon Corp.

    2,000      34

Nippon Express Co. Ltd.

    4,000      18

Nippon Mining Holdings, Inc.

    3,500      18

Nippon Sheet Glass Co. Ltd.

    2,000      6

Nippon Steel Corp.

    27,000      103

Nippon Yusen Kabushiki Kaisha

    6,000      26

Nissan Motor Co. Ltd.

    12,600      76

 

EQUITY INDEX FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5% continued

      

Japan - 10.5% continued

      

Nisshin Seifun Group, Inc.

    1,000    $ 12

Nisshin Steel Co. Ltd.

    2,000      4

Nissin Foods Holdings Co. Ltd.

    200      6

Nitto Denko Corp.

    700      21

Nomura Holdings, Inc.

    14,500      121

NSK Ltd.

    1,000      5

NTT DoCoMo, Inc.

    102      149

Obayashi Corp.

    3,000      15

Odakyu Electric Railway Co. Ltd.

    3,000      26

Olympus Corp.

    1,000      24

Omron Corp.

    1,100      16

Osaka Gas Co. Ltd.

    9,000      29

Panasonic Corp.

    14,000      188

Panasonic Electric Works Co. Ltd.

    2,000      19

Rengo Co. Ltd.

    1,000      6

Resona Holdings, Inc.

    2,600      36

Ricoh Co. Ltd.

    3,000      38

Rohm Co. Ltd.

    700      51

Sanyo Electric Co. Ltd.*

    9,000      23

Secom Co. Ltd.

    1,100      45

Sekisui Chemical Co. Ltd.

    2,000      13

Sekisui House Ltd.

    3,000      30

Sharp Corp.

    5,000      52

Shimano, Inc.

    400      15

Shimizu Corp.

    2,000      9

Shin-Etsu Chemical Co. Ltd.

    1,700      79

Shinsei Bank Ltd.*

    4,000      6

Shionogi & Co. Ltd.

    1,000      19

Shiseido Co. Ltd.

    2,000      33

Shizuoka Bank (The) Ltd.

    3,000      30

SMC Corp. of Japan

    300      32

Sojitz Corp.

    3,200      7

Sony Corp.

    5,700      147

Sumitomo Chemical Co. Ltd.

    8,000      36

Sumitomo Metal Industries Ltd.

    17,000      45

Sumitomo Metal Mining Co. Ltd.

    3,000      42

Sumitomo Trust & Banking (The) Co. Ltd.

    7,000      38

T&D Holdings, Inc.

    1,300      37

Taiyo Nippon Sanso Corp.

    2,000      19

TDK Corp.

    700      33

Teijin Ltd.

    4,000      13

Terumo Corp.

    800      35

Tobu Railway Co. Ltd.

    3,000      18

Tohoku Electric Power Co., Inc.

    2,200      46

Tokyo Electron Ltd.

    800      38

Tokyo Gas Co. Ltd.

    11,000      39

Tokyu Corp.

    5,000      25

Toppan Printing Co. Ltd.

    3,000      30

Toray Industries, Inc.

    7,000      36

Tosoh Corp.

    1,000      3

Toyo Seikan Kaisha Ltd.

    600      13

Toyota Industries Corp.

    700      17

Ube Industries Ltd. of Japan

    3,000      8

Uni-Charm Corp.

    200      15

Yakult Honsha Co. Ltd.

    900      17

Yamaha Corp.

    300      4

Yamaha Motor Co. Ltd.

    600      7

Yamato Holdings Co. Ltd.

    2,000      27

Yamato Kogyo Co. Ltd.

    200      6
         
        4,526
         

Netherlands - 4.5%

      

Aegon N.V.

    8,159      50

Akzo Nobel N.V.

    1,423      63

Arcelormittal

    6,405      210

ASML Holding N.V.*

    2,134      46

Fugro N.V. - CVA

    406      17

ING Groep N.V. - CVA

    11,114      112

Koninklijke Ahold N.V.

    6,415      74

Koninklijke Boskalis Westminster N.V.

    110      3

Koninklijke DSM N.V.

    857      27

Koninklijke Philips Electronics N.V.

    5,119      95

Randstad Holdings N.V.*

    701      19

Reed Elsevier N.V.

    3,282      36

Royal Dutch Shell PLC, Class A (London Exchange)

    20,275      508

Royal Dutch Shell PLC, Class B (London Exchange)

    15,518      392

TNT N.V.

    1,923      37

Unilever N.V. - CVA

    8,590      207

Wolters Kluwer N.V.

    1,543      27
         
        1,923
         

New Zealand - 0.1%

      

Auckland International Airport Ltd.

    2,171      2

Contact Energy Ltd.

    576      2

Fletcher Building Ltd.

    2,038      9

Mainfreight Ltd.

    161      —  

Telecom Corp. of New Zealand Ltd.

    9,622      17
         
        30
         

 

NORTHERN FUNDS QUARTERLY REPORT    4    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5% continued

      

Norway - 0.7%

      

DnB NOR ASA*

    5,600    $ 43

Norsk Hydro ASA*

    3,750      19

Orkla ASA

    5,450      40

ProSafe SE*

    300      1

Renewable Energy Corp. A/S*

    400      3

StatoilHydro ASA

    7,100      140

Storebrand ASA*

    550      2

Tandberg ASA

    450      8

Telenor ASA*

    3,700      29

Yara International ASA

    950      27
         
        312
         

Portugal - 0.3%

      

Banco Comercial Portugues S.A. (Registered)

    14,351      15

Banco Espirito Santo S.A. (Registered)

    1,545      8

Brisa Auto-Estradas de Portugal S.A.

    2,502      18

Cimpor Cimentos de Portugal SGPS S.A.

    879      6

Galp Energia SGPS S.A., Class B

    1,312      19

Jeronimo Martins SGPS S.A.

    612      4

Portugal Telecom, SGPS, S.A. (Registered)

    4,681      46
         
        116
         

Singapore - 0.2%

      

City Developments Ltd.

    3,000      18

ComfortDelgro Corp. Ltd.

    7,000      6

SembCorp Industries Ltd.

    4,000      8

SembCorp Marine Ltd.

    2,000      4

Singapore Airlines Ltd.

    3,000      27
         
        63
         

Spain - 3.4%

      

Abertis Infraestructuras S.A.

    1,537      29

Acciona S.A.

    145      18

Acerinox S.A.

    1,345      25

ACS Actividades de Construccion y Servicios S.A.

    1,325      67

Banco Bilbao Vizcaya Argentaria S.A.

    20,625      260

Banco Santander S.A.

    46,377      560

Cia Espanola de Petroleos S.A.

    116      4

Cintra Concesiones de Infraestructuras de Transporte S.A.

    404      3

Ebro Puleva S.A.

    214      3

Gamesa Corp. Tecnologica S.A.

    1,003      19

Gas Natural SDG S.A.

    2,478      45

Iberdrola S.A.

    27,428      223

Inditex S.A.

    1,314      63

Repsol YPF S.A.

    6,920      155

SOS Cuetara S.A.*

    322      2

Zardoya Otis S.A.

    348      7
         
        1,483
         

Sweden - 1.5%

      

Alfa Laval AB

    1,400      13

Assa Abloy AB, Class B

    1,300      18

Electrolux AB, Class B*

    1,600      23

Elekta AB, Class B

    200      3

Hennes & Mauritz AB, Class B

    1,500      75

Holmen AB, Class B

    200      4

Sandvik AB

    6,600      49

Scania AB, Class B

    1,600      16

Skanska AB, Class B

    1,900      21

SKF AB, Class B

    1,900      24

SSAB AB, Class A

    1,300      15

Svenska Cellulosa AB, Class B

    2,800      30

Svenska Handelsbanken AB, Class A

    3,245      61

Telefonaktiebolaget LM Ericsson, Class B

    16,253      159

TeliaSonera AB

    11,723      62

Volvo AB, Class A

    2,946      18

Volvo AB, Class B

    8,100      50
         
        641
         

Switzerland - 4.0%

      

Adecco S.A. (Registered)

    799      33

Credit Suisse Group A.G. (Registered)

    6,283      287

Geberit A.G. (Registered)

    229      28

Givaudan S.A. (Registered)

    39      24

Holcim Ltd. (Registered)*

    1,192      68

Novartis A.G. (Registered)

    12,823      521

Roche Holding A.G. (Genusschein)

    3,981      542

Swiss Reinsurance (Registered)

    1,754      58

Swisscom A.G. (Registered)

    118      36

Xstrata PLC

    12,069      133
         
        1,730
         

United Kingdom - 7.9%

      

Acergy S.A.

    450      4

Aggreko PLC

    763      7

Arriva PLC

    556      4

AstraZeneca PLC

    8,071      355

Aviva PLC

    15,495      88

Balfour Beatty PLC

    2,875      15

British Airways PLC*

    1,025      2

 

EQUITY INDEX FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5% continued

      

United Kingdom - 7.9% continued

      

Bunzl PLC

    1,692    $ 14

Burberry Group PLC

    1,537      11

Capita Group PLC

    3,165      37

Centrica PLC

    26,768      98

Compass Group PLC

    8,761      49

De La Rue PLC

    270      4

FirstGroup PLC

    1,995      12

Hays PLC

    2,523      4

Home Retail Group PLC

    4,711      20

HSBC Holdings PLC

    97,991      813

Inchcape PLC

    8,320      3

Intercontinental Hotels Group PLC

    1,480      15

International Power PLC

    8,082      32

Invensys PLC

    2,121      8

ITV PLC

    5,836      3

Kingfisher PLC

    12,790      37

Lloyds Banking Group PLC

    80,187      92

National Grid PLC

    13,811      125

Next PLC

    1,020      25

Pearson PLC

    4,138      42

Persimmon PLC

    586      3

Reckitt Benckiser Group PLC

    4,002      182

Reed Elsevier PLC

    5,421      40

Royal Bank of Scotland Group PLC*

    95,553      61

Scottish & Southern Energy PLC

    4,697      88

Stagecoach Group PLC

    1,468      3

Tesco PLC

    43,168      252

Thomson Reuters PLC

    878      25

Tomkins PLC

    4,532      11

TUI Travel PLC

    2,757      11

Unilever PLC

    7,053      165

Vodafone Group PLC

    300,496      581

Wolseley PLC*

    1,549      30

WPP PLC

    6,149      41
         
        3,412
         

United States - 41.9%

      

3M Co.

    3,900      234

Adobe Systems, Inc.*

    2,940      83

AES (The) Corp.*

    3,820      44

Aetna, Inc.

    2,540      64

Aflac, Inc.

    2,580      80

Agilent Technologies, Inc.*

    1,760      36

Air Products & Chemicals, Inc.

    1,180      76

Airgas, Inc.

    390      16

Allergan, Inc.

    1,720      82

Amazon.com, Inc.*

    1,780      149

American Express Co.

    6,500      151

Amgen, Inc.*

    5,740      304

Apache Corp.

    1,870      135

Applied Materials, Inc.

    7,390      81

Autozone, Inc.*

    220      33

AvalonBay Communities, Inc.

    450      25

Ball Corp.

    470      21

Bank of New York Mellon Corp.

    6,870      201

Baxter International, Inc.

    3,370      178

BB&T Corp.

    3,580      79

Becton, Dickinson & Co.

    1,390      99

Bed Bath & Beyond, Inc.*

    1,350      42

Best Buy Co., Inc.

    2,330      78

Biogen Idec, Inc.*

    1,510      68

Black & Decker Corp.

    160      5

BorgWarner, Inc.

    560      19

Boston Properties, Inc.

    630      30

Bristol-Myers Squibb Co.

    10,990      223

Burlington Northern Santa Fe Corp.

    1,910      140

C.H. Robinson Worldwide, Inc.

    870      45

Calpine Corp.*

    2,169      24

Caterpillar, Inc.

    3,470      115

Celgene Corp.*

    2,640      126

Centerpoint Energy, Inc.

    1,580      17

Charles Schwab (The) Corp.

    6,630      116

Chesapeake Energy Corp.

    3,540      70

Chubb Corp.

    1,800      72

Cisco Systems, Inc.*

    33,260      620

CME Group, Inc.

    353      110

Coach, Inc.

    1,830      49

Colgate-Palmolive Co.

    2,750      195

Consolidated Edison, Inc.

    1,500      56

Cooper Industries Ltd., Class A

    840      26

Corning, Inc.

    8,530      137

Costco Wholesale Corp.

    2,490      114

Crown Castle International Corp.*

    1,410      34

CSX Corp.

    2,180      75

Cummins, Inc.

    1,150      40

Danaher Corp.

    1,410      87

Darden Restaurants, Inc.

    630      21

Deere & Co.

    2,380      95

Dell, Inc.*

    11,000      151

 

NORTHERN FUNDS QUARTERLY REPORT    6    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5% continued

      

United States - 41.9% continued

      

Devon Energy Corp.

    2,490    $ 136

Discover Financial Services

    2,370      24

Disney (The Walt) Co.

    10,360      242

Donnelley (R.R.) & Sons Co.

    530      6

Dover Corp.

    1,030      34

Dun & Bradstreet Corp.

    310      25

Eaton Corp.

    850      38

Ecolab, Inc.

    1,360      53

Edison International

    1,570      49

Emerson Electric Co.

    4,330      140

EOG Resources, Inc.

    1,360      92

EQT Corp.

    580      20

Equity Residential

    1,410      31

Expeditors International of Washington, Inc.

    1,090      36

Family Dollar Stores, Inc.

    720      20

Fastenal Co.

    590      20

FedEx Corp.

    1,670      93

Fifth Third Bancorp

    3,900      28

First Solar, Inc.*

    210      34

FPL Group, Inc.

    2,180      124

Franklin Resources, Inc.

    1,000      72

Gap (The), Inc.

    2,550      42

General Mills, Inc.

    1,790      100

Genuine Parts Co.

    720      24

Genworth Financial, Inc., Class A

    970      7

Genzyme Corp.*

    1,570      87

Gilead Sciences, Inc.*

    5,200      244

Google, Inc., Class A*

    1,340      565

Grainger (W.W.), Inc.

    400      33

Harley-Davidson, Inc.

    1,200      19

Hartford Financial Services Group, Inc.

    1,500      18

Hess Corp.

    1,440      77

Hewlett-Packard Co.

    13,740      531

Host Hotels & Resorts, Inc.

    2,380      20

Hudson City Bancorp, Inc.

    2,700      36

IBM Corp.

    7,500      783

Illinois Tool Works, Inc.

    2,710      101

Ingersoll-Rand Co. Ltd., Class A*

    1,662      35

Intel Corp.

    31,620      523

IntercontinentalExchange, Inc.*

    380      43

International Paper Co.

    2,450      37

Johnson & Johnson

    15,750      895

Johnson Controls, Inc.

    3,350      73

KeyCorp

    2,860      15

Kimberly-Clark Corp.

    2,260      118

Kimco Realty Corp.

    1,550      16

Kraft Foods, Inc., Class A

    8,220      208

Limited Brands, Inc.

    1,640      20

Lincoln National Corp.

    1,180      20

M&T Bank Corp.

    620      32

Marriott International, Inc., Class A

    1,666      37

Martin Marietta Materials, Inc.

    160      13

Masco Corp.

    1,640      16

Mattel, Inc.

    1,990      32

McDonald’s Corp.

    6,210      357

MDU Resources Group, Inc.

    910      17

MeadWestvaco Corp.

    430      7

MetroPCS Communications, Inc.*

    1,210      16

Motorola, Inc.

    12,190      81

National-Oilwell Varco, Inc.*

    2,240      73

NetApp, Inc.*

    1,450      29

NII Holdings, Inc.*

    850      16

NIKE, Inc., Class B

    1,560      81

Nordstrom, Inc.

    780      16

Norfolk Southern Corp.

    1,860      70

Northern Trust Corp.(2) (3)

    1,185      64

NRG Energy, Inc.*

    990      26

Nucor Corp.

    1,730      77

NYSE Euronext

    1,360      37

Omnicom Group, Inc.

    1,540      49

Owens-Illinois, Inc.*

    730      20

PACCAR, Inc.

    1,920      62

Penney (J.C.) Co., Inc.

    980      28

People’s United Financial, Inc.

    1,780      27

PepsiCo, Inc.

    8,900      489

PG&E Corp.

    1,990      76

Pitney Bowes, Inc.

    850      19

PNC Financial Services Group, Inc.

    2,660      103

PPL Corp.

    2,110      70

Praxair, Inc.

    1,650      117

Price (T. Rowe) Group, Inc.

    1,380      57

Principal Financial Group, Inc.

    1,640      31

Procter & Gamble (The) Co.

    16,640      850

Progressive (The) Corp.*

    3,780      57

ProLogis

    2,070      17

Public Service Enterprise Group, Inc.

    2,780      91

QUALCOMM, Inc.

    9,130      413

Questar Corp.

    890      28

 

EQUITY INDEX FUNDS    7    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.5% continued

      

United States - 41.9% continued

      

Regions Financial Corp.

      5,590    $ 23

Rockwell Automation, Inc.

      530      17

Roper Industries, Inc.

      440      20

RRI Energy, Inc.*

      1,100      6

Schering-Plough Corp.

      8,840      222

Sempra Energy

      1,370      68

Sigma-Aldrich Corp.

      600      30

Sprint Nextel Corp.*

      14,660      71

SPX Corp.

      130      6

St. Jude Medical, Inc.*

      1,810      74

Stanley Works (The)

      380      13

Staples, Inc.

      3,850      78

Starbucks Corp.*

      3,810      53

Starwood Hotels & Resorts Worldwide, Inc.

      880      20

State Street Corp.

      2,840      134

SunTrust Banks, Inc.

      2,610      43

Sysco Corp.

      3,230      73

Target Corp.

      4,170      165

Texas Instruments, Inc.

      7,320      156

Thermo Fisher Scientific, Inc.*

      2,220      91

Thomson Reuters Corp.

      911      27

Tiffany & Co.

      620      16

TJX Cos., Inc.

      2,340      74

Travelers Cos. (The), Inc.

      3,250      133

U.S. Bancorp

      10,620      190

United Parcel Service, Inc., Class B

      3,820      191

United States Steel Corp.

      720      26

VF Corp.

      490      27

Vornado Realty Trust

      959      43

Vulcan Materials Co.

      590      25

WellPoint, Inc.*

      2,680      136

Wells Fargo & Co.

      26,450      642

Weyerhaeuser Co.

      1,210      37

Whirlpool Corp.

      360      15

Windstream Corp.

      1,790      15

Wisconsin Energy Corp.

      450      18

Xerox Corp.

      4,110      27

XTO Energy, Inc.

      3,330      127

Zimmer Holdings, Inc.*

      1,080      46
         
        18,057
         

Total Common Stocks

      
         

(Cost $47,624) (4)

         41,988

PREFERRED STOCKS - 0.1%

      

Germany - 0.1%

      

Henkel A.G. & Co. KGaA

      948      30

Volkswagen A.G.

      565      39
         
        69
         

Total Preferred Stocks

      
         

(Cost $90) (4)

         69

RIGHTS - 0.0%

      

Asciano Group*

      1,308      —  

Fortis*

      6,339      —  

Givaudan S.A.*

      5      —  

Renewable Energy Corp. AS*

      137      1

Zardoya Otis S.A.*

      340      —  
         

Total Rights

      
         

(Cost $ — ) (4)

         1
    

 

PRINCIPAL
AMOUNT
(000S)

     

SHORT-TERM INVESTMENTS - 1.1%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit, 0.08%, 7/1/09

    $ 466      466
         

Total Short-Term Investments

      
         

(Cost $466)

         466

Total Investments - 98.7%

      
         

(Cost $48,180)

         42,524

Other Assets less Liabilities - 1.3%

         556
         

NET ASSETS - 100.0%

       $ 43,080

 

(1) Restricted security that has been deemed illiquid. At June 30, 2009, the value of the restricted illiquid security amounted to approximately $104,000 or 0.24% of net assets. Additional information on the restricted illiquid security is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		    ACQUISITION
COST
(000S)

Canadian Imperial Bank of Commerce

    03/05/08-04/23/09    $ 122

 

(2) At March 31, 2009, the value of the Fund’s investment in Northern Trust Corp. was approximately $71,000 with no purchases or sales during the quarter ended June 30, 2009.
(3) Investment in affiliate.

 

NORTHERN FUNDS QUARTERLY REPORT    8    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

GLOBAL SUSTAINABILITY INDEX FUND    continued    JUNE 30, 2009 (UNAUDITED)

 

 

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

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 48,180   
        

Gross tax appreciation of investments

    $ 1,280   

Gross tax depreciation of investments

      (6,936 ) 
        

Net tax depreciation of investments

    $ (5,656 ) 
        

At June 30, 2009, the Global Sustainability Index Fund had open futures contracts as follows:

 

TYPE

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

DJ Euro Stoxx 50 (Euro)

    13    $ 437    Long    9/09    $ (3 ) 

S&P 500 E-Mini (U.S. Dollar)

    5      229    Long    9/09      (3 ) 

FTSE 100 Index (British Pound)

    1      69    Long    9/09      (3 ) 

SPI 200 (Australian Dollar)

    2      157    Long    9/09      —     

TOPIX Index (Japanese Yen)

    1      96    Long    9/09      —     
                    

Total

                $ (9 ) 
                    

At June 30, 2009, the Global Sustainability Index Fund’s investments were denominated in the following currencies :

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

U.S. Dollar

    43.2 % 

Euro

    15.7   

Japanese Yen

    10.8   

British Pound

    10.7   

Canadian Dollar

    7.3   

All other currencies less than 5%

    12.3   
      

Total

    100.0 % 
      

At June 30, 2009, the industry sectors for the Global Sustainibility Index Fund were:

 

     % OF LONG-TERM  

INDUSTRY SECTOR

    INVESTMENTS  

Consumer Discretionary

    9.6 % 

Consumer Staples

    10.1   

Energy

    7.9   

Financials

    22.1   

Health Care

    11.4   

Industrials

    10.4   

Information Technology

    13.0   

Materials

    7.2   

Telecommunication Services

    3.5   

Utilities

    4.8   
      

Total

    100.0 % 
      

At June 30, 2009, the Global Sustainability Index Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS TO DELIVER CURRENCY

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

U.S. Dollar

    10    Euro    7    7/01/09    $ —  

U.S. Dollar

    61    British Pound    37    9/16/09      —  

U.S. Dollar

    382    Euro    274    9/16/09      2

U.S. Dollar

    92    Japanese Yen    9,028    9/16/09      2
                  

Total

                $ 4
                  

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments. Following is a summary of the inputs used in valuing the Global Sustainability Index Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

           

Consumer Discretionary

    $ 1,988      $ 2,002    $ —      $ 3,990   

Consumer Staples

      2,257        1,953      —        4,210   

Energy

      1,478        1,855      —        3,333   

Financials

      4,148        5,159      —        9,307   

Health Care

      2,949        1,867      —        4,816   

Industrials

      2,029        2,312      1      4,342   

Information Technology

      4,215        1,266      —        5,481   

Materials

      1,097        1,941      —        3,038   

Telecommunication Services

      258        1,203      —        1,461   

Utilities

      763        1,247      —        2,010   

Preferred Stocks

           

Consumer Discretionary

      —          39      —        39   

Consumer Staples

      —          30      —        30   

Rights

           

Industrials

      —          1      —        1   

Short-Term Investments

      —          466      —        466   
                              

Total Investments

    $ 21,182      $ 21,341    $ 1    $ 42,524   
                              

Other Financial Instruments*

    $ (9 )    $ 4    $ —      $ (5 ) 
                              

 

* Other financial instruments include futures and forwards, if applicable.

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

 

     INVESTMENTS
IN SECURITIES
(000S)

Balance as of 3/31/09

    $ —  

Realized gain (loss)

      —  

Change in unrealized appreciation/depreciation

      —  

Net Purchases (Sales)

      1

Transfers in and/or out of Level 3

      —  
      

Balance as of 6/30/09

    $ 1

There was no change in unrealized gains (losses) due to investments in level 3 securities still held at June 30, 2009.

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

INTERNATIONAL EQUITY INDEX FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9%

      

Australia - 7.0%

      

AGL Energy Ltd.

    53,031    $ 572

Alumina Ltd.

    180,382      207

Amcor Ltd.

    92,747      372

AMP Ltd.

    220,564      864

Aristocrat Leisure Ltd.

    44,804      136

Arrow Energy Ltd.*

    25,734      73

ASX Ltd.

    18,792      558

Australia & New Zealand Banking Group Ltd.

    244,658      3,234

AXA Asia Pacific Holdings Ltd.

    97,722      306

Bendigo and Adelaide Bank Ltd.

    13,206      74

BHP Billiton Ltd.

    368,400      10,096

Billabong International Ltd.

    13,562      95

BlueScope Steel Ltd.

    182,694      369

Boral Ltd.

    100,425      327

Brambles Ltd.

    152,032      727

Caltex Australia Ltd.

    15,266      170

CFS Retail Property Trust

    205,116      271

Coca-Cola Amatil Ltd.

    60,581      420

Cochlear Ltd.

    6,180      287

Commonwealth Bank of Australia

    162,483      5,080

Computershare Ltd.

    48,796      354

Crown Ltd.

    59,307      346

CSL Ltd.

    66,740      1,725

CSR Ltd.

    176,783      241

Dexus Property Group

    666,282      399

Fairfax Media Ltd.

    247,870      243

Fortescue Metals Group Ltd.*

    136,634      414

Foster’s Group Ltd.

    211,021      875

Goodman Fielder Ltd.

    111,815      117

GPT Group

    980,773      383

Harvey Norman Holdings Ltd.

    64,926      172

Incitec Pivot Ltd.

    212,437      404

Insurance Australia Group Ltd.

    230,231      646

Leighton Holdings Ltd.

    17,907      337

Lend Lease Corp. Ltd.

    44,178      249

Lion Nathan Ltd.

    39,496      369

Macquarie Airports

    36,653      67

Macquarie Group Ltd.

    32,366      1,016

Macquarie Infrastructure Group

    263,871      303

Metcash Ltd.

    67,000      232

Mirvac Group

    221,572      191

National Australia Bank Ltd.

    214,164      3,855

Newcrest Mining Ltd.

    53,303      1,306

OneSteel Ltd.

    158,704      327

Orica Ltd.

    40,447      704

Origin Energy Ltd.

    95,881      1,128

OZ Minerals Ltd.*

    353,742      262

Paladin Energy Ltd.*

    80,456      317

Perpetual Ltd.

    4,700      108

Qantas Airways Ltd.

    170,251      275

QBE Insurance Group Ltd.

    108,921      1,738

Rio Tinto Ltd.

    31,284      1,309

Santos Ltd.

    96,235      1,130

Sims Metal Management Ltd.

    17,125      356

Sonic Healthcare Ltd.

    41,779      414

Stockland

    257,015      659

Suncorp-Metway Ltd.

    142,997      768

TABCORP Holdings Ltd.

    64,714      372

Tatts Group Ltd.

    141,878      291

Telstra Corp. Ltd.

    482,908      1,318

Toll Holdings Ltd.

    79,548      395

Transurban Group

    126,721      422

Wesfarmers Ltd.

    111,143      2,023

Wesfarmers Ltd. - PPS

    22,103      417

Westfield Group

    223,217      2,033

Westpac Banking Corp.

    319,413      5,174

Woodside Petroleum Ltd.

    53,677      1,860

Woolworths Ltd.

    134,535      2,845

WorleyParsons Ltd.

    19,337      368
         
        65,495
         

Austria - 0.3%

      

Erste Group Bank A.G.

    19,140      520

OMV A.G.

    16,460      617

Raiffeisen International Bank Holding A.G.

    6,501      226

Telekom Austria A.G.

    35,340      553

Verbund - Oesterreichische Elektrizita- etswirtschafts A.G., Class A

    8,870      452

Vienna Insurance Group

    4,150      180

Voestalpine A.G.

    13,320      366
         
        2,914
         

Belgium - 0.9%

      

Anheuser-Busch InBev N.V.

    79,155      2,866

Anheuser-Busch InBev N.V. (VVPR)*

    38,176      —  

Belgacom S.A.

    16,697      534

Colruyt S.A.

    1,731      395

Delhaize Group

    11,327      797

 

EQUITY INDEX FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Belgium - 0.9% continued

      

Dexia S.A.*

    59,942    $ 455

Fortis*

    245,237      836

Groupe Bruxelles Lambert S.A.

    9,113      667

KBC Groep N.V.*

    17,545      320

Mobistar S.A.

    3,416      211

Nationale A Portefeuille

    3,695      179

Solvay S.A., Class A

    6,508      549

UCB S.A.

    11,391      365

Umicore

    12,514      285
         
        8,459
         

Cyprus - 0.0%

      

Bank of Cyprus Public Co. Ltd.

    42,550      237
         

Denmark - 0.9%

      

A.P. Moller - Maersk A/S, Class A

    63      370

A.P. Moller - Maersk A/S, Class B

    121      726

Carlsberg A/S, Class B

    11,603      746

Coloplast A/S, Class B

    2,956      204

Danske Bank A/S*

    49,860      861

DSV A/S*

    20,341      252

H. Lundbeck A/S

    3,138      60

Novo-Nordisk A/S, Class B

    49,967      2,716

Novozymes A/S, Class B

    5,062      411

Topdanmark A/S*

    1,633      191

TrygVesta A/S

    3,006      177

Vestas Wind Systems A/S*

    22,352      1,607

William Demant Holding A/S*

    2,589      134
         
        8,455
         

Finland - 1.3%

      

Elisa OYJ

    14,605      241

Fortum OYJ

    49,128      1,121

Kesko OYJ, Class B

    7,257      192

Kone OYJ, Class B

    16,853      518

Metso OYJ

    14,004      262

Neste Oil OYJ

    14,534      202

Nokia OYJ

    417,233      6,089

Nokian Renkaat OYJ

    11,649      220

Orion OYJ, Class B

    9,541      150

Outokumpu OYJ

    13,584      235

Pohjola Bank PLC

    16,846      135

Rautaruukki OYJ

    9,238      185

Sampo OYJ, Class A

    46,118      870

Sanoma OYJ

    8,226      128

Stora Enso OYJ (Registered)*

    67,003      354

UPM-Kymmene OYJ

    57,548      501

Wartsila OYJ

    9,701      313
         
        11,716
         

France - 9.6%

      

Accor S.A.

    15,690      624

Aeroports de Paris

    3,632      267

Air France-KLM

    15,555      199

Air Liquide S.A.

    27,212      2,492

Alcatel-Lucent*

    254,395      641

Alstom S.A.

    22,730      1,345

Atos Origin S.A.*

    6,116      208

AXA S.A.

    171,997      3,252

BioMerieux

    1,123      99

BNP Paribas

    91,815      5,958

Bouygues S.A.

    25,188      947

Bureau Veritas S.A.

    5,453      269

Cap Gemini S.A.

    16,010      591

Carrefour S.A.

    69,640      2,979

Casino Guichard Perrachon S.A.

    5,584      377

Christian Dior S.A.

    6,580      492

Cie de Saint-Gobain

    41,354      1,383

Cie Generale d’Optique Essilor International S.A.

    22,334      1,066

CNP Assurances

    4,211      402

Compagnie Generale de Geophysique-Veritas*

    16,790      303

Compagnie Generale des Establissements Michelin, Class B

    15,916      910

Credit Agricole S.A.

    97,755      1,224

Danone

    59,644      2,950

Dassault Systemes S.A.

    7,537      333

EDF S.A.

    26,003      1,268

Eiffage S.A.

    1,280      75

Eramet

    619      162

Eurazeo

    2,922      122

Eutelsat Communications

    10,106      261

France Telecom S.A.

    201,162      4,571

GDF Suez

    130,549      4,877

GDF Suez (VVPR)*

    8,064      —  

Gecina S.A.

    2,558      158

Hermes International

    5,793      806

ICADE

    2,196      181

Iliad S.A.

    1,425      138

Imerys S.A.

    3,303      139

 

NORTHERN FUNDS QUARTERLY REPORT    2    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

France - 9.6% continued

      

Ipsen S.A.

    2,514    $ 110

JC Decaux S.A.*

    9,878      157

Klepierre

    11,465      296

Lafarge S.A.

    14,719      999

Lafarge S.A. (New)*

    7,188      474

Lagardere S.C.A.

    13,062      435

Legrand S.A.

    7,748      169

L’Oreal S.A.

    26,493      1,984

LVMH Moet Hennessy Louis Vuitton S.A.

    26,890      2,058

M6-Metropole Television

    4,527      86

Natixis*

    120,503      233

Neopost S.A.

    3,652      328

PagesJaunes Groupe S.A.

    13,903      135

Pernod-Ricard S.A.

    21,453      1,354

Peugeot S.A.*

    17,606      464

PPR

    8,550      700

Publicis Groupe

    12,910      394

Renault S.A.*

    20,331      751

Safran S.A.

    23,888      316

Sanofi-Aventis S.A.

    115,525      6,794

Schneider Electric S.A.

    26,233      2,006

SCOR S.E.

    20,246      416

SES S.A.

    31,871      609

Societe BIC S.A.

    3,018      173

Societe Des Autoroutes Paris-Rhin-Rhone

    2,367      161

Societe Generale

    50,998      2,783

Societe Television Francaise 1

    15,422      174

Sodexo

    10,688      550

Suez Environnement S.A.

    31,848      559

Technip S.A.

    11,683      574

Thales S.A.

    10,446      467

Total S.A.

    234,320      12,692

Unibail-Rodamco S.E.

    9,204      1,374

Vallourec S.A.

    6,197      753

Veolia Environment

    41,839      1,236

Vinci S.A.

    46,378      2,082

Vivendi S.A.

    128,455      3,077
         
        89,992
         

Germany - 7.2%

      

Adidas A.G.

    21,242      809

Allianz S.E. (Registered)

    49,732      4,599

BASF S.E.

    101,333      4,042

Bayer A.G.

    83,903      4,505

Bayerische Motoren Werke A.G.

    36,776      1,389

Beiersdorf A.G.

    9,762      460

Celesio A.G.

    10,439      240

Commerzbank A.G.*

    77,807      484

Daimler A.G. (Registered)

    98,996      3,582

Deutsche Bank A.G. (Registered)

    61,337      3,733

Deutsche Boerse A.G.

    21,582      1,677

Deutsche Lufthansa A.G. (Registered)

    25,917      326

Deutsche Post A.G. (Registered)

    93,645      1,224

Deutsche Postbank A.G.*

    10,049      256

Deutsche Telekom A.G. (Registered)

    311,185      3,678

E.ON A.G.

    208,669      7,407

Fraport A.G. Frankfurt Airport Services Worldwide

    4,543      195

Fresenius Medical Care A.G. & Co. KGaA

    20,972      936

Fresenius S.E.

    2,237      105

GEA Group A.G.

    17,018      258

Hamburger Hafen und Logistik A.G.

    1,260      49

Hannover Rueckversicherung A.G. (Registered)*

    7,298      270

Henkel A.G. & Co. KGaA

    14,961      403

Hochtief A.G.

    4,761      241

K+S A.G.

    16,358      922

Linde A.G.

    16,646      1,369

MAN S.E.

    11,606      714

Merck KGaA

    7,094      723

Metro A.G.

    12,452      595

Muenchener Rueckversicherungs A.G. (Registered)

    22,657      3,064

Puma A.G. Rudolf Dassler Sport A.G.

    623      137

RWE A.G.

    45,964      3,629

Salzgitter A.G.

    4,703      414

SAP A.G.

    94,187      3,797

Siemens A.G. (Registered)

    90,318      6,253

Solarworld A.G.

    10,072      238

Suedzucker A.G.

    7,574      154

ThyssenKrupp A.G.

    37,861      943

TUI A.G.*

    18,452      136

United Internet A.G. (Registered)*

    12,129      142

Volkswagen A.G.

    9,705      3,285

Wacker Chemie A.G.

    1,147      132
         
        67,515
         

Greece - 0.5%

      

Alpha Bank A.E.*

    43,712      472

Coca Cola Hellenic Bottling Co. S.A.

    19,845      407

EFG Eurobank Ergasias S.A.*

    38,641      403

 

EQUITY INDEX FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Greece - 0.5% continued

      

Hellenic Petroleum S.A.

    13,254    $ 128

Hellenic Telecommunications Organization S.A.

    27,120      414

Marfin Investment Group S.A.*

    69,720      297

National Bank of Greece S.A.*

    54,967      1,506

OPAP S.A.

    24,510      651

Piraeus Bank S.A.*

    34,340      338

Public Power Corp. S.A.*

    13,160      271

Titan Cement Co. S.A.

    6,667      176
         
        5,063
         

Hong Kong - 2.4%

      

ASM Pacific Technology Ltd.

    20,000      103

Bank of East Asia Ltd.

    161,720      493

BOC Hong Kong Holdings Ltd.

    418,000      740

Cathay Pacific Airways Ltd.

    188,000      258

Cheung Kong Holdings Ltd.

    152,000      1,743

Cheung Kong Infrastructure Holdings Ltd.

    45,000      158

CLP Holdings Ltd.

    224,501      1,489

Esprit Holdings Ltd.

    122,000      679

Foxconn International Holdings Ltd.*

    275,000      183

Genting Singapore PLC*

    340,984      160

Hang Lung Group Ltd.

    89,000      418

Hang Lung Properties Ltd.

    227,000      749

Hang Seng Bank Ltd.

    84,600      1,201

Henderson Land Development Co. Ltd.

    119,000      681

Hong Kong & China Gas Co. Ltd.

    438,890      922

Hong Kong Electric Holdings Co. Ltd.

    152,000      846

Hong Kong Exchanges and Clearing Ltd.

    112,000      1,738

Hopewell Holdings Ltd.

    87,000      272

Hutchison Whampoa Ltd.

    234,000      1,526

Hysan Development Co. Ltd.

    76,267      196

Kerry Properties Ltd.

    90,199      401

Li & Fung Ltd.

    238,800      638

Lifestyle International Holdings Ltd.*

    40,000      55

Link REIT (The)

    266,000      567

Mongolia Energy Co. Ltd.*

    343,000      128

MTR Corp.

    160,578      481

New World Development Ltd.

    306,139      553

Noble Group Ltd.

    146,400      183

NWS Holdings Ltd.

    63,000      113

Orient Overseas International Ltd.

    15,700      67

PCCW Ltd.

    240,000      63

Shangri-La Asia Ltd.

    168,000      251

Sino Land Co.

    224,038      368

Sun Hung Kai Properties Ltd.

    156,000      1,942

Swire Pacific Ltd., Class A

    84,500      851

Television Broadcasts Ltd.

    32,000      129

Wharf Holdings Ltd.

    159,000      672

Wheelock & Co. Ltd.

    24,000      62

Wing Hang Bank Ltd.

    24,000      212

Yue Yuen Industrial Holdings Ltd.

    90,000      212
         
        22,503
         

Ireland - 0.4%

      

Anglo Irish Bank Corp. PLC*

    93,434      —  

CRH PLC

    75,127      1,722

Elan Corp. PLC*

    54,940      368

Experian PLC

    112,552      844

Kerry Group PLC, Class A

    16,419      375

Ryanair Holdings PLC ADR*

    5,370      152
         
        3,461
         

Italy - 3.5%

      

A2A S.p.A.

    144,733      265

ACEA S.p.A.

    3,276      40

Alleanza Assicurazioni S.p.A.

    48,990      337

Assicurazioni Generali S.p.A.

    116,932      2,440

Atlantia S.p.A.

    28,274      572

Autogrill S.p.A.

    13,187      112

Banca Carige S.p.A.

    70,913      195

Banca Monte dei Paschi di Siena S.p.A.

    249,090      402

Banca Popolare di Milano Scarl

    44,699      268

Banco Popolare Scarl*

    70,306      525

Enel S.p.A.

    746,766      3,638

ENI S.p.A.

    285,787      6,780

Exor S.p.A.

    7,946      115

Fiat S.p.A.*

    84,913      861

Finmeccanica S.p.A.

    45,712      645

Fondiaria-Sai S.p.A.

    9,219      150

Intesa Sanpaolo S.p.A.*

    845,462      2,741

Intesa Sanpaolo S.p.A. (RSP)

    102,027      251

Italcementi S.p.A.

    10,646      122

Lottomatica S.p.A.

    5,711      110

Luxottica Group S.p.A.*

    13,136      273

Mediaset S.p.A.

    77,799      438

Mediobanca S.p.A.

    49,510      595

Mediolanum S.p.A.

    26,828      144

Parmalat S.p.A.

    185,674      449

 

NORTHERN FUNDS QUARTERLY REPORT    4    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Italy - 3.5% continued

      

Pirelli & C. S.p.A.*

    427,339    $ 151

Prysmian S.p.A.

    10,900      164

Saipem S.p.A.

    29,063      709

Saras S.p.A.

    15,421      44

Snam Rete Gas S.p.A.

    164,650      724

Telecom Italia S.p.A.

    1,101,616      1,526

Telecom Italia S.p.A. (RSP)

    661,492      650

Tenaris S.A.

    52,857      715

Terna S.p.A.

    140,848      470

UniCredit S.p.A.*

    1,575,939      4,038

Unione di Banche Italiane SCPA

    66,232      865

Unipol Gruppo Finanziario S.p.A.*

    23,917      28
         
        32,552
         

Japan - 23.5%

      

77 Bank (The) Ltd.

    38,000      220

ABC-Mart, Inc.

    2,800      72

Acom Co. Ltd.

    5,250      131

Advantest Corp.

    18,100      326

Aeon Co. Ltd.

    70,300      692

Aeon Credit Service Co. Ltd.

    9,100      118

Aeon Mall Co. Ltd.

    2,200      42

Aioi Insurance Co. Ltd.

    56,000      255

Aisin Seiki Co. Ltd.

    21,000      454

Ajinomoto Co., Inc.

    75,000      593

Alfresa Holdings Corp.

    3,100      143

All Nippon Airways Co. Ltd.

    75,000      262

Amada Co. Ltd.

    39,000      241

Asahi Breweries Ltd.

    42,800      615

Asahi Glass Co. Ltd.

    111,000      886

Asahi Kasei Corp.

    141,000      715

Asics Corp.

    20,000      182

Astellas Pharma, Inc.

    50,200      1,773

Bank of Kyoto (The) Ltd.

    34,000      314

Bank of Yokohama (The) Ltd.

    135,000      719

Benesse Corp.

    8,600      344

Bridgestone Corp.

    67,500      1,054

Brother Industries Ltd.

    24,000      212

Canon Marketing Japan, Inc.

    9,700      135

Canon, Inc.

    117,100      3,811

Casio Computer Co. Ltd.

    27,800      247

Central Japan Railway Co.

    174      1,069

Chiba Bank (The) Ltd.

    84,000      547

Chubu Electric Power Co., Inc.

    72,700      1,681

Chugai Pharmaceutical Co. Ltd.

    24,555      468

Chugoku Bank (The) Ltd.

    19,000      263

Chugoku Electric Power (The) Co., Inc.

    31,400      656

Chuo Mitsui Trust Holdings, Inc.*

    109,000      414

Citizen Holdings Co. Ltd.

    35,600      182

Coca-Cola West Co. Ltd.

    6,200      119

Cosmo Oil Co. Ltd.

    64,000      217

Credit Saison Co. Ltd.

    19,300      244

Dai Nippon Printing Co. Ltd.

    61,000      834

Daicel Chemical Industries Ltd.

    30,000      181

Daido Steel Co. Ltd.

    31,000      126

Daihatsu Motor Co. Ltd.

    19,000      176

Daiichi Sankyo Co. Ltd.

    73,900      1,322

Daikin Industries Ltd.

    25,700      822

Daito Trust Construction Co. Ltd.

    9,100      427

Daiwa House Industry Co. Ltd.

    56,000      600

Daiwa Securities Group, Inc.

    139,000      822

Denki Kagaku Kogyo KK

    53,000      147

Denso Corp.

    53,800      1,371

Dentsu, Inc.

    19,218      402

DIC Corp.

    85,000      133

Dowa Holdings Co. Ltd.

    29,000      120

East Japan Railway Co.

    37,322      2,247

Eisai Co. Ltd.

    27,700      986

Electric Power Development Co. Ltd.

    14,600      414

Elpida Memory, Inc.*

    15,300      164

FamilyMart Co. Ltd.

    6,400      201

Fanuc Ltd.

    21,000      1,676

Fast Retailing Co. Ltd.

    5,200      677

Fuji Electric Holdings Co. Ltd.

    74,000      122

Fuji Heavy Industries Ltd.

    70,000      282

Fuji Media Holdings, Inc.

    64      96

FUJIFILM Holdings Corp.

    53,700      1,694

Fujitsu Ltd.

    206,000      1,116

Fukuoka Financial Group, Inc.

    94,000      419

Furukawa Electric (The) Co. Ltd.

    73,000      327

GS Yuasa Corp.

    33,000      290

Gunma Bank (The) Ltd.

    47,000      261

Hachijuni Bank (The) Ltd.

    47,523      268

Hakuhodo DY Holdings, Inc.

    2,970      160

Hankyu Hanshin Holdings, Inc.

    125,800      589

Hikari Tsushin, Inc.

    2,200      49

Hino Motors Ltd.

    25,000      77

Hirose Electric Co. Ltd.

    3,400      361

 

EQUITY INDEX FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Japan - 23.5% continued

      

Hiroshima Bank (The) Ltd.

    62,000    $ 258

Hisamitsu Pharmaceutical Co., Inc.

    8,000      249

Hitachi Chemical Co. Ltd.

    11,400      183

Hitachi Construction Machinery Co. Ltd.

    11,800      191

Hitachi High-Technologies Corp.

    8,000      136

Hitachi Ltd.

    373,000      1,155

Hitachi Metals Ltd.

    20,000      169

Hokkaido Electric Power Co., Inc.

    20,700      388

Hokuhoku Financial Group, Inc.

    148,000      370

Hokuriku Electric Power Co.

    20,800      475

Honda Motor Co. Ltd.

    181,300      4,964

Hoya Corp.

    45,700      915

Ibiden Co. Ltd.

    14,500      405

Idemitsu Kosan Co. Ltd.

    2,600      222

IHI Corp.*

    145,000      249

INPEX Corp.

    91      725

Isetan Mitsukoshi Holdings Ltd.

    39,800      404

Isuzu Motors Ltd.

    130,000      208

Ito En Ltd.

    7,600      108

Itochu Corp.

    167,000      1,153

Itochu Techno-Solutions Corp.

    3,700      110

Iyo Bank (The) Ltd.

    29,000      296

J Front Retailing Co. Ltd.

    53,200      253

Jafco Co. Ltd.

    3,600      120

Japan Airlines Corp.*

    109,000      210

Japan Petroleum Exploration Co.

    2,000      110

Japan Prime Realty Investment Corp.

    82      177

Japan Real Estate Investment Corp.

    49      407

Japan Retail Fund Investment Corp.

    39      180

Japan Steel Works (The) Ltd.

    38,000      467

Japan Tobacco, Inc.

    494      1,540

JFE Holdings, Inc.

    53,900      1,800

JGC Corp.

    23,000      370

Joyo Bank (The) Ltd.

    73,000      371

JS Group Corp.

    28,800      443

JSR Corp.

    19,700      336

JTEKT Corp.

    21,200      214

Jupiter Telecommunications Co. Ltd.

    281      213

Kajima Corp.

    93,000      289

Kamigumi Co. Ltd.

    31,000      261

Kaneka Corp.

    33,000      233

Kansai Electric Power Co., Inc.

    83,800      1,849

Kansai Paint Co. Ltd.

    24,000      172

Kao Corp.

    59,000      1,286

Kawasaki Heavy Industries Ltd.

    156,000      428

Kawasaki Kisen Kaisha Ltd.

    70,000      287

KDDI Corp.

    320      1,697

Keihin Electric Express Railway Co. Ltd.

    47,000      364

Keio Corp.

    63,000      366

Keisei Electric Railway Co. Ltd.

    29,000      173

Keyence Corp.

    4,560      928

Kikkoman Corp.

    19,000      190

Kinden Corp.

    10,000      88

Kintetsu Corp.

    178,000      784

Kirin Holdings Co. Ltd.

    92,000      1,284

Kobe Steel Ltd.

    273,000      505

Komatsu Ltd.

    105,000      1,611

Konami Corp.

    10,300      197

Konica Minolta Holdings, Inc.

    54,000      561

Kubota Corp.

    120,000      986

Kuraray Co. Ltd.

    39,000      432

Kurita Water Industries Ltd.

    12,400      399

Kyocera Corp.

    18,000      1,350

Kyowa Hakko Kirin Co. Ltd.

    29,000      327

Kyushu Electric Power Co., Inc.

    41,600      895

Lawson, Inc.

    7,100      312

Leopalace21 Corp.

    16,700      148

Mabuchi Motor Co. Ltd.

    2,200      106

Makita Corp.

    12,600      303

Marubeni Corp.

    181,000      800

Marui Group Co. Ltd.*

    29,400      206

Maruichi Steel Tube Ltd.

    3,800      72

Mazda Motor Corp.

    101,000      256

McDonald’s Holdings Co. Japan Ltd.

    5,400      100

Mediceo Paltac Holdings Co. Ltd.

    18,200      208

MEIJI Holdings Co. Ltd.*

    7,212      290

Minebea Co. Ltd.

    49,000      207

Mitsubishi Chemical Holdings Corp.

    132,000      557

Mitsubishi Corp.

    148,900      2,735

Mitsubishi Electric Corp.

    214,000      1,347

Mitsubishi Estate Co. Ltd.

    129,000      2,137

Mitsubishi Gas Chemical Co., Inc.

    42,000      228

Mitsubishi Heavy Industries Ltd.

    336,000      1,386

Mitsubishi Logistics Corp.

    6,000      66

Mitsubishi Materials Corp.

    120,000      373

Mitsubishi Motors Corp.*

    398,000      743

Mitsubishi Rayon Co. Ltd.

    56,000      162

Mitsubishi Tanabe Pharma Corp.

    27,000      310

 

NORTHERN FUNDS QUARTERLY REPORT    6    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Japan - 23.5% continued

      

Mitsubishi UFJ Financial Group, Inc.

    1,021,665    $ 6,280

Mitsubishi UFJ Lease & Finance Co. Ltd.

    7,480      242

Mitsui & Co. Ltd.

    190,000      2,238

Mitsui Chemicals, Inc.

    65,000      207

Mitsui Engineering & Shipbuilding Co. Ltd.

    84,000      197

Mitsui Fudosan Co. Ltd.

    92,000      1,594

Mitsui Mining & Smelting Co. Ltd.*

    70,000      180

Mitsui O.S.K. Lines Ltd.

    129,000      832

Mitsui Sumitomo Insurance Group Holdings, Inc.

    46,000      1,200

Mitsumi Electric Co. Ltd.

    9,500      202

Mizuho Financial Group, Inc.

    1,043,053      2,426

Mizuho Securities Co. Ltd.

    65,000      202

Mizuho Trust & Banking Co. Ltd.*

    177,000      228

Murata Manufacturing Co. Ltd.

    23,700      1,005

Namco Bandai Holdings, Inc.

    25,100      275

NEC Corp.*

    212,000      828

NGK Insulators Ltd.

    29,000      589

NGK Spark Plug Co. Ltd.

    18,000      171

NHK Spring Co. Ltd.

    17,000      114

Nidec Corp.

    11,900      719

Nikon Corp.

    36,000      619

Nintendo Co. Ltd.

    10,900      3,000

Nippon Building Fund, Inc.

    57      488

Nippon Electric Glass Co. Ltd.

    39,500      440

Nippon Express Co. Ltd.

    96,000      435

Nippon Meat Packers, Inc.

    21,000      265

Nippon Mining Holdings, Inc.

    97,000      501

Nippon Oil Corp.

    137,000      806

Nippon Paper Group, Inc.

    9,858      255

Nippon Sheet Glass Co. Ltd.

    76,000      220

Nippon Steel Corp.

    560,000      2,136

Nippon Telegraph & Telephone Corp.

    57,491      2,339

Nippon Yusen Kabushiki Kaisha

    125,000      536

Nipponkoa Insurance Co. Ltd.

    74,000      429

Nishi-Nippon City Bank (The) Ltd.

    85,000      214

Nissan Chemical Industries Ltd.

    15,000      168

Nissan Motor Co. Ltd.

    275,200      1,661

Nisshin Seifun Group, Inc.

    21,000      249

Nisshin Steel Co. Ltd.

    79,000      176

Nisshinbo Holdings, Inc.

    17,000      192

Nissin Foods Holdings Co. Ltd.

    7,700      233

Nitori Co. Ltd.

    4,200      298

Nitto Denko Corp.

    18,100      548

NOK Corp.

    12,700      147

Nomura Holdings, Inc.

    276,200      2,314

Nomura Real Estate Holdings, Inc.

    12,400      213

Nomura Real Estate Office Fund, Inc.

    33      210

Nomura Research Institute Ltd.

    11,100      246

NSK Ltd.

    51,000      257

NTN Corp.

    44,000      175

NTT Data Corp.

    139      448

NTT DoCoMo, Inc.

    1,724      2,518

NTT Urban Development Corp.

    155      149

Obayashi Corp.

    75,000      367

Obic Co. Ltd.

    760      123

Odakyu Electric Railway Co. Ltd.

    69,000      590

OJI Paper Co. Ltd.

    93,000      399

Olympus Corp.

    24,000      564

Omron Corp.

    22,300      321

Ono Pharmaceutical Co. Ltd.

    9,300      411

Onward Holdings Co. Ltd.*

    16,000      103

Oracle Corp. Japan

    4,200      154

Oriental Land Co. Ltd.

    6,000      402

ORIX Corp.

    9,930      586

Osaka Gas Co. Ltd.

    219,000      699

OSAKA Titanium Technologies Co.

    2,100      77

Otsuka Corp.

    2,300      122

Panasonic Corp.

    215,000      2,884

Panasonic Electric Works Co. Ltd.

    41,000      387

Promise Co. Ltd.

    9,100      116

Rakuten, Inc.

    757      455

Resona Holdings, Inc.

    56,310      789

Ricoh Co. Ltd.

    73,000      935

Rohm Co. Ltd.

    11,100      806

Sankyo Co. Ltd.

    5,900      315

Santen Pharmaceutical Co. Ltd.

    9,000      274

Sanyo Electric Co. Ltd.*

    190,000      491

Sapporo Hokuyo Holdings, Inc.*

    42,000      120

Sapporo Holdings Ltd.

    33,000      188

SBI Holdings, Inc.

    1,940      393

Secom Co. Ltd.

    23,200      941

Sega Sammy Holdings, Inc.

    22,100      279

Seiko Epson Corp.

    15,300      248

Sekisui Chemical Co. Ltd.

    47,000      294

Sekisui House Ltd.

    56,000      566

Seven & I Holdings Co. Ltd.

    84,600      1,985

Sharp Corp.

    110,000      1,135

Shikoku Electric Power Co., Inc.

    20,500      612

 

EQUITY INDEX FUNDS    7    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Japan - 23.5% continued

      

Shimadzu Corp.

    29,000    $ 232

Shimamura Co. Ltd.

    2,700      214

Shimano, Inc.

    7,700      294

Shimizu Corp.

    65,000      282

Shin-Etsu Chemical Co. Ltd.

    45,400      2,097

Shinko Electric Industries Co. Ltd.

    6,900      85

Shinsei Bank Ltd.*

    123,000      196

Shionogi & Co. Ltd.

    34,000      657

Shiseido Co. Ltd.

    39,000      638

Shizuoka Bank (The) Ltd.

    68,000      672

Showa Denko KK

    130,000      232

Showa Shell Sekiyu KK

    22,700      239

SMC Corp. of Japan

    5,900      632

Softbank Corp.

    83,100      1,614

Sojitz Corp.

    135,400      296

Sompo Japan Insurance, Inc.

    101,000      671

Sony Corp.

    110,300      2,849

Sony Financial Holdings, Inc.

    107      295

Square Enix Holdings Co. Ltd.

    7,700      180

Stanley Electric Co. Ltd.

    16,200      326

Sumco Corp.

    13,100      185

Sumitomo Chemical Co. Ltd.

    173,000      775

Sumitomo Corp.

    124,600      1,260

Sumitomo Electric Industries Ltd.

    82,800      928

Sumitomo Heavy Industries Ltd.

    63,000      279

Sumitomo Metal Industries Ltd.

    369,000      975

Sumitomo Metal Mining Co. Ltd.

    57,000      802

Sumitomo Mitsui Financial Group, Inc.

    99,032      4,005

Sumitomo Realty & Development Co. Ltd.

    43,000      782

Sumitomo Rubber Industries, Inc.

    19,600      157

Sumitomo Trust & Banking (The) Co. Ltd.

    156,000      840

Suruga Bank (The) Ltd.

    27,000      257

Suzuken Co. Ltd.

    7,800      226

Suzuki Motor Corp.

    39,000      872

T&D Holdings, Inc.

    25,450      726

Taiheiyo Cement Corp.

    94,000      161

Taisei Corp.

    105,000      253

Taisho Pharmaceutical Co. Ltd.

    16,000      303

Taiyo Nippon Sanso Corp.

    31,000      295

Takashimaya Co. Ltd.

    34,000      267

Takeda Pharmaceutical Co. Ltd.

    82,300      3,198

TDK Corp.

    12,800      598

Teijin Ltd.

    107,000      344

Terumo Corp.

    18,500      814

THK Co. Ltd.

    13,200      197

Tobu Railway Co. Ltd.

    90,000      529

Toho Co. Ltd. of Tokyo

    13,500      220

Toho Gas Co. Ltd.

    50,000      203

Tohoku Electric Power Co., Inc.

    47,300      989

Tokio Marine Holdings, Inc.

    80,100      2,200

Tokuyama Corp.

    26,000      190

Tokyo Broadcasting System, Inc.

    2,000      31

Tokyo Electric Power Co., Inc.

    133,600      3,434

Tokyo Electron Ltd.

    18,800      903

Tokyo Gas Co. Ltd.

    253,000      904

Tokyo Steel Manufacturing Co. Ltd.

    11,100      135

Tokyo Tatemono Co. Ltd.

    35,000      194

Tokyu Corp.

    125,000      630

Tokyu Land Corp.

    51,000      230

TonenGeneral Sekiyu KK

    31,000      315

Toppan Printing Co. Ltd.

    63,000      633

Toray Industries, Inc.

    150,000      762

Toshiba Corp.

    431,000      1,551

Tosoh Corp.

    56,000      158

Toto Ltd.

    29,000      202

Toyo Seikan Kaisha Ltd.

    17,400      367

Toyo Suisan Kaisha Ltd.

    10,000      206

Toyoda Gosei Co. Ltd.

    7,300      196

Toyota Boshoku Corp.

    9,500      141

Toyota Industries Corp.

    19,800      491

Toyota Motor Corp.

    302,800      11,447

Toyota Tsusho Corp.

    23,300      344

Trend Micro, Inc.

    12,000      382

Tsumura & Co.

    8,000      249

Ube Industries Ltd.

    111,000      309

UniCharm Corp.

    4,500      344

UNY Co. Ltd.

    24,000      204

Ushio, Inc.

    14,400      230

USS Co. Ltd.

    2,940      151

West Japan Railway Co.

    191      631

Yahoo! Japan Corp.

    1,641      522

Yakult Honsha Co. Ltd.

    11,100      211

Yamada Denki Co. Ltd.

    9,530      554

Yamaguchi Financial Group, Inc.

    26,000      343

Yamaha Corp.

    19,100      237

Yamaha Motor Co. Ltd.

    23,600      261

Yamato Holdings Co. Ltd.

    44,000      585

Yamato Kogyo Co. Ltd.

    5,100      150

 

NORTHERN FUNDS QUARTERLY REPORT    8    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Japan - 23.5% continued

      

Yamazaki Baking Co. Ltd.

    9,000    $ 102

Yaskawa Electric Corp.

    24,000      159

Yokogawa Electric Corp.

    26,800      179
         
        219,266
         

Netherlands - 4.6%

      

Aegon N.V.

    155,919      959

Akzo Nobel N.V.

    25,430      1,119

Arcelormittal

    94,239      3,095

ASML Holding N.V.*

    47,732      1,035

Corio N.V.

    5,331      260

European Aeronautic Defence & Space

      

Co. N.V.

    46,497      754

Fugro N.V. - CVA

    7,148      297

Heineken Holding N.V.

    12,454      396

Heineken N.V.

    26,892      999

ING Groep N.V. - CVA

    215,150      2,166

James Hardie Industries N.V.*

    52,064      175

Koninklijke Ahold N.V.

    130,835      1,503

Koninklijke Boskalis Westminster N.V.

    6,366      144

Koninklijke DSM N.V.

    17,109      536

Koninklijke KPN N.V.

    188,187      2,593

Koninklijke Philips Electronics N.V.

    107,622      1,990

Qiagen N.V.*

    21,723      403

Randstad Holdings N.V.*

    11,167      310

Reed Elsevier N.V.

    72,518      800

Royal Dutch Shell PLC, Class A (London Exchange)

    389,211      9,748

Royal Dutch Shell PLC, Class B (London Exchange)

    295,921      7,471

SBM Offshore N.V.

    17,804      305

TNT N.V.

    40,508      789

Unilever N.V. (CVA)

    178,816      4,316

Wolters Kluwer N.V.

    30,185      528
         
        42,691
         

New Zealand - 0.1%

      

Auckland International Airport Ltd.

    104,990      109

Contact Energy Ltd.

    39,375      148

Fletcher Building Ltd.

    58,566      248

Sky City Entertainment Group Ltd.

    51,077      88

Telecom Corp. of New Zealand Ltd.

    210,570      370
         
        963
         

Norway - 0.7%

      

DnB NOR ASA*

    80,400      616

Norsk Hydro ASA*

    79,050      408

Orkla ASA

    88,850      647

Renewable Energy Corp. A/S*

    18,150      142

Seadrill Ltd.

    30,900      444

StatoilHydro ASA

    124,302      2,455

Telenor ASA*

    93,600      723

Yara International ASA

    20,800      582
         
        6,017
         

Portugal - 0.3%

      

Banco Comercial Portugues S.A. (Registered)

    270,344      275

Banco Espirito Santo S.A. (Registered)

    60,757      328

Brisa Auto-Estradas de Portugal S.A.

    19,759      142

Cimpor Cimentos de Portugal SGPS S.A.

    28,428      207

Energias de Portugal S.A.

    200,691      787

Galp Energia SGPS S.A., Class B

    17,759      250

Jeronimo Martins SGPS S.A.

    25,765      176

Portugal Telecom, SGPS, S.A. (Registered)

    64,494      632
         
        2,797
         

Singapore - 1.3%

      

Ascendas Real Estate Investment Trust

    144,213      158

CapitaLand Ltd.

    278,500      707

CapitaMall Trust

    264,600      255

City Developments Ltd.

    55,000      325

ComfortDelgro Corp. Ltd.

    272,000      240

Cosco Corp. Singapore Ltd.

    121,000      103

DBS Group Holdings Ltd.

    188,029      1,526

Fraser and Neave Ltd.

    106,563      315

Golden Agri-Resources Ltd.*

    680,160      178

Jardine Cycle & Carriage Ltd.

    10,576      140

Keppel Corp. Ltd.

    141,000      669

Neptune Orient Lines Ltd.

    53,000      54

Olam International Ltd.

    110,381      184

Oversea-Chinese Banking Corp.

    276,788      1,273

SembCorp Industries Ltd.

    108,600      226

SembCorp Marine Ltd.

    113,400      209

Singapore Airlines Ltd.

    58,067      532

Singapore Exchange Ltd.

    94,000      459

Singapore Press Holdings Ltd.

    179,000      390

Singapore Technologies Engineering Ltd.

    148,000      250

Singapore Telecommunications Ltd.

    891,600      1,840

United Overseas Bank Ltd.

    134,000      1,354

UOL Group Ltd.

    66,700      151

 

EQUITY INDEX FUNDS    9    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Singapore - 1.3% continued

      

Wilmar International Ltd.

    91,000    $ 314
         
        11,852
         

Spain - 4.4%

      

Abertis Infraestructuras S.A.

    30,905      582

Acciona S.A.

    2,927      360

Acerinox S.A.

    15,353      284

ACS Actividades de Construccion y Servicios S.A.

    15,740      798

Banco Bilbao Vizcaya Argentaria S.A.

    390,847      4,925

Banco de Sabadell SA

    106,011      663

Banco de Valencia S.A.

    7,924      77

Banco Popular Espanol S.A.

    84,587      740

Banco Santander S.A.

    895,248      10,804

Bankinter S.A.*

    35,541      420

Cintra Concesiones de Infraestructuras de Transporte S.A.

    28,812      179

Criteria Caixacorp S.A.

    92,287      427

EDP Renovaveis S.A.*

    24,136      248

Enagas

    19,817      390

Fomento de Construcciones y Contratas S.A.

    5,026      207

Gamesa Corp. Tecnologica S.A.

    20,195      383

Gas Natural SDG S.A.

    24,576      448

Gestevision Telecinco S.A.

    12,913      121

Grifols S.A.

    14,259      252

Grupo Ferrovial S.A.

    6,460      208

Iberdrola Renovables S.A.*

    95,774      438

Iberdrola S.A.

    387,544      3,152

Iberia Lineas Aereas de Espana*

    39,853      85

Inditex S.A.

    24,146      1,160

Indra Sistemas S.A.

    11,342      246

Mapfre S.A.

    80,716      263

Red Electrica Corp. S.A.

    11,977      542

Repsol YPF S.A.

    80,409      1,803

Sacyr Vallehermoso S.A.

    11,978      166

Telefonica S.A.

    464,824      10,540

Zardoya Otis S.A.

    14,372      300
         
        41,211
         

Sweden - 2.3%

      

Alfa Laval AB

    37,700      361

Assa Abloy AB, Class B

    34,200      477

Atlas Copco AB, Class A

    73,700      739

Atlas Copco AB, Class B

    44,900      407

Electrolux AB, Class B*

    26,300      369

Getinge AB, Class B

    23,041      302

Hennes & Mauritz AB, Class B

    56,100      2,805

Holmen AB, Class B

    3,500      76

Husqvarna AB, Class B*

    45,250      248

Investor AB, Class B

    49,999      773

Lundin Petroleum AB*

    26,400      205

Millicom International Cellular S.A. SDR*

    7,900      448

Nordea Bank AB

    353,895      2,808

Sandvik AB

    110,627      824

Scania AB, Class B

    37,000      368

Securitas AB, Class B

    35,368      301

Skandinaviska Enskilda Banken AB, Class A*

    171,947      756

Skanska AB, Class B

    43,500      487

SKF AB, Class B

    42,500      525

SSAB AB, Class A

    21,675      252

SSAB AB, Class B

    10,312      111

Svenska Cellulosa AB, Class B

    62,500      658

Svenska Handelsbanken AB, Class A

    53,719      1,015

Swedbank AB, Class A*

    40,400      235

Swedish Match AB

    28,000      455

Tele2 AB, Class B

    35,100      356

Telefonaktiebolaget LM Ericsson, Class B

    325,437      3,183

TeliaSonera AB

    248,492      1,307

Volvo AB, Class A

    48,300      299

Volvo AB, Class B

    119,400      740
         
        21,890
         

Switzerland - 7.6%

      

ABB Ltd. (Registered)*

    241,682      3,804

Actelion Ltd. (Registered)*

    11,069      580

Adecco S.A. (Registered)

    13,947      582

Aryzta A.G.*

    5,499      177

Aryzta A.G. (Dublin Exchange)*

    4,329      139

Baloise Holding A.G. (Registered)

    5,489      407

BKW FMB Energie A.G.

    1,788      132

Compagnie Financiere Richemont S.A., Class A

    57,773      1,204

Credit Suisse Group A.G. (Registered)

    123,537      5,640

Geberit A.G. (Registered)

    4,831      595

Givaudan S.A. (Registered)

    868      532

Holcim Ltd. (Registered)*

    22,973      1,309

Julius Baer Holding A.G. (Registered)

    23,369      911

Kuehne & Nagel International A.G. (Registered)

    6,122      481

Lindt & Spruengli A.G.

    76      142

 

NORTHERN FUNDS QUARTERLY REPORT    10    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

Switzerland - 7.6% continued

      

Lindt & Spruengli A.G. (Registered)

    14    $ 309

Logitech International S.A. (Registered)*

    20,813      290

Lonza Group A.G. (Registered)

    5,147      511

Nestle S.A. (Registered)

    399,401      15,074

Nobel Biocare Holdings A.G. (Registered)*

    13,757      302

Novartis A.G. (Registered)

    232,154      9,432

Pargesa Holding S.A.

    2,383      149

Roche Holding A.G. (Genusschein)

    77,121      10,493

Schindler Holding A.G.

    6,050      376

Schindler Holding A.G. (Registered)

    961      60

SGS S.A. (Registered)

    515      640

Sonova Holding A.G. (Registered)*

    5,118      417

STMicroelectronics N.V.

    74,944      562

Straumann Holding A.G. (Registered)

    697      127

Swatch Group A.G.

    3,496      562

Swatch Group A.G. (Registered)

    4,910      161

Swiss Life Holding (Registered)*

    3,454      300

Swiss Reinsurance (Registered)

    37,882      1,253

Swisscom A.G. (Registered)

    2,640      811

Syngenta A.G. (Registered)

    10,638      2,470

Synthes, Inc.

    6,704      649

UBS A.G. (Registered)*

    321,908      3,939

Xstrata PLC

    210,998      2,327

Zurich Financial Services A.G. (Registered)

    16,040      2,839
         
        70,688
         

United Kingdom - 18.1%

      

3i Group PLC

    105,766      423

Admiral Group PLC

    20,327      292

Amec PLC

    38,273      412

Anglo American PLC

    144,512      4,217

Antofagasta PLC

    43,287      420

Associated British Foods PLC

    39,106      491

AstraZeneca PLC

    158,909      6,998

Autonomy Corp. PLC*

    23,492      557

Aviva PLC

    291,738      1,649

BAE Systems PLC

    390,451      2,180

Balfour Beatty PLC

    54,191      276

Barclays PLC

    1,062,502      4,949

Berkeley Group Holdings PLC*

    10,745      143

BG Group PLC

    368,567      6,193

BHP Billiton PLC

    242,265      5,472

BP PLC

    2,057,029      16,278

British Airways PLC*

    63,317      130

British American Tobacco PLC

    219,133      6,054

British Land Co. PLC

    95,959      605

British Sky Broadcasting Group PLC

    125,067      938

BT Group PLC

    856,931      1,435

Bunzl PLC

    37,660      312

Burberry Group PLC

    47,537      332

Cable & Wireless PLC

    280,886      616

Cadbury PLC

    150,825      1,288

Cairn Energy PLC*

    15,112      584

Capita Group PLC

    68,218      804

Carnival PLC

    17,952      476

Carphone Warehouse Group PLC

    49,180      129

Centrica PLC

    565,318      2,077

Cobham PLC

    131,287      374

Compass Group PLC

    204,457      1,152

Diageo PLC

    274,375      3,940

Drax Group PLC

    37,563      272

Eurasian Natural Resources Corp.

    30,020      325

FirstGroup PLC

    55,758      329

Fresnillo PLC

    18,880      163

Friends Provident Group PLC

    263,459      286

G4S PLC

    139,130      478

GlaxoSmithKline PLC

    569,512      10,029

Hammerson PLC

    76,360      387

Home Retail Group PLC

    96,318      413

HSBC Holdings PLC

    1,888,587      15,679

ICAP PLC

    57,059      425

Imperial Tobacco Group PLC

    111,552      2,902

Intercontinental Hotels Group PLC

    28,214      290

International Power PLC

    166,719      655

Invensys PLC

    87,958      324

Investec PLC

    41,981      227

Johnson Matthey PLC

    23,565      447

Kazakhmys PLC

    23,493      245

Kingfisher PLC

    265,840      779

Ladbrokes PLC

    65,940      201

Land Securities Group PLC

    82,988      646

Legal & General Group PLC

    643,442      601

Liberty International PLC

    48,543      319

Lloyds Banking Group PLC

    1,803,766      2,076

London Stock Exchange Group PLC

    16,332      189

Lonmin PLC

    17,597      341

Man Group PLC

    191,160      877

Marks & Spencer Group PLC

    173,182      874

 

EQUITY INDEX FUNDS    11    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.9% continued

      

United Kingdom - 18.1% continued

      

National Grid PLC

    268,783    $ 2,424

Next PLC

    21,636      524

Old Mutual PLC

    579,229      771

Pearson PLC

    88,892      893

Prudential PLC

    274,092      1,865

Randgold Resources Ltd.

    8,535      549

Reckitt Benckiser Group PLC

    66,213      3,018

Reed Elsevier PLC

    122,054      910

Rexam PLC

    74,026      348

Rio Tinto PLC

    96,947      3,375

Rolls-Royce Group PLC*

    203,280      1,212

Royal Bank of Scotland Group PLC*

    1,871,490      1,190

RSA Insurance Group PLC

    365,548      725

SABMiller PLC

    100,133      2,039

Sage Group (The) PLC

    145,012      426

Sainsbury (J.) PLC

    124,061      641

Schroders PLC

    14,039      190

Scottish & Southern Energy PLC

    101,034      1,897

Segro PLC

    623,210      250

Serco Group PLC

    54,927      382

Severn Trent PLC

    25,897      467

Shire PLC

    61,494      848

Smith & Nephew PLC

    96,964      719

Smiths Group PLC

    43,054      498

Standard Chartered PLC

    208,148      3,921

Standard Life PLC

    239,073      732

Tesco PLC

    863,253      5,032

Thomas Cook Group PLC

    47,108      160

Thomson Reuters PLC

    18,899      539

Tomkins PLC

    96,777      237

TUI Travel PLC

    61,362      235

Tullow Oil PLC

    88,523      1,370

Unilever PLC

    140,886      3,306

United Utilities Group PLC

    75,424      618

Vedanta Resources PLC

    16,255      346

Vodafone Group PLC

    5,760,566      11,135

Whitbread PLC

    19,124      257

WM Morrison Supermarkets PLC

    230,942      900

Wolseley PLC*

    31,777      608

WPP PLC

    137,800      917
         
        169,449
         

Total Common Stocks

      
         

(Cost $1,020,166) (1)

         905,186

PREFERRED STOCKS - 0.3%

      

Germany - 0.3%

      

Bayerische Motoren Werke A.G.

    2,403      58

Fresenius S.E.

    9,134      493

Henkel A.G. & Co. KGaA

    19,557      611

Porsche Automobil Holding S.E.

    10,278      691

RWE A.G.

    4,412      294

Volkswagen A.G.

    11,871      831
         
        2,978
         

Total Preferred Stocks

      
         

(Cost $3,013) (1)

         2,978

RIGHTS - 0.1%

      

Fortis*

    274,692      —  

Givaudan S.A.*

    1      —  

Golden Agri-Resources Ltd.*

    115,627      16

Neptune Orient Lines Ltd.*

    39,750      5

Renewable Energy Corp. A/S*

    6,258      22

Rio Tinto Ltd.*

    16,944      288

Rio Tinto PLC*

    53,484      628

Unione di Banche Italiane SCPA*

    66,232      5

Zardoya Otis S.A.*

    14,360      15
         

Total Rights

      
         

(Cost $ — ) (1)

         979
     NUMBER
OF WARRANTS		     

WARRANTS - 0.0%

      

Dowa Mining Co. Ltd., Exp. 1/29/10, Strike 1.00 Yen (2) *

    30,000      6

Unione di Banche Italiane SCPA, Exp. 6/30/11, Strike 12.30 Euro*

    69,930      5
         

Total Warrants

      
         

(Cost $ — ) (1)

         11

 

NORTHERN FUNDS QUARTERLY REPORT    12    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT-TERM INVESTMENTS - 0.0%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 6    $ 6
         

Total Short-Term Investments

      
         

(Cost $6)

         6
         

Total Investments - 97.3%

      
         

(Cost $1,023,185)

         909,160

Other Assets less Liabilities - 2.7%

         25,615
         

NET ASSETS - 100.0%

       $ 934,775

 

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.
(2) Security has been deemed worthless by the Northern Trust Global Investments Valuation Committee.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the International Equity Index Fund had open futures contracts as follows:

 

TYPE

    NUMBER OF
CONTRACTS		    NOTIONAL
AMOUNT
(000S)		    CONTRACT
POSITION		    CONTRACT
EXP.		    UNREALIZED
GAIN (LOSS)
(000S)		  

DJ Euro Stoxx 50 (Euro)

    353    $ 11,875    Long    9/09    $ (61 ) 

FTSE 100 Index (British Pound)

    80      5,552    Long    9/09      (50 ) 

Hang Seng Index (Hong Kong Dollar)

    7      832    Long    7/09      8   

SPI 200 (Australian Dollar)

    30      2,357    Long    9/09      12   

TOPIX Index (Japanese Yen)

    38      3,647    Long    9/09      (7 ) 
                    

Total

                $ (98 ) 
                    

At June 30, 2009, the International Equity Index Fund’s investments were denominated in the following currencies :

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Australian Dollar

    7.3 % 

British Pound

    21.0   

Euro

    32.3   

Japanese Yen

    24.1   

Swiss Franc

    7.4   

All other currencies less than 5%

    7.9   
      

Total

    100.0 % 
      

At June 30, 2009, the industry sectors (unaudited) for the International Equity Index Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

    10.1 % 

Consumer Staples

    10.0   

Energy

    8.6   

Financials

    24.6   

Health Care

    8.3   

Industrials

    11.4   

Information Technology

    5.2   

Materials

    9.4   

Telecommunication Services

    6.0   

Utilities

    6.4   
      

Total

    100.0 % 
      

At June 30, 2009, the International Equity Index Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS TO DELIVER CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		   

IN EXCHANGE
FOR CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

British Pound

    547    U.S. Dollar    900    7/2/09    $ —     

Danish Kroner

    1,328    U.S. Dollar    250    7/2/09      —     

Euro

    3,566    U.S. Dollar    5,000    7/2/09      (2 ) 

Hong Kong Dollar

    5,425    U.S. Dollar    700    7/2/09      —     

Japanese Yen

    626,015    U.S. Dollar    6,500    7/2/09      2   

Singapore Dollar

    652    U.S. Dollar    450    7/2/09      —     

Swedish Krona

    5,428    U.S. Dollar    700    7/2/09      (4 ) 

Swiss Franc

    761    U.S. Dollar    700    7/2/09      —     

Australian Dollar

    974    U.S. Dollar    780    9/16/09      —     

Australian Dollar

    1,316    U.S. Dollar    1,030    9/16/09      (24 ) 

Australian Dollar

    234    U.S. Dollar    190    9/16/09      3   

 

EQUITY FUNDS    13    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND    continued

 

CONTRACTS TO DELIVER CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		   

IN EXCHANGE
FOR CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

Euro

    1,332    U.S. Dollar    1,870    9/16/09      2   

Euro

    3,197    U.S. Dollar    4,450    9/16/09      (35 ) 

Euro

    2,084    U.S. Dollar    2,910    9/16/09      (14 ) 

Euro

    227    U.S. Dollar    320    9/16/09      2   

British Pound

    1,389    U.S. Dollar    2,280    9/16/09      (5 ) 

British Pound

    163    U.S. Dollar    270    9/16/09      1   

British Pound

    545    U.S. Dollar    890    9/16/09      (7 ) 

British Pound

    266    U.S. Dollar    440    9/16/09      3   

Hong Kong Dollar

    4,864    U.S. Dollar    628    9/16/09      —     

Hong Kong Dollar

    12,935    U.S. Dollar    1,670    9/16/09      —     

Hong Kong Dollar

    1,007    U.S. Dollar    130    9/16/09      —     

Japanese Yen

    207,248    U.S. Dollar    2,120    9/16/09      (33 ) 

Japanese Yen

    230,668    U.S. Dollar    2,420    9/16/09      23   

Japanese Yen

    60,926    U.S. Dollar    630    9/16/09      (3 ) 

Japanese Yen

    142,893    U.S. Dollar    1,500    9/16/09      15   

Japanese Yen

    74,154    U.S. Dollar    760    9/16/09      (11 ) 

U.S. Dollar

    1,527    Australian Dollar    1,889    9/16/09      (14 ) 

U.S. Dollar

    300    Australian Dollar    380    9/16/09      4   

U.S. Dollar

    1,090    Australian Dollar    1,360    9/16/09      —     

U.S. Dollar

    5,260    British Pound    3,204    9/16/09      10   

U.S. Dollar

    1,226    British Pound    749    9/16/09      5   

U.S. Dollar

    660    British Pound    400    9/16/09      (2 ) 

U.S. Dollar

    13,881    Euro    9,950    9/16/09      75   

U.S. Dollar

    600    Euro    426    9/16/09      (2 ) 

U.S. Dollar

    500    Euro    355    9/16/09      (2 ) 

U.S. Dollar

    80    Hong Kong Dollar    620    9/16/09      —     

U.S. Dollar

    700    Hong Kong Dollar    5,422    9/16/09      —     

U.S. Dollar

    460    Hong Kong Dollar    3,562    9/16/09      —     

U.S. Dollar

    520    Hong Kong Dollar    4,028    9/16/09      —     

U.S. Dollar

    820    Hong Kong Dollar    6,351    9/16/09      —     

U.S. Dollar

    2,760    Japanese Yen    267,529    9/16/09      20   

U.S. Dollar

    270    Japanese Yen    25,714    9/16/09      (3 ) 

U.S. Dollar

    6,500    Japanese Yen    625,455    9/16/09      (2 ) 

U.S. Dollar

    911    Japanese Yen    89,393    9/16/09      18   
                    

Total

                $ 20   
                    

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,023,232   
        

Gross tax appreciation of investments

    $ 80,852   

Gross tax depreciation of investments

      (194,924 ) 
        

Net tax depreciation of investments

    $ (114,072 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the International Equity Index Fund’s investments, and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

           

Consumer Discretionary

    $ —        $ 89,948    $ —      $ 89,948   

Consumer Staples

      —          90,609      —        90,609   

Energy

      —          78,889      —        78,889   

Financials

      —          223,217      —        223,217   

Health Care

      —          75,544      —        75,544   

Industrials

      152        103,762      —        103,914   

Information Technology

      —          47,374      —        47,374   

Materials

      —          82,627      —        82,627   

Telecommunication Services

      —          54,867      —        54,867   

Utilities

      —          58,197      —        58,197   

Preferred Stock

           

Consumer Discretionary

      —          1,579      —        1,579   

Consumer Staples

      —          611      —        611   

Health Care

      —          494      —        494   

Utilities

      —          294      —        294   

Rights

           

Consumer Discretionary

      —          —        16      16   

Financials

      —          5      —        5   

Industrials

      —          42      —        42   

Materials

      —          628      288      916   

Warrants

           

Financials

      5        —        —        5   

Materials

      —          —        6      6   

Short-Term Investments

      —          6      —        6   
                              

Total Investments

    $ 157      $ 908,693    $ 310    $ 909,160   
                              

Other Financial Instruments*

    $ (98 )    $ 20      —      $ (78 ) 
                              

 

* Other financial instruments include futures and forwards, if applicable.

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

 

     INVESTMENTS
IN SECURITIES
(000S)

Balance as of 3/31/09

    $ 23

Realized gain (loss)

      —  

Change in unrealized appreciation/depreciation

      287

Net Purchases (Sales)

      —  

Transfers in and/or out of Level 3

      —  
      

Balance as of 6/30/09

    $ 310

The amount of change in total unrealized gain on investments in level 3 securities still held at June 30, 2009 was $1,000.

 

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.2%

      

Advertising - 0.2%

      

Harte-Hanks, Inc.

    12,800    $ 118

Lamar Advertising Co., Class A*

    25,700      393
         
        511
         

Aerospace/Defense - 0.6%

      

Alliant Techsystems, Inc.*

    11,189      921

BE Aerospace, Inc.*

    34,800      500
         
        1,421
         

Agriculture - 0.1%

      

Universal Corp. of Virginia

    8,561      283
         

Airlines - 0.3%

      

Airtran Holdings, Inc.*

    40,400      250

Alaska Air Group, Inc.*

    12,200      223

JetBlue Airways Corp.*

    70,850      302
         
        775
         

Apparel - 0.6%

      

Hanesbrands, Inc.*

    32,700      491

Timberland (The) Co., Class A*

    15,500      206

Under Armour, Inc., Class A*

    12,800      286

Warnaco Group (The), Inc.*

    15,800      512
         
        1,495
         

Auto Manufacturers - 0.1%

      

Oshkosh Corp.

    25,200      366
         

Auto Parts & Equipment - 0.5%

      

BorgWarner, Inc.

    40,100      1,369
         

Banks - 3.2%

      

Associated Banc-Corp

    43,982      550

BancorpSouth, Inc.

    24,600      505

Bank of Hawaii Corp.

    16,700      598

Cathay General Bancorp

    17,600      167

City National Corp. of California

    14,998      552

Commerce Bancshares, Inc.

    22,470      715

Cullen/Frost Bankers, Inc.

    20,700      955

FirstMerit Corp.

    27,804      472

Fulton Financial Corp.

    61,700      322

International Bancshares Corp.

    17,400      179

PacWest Bancorp

    8,800      116

SVB Financial Group*

    11,600      316

Synovus Financial Corp.

    94,100      281

TCF Financial Corp.

    39,300      526

Trustmark Corp.

    16,500      319

Valley National Bancorp

    49,550      580

Webster Financial Corp.

    18,772      151

Westamerica Bancorporation

    9,900      491

Wilmington Trust Corp.

    23,500      321
         
        8,116
         

Beverages - 0.5%

      

Hansen Natural Corp.*

    24,800      764

PepsiAmericas, Inc.

    19,500      523
         
        1,287
         

Biotechnology - 1.8%

      

Bio-Rad Laboratories, Inc., Class A*

    6,500      491

Charles River Laboratories International, Inc.*

    22,764      768

OSI Pharmaceuticals, Inc.*

    20,200      570

United Therapeutics Corp.*

    8,100      675

Vertex Pharmaceuticals, Inc.*

    59,800      2,131
         
        4,635
         

Building Materials - 0.7%

      

Lennox International, Inc.

    15,900      511

Louisiana-Pacific Corp.*

    32,700      112

Martin Marietta Materials, Inc.

    15,493      1,222
         
        1,845
         

Chemicals - 3.4%

      

Airgas, Inc.

    28,300      1,147

Albemarle Corp.

    31,300      800

Ashland, Inc.

    22,700      637

Cabot Corp.

    22,900      288

Cytec Industries, Inc.

    16,100      300

FMC Corp.

    25,200      1,192

Lubrizol Corp.

    23,600      1,116

Minerals Technologies, Inc.

    6,300      227

Olin Corp.

    26,400      314

RPM International, Inc.

    43,800      615

Sensient Technologies Corp.

    17,100      386

Terra Industries, Inc.

    34,500      836

Valspar Corp.

    34,200      770
         
        8,628
         

Coal - 0.4%

      

Arch Coal, Inc.

    49,600      762

Patriot Coal Corp.*

    22,100      141
         
        903
         

Commercial Services - 6.7%

      

Aaron’s, Inc.

    18,700      558

Alliance Data Systems Corp.*

    20,000      824

 

EQUITY INDEX FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.2% continued

      

Commercial Services - 6.7% continued

      

Brink’s Home Security Holdings, Inc.*

    14,300    $ 405

Career Education Corp.*

    25,700      640

Corinthian Colleges, Inc.*

    30,100      509

Corporate Executive Board (The) Co.

    12,100      251

Corrections Corp. of America*

    40,100      681

Deluxe Corp.

    17,400      223

FTI Consulting, Inc.*

    17,500      888

Gartner, Inc.*

    20,100      307

Global Payments, Inc.

    27,900      1,045

Hewitt Associates, Inc., Class A*

    28,600      852

ITT Educational Services, Inc.*

    10,900      1,097

Kelly Services, Inc., Class A

    8,900      97

Korn/Ferry International*

    14,600      155

Lender Processing Services, Inc.

    29,100      808

Manpower, Inc.

    27,200      1,152

MPS Group, Inc.*

    30,800      235

Navigant Consulting, Inc.*

    16,700      216

Pharmaceutical Product Development, Inc.

    41,000      952

Rent-A-Center, Inc.*

    23,100      412

Rollins, Inc.

    13,800      239

SAIC, Inc.*

    69,500      1,289

SEI Investments Co.

    45,800      826

Service Corp. International

    87,200      478

Sotheby’s

    22,800      322

Strayer Education, Inc.

    4,800      1,047

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

    80,000      —  

United Rentals, Inc.*

    20,667      134

Watson Wyatt Worldwide, Inc., Class A

    14,900      559
         
        17,201
         

Computers - 2.3%

      

Cadence Design Systems, Inc.*

    92,200      544

Diebold, Inc.

    22,600      596

DST Systems, Inc.*

    14,320      529

Henry (Jack) & Associates, Inc.

    28,500      591

Imation Corp.

    10,000      76

Mentor Graphics Corp.*

    29,900      164

Micros Systems, Inc.*

    27,500      696

NCR Corp.*

    55,000      651

Palm, Inc.*

    47,600      789

SRA International, Inc., Class A*

    14,300      251

Synopsys, Inc.*

    49,100      958
         
        5,845
         

Cosmetics/Personal Care - 0.3%

      

Alberto-Culver Co.

    29,000      738
         

Distribution/Wholesale - 1.3%

      

Fossil, Inc.*

    15,400      371

Ingram Micro, Inc., Class A*

    55,400      969

LKQ Corp.*

    48,000      790

Owens & Minor, Inc.

    14,100      618

Tech Data Corp.*

    17,500      572
         
        3,320
         

Diversified Financial Services - 1.9%

      

Affiliated Managers Group, Inc.*

    14,300      832

AmeriCredit Corp.*

    45,800      620

Eaton Vance Corp.

    40,200      1,075

Jefferies Group, Inc.*

    43,500      928

Raymond James Financial, Inc.

    34,100      587

Waddell & Reed Financial, Inc., Class A

    29,300      773
         
        4,815
         

Electric - 3.8%

      

Alliant Energy Corp.

    38,600      1,009

Black Hills Corp.

    13,300      306

Cleco Corp.

    21,200      475

DPL, Inc.

    39,300      910

Great Plains Energy, Inc.

    45,348      705

Hawaiian Electric Industries, Inc.

    31,800      606

IDACORP, Inc.

    15,900      416

MDU Resources Group, Inc.

    62,950      1,194

NSTAR

    37,300      1,198

NV Energy, Inc.

    81,700      881

OGE Energy Corp.

    32,300      915

PNM Resources, Inc.

    28,285      303

Westar Energy, Inc.

    38,100      715
         
        9,633
         

Electrical Components & Equipment - 1.2%

      

AMETEK, Inc.

    36,650      1,268

Energizer Holdings, Inc.*

    23,800      1,243

Hubbell, Inc., Class B

    19,400      622
         
        3,133
         

Electronics - 2.8%

      

Arrow Electronics, Inc.*

    40,900      869

Avnet, Inc.*

    51,500      1,083

Gentex Corp.

    48,000      557

Itron, Inc.*

    13,717      755

Mettler-Toledo International, Inc.*

    11,700      903

 

NORTHERN FUNDS QUARTERLY REPORT    2    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.2% continued

      

Electronics - 2.8% continued

      

National Instruments Corp.

    19,000    $ 428

Thomas & Betts Corp.*

    18,600      537

Trimble Navigation Ltd.*

    40,900      803

Varian, Inc.*

    10,200      402

Vishay Intertechnology, Inc.*

    65,200      443

Woodward Governor Co.

    18,700      370
         
        7,150
         

Engineering & Construction - 1.9%

      

Aecom Technology Corp.*

    31,200      998

Dycom Industries, Inc.*

    14,000      155

Granite Construction, Inc.

    11,200      373

KBR, Inc.

    55,600      1,025

Shaw Group (The), Inc.*

    29,000      795

URS Corp.*

    28,800      1,426
         
        4,772
         

Entertainment - 0.5%

      

DreamWorks Animation SKG, Inc., Class A*

    25,700      709

International Speedway Corp., Class A

    9,300      238

Scientific Games Corp., Class A*

    21,800      344
         
        1,291
         

Environmental Control - 0.5%

      

Clean Harbors, Inc.*

    6,900      372

Mine Safety Appliances Co.

    9,800      236

Waste Connections, Inc.*

    27,700      718
         
        1,326
         

Food - 1.5%

      

Corn Products International, Inc.

    26,000      697

Flowers Foods, Inc.

    27,300      596

Lancaster Colony Corp.

    6,700      295

Ralcorp Holdings, Inc.*

    19,700      1,200

Ruddick Corp.

    13,300      312

Smithfield Foods, Inc.*

    41,300      577

Tootsie Roll Industries, Inc.

    8,386      190
         
        3,867
         

Forest Products & Paper - 0.4%

      

Rayonier, Inc.

    27,050      983
         

Gas - 2.2%

      

AGL Resources, Inc.

    26,200      833

Energen Corp.

    24,300      969

National Fuel Gas Co.

    27,100      978

Southern Union Co.

    42,300      778

UGI Corp.

    37,300      951

Vectren Corp.

    27,500      644

WGL Holdings, Inc.

    17,700      567
         
        5,720
         

Hand/Machine Tools - 0.4%

      

Kennametal, Inc.

    25,500      489

Lincoln Electric Holdings, Inc.

    14,800      534
         
        1,023
         

Healthcare - Products - 4.6%

      

Affymetrix, Inc.*

    23,300      138

Beckman Coulter, Inc.

    21,912      1,252

Edwards Lifesciences Corp.*

    19,400      1,320

Gen-Probe, Inc.*

    18,200      782

Henry Schein, Inc.*

    31,100      1,491

Hill-Rom Holdings, Inc.

    20,600      334

Hologic, Inc.*

    88,512      1,259

IDEXX Laboratories, Inc.*

    20,300      938

Immucor, Inc.*

    24,600      338

Kinetic Concepts, Inc.*

    18,600      507

Masimo Corp.*

    16,000      386

ResMed, Inc.*

    26,000      1,059

STERIS Corp.

    20,500      535

Techne Corp.

    12,800      817

Thoratec Corp.*

    19,700      528
         
        11,684
         

Healthcare - Services - 2.2%

      

Community Health Systems, Inc.*

    31,800      803

Covance, Inc.*

    21,700      1,067

Health Management Associates, Inc., Class A*

    85,500      422

Health Net, Inc.*

    36,200      563

Kindred Healthcare, Inc.*

    10,700      132

LifePoint Hospitals, Inc.*

    18,200      478

Lincare Holdings, Inc.*

    24,100      567

Psychiatric Solutions, Inc.*

    19,600      446

Universal Health Services, Inc., Class B

    16,889      825

WellCare Health Plans, Inc.*

    14,800      274
         
        5,577
         

Home Builders - 1.0%

      

MDC Holdings, Inc.

    12,500      377

NVR, Inc.*

    2,025      1,017

Ryland Group, Inc.

    14,600      245

Thor Industries, Inc.

    11,700      215

 

EQUITY INDEX FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.2% continued

      

Home Builders - 1.0% continued

      

Toll Brothers, Inc.*

    45,100    $ 765
         
        2,619
         

Household Products/Wares - 1.0%

      

American Greetings Corp., Class A

    15,000      175

Blyth, Inc.

    2,075      68

Church & Dwight, Inc.

    24,400      1,325

Scotts Miracle-Gro (The) Co., Class A

    15,400      540

Tupperware Brands Corp.

    21,200      552
         
        2,660
         

Insurance - 4.5%

      

American Financial Group, Inc.

    25,600      552

Brown & Brown, Inc.

    39,300      783

Everest Re Group Ltd.

    21,300      1,524

Fidelity National Financial, Inc., Class A

    80,977      1,096

First American Corp.

    32,421      840

Gallagher (Arthur J.) & Co.

    34,200      730

Hanover Insurance Group (The), Inc.

    17,928      683

HCC Insurance Holdings, Inc.

    38,400      922

Horace Mann Educators Corp.

    14,000      140

Mercury General Corp.

    11,800      394

Old Republic International Corp.

    81,800      806

Protective Life Corp.

    29,200      334

Reinsurance Group of America, Inc.

    24,900      869

StanCorp Financial Group, Inc.

    17,141      492

Unitrin, Inc.

    16,200      195

W.R. Berkley Corp.

    47,675      1,024
         
        11,384
         

Internet - 2.0%

      

Avocent Corp.*

    16,200      226

Digital River, Inc.*

    12,912      469

Equinix, Inc.*

    13,000      946

F5 Networks, Inc.*

    27,100      937

NetFlix, Inc.*

    14,100      583

Priceline.com, Inc.*

    14,200      1,584

ValueClick, Inc.*

    30,300      319
         
        5,064
         

Investment Companies - 0.1%

      

Apollo Investment Corp.

    48,400      290
         

Iron/Steel - 1.3%

      

Carpenter Technology Corp.

    15,000      312

Cliffs Natural Resources, Inc.

    45,000      1,101

Reliance Steel & Aluminum Co.

    22,000      845

Steel Dynamics, Inc.

    64,500      950
         
        3,208
         

Leisure Time - 0.3%

      

Callaway Golf Co.

    23,100      117

Life Time Fitness, Inc.*

    11,900      238

WMS Industries, Inc.*

    16,800      530
         
        885
         

Lodging - 0.1%

      

Boyd Gaming Corp.*

    18,800      160
         

Machinery - Construction & Mining - 1.0%

      

Bucyrus International, Inc.

    26,000      743

Joy Global, Inc.

    35,450      1,266

Terex Corp.*

    36,900      445
         
        2,454
         

Machinery - Diversified - 1.9%

      

AGCO Corp.*

    31,700      922

Graco, Inc.

    20,800      458

IDEX Corp.

    27,400      673

Nordson Corp.

    11,100      429

Roper Industries, Inc.

    31,100      1,409

Wabtec Corp.

    16,600      534

Zebra Technologies Corp., Class A*

    20,600      487
         
        4,912
         

Media - 0.5%

      

FactSet Research Systems, Inc.

    14,600      728

Scholastic Corp.

    8,800      174

Wiley (John) & Sons, Inc., Class A

    14,500      482
         
        1,384
         

Metal Fabrication/Hardware - 0.7%

      

Commercial Metals Co.

    39,100      627

Timken (The) Co.

    29,000      495

Valmont Industries, Inc.

    6,000      433

Worthington Industries, Inc.

    21,200      271
         
        1,826
         

Miscellaneous Manufacturing - 2.7%

      

Aptargroup, Inc.

    23,100      780

Brink’s (The) Co.

    14,200      412

Carlisle Cos., Inc.

    21,400      514

Crane Co.

    15,700      350

Donaldson Co., Inc.

    26,400      915

Federal Signal Corp.

    15,400      118

 

NORTHERN FUNDS QUARTERLY REPORT    4    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.2% continued

      

Miscellaneous Manufacturing - 2.7% continued

      

Harsco Corp.

    27,500    $ 778

Matthews International Corp., Class A

    10,600      330

Pentair, Inc.

    33,700      863

SPX Corp.

    16,900      828

Teleflex, Inc.

    13,800      619

Trinity Industries, Inc.

    27,750      378
         
        6,885
         

Office Furnishings - 0.2%

      

Herman Miller, Inc.

    18,300      280

HNI Corp.

    15,600      282
         
        562
         

Oil & Gas - 4.1%

      

Bill Barrett Corp.*

    12,600      346

Cimarex Energy Co.

    29,000      822

Comstock Resources, Inc.*

    16,200      535

Encore Acquisition Co.*

    17,700      546

Forest Oil Corp.*

    38,100      568

Frontier Oil Corp.

    36,200      475

Helmerich & Payne, Inc.

    36,200      1,118

Mariner Energy, Inc.*

    35,000      411

Newfield Exploration Co.*

    45,800      1,496

Patterson-UTI Energy, Inc.

    53,300      685

Plains Exploration & Production Co.*

    42,027      1,150

Pride International, Inc.*

    59,600      1,494

Quicksilver Resources, Inc.*

    39,500      367

Unit Corp.*

    16,500      455
         
        10,468
         

Oil & Gas Services - 0.8%

      

Exterran Holdings, Inc.*

    21,600      347

Helix Energy Solutions Group, Inc.*

    33,300      362

Oceaneering International, Inc.*

    18,700      845

Superior Energy Services, Inc.*

    26,400      456
         
        2,010
         

Packaging & Containers - 0.9%

      

Greif, Inc., Class A

    11,700      517

Packaging Corp. of America

    35,400      574

Sonoco Products Co.

    34,100      817

Temple-Inland, Inc.

    37,000      485
         
        2,393
         

Pharmaceuticals - 2.1%

      

Endo Pharmaceuticals Holdings, Inc.*

    40,700      729

Medicis Pharmaceutical Corp., Class A

    19,300      315

NBTY, Inc.*

    18,700      526

Omnicare, Inc.

    35,700      920

Perrigo Co.

    27,000      750

Sepracor, Inc.*

    38,000      658

Valeant Pharmaceuticals International*

    28,600      736

VCA Antech, Inc.*

    29,000      774
         
        5,408
         

Pipelines - 0.4%

      

Oneok, Inc.

    36,100      1,065
         

Real Estate - 0.2%

      

Jones Lang LaSalle, Inc.

    14,200      465
         

Real Estate Investment Trusts - 5.4%

      

Alexandria Real Estate Equities, Inc.

    13,700      490

AMB Property Corp.

    50,000      941

BRE Properties, Inc.

    17,400      413

Camden Property Trust

    22,400      618

Corporate Office Properties Trust SBI of Maryland

    19,696      578

Cousins Properties, Inc.

    15,426      131

Duke Realty Corp.

    77,800      682

Equity One, Inc.

    11,446      152

Essex Property Trust, Inc.

    9,400      585

Federal Realty Investment Trust

    20,200      1,041

Highwoods Properties, Inc.

    24,400      546

Hospitality Properties Trust

    38,438      457

Liberty Property Trust

    36,300      836

Macerich (The) Co.

    27,427      483

Mack-Cali Realty Corp.

    26,700      609

Nationwide Health Properties, Inc.

    35,100      903

Omega Healthcare Investors, Inc.

    28,900      449

Potlatch Corp.

    14,038      341

Realty Income Corp.

    36,400      798

Regency Centers Corp.

    27,366      955

SL Green Realty Corp.

    26,700      613

UDR, Inc.

    51,952      537

Weingarten Realty Investors

    36,818      534
         
        13,692
         

Retail - 7.5%

      

99 Cents Only Stores*

    15,700      213

Advance Auto Parts, Inc.

    32,550      1,351

Aeropostale, Inc.*

    22,900      785

American Eagle Outfitters, Inc.

    70,800      1,003

AnnTaylor Stores Corp.*

    20,900      167

 

EQUITY INDEX FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.2% continued

      

Retail - 7.5% continued

      

Barnes & Noble, Inc.

    13,100    $ 270

BJ’s Wholesale Club, Inc.*

    19,100      616

Bob Evans Farms, Inc.

    10,800      310

Brinker International, Inc.

    35,500      605

Carmax, Inc.*

    75,700      1,113

Cheesecake Factory (The), Inc.*

    20,900      362

Chico’s FAS, Inc.*

    61,600      599

Chipotle Mexican Grill, Inc., Class A*

    11,000      880

Coldwater Creek, Inc.*

    17,996      109

Collective Brands, Inc.*

    21,700      316

Copart, Inc.*

    21,600      749

Dick’s Sporting Goods, Inc.*

    28,800      495

Dollar Tree, Inc.*

    31,000      1,305

Foot Locker, Inc.

    54,000      565

Guess?, Inc.

    20,300      523

J. Crew Group, Inc.*

    17,600      476

MSC Industrial Direct Co., Class A

    15,300      543

Panera Bread Co., Class A*

    10,800      538

PetSmart, Inc.

    43,900      942

Phillips-Van Heusen Corp.

    18,000      516

Regis Corp.

    14,300      249

Ross Stores, Inc.

    43,700      1,687

Saks, Inc.*

    48,300      214

Urban Outfitters, Inc.*

    39,100      816

Wendy’s/Arby’s Group, Inc., Class A

    143,000      572

Williams-Sonoma, Inc.

    29,400      349
         
        19,238
         

Savings & Loans - 1.1%

      

Astoria Financial Corp.

    28,000      240

First Niagara Financial Group, Inc.

    50,982      582

New York Community Bancorp, Inc.

    119,808      1,281

NewAlliance Bancshares, Inc.

    36,200      417

Washington Federal, Inc.

    31,000      403
         
        2,923
         

Semiconductors - 2.2%

      

Atmel Corp.*

    156,500      584

Cree, Inc.*

    30,400      893

Fairchild Semiconductor International, Inc.*

    42,200      295

Integrated Device Technology, Inc.*

    56,230      340

International Rectifier Corp.*

    25,400      376

Intersil Corp., Class A

    42,600      535

Lam Research Corp.*

    43,600      1,134

Macrovision Solutions Corp.*

    27,700      604

Semtech Corp.*

    20,800      331

Silicon Laboratories, Inc.*

    15,700      596
         
        5,688
         

Software - 2.6%

      

ACI Worldwide, Inc.*

    11,000      154

Acxiom Corp.

    23,075      204

Advent Software, Inc.*

    5,071      166

ANSYS, Inc.*

    30,200      941

Broadridge Financial Solutions, Inc.

    48,100      798

Cerner Corp.*

    23,400      1,458

Fair Isaac Corp.

    16,100      249

Mantech International Corp., Class A*

    7,400      318

Metavante Technologies, Inc.*

    30,800      796

Parametric Technology Corp.*

    40,400      472

Sybase, Inc.*

    28,713      900

Wind River Systems, Inc.*

    23,900      274
         
        6,730
         

Telecommunications - 2.1%

      

3Com Corp.*

    132,500      624

ADC Telecommunications, Inc.*

    32,900      262

Adtran, Inc.

    18,700      401

Cincinnati Bell, Inc.*

    75,600      215

CommScope, Inc.*

    28,387      745

NeuStar, Inc., Class A*

    25,300      561

Plantronics, Inc.

    16,000      303

Polycom, Inc.*

    29,200      592

RF Micro Devices, Inc.*

    92,000      346

Syniverse Holdings, Inc.*

    16,900      271

Telephone & Data Systems, Inc.

    34,600      979
         
        5,299
         

Textiles - 0.3%

      

Mohawk Industries, Inc.*

    19,500      696
         

Toys, Games & Hobbies - 0.2%

      

Marvel Entertainment, Inc.*

    16,600      591
         

Transportation - 1.6%

      

Alexander & Baldwin, Inc.

    13,700      321

Con-way, Inc.

    16,091      568

Hunt (J.B.) Transport Services, Inc.

    28,100      858

Kansas City Southern*

    31,900      514

Landstar System, Inc.

    17,500      629

Overseas Shipholding Group, Inc.

    8,078      275

Tidewater, Inc.

    18,000      772

 

NORTHERN FUNDS QUARTERLY REPORT    6    EQUITY INDEX FUNDS

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 96.2% continued

      

Transportation - 1.6% continued

      

Werner Enterprises, Inc.

      15,200    $ 275
         
        4,212
         

Trucking & Leasing - 0.2%

      

GATX Corp.

      16,559      426
         

Water - 0.3%

      

Aqua America, Inc.

      47,366      848
         

Total Common Stocks

      
         

(Cost $311,598)

         246,157
     NUMBER
OF WARRANTS		     

WARRANTS - 0.0%

      

Krispy Kreme Doughnuts, Inc., Exp. 3/2/12, Strike $12.21*

      16    $ —  
         

Total Warrants

      
         

(Cost $ — )

         —  
         
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 2.9%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 5,951    $ 5,951

U.S. Treasury Bill,

      

0.36%, 11/19/09(2)

     1,460      1,458
         

Total Short-Term Investments

      
         

(Cost $7,409)

         7,409
         

Total Investments - 99.1%

      
         

(Cost $319,007)

         253,566

Other Assets less Liabilities - 0.9%

         2,348
         

NET ASSETS - 100.0%

       $ 255,914

 

(1) Security has been deemed worthless by the NTGI Valuation Committee.
(2) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Mid Cap Index Fund had open futures contracts as follows:

 

TYPE

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

S&P Midcap

               

400 E-Mini

    169    $ 9,746    Long    9/09    $ (80 ) 
                              

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 319,007   
        

Gross tax appreciation of investments

    $ 12,249   

Gross tax depreciation of investments

      (77,690 ) 
        

Net tax depreciation of investments

    $ (65,441 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Mid Cap Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 246,157 (1)    $ —      $ —      $ 246,157   

Short-Term Investments

      —          7,409      —        7,409   
                              

Total Investments

    $ 246,157      $ 7,409    $ —      $ 253,566   
                              

Other Financial Instruments*

    $ (80 )    $ —      $ —      $ (80 ) 
                              

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

 

SMALL CAP INDEX FUND    JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1%

      

Advertising - 0.1%

      

APAC Customer Services, Inc.*

    7,742    $ 40

Harte-Hanks, Inc.

    8,500      79

inVentiv Health, Inc.*

    9,163      124

Marchex, Inc., Class B

    5,500      18
         
        261
         

Aerospace/Defense - 1.3%

      

AAR Corp.*

    9,471      152

Aerovironment, Inc.*

    3,756      116

Argon ST, Inc.*

    4,003      82

Astronics Corp.*

    3,045      32

Cubic Corp.

    4,200      150

Curtiss-Wright Corp.

    11,200      333

Ducommun, Inc.

    3,000      56

Esterline Technologies Corp.*

    7,117      193

GenCorp, Inc.*

    16,323      31

HEICO Corp.

    6,142      223

Herley Industries, Inc.*

    4,365      48

Kaman Corp.

    7,051      118

LMI Aerospace, Inc.*

    2,838      29

Moog, Inc., Class A*

    10,364      267

National Presto Industries, Inc.

    1,376      105

Orbital Sciences Corp.*

    13,500      205

Teledyne Technologies, Inc.*

    8,800      288

Triumph Group, Inc.

    3,960      158
         
        2,586
         

Agriculture - 0.4%

      

AgFeed Industries, Inc.*

    7,000      41

Alico, Inc.

    900      27

Alliance One International, Inc.*

    24,734      94

Andersons (The), Inc.

    5,000      150

Cadiz, Inc.*

    4,154      40

Griffin Land & Nurseries, Inc.

    600      19

Star Scientific, Inc.*

    19,200      17

Tejon Ranch Co.*

    2,600      69

Universal Corp. of Virginia

    6,200      205

Vector Group Ltd.

    8,460      121
         
        783
         

Airlines - 0.6%

      

Airtran Holdings, Inc.*

    29,354      182

Alaska Air Group, Inc.*

    9,831      179

Allegiant Travel Co.*

    3,628      144

Hawaiian Holdings, Inc.*

    14,614      88

JetBlue Airways Corp.*

    56,403      241

Republic Airways Holdings, Inc.*

    10,158      66

Skywest, Inc.

    14,400      147

UAL Corp.*

    34,400      110

US Airways Group, Inc.*

    29,300      71
         
        1,228
         

Apparel - 1.5%

      

American Apparel, Inc.*

    10,200      37

Carter’s, Inc.*

    13,909      342

Cherokee, Inc.

    1,800      36

Columbia Sportswear Co.

    3,300      102

CROCS, Inc.*

    22,900      78

Deckers Outdoor Corp.*

    3,218      226

G-III Apparel Group Ltd.*

    3,875      45

Iconix Brand Group, Inc.*

    14,500      223

Jones Apparel Group, Inc.

    21,042      226

K-Swiss, Inc., Class A

    7,812      67

Maidenform Brands, Inc.*

    5,648      65

Oxford Industries, Inc.

    4,300      50

Perry Ellis International, Inc.*

    3,200      23

Quiksilver, Inc.*

    33,000      61

Skechers U.S.A., Inc., Class A*

    7,600      74

Steven Madden Ltd.*

    4,410      112

Timberland (The) Co., Class A*

    10,900      145

True Religion Apparel, Inc.*

    6,112      136

Under Armour, Inc., Class A*

    8,009      179

Unifi, Inc.*

    10,000      14

Volcom, Inc.*

    5,094      64

Warnaco Group (The), Inc.*

    11,366      368

Weyco Group, Inc.

    1,700      39

Wolverine World Wide, Inc.

    11,961      264
         
        2,976
         

Auto Manufacturers - 0.1%

      

Force Protection, Inc.*

    18,586      164
         

Auto Parts & Equipment - 0.6%

      

American Axle & Manufacturing Holdings, Inc.

    12,825      44

Amerigon, Inc.*

    6,687      41

ArvinMeritor, Inc.

    18,846      83

ATC Technology Corp.*

    5,693      83

Cooper Tire & Rubber Co.

    14,500      144

Dana Holding Corp.*

    29,974      38

Dorman Products, Inc.*

    2,276      31

Exide Technologies*

    15,999      60

 

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Auto Parts & Equipment - 0.6% continued

      

Fuel Systems Solutions, Inc.*

    3,499    $ 71

Lear Corp.*

    16,000      8

Modine Manufacturing Co.

    7,600      36

Spartan Motors, Inc.

    8,839      100

Standard Motor Products, Inc.

    2,920      24

Superior Industries International, Inc.

    6,106      86

Tenneco, Inc.*

    12,036      128

Titan International, Inc.

    8,000      60

Wonder Auto Technology, Inc.*

    4,395      44
         
        1,081
         

Banks - 6.0%

      

1st Source Corp.

    3,408      59

Alliance Financial Corp. of New York

    609      17

American National Bankshares, Inc. of Virginia

    826      16

Ameris Bancorp

    3,120      20

Ames National Corp.

    1,500      37

Arrow Financial Corp.

    1,800      49

Bancfirst Corp.

    2,037      70

Banco Latinoamericano de Exportaciones S.A., Class E

    7,916      98

Bank Mutual Corp.

    13,377      117

Bank of Marin Bancorp of California

    833      22

Bank of the Ozarks, Inc.

    3,936      85

Banner Corp.

    5,342      20

Boston Private Financial Holdings, Inc.

    19,231      86

Bridge Bancorp, Inc.

    1,035      28

Bryn Mawr Bank Corp.

    1,200      23

Camden National Corp.

    2,302      78

Capital City Bank Group, Inc.

    2,808      47

Cardinal Financial Corp.

    8,546      67

Cass Information Systems, Inc.

    1,775      58

Cathay General Bancorp

    13,596      129

Center Bancorp, Inc.

    1,377      11

Centerstate Banks , Inc.

    1,400      10

Central Pacific Financial Corp.

    8,965      34

Chemical Financial Corp.

    6,122      122

Citizens & Northern Corp.

    1,900      39

Citizens Holding Co.

    1,000      31

Citizens Republic Bancorp, Inc.*

    29,823      21

City Holding Co.

    4,560      138

CNB Financial Corp. of Pennsylvania

    1,406      20

CoBiz Financial, Inc.

    4,650      30

Colonial BancGroup (The), Inc.

    53,800      33

Columbia Banking System, Inc.

    5,651      58

Community Bank System, Inc.

    9,311      136

Community Trust Bancorp, Inc.

    4,373      117

CVB Financial Corp.

    18,875      113

East-West Bancorp, Inc.

    16,700      108

Enterprise Financial Services Corp.

    2,400      22

Farmers Capital Bank Corp.

    1,200      30

Financial Institutions, Inc.

    2,200      30

First Bancorp of North Carolina

    4,533      71

First Bancorp of Puerto Rico

    18,520      73

First Bancorp, Inc.

    1,600      31

First Busey Corp.

    5,816      43

First Commonwealth Financial Corp.

    23,667      150

First Community Bancshares, Inc. of Virginia

    3,184      41

First Financial Bancorp

    10,839      82

First Financial Bankshares, Inc.

    5,634      284

First Financial Corp. of Indiana

    3,401      107

First Merchants Corp.

    6,484      52

First Midwest Bancorp, Inc.

    13,903      102

First of Long Island (The) Corp.

    865      20

First South Bancorp, Inc. of North Carolina

    1,900      22

FirstMerit Corp.

    20,849      354

FNB Corp. of Pennsylvania

    21,068      130

German American Bancorp, Inc.

    1,895      27

Glacier Bancorp, Inc.

    16,482      243

Great Southern Bancorp, Inc.

    3,040      62

Guaranty Bancorp*

    13,000      25

Hampton Roads Bankshares, Inc.

    3,255      27

Hancock Holding Co.

    6,624      215

Harleysville National Corp.

    9,770      46

Heartland Financial USA, Inc.

    3,000      43

Home Bancshares, Inc.

    4,254      81

IBERIABANK Corp.

    4,455      176

Independent Bank Corp. of Massachusetts

    5,948      117

International Bancshares Corp.

    13,360      138

Lakeland Bancorp, Inc.

    4,641      42

Lakeland Financial Corp.

    2,800      53

MainSource Financial Group, Inc.

    4,570      34

MB Financial, Inc.

    9,953      101

Merchants Bancshares, Inc.

    621      14

Metro Bancorp, Inc.*

    800      15

Nara Bancorp, Inc.

    7,534      39

National Bankshares, Inc.

    1,229      30

National Penn Bancshares, Inc.

    22,600      104

 

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Banks - 6.0% continued

      

NBT Bancorp, Inc.

    9,204    $ 200

Northrim BanCorp, Inc.

    926      13

Ohio Valley Banc Corp.

    578      17

Old National Bancorp of Indiana

    17,095      168

Old Second Bancorp, Inc.

    3,138      19

Oriental Financial Group, Inc.

    6,647      65

Orrstown Financial Services, Inc.

    900      34

Pacific Capital Bancorp

    14,880      32

Pacific Continental Corp.

    2,000      24

PacWest Bancorp

    7,502      99

Park National Corp.

    3,044      172

Peapack Gladstone Financial Corp.

    1,700      33

Penns Woods Bancorp, Inc.

    543      16

Peoples Bancorp, Inc. of Ohio

    2,460      42

Pinnacle Financial Partners, Inc.*

    6,824      91

Premierwest Bancorp

    3,255      11

PrivateBancorp, Inc.

    9,353      208

Prosperity Bancshares, Inc.

    12,296      367

Renasant Corp.

    6,151      92

Republic Bancorp, Inc. of Kentucky, Class A

    2,853      64

S & T Bancorp, Inc.

    6,700      81

Sandy Spring Bancorp, Inc.

    3,900      57

Santander BanCorp*

    1,079      8

SCBT Financial Corp.

    3,767      89

Shore Bancshares, Inc.

    1,600      29

Sierra Bancorp

    1,600      20

Signature Bank of New York*

    9,556      259

Simmons First National Corp., Class A

    4,097      109

Smithtown Bancorp, Inc.

    4,525      58

South Financial Group (The), Inc.

    24,700      29

Southside Bancshares, Inc.

    3,923      90

Southwest Bancorp, Inc. of Oklahoma

    4,785      47

State Bancorp, Inc.

    2,700      20

StellarOne Corp.

    4,900      63

Sterling Bancorp of New York

    5,863      49

Sterling Bancshares, Inc. of Texas

    22,678      144

Sterling Financial Corp. of Washington

    14,782      43

Suffolk Bancorp

    2,962      76

Sun Bancorp, Inc. of New Jersey*

    3,803      20

Susquehanna Bancshares, Inc.

    21,752      106

SVB Financial Group*

    8,030      219

SY Bancorp, Inc.

    3,482      84

Texas Capital Bancshares, Inc.*

    9,829      152

Tompkins Financial Corp.

    2,401      115

Tower Bancorp, Inc.

    510      18

TowneBank

    6,091      85

Trico Bancshares

    4,217      65

Trustco Bank Corp. of New York

    21,649      128

Trustmark Corp.

    15,361      297

UCBH Holdings, Inc.

    33,000      42

UMB Financial Corp.

    7,912      301

Umpqua Holdings Corp.

    16,703      130

Union Bankshares Corp. of Virginia

    3,100      46

United Bankshares, Inc.

    9,800      192

United Community Banks, Inc. of Georgia*

    11,562      70

United Security Bancshares, Inc.

    971      21

Univest Corp. of Pennsylvania

    3,050      62

Washington Trust Bancorp, Inc.

    2,800      50

Webster Financial Corp.

    12,580      101

WesBanco, Inc.

    6,639      97

West Bancorporation

    3,700      19

Westamerica Bancorporation

    7,400      367

Western Alliance Bancorp*

    11,200      77

Wilshire Bancorp, Inc.

    6,254      36

Wintrust Financial Corp.

    6,730      108

Yadkin Valley Financial Corp.

    2,800      19
         
        11,488
         

Beverages - 0.2%

      

Boston Beer Co., Inc., Class A*

    2,604      77

Coca-Cola Bottling Co. Consolidated

    1,291      71

Diedrich Coffee, Inc.*

    1,111      27

Farmer Bros. Co.

    1,600      37

Heckmann Corp.*

    18,124      68

National Beverage Corp.*

    2,760      29

Peet’s Coffee & Tea, Inc.*

    3,300      83
         
        392
         

Biotechnology - 2.8%

      

Acorda Therapeutics, Inc.*

    9,409      265

Affymax, Inc.*

    3,046      56

Alnylam Pharmaceuticals, Inc.*

    8,700      194

AMAG Pharmaceuticals, Inc.*

    4,178      228

American Oriental Bioengineering, Inc.*

    14,600      77

Arena Pharmaceuticals, Inc.*

    21,739      108

Ariad Pharmaceuticals, Inc.*

    25,952      41

Arqule, Inc.*

    11,026      68

ARYx Therapeutics, Inc.*

    4,049      17

Biocryst Pharmaceuticals, Inc.*

    6,753      27

 

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Biotechnology - 2.8% continued

      

Cambrex Corp.*

    9,057    $ 37

Celera Corp.*

    20,600      157

Cell Therapeutics, Inc.*

    113,649      195

Celldex Therapeutics, Inc.*

    3,700      29

Chelsea Therapeutics International, Inc.*

    4,850      20

China-Biotics, Inc.*

    1,900      20

Clinical Data, Inc.*

    2,100      23

Cougar Biotechnology, Inc.*

    3,900      168

Cubist Pharmaceuticals, Inc.*

    14,047      257

Curis, Inc.*

    12,942      21

Cytokinetics, Inc.*

    8,855      25

Discovery Laboratories, Inc.*

    36,814      38

Emergent Biosolutions, Inc.*

    4,789      69

Enzo Biochem, Inc.*

    7,307      32

Enzon Pharmaceuticals, Inc.*

    12,730      100

Exelixis, Inc.*

    25,900      126

Facet Biotech Corp.*

    7,136      66

Geron Corp.*

    22,100      170

GTX, Inc.*

    5,665      52

Halozyme Therapeutics, Inc.*

    14,910      104

Harvard Bioscience, Inc.*

    8,760      35

Human Genome Sciences, Inc.*

    34,733      99

Idera Pharmaceuticals, Inc.*

    4,900      29

Immunogen, Inc.*

    14,020      121

Immunomedics, Inc.*

    18,700      48

Incyte Corp.*

    21,000      69

Insmed, Inc.*

    34,767      35

InterMune, Inc.*

    10,364      158

Lexicon Pharmaceuticals, Inc.*

    16,000      20

Ligand Pharmaceuticals, Inc., Class B*

    26,275      75

Martek Biosciences Corp.

    7,927      168

Maxygen, Inc.*

    7,596      51

Medicines (The) Co.*

    14,272      120

Micromet, Inc.*

    12,635      63

Molecular Insight Pharmaceuticals, Inc.*

    5,180      27

Momenta Pharmaceuticals, Inc.*

    9,709      117

Novavax, Inc.*

    17,700      58

NPS Pharmaceuticals, Inc.*

    13,763      64

OncoGenex Pharmaceutical, Inc.*

    1,276      28

PDL BioPharma, Inc.

    30,900      244

Protalix BioTherapeutics, Inc.*

    7,210      33

Regeneron Pharmaceuticals, Inc.*

    15,800      283

Repligen Corp.*

    9,576      53

RTI Biologics, Inc.*

    12,700      55

Sangamo BioSciences, Inc.*

    12,111      60

Seattle Genetics, Inc.*

    17,133      167

Sequenom, Inc.*

    16,676      65

StemCells, Inc.*

    30,714      52

SuperGen, Inc.*

    11,017      22

Vical, Inc.*

    11,500      31

Zymogenetics, Inc.*

    10,300      47
         
        5,287
         

Building Materials - 0.8%

      

AAON, Inc.

    3,809      76

Apogee Enterprises, Inc.

    7,900      97

Broadwind Energy, Inc.*

    7,142      81

Builders FirstSource, Inc.*

    4,200      17

Comfort Systems USA, Inc.

    10,823      111

Drew Industries, Inc.*

    4,700      57

Gibraltar Industries, Inc.

    7,450      51

Interline Brands, Inc.*

    8,760      120

Louisiana-Pacific Corp.*

    26,800      92

LSI Industries, Inc.

    4,312      23

NCI Building Systems, Inc.*

    6,100      16

Quanex Building Products Corp.

    8,500      95

Simpson Manufacturing Co., Inc.

    9,600      208

Texas Industries, Inc.

    5,700      179

Trex Co., Inc.*

    4,400      59

U.S. Concrete, Inc.*

    9,200      18

Universal Forest Products, Inc.

    4,585      152
         
        1,452
         

Chemicals - 1.7%

      

Aceto Corp.

    7,713      51

American Vanguard Corp.

    5,000      57

Arch Chemicals, Inc.

    5,917      146

Balchem Corp.

    5,192      127

Ferro Corp.

    12,450      34

Fuller (H.B.) Co.

    11,715      220

Grace (W.R.) & Co.*

    18,100      224

Hawkins, Inc.

    2,780      63

ICO, Inc.*

    5,900      16

Innophos Holdings, Inc.

    4,925      83

Innospec, Inc.

    5,500      59

Landec Corp.*

    6,800      46

Minerals Technologies, Inc.

    4,400      159

NewMarket Corp.

    2,564      173

Olin Corp.

    18,917      225

 

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Chemicals - 1.7% continued

      

OM Group, Inc.*

    7,388    $ 214

Omnova Solutions, Inc.*

    13,254      43

PolyOne Corp.*

    21,600      59

Quaker Chemical Corp.

    3,300      44

Rockwood Holdings, Inc.*

    11,952      175

Schulman (A.), Inc.

    6,910      104

Sensient Technologies Corp.

    11,799      266

ShengdaTech, Inc.*

    6,900      26

Solutia, Inc.*

    24,500      141

Spartech Corp.

    8,676      80

Stepan Co.

    2,117      93

Symyx Technologies, Inc.*

    9,898      58

Westlake Chemical Corp.

    4,500      92

Zep, Inc.

    5,650      68

Zoltek Cos., Inc.*

    7,956      77
         
        3,223
         

Coal - 0.1%

      

International Coal Group, Inc.*

    23,128      66

James River Coal Co.*

    6,500      98

Patriot Coal Corp.*

    15,314      98

Westmoreland Coal Co.*

    1,900      16
         
        278
         

Commercial Services - 6.3%

      

ABM Industries, Inc.

    11,048      200

Administaff, Inc.

    5,600      130

Advance America Cash Advance Centers, Inc.

    11,010      49

Advisory Board (The) Co.*

    4,300      110

Albany Molecular Research, Inc.*

    5,500      46

American Caresource Holdings, Inc.*

    4,785      18

American Public Education, Inc.*

    4,931      195

AMN Healthcare Services, Inc.*

    9,702      62

Arbitron, Inc.

    6,900      110

Asset Acceptance Capital Corp.*

    3,600      28

Avis Budget Group, Inc.*

    24,929      141

Bankrate, Inc.*

    3,200      81

Bridgepoint Education, Inc.*

    4,148      70

Capella Education Co.*

    3,937      236

Cardtronics, Inc.*

    3,800      14

CBIZ, Inc.*

    12,821      91

CDI Corp.

    2,800      31

Cenveo, Inc.*

    11,070      47

Chemed Corp.

    5,426      214

ChinaCast Education Corp.*

    7,500      53

Coinstar, Inc.*

    7,723      206

Consolidated Graphics, Inc.*

    2,900      51

Corinthian Colleges, Inc.*

    20,390      345

Cornell Cos., Inc.*

    3,200      52

Corporate Executive Board Co.

    9,285      193

Corvel Corp.*

    1,825      42

CoStar Group, Inc.*

    5,394      215

CPI Corp.

    1,609      27

CRA International, Inc.*

    3,153      88

Cross Country Healthcare, Inc.*

    7,300      50

Deluxe Corp.

    12,271      157

Diamond Management & Technology Consultants, Inc.

    3,998      17

Dollar Financial Corp.*

    6,400      88

Dollar Thrifty Automotive Group, Inc.*

    6,000      84

DynCorp International, Inc., Class A*

    6,600      111

Electro Rent Corp.

    5,074      48

Emergency Medical Services Corp., Class A*

    2,832      104

Euronet Worldwide, Inc.*

    12,856      249

ExlService Holdings, Inc.*

    3,256      36

First Advantage Corp., Class A*

    2,000      30

Forrester Research, Inc.*

    4,416      108

Gartner, Inc.*

    14,402      220

Geo Group (The), Inc.*

    12,434      231

Global Cash Access Holdings, Inc.*

    10,200      81

Grand Canyon Education, Inc.*

    4,581      77

Great Lakes Dredge & Dock Corp.

    9,000      43

H&E Equipment Services, Inc.*

    7,916      74

Hackett Group (The), Inc.*

    9,300      22

Healthcare Services Group, Inc.

    11,729      210

Heartland Payment Systems, Inc.

    10,459      100

Heidrick & Struggles International, Inc.

    4,867      89

Hill International, Inc.*

    5,600      24

HMS Holdings Corp.*

    6,908      281

Huron Consulting Group, Inc.*

    5,630      260

ICF International, Inc.*

    2,643      73

ICT Group, Inc.*

    1,800      16

Jackson Hewitt Tax Service, Inc.

    8,000      50

K12, Inc.*

    6,473      139

Kelly Services, Inc., Class A

    7,475      82

Kendle International, Inc.*

    4,381      54

Kenexa Corp.*

    6,300      73

Kforce, Inc.*

    8,238      68

Korn/Ferry International*

    12,284      131

 

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Commercial Services - 6.3% continued

      

Landauer, Inc.

    2,592    $ 159

Learning Tree International, Inc.*

    2,750      28

Lincoln Educational Services Corp.*

    2,971      62

Live Nation, Inc.*

    19,840      96

Mac-Gray Corp.*

    2,246      30

MAXIMUS, Inc.

    4,820      199

McGrath Rentcorp

    6,531      124

Medifast, Inc.*

    3,985      46

Midas, Inc.*

    3,300      35

MoneyGram International, Inc.*

    16,104      29

Monro Muffler, Inc.

    4,711      121

MPS Group, Inc.*

    22,346      171

Multi-Color Corp.

    2,350      29

Navigant Consulting, Inc.*

    11,895      154

Net 1 UEPS Technologies, Inc.*

    10,500      143

Odyssey Marine Exploration, Inc.*

    18,444      29

On Assignment, Inc.*

    8,100      32

Parexel International Corp.*

    15,472      222

PHH Corp.*

    13,442      244

Pre-Paid Legal Services, Inc.*

    2,133      93

Providence Service (The) Corp.*

    3,364      37

Rent-A-Center, Inc.*

    17,000      303

Resources Connection, Inc.*

    11,400      196

Riskmetrics Group, Inc.*

    5,135      91

Rollins, Inc.

    11,200      194

RSC Holdings, Inc.*

    11,200      75

Sotheby’s

    16,379      231

Spherion Corp.*

    14,792      61

Standard Parking Corp.*

    2,579      42

Steiner Leisure Ltd.*

    4,000      122

Stewart Enterprises, Inc., Class A

    20,000      96

SuccessFactors, Inc.*

    8,584      79

Team, Inc.*

    5,305      83

TeleTech Holdings, Inc.*

    8,300      126

Ticketmaster Entertainment, Inc.*

    10,704      69

TNS, Inc.*

    6,805      128

Tree.com, Inc.*

    2,264      22

TrueBlue, Inc.*

    10,300      87

United Rentals, Inc.*

    16,483      107

Universal Technical Institute, Inc.*

    5,500      82

Valassis Communications, Inc.*

    12,227      75

Viad Corp.

    5,770      99

VistaPrint Ltd.*

    10,770      459

Volt Information Sciences, Inc.*

    3,775      24

Watson Wyatt Worldwide, Inc., Class A

    10,900      409

Wright Express Corp.*

    9,366      239
         
        12,207
         

Computers - 2.9%

      

3D Systems Corp.*

    4,500      32

3PAR, Inc.*

    6,128      76

Agilysys, Inc.

    5,287      25

CACI International, Inc., Class A*

    7,285      311

CIBER, Inc.*

    14,547      45

Cogo Group, Inc.*

    7,661      46

Compellent Technologies, Inc.*

    4,906      75

COMSYS IT Partners, Inc.*

    3,300      19

Cray, Inc.*

    9,715      77

Data Domain, Inc.*

    11,826      394

Echelon Corp.*

    7,200      61

Electronics for Imaging, Inc.*

    12,855      137

Henry (Jack) & Associates, Inc.

    20,494      425

iGate Corp.

    5,400      36

Imation Corp.

    6,900      53

Immersion Corp.*

    8,501      42

Insight Enterprises, Inc.*

    12,358      119

Integral Systems, Inc. of Maryland*

    5,168      43

Isilon Systems, Inc.*

    3,804      16

LivePerson, Inc.*

    8,233      33

Manhattan Associates, Inc.*

    6,500      118

Maxwell Technologies, Inc.*

    6,377      88

Mentor Graphics Corp.*

    22,644      124

Mercury Computer Systems, Inc.*

    6,516      60

MTS Systems Corp.

    4,800      99

NCI, Inc., Class A*

    2,000      61

Ness Technologies, Inc.*

    12,077      47

Netezza Corp.*

    12,275      102

Netscout Systems, Inc.*

    7,362      69

Palm, Inc.*

    34,624      574

Perot Systems Corp., Class A*

    22,400      321

Quantum Corp.*

    54,200      45

Radiant Systems, Inc.*

    6,600      55

Radisys Corp.*

    6,830      62

Rimage Corp.*

    2,400      40

Riverbed Technology, Inc.*

    13,700      318

Silicon Graphics International Corp.*

    8,600      39

Silicon Storage Technology, Inc.*

    17,900      33

Smart Modular Technologies WWH, Inc.*

    11,200      25

SRA International, Inc., Class A*

    9,900      174

 

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Computers - 2.9% continued

      

STEC, Inc.*

    6,294    $ 146

Stratasys, Inc.*

    5,900      65

Super Micro Computer, Inc.*

    7,087      54

SYKES Enterprises, Inc.*

    9,490      172

Synaptics, Inc.*

    8,518      329

Syntel, Inc.

    3,400      107

Tier Technologies, Inc., Class B*

    3,198      25

Unisys Corp.*

    90,195      136

Virtusa Corp.*

    4,500      36
         
        5,589
         

Cosmetics/Personal Care - 0.3%

      

Bare Escentuals, Inc.*

    15,971      142

Chattem, Inc.*

    4,758      324

Elizabeth Arden, Inc.*

    7,255      63

Inter Parfums, Inc.

    3,600      27

Revlon, Inc.*

    3,915      21
         
        577
         

Distribution/Wholesale - 1.3%

      

Beacon Roofing Supply, Inc.*

    12,227      177

BMP Sunstone Corp.*

    6,722      32

Brightpoint, Inc.*

    11,750      74

Chindex International, Inc.*

    3,961      49

Core-Mark Holding Co., Inc.*

    2,900      76

FGX International Holdings Ltd.*

    4,381      50

Fossil, Inc.*

    11,600      279

Houston Wire & Cable Co.

    5,220      62

MWI Veterinary Supply, Inc.*

    3,003      105

Owens & Minor, Inc.

    10,232      448

Pool Corp.

    12,400      205

Rentrak Corp.*

    3,005      49

Scansource, Inc.*

    7,219      177

School Specialty, Inc.*

    5,268      106

Titan Machinery, Inc.*

    4,012      51

United Stationers, Inc.*

    6,092      213

Watsco, Inc.

    6,050      296
         
        2,449
         

Diversified Financial Services - 2.0%

      

BGC Partners, Inc., Class A

    14,315      54

Broadpoint Gleacher Securities, Inc.*

    7,465      42

Calamos Asset Management, Inc., Class A

    5,600      79

Cohen & Steers, Inc.

    4,700      70

CompuCredit Corp.*

    3,800      9

Credit Acceptance Corp.*

    1,252      27

Diamond Hill Investment Group, Inc.*

    780      31

Duff & Phelps Corp., Class A

    4,541      81

E*TRADE Financial Corp.*

    117,998      151

Encore Capital Group, Inc.*

    3,100      41

Evercore Partners, Inc., Class A

    3,106      61

FBR Capital Markets Corp.*

    5,800      27

FCStone Group, Inc.*

    8,476      34

Financial Federal Corp.

    5,900      121

First Marblehead (The), Corp.*

    16,000      32

GAMCO Investors, Inc., Class A

    2,100      102

GFI Group, Inc.

    16,880      114

International Assets Holding Corp.*

    800      12

JMP Group, Inc.

    2,575      20

KBW, Inc.*

    8,523      245

Knight Capital Group, Inc., Class A*

    23,900      408

LaBranche & Co., Inc.*

    16,248      70

MarketAxess Holdings, Inc.*

    8,827      84

MF Global Ltd.*

    23,471      139

National Financial Partners Corp.

    10,799      79

Nelnet, Inc., Class A*

    4,422      60

NewStar Financial, Inc.*

    5,457      10

Ocwen Financial Corp.*

    9,095      118

Oppenheimer Holdings, Inc., Class A

    2,890      61

optionsXpress Holdings, Inc.

    10,758      167

Penson Worldwide, Inc.*

    5,711      51

Piper Jaffray Cos.*

    4,762      208

Portfolio Recovery Associates, Inc.*

    4,194      163

Pzena Investment Management, Inc., Class A

    2,746      21

Sanders Morris Harris Group, Inc.

    3,800      21

Stifel Financial Corp.*

    6,722      323

SWS Group, Inc.

    6,946      97

Teton Advisors, Inc.*

    31      —  

Thomas Weisel Partners Group, Inc.*

    6,650      40

TradeStation Group, Inc.*

    9,735      82

US Global Investors, Inc., Class A

    4,199      39

Virtus Investment Partners, Inc.*

    2,009      30

Westwood Holdings Group, Inc.

    1,696      71

World Acceptance Corp.*

    4,200      84
         
        3,779
         

Electric - 1.9%

      

Allete, Inc.

    7,100      204

Avista Corp.

    12,842      229

Black Hills Corp.

    8,900      205

 

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Electric - 1.9% continued

      

Central Vermont Public Service Corp.

    3,704    $ 67

CH Energy Group, Inc.

    4,279      200

Cleco Corp.

    15,500      347

El Paso Electric Co.*

    12,587      176

Empire District Electric (The) Co.

    9,886      163

EnerNOC, Inc.*

    2,941      64

IDACORP, Inc.

    11,256      294

MGE Energy, Inc.

    6,460      217

NorthWestern Corp.

    10,012      228

Otter Tail Corp.

    9,081      198

Pike Electric Corp.*

    4,800      58

PNM Resources, Inc.

    20,534      220

Portland General Electric Co.

    18,000      351

UIL Holdings Corp.

    7,033      158

Unisource Energy Corp.

    8,347      221

Unitil Corp.

    3,506      72

US Geothermal, Inc.*

    20,373      29
         
        3,701
         

Electrical Components & Equipment - 1.1%

      

Advanced Battery Technologies, Inc.*

    13,800      55

Advanced Energy Industries, Inc.*

    7,600      68

American Superconductor Corp.*

    10,647      280

Belden, Inc.

    11,286      188

China BAK Battery, Inc.*

    11,913      35

Encore Wire Corp.

    5,000      107

Ener1, Inc.*

    10,824      59

Energy Conversion Devices, Inc.*

    11,163      158

EnerSys*

    9,740      177

Evergreen Solar, Inc.*

    45,399      99

Fushi Copperweld, Inc.*

    4,906      41

GrafTech International Ltd.*

    29,801      337

Graham Corp.

    3,174      42

Harbin Electric, Inc.*

    3,430      54

Insteel Industries, Inc.

    5,200      43

Littelfuse, Inc.*

    6,000      120

Orion Energy Systems, Inc.*

    2,200      8

Powell Industries, Inc.*

    2,223      82

Power-One, Inc.*

    24,617      37

SatCon Technology Corp.*

    16,931      31

Ultralife Corp.*

    3,900      28

Universal Display Corp.*

    7,700      75

Valence Technology, Inc.*

    11,100      20

Vicor Corp.

    4,600      33
         
        2,177
         

Electronics - 2.6%

      

American Science & Engineering, Inc.

    2,497      173

Analogic Corp.

    3,507      130

Axsys Technologies, Inc.*

    2,621      141

Badger Meter, Inc.

    3,700      152

Bel Fuse, Inc., Class B

    2,800      45

Benchmark Electronics, Inc.*

    15,663      225

Brady Corp., Class A

    12,338      310

Checkpoint Systems, Inc.*

    9,400      147

China Security & Surveillance Technology, Inc.*

    8,800      66

Cogent, Inc.*

    10,800      116

Coherent, Inc.*

    6,069      125

CTS Corp.

    8,180      54

Cymer, Inc.*

    6,973      207

Daktronics, Inc.

    9,759      75

Dionex Corp.*

    4,700      287

Electro Scientific Industries, Inc.*

    7,902      88

FARO Technologies, Inc.*

    4,847      75

FEI Co.*

    10,044      230

ICx Technologies, Inc.*

    2,000      12

II-VI, Inc.*

    6,000      133

L-1 Identity Solutions, Inc.*

    17,919      139

LaBarge, Inc.*

    2,300      21

Measurement Specialties, Inc.*

    3,400      24

Methode Electronics, Inc.

    8,742      61

Microvision, Inc.*

    20,002      61

Multi-Fineline Electronix, Inc.*

    2,934      63

Newport Corp.*

    10,758      62

NVE Corp.*

    1,382      67

OSI Systems, Inc.*

    4,462      93

Park Electrochemical Corp.

    4,800      103

Plexus Corp.*

    10,200      209

Rofin-Sinar Technologies, Inc.*

    7,800      156

Rogers Corp.*

    4,431      90

Spectrum Control, Inc.*

    2,225      20

Stoneridge, Inc.*

    5,666      27

Taser International, Inc.*

    16,800      77

Technitrol, Inc.

    11,377      74

TTM Technologies, Inc.*

    10,400      83

Varian, Inc.*

    7,000      276

Watts Water Technologies, Inc., Class A

    6,700      144

Woodward Governor Co.

    14,900      295

Zygo Corp.*

    3,600      17
         
        4,953
         

 

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Energy - Alternate Sources - 0.2%

      

Ascent Solar Technologies, Inc.*

    4,807    $ 38

Clean Energy Fuels Corp.*

    7,499      65

Comverge, Inc.*

    5,740      69

Evergreen Energy, Inc.*

    28,200      28

FuelCell Energy, Inc.*

    18,700      78

GT Solar International, Inc.*

    8,300      44

Headwaters, Inc.*

    11,700      39

Syntroleum Corp.*

    19,199      42
         
        403
         

Engineering & Construction - 0.9%

      

Baker (Michael) Corp.*

    2,215      94

Dycom Industries, Inc.*

    10,600      117

EMCOR Group, Inc.*

    16,300      328

ENGlobal Corp.*

    6,800      34

Exponent, Inc.*

    3,990      98

Granite Construction, Inc.

    8,381      279

Insituform Technologies, Inc., Class A*

    10,495      178

Integrated Electrical Services, Inc.*

    2,000      16

Layne Christensen Co.*

    5,387      110

MYR Group, Inc.*

    4,819      97

Orion Marine Group, Inc.*

    5,600      106

Stanley, Inc.*

    3,297      108

Sterling Construction Co., Inc.*

    4,065      62

Tutor Perini Corp.*

    6,563      114

VSE Corp.

    1,377      36
         
        1,777
         

Entertainment - 0.8%

      

Ascent Media Corp.*

    3,526      94

Bally Technologies, Inc.*

    13,539      405

Bluegreen Corp.*

    3,200      8

Carmike Cinemas, Inc.

    3,548      30

Churchill Downs, Inc.

    2,452      82

Cinemark Holdings, Inc.

    7,301      83

Dover Downs Gaming & Entertainment, Inc.

    5,227      24

Great Wolf Resorts, Inc.*

    6,160      12

Isle of Capri Casinos, Inc.*

    4,428      59

National CineMedia, Inc.

    11,382      157

Pinnacle Entertainment, Inc.*

    15,664      145

Shuffle Master, Inc.*

    15,023      99

Speedway Motorsports, Inc.

    3,200      44

Vail Resorts, Inc.*

    7,000      188

Youbet.com, Inc.*

    9,574      32
         
        1,462
         

Environmental Control - 0.9%

      

American Ecology Corp.

    5,221      94

Calgon Carbon Corp.*

    13,600      189

Clean Harbors, Inc.*

    5,089      275

Darling International, Inc.*

    20,500      135

Energy Recovery, Inc.*

    7,107      50

EnergySolutions, Inc.

    18,359      169

Fuel Tech, Inc.*

    5,000      48

Metalico, Inc.*

    8,180      38

Met-Pro Corp.

    4,598      50

Mine Safety Appliances Co.

    7,200      173

Perma-Fix Environmental Services*

    10,723      26

Tetra Tech, Inc.*

    14,891      427

Waste Services, Inc.*

    5,466      28
         
        1,702
         

Food - 1.9%

      

American Dairy, Inc.*

    2,000      79

American Italian Pasta Co., Class A*

    5,621      164

Arden Group, Inc., Class A

    300      37

B&G Foods, Inc., Class A

    3,800      32

Calavo Growers, Inc.

    3,124      62

Cal-Maine Foods, Inc.

    3,857      96

Chiquita Brands International, Inc.*

    10,559      108

Diamond Foods, Inc.

    4,533      126

Fresh Del Monte Produce, Inc.*

    9,700      158

Great Atlantic & Pacific Tea Co.*

    8,318      35

Hain Celestial Group (The), Inc.*

    9,900      154

HQ Sustainable Maritime Industries, Inc.*

    3,131      29

Imperial Sugar Co.

    3,800      46

Ingles Markets, Inc., Class A

    3,973      61

J & J Snack Foods Corp.

    3,983      143

Lancaster Colony Corp.

    5,300      234

Lance, Inc.

    7,637      177

M & F Worldwide Corp.*

    3,113      62

Nash Finch Co.

    3,651      99

Ruddick Corp.

    10,600      248

Sanderson Farms, Inc.

    4,901      221

Seaboard Corp.

    100      112

Seneca Foods Corp., Class A*

    1,171      39

Smart Balance, Inc.*

    16,300      111

Spartan Stores, Inc.

    6,339      79

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Food - 1.9% continued

      

Tootsie Roll Industries, Inc.

    5,713    $ 130

TreeHouse Foods, Inc.*

    7,563      218

United Natural Foods, Inc.*

    10,900      286

Village Super Market, Class A

    1,953      58

Weis Markets, Inc.

    2,600      87

Winn-Dixie Stores, Inc.*

    14,542      182

Zhongpin, Inc.*

    5,750      60
         
        3,733
         

Forest Products & Paper - 0.4%

      

Boise, Inc.*

    11,000      19

Buckeye Technologies, Inc.*

    9,800      44

Clearwater Paper Corp.*

    3,131      79

Deltic Timber Corp.

    2,400      85

Domtar Corp.*

    10,171      169

Glatfelter

    10,500      94

Kapstone Paper and Packaging Corp.*

    3,927      18

Neenah Paper, Inc.

    4,600      41

Orchids Paper Products Co.*

    1,672      34

Schweitzer-Mauduit International, Inc.

    4,325      118

Wausau Paper Corp.

    11,942      80
         
        781
         

Gas - 1.4%

      

Chesapeake Utilities Corp.

    2,300      75

Laclede Group (The), Inc.

    6,221      206

New Jersey Resources Corp.

    10,775      399

Nicor, Inc.

    10,956      379

Northwest Natural Gas Co.

    6,321      280

Piedmont Natural Gas Co., Inc.

    18,600      448

South Jersey Industries, Inc.

    7,926      277

Southwest Gas Corp.

    10,700      238

WGL Holdings, Inc.

    12,700      407
         
        2,709
         

Hand/Machine Tools - 0.4%

      

Baldor Electric Co.

    11,407      271

Franklin Electric Co., Inc.

    6,345      165

K-Tron International, Inc.*

    757      60

Regal-Beloit Corp.

    8,758      348
         
        844
         

Healthcare - Products - 4.4%

      

Abaxis, Inc.*

    5,900      121

ABIOMED, Inc.*

    9,200      81

Accuray, Inc.*

    8,851      59

Affymetrix, Inc.*

    18,500      110

Align Technology, Inc.*

    15,100      160

Alphatec Holdings, Inc.*

    5,075      17

American Medical Systems Holdings, Inc.*

    18,140      287

Angiodynamics, Inc.*

    6,886      91

Aspect Medical Systems, Inc.*

    2,871      17

Atrion Corp.

    465      62

ATS Medical, Inc.*

    15,186      50

BioMimetic Therapeutics, Inc.*

    3,525      33

Bovie Medical Corp.*

    5,431      47

Bruker Corp.*

    11,664      108

Cantel Medical Corp.*

    3,741      61

Cardiac Science Corp.*

    3,700      15

CardioNet, Inc.*

    6,589      108

Cepheid, Inc.*

    14,800      139

Conceptus, Inc.*

    7,100      120

Conmed Corp.*

    8,075      125

CryoLife, Inc.*

    8,406      47

Cutera, Inc.*

    4,494      39

Cyberonics, Inc.*

    7,573      126

Cynosure, Inc., Class A*

    3,392      26

Delcath Systems, Inc.*

    7,594      27

DexCom, Inc.*

    12,686      79

Electro-Optical Sciences, Inc.*

    5,416      42

Endologix, Inc.*

    8,637      29

ev3, Inc.*

    17,191      184

Exactech, Inc.*

    1,800      26

Genomic Health, Inc.*

    4,140      72

Greatbatch, Inc.*

    5,389      122

Haemonetics Corp. of Massachusetts*

    6,224      355

Hanger Orthopedic Group, Inc.*

    7,100      96

Hansen Medical, Inc.*

    7,437      37

HeartWare International, Inc.*

    1,200      33

ICU Medical, Inc.*

    3,530      145

Immucor, Inc.*

    17,580      242

Insulet Corp.*

    5,744      44

Integra LifeSciences Holdings Corp.*

    4,800      127

Invacare Corp.

    8,062      142

IRIS International, Inc.*

    5,000      59

Kensey Nash Corp.*

    2,512      66

LCA-Vision, Inc.*

    5,992      25

Luminex Corp.*

    11,194      208

MAKO Surgical Corp.*

    2,213      20

Masimo Corp.*

    12,494      301

Medical Action Industries, Inc.*

    3,500      40

 

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Healthcare - Products - 4.4% continued

      

Merge Healthcare, Inc.*

    8,192    $ 35

Meridian Bioscience, Inc.

    10,525      238

Merit Medical Systems, Inc.*

    7,671      125

Micrus Endovascular Corp.*

    4,879      44

Natus Medical, Inc.*

    7,918      91

NuVasive, Inc.*

    9,033      403

NxStage Medical, Inc.*

    6,400      38

OraSure Technologies, Inc.*

    11,100      27

Orthofix International N.V.*

    4,500      113

Orthovita, Inc.*

    18,653      96

Palomar Medical Technologies, Inc.*

    5,164      76

PSS World Medical, Inc.*

    15,124      280

Quidel Corp.*

    7,400      108

Rochester Medical Corp.*

    3,263      44

Rockwell Medical Technologies, Inc.*

    2,548      19

Sirona Dental Systems, Inc.*

    3,900      78

Somanetics Corp.*

    3,623      60

SonoSite, Inc.*

    4,890      98

Spectranetics Corp.*

    7,900      39

Stereotaxis, Inc.*

    8,253      32

STERIS Corp.

    14,371      375

SurModics, Inc.*

    4,339      98

Symmetry Medical, Inc.*

    10,124      94

Synovis Life Technologies, Inc.*

    3,347      69

Thoratec Corp.*

    13,885      372

TomoTherapy, Inc.*

    14,433      40

TranS1, Inc.*

    2,600      16

Vascular Solutions, Inc.*

    3,028      24

Vital Images, Inc.*

    4,475      51

Volcano Corp.*

    13,002      182

West Pharmaceutical Services, Inc.

    7,927      276

Wright Medical Group, Inc.*

    9,700      158

Young Innovations, Inc.

    890      19

Zoll Medical Corp.*

    5,700      110
         
        8,498
         

Healthcare - Services - 2.3%

      

Air Methods Corp.*

    3,071      84

Alliance HealthCare Services, Inc.*

    7,927      58

Almost Family, Inc.*

    2,127      56

Amedisys, Inc.*

    6,654      220

America Service Group, Inc.*

    2,729      44

American Dental Partners, Inc.*

    2,125      19

AMERIGROUP Corp.*

    13,039      350

Amsurg Corp.*

    8,335      179

Assisted Living Concepts, Inc., Class A*

    3,080      45

Bio-Reference Labs, Inc.*

    3,368      107

Capital Senior Living Corp.*

    6,200      28

Centene Corp.*

    10,410      208

Emeritus Corp.*

    4,500      59

Ensign Group (The), Inc.

    2,103      30

Genoptix, Inc.*

    4,631      148

Gentiva Health Services, Inc.*

    7,972      131

Healthsouth Corp.*

    22,400      323

Healthspring, Inc.*

    11,755      128

Healthways, Inc.*

    9,000      121

IPC The Hospitalist Co., Inc.*

    4,410      118

Kindred Healthcare, Inc.*

    9,233      114

LHC Group, Inc.*

    4,307      96

Life Sciences Research, Inc.*

    2,200      16

Magellan Health Services, Inc.*

    9,500      312

Medcath Corp.*

    4,400      52

Molina Healthcare, Inc.*

    3,300      79

National Healthcare Corp.

    1,900      72

Nighthawk Radiology Holdings, Inc.*

    6,600      24

Odyssey HealthCare, Inc.*

    9,420      97

Psychiatric Solutions, Inc.*

    13,861      315

RadNet, Inc.*

    6,400      14

RehabCare Group, Inc.*

    5,084      122

Res-Care, Inc.*

    5,700      82

Skilled Healthcare Group, Inc., Class A*

    6,260      47

Sun Healthcare Group, Inc.*

    12,110      102

Sunrise Senior Living, Inc.*

    11,700      19

Triple-S Management Corp., Class B*

    5,836      91

U.S. Physical Therapy, Inc.*

    3,000      44

Virtual Radiologic Corp.*

    1,700      15

WellCare Health Plans, Inc.*

    10,326      191
         
        4,360
         

Holding Companies - Diversified - 0.0%

      

Compass Diversified Holdings

    7,312      59

Resource America, Inc., Class A

    2,500      14
         
        73
         

Home Builders - 0.4%

      

Amrep Corp.*

    400      4

Beazer Homes USA, Inc.*

    10,700      20

Brookfield Homes Corp.*

    2,267      9

Cavco Industries, Inc.*

    2,124      54

China Housing & Land Development, Inc.*

    6,500      37

 

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Home Builders - 0.4% continued

      

Hovnanian Enterprises, Inc., Class A*

    13,200    $ 31

M/I Homes, Inc.*

    5,100      50

Meritage Homes Corp.*

    7,900      149

Ryland Group, Inc.

    10,436      175

Skyline Corp.

    2,100      46

Standard-Pacific Corp.*

    27,000      55

Winnebago Industries, Inc.

    7,200      53
         
        683
         

Home Furnishings - 0.6%

      

American Woodmark Corp.

    3,057      73

Audiovox Corp., Class A*

    4,000      23

DTS, Inc.*

    4,700      127

Ethan Allen Interiors, Inc.

    5,600      58

Furniture Brands International, Inc.

    10,100      31

Hooker Furniture Corp.

    3,303      38

Kimball International, Inc., Class B

    7,356      46

La-Z-Boy, Inc.

    14,167      67

Sealy Corp.*

    10,200      20

Stanley Furniture Co., Inc.

    1,750      19

Tempur-Pedic International, Inc.

    18,433      241

TiVo, Inc.*

    25,731      270

Universal Electronics, Inc.*

    3,934      79
         
        1,092
         

Household Products/Wares - 0.6%

      

ACCO Brands Corp.*

    12,400      35

American Greetings Corp., Class A

    11,200      131

Blyth, Inc.

    1,700      56

Central Garden and Pet Co., Class A*

    15,200      150

CSS Industries, Inc.

    1,900      39

Ennis, Inc.

    7,465      93

Helen of Troy Ltd.*

    6,900      116

Prestige Brands Holdings, Inc.*

    7,910      48

Standard Register (The) Co.

    3,400      11

Tupperware Brands Corp.

    15,537      404

WD-40 Co.

    4,728      137
         
        1,220
         

Insurance - 3.3%

      

Ambac Financial Group, Inc.

    74,400      68

American Equity Investment Life Holding Co.

    12,600      70

American Physicians Capital, Inc.

    2,200      86

American Physicians Service Group, Inc.

    976      22

American Safety Insurance Holdings Ltd.*

    2,600      35

Amerisafe, Inc.*

    5,542      86

Amtrust Financial Services, Inc.

    6,768      77

Argo Group International Holdings Ltd.*

    7,343      207

Assured Guaranty Ltd.

    14,738      183

Baldwin & Lyons, Inc., Class B

    2,050      40

Citizens, Inc. of Texas*

    8,500      52

CNA Surety Corp.*

    3,800      51

Conseco, Inc.*

    43,788      104

Crawford & Co., Class B*

    6,621      32

Delphi Financial Group, Inc., Class A

    10,936      213

Donegal Group, Inc., Class A

    2,777      42

eHealth, Inc.*

    6,785      120

EMC Insurance Group, Inc.

    1,400      29

Employers Holdings, Inc.

    12,500      169

Enstar Group Ltd.*

    1,549      91

FBL Financial Group, Inc., Class A

    4,100      34

First Acceptance Corp.*

    4,721      10

First Mercury Financial Corp.

    4,418      61

Flagstone Reinsurance Holdings Ltd.

    8,678      89

FPIC Insurance Group, Inc.*

    2,320      71

Greenlight Capital Re Ltd., Class A*

    7,769      135

Harleysville Group, Inc.

    3,911      110

Horace Mann Educators Corp.

    10,200      102

Independence Holding Co.

    1,480      9

Infinity Property & Casualty Corp.

    3,932      143

IPC Holdings Ltd.

    14,252      390

Kansas City Life Insurance Co.

    1,100      30

Life Partners Holdings, Inc.

    2,386      34

Maiden Holdings Ltd.

    14,305      94

Max Capital Group Ltd.

    12,034      222

Meadowbrook Insurance Group, Inc.

    13,157      86

Mercer Insurance Group, Inc.

    634      10

MGIC Investment Corp.

    30,166      133

Montpelier Re Holdings Ltd.

    21,110      281

National Interstate Corp.

    1,400      21

National Western Life Insurance Co., Class A

    500      58

Navigators Group, Inc.*

    3,400      151

NYMAGIC, Inc.

    1,100      15

Phoenix Companies (The), Inc.*

    30,700      51

Platinum Underwriters Holdings Ltd.

    12,700      363

PMA Capital Corp., Class A*

    7,500      34

PMI Group (The), Inc.

    23,800      47

Presidential Life Corp.

    5,000      38

Primus Guaranty Ltd.*

    5,800      14

 

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Insurance - 3.3% continued

      

ProAssurance Corp.*

    8,146    $ 376

Radian Group, Inc.

    22,000      60

RLI Corp.

    4,626      207

Safety Insurance Group, Inc.

    3,994      122

SeaBright Insurance Holdings, Inc.*

    6,560      67

Selective Insurance Group, Inc.

    12,507      160

State Auto Financial Corp.

    3,200      56

Stewart Information Services Corp.

    4,826      69

Tower Group, Inc.

    9,867      245

United America Indemnity Ltd., Class A*

    8,365      40

United Fire & Casualty Co.

    6,205      106

Universal American Corp.*

    8,214      72

Universal Insurance Holdings, Inc.

    4,953      25

Zenith National Insurance Corp.

    8,862      193
         
        6,411
         

Internet - 3.3%

      

1-800-FLOWERS.COM, Inc., Class A*

    6,700      13

AboveNet, Inc.*

    1,689      137

ActivIdentity Corp.*

    7,666      19

Art Technology Group, Inc.*

    34,223      130

AsiaInfo Holdings, Inc.*

    7,999      138

Avocent Corp.*

    11,800      165

Blue Coat Systems, Inc.*

    9,590      159

Blue Nile, Inc.*

    3,500      150

Chordiant Software, Inc.*

    7,520      27

Cogent Communications Group, Inc.*

    12,056      98

comScore, Inc.*

    6,012      80

Constant Contact, Inc.*

    6,620      131

CyberSource Corp.*

    17,273      264

DealerTrack Holdings, Inc.*

    9,100      155

Dice Holdings, Inc.*

    3,575      17

Digital River, Inc.*

    9,469      344

Drugstore.com, Inc.*

    17,000      31

Earthlink, Inc.*

    28,294      210

Entrust, Inc.*

    17,478      32

eResearch Technology, Inc.*

    12,301      76

Global Sources Ltd.*

    3,660      26

GSI Commerce, Inc.*

    6,858      98

i2 Technologies, Inc.*

    4,500      56

Ibasis, Inc.*

    7,200      9

Infospace, Inc.*

    10,059      67

Internap Network Services Corp.*

    14,958      52

Internet Brands, Inc., Class A*

    5,772      40

Internet Capital Group, Inc.*

    10,418      70

j2 Global Communications, Inc.*

    11,200      253

Keynote Systems, Inc.*

    2,900      22

Knot (The), Inc.*

    8,606      68

Limelight Networks, Inc.*

    7,610      33

Lionbridge Technologies*

    10,987      20

Liquidity Services, Inc.*

    3,700      36

LoopNet, Inc.*

    6,800      53

MercadoLibre, Inc.*

    6,500      175

ModusLink Global Solutions, Inc.*

    12,643      87

Move, Inc.*

    36,181      78

NIC, Inc.

    11,539      78

NutriSystem, Inc.

    8,483      123

Online Resources Corp.*

    6,200      39

OpenTable, Inc.*

    1,050      32

Openwave Systems, Inc.*

    24,664      55

Orbitz Worldwide, Inc.*

    9,045      17

Overstock.com, Inc.*

    4,575      55

PC-Tel, Inc.*

    4,800      26

Perficient, Inc.*

    8,168      57

Rackspace Hosting, Inc.*

    16,311      226

RealNetworks, Inc.*

    23,598      71

S1 Corp.*

    14,852      102

Saba Software, Inc.*

    4,560      18

Safeguard Scientifics, Inc.*

    37,813      50

Sapient Corp.*

    22,400      141

Shutterfly, Inc.*

    5,844      82

SonicWALL, Inc.*

    15,029      82

Sourcefire, Inc.*

    6,330      78

Stamps.com, Inc.*

    3,150      27

SumTotal Systems, Inc.*

    9,254      44

support.com, Inc.*

    9,000      20

TechTarget, Inc.*

    2,947      12

TeleCommunication Systems, Inc., Class A*

    10,910      78

Terremark Worldwide, Inc.*

    12,900      75

TIBCO Software, Inc.*

    42,826      307

United Online, Inc.

    19,952      130

ValueClick, Inc.*

    21,700      228

VASCO Data Security International, Inc.*

    7,200      53

Vignette Corp.*

    6,800      89

Vocus, Inc.*

    4,667      92

Web.com Group, Inc.*

    8,064      45

Websense, Inc.*

    11,500      205

Zix Corp.*

    12,476      19
         
        6,375
         

 

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Investment Companies - 0.8%

      

Allied Capital Corp.

    43,015    $ 150

American Capital Ltd.

    52,630      169

Apollo Investment Corp.

    34,713      208

Ares Capital Corp.

    25,100      202

BlackRock Kelso Capital Corp.

    2,700      17

Capital Southwest Corp.

    880      64

Fifth Street Finance Corp.

    5,000      50

Gladstone Capital Corp.

    6,606      50

Gladstone Investment Corp.

    3,700      18

Harris & Harris Group, Inc.*

    6,000      35

Hercules Technology Growth Capital, Inc.

    10,064      84

Kohlberg Capital Corp.

    5,920      37

Main Street Capital Corp.

    1,800      25

MCG Capital Corp.*

    18,400      45

Medallion Financial Corp.

    2,400      18

MVC Capital, Inc.

    6,603      56

NGP Capital Resources Co.

    6,973      41

PennantPark Investment Corp.

    6,475      46

Prospect Capital Corp.

    11,700      107

TICC Capital Corp.

    8,863      39

Triangle Capital Corp.

    1,900      21
         
        1,482
         

Iron/Steel - 0.1%

      

China Precision Steel, Inc.*

    10,305      26

General Steel Holdings, Inc.*

    5,177      20

Olympic Steel, Inc.

    2,500      61

Sutor Technology Group Ltd.*

    1,800      6

Universal Stainless & Alloy*

    1,700      28
         
        141
         

Leisure Time - 0.4%

      

Ambassadors Group, Inc.

    4,300      59

Brunswick Corp.

    20,700      90

Callaway Golf Co.

    17,847      91

Interval Leisure Group, Inc.*

    9,152      85

Life Time Fitness, Inc.*

    9,836      197

Marine Products Corp.

    2,500      9

Multimedia Games, Inc.*

    5,249      26

Polaris Industries, Inc.

    7,801      251

Town Sports International Holdings, Inc.*

    4,600      17

Universal Travel Group*

    2,600      29
         
        854
         

Lodging - 0.3%

      

Ameristar Casinos, Inc.

    6,970      133

Gaylord Entertainment Co.*

    9,300      118

Marcus Corp.

    6,007      63

Monarch Casino & Resort, Inc.*

    3,700      27

Morgans Hotel Group Co.*

    7,500      29

Orient-Express Hotels Ltd., Class A

    18,498      157
         
        527
         

Machinery - Construction & Mining - 0.1%

      

Astec Industries, Inc.*

    4,300      128
         

Machinery - Diversified - 1.3%

      

Alamo Group, Inc.

    1,100      11

Albany International Corp., Class A

    7,767      88

Altra Holdings, Inc.*

    7,900      59

Applied Industrial Technologies, Inc.

    10,753      212

Briggs & Stratton Corp.

    11,600      155

Cascade Corp.

    2,680      42

Chart Industries, Inc.*

    7,400      135

Cognex Corp.

    9,043      128

Columbus McKinnon Corp. of New York*

    5,524      70

DXP Enterprises, Inc.*

    2,560      29

Flow International Corp.*

    9,400      22

Gorman-Rupp (The) Co.

    3,283      66

Hurco Cos., Inc.*

    2,143      34

Intermec, Inc.*

    14,910      192

Intevac, Inc.*

    5,500      48

iRobot Corp.*

    5,617      73

Kadant, Inc.*

    3,915      44

Lindsay Corp.

    3,055      101

Middleby Corp.*

    4,158      183

NACCO Industries, Inc., Class A

    1,600      46

Nordson Corp.

    8,600      333

Raser Technologies, Inc.*

    15,479      43

Robbins & Myers, Inc.

    6,500      125

Sauer-Danfoss, Inc.

    4,400      27

Tecumseh Products Co., Class A*

    5,396      52

Tennant Co.

    4,100      75

Twin Disc, Inc.

    2,200      15
         
        2,408
         

Media - 0.4%

      

Acacia Research - Acacia Technologies*

    9,293      73

Belo Corp., Class A

    20,400      36

CKX, Inc.*

    13,499      96

Courier Corp.

    2,525      38

Crown Media Holdings, Inc., Class A*

    2,500      4

 

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Media - 0.4% continued

      

DG FastChannel, Inc.*

    5,057    $ 92

Dolan Media Co.*

    7,083      91

Fisher Communications, Inc.

    1,500      19

Journal Communications, Inc., Class A

    11,000      11

LIN TV Corp., Class A*

    7,100      12

Lodgenet Interactive Corp.*

    6,516      22

Martha Stewart Living Omnimedia, Inc., Class A*

    6,900      21

Mediacom Communications Corp., Class A*

    11,275      58

Outdoor Channel Holdings, Inc.*

    2,400      14

Playboy Enterprises, Inc., Class B*

    5,400      14

Primedia, Inc.

    6,250      13

Scholastic Corp.

    5,600      111

Sinclair Broadcast Group, Inc., Class A

    13,700      27

Value Line, Inc.

    300      10

World Wrestling Entertainment, Inc., Class A

    6,657      84
         
        846
         

Metal Fabrication/Hardware - 0.9%

      

Ampco-Pittsburgh Corp.

    2,400      56

Castle (A.M.) & Co.

    4,344      53

CIRCOR International, Inc.

    4,724      112

Dynamic Materials Corp.

    3,615      70

Eastern (The) Co.

    960      16

Foster (L.B.) Co., Class A*

    2,917      88

Furmanite Corp.*

    11,048      49

Hawk Corp., Class A*

    2,094      29

Haynes International, Inc.*

    3,429      81

Kaydon Corp.

    8,113      264

Ladish Co., Inc.*

    4,800      62

Lawson Products, Inc.

    1,040      15

Mueller Industries, Inc.

    8,840      184

Mueller Water Products, Inc., Class A

    26,700      100

North American Galvanizing & Coating, Inc.*

    4,515      27

Northwest Pipe Co.*

    2,625      91

RBC Bearings, Inc.*

    6,035      123

RTI International Metals, Inc.*

    5,400      95

Sun Hydraulics, Corp.

    3,680      60

Worthington Industries, Inc.

    15,200      194
         
        1,769
         

Mining - 0.7%

      

Allied Nevada Gold Corp.*

    11,965      96

AMCOL International Corp.

    6,214      134

Brush Engineered Materials, Inc.*

    5,200      87

Century Aluminum Co.*

    10,516      65

Coeur d’Alene Mines Corp.*

    17,653      217

General Moly, Inc.*

    18,859      42

Hecla Mining Co.*

    51,900      139

Horsehead Holding Corp.*

    9,600      72

Kaiser Aluminum Corp.

    4,200      151

Paramount Gold and Silver Corp.*

    21,122      32

Stillwater Mining Co.*

    9,650      55

U.S. Gold Corp.*

    24,071      64

Uranium Energy Corp.*

    13,844      40

USEC, Inc.*

    27,028      144
         
        1,338
         

Miscellaneous Manufacturing - 2.1%

      

Actuant Corp., Class A

    13,664      167

Acuity Brands, Inc.

    10,049      282

American Railcar Industries, Inc.

    3,519      29

Ameron International Corp.

    2,468      165

AZZ, Inc.*

    3,401      117

Barnes Group, Inc.

    11,064      132

Blount International, Inc.*

    9,800      84

Ceradyne, Inc.*

    6,350      112

China Fire & Security Group, Inc.*

    4,278      52

CLARCOR, Inc.

    12,449      363

Colfax Corp.*

    5,267      41

Eastman Kodak Co.

    65,503      194

EnPro Industries, Inc.*

    5,400      97

ESCO Technologies, Inc.*

    6,404      287

Federal Signal Corp.

    11,300      86

Flanders Corp.*

    2,744      17

Freightcar America, Inc.

    3,534      59

GenTek, Inc.*

    2,597      58

Griffon Corp.*

    12,579      105

Hexcel Corp.*

    23,458      224

John Bean Technologies Corp.

    6,301      79

Koppers Holdings, Inc.

    5,400      142

LSB Industries, Inc.*

    4,900      79

Matthews International Corp., Class A

    8,200      255

Metabolix, Inc.*

    5,769      47

Movado Group, Inc.

    4,600      48

Myers Industries, Inc.

    6,806      57

NL Industries, Inc.

    1,800      13

PMFG, Inc.*

    2,800      25

 

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Miscellaneous Manufacturing - 2.1% continued

      

Polypore International, Inc.*

    6,339    $ 71

Raven Industries, Inc.

    4,100      105

Smith & Wesson Holding Corp.*

    14,631      83

Smith (A.O.) Corp.

    5,957      194

Standex International Corp.

    3,940      46

Sturm Ruger & Co., Inc.

    5,576      69

Tredegar Corp.

    8,313      111

Trimas Corp.*

    2,900      10
         
        4,105
         

Office Furnishings - 0.4%

      

Herman Miller, Inc.

    14,400      221

HNI Corp.

    10,800      195

Interface, Inc., Class A

    13,777      86

Knoll, Inc.

    13,230      100

Steelcase, Inc., Class A

    16,362      95
         
        697
         

Oil & Gas - 2.0%

      

Alon USA Energy, Inc.

    2,500      26

APCO Argentina, Inc.

    1,852      36

Approach Resources, Inc.*

    2,326      16

Arena Resources, Inc.*

    9,379      299

Atlas America, Inc.

    9,257      165

ATP Oil & Gas Corp.*

    8,374      58

Berry Petroleum Co., Class A

    10,500      195

Bill Barrett Corp.*

    9,332      256

BPZ Resources, Inc.*

    18,160      89

Brigham Exploration Co.*

    23,134      81

Bronco Drilling Co., Inc.*

    6,500      28

Carrizo Oil & Gas, Inc.*

    7,054      121

Cheniere Energy, Inc.*

    17,058      50

Clayton Williams Energy, Inc.*

    1,935      37

Contango Oil & Gas Co.*

    3,390      144

CVR Energy, Inc.*

    5,703      42

Delek US Holdings, Inc.

    3,900      33

Delta Petroleum Corp.*

    42,856      83

Endeavour International Corp.*

    28,600      39

FX Energy, Inc.*

    9,300      35

Georesources, Inc.*

    1,500      15

GMX Resources, Inc.*

    5,758      61

Goodrich Petroleum Corp.*

    5,820      143

Gran Tierra Energy, Inc.*

    54,481      188

Gulfport Energy Corp.*

    7,600      52

Harvest Natural Resources, Inc.*

    10,562      47

Hercules Offshore, Inc.*

    20,406      81

McMoRan Exploration Co.*

    14,428      86

Northern Oil And Gas, Inc.*

    8,221      52

Oilsands Quest, Inc.*

    43,200      41

Panhandle Oil and Gas, Inc., Class A

    2,338      46

Parallel Petroleum Corp.*

    14,058      27

Parker Drilling Co.*

    27,644      120

Penn Virginia Corp.

    10,967      180

Petroleum Development Corp.*

    4,202      66

Petroquest Energy, Inc.*

    12,300      45

Pioneer Drilling Co.*

    11,500      55

Rex Energy Corp.*

    7,538      43

Rosetta Resources, Inc.*

    14,711      129

Stone Energy Corp.*

    8,735      65

Sulphco, Inc.*

    10,300      9

Swift Energy Co.*

    7,360      123

Toreador Resources Corp.

    6,129      41

Vaalco Energy, Inc.*

    17,202      73

Venoco, Inc.*

    5,890      45

W&T Offshore, Inc.

    7,666      75

Warren Resources, Inc.*

    17,130      42

Western Refining, Inc.*

    6,900      49

Zion Oil & Gas, Inc.*

    4,077      43
         
        3,875
         

Oil & Gas Services - 1.3%

      

Allis-Chalmers Energy, Inc.*

    17,673      41

Basic Energy Services, Inc.*

    7,111      49

Bolt Technology Corp.*

    3,014      34

Boots & Coots , Inc.*

    24,990      35

Cal Dive International, Inc.*

    10,233      88

CARBO Ceramics, Inc.

    4,700      161

Complete Production Services, Inc.*

    13,651      87

Dawson Geophysical Co.*

    2,354      70

Dril-Quip, Inc.*

    7,400      282

Geokinetics, Inc.*

    1,966      27

Global Industries Ltd.*

    23,805      135

Gulf Island Fabrication, Inc.

    3,800      60

Hornbeck Offshore Services, Inc.*

    5,500      118

ION Geophysical Corp.*

    24,300      62

Key Energy Services, Inc.*

    29,485      170

Lufkin Industries, Inc.

    3,900      164

Matrix Service Co.*

    7,291      84

NATCO Group, Inc., Class A*

    5,355      176

Natural Gas Services Group, Inc.*

    3,600      48

 

EQUITY INDEX FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Oil & Gas Services - 1.3% continued

      

Newpark Resources, Inc.*

    20,780    $ 59

OYO Geospace Corp.*

    1,396      36

RPC, Inc.

    6,741      56

Superior Well Services, Inc.*

    4,800      28

T-3 Energy Services, Inc.*

    3,816      45

Tetra Technologies, Inc.*

    18,090      144

TGC Industries, Inc.*

    2,093      10

Union Drilling, Inc.*

    3,300      22

Willbros Group, Inc.*

    9,200      115
         
        2,406
         

Packaging & Containers - 0.4%

      

AEP Industries, Inc.*

    1,712      45

Bway Holding Co.*

    2,350      41

Graphic Packaging Holding Co.*

    35,900      66

Rock-Tenn Co., Class A

    9,425      359

Silgan Holdings, Inc.

    6,500      319
         
        830
         

Pharmaceuticals - 3.4%

      

Adolor Corp.*

    11,200      20

Akorn, Inc.*

    13,700      16

Alkermes, Inc.*

    24,300      263

Allos Therapeutics, Inc.*

    17,031      141

Amicus Therapeutics, Inc.*

    3,121      36

Ardea Biosciences, Inc.*

    4,100      65

Array Biopharma, Inc.*

    11,400      36

Auxilium Pharmaceuticals, Inc.*

    10,564      331

AVANIR Pharmaceuticals, Class A*

    18,237      40

AVI BioPharma, Inc.*

    23,668      37

Biodel, Inc.*

    3,439      18

BioDelivery Sciences International, Inc.*

    3,461      23

BioScrip, Inc.*

    9,305      55

Cadence Pharmaceuticals, Inc.*

    7,052      70

Caraco Pharmaceutical Laboratories Ltd.*

    2,000      6

Catalyst Health Solutions, Inc.*

    8,809      220

China Sky One Medical, Inc.*

    3,155      43

Clarient, Inc.*

    9,723      36

Cornerstone Therapeutics, Inc.*

    2,414      27

Cypress Bioscience, Inc.*

    10,637      100

Cytori Therapeutics, Inc.*

    7,700      28

Depomed, Inc.*

    15,355      50

Durect Corp.*

    18,900      45

Dyax Corp.*

    17,845      38

Hemispherx Biopharma, Inc.*

    30,601      78

Idenix Pharmaceuticals, Inc.*

    6,100      22

I-Flow Corp.*

    5,500      38

Impax Laboratories, Inc.*

    16,563      122

Infinity Pharmaceuticals, Inc.*

    2,917      17

Inspire Pharmaceuticals, Inc.*

    12,417      69

Isis Pharmaceuticals, Inc.*

    23,000      380

Ista Pharmaceuticals, Inc.*

    9,972      42

Javelin Pharmaceuticals, Inc.*

    9,600      12

KV Pharmaceutical Co., Class A*

    11,352      36

Mannatech, Inc.

    3,900      13

MannKind Corp.*

    14,167      118

MAP Pharmaceuticals, Inc.*

    2,341      29

Matrixx Initiatives, Inc.*

    4,514      25

Medarex, Inc.*

    31,735      265

Medicis Pharmaceutical Corp., Class A

    14,341      234

Medivation, Inc.*

    7,658      172

MiddleBrook Pharmaceuticals, Inc.*

    8,700      12

Myriad Pharmaceuticals, Inc.*

    5,964      28

Nabi Biopharmaceuticals*

    12,000      29

Nektar Therapeutics*

    24,100      156

Neogen Corp.*

    3,700      107

Neurocrine Biosciences, Inc.*

    9,200      30

Noven Pharmaceuticals, Inc.*

    6,900      99

Nutraceutical International Corp.*

    1,907      20

Obagi Medical Products, Inc.*

    5,532      40

Omega Protein Corp.*

    6,685      27

Onyx Pharmaceuticals, Inc.*

    14,102      399

Optimer Pharmaceuticals, Inc.*

    7,835      117

Orexigen Therapeutics, Inc.*

    5,548      28

Osiris Therapeutics, Inc.*

    4,908      66

Oxigene, Inc.*

    9,570      21

Pain Therapeutics, Inc.*

    10,281      55

Par Pharmaceutical Cos., Inc.*

    9,473      144

Pharmasset, Inc.*

    6,057      68

PharMerica Corp.*

    8,313      163

Poniard Pharmaceuticals, Inc.*

    7,207      43

Pozen, Inc.*

    5,900      45

Progenics Pharmaceuticals, Inc.*

    8,221      42

Questcor Pharmaceuticals, Inc.*

    16,383      82

Rigel Pharmaceuticals, Inc.*

    9,881      120

Salix Pharmaceuticals Ltd.*

    12,400      122

Santarus, Inc.*

    10,345      29

Savient Pharmaceuticals, Inc.*

    16,152      224

SIGA Technologies, Inc.*

    7,443      63

 

NORTHERN FUNDS QUARTERLY REPORT    17    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Pharmaceuticals - 3.4% continued

      

Spectrum Pharmaceuticals, Inc.*

    9,505    $ 73

Synta Pharmaceuticals Corp.*

    3,500      8

Synutra International, Inc.*

    3,704      41

Theravance, Inc.*

    12,800      187

USANA Health Sciences, Inc.*

    1,923      57

Vanda Pharmaceuticals, Inc.*

    6,284      74

Viropharma, Inc.*

    18,000      107

Vivus, Inc.*

    19,266      117

XenoPort, Inc.*

    7,170      166
         
        6,625
         

Pipelines - 0.0%

      

Crosstex Energy, Inc.

    12,154      51
         

Real Estate - 0.2%

      

Avatar Holdings, Inc.*

    1,400      25

Consolidated-Tomoka Land Co. of Florida

    1,300      46

Forestar Group, Inc.*

    8,800      105

Hilltop Holdings, Inc.*

    11,217      133
         
        309
         

Real Estate Investment Trusts - 5.3%

      

Acadia Realty Trust

    10,958      143

Agree Realty Corp.

    2,355      43

Alexander’s, Inc.

    500      135

American Campus Communities, Inc.

    12,703      282

American Capital Agency Corp.

    2,900      67

Anthracite Capital, Inc.

    14,300      9

Anworth Mortgage Asset Corp.

    27,945      202

Ashford Hospitality Trust, Inc.

    19,781      56

Associated Estates Realty Corp.

    5,888      35

BioMed Realty Trust, Inc.

    23,991      245

CapLease, Inc.

    15,207      42

Capstead Mortgage Corp.

    17,276      220

Care Investment Trust, Inc.

    1,800      9

CBL & Associates Properties, Inc.

    17,040      92

Cedar Shopping Centers, Inc.

    11,000      50

Cogdell Spencer, Inc.

    9,045      39

Colonial Properties Trust

    12,600      93

Cousins Properties, Inc.

    11,793      100

DCT Industrial Trust, Inc.

    41,820      171

Developers Diversified Realty Corp.

    33,235      162

DiamondRock Hospitality Co.

    26,300      165

DuPont Fabros Technology, Inc.

    5,945      56

Dynex Capital, Inc.

    2,037      17

EastGroup Properties, Inc.

    6,400      211

Education Realty Trust, Inc.

    6,760      29

Entertainment Properties Trust

    8,349      172

Equity Lifestyle Properties, Inc.

    4,910      183

Equity One, Inc.

    8,843      117

Extra Space Storage, Inc.

    21,800      182

FelCor Lodging Trust, Inc.

    19,300      48

First Industrial Realty Trust, Inc.

    12,700      55

First Potomac Realty Trust

    8,248      80

Franklin Street Properties Corp.

    15,242      202

Getty Realty Corp.

    5,266      99

Gladstone Commercial Corp.

    1,452      19

Glimcher Realty Trust

    10,800      31

Gramercy Capital Corp. of New York*

    13,279      21

Hatteras Financial Corp.

    8,772      251

Healthcare Realty Trust, Inc.

    14,191      239

Hersha Hospitality Trust

    14,400      36

Highwoods Properties, Inc.

    17,357      388

Home Properties, Inc.

    7,955      271

Inland Real Estate Corp.

    19,900      139

Investors Real Estate Trust

    16,897      150

iStar Financial, Inc.

    23,409      67

Kilroy Realty Corp.

    8,521      175

Kite Realty Group Trust

    14,824      43

LaSalle Hotel Properties

    12,600      156

Lexington Realty Trust

    17,977      61

LTC Properties, Inc.

    6,663      136

Medical Properties Trust, Inc.

    20,700      126

MFA Financial, Inc.

    54,524      377

Mid-America Apartment Communities, Inc.

    6,779      249

Mission West Properties, Inc.

    3,400      23

Monmouth Reit, Class A

    3,000      18

National Health Investors, Inc.

    7,218      193

National Retail Properties, Inc.

    19,506      338

NorthStar Realty Finance Corp.

    18,413      52

Omega Healthcare Investors, Inc.

    20,430      317

Parkway Properties, Inc. of Maryland

    6,412      83

Pennsylvania Real Estate Investment Trust

    9,701      49

Post Properties, Inc.

    10,200      137

Potlatch Corp.

    9,559      232

PS Business Parks, Inc.

    4,186      203

RAIT Financial Trust

    14,200      19

Ramco-Gershenson Properties Trust

    4,600      46

Redwood Trust, Inc.

    18,974      280

Resource Capital Corp.

    5,000      16

 

EQUITY INDEX FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Real Estate Investment Trusts - 5.3% continued

      

Saul Centers, Inc.

    2,200    $ 65

Sovran Self Storage, Inc.

    6,378      157

Strategic Hotels & Resorts, Inc.

    24,613      27

Sun Communities, Inc.

    5,056      70

Sunstone Hotel Investors, Inc.

    19,609      105

Tanger Factory Outlet Centers, Inc.

    8,890      288

Universal Health Realty Income Trust

    3,300      104

Urstadt Biddle Properties, Inc., Class A

    6,110      86

U-Store-It Trust

    14,479      71

Walter Investment Management Corp.*

    4,958      66

Washington Real Estate Investment Trust

    14,097      315

Winthrop Realty Trust

    4,196      37
         
        10,143
         

Retail - 5.9%

      

99 Cents Only Stores*

    10,900      148

AFC Enterprises, Inc.*

    7,771      52

Allion Healthcare, Inc.*

    3,569      21

America’s Car-Mart, Inc.*

    2,900      59

AnnTaylor Stores Corp.*

    14,048      112

Asbury Automotive Group, Inc.

    7,900      81

Bebe Stores, Inc.

    7,750      53

Big 5 Sporting Goods Corp.

    6,100      67

BJ’s Restaurants, Inc.*

    5,691      96

Bob Evans Farms, Inc.

    7,600      218

Borders Group, Inc.*

    14,433      53

Brown Shoe Co., Inc.

    11,400      83

Buckle (The), Inc.

    6,154      196

Buffalo Wild Wings, Inc.*

    4,269      139

Build-A-Bear Workshop, Inc.*

    4,400      20

Cabela’s, Inc.*

    9,400      116

California Pizza Kitchen, Inc.*

    5,900      78

Caribou Coffee Co., Inc.*

    2,870      18

Casey’s General Stores, Inc.

    13,000      334

Cash America International, Inc.

    7,118      166

Cato (The) Corp., Class A

    7,768      135

CEC Entertainment, Inc.*

    5,418      160

Charlotte Russe Holding, Inc.*

    5,900      76

Charming Shoppes, Inc.*

    28,098      105

Cheesecake Factory (The), Inc.*

    14,674      254

Children’s Place Retail Stores (The), Inc.*

    5,715      151

Christopher & Banks Corp.

    10,389      70

Citi Trends, Inc.*

    3,900      101

CKE Restaurants, Inc.

    12,000      102

Coldwater Creek, Inc.*

    15,712      95

Collective Brands, Inc.*

    15,731      229

Conn’s, Inc.*

    3,104      39

Cracker Barrel Old Country Store, Inc.

    5,800      162

Denny’s Corp.*

    27,753      60

Dillard’s, Inc., Class A

    13,200      121

DineEquity, Inc.

    4,300      134

Domino’s Pizza, Inc.*

    10,400      78

Dress Barn, Inc.*

    12,152      174

DSW, Inc., Class A*

    3,900      38

Einstein Noah Restaurant Group, Inc.*

    1,854      16

Ezcorp, Inc., Class A*

    12,437      134

Finish Line (The), Inc., Class A

    11,684      87

First Cash Financial Services, Inc.*

    6,447      113

Fred’s, Inc., Class A

    11,088      140

Fuqi International, Inc.*

    2,957      61

Gaiam, Inc., Class A*

    5,334      29

Genesco, Inc.*

    4,453      84

Group 1 Automotive, Inc.

    5,725      149

Gymboree Corp.*

    7,157      254

Haverty Furniture Cos., Inc.

    5,610      51

hhgregg, Inc.*

    3,245      49

Hibbett Sports, Inc.*

    7,828      141

HOT Topic, Inc.*

    12,025      88

HSN, Inc.*

    9,388      99

J. Crew Group, Inc.*

    12,464      337

Jack in the Box, Inc.*

    14,600      328

Jo-Ann Stores, Inc.*

    6,265      129

Jos. A. Bank Clothiers, Inc.*

    4,533      156

Kenneth Cole Productions, Inc., Class A

    2,342      16

Kirkland’s, Inc.*

    3,902      47

Krispy Kreme Doughnuts, Inc.*

    14,400      43

Landry’s Restaurants, Inc.*

    2,916      25

Lithia Motors, Inc., Class A

    5,128      47

Liz Claiborne, Inc.

    22,150      64

Luby’s, Inc.*

    4,300      17

Lululemon Athletica, Inc.*

    9,791      128

Lumber Liquidators, Inc.*

    4,234      67

McCormick & Schmick’s Seafood Restaurants, Inc.*

    4,811      37

Men’s Wearhouse (The), Inc.

    12,774      245

New York & Co., Inc.*

    5,400      17

Nu Skin Enterprises, Inc., Class A

    12,800      196

O’Charleys, Inc.

    5,200      48

OfficeMax, Inc.

    18,333      115

P.F. Chang’s China Bistro, Inc.*

    5,645      181

 

NORTHERN FUNDS QUARTERLY REPORT    19    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Retail - 5.9% continued

      

Pacific Sunwear of California, Inc.*

    18,000    $ 61

Pantry (The), Inc.*

    6,262      104

Papa John’s International, Inc.*

    6,082      151

PC Connection, Inc.*

    1,600      8

PC Mall, Inc.*

    2,800      19

Pep Boys - Manny, Moe & Jack

    11,300      115

PetMed Express, Inc.*

    6,612      99

Pier 1 Imports, Inc.*

    22,900      46

Pricesmart, Inc.

    4,641      78

Red Robin Gourmet Burgers, Inc.*

    4,401      83

Regis Corp.

    10,575      184

Retail Ventures, Inc.*

    7,200      16

Rex Stores Corp.*

    1,500      15

Ruby Tuesday, Inc.*

    13,400      89

Rush Enterprises, Inc., Class A*

    8,935      104

Ruth’s Hospitality Group Inc.*

    6,300      23

Saks, Inc.*

    28,826      128

Sally Beauty Holdings, Inc.*

    21,900      139

Shoe Carnival, Inc.*

    2,200      26

Sonic Automotive, Inc., Class A

    6,037      61

Sonic Corp.*

    14,433      145

Stage Stores, Inc.

    9,075      101

Steak n Shake (The) Co.*

    7,104      62

Stein Mart, Inc.*

    7,000      62

Steinway Musical Instruments*

    1,700      18

Susser Holdings Corp.*

    1,400      16

Systemax, Inc.*

    3,247      39

Talbots, Inc.

    6,600      36

Texas Roadhouse, Inc., Class A*

    12,600      137

Tractor Supply Co.*

    8,797      363

Tuesday Morning Corp.*

    7,500      25

Tween Brands, Inc.*

    7,100      47

Ulta Salon Cosmetics & Fragrance, Inc.*

    6,123      68

Wet Seal (The), Inc., Class A*

    26,965      83

World Fuel Services Corp.

    7,217      298

Zale Corp.*

    9,200      32

Zumiez, Inc.*

    6,087      49
         
        11,262
         

Savings & Loans - 1.3%

      

Abington Bancorp, Inc.

    6,947      55

Astoria Financial Corp.

    23,045      198

BankFinancial Corp.

    6,705      59

Beneficial Mutual Bancorp, Inc.*

    9,958      96

Berkshire Hills Bancorp, Inc.

    4,161      86

Brookline Bancorp, Inc.

    16,103      150

Cape Bancorp, Inc.*

    1,600      14

Clifton Savings Bancorp, Inc.

    2,500      27

Danvers Bancorp, Inc.

    5,200      70

Dime Community Bancshares

    8,106      74

ESB Financial Corp.

    1,353      18

ESSA Bancorp, Inc.

    4,946      68

First Defiance Financial Corp.

    1,206      16

First Financial Holdings, Inc.

    3,932      37

First Financial Northwest, Inc.

    4,500      35

Flagstar Bancorp, Inc.*

    15,400      10

Flushing Financial Corp.

    6,647      62

Home Bancorp, Inc.*

    1,400      17

Home Federal Bancorp, Inc. of Idaho

    3,083      31

Investors Bancorp, Inc.*

    13,407      123

Kearny Financial Corp.

    4,000      46

Meridian Interstate Bancorp, Inc.*

    1,300      10

NASB Financial, Inc.

    800      23

NewAlliance Bancshares, Inc.

    28,645      329

Northfield Bancorp, Inc.

    3,746      43

Northwest Bancorp, Inc.

    5,330      100

OceanFirst Financial Corp.

    1,300      16

Oritani Financial Corp.*

    2,600      36

Provident Financial Services, Inc.

    16,611      151

Provident New York Bancorp

    10,479      85

Rockville Financial, Inc.

    2,200      24

Roma Financial Corp.

    3,273      42

United Financial Bancorp, Inc.

    5,000      69

ViewPoint Financial Group

    2,600      40

Waterstone Financial, Inc.*

    1,700      5

Westfield Financial, Inc.

    9,753      88

WSFS Financial Corp.

    1,981      54
         
        2,407
         

Semiconductors - 3.1%

      

Actel Corp.*

    7,558      81

Advanced Analogic Technologies, Inc.*

    13,032      60

Amkor Technology, Inc.*

    26,900      127

Anadigics, Inc.*

    16,200      68

Applied Micro Circuits Corp.*

    17,075      139

ATMI, Inc.*

    7,800      121

Brooks Automation, Inc.*

    14,644      66

Cabot Microelectronics Corp.*

    6,438      182

Cavium Networks, Inc.*

    8,598      144

Ceva, Inc.*

    4,100      36

 

EQUITY INDEX FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Semiconductors - 3.1% continued

      

Cirrus Logic, Inc.*

    18,521    $ 83

Cohu, Inc.

    7,002      63

Diodes, Inc.*

    7,737      121

DSP Group, Inc.*

    5,300      36

EMCORE Corp.*

    22,300      28

Emulex Corp.*

    20,200      197

Entegris, Inc.*

    31,577      86

Entropic Communications, Inc.*

    11,180      25

Exar Corp.*

    10,790      78

Formfactor, Inc.*

    11,868      205

Hittite Microwave Corp.*

    5,547      193

Intellon Corp.*

    3,924      17

IXYS Corp.

    6,939      70

Kopin Corp.*

    19,499      72

Kulicke & Soffa Industries, Inc.*

    16,400      56

Lattice Semiconductor Corp.*

    35,024      66

Micrel, Inc.

    13,391      98

Microsemi Corp.*

    19,700      272

Microtune, Inc.*

    12,800      30

MIPS Technologies, Inc.*

    13,572      41

MKS Instruments, Inc.*

    11,400      150

Monolithic Power Systems, Inc.*

    8,168      183

Netlogic Microsystems, Inc.*

    4,300      157

Omnivision Technologies, Inc.*

    12,100      126

Pericom Semiconductor Corp.*

    7,700      65

Photronics, Inc.*

    12,140      49

PLX Technology, Inc.*

    7,200      27

Power Integrations, Inc.

    6,772      161

Rubicon Technology, Inc.*

    3,300      47

Rudolph Technologies, Inc.*

    9,226      51

Semitool, Inc.*

    6,100      28

Semtech Corp.*

    14,900      237

Sigma Designs, Inc.*

    7,271      117

Silicon Image, Inc.*

    22,431      52

Skyworks Solutions, Inc.*

    41,656      407

Standard Microsystems Corp.*

    6,000      123

Supertex, Inc.*

    3,300      83

Techwell, Inc.*

    5,080      43

Tessera Technologies, Inc.*

    12,001      303

TriQuint Semiconductor, Inc.*

    39,233      208

Ultratech, Inc.*

    6,874      85

Veeco Instruments, Inc.*

    8,800      102

Volterra Semiconductor Corp.*

    6,500      85

White Electronic Designs Corp.*

    2,797      13

Zoran Corp.*

    13,153      143
         
        5,906
         

Shipbuilding - 0.0%

      

Todd Shipyards Corp.

    804      13
         

Software - 4.8%

      

Accelrys, Inc.*

    8,859      52

ACI Worldwide, Inc.*

    9,717      136

Actuate Corp.*

    13,072      62

Acxiom Corp.

    16,345      144

Advent Software, Inc.*

    4,200      138

American Reprographics Co.*

    9,640      80

American Software, Inc., Class A

    3,900      22

AMICAS, Inc.*

    5,624      16

ArcSight, Inc.*

    5,100      91

Ariba, Inc.*

    21,250      209

Athenahealth, Inc.*

    8,766      324

Avid Technology, Inc.*

    6,900      93

Blackbaud, Inc.

    10,216      159

Blackboard, Inc.*

    8,000      231

Bottomline Technologies, Inc.*

    5,500      50

Bowne & Co., Inc.

    7,804      51

Callidus Software, Inc.*

    5,900      17

CommVault Systems, Inc.*

    11,184      185

Computer Programs & Systems, Inc.

    2,802      107

Concur Technologies, Inc.*

    10,132      315

CSG Systems International, Inc.*

    9,903      131

DemandTec, Inc.*

    4,100      36

Digi International, Inc.*

    7,266      71

DivX, Inc.*

    6,300      35

Double-Take Software, Inc.*

    5,200      45

Ebix, Inc.*

    1,900      60

Eclipsys Corp.*

    14,000      249

Epicor Software Corp.*

    14,000      74

EPIQ Systems, Inc.*

    8,825      135

Fair Isaac Corp.

    11,735      181

FalconStor Software, Inc.*

    10,262      49

GSE Systems, Inc.*

    2,624      18

infoGROUP, Inc.*

    7,550      43

Informatica Corp.*

    22,300      383

Innerworkings, Inc.*

    7,294      35

Interactive Intelligence, Inc.*

    3,858      47

JDA Software Group, Inc.*

    7,000      105

Lawson Software, Inc.*

    33,063      184

Mantech International Corp., Class A*

    5,300      228

 

NORTHERN FUNDS QUARTERLY REPORT    21    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Software - 4.8% continued

      

MedAssets, Inc.*

    10,683    $ 208

MicroStrategy, Inc., Class A*

    2,400      121

Monotype Imaging Holdings, Inc.*

    4,402      30

MSC.Software Corp.*

    10,400      69

NetSuite, Inc.*

    3,464      41

Omnicell, Inc.*

    8,890      96

Omniture, Inc.*

    16,603      209

OpenTV Corp., Class A*

    18,700      25

OPNET Technologies, Inc.

    2,500      23

Parametric Technology Corp.*

    28,569      334

Pegasystems, Inc.

    4,100      108

Phase Forward, Inc.*

    11,625      176

Phoenix Technologies Ltd.*

    7,200      20

Progress Software Corp.*

    9,600      203

PROS Holdings, Inc.*

    3,930      32

QAD, Inc.

    2,900      9

Quality Systems, Inc.

    5,793      330

Quest Software, Inc.*

    16,600      231

Renaissance Learning, Inc.

    2,300      21

RightNow Technologies, Inc.*

    6,600      78

Rosetta Stone, Inc.*

    1,874      51

Schawk, Inc.

    3,500      26

Seachange International, Inc.*

    9,309      75

Smith Micro Software, Inc.*

    8,300      81

SolarWinds, Inc.*

    2,323      38

Solera Holdings, Inc.*

    17,231      438

SPSS, Inc.*

    5,081      170

Synchronoss Technologies, Inc.*

    5,472      67

SYNNEX Corp.*

    4,700      117

Take-Two Interactive Software, Inc.

    19,517      185

Taleo Corp., Class A*

    7,466      136

THQ, Inc.*

    17,725      127

Trident Microsystems, Inc.*

    20,347      35

Tyler Technologies, Inc.*

    9,022      141

Ultimate Software Group, Inc.*

    6,647      161

VeriFone Holdings, Inc.*

    17,397      131

Wind River Systems, Inc.*

    18,267      209
         
        9,143
         

Storage/Warehousing - 0.1%

      

Mobile Mini, Inc.*

    9,689      142
         

Telecommunications - 4.8%

      

3Com Corp.*

    98,701      465

Acme Packet, Inc.*

    9,047      92

Adaptec, Inc.*

    28,000      74

ADC Telecommunications, Inc.*

    23,581      188

Adtran, Inc.

    14,200      305

Airvana, Inc.*

    7,963      51

Alaska Communications Systems Group, Inc.

    12,727      93

Anaren, Inc.*

    4,300      76

Anixter International, Inc.*

    7,265      273

Applied Signal Technology, Inc.

    3,803      97

Arris Group, Inc.*

    30,866      375

Aruba Networks, Inc.*

    14,135      124

Atheros Communications, Inc.*

    14,972      288

Atlantic Tele-Network, Inc.

    2,559      101

BigBand Networks, Inc.*

    7,583      39

Black Box Corp.

    4,770      160

Cbeyond, Inc.*

    6,300      90

Centennial Communications Corp.*

    20,199      169

Cincinnati Bell, Inc.*

    56,678      161

Comtech Telecommunications Corp.*

    6,725      214

Consolidated Communications Holdings, Inc.

    6,956      81

CPI International, Inc.*

    1,900      16

D&E Communications, Inc.

    4,479      46

DigitalGlobe, Inc.*

    3,725      71

EMS Technologies, Inc.*

    4,496      94

Extreme Networks, Inc.*

    26,831      54

Fairpoint Communications, Inc.

    26,810      16

Fibernet Telecom Group, Inc.*

    2,172      27

General Communication, Inc., Class A*

    10,700      74

GeoEye, Inc.*

    5,121      121

Global Crossing Ltd.*

    6,430      59

Globecomm Systems, Inc.*

    4,000      29

Harmonic, Inc.*

    23,024      136

Harris Stratex Networks, Inc., Class A*

    15,700      102

Hickory Tech Corp.

    1,747      13

Hughes Communications, Inc.*

    1,800      41

Infinera Corp.*

    21,766      199

InterDigital, Inc.*

    11,135      272

Iowa Telecommunications Services, Inc.

    9,367      117

iPCS, Inc.*

    4,851      73

IPG Photonics Corp.*

    5,006      55

Ixia*

    10,200      69

Knology, Inc.*

    8,543      74

KVH Industries, Inc.*

    2,274      15

Loral Space & Communications, Inc.*

    3,000      77

MasTec, Inc.*

    12,534      147

 

EQUITY INDEX FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 99.1% continued

      

Telecommunications - 4.8% continued

      

Netgear, Inc.*

    9,396    $ 135

Network Equipment Technologies, Inc.*

    5,136      22

Neutral Tandem, Inc.*

    8,291      245

Novatel Wireless, Inc.*

    8,500      77

NTELOS Holdings Corp.

    6,900      127

Oplink Communications, Inc.*

    6,072      69

Opnext, Inc.*

    4,732      10

PAETEC Holding Corp.*

    29,587      80

Parkervision, Inc.*

    5,400      16

Plantronics, Inc.

    11,883      225

Polycom, Inc.*

    21,355      433

Powerwave Technologies, Inc.*

    37,000      60

Preformed Line Products Co.

    500      22

Premiere Global Services, Inc.*

    14,300      155

RCN Corp.*

    10,451      62

RF Micro Devices, Inc.*

    65,696      247

SAVVIS, Inc.*

    9,000      103

Shenandoah Telecommunications Co.

    6,622      134

ShoreTel, Inc.*

    10,178      81

Sonus Networks, Inc.*

    47,300      76

Starent Networks Corp.*

    9,606      234

SureWest Communications*

    2,583      27

Switch & Data Facilities Co., Inc.*

    5,078      60

Sycamore Networks, Inc.*

    45,252      142

Symmetricom, Inc.*

    12,778      74

Syniverse Holdings, Inc.*

    16,646      267

Tekelec*

    16,131      271

USA Mobility, Inc.

    6,707      86

UTStarcom, Inc.*

    25,300      41

Viasat, Inc.*

    7,132      183

Virgin Mobile USA, Inc., Class A*

    8,683      35
         
        9,312
         

Textiles - 0.1%

      

G&K Services, Inc., Class A

    5,202      110

Unifirst Corp. of Massachusetts

    3,897      145
         
        255
         

Toys, Games & Hobbies - 0.1%

      

Jakks Pacific, Inc.*

    7,874      101

Leapfrog Enterprises, Inc.*

    11,516      26

RC2 Corp.*

    4,909      65
         
        192
         

Transportation - 1.9%

      

Air Transport Services Group, Inc.*

    16,409      38

American Commercial Lines, Inc.*

    2,757      43

Arkansas Best Corp.

    6,025      159

Atlas Air Worldwide Holdings, Inc.*

    3,948      92

Bristow Group, Inc.*

    7,078      210

CAI International, Inc.*

    1,400      7

Celadon Group, Inc.*

    6,710      56

DHT Maritime, Inc.

    13,500      70

Dynamex, Inc.*

    3,065      47

Eagle Bulk Shipping, Inc.

    12,300      58

Forward Air Corp.

    7,650      163

Genco Shipping & Trading Ltd.

    6,192      135

General Maritime Corp.

    11,276      112

Genesee & Wyoming, Inc., Class A*

    8,330      221

Golar LNG Ltd.

    8,500      73

Gulfmark Offshore, Inc.*

    5,300      146

Heartland Express, Inc.

    12,845      189

Horizon Lines, Inc., Class A

    9,633      37

HUB Group, Inc., Class A*

    9,000      186

International Shipholding Corp.

    1,942      52

Knight Transportation, Inc.

    13,713      227

Knightsbridge Tankers Ltd.

    4,900      67

Marten Transport Ltd.*

    4,523      94

Nordic American Tanker Shipping

    10,310      328

Old Dominion Freight Line, Inc.*

    6,672      224

Pacer International, Inc.

    12,019      27

Patriot Transportation Holding, Inc.*

    400      29

PHI, Inc.*

    3,100      53

Saia, Inc.*

    3,900      70

Ship Finance International Ltd.

    11,300      125

TBS International Ltd., Class A*

    4,235      33

Teekay Tankers Ltd., Class A

    3,800      35

Ultrapetrol Bahamas Ltd.*

    7,100      31

Universal Truckload Services, Inc.

    1,500      23

USA Truck, Inc.*

    1,099      15

Werner Enterprises, Inc.

    9,900      179

YRC Worldwide, Inc.*

    15,000      26
         
        3,680
         

Trucking & Leasing - 0.1%

      

Aircastle Ltd.

    10,800      79

AMERCO, Inc.*

    2,200      82

Greenbrier Cos., Inc.

    5,181      37

TAL International Group, Inc.

    3,400      37

Textainer Group Holdings Ltd.

    2,000      23
         
        258
         

 

NORTHERN FUNDS QUARTERLY REPORT    23    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)		  

COMMON STOCKS - 99.1% continued

      

Water - 0.4%

      

American States Water Co.

      5,297    $ 183   

Artesian Resources Corp., Class A

      297      5   

California Water Service Group

      5,000      184   

Connecticut Water Service, Inc.

      1,300      28   

Consolidated Water Co., Inc.

      4,200      67   

Middlesex Water Co.

      4,771      69   

Pennichuck Corp.

      380      9   

Pico Holdings, Inc.*

      5,173      148   

SJW Corp.

      3,960      90   

Southwest Water Co.

      7,297      40   

York Water Co.

      1,683      26   
           
        849   
           

Total Common Stocks

      
           

(Cost $241,466)

         190,707   

INVESTMENT COMPANIES - 0.0%

      

Kayne Anderson Energy Development Co.

      3,293      44   
           

Total Investment Companies

      
           

(Cost $72)

         44   

RIGHTS - 0.0%

      

Sealy Corp.*

      10,200      22   
           

Total Rights

      
           

(Cost $ — )

         22   
     NUMBER
OF
WARRANTS		       

WARRANTS - 0.0%

      

Krispy Kreme Doughnuts, Inc., Exp. 3/2/12, Strike $12.21*

      429      —     

Lantronix, Inc., Exp. 2/9/11*

      141      —     

Total Warrants

      
           

(Cost $ — )

         —     
           
     PRINCIPAL
AMOUNT
(000S)		       

SHORT-TERM INVESTMENTS - 2.0%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 3,220      3,220   

U.S. Treasury Bill,

      

0.29%, 11/19/09(1)

     620      619   
           

Total Short-Term Investments

      
           

(Cost $3,839)

         3,839   
           

Total Investments - 101.1%

      
           

(Cost $245,377)

         194,612   

Liabilities less Other Assets - (1.1)%

         (2,158 ) 
           

NET ASSETS - 100.0%

       $ 192,454   

 

(1) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Small Cap Index Fund had open futures contracts as follows:

 

TYPE

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

Russell 2000 Mini

    34    $ 1,724    Long    9/09    $ 11
                            

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

 

EQUITY INDEX FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Small Cap Index Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 190,707 (1)    $ —      $ —      $ 190,707

Investment Companies

      44        —        —        44

Rights

      22        —        —        22

Warrants

      —          —        —        —  

Short-Term Investments

      —          3,839      —        3,839
                            

Total Investments

    $ 190,773      $ 3,839    $ —      $ 194,612
                            

Other Financial Instruments*

    $ 11      $ —      $ —      $ 11
                            

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

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

 

     INVESTMENTS
IN SECURITIES
(000S)		  

Balance as of 3/31/09

    $ 1   

Realized gain (loss)

      —     

Change in unrealized appreciation/depreciation

      —     

Net Purchases (Sales)

      (1 ) 

Transfers in and/or out of Level 3

      —     
        

Balance as of 6/30/09

    $ —     

The amount of change in unrealized gain (loss) due to investments in level 3 securities held at June 30, 2009 was $0.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 245,377   
        

Gross tax appreciation of investments

    $ 18,298   

Gross tax depreciation of investments

      (69,063 ) 
        

Net tax depreciation of investments

    $ (50,765 ) 
        

 

NORTHERN FUNDS QUARTERLY REPORT    25    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2%

      

Advertising - 0.1%

      

Interpublic Group of Cos. (The), Inc.*

    55,935    $ 283

Omnicom Group, Inc.

    43,200      1,364
         
        1,647
         

Aerospace/Defense - 2.2%

      

Boeing (The) Co.

    97,468      4,142

General Dynamics Corp.

    52,700      2,919

Goodrich Corp.

    15,300      765

L-3 Communications Holdings, Inc.

    15,400      1,068

Lockheed Martin Corp.

    44,646      3,601

Northrop Grumman Corp.

    43,398      1,982

Raytheon Co.

    54,400      2,417

Rockwell Collins, Inc.

    19,500      814

United Technologies Corp.

    127,500      6,625
         
        24,333
         

Agriculture - 1.9%

      

Altria Group, Inc.

    281,300      4,611

Archer-Daniels-Midland Co.

    87,392      2,340

Lorillard, Inc.

    23,503      1,593

Philip Morris International, Inc.

    261,100      11,389

Reynolds American, Inc.

    20,200      780
         
        20,713
         

Airlines - 0.1%

      

Southwest Airlines Co.

    96,430      649
         

Apparel - 0.4%

      

Coach, Inc.

    42,500      1,143

NIKE, Inc., Class B

    52,900      2,739

Polo Ralph Lauren Corp.

    6,600      353

VF Corp.

    11,828      655
         
        4,890
         

Auto Manufacturers - 0.4%

      

Ford Motor Co.*

    426,603      2,589

PACCAR, Inc.

    49,478      1,609
         
        4,198
         

Auto Parts & Equipment - 0.2%

      

Goodyear Tire & Rubber (The) Co.*

    33,558      378

Johnson Controls, Inc.

    80,500      1,748
         
        2,126
         

Banks - 8.0%

      

Bank of America Corp.

    1,081,303      14,273

Bank of New York Mellon Corp.

    161,847      4,744

BB&T Corp.

    87,900      1,932

Capital One Financial Corp.

    60,203      1,317

Citigroup, Inc.

    730,461      2,169

Comerica, Inc.

    21,250      449

Fifth Third Bancorp

    100,930      717

First Horizon National Corp.*

    30,461      365

First Horizon National Corp. - Fractional Shares*

    115,436      —  

Goldman Sachs Group (The), Inc.

    67,152      9,901

Huntington Bancshares, Inc.

    77,872      325

JPMorgan Chase & Co.

    521,103      17,775

KeyCorp

    98,900      518

M&T Bank Corp.

    11,900      606

Marshall & Ilsley Corp.

    46,499      223

Morgan Stanley

    179,818      5,127

Northern Trust Corp.(1) (2)

    29,000      1,557

PNC Financial Services Group, Inc.

    62,604      2,430

Regions Financial Corp.

    160,204      647

State Street Corp.

    65,500      3,092

SunTrust Banks, Inc.

    63,200      1,040

U.S. Bancorp

    256,677      4,600

Wells Fargo & Co.

    622,200      15,095

Zions Bancorporation

    17,400      201
         
        89,103
         

Beverages - 2.5%

      

Brown-Forman Corp., Class B

    11,725      504

Coca-Cola (The) Co.

    265,500      12,741

Coca-Cola Enterprises, Inc.

    39,500      658

Constellation Brands, Inc., Class A*

    26,800      340

Dr Pepper Snapple Group, Inc.*

    31,500      668

Molson Coors Brewing Co., Class B

    20,700      876

Pepsi Bottling Group, Inc.

    19,100      646

PepsiCo, Inc.

    209,880      11,535
         
        27,968
         

Biotechnology - 1.9%

      

Amgen, Inc.*

    136,736      7,239

Biogen Idec, Inc.*

    37,755      1,705

Celgene Corp.*

    61,500      2,942

Genzyme Corp.*

    37,300      2,076

Gilead Sciences, Inc.*

    119,988      5,620

Life Technologies Corp.*

    23,433      978

Millipore Corp.*

    7,300      512
         
        21,072
         

 

EQUITY INDEX FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2% continued

      

Building Materials - 0.0%

      

Masco Corp.

    47,600    $ 456
         

Chemicals - 1.8%

      

Air Products & Chemicals, Inc.

    29,100      1,880

CF Industries Holdings, Inc.

    6,700      497

Dow Chemical (The) Co.

    144,871      2,338

du Pont (E.I.) de Nemours & Co.

    123,477      3,163

Eastman Chemical Co.

    8,775      333

Ecolab, Inc.

    20,500      799

International Flavors & Fragrances, Inc.

    8,600      281

Monsanto Co.

    72,982      5,425

PPG Industries, Inc.

    22,300      979

Praxair, Inc.

    42,100      2,992

Sherwin-Williams (The) Co.

    13,100      704

Sigma-Aldrich Corp.

    16,900      838
         
        20,229
         

Coal - 0.2%

      

Consol Energy, Inc.

    24,200      822

Massey Energy Co.

    12,900      252

Peabody Energy Corp.

    35,200      1,061
         
        2,135
         

Commercial Services - 1.2%

      

Apollo Group, Inc., Class A*

    14,300      1,017

Automatic Data Processing, Inc.

    68,700      2,435

Convergys Corp.*

    12,900      120

DeVry, Inc.

    8,100      405

Donnelley (R.R.) & Sons Co.

    29,700      345

Equifax, Inc.

    18,000      470

H&R Block, Inc.

    42,800      737

Iron Mountain, Inc.*

    24,200      696

Mastercard, Inc., Class A

    9,500      1,590

Monster Worldwide, Inc.*

    19,500      230

Moody’s Corp.

    26,104      688

Paychex, Inc.

    45,400      1,144

Quanta Services, Inc.*

    25,900      599

Robert Half International, Inc.

    17,800      420

Total System Services, Inc.

    21,996      295

Washington Post (The), Co., Class B

    797      281

Western Union (The) Co.

    96,423      1,581
         
        13,053
         

Computers - 5.5%

      

Affiliated Computer Services, Inc., Class A*

    11,900      528

Apple, Inc.*

    119,200      16,978

Cognizant Technology Solutions Corp., Class A*

    40,100      1,071

Computer Sciences Corp.*

    19,300      855

Dell, Inc.*

    236,400      3,246

EMC Corp. of Massachusetts*

    265,912      3,483

Hewlett-Packard Co.

    319,042      12,331

IBM Corp.

    176,340      18,413

Lexmark International, Inc., Class A*

    11,600      184

NetApp, Inc.*

    46,000      907

SanDisk Corp.*

    30,900      454

Sun Microsystems, Inc.*

    98,250      906

Teradata Corp.*

    22,700      532

Western Digital Corp.*

    29,500      782
         
        60,670
         

Cosmetics/Personal Care - 2.4%

      

Avon Products, Inc.

    59,044      1,522

Colgate-Palmolive Co.

    68,000      4,810

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

    13,700      448

Procter & Gamble (The) Co.

    389,289      19,893
         
        26,673
         

Distribution/Wholesale - 0.2%

      

Fastenal Co.

    17,800      591

Genuine Parts Co.

    19,250      646

Grainger (W.W.), Inc.

    8,700      712
         
        1,949
         

Diversified Financial Services - 1.7%

      

American Express Co.

    158,000      3,672

Ameriprise Financial, Inc.

    33,660      817

Charles Schwab (The) Corp.

    128,500      2,254

CIT Group, Inc.

    53,200      114

CME Group, Inc.

    9,000      2,800

Discover Financial Services

    60,809      624

E*TRADE Financial Corp.*

    88,200      113

Federated Investors, Inc., Class B

    11,614      280

Franklin Resources, Inc.

    20,400      1,469

IntercontinentalExchange, Inc.*

    9,700      1,108

Invesco Ltd.

    53,915      961

Janus Capital Group, Inc.

    24,200      276

Legg Mason, Inc.

    20,410      498

NASDAQ OMX Group (The), Inc.*

    19,400      413

NYSE Euronext

    34,200      932

Price (T. Rowe) Group, Inc.

    35,000      1,458

 

NORTHERN FUNDS QUARTERLY REPORT    2    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2% continued

      

Diversified Financial Services - 1.7% continued

      

SLM Corp.*

    65,400    $ 672
         
        18,461
         

Electric - 3.6%

      

AES Corp.*

    93,200      1,082

Allegheny Energy, Inc.

    23,300      598

Ameren Corp.

    25,200      627

American Electric Power Co., Inc.

    65,940      1,905

CMS Energy Corp.

    27,300      330

Consolidated Edison, Inc.

    38,800      1,452

Constellation Energy Group, Inc.

    26,900      715

Dominion Resources, Inc. of Virginia

    81,318      2,718

DTE Energy Co.

    19,400      621

Duke Energy Corp.

    177,555      2,590

Dynegy, Inc., Class A*

    48,407      110

Edison International

    46,000      1,447

Entergy Corp.

    25,800      2,000

Exelon Corp.

    89,724      4,595

FirstEnergy Corp.

    42,215      1,636

FPL Group, Inc.

    56,300      3,201

Integrys Energy Group, Inc.

    7,900      237

Northeast Utilities

    19,400      433

Pepco Holdings, Inc.

    22,900      308

PG&E Corp.

    50,400      1,937

Pinnacle West Capital Corp.

    10,300      311

PPL Corp.

    48,100      1,585

Progress Energy, Inc.

    38,147      1,443

Public Service Enterprise Group, Inc.

    68,900      2,248

SCANA Corp.

    14,000      455

Southern (The) Co.

    107,200      3,340

TECO Energy, Inc.

    23,200      277

Wisconsin Energy Corp.

    14,600      594

Xcel Energy, Inc.

    56,385      1,038
         
        39,833
         

Electrical Components & Equipment - 0.3%

      

Emerson Electric Co.

    102,600      3,324

Molex, Inc.

    17,675      275
         
        3,599
         

Electronics - 0.5%

      

Agilent Technologies, Inc.*

    48,056      976

Amphenol Corp., Class A

    20,900      661

FLIR Systems, Inc.*

    21,900      494

Jabil Circuit, Inc.

    23,500      174

PerkinElmer, Inc.

    13,100      228

Thermo Fisher Scientific, Inc.*

    57,300      2,336

Waters Corp.*

    11,900      613
         
        5,482
         

Engineering & Construction - 0.2%

      

Fluor Corp.

    23,200      1,190

Jacobs Engineering Group, Inc.*

    16,500      694
         
        1,884
         

Entertainment - 0.1%

      

International Game Technology

    42,052      669
         

Environmental Control - 0.3%

      

Republic Services, Inc.

    42,100      1,028

Stericycle, Inc.*

    11,200      577

Waste Management, Inc.

    67,973      1,914
         
        3,519
         

Food - 2.0%

      

Campbell Soup Co.

    25,600      753

ConAgra Foods, Inc.

    57,500      1,096

Dean Foods Co.*

    24,400      468

General Mills, Inc.

    45,400      2,543

Heinz (H.J.) Co.

    43,800      1,564

Hershey (The) Co.

    21,900      788

Hormel Foods Corp.

    8,700      301

JM Smucker (The) Co.

    14,441      703

Kellogg Co.

    33,900      1,579

Kraft Foods, Inc., Class A

    199,908      5,066

Kroger (The) Co.

    86,500      1,907

McCormick & Co., Inc.

    15,300      498

Safeway, Inc.

    57,000      1,161

Sara Lee Corp.

    85,700      836

SUPERVALU, Inc.

    27,092      351

Sysco Corp.

    81,200      1,825

Tyson Foods, Inc., Class A

    35,900      453

Whole Foods Market, Inc.

    20,600      391
         
        22,283
         

Forest Products & Paper - 0.3%

      

International Paper Co.

    59,093      894

MeadWestvaco Corp.

    20,343      334

Plum Creek Timber Co., Inc.

    22,500      670

Weyerhaeuser Co.

    28,740      874
         
        2,772
         

 

EQUITY INDEX FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2% continued

      

Gas - 0.3%

      

Centerpoint Energy, Inc.

    47,722    $ 529

Nicor, Inc.

    6,800      235

NiSource, Inc.

    35,100      409

Sempra Energy

    34,171      1,696
         
        2,869
         

Hand/Machine Tools - 0.1%

      

Black & Decker Corp.

    9,000      258

Snap-On, Inc.

    6,250      180

Stanley Works (The)

    9,500      321
         
        759
         

Healthcare - Products - 3.9%

      

Bard (C.R.), Inc.

    12,400      923

Baxter International, Inc.

    82,500      4,369

Becton, Dickinson & Co.

    32,800      2,339

Boston Scientific Corp.*

    200,000      2,028

DENTSPLY International, Inc.

    19,300      589

Hospira, Inc.*

    19,980      770

Intuitive Surgical, Inc.*

    5,300      867

Johnson & Johnson

    367,900      20,897

Medtronic, Inc.

    151,700      5,293

Patterson Cos., Inc.*

    12,500      271

St. Jude Medical, Inc.*

    46,700      1,919

Stryker Corp.

    31,200      1,240

Varian Medical Systems, Inc.*

    16,200      569

Zimmer Holdings, Inc.*

    28,140      1,199
         
        43,273
         

Healthcare - Services - 1.2%

      

Aetna, Inc.

    59,292      1,485

CIGNA Corp.

    34,300      826

Coventry Health Care, Inc.*

    18,355      344

DaVita, Inc.*

    12,400      613

Humana, Inc.*

    22,800      736

Laboratory Corp. of America Holdings*

    15,200      1,030

Quest Diagnostics, Inc.

    19,700      1,112

Tenet Healthcare Corp.*

    55,700      157

UnitedHealth Group, Inc.

    157,800      3,942

WellPoint, Inc.*

    65,983      3,358
         
        13,603
         

Holding Companies - Diversified - 0.0%

      

Leucadia National Corp.*

    22,100      466
         

Home Builders - 0.1%

      

Centex Corp.

    19,900      168

D.R. Horton, Inc.

    37,800      354

KB Home

    10,372      142

Lennar Corp., Class A

    20,500      199

Pulte Homes, Inc.

    32,200      284
         
        1,147
         

Home Furnishings - 0.1%

      

Harman International Industries, Inc.

    8,400      158

Whirlpool Corp.

    10,206      434
         
        592
         

Household Products/Wares - 0.5%

      

Avery Dennison Corp.

    12,500      321

Clorox Co.

    19,600      1,094

Fortune Brands, Inc.

    20,800      723

Kimberly-Clark Corp.

    56,936      2,985
         
        5,123
         

Housewares - 0.0%

      

Newell Rubbermaid, Inc.

    31,808      331
         

Insurance - 2.3%

      

Aflac, Inc.

    63,300      1,968

Allstate (The) Corp.

    71,814      1,752

American International Group, Inc.

    357,489      415

AON Corp.

    38,475      1,457

Assurant, Inc.

    14,000      337

Chubb Corp.

    48,500      1,934

Cincinnati Financial Corp.

    20,789      465

Genworth Financial, Inc., Class A

    58,700      410

Hartford Financial Services Group, Inc.

    45,600      541

Lincoln National Corp.

    40,332      694

Loews Corp.

    46,213      1,266

Marsh & McLennan Cos., Inc.

    72,400      1,458

MBIA, Inc.*

    23,250      101

Metlife, Inc.

    108,200      3,247

Principal Financial Group, Inc.

    42,100      793

Progressive (The) Corp.*

    86,752      1,311

Prudential Financial, Inc.

    61,100      2,274

Torchmark Corp.

    11,500      426

Travelers Cos. (The), Inc.

    80,213      3,292

Unum Group

    42,161      669

XL Capital Ltd., Class A

    45,259      519
         
        25,329
         

Internet - 2.4%

      

Akamai Technologies, Inc.*

    22,600      433

 

NORTHERN FUNDS QUARTERLY REPORT    4    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2% continued

      

Internet - 2.4% continued

      

Amazon.com, Inc.*

    42,839    $ 3,584

eBay, Inc.*

    147,124      2,520

Expedia, Inc.*

    29,088      440

Google, Inc., Class A*

    32,045      13,510

McAfee, Inc.*

    19,400      819

Symantec Corp.*

    112,224      1,746

VeriSign, Inc.*

    27,400      506

Yahoo!, Inc.*

    189,200      2,963
         
        26,521
         

Iron/Steel - 0.3%

      

AK Steel Holding Corp.

    15,600      299

Allegheny Technologies, Inc.

    13,932      487

Nucor Corp.

    40,800      1,813

United States Steel Corp.

    19,900      711
         
        3,310
         

Leisure Time - 0.2%

      

Carnival Corp.

    59,996      1,546

Harley-Davidson, Inc.

    32,100      520
         
        2,066
         

Lodging - 0.2%

      

Marriott International, Inc., Class A

    37,839      835

Starwood Hotels & Resorts

      

Worldwide, Inc.

    25,600      568

Wyndham Worldwide Corp.

    24,561      298

Wynn Resorts Ltd.*

    9,819      347
         
        2,048
         

Machinery - Construction & Mining - 0.2%

      

Caterpillar, Inc.

    79,500      2,627
         

Machinery - Diversified - 0.4%

      

Cummins, Inc.

    25,700      905

Deere & Co.

    57,000      2,277

Flowserve Corp.

    7,900      551

Manitowoc Co. (The), Inc.

    16,100      85

Rockwell Automation, Inc.

    18,800      604
         
        4,422
         

Media - 2.3%

      

CBS Corp., Class B

    84,874      587

Comcast Corp., Class A

    388,381      5,628

DIRECTV Group (The), Inc.*

    71,900      1,777

Disney (The Walt) Co.

    246,203      5,744

Gannett Co., Inc.

    33,500      120

McGraw-Hill Cos. (The), Inc.

    42,000      1,265

Meredith Corp.

    4,100      105

New York Times (The) Co., Class A

    13,500      74

News Corp., Class A

    313,200      2,853

Scripps Networks Interactive, Inc., Class A

    10,000      278

Time Warner Cable, Inc.

    47,187      1,494

Time Warner, Inc.

    157,966      3,979

Viacom, Inc., Class B*

    81,274      1,845
         
        25,749
         

Metal Fabrication/Hardware - 0.1%

      

Precision Castparts Corp.

    17,900      1,307
         

Mining - 0.7%

      

Alcoa, Inc.

    126,912      1,311

Freeport-McMoRan Copper & Gold, Inc.

    54,472      2,730

Newmont Mining Corp.

    66,377      2,713

Titanium Metals Corp.

    14,200      130

Vulcan Materials Co.

    16,548      713
         
        7,597
         

Miscellaneous Manufacturing - 3.2%

      

3M Co.

    94,200      5,662

Cooper Industries Ltd., Class A

    22,000      683

Danaher Corp.

    34,400      2,124

Dover Corp.

    25,400      841

Eastman Kodak Co.

    33,200      98

Eaton Corp.

    22,000      981

General Electric Co.

    1,414,245      16,575

Honeywell International, Inc.

    98,512      3,093

Illinois Tool Works, Inc.

    52,900      1,975

ITT Corp.

    22,500      1,001

Leggett & Platt, Inc.

    20,400      311

Pall Corp.

    13,966      371

Parker Hannifin Corp.

    21,987      945

Textron, Inc.

    37,200      359
         
        35,019
         

Office/Business Equipment - 0.1%

      

Pitney Bowes, Inc.

    24,200      531

Xerox Corp.

    108,396      702
         
        1,233
         

Oil & Gas - 10.2%

      

Anadarko Petroleum Corp.

    65,612      2,978

Apache Corp.

    45,506      3,283

Cabot Oil & Gas Corp.

    14,500      444

Chesapeake Energy Corp.

    75,300      1,493

 

EQUITY INDEX FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2% continued

      

Oil & Gas - 10.2% continued

      

Chevron Corp.

    267,532    $ 17,724

ConocoPhillips

    200,046      8,414

Denbury Resources, Inc.*

    31,900      470

Devon Energy Corp.

    59,900      3,265

Diamond Offshore Drilling, Inc.

    10,000      831

ENSCO International, Inc.

    20,300      708

EOG Resources, Inc.

    34,300      2,330

EQT Corp.

    16,400      573

Exxon Mobil Corp.

    652,714      45,631

Hess Corp.

    37,800      2,032

Marathon Oil Corp.

    96,618      2,911

Murphy Oil Corp.

    26,200      1,423

Nabors Industries Ltd.*

    39,300      612

Noble Energy, Inc.

    23,900      1,409

Occidental Petroleum Corp.

    109,656      7,216

Pioneer Natural Resources Co.

    15,900      405

Questar Corp.

    22,000      683

Range Resources Corp.

    20,900      866

Rowan Cos., Inc.

    16,800      325

Southwestern Energy Co.*

    46,000      1,787

Sunoco, Inc.

    17,300      401

Tesoro Corp.

    19,800      252

Valero Energy Corp.

    75,383      1,273

XTO Energy, Inc.

    76,025      2,900
         
        112,639
         

Oil & Gas Services - 1.5%

      

Baker Hughes, Inc.

    39,640      1,445

BJ Services Co.

    41,100      560

Cameron International Corp.*

    27,100      767

FMC Technologies, Inc.*

    16,600      624

Halliburton Co.

    119,531      2,474

National-Oilwell Varco, Inc.*

    54,700      1,787

Schlumberger Ltd.

    159,700      8,641

Smith International, Inc.

    29,600      762
         
        17,060
         

Packaging & Containers - 0.2%

      

Ball Corp.

    13,500      610

Bemis Co., Inc.

    10,800      272

Owens-Illinois, Inc.*

    20,800      582

Pactiv Corp.*

    16,900      367

Sealed Air Corp.

    17,606      325
         
        2,156
         

Pharmaceuticals - 6.2%

      

Abbott Laboratories

    208,500      9,808

Allergan, Inc.

    39,768      1,892

AmerisourceBergen Corp.

    40,036      710

Bristol-Myers Squibb Co.

    268,260      5,448

Cardinal Health, Inc.

    47,924      1,464

Cephalon, Inc.*

    10,100      572

Express Scripts, Inc.*

    37,100      2,551

Forest Laboratories, Inc.*

    38,000      954

King Pharmaceuticals, Inc.*

    36,700      354

Lilly (Eli) & Co.

    137,096      4,749

McKesson Corp.

    37,441      1,647

Medco Health Solutions, Inc.*

    64,336      2,934

Merck & Co., Inc.

    284,700      7,960

Mylan, Inc.*

    43,300      565

Pfizer, Inc.

    900,092      13,501

Schering-Plough Corp.

    216,500      5,439

Watson Pharmaceuticals, Inc.*

    12,600      425

Wyeth

    177,300      8,048
         
        69,021
         

Pipelines - 0.3%

      

El Paso Corp.

    87,047      803

Spectra Energy Corp.

    83,077      1,406

Williams Cos. (The), Inc.

    79,800      1,246
         
        3,455
         

Real Estate - 0.0%

      

CB Richard Ellis Group, Inc., Class A*

    34,400      322
         

Real Estate Investment Trusts - 0.9%

      

Apartment Investment & Management Co., Class A

    20,407      181

AvalonBay Communities, Inc.

    11,637      651

Boston Properties, Inc.

    19,300      921

Equity Residential

    33,500      745

HCP, Inc.

    34,039      721

Health Care REIT, Inc.

    16,400      559

Host Hotels & Resorts, Inc.

    76,300      640

Kimco Realty Corp.

    46,400      466

ProLogis

    61,835      498

Public Storage

    15,546      1,018

Simon Property Group, Inc.

    36,405      1,872

Ventas, Inc.

    22,000      657

Vornado Realty Trust

    21,184      954
         
        9,883
         

 

NORTHERN FUNDS QUARTERLY REPORT    6    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2% continued

      

Retail - 6.2%

      

Abercrombie & Fitch Co., Class A

    12,500    $ 317

AutoNation, Inc.*

    16,185      281

Autozone, Inc.*

    5,000      756

Bed Bath & Beyond, Inc.*

    35,800      1,101

Best Buy Co., Inc.

    44,325      1,485

Big Lots, Inc.*

    12,600      265

Costco Wholesale Corp.

    59,516      2,720

CVS Caremark Corp.

    195,269      6,223

Darden Restaurants, Inc.

    18,650      615

Family Dollar Stores, Inc.

    19,200      543

GameStop Corp., Class A*

    19,800      436

Gap (The), Inc.

    60,987      1,000

Home Depot (The), Inc.

    224,594      5,307

Kohl’s Corp.*

    39,800      1,702

Limited Brands, Inc.

    32,700      391

Lowe’s Cos., Inc.

    195,000      3,785

Macy’s, Inc.

    57,082      671

McDonald’s Corp.

    147,500      8,480

Nordstrom, Inc.

    23,300      464

Office Depot, Inc.*

    41,000      187

O’Reilly Automotive, Inc.*

    19,300      735

Penney (J.C.) Co., Inc.

    30,300      870

RadioShack Corp.

    18,700      261

Sears Holdings Corp.*

    7,773      517

Staples, Inc.

    98,775      1,992

Starbucks Corp.*

    101,900      1,415

Target Corp.

    101,000      3,987

Tiffany & Co.

    16,000      406

TJX Cos., Inc.

    54,800      1,724

Walgreen Co.

    131,000      3,851

Wal-Mart Stores, Inc.

    297,500      14,411

Yum! Brands, Inc.

    61,500      2,050
         
        68,948
         

Savings & Loans - 0.2%

      

Hudson City Bancorp, Inc.

    74,000      984

People’s United Financial, Inc.

    46,100      693
         
        1,677
         

Semiconductors - 2.4%

      

Advanced Micro Devices, Inc.*

    68,800      266

Altera Corp.

    42,400      690

Analog Devices, Inc.

    36,000      892

Applied Materials, Inc.

    178,800      1,961

Broadcom Corp., Class A*

    55,700      1,381

Intel Corp.

    743,700      12,308

Kla-Tencor Corp.

    24,600      621

Linear Technology Corp.

    31,800      743

LSI Corp.*

    75,600      345

MEMC Electronic Materials, Inc.*

    28,100      501

Microchip Technology, Inc.

    27,000      609

Micron Technology, Inc.*

    106,000      536

National Semiconductor Corp.

    27,600      346

Novellus Systems, Inc.*

    15,200      254

Nvidia Corp.*

    70,850      800

QLogic Corp.*

    17,700      224

Teradyne, Inc.*

    27,800      191

Texas Instruments, Inc.

    167,300      3,564

Xilinx, Inc.

    39,200      802
         
        27,034
         

Software - 4.1%

      

Adobe Systems, Inc.*

    71,500      2,023

Autodesk, Inc.*

    30,900      586

BMC Software, Inc.*

    25,000      845

CA, Inc.

    55,393      966

Citrix Systems, Inc.*

    25,400      810

Compuware Corp.*

    32,400      222

Dun & Bradstreet Corp.

    6,400      520

Electronic Arts, Inc.*

    45,300      984

Fidelity National Information Services, Inc.

    25,000      499

Fiserv, Inc.*

    21,900      1,001

IMS Health, Inc.

    21,004      267

Intuit, Inc.*

    45,200      1,273

Microsoft Corp.

    1,022,380      24,302

Novell, Inc.*

    37,400      169

Oracle Corp.

    504,900      10,815

Salesforce.com, Inc.*

    13,500      515
         
        45,797
         

Telecommunications - 6.4%

      

American Tower Corp., Class A*

    53,100      1,674

AT&T, Inc.

    793,293      19,705

CenturyTel, Inc.

    15,650      481

Ciena Corp.*

    14,257      148

Cisco Systems, Inc.*

    775,800      14,461

Corning, Inc.

    205,500      3,300

Embarq Corp.

    19,796      833

Frontier Communications Corp.

    33,800      241

Harris Corp.

    16,200      460

 

EQUITY INDEX FUNDS    7    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 97.2% continued

      

Telecommunications - 6.4% continued

      

JDS Uniphase Corp.*

    33,050    $ 189

Juniper Networks, Inc.*

    70,300      1,659

MetroPCS Communications, Inc.*

    33,900      451

Motorola, Inc.

    300,465      1,992

QUALCOMM, Inc.

    220,700      9,976

Qwest Communications International, Inc.

    204,355      848

Sprint Nextel Corp.*

    378,236      1,819

Tellabs, Inc.*

    52,100      299

Verizon Communications, Inc.

    381,130      11,712

Windstream Corp.

    51,699      432
         
        70,680
         

Textiles - 0.0%

      

Cintas Corp.

    18,700      427
         

Toys, Games & Hobbies - 0.1%

      

Hasbro, Inc.

    18,612      451

Mattel, Inc.

    47,441      762
         
        1,213
         

Transportation - 1.9%

      

Burlington Northern Santa Fe Corp.

    37,728      2,774

C.H. Robinson Worldwide, Inc.

    23,200      1,210

CSX Corp.

    51,948      1,799

Expeditors International of Washington, Inc.

    29,800      994

FedEx Corp.

    40,640      2,260

Norfolk Southern Corp.

    49,500      1,865

Ryder System, Inc.

    6,500      181

Union Pacific Corp.

    66,300      3,452

United Parcel Service, Inc., Class B

    133,400      6,669
         
        21,204
         

Total Common Stocks

      
         

(Cost $1,306,160)

         1,077,273

 

     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 2.8%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 25,319      25,319

U.S. Treasury Bill,

      

0.27%, 11/19/09 (3)

     5,050      5,045
         

Total Short-Term Investments

      
         

(Cost $30,363)

         30,364
         

Total Investments - 100.0%

      
         

(Cost $1,336,523)

         1,107,637

Other Assets less Liabilities - 0.0%

         294
         

NET ASSETS - 100.0%

       $ 1,107,931

 

(1) At March 31, 2009, the value of the Fund’s investment in Northern Trust Corp. was approximately $1,483,000 with gross purchases of approximately $223,000 during the quarter ended June 30, 2009. There were no sales during the quarter ended June 30, 2009.
(2) Investment in affiliate.
(3) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Stock Index Fund had open futures contracts as follows:

 

TYPE

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

S&P 500 E-mini

    661    $ 30,257    Long    9/09    $ (303 ) 
                              

Federal Tax Information:

At June 30,2009, the components of investments for federal incometax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,336,523   
        

Gross tax appreciation of investments

    $ 43,662   

Gross tax depreciation of investments

      (272,548 ) 
        

Net tax depreciation of investments

    $ (228,886 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in three levels listed below:

 

NORTHERN FUNDS QUARTERLY REPORT    8    EQUITY INDEX FUNDS

JUNE 30, 2009 (UNAUDITED)

 

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Stock Index Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 1,077,273 (1)    $ —      $ —      $ 1,077,273   

Short-Term Investments

      —          30,364      —        30,364   
                              

Total Investments

    $ 1,077,273      $ 30,364    $ —      $ 1,107,637   
                              

Other Financial Instruments*

    $ (303 )    $ —      $ —      $ (303 ) 
                              

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 99.3%

      

California - 91.2%

      

ABAG Finance Authority for Nonprofit Corp. California COPS VRDB, Series 2000, Episcopal Homes Foundation (Wells Fargo Bank N.A. LOC),

      

0.20%, 7/9/09

    $ 2,200    $ 2,200

ABAG Finance Authority for Nonprofit Corp. Multifamily Revenue Refunding VRDB, Series 2002A, Amber Court Apartments (FNMA Gtd.),

      

0.18%, 7/9/09

      6,600      6,600

ABAG Finance Authority for Nonprofit Corp. Revenue VRDB, Series 2007, Oshman Family Jewish Community (Bank of America N.A. LOC),

      

0.25%, 7/1/09

      15,050      15,050

ABAG Finance Authority for Nonprofit Corp. Revenue VRDB, Series 2008, On Lok Senior Health Services (Wells Fargo Bank N.A. LOC),

      

0.20%, 7/9/09

      4,500      4,500

Affordable Housing Agency Multifamily Revenue VRDB, Series 2003A, Westridge Hilltop (FNMA Insured),

      

0.18%, 7/9/09

      4,235      4,235

Alameda-Contra Costa Schools Financing Authority COPS VRDB, Series 2002J, Capital Improvement Project (KBC Bank N.V. LOC),

      

0.25%, 7/9/09

      4,060      4,060

Series 2002K, Capital Improvement Project (KBC Bank N.V. LOC),

      

0.35%, 7/9/09

      2,700      2,700

Antelope Valley-East Kern Water Agency COPS VRDB, Series 2008 A-2 (Wells Fargo Bank N.A. LOC),

      

0.13%, 7/9/09

      6,200      6,200

Bay Area Toll Authority Toll Bridge Revenue VRDB, Series B, San Francisco Bay Area,

      

0.12%, 7/9/09

      4,800      4,800

California Educational Facilities Authority Revenue Bonds, University of Southern California, Series 2003-45A, Soc Gen Municipal Trust Receipts (U.S. Treasuries Escrowed), (1)

      

0.36%, 7/9/09

      5,000      5,000

California Educational Facilities Authority Revenue Tax Exempt CP, Series 1993-B, Carnegie Institution of Washington,

      

0.65%, 7/2/09

      17,500      17,500

California Health Facilities Financing Authority Revenue Bonds, Series 1999A, Sinai Medical Center (U.S. Treasuries Escrowed),

      

6.13%, 12/1/09

      30,695      31,622

California Health Facilities Financing Authority Revenue Bonds, Series B1, Stanford Hospital (FSA Corp. Insured),

      

0.75%, 7/9/09

      2,800      2,800

California Health Facilities Financing Authority Revenue VRDB, Series 2004J, Catholic Healthcare West (Bank of America N.A. LOC),

      

0.24%, 7/9/09

      5,800      5,800

California Health Facilities Financing Authority Revenue VRDB, Series 2006-C, Kaiser Permanente,

      

0.20%, 7/9/09

      14,100      14,100

California Health Facilities Financing Authority Revenue VRDB, Series 2009-B, Adventist Health System-West (U.S. Bank N.A. LOC),

      

0.13%, 7/1/09

      2,400      2,400

California Infrastructure and Economic Development Bank Revenue Refunding VRDB, American National Red Cross (U.S. Bank N.A. LOC),

      

0.16%, 7/9/09

      5,000      5,000

California Infrastructure and Economic Development Bank Revenue VRDB, Series 2008, Pinewood School Project (Comerica Bank LOC),

      

0.83%, 7/9/09

      12,400      12,400

California Infrastructure and Economic Development Bank Revenue VRDB, Series 2008-A, Jewish Community Center (Bank of America N.A. LOC),

      

0.25%, 7/1/09

      11,400      11,400

California Infrastructure and Economic Development Bank Revenue VRDB, Series 2008-F, California Academy (Wells Fargo Bank N.A. LOC),

      

0.15%, 7/1/09

      9,895      9,895

 

MONEY MARKET FUNDS     1     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 99.3% continued

      

California - 91.2% continued

      

California Pollution Control Financing Authority Revenue Refunding Bonds, Series 1996-C, Pacific Gas & Electric Company (JPMorgan Chase Bank LOC),

      

0.28%, 7/1/09

    $ 2,700    $ 2,700

California School Cash Reserve Program Authority COPS 2008-2009, Series 2007A, TRANS,

      

3.00%, 7/6/09

      8,000      8,001

California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002B-1 (Bank of New York LOC),

      

0.13%, 7/1/09

      200      200

Series 2002B-2 (BNP Paribas LOC),

      

0.25%, 7/1/09

      29,400      29,400

Series 2002C-7 (FSA Corp. Insured),

      

0.70%, 7/9/09

      6,820      6,820

Subseries G-1 (Bank of Nova Scotia LOC),

      

0.17%, 7/9/09

      1,000      1,000

Subseries G-3 (FSA Corp. Insured),

      

0.70%, 7/9/09

      15,500      15,500

California State Economic Recovery G.O. VRDB, Series 2004C-2,

      

0.75%, 7/1/09

      8,800      8,800

Series 2004C-16 (FSA Corp. Insured),

      

1.00%, 7/9/09

      825      825

California State G.O. VRDB, Series A, Subseries A-3 (Bank of America N.A. LOC),

      

0.22%, 7/9/09

      8,050      8,050

California Statewide Communities Development Authority COPS, Series 1995, Covenant Retirement Communities (Bank of America N.A. LOC),

      

0.22%, 7/9/09

      12,100      12,100

California Statewide Communities Development Authority COPS VRDB, Covenant Retirement Communities (Bank of America N.A. LOC),

      

0.35%, 7/9/09

      15,000      15,000

California Statewide Communities Development Authority Multifamily Housing Revenue Bonds, Series 2680, Putters (JPMorgan Chase Bank LOC), (1)

      

0.45%, 7/9/09

      15,000      15,000

California Statewide Communities Development Authority Multifamily Housing Revenue Refunding VRDB, Series 2005C, Chateau Project (FNMA Insured),

      

0.19%, 7/9/09

      6,000      6,000

California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Series A, Pine View Apartments (Citibank N.A. LOC),

     

0.34%, 7/9/09

      3,400      3,400

California Statewide Communities Development Authority Revenue Refunding VRDB, Series 2008, Retirement Housing Foundation (KBC Bank N.V. LOC),

     

0.22%, 7/9/09

      17,860      17,860

California Statewide Communities Development Authority Revenue Refunding VRDB, Series 2008-D, Los Angeles County Museum of Art (Wells Fargo Bank N.A. LOC),

      

0.15%, 7/1/09

      13,900      13,900

California Statewide Communities Development Authority Revenue VRDB, Series 2001, Senior Living Facility (Banco Santander Central Hispano LOC),

      

0.22%, 7/9/09

      2,200      2,200

California Statewide Communities Development Authority Revenue VRDB, Series 2003B, Kaiser Permanente Project,

      

0.20%, 7/9/09

      11,400      11,400

Series 2004L, Kaiser Permanente Project,

      

0.20%, 7/9/09

      6,400      6,400

Series 2004M, Kaiser Permanente Project,

      

0.20%, 7/9/09

      1,400      1,400

California Statewide Communities Development Authority Revenue VRDB, Series 2006, Livermore Valley Arts Center Project (Bank of New York LOC),

     

0.12%, 7/9/09

      5,000      5,000

 

MONEY MARKET FUNDS     2     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 99.3% continued

      

California - 91.2% continued

      

California Statewide Communities Development Authority Revenue VRDB, Series 2007A, Sweep Loan Program (Citibank N.A. LOC),

      

0.22%, 7/9/09

    $ 9,900    $ 9,900

California Statewide Communities Development Authority Revenue VRDB, Series 2007-B, Front Porch Communities (Banco Santander Central Hispano LOC),

      

0.23%, 7/9/09

      3,500      3,500

California Statewide Communities Development Authority Revenue VRDB, Series 2008, Goodwill of Santa Cruz (Wells Fargo Bank N.A. LOC),

      

0.20%, 7/9/09

      1,000      1,000

California Statewide Communities Development Authority Revenue VRDB, Series A (Assured Guaranty Insured),

      

0.21%, 7/9/09

      10,000      10,000

Calleguas-Las Virgenes Public Financing Authority Revenue Refunding VRDB, Series 2008-A, Municipal Water District Project (Wells Fargo Bank N.A. LOC),

      

0.13%, 7/9/09

      7,725      7,725

Castaic Lake Water Agency Revenue COPS, Series 2008-A, 1994 Refunding Project (Wells Fargo Bank N.A. LOC),

      

0.12%, 7/9/09

      4,600      4,600

City of Hayward Multifamily Housing Revenue VRDB, Series 1984A, Shorewood Apartment Project (FNMA Gtd.),

      

0.23%, 7/9/09

      15,000      15,000

Covina Redevelopment Agency Multifamily Revenue Refunding VRDB, Series 1994A, Shadowhills Apartments (FNMA LOC),

      

0.19%, 7/9/09

      4,750      4,750

Daly City Multifamily Housing Development Finance Agency Revenue Refunding VRDB, Series 1999A, Serramonte Del Ray (FNMA Gtd.),

      

0.19%, 7/9/09

      8,230      8,230

East Bay Municipal Utility District Wastewater System Revenue Refunding VRDB, Subseries B-1,

      

0.60%, 7/9/09

      6,750      6,750

Subseries B-2,

      

0.55%, 7/9/09

      13,675      13,675

Subseries 2008-A,

      

0.13%, 7/9/09

      3,000      3,000

East Bay Municipal Utility District Water System Revenue Refunding VRDB, Series 2009A-1,

      

0.35%, 7/2/09

      29,500      29,500

Series 2009A-2,

      

0.60%, 7/2/09

      30,525      30,525

Escondido Community Development Multifamily Housing Revenue Refunding VRDB, Series 1992A, Heritage Park Apartments Project (FNMA LOC),

      

0.20%, 7/9/09

      4,250      4,250

Fremont COPS VRDB, Series 2001, Capital Improvement Financing Project (Bank of Nova Scotia LOC),

      

0.25%, 7/9/09

      9,400      9,400

Fresno Multifamily Housing Revenue Refunding VRDB, Series 2001A, Heron Pointe Apartments (FNMA LOC),

      

0.19%, 7/9/09

      4,050      4,050

Golden State Tobacco Securitization Corp. Settlement Revenue Bonds, Citi ROCS RR-II-R-11442 (Assured Guaranty Insured), (1)

      

0.40%, 7/9/09

      23,000      23,000

Grand Terrace Community Redevelopment Multifamily Revenue Bonds, Series 1985A, Mount Vernon Villas Project (FNMA LOC),

      

0.18%, 7/9/09

      12,125      12,125

Hemet Unified School District COPS VRDB, School Facilities Project (State Street Bank & Trust LOC),

      

0.93%, 7/9/09

      4,000      4,000

 

MONEY MARKET FUNDS     3     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 99.3% continued

      

California - 91.2% continued

      

Kings County Housing Authority Multifamily Housing Revenue Refunding VRDB, Series 2001A, Edgewater Isle Apartments (FNMA LOC),

      

0.19%, 7/9/09

    $ 2,300    $ 2,300

Lemon Grove Multifamily Housing Revenue Refunding VRDB, Series 2001-A, Hillside Terrace (FNMA Insured),

      

0.24%, 7/9/09

      5,455      5,455

Livermore Multifamily Housing Finance Authority Revenue Refunding VRDB, Series 1992A, Richards Manor Project (FNMA LOC),

      

0.20%, 7/9/09

      4,770      4,770

Livermore Multifamily Housing Revenue Refunding VRDB, Series 1990, Diablo Vista Apartments (FNMA LOC),

      

0.18%, 7/9/09

      4,200      4,200

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue Refunding VRDB, Series 2008-A-1, Property A First Tier,

      

0.25%, 7/9/09

      1,690      1,690

Series 2008 A-2, Property A First Tier,

      

0.30%, 7/9/09

      15,700      15,700

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue Refunding VRDB, Series 2009-A-1, Property C 2nd Senior,

      

0.18%, 7/1/09

      20,000      20,000

Los Angeles County Schools Pooled Financing Program Participation Certificates G.O. TRANS, Series 2009-A,

      

2.50%, 6/30/10

      7,000      7,114

Los Angeles Department of Water and Power Revenue VRDB, Subseries A-3, Power System,

      

0.20%, 7/9/09

      14,700      14,700

Subseries A-4, Power System,

      

0.20%, 7/9/09

      11,500      11,500

Los Angeles Department of Water and Power Waterworks Revenue VRDB, Subseries 2001B-1,

      

0.17%, 7/9/09

      2,400      2,400

Subseries 2001B-3,

      

0.07%, 7/9/09

      7,000      7,000

Los Angeles Multifamily Housing Revenue VRDB, Series 1985, Masselin Manor (Bank of America N.A. LOC),

      

0.19%, 7/9/09

      1,500      1,500

Los Angeles Multifamily Revenue Refunding VRDB, Series 1991 B, Mountainback I Apartments Project (FHLMC LOC),

      

0.21%, 7/9/09

      8,140      8,140

Los Angeles Unified School District G.O. TRANS, Series 2008-A,

      

3.00%, 7/30/09

      27,300      27,332

Los Angeles Wastewater System Revenue Refunding VRDB, Subseries 2008-G (Bank of America N.A. LOC),

      

0.15%, 7/9/09

      3,000      3,000

Manteca Redevelopment Agency Tax Allocation Revenue Refunding VRDB, Sub Amended Merged Project (State Street Bank & Trust LOC),

      

0.25%, 7/1/09

      4,650      4,650

Metropolitan Water District of Southern California Waterworks Revenue Refunding VRDB, Series 2004C,

      

0.75%, 7/9/09

      8,580      8,580

Metropolitan Water District of Southern California Waterworks Revenue VRDB, Series 2000B-3,

      

0.17%, 7/1/09

      7,900      7,900

Series 2001C-2,

      

0.20%, 7/1/09

      6,000      6,000

 

MONEY MARKET FUNDS     4     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 99.3% continued

      

California - 91.2% continued

      

Modesto Multifamily Housing Revenue VRDB, Series 2001A, Shadowbrook Apartments (FNMA Gtd.),

      

0.23%, 7/9/09

    $ 4,195    $ 4,195

Northern California Power Agency Revenue Refunding VRDB, Series 2008-A, Hydroelectric Project 1 (Dexia Credit Local LOC),

      

0.43%, 7/9/09

      11,500      11,500

Ontario IDA Revenue Bonds, Series 1985 D, L.D. Brinkman & Co. (Bank of America N.A. LOC),

      

0.18%, 7/1/09

      5,200      5,200

Orange County Development Revenue Refunding Bonds, Series 1997A, Larkspur Canyon Apartments (FNMA LOC),

      

0.18%, 7/9/09

      7,435      7,435

Orange County Development Revenue Refunding VRDB, Issue G of 1998 Series 3, WLCO LF Partners (FNMA LOC),

      

0.18%, 7/9/09

      14,800      14,800

Orange County Housing Development Authority Revenue Refunding VRDB, Series 1998I, Oasis Martinique (FNMA Gtd.),

      

0.20%, 7/9/09

      200      200

Orange County Water District COPS, Series 2003A,

      

0.12%, 7/9/09

      2,700      2,700

Rancho Water District Financing Authority Revenue Refunding Bonds, Series 2008-B (UBS AG LOC),

      

0.16%, 7/9/09

      3,500      3,500

Riverside County COPS, Series 1985-B, Public Facilities Project (State Street Bank & Trust LOC),

      

0.20%, 7/9/09

      6,750      6,750

Series 1985-C, Public Facilities Project (State Street Bank & Trust LOC),

      

0.20%, 7/9/09

      2,100      2,100

Rohnert Park Multifamily Housing Revenue Refunding Bonds, Series 1995A, Crossbrook Apartments (FNMA Gtd.),

      

0.18%, 7/9/09

      7,900      7,900

Roseville Electric System Revenue Refunding COPS VRDB, Series 2008-A (Dexia Credit Local LOC),

      

1.25%, 7/9/09

      7,800      7,800

Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Series 2004C-2, Seasons of Winter (FHLMC Gtd.),

      

0.19%, 7/9/09

      4,200      4,200

Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Series A, Bent Tree Apartments (FNMA Gtd.),

      

0.19%, 7/9/09

      6,900      6,900

Sacramento County Multifamily Housing Authority Revenue Refunding VRDB, Series 99, River C (FNMA LOC),

      

0.18%, 7/9/09

      6,400      6,400

Sacramento County Multifamily Housing Revenue Refunding VRDB, Series 2004B, Woodbridge Apartments (FNMA Gtd.),

      

0.19%, 7/9/09

      7,200      7,200

Sacramento County Multifamily Housing Revenue VRDB, Series 2007-B, River Pointe Apartments (FNMA Gtd.),

      

0.19%, 7/9/09

      5,300      5,300

Sacramento County Sanitation District Financing Authority Revenue Refunding VRDB, Series E, Sanitation District, Sub Lien (U.S. Bank N.A. LOC),

      

0.20%, 7/9/09

      5,000      5,000

Salinas Economic Development Revenue VRDB, Series 2007A, Monterey County Public Building (Bank of New York LOC),

      

0.17%, 7/9/09

      7,675      7,675

 

MONEY MARKET FUNDS     5     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 99.3% continued

      

California - 91.2% continued

      

San Bernardino County Multifamily Housing Authority Revenue Refunding VRDB, Montclair Heritage Project (FHLB of San Francisco LOC),

      

0.19%, 7/9/09

    $ 1,600    $ 1,600

San Bernardino County Multifamily Housing Authority Revenue Refunding VRDB, Series 1993-A, Alta Loma Heritage (FHLB of San Francisco LOC),

     

0.19%, 7/9/09

      7,264      7,264

San Bernardino County Multifamily Revenue Refunding VRDB, Series 2004A, Housing Mortgage Mountain View (FNMA LOC),

      

0.18%, 7/9/09

      7,110      7,110

San Diego County Regional Transportation Commission Sales Limited Tax Revenue VRDB, Series 2008-A,

      

0.35%, 7/9/09

      14,700      14,700

Series 2008-C,

      

0.60%, 7/9/09

      14,600      14,600

Series 2008-D,

      

0.70%, 7/9/09

      5,600      5,600

San Francisco City and County Airports Commission Revenue Refunding VRDB, Second Series 2008-37D (FSA Corp. Insured),

      

1.00%, 7/9/09

      5,000      5,000

San Francisco City and County Multifamily Housing Revenue Refunding VRDB, Series 2000-A, Post Towers (FHLMC Insured),

      

0.18%, 7/9/09

      7,100      7,100

San Francisco City and County Redevelopment Agency Multifamily Housing Revenue VRDB, Series 1985A, Bayside Village Project (JPMorgan Chase Bank LOC),

      

0.19%, 7/9/09

      8,800      8,800

Series 1985B, Bayside Village Project (JPMorgan Chase Bank LOC),

      

0.19%, 7/9/09

      14,340      14,340

San Jose Multifamily Housing Revenue Refunding VRDB, Series A, Kimberly Woods Apartments (FHLMC LOC),

      

0.18%, 7/9/09

      11,250      11,250

San Leandro Multifamily Housing Revenue VRDB, Series 1989 A, Parkside Commons Apartments (FNMA Collateralized),

      

0.21%, 7/9/09

      7,800      7,800

Santa Clara County Multifamily Housing Authority Housing Revenue VRDB, Series A, Fountains Project (Citibank N.A. LOC),

      

0.30%, 7/9/09

      2,700      2,700

Southern California Public Power Authority Power Project Revenue VRDB, Series 2008-A, Mead Adelanto,

      

0.15%, 7/1/09

      1,710      1,710

State of California G.O. VRDB, Series 2005, Subseries B-6 (KBC Bank N.V. LOC),

      

0.30%, 7/1/09

      38,800      38,800

Tahoe Forest Hospital District Revenue VRDB, Series 2002, Pacer County Health Facility (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

      1,620      1,620

Upland California Apartment Development Revenue Refunding VRDB, Series 1998-A, Mountain Springs (FNMA Insured),

      

0.18%, 7/9/09

      6,000      6,000

Ventura County TRANS, Series 2008,

      

3.50%, 7/1/09

      10,000      10,000
         
        1,010,878
         

Puerto Rico - 8.1%

      

Commonwealth of Puerto Rico G.O. Refunding VRDB, Series 2007 A-2, Public Improvement (FSA Corp. Insured),

      

1.25%, 7/9/09

      10,000      10,000

 

MONEY MARKET FUNDS     6     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 99.3% continued

      

Puerto Rico - 8.1% continued

      

Commonwealth of Puerto Rico TRANS, Subseries 2009 A1 (Bank of Nova Scotia LOC),

      

3.00%, 7/30/09

    $ 30,000    $ 30,032

Subseries 2009 A2 (BNP Paribas LOC),

      

3.00%, 7/30/09

      25,000      25,027

Subseries 2009 A3 (Banco Bilbao Vizcaya Argentaria LOC),

      

3.00%, 7/30/09

      25,000      25,026
         
        90,085
         

Total Municipal Investments (Cost $1,100,963)

         1,100,963
         

Total Investments - 99.3% (Cost $1,100,963) (2)

         1,100,963
         

Other Assets less Liabilities - 0.7%

         7,265
         

NET ASSETS - 100.0%

       $ 1,108,228
         

 

(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 cost for federal income tax purposes was $1,100,963.

Percentages shown are based on Net Assets.

At June 30, 2009 the industry sectors for the California Municipal Money Market Fund were:

 

INDUSTRY SECTOR

    % OF NET ASSETS  

Administration of Environment and Housing and Real Estate

    18.7 % 

Air, Transportation, Water Services and Solid Waste Management

    14.6   

Educational Services

    6.2   

Electric Services, Gas and Combined Utilities

    11.1   

Executive, Legislative and General Government

    21.9   

Health Services and Residential Care

    10.9   

Urban and Community Development and Social Services

    7.4   

All other sectors less than 5%

    9.2   
      

Total

    100.0 % 

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis.

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the California Municipal Money Market Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

     Level 1
(000S)		    Level 2
(000S)		     Level 3
(000S)		    Total
(000S)

California Municipal Money Market Fund

    $ —      $ 1,100,963 (1)    $ —      $ 1,100,963
                            

 

(1)

Classifications as defined in the Schedule of Investments.

 

MONEY MARKET FUNDS     7     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

ABBREVIATIONS AND OTHER INFORMATION

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (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

COPS     Certificates of Participation

CP    Commercial Paper

FHLB    Federal Home Loan Bank

FHLMC    Federal Home Loan Mortgage Corporation

FNMA    Federal National Mortgage Association

FSA    Financial Security Assurance

G.O.    General Obligation

Gtd.    Guaranteed

IDA    Industrial Development Authority

LOC    Letter of Credit

ROCS    Reset Option Certificates

Soc Gen    Societe Generale

TRANS    Tax and Revenue Anticipation Notes

VRDB    Variable Rate Demand Bonds

 

MONEY MARKET FUNDS     8     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CERTIFICATES OF DEPOSIT - 30.0%

      

Non-U.S. Depository Institutions - 30.0%

      

Abbey National PLC, Stamford,

      

0.50%, 7/30/09

    $ 50,000    $ 50,000

0.45%, 8/7/09

      117,000      117,002

Australia & New Zealand Bank, London Branch,

      

0.28%, 7/10/09

      100,000      100,000

0.28%, 7/23/09

      65,000      65,000

Australia & New Zealand Bank, New York Branch,

      

0.37%, 7/6/09

      60,000      60,000

Banco Bilbao Vizcaya Argentaria,

      

0.60%, 7/29/09

      60,000      60,000

0.55%, 8/7/09

      50,000      50,000

0.35%, 9/30/09

      35,000      35,000

0.41%, 9/30/09

      50,000      50,001

Barclays Bank, London Branch,

      

1.71%, 7/9/09

      50,000      50,000

Barclays Bank, New York Branch,

      

0.45%, 8/14/09

      75,000      75,000

1.20%, 11/20/09

      140,000      140,000

BNP Paribas S.A., London Branch,

      

0.77%, 7/2/09

      140,000      140,000

0.60%, 8/5/09

      75,000      75,000

Credit Agricole S.A., London Branch,

      

0.77%, 7/17/09

      50,000      50,000

0.75%, 7/20/09

      40,000      40,000

0.45%, 8/13/09

      50,000      50,000

0.42%, 8/19/09

      50,000      50,000

0.43%, 9/3/09

      40,000      40,000

Deutsche Bank, New York Branch,

      

0.62%, 7/15/09

      35,000      35,000

0.62%, 7/16/09

      40,000      40,000

HSBC PLC, London,

      

1.20%, 7/9/09

      60,000      60,000

0.38%, 8/18/09

      60,000      60,000

0.39%, 8/19/09

      50,000      50,000

Lloyds Bank, London Branch,

      

1.68%, 7/9/09

      50,000      50,000

1.40%, 7/15/09

      80,000      80,000

Lloyds Bank, New York Branch,

      

1.04%, 7/17/09

      40,000      40,000

1.11%, 11/30/09

      40,000      40,000

National Australia Bank, London Branch,

      

0.61%, 7/14/09

      50,000      50,000

0.48%, 8/7/09

      100,000      100,000

0.51%, 12/18/09

      40,000      40,001

Nordea Bank Finland, New York,

      

0.25%, 7/13/09

      50,000      50,000

0.30%, 8/17/09

      80,000      80,000

Rabobank Nederland, New York Branch,

      

0.55%, 11/23/09

      87,500      87,500

0.55%, 12/1/09

      40,000      40,000

Royal Bank of Scotland, London Branch,

      

1.86%, 7/9/09

      60,000      60,000

Royal Bank of Scotland, New York Branch,

      

1.55%, 7/14/09

      80,000      80,000

1.27%, 11/27/09

      40,000      40,000

1.21%, 12/29/09

      50,000      50,000

1.20%, 12/30/09

      30,000      30,000

 

MONEY MARKET FUNDS     1     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CERTIFICATES OF DEPOSIT - 30.0% continued

      

Non-U.S. Depository Institutions - 30.0% continued

      

Societe Generale, London Branch,

      

0.79%, 7/1/09

    $ 50,000    $ 50,000

0.80%, 7/9/09

      30,000      30,000

0.39%, 10/1/09

      30,000      30,000

Societe Generale, New York Branch,

      

0.60%, 8/11/09

      30,000      30,000

Westpac Banking Corp.,

      

0.48%, 8/6/09

      75,000      75,000
         

Total Certificates of Deposit (Cost $2,674,504)

         2,674,504
         

COMMERCIAL PAPER - 17.3%

      

Electronic and Other Electronic Components - 0.5%

      

General Electric Capital Services, Inc.,

      

0.55%, 8/3/09

      50,000      49,975
         

Multi-Seller Conduits - 15.0%

      

Barton Capital Corp.,

      

0.25%, 7/13/09

      50,000      49,996

Chariot Funding LLC,

      

0.28%, 7/17/09 (1)

     37,391      37,386

0.30%, 7/21/09

      16,315      16,312

0.29%, 7/29/09

      23,498      23,493

Edison Asset Securitization,

      

0.27%, 7/8/09

      48,877      48,874

Enterprise Funding LLC,

      

0.27%, 7/10/09

      50,000      49,997

Fairway Finance Corp.,

      

0.27%, 7/13/09

      30,000      29,997

0.28%, 7/23/09 (1)

     26,028      26,023

Jupiter Securitization Corp.,

      

0.23%, 7/1/09

      31,012      31,012

0.25%, 7/6/09

      50,000      49,998

0.26%, 7/7/09

      75,000      74,997

0.26%, 7/8/09 (1)

      73,529      73,525

Kitty Hawk Funding Corp.,

      

0.27%, 7/14/09

      50,000      49,995

0.28%, 7/20/09 (1)

     30,000      29,996

Liberty Street Funding Co.,

      

0.29%, 7/10/09 (1)

     45,000      44,997

0.29%, 7/20/09

      44,000      43,993

Park Avenue Receivables, (1)

     

0.28%, 7/9/09

      30,000      29,998

Ranger Funding Company LLC,

      

0.27%, 7/10/09

      33,365      33,363

0.28%, 7/14/09

      123,110      123,098

Sheffield Receivables Corp.,

      

0.25%, 7/6/09

      20,000      19,999

0.25%, 7/8/09

      30,000      29,999

0.25%, 7/10/09

      100,000      99,994

0.27%, 7/14/09

      50,000      49,995

0.28%, 7/23/09

      40,000      39,993

Thames Asset Global Securitization Number One, Inc.,

      

0.77%, 7/7/09

      165,000      164,979

0.45%, 7/15/09

      65,001      64,990
         
        1,336,999
         

Non-U.S. Bank - Non-U.S. Government - 1.4%

      

Danske Corp., Sovereign Gtd.,

      

1.05%, 7/20/09

      57,000      56,968

1.17%, 7/28/09

      30,000      29,974

1.50%, 8/17/09

      35,000      34,932
         
        121,874
         

 

MONEY MARKET FUNDS     2     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

COMMERCIAL PAPER - 17.3% continued

      

Non-U.S. Depository Institutions - 0.4%

      

Westpac Capital Corp.,

      

0.34%, 9/8/09

    $ 40,000    $ 39,974
         

Total Commercial Paper (Cost $1,548,822)

         1,548,822
         

CORPORATE NOTES/BONDS - 6.0%

      

Bank Holding Companies - 2.3%

      

Citigroup, Inc., FDIC Gtd., FRN,

      

0.94%, 8/5/09

      100,000      100,000

JPMorgan Chase & Co., FDIC Gtd., FRN,

      

1.36%, 7/1/09

      100,000      100,000
         
        200,000
         

Non-Depository Personal Credit - 0.7%

      

General Electric Capital Corp., FRN,

      

0.36%, 7/24/09

      65,000      65,000
         

Supranational - 1.1%

      

International Bank for Reconstruction & Development,

      

0.73%, 6/10/11

      100,000      100,000
         

U.S. Depository Institutions - 1.9%

      

Bank of America N.A., FDIC Gtd.,

      

0.66%, 9/14/09, FRN

      100,000      100,000

1.05%, 1/22/10

      70,000      70,000
         
        170,000
         

Total Corporate Notes/Bonds (Cost $535,000)

         535,000
         

EURODOLLAR TIME DEPOSITS - 9.7%

      

Non-U.S. Depository Institutions - 8.1%

      

Banco Santander Centrale Hispano, Madrid,

      

0.27%, 7/1/09

      325,000      325,000

Danske Bank, Copenhagen, Denmark,

      

0.31%, 7/1/09

      125,000      125,000

Nordea Bank Finland, Helsinki,

      

0.30%, 7/1/09

      95,000      95,000

UBS AG, Grand Cayman,

      

0.31%, 7/1/09

      175,000      175,000
         
        720,000
         

U.S. Depository Institutions - 1.6%

      

Wells Fargo Bank, N.A., San Francisco, Grand Cayman,

      

0.08%, 7/1/09

      150,000      150,000
         

Total Eurodollar Time Deposits (Cost $870,000)

         870,000
         

PROMISSORY NOTE - 1.4%

      

Security, Commodity, Brokers/Dealers - 1.4%

      

Goldman Sachs Group, FDIC Insured,

      

0.45%, 9/25/09

      125,000      125,000
         

Total Promissory Note (Cost $125,000)

         125,000
         

U.S. GOVERNMENT AGENCIES - 20.9% (2)

      

Fannie Mae - 2.5%

      

FNMA Discount Notes,

      

2.90%, 7/13/09

      40,000      39,961

0.61%, 9/8/09

      25,000      24,971

1.00%, 12/1/09

      20,000      19,915

0.85%, 12/21/09

      20,000      19,918

FNMA FRN,

      

1.03%, 7/13/09

      45,000      44,971

0.97%, 8/5/09

      40,000      39,978

FNMA Note,

      

5.13%, 7/13/09

      35,000      35,025
         
        224,739
         

 

MONEY MARKET FUNDS     3     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCIES - 20.9% (2) continued

      

Federal Home Loan Bank - 13.7%

      

FHLB Bonds,

      

1.05%, 2/23/10

    $ 25,000    $ 24,983

1.05%, 3/5/10

      10,000      9,996

1.10%, 3/10/10

      50,000      49,981

4.38%, 3/17/10

      40,670      41,580

0.90%, 4/7/10

      40,000      39,982

0.88%, 4/15/10

      50,000      50,000

0.82%, 4/28/10

      25,000      24,996

0.80%, 4/30/10

      30,000      30,010

0.80%, 5/17/10

      30,000      29,984

0.55%, 6/10/10

      35,000      34,981

0.70%, 6/23/10

      32,500      32,500

0.70%, 6/25/10

      32,000      32,000

FHLB Discount Notes,

      

0.45%, 7/13/09

      30,000      29,996

1.12%, 12/8/09

      150,000      149,253

0.85%, 12/11/09

      75,000      74,711

0.75%, 1/12/10

      25,000      24,898

1.00%, 2/10/10

      20,000      19,876

1.00%, 2/23/10

      40,000      39,737

1.00%, 3/4/10

      45,000      44,692

FHLB FRN,

      

0.53%, 7/1/09

      50,000      50,000

0.65%, 7/1/09

      100,000      100,000

0.72%, 7/1/09

      40,000      40,000

0.79%, 7/1/09

      40,000      40,000

0.82%, 7/1/09

      75,000      75,000

0.85%, 7/1/09

      60,000      59,992

1.02%, 7/28/09

      75,000      75,000
         
        1,224,148
         

Freddie Mac - 4.7%

      

FHLMC Discount Notes,

      

2.94%, 8/17/09

      30,000      29,885

1.00%, 2/1/10

      50,000      49,701

FHLMC FRN,

      

1.27%, 7/1/09

      59,900      59,969

0.29%, 7/18/09

      65,000      65,005

0.63%, 9/3/09

      75,000      74,973

0.62%, 9/10/09

      75,000      74,964

FHLMC Note,

      

1.25%, 3/23/10

      60,000      60,000
         
        414,497
         

Total U.S. Government Agencies (Cost $1,863,384)

         1,863,384
         

U.S GOVERNMENT OBLIGATIONS - 3.9%

      

U.S. Treasury Bills - 2.3%

      

0.58%, 12/17/09

      95,000      94,739

0.51%, 4/1/10

      55,000      54,785

0.52%, 6/3/10

      25,000      24,878

0.50%, 7/1/10

      27,000      26,864
         
        201,266
         

 

MONEY MARKET FUNDS     4     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 3.9% continued

      

U.S. Treasury Notes - 1.6%

      

3.63%, 7/15/09

    $ 30,000    $ 30,016   

4.63%, 7/31/09

      90,000      90,183   

4.63%, 11/15/09

      25,000      25,388   
           
        145,587   
           

Total U.S. Government Obligations (Cost $346,853)

         346,853   
           

Investments, at Amortized Cost ($7,963,563)

         7,963,563   
           

REPURCHASE AGREEMENTS - 11.3%

      

(Collateralized at a minimum of 102%)

      

Joint Repurchase Agreements - 0.8% (3)

      

Morgan Stanley & Co., Inc., dated 6/30/09, repurchase price $21,309

      

0.01%, 7/1/09

      21,309      21,309   

Societe Generale - New York Branch, dated 6/30/09, repurchase price $21,309

      

0.02%, 7/1/09

      21,309      21,309   

UBS Securities LLC, dated 6/30/09, repurchase price $31,964

      

0.01%, 7/1/09

      31,964      31,964   
           
        74,582   
           

(Collateralized at a minimum of 102%)

      

Repurchase Agreements - 10.5% (4)

      

Citigroup Global Markets, Inc., dated 6/30/09, repurchase price $34,183

      

0.10%, 7/1/09

      34,183      34,183   

JPMorgan Securities, dated 6/30/09, repurchase price $900,002

      

0.08%, 7/1/09

      900,000      900,000   
           
        934,183   
           

Total Repurchase Agreements (Cost $1,008,765)

         1,008,765   
           

Total Investments - 100.5% (Cost $8,972,328) (5)

         8,972,328   
           

Liabilities less Other Assets - (0.5)%

         (48,089 ) 
           

NET ASSETS - 100.0%

       $ 8,924,239   
           

 

(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

    FAIR MARKET
VALUE
(000S)		    COUPON
RATES		   MATURITY
DATES

U.S. Treasury Bonds

    $ 53,859    3.63% - 7.13%   2/15/23 - 4/15/29

U.S. Treasury Notes

    $ 21,475    1.13% - 1.63%   12/15/11 - 1/15/15

 

MONEY MARKET FUNDS     5     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

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

 

NAME

    FAIR MARKET
VALUE (000S)		    COUPON
RATES		   MATURITY
DATES

FHLMC

    $ 6,911    4.50% - 7.50%   10/1/20 - 3/1/38

FNMA

    $ 955,298    4.00% - 7.50%   11/1/17 - 9/1/48

 

(5) The cost for federal income tax purposes was $8,972,328.

Percentages shown are based on Net Assets.

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an

ongoing basis.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities

valuations based on commonly quoted benchmark interest rates and yield curves, and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market

participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Money Market Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

Investments

    Level 1
(000S)		    Level 2
(000S)		     Level 3
(000S)		    Total
(000S)

Money Market Fund

    $ —      $ 8,972,328 (1)    $ —      $ 8,972,328
                            

 

(1)

Classifications as defined in the Schedule of Investments.

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

 

     Investments in
Securities
(000S)		     Other Financial
Instruments *
(000S)		  

Balance as of 3/31/09

    $ 32,504      $ 22,585   

Realized gain (loss)

      (11,771 )      2,237   

Change in unrealized appreciation (depreciation)

      —          —     

Net purchases (sales)

      (65,357 )      —     

Transfers in and/or out of Level 3

      44,624        (24,822 ) 
                

Balance as of 6/30/09

    $ —        $ —     
                

 

* Other financial instruments include futures and forwards, if applicable.

 

MONEY MARKET FUNDS     6     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

ABBREVIATIONS AND OTHER INFORMATION

MONEY MARKET FUND continued

JUNE 30, 2009 (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

FDIC    Federal Deposit Insurance Corporation

FHLB    Federal Home Loan Bank

FHLMC    Federal Home Loan Mortgage Corporation

FNMA    Federal National Mortgage Association

FRN    Floating Rate Notes

Gtd.    Guaranteed

 

MONEY MARKET FUNDS     7     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5%

      

Alabama - 0.7%

      

Chatom IDB Gulf Opportunity Zone Revenue Bonds, Series 2008-A, Powersouth Energy Cooperative Project,

      

2.85%, 11/15/09

    $ 25,000    $ 25,000

Eutaw IDB PCR Refunding Bonds, Green County Project,

      

0.40%, 7/1/09

      6,550      6,550

Huntsville-Randolph School Educational Building Authority Lease Revenue VRDB, Series 2008, Randolph School Project (Compass Bank LOC),

      

0.30%, 7/9/09

      8,500      8,500

West Jefferson IDB PCR Refunding Bonds, Series 1998, Alabama Power Co. Project,

      

0.47%, 7/9/09

      20,000      20,000
         
        60,050
         

Alaska - 0.7%

      

Valdez Marine Terminal Revenue Refunding Bonds, Series 1993-C, Exxon Pipeline Co. Project,

      

0.17%, 7/1/09

      22,770      22,770

Valdez Marine Terminal Revenue Refunding VRDB, Series 2003-B, BP Pipelines, Inc. Project (BP PLC Gtd.),

      

0.25%, 7/1/09

      42,500      42,500
         
        65,270
         

Arizona - 1.1%

      

Arizona Health Facilities Authority Revenue Bonds, Series 2003B-2, The Terraces Project (Lloyds TSB Bank LOC),

      

0.31%, 7/9/09

      1,695      1,695

Arizona Health Facilities Authority Revenue VRDB, Series 2008-B, Banner Health (Bank of Nova Scotia LOC),

      

0.20%, 7/9/09

      885      885

Series 2008-C, Banner Health (Bank of Nova Scotia LOC),

      

0.35%, 7/9/09

      10,170      10,170

Arizona School District TANS Financing Program COPS, Series 2008,

      

3.00%, 7/30/09

      15,000      15,016

Arizona State Board of Regents University System Revenue Refunding VRDB, Series 2008-A (Lloyds TSB Bank LOC),

      

0.20%, 7/9/09

      1,500      1,500

Series 2008-B (Lloyds TSB Bank LOC),

      

0.16%, 7/9/09

      4,500      4,500

Phoenix IDA Multifamily Housing Revenue Refunding VRDB, Series 1999, Southwest Village Apartments Project (FNMA Gtd.),

      

0.32%, 7/9/09

      6,400      6,400

Pima County IDA Multifamily Housing Revenue Refunding VRDB, Series 2001, Eastside Place Apartments (FNMA LOC),

      

0.31%, 7/9/09

      6,790      6,790

Pima County IDA Revenue VRDB, Series 2002A, Senior Living Facilities La Posada (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      10,360      10,360

Salt River Project Agricultural Improvement and Power District Revenue Bonds, Citigroup Eagle Series 2006-14, (1)

      

0.35%, 7/9/09

      8,700      8,700

Tucson IDA Revenue VRDB, Series 2002A, Family Housing Resources Projects (FNMA LOC),

      

0.31%, 7/9/09

      15,320      15,320

Yavapai County IDA Hospital Facilities Revenue Refunding VRDB, Series 2008-A, Yavapai Regional Medical Center (UBS AG LOC),

      

0.29%, 7/9/09

      500      500

Yuma IDA Hospital Revenue VRDB, Series 2008, Yuma Regional Medical Center (JPMorgan Chase Bank LOC), (1)

      

0.23%, 7/9/09

      19,700      19,700
         
        101,536
         

 

MONEY MARKET FUNDS     1     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

California - 1.4%

      

ABAG Finance Authority for Nonprofit Corp. Revenue VRDB, Series A, Elder Care Alliance (Citibank N.A. LOC),

      

0.22%, 7/9/09

    $ 590    $ 590

Bay Area Toll Authority Toll Bridge Revenue VRDB, Series B, San Francisco Bay Area,

      

0.12%, 7/9/09

      4,500      4,500

California Infrastructure and Economic Development Bank Revenue VRDB, Series 2008-A, Jewish Community Center (Bank of America N.A. LOC),

      

0.25%, 7/1/09

      4,300      4,300

California Pollution Control Financing Authority Revenue Refunding VRDB, Series 2008, BP West Coast Production LLC,

      

0.15%, 7/1/09

      1,200      1,200

California State Department of Water Resources and Power Supply Revenue VRDB, Series 2002C-7 (FSA Corp. Insured),

      

0.70%, 7/9/09

      8,950      8,950

Series 2002-C-16 (Bank of New York LOC),

      

0.12%, 7/9/09

      12,000      12,000

California State Economic Recovery G.O. VRDB, Series 2004C-16 (FSA Corp. Insured),

      

1.00%, 7/9/09

      13,065      13,065

California State G.O. VRDB, Series A, Subseries A-3 (Bank of America N.A. LOC),

      

0.22%, 7/9/09

      7,170      7,170

California Statewide Communities Development Authority Revenue Refunding VRDB, Series 2008, Retirement Housing Foundation (KBC Bank N.V. LOC),

     

0.22%, 7/9/09

      9,000      9,000

California Statewide Communities Development Authority Revenue VRDB, Series 2001, Senior Living Facility (Banco Santander Central Hispano LOC),

      

0.22%, 7/9/09

      4,300      4,300

California Statewide Communities Development Authority Revenue VRDB, Series 2007-B, Front Porch Communities (Banco Santander Central Hispano LOC),

      

0.23%, 7/9/09

      16,500      16,500

Los Angeles Department of Water and Power Waterworks Revenue VRDB, Subseries 2001B-1,

      

0.17%, 7/9/09

      4,100      4,100

Orange County Housing Authority Development Revenue Refunding VRDB, Series 1998 I, Oasis Martinique (FNMA Gtd.),

      

0.20%, 7/9/09

      24,500      24,500

Orange County Improvement Bonds, Special Assessment, Irvine Coast Assessment District Number 88-1 (KBC Bank N.V. LOC),

      

0.15%, 7/1/09

      5,300      5,300

Orange County Sanitation District COPS VRDB, Series 2000-A,

      

0.35%, 7/1/09

      13,875      13,875
         
        129,350
         

Colorado - 1.9%

      

Arapahoe County Multifamily Revenue Refunding VRDB, Series 2001, Rent Housing Hunters Run (FHLMC LOC),

      

0.32%, 7/9/09

      9,355      9,355

Broomfield Urban Renewal Authority Tax Increment Revenue, Series 2005, Event Center Project (BNP Paribas LOC),

      

0.29%, 7/9/09

      10,200      10,200

Centerra Metropolitan District Number One Revenue Refunding VRDB, Series 2008 (Compass Bank LOC),

      

0.33%, 7/9/09

      15,000      15,000

Colorado Educational and Cultural Facilities Authority Revenue Bonds, Concordia University Irvine Project (U.S. Bank N.A. LOC),

      

0.40%, 7/1/09

      7,730      7,730

 

MONEY MARKET FUNDS     2     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Colorado - 1.9% continued

      

Colorado Educational and Cultural Facilities Authority Revenue Bonds, Immanuel Lutheran School Project (Bank of America N.A. LOC),

      

0.40%, 7/1/09

    $ 360    $ 360

Colorado Educational and Cultural Facilities Authority Revenue Bonds, Series 2005, Bear Creek School Project (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      695      695

Colorado Educational and Cultural Facilities Authority Revenue Bonds, Series 2006, Pueblo Serra Worship Holdings (Wells Fargo Bank N.A. LOC),

     

0.30%, 7/9/09

      13,740      13,740

Colorado Educational and Cultural Facilities Authority Revenue Bonds, Series 2008, Bethany Lutheran School Project (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      3,650      3,650

Colorado Educational and Cultural Facilities Authority Revenue Refunding Bonds, Series 2008, Nampa Christian Schools (U.S. Bank N.A. LOC),

     

0.30%, 7/9/09

      4,385      4,385

Colorado Health Facilities Authority Revenue Bonds, Frasier Meadows Manor Project (JPMorgan Chase Bank LOC),

      

0.30%, 7/9/09

      14,440      14,440

Colorado Health Facilities Authority Revenue Bonds, Series C-1, Christian Living Community (Citibank N.A. LOC),

      

0.30%, 7/9/09

      1,485      1,485

Colorado Health Facilities Authority Revenue Refunding VRDB, Covenant Retirement (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      11,930      11,930

Colorado Health Facilities Authority Revenue VRDB, Series 2004B, Adventist Health System Sunbelt (SunTrust Bank LOC),

      

2.65%, 7/9/09

      16,000      16,000

Colorado Housing and Finance Authority Revenue Bonds, Class 2003 I-A-2, SFM,

      

0.35%, 7/9/09

      6,500      6,500

Class 2005 1-B-2, SFM,

      

1.50%, 7/9/09

      5,310      5,310

Colorado Springs Utilities System Revenue VRDB, Series 2007-A,

      

0.83%, 7/9/09

      39,970      39,970

Lowry Economic Redevelopment Authority Revenue Refunding Bonds, Series 2008-A (Compass Bank LOC),

      

0.33%, 7/9/09

      7,000      7,000

Summit County Recreational Facilities Revenue Refunding Bonds, Series 1992, Copper Mountain (Bank of Nova Scotia LOC),

      

0.43%, 7/9/09

      4,180      4,180
         
        171,930
         

Connecticut - 0.6%

      

Connecticut State Health and Educational Facilities Authority Revenue VRDB, Series 2008-A, Pierce Memorial Baptist Home (Bank of America N.A. LOC),

      

0.18%, 7/9/09

      6,435      6,435

Connecticut State Health and Educational Facilities Authority Revenue VRDB, Series 2008-E, Kent School (Bank of America N.A. LOC),

      

0.40%, 7/9/09

      5,855      5,855

Connecticut State Health and Educational Facilities Authority Revenue VRDB, Series V-1, Yale University,

      

0.15%, 7/1/09

      11,700      11,700

Series Y-3, Yale University,

      

0.15%, 7/1/09

      21,650      21,650

Connecticut State Health and Educational Facilities Authority Tax Exempt CP, Series S-2, Yale University,

      

0.55%, 8/27/09

      9,890      9,890
         
        55,530
         

 

MONEY MARKET FUNDS     3     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

District of Columbia - 1.3%

      

District of Columbia G.O. Refunding VRDB, Series D (Dexia Credit Local LOC),

      

1.10%, 7/9/09

    $ 29,600    $ 29,600

Series 2008-D (Dexia Credit Local LOC),

      

0.97%, 7/9/09

      4,905      4,905

District of Columbia G.O. TRANS, Series 2009,

      

2.50%, 9/30/09

      15,000      15,052

District of Columbia Revenue VRDB, Series 1999, The Washington Home, Inc. (Wachovia Bank N.A. LOC),

      

0.30%, 7/9/09

      12,220      12,220

District of Columbia Revenue VRDB, Series 2000-B, George Washington University (Bank of America N.A. LOC),

      

0.27%, 7/9/09

      9,275      9,275

Series 2000-C, George Washington University (Bank of America N.A. LOC),

      

0.27%, 7/9/09

      9,015      9,015

District of Columbia Revenue VRDB, Series 2001, Henry J. Kaiser Foundation,

      

0.35%, 7/9/09

      10,100      10,100

District of Columbia Revenue VRDB, Series 2005, District of Columbia Preparatory Academy (Manufacturers & Traders Trust Co. LOC),

     

0.40%, 7/9/09

      5,255      5,255

District of Columbia Revenue VRDB, Series 2005, Georgetown Day School Issue (SunTrust Bank LOC),

      

2.50%, 7/9/09

      15,500      15,500

District of Columbia Water and Sewer Revenue Bonds, Citicorp Eagle Trust 8121A (FSA Corp. Insured), (1)

      

0.40%, 7/9/09

      7,590      7,590
         
        118,512
         

Florida - 11.4%

      

Alachua County Health Facilities Authority Continuing Care Revenue VRDB, Series 2002A, Oak Hammock University Project (Bank of Scotland PLC LOC),

      

0.40%, 7/1/09

      7,900      7,900

Atlantic Beach Health Care Facilities Revenue VRDB, Series 2007, Fleet Landing Project (Wachovia Bank N.A. LOC),

      

0.32%, 7/9/09

      14,600      14,600

Brevard County Health Facilities Authority Revenue Refunding VRDB, Series 2008, Retirement Housing Foundation (KBC Bank N.V. LOC),

      

0.30%, 7/9/09

      6,600      6,600

Broward County Revenue VRDB, Series 2007, Maimonides Shalom Academy (Comerica Bank LOC),

      

0.83%, 7/9/09

      9,940      9,940

Charlotte County Utility Revenue Refunding VRDB, Series 2003A

      

(FSA Corp. Insured),

      

0.31%, 7/9/09

      9,000      9,000

Citizens Property Insurance Corp. Revenue Notes, Series 2009 A-2, Senior Secured,

      

4.50%, 6/1/10

      70,000      70,544

Florida Multifamily Housing Finance Agency Revenue Bonds (FNMA Insured),

      

0.38%, 7/9/09

      8,100      8,100

Florida Multifamily Housing Finance Corp. Revenue Refunding VRDB, Series 2001 I-A, Charleston (FHLMC Insured),

      

0.32%, 7/9/09

      8,050      8,050

Florida Multifamily Housing Finance Corp. Revenue Refunding VRDB, Series C, Monterey Lake (FHLMC LOC),

      

0.32%, 7/9/09

      5,815      5,815

 

MONEY MARKET FUNDS     4     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Florida - 11.4% continued

      

Florida Multifamily Housing Finance Corp. Revenue Refunding VRDB, Series 2001-J-A, Island Club Apartments (FHLMC Gtd.),

      

0.32%, 7/9/09

    $ 1,940    $ 1,940

Florida Municipal Power Agency Revenue Refunding VRDB, Series 2008-E, All Requirements Supply (SunTrust Bank LOC),

      

0.90%, 7/1/09

      14,000      14,000

Florida State Board of Education G.O., Eagle 720050054 - Class A, (1)

      

0.35%, 7/9/09

      7,000      7,000

Halifax Hospital Medical Center Revenue Refunding VRDB, Series 2008 (Wachovia Bank N.A. LOC),

      

0.27%, 7/9/09

      36,500      36,500

Highlands County Health Facilities Authority Revenue Bonds, Series 2008 B, Adventist Health/Sunbelt (SunTrust Bank LOC),

      

2.65%, 7/9/09

      67,000      67,000

Highlands County Health Facilities Authority Revenue Refunding VRDB, Series 2006-A, Adventist Health (FSA Corp. Insured),

      

3.00%, 7/9/09

      6,629      6,629

Highlands County Health Facilities Authority Revenue Refunding VRDB, Series C, Adventist (SunTrust Bank LOC),

      

0.30%, 7/9/09

      10,860      10,860

Highlands County Health Facilities Authority Revenue VRDB, Series B, Adventist Health (SunTrust Bank LOC),

      

2.65%, 7/9/09

      34,400      34,400

Series E, Adventist Health (SunTrust Bank LOC),

      

2.77%, 7/9/09

      11,875      11,875

Series F, Adventist Health (SunTrust Bank LOC),

      

2.50%, 7/9/09

      5,000      5,000

Highlands County Health Facilities Authority Revenue VRDB, Series C, Adventist (SunTrust Bank LOC),

      

2.65%, 7/9/09

      57,600      57,600

Series 2, Adventist (SunTrust Bank LOC),

      

2.65%, 7/9/09

      10,725      10,725

Highlands County Health Facilities Authority Revenue VRDB, Series 1996A, Adventist Health System Sunbelt (SunTrust Bank LOC),

      

0.30%, 7/9/09

      54,990      54,990

Series 1997A, Adventist Health System Sunbelt (SunTrust Bank LOC),

      

2.65%, 7/9/09

      18,980      18,980

Series 2003B, Adventist Health System (SunTrust Bank LOC),

      

0.32%, 7/9/09

      10,805      10,805

Series 2003B, Adventist Health System (SunTrust Bank LOC),

      

3.20%, 7/9/09

      885      885

Hillsborough County IDA Health Care Facilities Revenue VRDB, Series 2008, Lifelink Foundation, Inc. Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      5,500      5,500

Hillsborough County IDA Revenue VRDB, Series 2008-B, University Community (Wachovia Bank N.A. LOC),

      

0.37%, 7/9/09

      9,600      9,600

Jackson County PCR Refunding Bonds, Series 1997, Gulf Power Co. Project,

      

0.27%, 7/1/09

      3,930      3,930

Jacksonville Electric System Revenue VRDB, Series Three-B-2,

      

0.32%, 7/9/09

      12,100      12,100

Series 2008 Three-A,

      

0.32%, 7/9/09

      60,000      60,000

Series 2009 Three-D-2-B,

      

0.27%, 7/9/09

      27,485      27,485

 

MONEY MARKET FUNDS     5     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Florida - 11.4% continued

      

Jacksonville Transportation Revenue VRDB, Series 2008-B (Wachovia Bank N.A. LOC),

      

0.27%, 7/9/09

    $ 59,500    $ 59,500

Jacksonville Water and Sewer System Revenue VRDB, Subseries 2008 B-1,

      

0.20%, 7/9/09

      9,800      9,800

Lake County Capital Improvement Revenue Bonds, Deutsche Bank Spears/Lifers Trust Various States, Goldman Sachs, Series 08-DB492 (Deutsche Bank LOC), (1)

      

0.30%, 7/9/09

      20,215      20,215

Lee County IDA Healthcare Facilities Revenue VRDB, Series 1999B, Shell Point Village Project (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      21,990      21,990

Miami-Dade County Health Facilities Authority Revenue Bonds, Series 2006 B-2, Miami Children’s Hospital Project (Wachovia Bank N.A. LOC),

     

0.33%, 7/9/09

      24,225      24,225

North Broward Hospital District Revenue Refunding VRDB, Series 2008-A (Toronto-Dominion Bank LOC),

      

0.16%, 7/9/09

      17,100      17,100

Orange County Finance Authority Multifamily Housing Revenue Refunding Bonds, Series 1997, Post Lake Apartments Project (FNMA Insured),

      

0.38%, 7/9/09

      20,650      20,650

Orange County Finance Authority Multifamily Housing Revenue Refunding VRDB, Series 2001-E, Heather Glen (FNMA Insured),

      

0.32%, 7/9/09

      10,000      10,000

Orange County Health Facilities Authority Revenue VRDB, Series 1995, Adventist Health System Group (SunTrust Bank LOC),

      

1.50%, 7/9/09

      33,900      33,900

Orange County Health Facilities Authority Revenue VRDB, Series 2008-D, Orlando Regional (SunTrust Bank LOC),

      

0.90%, 7/1/09

      14,100      14,100

Series 2008-E, Orlando Regional (Branch Banking & Trust Co. LOC),

      

0.27%, 7/9/09

      4,500      4,500

Series 2008-G, Orlando Regional (SunTrust Bank LOC),

      

2.65%, 7/9/09

      5,500      5,500

Orange County School Board COPS VRDB, Series 2008-B (Assured Guaranty Insured),

      

0.57%, 7/9/09

      60,400      60,400

Series 2008-C (SunTrust Bank LOC),

      

2.32%, 7/9/09

      11,700      11,700

Orlando Utilities Commission Water and Electric Revenue VRDB, Series 2002-B,

      

1.50%, 7/9/09

      25,400      25,400

Palm Beach County Health Facilities Authority Revenue VRDB, Series 2001, Bethesda Healthcare System Project (SunTrust Bank LOC),

      

0.90%, 7/1/09

      2,400      2,400

Palm Beach County School Board COPS, Series 2002B (FSA Corp. Insured),

      

1.00%, 7/9/09

      1,150      1,150

Pembroke Pines Charter School Revenue VRDB, Series 2008 (Assured Guaranty Insured),

      

0.36%, 7/9/09

      10,000      10,000

Pinellas County Health Facility Authority Revenue Refunding Bonds, Series A, Bayfront Hospital (SunTrust Bank LOC),

      

0.90%, 7/1/09

      5,000      5,000

Pinellas County Health Facility Authority Revenue Refunding VRDB, Series 2004, Bayfront Projects (SunTrust Bank LOC),

      

0.90%, 7/1/09

      33,840      33,840

 

MONEY MARKET FUNDS     6     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Florida - 11.4% continued

      

Polk County IDA Revenue VRDB, Series 2004, Lifepath Hospice Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

    $ 2,300    $ 2,300

St. Petersburg Health Facilities Authority Revenue Refunding Bonds, Series 1997, Menorah Manor Project (SunTrust Bank LOC),

      

0.30%, 7/9/09

      6,525      6,525

University Athletic Association, Inc. Athletic Program Revenue VRDB (SunTrust Bank LOC),

      

2.00%, 7/9/09

      13,625      13,625

University Athletic Association, Inc. Capital Improvement Revenue VRDB (SunTrust Bank LOC),

      

2.00%, 7/9/09

      7,600      7,600
         
        1,029,773
         

Georgia - 3.9%

      

Atlanta Development Authority Revenue VRDB, Series 2009, Georgia Aquarium, Inc. Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      10,000      10,000

Atlanta Water and Wastewater Revenue Bonds, Citigroup Eagle 20060130 Class A (Berkshire Hathaway, Inc. Gtd.), (1)

      

0.45%, 7/9/09

      14,430      14,430

Burke County Development Authority PCR Bonds, 1st Series, Georgia Power Co. Vogtle,

      

2.10%, 7/14/09

      8,400      8,400

Clayton County Housing Authority Revenue Bonds, Series 1985, Rivers Edge Development (FHLMC Gtd.),

      

0.30%, 7/9/09

      6,000      6,000

Cobb County Multifamily Housing Authority Revenue VRDB, Series 1996, Post Bridge Project (FNMA Insured),

      

0.28%, 7/9/09

      500      500

DeKalb County Hospital Authority Revenue VRDB, Series 2005, Revenue Anticipation Certificates, DeKalb Medical Center, Inc. Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      7,800      7,800

DeKalb County Multifamily Housing Authority Revenue Refunding Bonds, Briarcliff (FNMA Gtd.),

      

2.00%, 12/1/09

      35,750      35,750

DeKalb County Multifamily Housing Authority Revenue VRDB, Post Brook Project (FNMA Gtd.),

      

0.38%, 7/9/09

      4,300      4,300

DeKalb County Multifamily Housing Authority Revenue VRDB, Series 1997, Post Walk Project (FNMA Collateralized),

      

0.38%, 7/9/09

      14,800      14,800

Fulton County Development Authority Revenue VRDB, Series 2002, Lovett School Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      7,600      7,600

Fulton County Development Authority Revenue VRDB, Series 2002, Woodward Academy, Inc. (SunTrust Bank LOC),

      

2.50%, 7/9/09

      1,550      1,550

Fulton County Development Authority Revenue VRDB, Series 2004, Holy Innocents Episcopal School Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      10,000      10,000

Fulton County Residential Care Facilities for the Elderly Authority Revenue VRDB, Series C, Lenbrook Project, First Mortgage (Bank of Scotland PLC LOC),

      

0.30%, 7/9/09

      16,200      16,200

Gwinnett County Hospital Authority Revenue Bonds, Revenue Anticipation Certificates, Series 2007-A, Gwinnett Hospital Systems Project (FSA Corp. Insured),

      

2.32%, 7/9/09

      25,800      25,800

Gwinnett County Multifamily Housing Revenue VRDB, Series 1996, Post Corners Project (FNMA Gtd.),

      

0.38%, 7/9/09

      7,360      7,360

 

MONEY MARKET FUNDS     7     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Georgia - 3.9% continued

      

Monroe County Development Authority PCR Bonds, Georgia Power Co. Plant Scherer Project (Georgia Power Gtd.),

      

1.95%, 12/10/09

    $ 25,315    $ 25,315

Monroe County Development Authority PCR VRDB, Georgia Power,

      

0.22%, 7/1/09

      10,000      10,000

Municipal Electric Authority of Georgia Revenue VRDB, Series B, Project 1 (Dexia Credit Local LOC),

      

0.55%, 7/9/09

      57,050      57,050

Private Colleges and Universities Authority Revenue VRDB, Series 2008A, Emory University,

      

1.75%, 7/7/09

      7,000      7,000

Richmond County Development Authority Revenue Bonds, Series 2008-A, MCG Health, Inc. Project (UBS AG LOC),

      

0.22%, 7/9/09

      13,900      13,900

Richmond County Hospital Authority Revenue Bonds, Series 2003, Revenue Anticipation Certificates, University Health Services, Inc. Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      8,000      8,000

Roswell Multifamily Housing Authority Revenue Refunding VRDB, Series 2002, Chambrel at Roswell (FNMA Gtd.),

      

0.32%, 7/9/09

      10,000      10,000

Smyrna Multifamily Housing Authority Revenue Bonds, Series 1997, F&M Villages Project (FNMA Gtd.),

      

0.28%, 7/9/09

      4,500      4,500

Smyrna Multifamily Housing Authority Revenue VRDB, Series 1995, Hills of Post Village Project (FNMA Gtd.),

      

0.28%, 7/9/09

      4,400      4,400

Smyrna Multifamily Housing Authority Revenue VRDB, Series 1996, Gardens Post Village Project (FNMA Gtd.),

      

0.28%, 7/9/09

      11,200      11,200

State of Georgia G.O. VRDB, Series 2006 H-1,

      

0.35%, 7/9/09

      23,603      23,603

Thomasville Hospital Authority Revenue Anticipation Certificates, Series 2003, John D. Archbold Memorial Hospital Project (SunTrust Bank LOC),

     

2.50%, 7/9/09

      5,000      5,000
         
        350,458
         

Hawaii - 0.0%

      

Hawaii State Department of Budget and Finance Special Purpose Revenue VRDB, Series 2009-B, The Queens Health (Bank of America N.A. LOC),

      

0.33%, 7/9/09

      4,900      4,900
         

Idaho - 0.2%

      

Idaho Health Facilities Authority Revenue VRDB, Series 2009-A, St. Luke’s Health System Project (Wells Fargo Bank N.A. LOC),

      

0.17%, 7/9/09

      8,000      8,000

Series 2009-B, St. Luke’s Health System Project (Harris N.A. LOC),

      

0.22%, 7/9/09

      12,000      12,000
         
        20,000
         

Illinois - 10.7%

      

Bi-State Development Agency of the Missouri-Illinois Metropolitan District Revenue VRDB, Series 2005A, Suburban Mass Transit Metrolink (JPMorgan Chase Bank LOC),

      

0.22%, 7/9/09

      29,300      29,300

Chicago G.O. VRDB, Series B-1,

      

0.18%, 7/1/09

      22,900      22,900

Series 21-B-3, Neighborhoods Alive (Bank of America N.A. LOC),

      

0.25%, 7/1/09

      5,900      5,900

Series 21-B-4, Neighborhoods Alive (Bank of New York LOC),

      

0.20%, 7/1/09

      5,185      5,185

 

MONEY MARKET FUNDS     8     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Illinois - 10.7% continued

      

Chicago O’Hare International Airport Revenue VRDB, Series D, 3rd Lien (Dexia Credit Local LOC),

      

0.47%, 7/9/09

    $ 25,000    $ 25,000

Chicago Wastewater Transmission Revenue Refunding VRDB, Subseries 2008 C-1 (Harris N.A. LOC),

      

0.23%, 7/1/09

      3,800      3,800

City of Chicago G.O. Refunding VRDB, Series 2005D, Project Refunding (FSA Corp. Insured),

      

0.90%, 7/9/09

      63,160      63,160

City of Chicago G.O. Refunding VRDB, Series 2007-F,

      

0.18%, 7/1/09

      7,925      7,925

City of Chicago Revenue VRDB, Subseries 2004-3 (State Street Bank & Trust LOC),

      

0.30%, 7/9/09

      3,225      3,225

Cook County G.O. Unlimited Sales TANS, Series 2008,

      

3.00%, 8/3/09

      17,500      17,522

Illinois Development Finance Authority IDR VRDB, Series 1999, Gas Technology Project (Harris N.A. LOC),

      

0.30%, 7/9/09

      1,700      1,700

Illinois Development Finance Authority Revenue Bonds, Series 2003, Carmel High School Project (Bank of America N.A. LOC),

      

0.47%, 7/9/09

      6,200      6,200

Illinois Development Finance Authority Revenue VRDB, Series 1998, American Youth Hostels Project (Harris N.A. LOC),

      

0.30%, 7/9/09

      6,685      6,685

Illinois Development Finance Authority Revenue VRDB, Series 1998, Wheaton Academy Project (Harris N.A. LOC),

      

0.42%, 7/9/09

      9,000      9,000

Illinois Development Finance Authority Revenue VRDB, Series 2003, Jewish Council Youth Services (Harris N.A. LOC),

      

0.30%, 7/9/09

      2,655      2,655

Illinois Development Finance Authority Revenue VRDB, Series 2003, Learn Charter School Project (Harris N.A. LOC),

      

0.30%, 7/9/09

      2,830      2,830

Illinois Educational Facilities Authority Revenue Bonds, Series A, Illinois Institute of Technology Student Housing (Harris N.A. LOC),

      

0.52%, 7/9/09

      19,195      19,195

Illinois Educational Facilities Authority Revenue Bonds, Series 2002, Aurora University (Harris N.A. LOC),

      

0.30%, 7/9/09

      13,200      13,200

Illinois Educational Facilities Authority Revenue VRDB, Northwestern University, Bank of America Macon Trust Variable Rate Certificates Series D, (1)

      

0.30%, 7/9/09

      7,005      7,005

Illinois Educational Facilities Authority Revenue VRDB, Series 2001, Concordia University River Project (Harris N.A. LOC),

      

0.50%, 7/1/09

      10,000      10,000

Illinois Finance Authority Revenue Bonds, Put Option, Series 2005, Mercy Alliance Project (Marshall & Ilsley Bank LOC),

      

1.65%, 7/9/09

      2,695      2,695

Illinois Finance Authority Revenue Bonds, Series A, All Saints Catholic (Harris N.A. LOC),

      

0.30%, 7/9/09

      10,600      10,600

Illinois Finance Authority Revenue Bonds, Series 2004, Robert Morris College (JPMorgan Chase Bank LOC),

      

0.35%, 7/9/09

      9,615      9,615

Illinois Finance Authority Revenue Bonds, Series 2004B, University of Chicago,

      

0.20%, 7/9/09

      2,000      2,000

 

MONEY MARKET FUNDS     9     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Illinois - 10.7% continued

      

Illinois Finance Authority Revenue Refunding Bonds, Series 2008, Prairie Crossing Project (Marshall & Ilsley Bank LOC),

      

2.34%, 7/9/09

    $ 9,440    $ 9,440

Illinois Finance Authority Revenue VRDB, Series 2004, Community Action Partnership (Citibank N.A. LOC),

      

0.52%, 7/9/09

      5,650      5,650

Illinois Finance Authority Revenue VRDB, Series 2004B, Central DuPage Health,

      

0.30%, 7/1/09

      7,500      7,500

Illinois Finance Authority Revenue VRDB, Series 2005C, Friendship Village Schaumburg (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      14,450      14,450

Illinois Finance Authority Revenue VRDB, Series 2005-C, Landing at Plymouth (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      15,740      15,740

Illinois Finance Authority Revenue VRDB, Series 2006 B, Loyola University Health System (Harris N.A. LOC),

      

0.22%, 7/9/09

      40,700      40,700

Illinois Finance Authority Revenue VRDB, Series 2007-A, McKinley Foundation Project (KeyBank N.A. LOC),

      

2.20%, 7/9/09

      21,545      21,545

Illinois Finance Authority Revenue VRDB, Series 2008-C, Northwest Community Hospital (Wells Fargo Bank N.A. LOC),

      

0.20%, 7/9/09

      5,500      5,500

Illinois Finance Authority Revenue VRDB, Series 2009-E, Carle Foundation (JPMorgan Chase Bank LOC),

      

0.25%, 7/9/09

      6,100      6,100

Illinois Finance Authority Revenue VRDB, Series B, Landing at Plymouth (Lloyds TSB Bank LOC),

      

0.31%, 7/9/09

      17,700      17,700

Illinois Finance Authority Revenue VRDB, Series D, The Clare At Water Tower Project (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      35,700      35,700

Illinois Finance Authority Revenue VRDB, Subseries 2008 B-3, Advocate Health,

      

0.26%, 7/9/09

      22,800      22,800

Illinois Finance Authority Revenue VRDB, WBEZ Alliance Project (Bank of America N.A. LOC),

      

0.40%, 7/9/09

      21,500      21,500

Illinois Health Facilities Authority Revenue Bonds, Series 2003A, Advocate Healthcare Network,

      

1.82%, 7/2/09

      9,425      9,425

Illinois Multifamily Finance Authority Revenue VRDB, Series 2005 (AMT), Villagebrook Apartments Project (FHLMC LOC),

      

0.43%, 7/9/09

      5,300      5,300

Illinois Multifamily Housing Development Authority Revenue VRDB, Series 2008, Alden Gardens Bloomingdale (Harris N.A. LOC),

      

0.30%, 7/9/09

      7,570      7,570

Illinois Multifamily Housing Development Authority Revenue VRDB, Series 2008-B, Lakeshore Plaza (JPMorgan Chase Bank LOC),

      

0.35%, 7/9/09

      12,180      12,180

Illinois Multifamily Housing Development Authority Revenue VRDB, Series I & II, Foxview Apartments (FHLMC Gtd.),

      

0.32%, 7/9/09

      15,125      15,125

Illinois State G.O. Certificates, Series 2009,

      

4.00%, 5/20/10

      74,000      75,494

 

MONEY MARKET FUNDS     10     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Illinois - 10.7% continued

      

Illinois State Toll Highway Authority Revenue Refunding VRDB, Series 2008A-1, Senior Priority,

      

0.82%, 7/9/09

    $ 50,000    $ 50,000

Series 2008A-2, Senior Priority,

      

1.25%, 7/9/09

      148,600      148,600

Illinois State Toll Highway Authority Revenue VRDB, Series A-1, Senior Priority,

      

0.65%, 7/9/09

      21,500      21,500

Kane County Revenue Bonds, Series 1993, Glenwood School for Boys (Harris N.A. LOC),

      

0.85%, 7/9/09

      5,700      5,700

Lisle Multifamily Housing Authority Revenue Bonds, Ashley of Lisle Project (FHLMC LOC),

      

0.30%, 7/9/09

      26,525      26,525

Normal G.O. VRDB, Series 2003, McLean County Project,

      

0.38%, 7/9/09

      4,750      4,750

Quad Cities Regional EDA Revenue Bonds, Augustana College Project (Harris N.A. LOC),

      

0.29%, 7/9/09

      14,700      14,700

University of Illinois Revenue Refunding VRDB, Series 2008, Health Services System (JPMorgan Chase Bank LOC),

      

0.30%, 7/9/09

      41,215      41,215

University of Illinois Revenue Refunding VRDB, Series 2008, University of Illinois Chicago South Campus Development (JPMorgan Chase Bank LOC),

     

0.35%, 7/9/09

      9,500      9,500

University of Illinois Revenue VRDB, Series 2008, Auxiliary Facilities System,

      

0.27%, 7/9/09

      8,170      8,170
         
        967,376
         

Indiana - 2.6%

      

Dearborn County Industrial Economic Development Revenue VRDB, Series 2006, Dearborn County Hospital Project (JPMorgan Chase Bank LOC),

      

0.35%, 7/9/09

      14,800      14,800

Indiana Bond Bank Revenue Notes, Series 2009-A, Advance Funding Program Notes,

      

2.00%, 1/5/10

      24,900      25,014

Indiana Development Finance Authority Industrial Revenue VRDB, Series 1999, Youth Opportunity Center Project (JPMorgan Chase Bank LOC),

      

0.85%, 7/9/09

      1,400      1,400

Indiana Development Finance Authority PCR Refunding Bonds, Southern Indiana (JPMorgan Chase Bank LOC),

      

0.35%, 7/9/09

      11,550      11,550

Indiana Finance Authority Health System Revenue VRDB, Series 2008-D, Sisters of St. Francis (Bank of America N.A. LOC),

      

0.28%, 7/9/09

      24,400      24,400

Indiana Finance Authority Hospital Revenue Bonds, Series 2008, Community Foundation Northwest Indiana (Harris N.A. LOC),

      

0.30%, 7/9/09

      6,800      6,800

Indiana Finance Authority Hospital Revenue Refunding VRDB, Series 2008-C, Clarian Health (Bank of New York LOC),

      

0.30%, 7/9/09

      12,200      12,200

Indiana Finance Authority Revenue Refunding VRDB, Series 2008 D-1, Trinity Health,

      

0.20%, 7/9/09

      21,400      21,400

Series 2008 D-2, Trinity Health,

      

0.20%, 7/9/09

      11,450      11,450

Indiana Health and Educational Facilities Financing Authority Revenue Refunding VRDB, Series 2006A, Hartsfield Community Village (Harris N.A. LOC),

      

0.30%, 7/9/09

      6,915      6,915

 

MONEY MARKET FUNDS     11     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Indiana - 2.6% continued

      

Indiana Health and Educational Facilities Financing Authority Revenue VRDB, Series C, Clarian Health (Branch Banking & Trust Co. LOC),

      

0.20%, 7/9/09

    $ 7,950    $ 7,950

Indiana Health and Educational Facilities Financing Authority Revenue VRDB, Series 2007, Marian College Project (JPMorgan Chase Bank LOC),

     

0.28%, 7/9/09

      6,000      6,000

Indiana Health Facility Financing Authority Revenue VRDB, Series 2000, Senior Living Greencroft Obligation Project (Bank of America N.A. LOC),

     

0.33%, 7/9/09

      10,489      10,489

Indiana Municipal Power Agency Power Supply System Revenue Bonds, Series 2255, JPMorgan Chase Putters (Berkshire Hathaway, Inc. Insured), (1)

      

0.43%, 7/9/09

      15,410      15,410

Indianapolis Multifamily Housing Revenue VRDB, Series 2008, Capital Place, Covington (FNMA Insured),

      

0.28%, 7/9/09

      10,600      10,600

Marshall County Industrial Economic Development Revenue VRDB, Series 2000, Culver Educational Foundation Project (Bank of New York LOC),

      

0.28%, 7/9/09

      22,700      22,700

Terre Haute Economic Development Revenue Bonds, Series 1985, First Financial Corp. Project (U.S. Bank N.A. LOC),

      

0.35%, 7/9/09

      2,000      2,000

Vincennes University Revenue VRDB, Series 2004G, Student Fees (JPMorgan Chase Bank LOC),

      

0.37%, 7/9/09

      21,065      21,065
         
        232,143
         

Iowa - 0.5%

      

Iowa Finance Authority Economic Development Revenue VRDB, Series 2002, Iowa West Foundation Project (U.S. Bank N.A. LOC),

      

0.35%, 7/9/09

      955      955

Iowa Finance Authority Healthcare Facilities Revenue VRDB, Care Initiatives Project (KBC Bank N.V. LOC),

      

0.30%, 7/1/09

      1,115      1,115

Iowa Finance Authority Health Facilities Revenue VRDB, Series A-1, Iowa Health (Assured Guaranty Insured),

      

0.27%, 7/9/09

      9,000      9,000

Series A-3, Iowa Health (Assured Guaranty Insured),

      

0.31%, 7/9/09

      4,900      4,900

Iowa Higher Education Loan Authority Revenue VRDB, Private College, Series 2000, Loras College Project (Bank of America N.A. LOC),

      

0.20%, 7/1/09

      15,450      15,450

Iowa State School Cash Anticipation Program Revenue Notes, Warrants, Series 2009-B, Iowa School Corps,

      

3.00%, 1/21/10

      14,000      14,171
         
        45,591
         

Kansas - 0.4%

      

Kansas Department of Transportation Highway Revenue Bonds, Series 2004 C-2,

      

0.25%, 7/9/09

      8,400      8,400

Series 2004 C-3,

      

0.25%, 7/9/09

      8,675      8,675

Kansas Development Finance Authority Revenue VRDB, Series 1998BB, Shalom Village Obligation Group (Citibank N.A. LOC),

      

0.31%, 7/9/09

      4,710      4,710

Kansas Development Finance Authority Revenue VRDB, Series 2004C, Adventist Health System/Sunbelt (SunTrust Bank LOC),

      

3.10%, 7/9/09

      7,170      7,170

Olathe Senior Living Facility Revenue VRDB, Series C-1, Catholic Care Campus (Bank of America N.A. LOC),

      

0.33%, 7/9/09

      4,800      4,800

 

MONEY MARKET FUNDS     12     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Kansas - 0.4% continued

      

University of Kansas Hospital Authority Revenue VRDB, KU Health System (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

    $ 1,980    $ 1,980
         
        35,735
         

Kentucky - 1.2%

      

City of Danville Municipal League Pooled Program Lease Revenue VRDB (Fifth Third Bank LOC),

      

3.00%, 7/1/09

      50,000      50,000

Fort Mitchell League of Cities Revenue VRDB, Series 2002A, Trust Lease Program (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      10,150      10,150

Henderson County Revenue Refunding VRDB, Murray-Calloway County Public Hospital Project (Branch Banking & Trust Co. LOC),

      

0.43%, 7/9/09

      3,155      3,155

Kentucky Economic Development Finance Authority Hospital Facilities Revenue VRDB, Series 2009-B-3, Baptist Healthcare System (Branch Banking & Trust Co. LOC),

      

0.28%, 7/9/09

      7,655      7,655

Series 2009-B-4, Baptist Healthcare System (Branch Banking & Trust Co. LOC),

      

0.24%, 7/9/09

      18,000      18,000

Kentucky Economic Development Finance Authority Medical Center Revenue VRDB, Series 2008-A, Ashland Hospital Corp. (Branch Banking & Trust Co. LOC),

      

0.28%, 7/9/09

      1,900      1,900

Kentucky Economic Development Finance Authority Revenue Refunding VRDB, Series 2008, Retirement Housing Foundation (KBC Bank N.V. LOC),

      

0.30%, 7/9/09

      4,015      4,015

Series 2008-B, Retirement Housing Foundation (KBC Bank N.V. LOC),

      

0.30%, 7/9/09

      7,705      7,705

Morehead League of Cities Revenue VRDB, Series 2004A, Trust Lease Program (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      9,939      9,939
         
        112,519
         

Louisiana - 2.1%

      

Ascension Parish IDB Revenue VRDB, Series 2007, IMTT-Geismar Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      31,000      31,000

Louisiana Public Facilities Authority Revenue Refunding VRDB, Series 2008 D-1, Christus Health (Bank of Nova Scotia LOC),

      

0.16%, 7/9/09

      7,900      7,900

Louisiana Public Facilities Authority Revenue VRDB, Series 2007, International Matex Tank Terminals (SunTrust Bank LOC),

      

2.50%, 7/9/09

      10,000      10,000

Louisiana Public Facilities Authority Revenue VRDB, Series 2008, Dynamic Fuels LLC Project (JPMorgan Chase Bank LOC),

      

0.20%, 7/1/09

      3,000      3,000

Louisiana Public Facilities Authority Revenue VRDB, Series 2008-B, Commcare Corp. Project (JPMorgan Chase Bank LOC),

      

0.31%, 7/9/09

      14,995      14,995

Louisiana State G.O. Refunding VRDB, Series 2008-A (BNP Paribas LOC),

      

0.26%, 7/9/09

      23,100      23,100

Louisiana State Municipal Natural Gas Purchasing and District Authority Revenue Bonds, Series 1411Q, JPMorgan Putters (JPMorgan Chase & Co. LOC), (1)

      

0.35%, 7/9/09

      42,644      42,644

Louisiana State Offshore Terminal Authority Deepwater Port Revenue Refunding Bonds, Series 2003B (JPMorgan Chase Bank LOC),

      

0.35%, 7/9/09

      5,700      5,700

Louisiana State Offshore Terminal Authority Deepwater Port Revenue Refunding VRDB, Series 2007-A, Loop LLC Project (SunTrust Bank LOC),

      

1.65%, 7/9/09

      54,020      54,020
         
        192,359
         

 

MONEY MARKET FUNDS     13     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Maryland - 2.3%

      

Ann Arundel County Revenue VRDB, Series 2008, Key School Facilities (Manufacturers & Traders Trust Co. LOC), (1)

      

0.35%, 7/9/09

    $ 9,300    $ 9,300

Baltimore County Housing Revenue Refunding Bonds, Series 1991, Spring Hill Apartments Project (KBC Bank N.V. LOC),

      

1.00%, 7/9/09

      10,355      10,355

Baltimore County Revenue VRDB, Series 1999, Calvert Hall College Project (Manufacturers & Traders Trust Co. LOC),

      

0.35%, 7/9/09

      8,770      8,770

Baltimore County Revenue VRDB, Series 2004, Notre Dame Preparatory School (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      5,165      5,165

Baltimore County Revenue VRDB, Series 2006, Maryvale Preparatory School (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      4,050      4,050

Gaithersburg Economic Development Revenue VRDB, Series B, Asbury Maryland Obligation (KBC Bank N.V. LOC),

      

0.35%, 7/9/09

      4,900      4,900

Maryland Economic Development Corp. Revenue Refunding VRDB, Series 1997, Jenkins Memorial, Inc. (Manufacturers & Traders Trust Co. LOC),

      

0.35%, 7/9/09

      3,075      3,075

Maryland Economic Development Corp. Revenue VRDB, Series 2007, Opportunity Builders Facility (Manufacturers & Traders Trust Co. LOC),

     

0.40%, 7/9/09

      6,260      6,260

Maryland Health and Higher Educational Facilities Authority Revenue Bonds, Series A, Pooled Loan Program (JPMorgan Chase Bank LOC),

      

0.30%, 7/9/09

      32,300      32,300

Maryland Health and Higher Educational Facilities Authority Revenue Refunding VRDB, Series 2005B, Adventist Healthcare (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      14,300      14,300

Maryland Health and Higher Educational Facilities Authority Revenue VRDB, Kennedy (SunTrust Bank LOC),

      

2.50%, 7/9/09

      9,000      9,000

Maryland Health and Higher Educational Facilities Authority Revenue VRDB, Series 2003B, Adventist Healthcare (Manufacturers & Traders Trust Co. LOC),

      

0.47%, 7/9/09

      8,800      8,800

Series 2005A, Adventist Healthcare (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      11,900      11,900

Maryland Health and Higher Educational Facilities Authority Revenue VRDB, Series 2008, Frederick Memorial Hospital (Branch Banking & Trust Co. LOC),

      

0.29%, 7/9/09

      10,800      10,800

Maryland Health and Higher Educational Facilities Authority Revenue VRDB, Series 2008-E, University of Maryland Medical System (SunTrust Bank LOC),

      

2.45%, 7/9/09

      13,600      13,600

Series 2008-H, University of Maryland Medical System (Manufacturers & Traders Trust Co. LOC),

      

0.35%, 7/9/09

      7,810      7,810

Maryland Health and Higher Educational Facilities Authority Revenue VRDB, Series A, Adventist Healthcare (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      13,900      13,900

Montgomery County Economic Development Revenue VRDB, Series 2004, Riderwood Village, Inc. Project (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      32,510      32,510
         
        206,795
         

Massachusetts - 3.3%

      

Massachusetts Bay Transportation Authority Sales Tax Revenue Bonds, Series 2002-A, Municipal CP Notes,

      

0.45%, 8/6/09

      6,000      6,000

 

MONEY MARKET FUNDS     14     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Massachusetts - 3.3% continued

      

Massachusetts State Development Finance Agency Revenue Bonds, Series 2008-A, Massachusetts Credit, Wilber School Apartments (FHLB Atlanta LOC),

      

0.28%, 7/9/09

    $ 6,000    $ 6,000

Massachusetts State Development Finance Agency Revenue Bonds, Series 2008-A, Seven Hills Foundation (Toronto-Dominion Bank LOC),

      

0.50%, 7/9/09

      4,000      4,000

Massachusetts State Development Finance Agency Revenue VRDB, Series 2003, Lesley University (Bank of America N.A. LOC),

      

0.33%, 7/9/09

      4,400      4,400

Massachusetts State Development Finance Agency Revenue VRDB, Series 2003, Phillips Academy,

      

0.24%, 7/9/09

      19,600      19,600

Massachusetts State Development Finance Agency Revenue VRDB, Series 2004, Groton School,

      

0.30%, 7/9/09

      7,500      7,500

Massachusetts State Development Finance Agency Revenue VRDB, Series 2007, Northfield Mount Hermon (JPMorgan Chase Bank LOC),

      

0.30%, 7/9/09

      45,000      45,000

Massachusetts State Development Finance Agency Revenue VRDB, Series 2007, Seashore Port-Deaconess, Inc. (Banco Santander Central Hispano LOC),

     

0.22%, 7/9/09

      5,000      5,000

Massachusetts State Development Finance Agency Revenue VRDB, Series 2008, Abby Kelley Foster Public School (Toronto-Dominion Bank LOC),

      

0.28%, 7/9/09

      4,900      4,900

Massachusetts State Development Finance Agency Revenue VRDB, Series 2008, Edgewood Retirement Community (Bank of America N.A. LOC),

      

0.75%, 7/9/09

      20,540      20,540

Massachusetts State Development Finance Agency Revenue VRDB, Series 2008 U-1, Boston University (Bank of Nova Scotia LOC),

      

0.15%, 7/9/09

      10,000      10,000

Massachusetts State G.O. Consolidated Loans, Series 2000-B (U.S. Treasuries Escrowed),

      

5.75%, 6/1/10

      10,000      10,512

Massachusetts State Health and Educational Facilities Authority Revenue VRDB, Series 2008-C, Health System (Bank of America N.A. LOC),

      

0.20%, 7/9/09

      7,870      7,870

Massachusetts State Health and Educational Facilities Authority Revenue VRDB, Series 2008-W, Northeastern University (Toronto-Dominion Bank LOC),

      

0.25%, 7/9/09

      14,615      14,615

Massachusetts State Water Resources Authority Revenue Refunding VRDB, Series 2008-A,

      

0.47%, 7/9/09

      61,000      61,000

Series 2008-F,

      

0.15%, 7/9/09

      15,200      15,200

Revere Multifamily Housing Authority Mortgage Revenue Refunding VRDB, Series 1991-C, Waters Edge Apartment Project (FSA Corp. Insured),

      

1.75%, 7/9/09

      23,990      23,990

University of Massachusetts Building Authority Revenue Refunding VRDB, Series 2008-4, Senior Community Gtd.,

      

0.25%, 7/9/09

      33,900      33,900
         
        300,027
         

Michigan - 2.0%

      

Ann Arbor Economic Development Corp. Limited Obligation Revenue Bonds, Series 2000A, Glacier Hills, Inc. Project (JPMorgan Chase Bank LOC),

     

0.30%, 7/9/09

      13,410      13,410

Ann Arbor Economic Development Corp. Limited Obligation Revenue Refunding Bonds, Series B, Glacier Hills Project (JPMorgan Chase Bank LOC),

     

0.30%, 7/9/09

      5,180      5,180

 

MONEY MARKET FUNDS     15     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

      PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Michigan - 2.0% continued

      

Farmington Hills Hospital Finance Authority Revenue Refunding VRDB, Series 2008-A, Botsford Obligated (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

    $ 7,905    $ 7,905

Grand Rapids Economic Development Corp. Revenue Refunding Bonds, Series 1991A, Amway Hotel (Bank of America N.A. LOC),

      

0.78%, 7/9/09

      1,100      1,100

Jackson County Economic Development Corp. Limited Obligation Revenue Refunding VRDB, Series 2001A, Vista Grande Villa (Bank of America N.A. LOC),

      

0.20%, 7/1/09

      7,640      7,640

Kentwood Economic Development Corp. Revenue VRDB, Series 2002B, Limited Obligation, Holland Home (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      9,685      9,685

Michigan State Hospital Finance Authority Revenue Refunding VRDB, Series 2008-B, McLaren Health Care (JPMorgan Chase Bank LOC),

      

0.21%, 7/9/09

      7,500      7,500

Michigan State Hospital Finance Authority Revenue VRDB, Marquette General Hospital (Assured Guaranty Insured),

      

0.30%, 7/9/09

      16,000      16,000

Michigan State Strategic Fund Limited Obligation Revenue Bonds, Lansing Saint Vincent Home Project (Comerica Bank Insured),

      

0.33%, 7/9/09

      3,115      3,115

Michigan State Strategic Fund Limited Obligation Revenue Refunding VRDB, Series 2008, Consumers Energy Co. (Wells Fargo Bank N.A. LOC),

      

0.25%, 7/9/09

      9,200      9,200

Michigan State Strategic Fund Limited Obligation Revenue VRDB, Series 2003, YMCA of Metropolitan Detroit Project (JPMorgan Chase Bank LOC),

     

0.30%, 7/9/09

      2,295      2,295

Michigan State Strategic Fund Revenue Bonds, Rest Haven Christian Services (KBC Bank N.V. LOC),

      

0.33%, 7/9/09

      7,985      7,985

State of Michigan G.O. RANS, Series 2008-A,

      

3.00%, 9/30/09

      88,000      88,205
         
        179,220
         

Minnesota - 1.6%

      

Arden Hills Housing and Healthcare Facilities Revenue Refunding Bonds, Series 1999A, Presbyterian Homes (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

      2,878      2,878

Austin Housing and Redevelopment Authority Revenue Refunding VRDB, Series 2004A, Cedars of Austin Project (Bank of America N.A. LOC),

      

0.45%, 7/9/09

      4,320      4,320

Burnsville Housing Revenue VRDB, Series 1999A, Provence LLC Project (Bank of America N.A. LOC),

      

0.35%, 7/9/09

      15,650      15,650

Fridley Senior Housing Revenue Refunding VRDB, Series 2007-A, Banfill Crossing (FNMA Insured),

      

0.35%, 7/9/09

      8,700      8,700

Mankato Multifamily Housing Revenue VRDB, Series 1997, Highland Hills Project (Bank of America N.A. LOC),

      

0.30%, 7/1/09

      7,285      7,285

Maple Grove Economic Development Revenue Bonds, Series 2004, Heritage Christian Academy (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      5,240      5,240

Minneapolis Health Care System Revenue VRDB, Series 2008-C, Fairview Health Services (Wells Fargo Bank N.A. LOC),

      

0.16%, 7/9/09

      5,800      5,800

Series 2008-D, Fairview Health Services (Wells Fargo Bank N.A. LOC),

      

0.16%, 7/9/09

      2,300      2,300

 

MONEY MARKET FUNDS    16     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Minnesota - 1.6% continued

      

Minneapolis Revenue VRDB, Series 2000, People Serving People Project (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

    $ 1,960    $ 1,960

Minnesota Agricultural and Economic Development Board Revenue VRDB, Series 2008 C-4, Health Care Facilities - Essentia (Assured Guaranty Insured),

      

0.28%, 7/1/09

      17,900      17,900

Minnesota Agricultural and Economic Development Board Revenue VRDB, YMCA of Metro Minneapolis Project (U.S. Bank N.A. LOC),

      

0.27%, 7/9/09

      8,000      8,000

Minnesota State Higher Education Facilities Authority Revenue VRDB, Series 2007-6Q, Concordia University St. Paul (U.S. Bank N.A. LOC),

      

0.40%, 7/1/09

      9,915      9,915

Robbinsdale Revenue Refunding VRDB, Series 2008 A-1, North Memorial (Wells Fargo Bank N.A. LOC),

      

0.33%, 7/9/09

      4,500      4,500

Series 2008 A-3, North Memorial (Wells Fargo Bank N.A. LOC),

      

0.22%, 7/9/09

      5,000      5,000

St. Paul Housing and Redevelopment Authority Revenue Bonds, Series A, Science Museum of Minnesota (U.S. Bank N.A. LOC),

      

0.32%, 7/9/09

      16,100      16,100

State of Minnesota Revenue Bonds, Series 2007-31, Clipper Tax-Exempt Certificate Trust, (1)

      

0.38%, 7/9/09

      25,900      25,900
         
        141,448
         

Mississippi - 1.3%

      

Jackson County PCR Refunding Bonds, Series 1993, Chevron USA, Inc. Project (Chevron Corp. Gtd.),

      

0.15%, 7/1/09

      11,350      11,350

Jackson County PCR Refunding VRDB, Series 1992, Chevron USA, Inc. Project (Chevron Corp. Gtd.),

      

0.22%, 7/1/09

      4,200      4,200

Mississippi Business Finance Corp. Gulf Opportunity Zone Revenue VRDB, Series 2007-C, Chevron USA, Inc. Project,

      

0.65%, 8/3/09

      27,000      27,000

Series 2007-D, Chevron USA, Inc. Project,

      

0.59%, 9/1/09

      10,000      10,000

Series 2007-E, Chevron USA, Inc. Project,

      

0.20%, 7/1/09

      25,550      25,550

Mississippi Business Finance Corp. Revenue VRDB, Edgewater Retail Partners (Compass Bank LOC),

      

0.37%, 7/9/09

      17,000      17,000

Mississippi Business Finance Corp. Revenue VRDB, Fondren Place Development Co. (FHLB Dallas LOC),

      

0.32%, 7/9/09

      11,075      11,075

Perry County PCR Refunding Bonds, Series 02, Leaf River Forest Production Project (Bank of America N.A. LOC),

      

0.32%, 7/9/09

      13,000      13,000
         
        119,175
         

Missouri - 3.0%

      

Chesterfield IDA Educational Facilities Revenue VRDB, Series 2003, Gateway Academy, Inc. Project (U.S. Bank N.A. LOC),

      

0.30%, 7/1/09

      505      505

Florissant IDA Revenue Refunding VRDB, Series 2008, Retirement Housing Foundation (KBC Bank N.V. LOC),

      

0.30%, 7/9/09

      6,845      6,845

Kansas City IDA Multifamily Housing Revenue Refunding VRDB, Coach House South Apartments (FHLMC LOC),

      

0.30%, 7/9/09

      10,100      10,100

 

MONEY MARKET FUNDS     17     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Missouri - 3.0% continued

      

Missouri Joint Municipal Electric Utility Commission Power Project Revenue Bonds, Citi ROCS RR-II-R-11265 (Berkshire Hathaway, Inc. Insured), (1)

      

0.45%, 7/9/09

    $ 20,565    $ 20,565

Missouri State Development Finance Board Infrastructure Facilities Revenue VRDB, Series 2000C, St. Louis Convention Center (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

      9,200      9,200

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 1996-C, Washington University,

      

0.27%, 7/1/09

      32,000      32,000

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 1999B, St. Louis University,

      

0.35%, 7/1/09

      2,200      2,200

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 2000, Lutheran Senior Services (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      24,115      24,115

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 2001B, Bethesda Health Group (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

      9,525      9,525

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 2004A, Lutheran Church (Bank of America N.A. LOC),

      

0.40%, 7/1/09

      21,045      21,045

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 2007, Lutheran Church Extension (Fifth Third Bank LOC),

      

3.90%, 7/1/09

      31,630      31,630

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 2008-A, Children’s Mercy Hospital (UBS AG LOC),

      

0.34%, 7/9/09

      7,300      7,300

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 2008-D, Sisters Mercy Health,

      

0.23%, 7/9/09

      35,000      35,000

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series 2009, Saint Louis Priory School Project (U.S. Bank N.A. LOC),

     

0.30%, 7/9/09

      3,300      3,300

Missouri State Health and Educational Facilities Authority Revenue VRDB, Series C-5, SSM Health,

      

0.25%, 7/9/09

      8,600      8,600

Platte County IDA Multifamily Housing Revenue Refunding Bonds, Series 1996, Wexford Place Project (FHLMC Gtd.), (1)

      

0.32%, 7/9/09

      7,730      7,730

St. Charles County IDA Revenue Refunding VRDB, Country Club Apartments (FNMA LOC),

      

0.35%, 7/9/09

      19,000      19,000

St. Charles County IDA Revenue Refunding VRDB, Series 1993, Remington Apartments Project (FNMA Gtd.),

      

0.35%, 7/9/09

      10,700      10,700

St. Charles County IDA Revenue Refunding VRDB, Series 1995, Casalon Apartments Project (FNMA Gtd.),

      

0.35%, 7/9/09

      6,170      6,170

St. Louis County IDA Revenue Refunding VRDB, Series 1996-B, Friendship Village South County Project (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      4,725      4,725
         
        270,255
         

Montana - 0.0%

      

Forsyth PCR Refunding VRDB, Series 1988, Pacificorp Project (BNP Paribas LOC),

      

0.35%, 7/1/09

      4,515      4,515
         

 

MONEY MARKET FUNDS     18     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Nebraska - 0.4%

      

Omaha Public Power District Separate Electric Revenue Bonds, Eagle-720053008, Class A, Series 2005 (Berkshire Hathaway, Inc. Insured), (1)

      

0.45%, 7/9/09

    $ 27,760    $ 27,760

Scotts Bluff County Hospital Authority Revenue Refunding VRDB, Series 2005, Regional West Medical Center Number 1 (KeyBank N.A. LOC),

      

2.30%, 7/9/09

      10,030      10,030
         
        37,790
         

Nevada - 0.5%

      

Carson City Hospital Revenue VRDB, Series 2003-B, Carson Tahoe Hospital Project (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      3,800      3,800

Las Vegas Economic Development Revenue VRDB, Series A, Keep Memory Alive Project (Bank of New York LOC),

      

0.30%, 7/9/09

      24,100      24,100

Las Vegas Valley Water District G.O., Series B, Water Improvement,

      

0.70%, 7/1/09

      8,000      8,000

Series 2006-C, Water Improvement,

      

0.70%, 7/1/09

      2,805      2,805

Reno Hospital Revenue Refunding VRDB, Series 2009-A, Renown Regional Medical Center (Wells Fargo Bank N.A. LOC),

      

0.20%, 7/9/09

      4,100      4,100
         
        42,805
         

New Hampshire - 0.4%

      

New Hampshire Health and Educational Facilities Authority Revenue VRDB, Series 2007, Phillips Exeter Academy,

      

0.25%, 7/9/09

      25,000      25,000

New Hampshire Health and Educational Facilities Authority Revenue VRDB, Series 2008, Saint Anselm College (RBS Citizens N.A. LOC),

      

3.00%, 7/1/09

      2,900      2,900

New Hampshire Health and Educational Facilities Authority Revenue VRDB, Series A, LRG Healthcare (JPMorgan Chase Bank LOC),

      

0.33%, 7/9/09

      5,225      5,225
         
        33,125
         

New Jersey - 0.1%

      

New Jersey EDA Revenue VRDB, Series 2007, Ranney School Project (Bank of Nova Scotia LOC),

      

0.15%, 7/9/09

      10,200      10,200
         

New Mexico - 0.6%

      

New Mexico Finance Authority State Transportation Revenue Refunding Bonds, Subseries 2008 B-1, Sub Lien (State Street Bank & Trust LOC),

      

0.30%, 7/9/09

      8,800      8,800

Subseries 2008 B-2, Sub Lien (UBS AG LOC),

      

0.25%, 7/9/09

      2,800      2,800

New Mexico Hospital Equipment Loan Council Revenue VRDB, Series 2008-B, Presbyterian Healthcare,

      

0.30%, 7/9/09

      18,000      18,000

Series 2008-C, Presbyterian Healthcare,

      

0.23%, 7/9/09

      21,000      21,000
         
        50,600
         

New York - 8.3%

      

Chemung County Industrial Development Agency Revenue VRDB, Series 2007-A, Elmira College Project (JPMorgan Chase Bank LOC),

      

0.28%, 7/9/09

      5,500      5,500

 

MONEY MARKET FUNDS     19     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

New York - 8.3% continued

      

Hudson Yards Infrastructure Corp. Revenue Bonds, Eagle-20070030, Class A, Series 2007 (Citibank N.A. LOC), (1)

      

0.59%, 7/9/09

    $ 125,000    $ 125,000

Metropolitan Transportation Authority Dedicated Tax Revenue Refunding VRDB, Series 2008A,

      

0.80%, 7/9/09

      88,975      88,975

Metropolitan Transportation Authority Dedicated Tax Revenue Refunding VRDB, Subseries 2008 B-4 (KBC Bank N.V. LOC),

      

0.25%, 7/9/09

      10,225      10,225

Metropolitan Transportation Authority Dedicated Tax Revenue VRDB, Series 2002B (FSA Corp. Insured),

      

0.75%, 7/9/09

      2,150      2,150

Metropolitan Transportation Authority Revenue Bonds, CP Notes (ABN AMRO Bank N.V. LOC),

      

0.45%, 7/10/09

      58,500      58,500

Metropolitan Transportation Authority Tax Exempt Revenue Bonds, Series 2007-C, Municipal CP Notes (ABN AMRO Bank N.V. LOC),

      

0.45%, 7/1/09

      20,000      20,000

Series 2007-C, Municipal CP Notes (ABN AMRO Bank N.V. LOC),

      

0.35%, 7/2/09

      28,500      28,500

Series 2007-C, Municipal CP Notes (ABN AMRO Bank N.V. LOC),

      

0.60%, 7/2/09

      111,000      111,000

Metropolitan Transportation Authority Revenue VRDB, Subseries 2005 G-2 (BNP Paribas LOC),

      

0.27%, 7/1/09

      8,330      8,330

Monroe County Industrial Development Agency Revenue VRDB, Series 2008, Harley School Project (Manufacturers & Traders Trust Co. LOC),

     

0.35%, 7/9/09

      2,000      2,000

Nassau County Interim Finance Authority Revenue Bonds, Series 2009 C,

      

0.18%, 7/9/09

      40,000      40,000

New York City G.O., Subseries H-1,

      

0.60%, 7/1/09

      14,240      14,240

New York City Industrial Development Agency Civic Revenue VRDB, Sephardic Community Youth Center (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      2,000      2,000

New York City Multifamily Housing Development Corp. Rent Housing Revenue VRDB, Series 1997A, Monterey Project (FNMA Collateralized),

      

0.18%, 7/9/09

      3,500      3,500

New York City Municipal Water Finance Authority Water and Sewer Revenue Bonds, Series 2006-AA-3,

      

0.88%, 7/9/09

      2,600      2,600

New York City Municipal Water Finance Authority Water and Sewer Revenue Bonds, Series 2008-BB-2, Second Generation, Fiscal,

      

0.19%, 7/9/09

      34,000      34,000

New York City Municipal Water Finance Authority Water and Sewer Revenue VRDB, Subseries 2008 B-1,

      

0.18%, 7/9/09

      25,000      25,000

Subseries 2008 B-2,

      

0.18%, 7/1/09

      3,300      3,300

New York City Transitional Finance Authority Revenue Bonds, Series 3, Subseries 3B, New York City Recovery,

      

0.18%, 7/1/09

      18,885      18,885

New York City Trust for Cultural Resources Revenue VRDB, Series 2008 B-1, Lincoln Center Arts (U.S. Bank N.A. LOC),

      

0.17%, 7/9/09

      3,750      3,750

 

MONEY MARKET FUNDS     20     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

New York - 8.3% continued

      

New York State Dormitory Authority Non State Supported Debt Revenue VRDB, Series 2008-B, Cornell University,

      

0.30%, 7/1/09

    $ 16,800    $ 16,800

New York State Dormitory Authority Revenue Bonds, Series 1999-B, New York Library (Toronto-Dominion Bank LOC),

      

0.18%, 7/9/09

      3,500      3,500

New York State Dormitory Authority Revenue VRDB, Series 2008-D, City University (Toronto-Dominion Bank LOC),

      

0.14%, 7/9/09

      5,000      5,000

New York State Housing Finance Agency Revenue VRDB, Series 2002, 20 River Terrace Housing (FNMA Gtd.),

      

0.18%, 7/9/09

      11,900      11,900

New York State Housing Finance Agency Revenue VRDB, Series 2009-A, 320 West 38th Street (Wachovia Bank N.A. LOC),

      

0.23%, 7/9/09

      31,390      31,390

New York State Urban Development Corp. Revenue Bonds, Floating Rate Receipts SG-164 (U.S. Treasuries Escrowed), (1)

      

0.29%, 7/9/09

      19,500      19,500

New York State Urban Development Corp. Revenue VRDB, Series A3A, State Facilities,

      

0.75%, 7/9/09

      4,000      4,000

Onondaga County Industrial Development Agency Civic Facilities Revenue VRDB, Series 2005, Syracuse Resh Corp. Project (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      7,435      7,435

Suffolk County Industrial Development Agency Civic Facilities Revenue VRDB, Series 2006, St. Anthony’s High School (U.S. Bank N.A. LOC),

     

0.20%, 7/9/09

      6,500      6,500

Triborough Bridge and Tunnel Authority Revenue VRDB, Series 2005-A,

      

0.75%, 7/9/09

      11,950      11,950

Trust for Cultural Resources Revenue VRDB, Series 2006, WNYC Radio, Inc. (Wachovia Bank N.A. LOC),

      

0.17%, 7/9/09

      6,400      6,400

Westchester County Industrial Development Agency Revenue Refunding VRDB, Series 2008, Hebrew Hospital Continuing Care (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      13,690      13,690

Westchester County Industrial Development Agency Revenue VRDB, Series 2001, Catharine Field Home (Comerica Bank LOC),

      

0.40%, 7/9/09

      6,300      6,300
         
        751,820
         

North Carolina - 2.4%

      

Charlotte G.O. VRDB,

      

0.32%, 7/9/09

      19,825      19,825

Guilford County G.O. VRDB, Series 2005-B,

      

0.32%, 7/9/09

      4,700      4,700

Mecklenburg County COPS VRDB, Series 2008-A,

      

2.35%, 7/9/09

      39,825      39,825

New Hanover County G.O., Series 1995, School Bonds,

      

0.45%, 7/9/09

      2,250      2,250

North Carolina Capital Facilities Finance Agency Educational Revenue VRDB, Series 2007, Rocky Mountain Preparatory School (Branch Banking & Trust Co. LOC),

      

0.29%, 7/9/09

      6,500      6,500

North Carolina Capital Facilities Finance Agency Recreational Revenue VRDB, Series 2007-B, YMCA of Greater Charlotte Project (Wachovia Bank N.A. LOC),

      

0.30%, 7/9/09

      14,600      14,600

 

MONEY MARKET FUNDS     21     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

North Carolina - 2.4% continued

      

North Carolina Capital Facilities Finance Agency Revenue Bonds, Duke University, Citigroup Eagle 20060012, Class A, (1)

      

0.35%, 7/9/09

    $ 12,000    $ 12,000

North Carolina Medical Care Commission Healthcare Facilities Revenue Refunding Bonds, Series B, Duke University Health System,

      

0.24%, 7/9/09

      50,000      50,000

North Carolina Medical Care Commission Healthcare Facilities Revenue Refunding VRDB, Series 2007, Lutheran Retirement Project (SunTrust Bank LOC),

      

2.15%, 7/9/09

      6,500      6,500

North Carolina Medical Care Commission Healthcare Facilities Revenue Refunding VRDB, Series 2008-A1, University Health System Eastern (Bank of America N.A. LOC),

      

0.28%, 7/9/09

      7,600      7,600

Series 2008-B1, University Health System Eastern (Branch Banking & Trust Co. LOC),

      

0.18%, 7/9/09

      4,900      4,900

North Carolina Medical Care Commission Healthcare Facilities Revenue VRDB, Series 2004-A, Novant Health Group,

      

0.45%, 7/9/09

      25,350      25,350

North Carolina Medical Care Commission Healthcare Facilities Revenue VRDB, Series C, First Mortgage, Pennybyrn Project (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      7,900      7,900

North Carolina Medical Care Commission Hospital Revenue Bonds, Aces, Pooled Equipment Financing Project (KBC Bank N.V. LOC),

      

0.15%, 7/9/09

      8,700      8,700

University of North Carolina Revenue Bonds, Citigroup Eagle 720053014 Class 2005A, (1)

      

0.35%, 7/9/09

      5,800      5,800

Wake County G.O. VRDB, Series 2004-A,

      

0.55%, 7/9/09

      3,500      3,500
         
        219,950
         

North Dakota - 0.1%

      

Cass County Health Facilities Revenue VRDB, Series 2008 A-2, Health Care - Essentia (Assured Guaranty Insured),

      

0.30%, 7/9/09

      7,000      7,000
         

Ohio - 2.8%

      

American Municipal Power-Ohio, Inc. Revenue VRDB, Series 2006, Combustion Turbine Project (KeyBank N.A. LOC),

      

2.95%, 7/9/09

      9,610      9,610

Athens County Port Authority Housing Revenue Bonds, Series 2000, University Housing for Ohio, Inc. Project (Wachovia Bank N.A. LOC),

      

0.30%, 7/9/09

      28,865      28,865

Cleveland-Cuyahoga County Port Authority Revenue VRDB, Series 2008, Euclid Avenue Housing Corp. Project (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      3,000      3,000

Cuyahoga County Healthcare and Independent Living Facilities Revenue VRDB, Series B, Eliza Jennings Senior Care (Banco Santander Central Hispano LOC),

      

0.33%, 7/9/09

      22,860      22,860

Cuyahoga County Revenue VRDB, Subseries 2004-B1, Cleveland Clinic,

      

0.18%, 7/1/09

      8,075      8,075

Franklin County Healthcare Facilities Revenue Refunding Bonds, Series 2005, Chelsea First Community (KBC Bank N.V. LOC),

     

0.31%, 7/9/09

      17,400      17,400

Franklin County Hospital Revenue Refunding Bonds, Series 2008-A, Ohio Health Corp.,

      

0.25%, 7/9/09

      16,480      16,480

 

MONEY MARKET FUNDS     22     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Ohio - 2.8% continued

      

Franklin County Hospital Revenue Refunding VRDB, Series 1996-B, U.S. Health Corp. of Columbus (U.S. Bank N.A. LOC),

      

0.18%, 7/9/09

    $ 11,165    $ 11,165

Geauga County Revenue VRDB, Series 2007-A, South Franklin Circle Project (KeyBank N.A. LOC),

      

1.65%, 7/1/09

      20,000      20,000

Kent State University Revenue VRDB, Series 2008, General Receipts (KeyBank N.A. LOC),

      

2.95%, 7/9/09

      8,800      8,800

Lancaster Port Authority Gas Revenue VRDB, Series 2008,

      

0.27%, 7/9/09

      29,400      29,400

Montgomery County Economic Development Revenue Bonds, The Dayton Art Institute (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      500      500

Ohio Multifamily Housing Finance Agency Revenue VRDB, Series 2002F, Chambrel at Montrose (FNMA LOC),

      

0.32%, 7/9/09

      6,351      6,351

Ohio State Higher Educational Facilities Revenue VRDB, Series 2007, Ohio Dominican University Project (JPMorgan Chase Bank LOC),

      

0.28%, 7/9/09

      13,300      13,300

Ohio State Higher Educational Facilities Commission Revenue VRDB, Series 2008 B-2, Cleveland Clinic,

      

0.18%, 7/1/09

      8,200      8,200

Series 2008 B-3, Cleveland Clinic,

      

0.18%, 7/1/09

      27,800      27,800

Ohio State University Revenue VRDB, Series 2008-B, General Receipts,

      

0.13%, 7/9/09

      22,000      22,000

Richland County Health Care Facilities Revenue Refunding Bonds, Series 2004-A, Wesleyan Senior Living (JPMorgan Chase Bank LOC),

      

0.33%, 7/9/09

      3,895      3,895
         
        257,701
         

Oklahoma - 0.2%

      

Tulsa County Industrial Authority Capital Improvement Revenue VRDB, Series 2003A,

      

2.00%, 8/17/09

      19,000      19,000
         

Oregon - 0.7%

      

Clackamas County Hospital Facility Authority Revenue Refunding VRDB, Willamette Series A-1 (Bank of New York LOC),

      

0.30%, 7/9/09

      10,200      10,200

Medford Hospital Facilities Authority Revenue Refunding VRDB, Series 2009, Rogue Valley Manor Project (Wells Fargo Bank N.A. LOC),

      

0.23%, 7/1/09

      5,900      5,900

Oregon Health, Housing, Educational and Cultural Facilities Authority Revenue VRDB, Series 95A, Evangelical Lutheran Good Samaritan Hospital (U.S. Bank N.A. LOC),

      

0.35%, 7/9/09

      2,500      2,500

Oregon State Facilities Authority Revenue VRDB, Series 2005A, Quatama Crossing Housing (FNMA LOC),

      

0.32%, 7/9/09

      19,800      19,800

Oregon State Facilities Authority Revenue VRDB, Series 2008-B, Peacehealth (U.S. Bank N.A. LOC),

      

0.23%, 7/9/09

      12,900      12,900

Series 2008-C, Peacehealth (Wells Fargo Bank N.A. LOC),

      

0.17%, 7/9/09

      10,000      10,000
         
        61,300
         

 

MONEY MARKET FUNDS     23     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Pennsylvania - 1.8%

      

Berks County Municipal Authority Revenue VRDB, Series 2008-A, Phoebe-Devitt Home Project (Banco Santander Central Hispano LOC),

      

0.30%, 7/9/09

    $ 10,325    $ 10,325

Berks County Reading Hospital Revenue Bonds, Series 2008 A-1, RBC Municipal Products, Inc. Trust, Floaters Series 2008 C-13 (Royal Bank of Canada LOC), (1)

     

0.40%, 7/9/09

      10,000      10,000

Bucks County IDA Hospital Revenue VRDB, Series 2008-A, Grand View Hospital (Toronto-Dominion Bank LOC),

      

0.16%, 7/9/09

      8,400      8,400

Delaware River Port Authority Revenue Refunding VRDB, Series 2008-B (Toronto-Dominion Bank LOC),

      

0.16%, 7/9/09

      23,000      23,000

Haverford Township School District G.O., Series 2009 (Toronto-Dominion Bank LOC),

      

0.29%, 7/9/09

      8,000      8,000

Horizon Hospital System Authority Health and Housing Facilities Revenue VRDB, Series 2005, St. Paul Homes Project (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      7,695      7,695

Lancaster IDA Revenue VRDB, Series 2007, Mennonite Home Project (Manufacturers & Traders Trust Co. LOC),

      

0.40%, 7/9/09

      3,000      3,000

Lower Merion School District G.O. VRDB, Series 2009-A, Capital Project (State Street Bank & Trust LOC),

      

0.25%, 7/9/09

      9,000      9,000

Series 2009-B, Capital Project (U.S. Bank N.A. LOC),

      

0.23%, 7/9/09

      4,200      4,200

Pennsylvania Economic Development Financing Authority Revenue Refunding VRDB, Series 2009-B, PPL Energy Supply (Wachovia Bank N.A. LOC),

      

1.25%, 10/1/09

      15,000      15,000

Series 2009-C, PPL Energy Supply (Wachovia Bank N.A. LOC),

      

0.30%, 7/9/09

      6,000      6,000

Pennsylvania Multifamily Housing Finance Agency Revenue VRDB, Series 2008, Special Limited Obligation, Foxwood (Bank of America N.A. LOC),

     

0.29%, 7/9/09

      4,300      4,300

Pennsylvania Turnpike Commission Revenue VRDB, Series 2002B,

      

1.30%, 7/9/09

      10,000      10,000

Southcentral General Authority Revenue VRDB, Series 2005, Hanover Lutheran Village Project (Manufacturers & Traders Trust Co. LOC), (1)

      

0.35%, 7/9/09

      8,600      8,600

Southcentral General Authority Revenue VRDB, Series 2008-D, Wellspan Health Obligation Group (SunTrust Bank LOC),

      

2.32%, 7/9/09

      7,700      7,700

State Public School Building Authority Revenue VRDB, Series 2008, North Hills School District Project (RBS Citizens N.A. LOC),

      

2.50%, 7/9/09

      3,900      3,900

Westmoreland County IDA Revenue VRDB, Series C, Retirement Redstone (Bank of Nova Scotia LOC),

      

0.30%, 7/9/09

      19,845      19,845
         
        158,965
         

Puerto Rico - 0.6%

      

Commonwealth of Puerto Rico TRANS, Subseries 2009 A1 (Bank of Nova Scotia LOC),

      

3.00%, 7/30/09

      31,000      31,034

Subseries 2009 A2 (BNP Paribas LOC),

      

3.00%, 7/30/09

      13,000      13,014

Subseries 2009 A3 (Banco Bilbao Vizcaya Argentaria LOC),

      

3.00%, 7/30/09

      10,000      10,011
         
        54,059
         

 

MONEY MARKET FUNDS     24     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

South Carolina - 1.2%

      

Charleston Waterworks and Sewer Revenue VRDB, Series B, Capital Improvements,

      

0.32%, 7/9/09

    $ 27,200    $ 27,200

Easley Utility Revenue Refunding VRDB, Series 2007 (FSA Corp. Insured),

      

1.60%, 7/9/09

      32,730      32,730

Piedmont Municipal Power Agency Electric Revenue VRDB, Series 2008-B (Assured Guaranty Insured),

      

1.00%, 7/9/09

      20,900      20,900

South Carolina Jobs EDA Hospital Revenue Bonds, Series 2007-B, CareAlliance Health (Wachovia Bank N.A. LOC),

      

0.32%, 7/1/09

      12,000      12,000

South Carolina Jobs EDA Hospital Revenue VRDB, Series 2006-B, Oconee Memorial Hospital, Inc. (Wachovia Bank N.A. LOC),

      

0.28%, 7/9/09

      9,000      9,000

South Carolina State Housing Finance and Development Authority Multifamily Revenue VRDB, Series 2008, Rental Housing, Brookside Apartments (FHLMC Gtd.),

      

0.29%, 7/9/09

      5,000      5,000
         
        106,830
         

South Dakota - 0.2%

      

South Dakota Health and Educational Facilities Authority Revenue VRDB, Series 2008, Regional Health (U.S. Bank N.A. LOC),

      

0.30%, 7/1/09

      15,965      15,965
         

Tennessee - 1.9%

      

Metropolitan Government Nashville and Davidson County Health and Educational Facilities Board Revenue Refunding VRDB, Series 2002, Timberlake Project, Multifamily (FNMA Insured),

      

0.38%, 7/9/09

      1,150      1,150

Metropolitan Government Nashville and Davidson County Health and Educational Facilities Board Revenue VRDB, Series 1996A, Adventist Health System Sunbelt (SunTrust Bank LOC),

      

0.30%, 7/9/09

      1,780      1,780

Metropolitan Government Nashville and Davidson County Health and Educational Facilities Board Revenue VRDB, Series 1997A, Adventist Health System (SunTrust Bank LOC),

      

0.30%, 7/9/09

      1,500      1,500

Metropolitan Government Nashville and Davidson County Health and Educational Facilities Board Revenue VRDB, Series 2002, Ensworth School Project (SunTrust Bank LOC),

      

2.50%, 7/9/09

      2,155      2,155

Metropolitan Government Nashville and Davidson County IDB Revenue Refunding Bonds, Series 2002, Multifamily Housing, Spinnaker Cove Apartments Project (FNMA Gtd.),

      

0.38%, 7/9/09

      12,155      12,155

Metropolitan Government Nashville and Davidson County IDB Revenue Refunding VRDB, Series 2004, Ridgelake Apartments Project (FHLMC Gtd.),

      

0.30%, 7/9/09

      5,525      5,525

Montgomery County Public Building Authority Revenue Bonds, Series 2004, County Loan Pool (Bank of America N.A. LOC),

      

0.32%, 7/1/09

      6,750      6,750

Shelby County Health, Educational and Housing Facilities Board Revenue VRDB, Memphis University School Project (SunTrust Bank LOC),

      

2.75%, 7/9/09

      4,200      4,200

Shelby County Health, Educational and Housing Facilities Board Revenue VRDB, Series 2005, Hutchison School Project (Bank of America N.A. LOC),

     

0.33%, 7/9/09

      9,800      9,800

Shelby County Health, Educational and Housing Facilities Board Revenue VRDB, Series A-1, Gateway Projects (FNMA Gtd.),

      

0.33%, 7/9/09

      5,575      5,575

Sullivan County Health, Educational and Housing Facilities Board Revenue Bonds, Wellmont Health Systems Project (Bank of America N.A. LOC),

     

0.35%, 7/9/09

      58,800      58,800

 

MONEY MARKET FUNDS    25      NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Tennessee - 1.9% continued

      

Tennergy Corp. Gas Revenue Bonds, STARS Trust Receipts 1260B (BNP Paribas LOC), (1)

      

0.35%, 7/9/09

    $ 64,070    $ 64,070
         
        173,460
         

Texas - 10.3%

      

Austin Water and Wastewater System Revenue Refunding VRDB, Series 2008 (Dexia Bank Belgium LOC),

      

0.60%, 7/9/09

      15,400      15,400

Bexar County and Clear Creek Revenue Bonds, Series 2007-28, Clipper Tax-Exempt Certificate Trust, (1)

     

0.40%, 7/9/09

      29,500      29,500

Capital Area Housing Finance Corp. Revenue VRDB, Series 2009, Encino Pointe Apartments (Bank of America N.A. LOC),

      

0.50%, 7/9/09

      15,700      15,700

Crawford Educational Facilities Corp. Revenue Bonds, Series 2005, Prince of Peace Christian School (Wachovia Bank N.A. LOC),

      

0.30%, 7/9/09

      5,210      5,210

Series 2008, Prince of Peace Christian School (Wachovia Bank N.A. LOC),

      

0.30%, 7/9/09

      5,500      5,500

Dallas Water and Sewer Revenue Bonds, State Street Clipper Tax-Exempt Certificate Trust 2007-23, (1)

      

0.50%, 7/9/09

      20,000      20,000

Grand Prairie Independent School District G.O. VRDB, Building Bonds (PSF of Texas Gtd.),

      

1.90%, 8/1/09

      28,600      28,600

Grand Prairie Independent School District G.O. VRDB, Series 2004, School Building (PSF of Texas Gtd.),

      

1.90%, 8/3/09

      18,950      18,950

Gulf Coast Waste Disposal Authority PCR Refunding VRDB, Amoco Oil,

      

0.21%, 7/1/09

      4,300      4,300

Harris County Cultural Education Facilities Finance Corp. Medical Facilities Revenue Refunding VRDB, Series 2008-E, Baylor College Medicine (JPMorgan Chase Bank LOC),

      

0.22%, 7/9/09

      16,000      16,000

Harris County Cultural Education Facilities Finance Corp. Revenue VRDB, Series 2009 C-2, Methodist Hospital,

      

0.18%, 7/1/09

      13,200      13,200

Subseries C-1, Methodist Hospital,

      

0.18%, 7/1/09

      11,600      11,600

Harris County Health Facilities Development Corp. Hospital Revenue Refunding VRDB, Series 2008-A, Baylor College Medicine (Compass Bank LOC),

     

0.28%, 7/9/09

      13,100      13,100

HFDC of Central Texas, Inc. Retirement Facilities Revenue VRDB, Series 2006 B, Sears Caprock Corp. Project (Banco Santander Central Hispano LOC),

      

0.30%, 7/9/09

      3,275      3,275

HFDC of Central Texas, Inc. Retirement Facilities Revenue VRDB, Series 2006 C, Village Gleannloch Farms (Citibank N.A. LOC),

     

0.33%, 7/9/09

      5,850      5,850

Houston Independent School District G.O. VRDB, Series 2004, Schoolhouse (PSF of Texas Gtd.),

      

0.20%, 7/9/09

      41,815      41,815

Irving Independent School District G.O. Revenue VRDB, Series 2004A (PSF of Texas Gtd.),

      

1.85%, 8/1/09

      15,850      15,850

Katy Independent School District G.O. VRDB, Series C, Fort Bend, Harris and Waller Counties, CSH Building (PSF of Texas Gtd.),

      

0.25%, 7/9/09

      14,200      14,200

Lower Colorado River Authority Revenue Bonds, Series 2994, JPMorgan Chase Putters, Transmission Contract (Berkshire Hathaway, Inc. Insured), (1)

      

0.40%, 7/9/09

      2,705      2,705

 

MONEY MARKET FUNDS     26     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Texas - 10.3% continued

      

Lower Neches Valley Authority Industrial Development Corp. Exempt Facilities Revenue Refunding VRDB, Series 2001-A, Exxon Mobil Project,

      

0.28%, 7/1/09

    $ 6,950    $ 6,950

Lubbock Independent School District G.O. VRDB, Series 2004-A, School Building (PSF of Texas Gtd.),

      

0.25%, 7/9/09

      9,450      9,450

Manor Independent School District G.O. VRDB, Series 2006, School Building (PSF of Texas Gtd.),

      

1.90%, 8/1/09

      11,235      11,235

Northside Independent School District G.O. VRDB, Series 2009, School Building (PSF of Texas Gtd.),

      

1.20%, 6/1/10

      12,000      12,000

Plano Health Facilities Development Corp. Revenue Bonds, Series 2000, YMCA of Metro Dallas Project (Bank of America N.A. LOC),

      

0.35%, 7/9/09

      7,975      7,975

Rockwall Independent School District G.O. VRDB, Series 2006, School Building (PSF of Texas Gtd.),

      

0.95%, 7/9/09

      16,000      16,000

San Antonio Education Facilities Corp. Revenue VRDB, Series 2008, University Incarnate Word Project (JPMorgan Chase Bank LOC),

      

0.22%, 7/9/09

      28,000      28,000

State of Texas G.O., Citigroup Eagle 2006-126 Class A, (1)

      

0.35%, 7/9/09

      51,900      51,900

State of Texas G.O. Refunding, Veterans Housing Assistance Fund I (State of Texas G.O. Gtd.),

      

0.17%, 7/9/09

      5,500      5,500

State of Texas G.O. VRDB, Series 2008, Veterans Housing Assistance Fund II,

      

0.55%, 7/9/09

      44,430      44,430

State of Texas Transportation Community Mobility G.O. Bonds, Citigroup ROCS RR-II-R-12208, (1)

      

0.45%, 7/9/09

      10,165      10,165

Tarrant County Cultural Education Facilities Finance Corp. Revenue Refunding VRDB, Series 2008 C-5, Christus Health (Compass Bank LOC),

      

0.23%, 7/9/09

      10,000      10,000

Tarrant County Cultural Education Facilities Finance Corp. Revenue VRDB, Adventist Long Term Care (SunTrust Bank LOC),

      

2.65%, 7/9/09

      9,375      9,375

Tarrant County Cultural Education Facilities Finance Corp. Revenue VRDB, Series 2008-A, Texas Health Resources,

      

0.22%, 7/9/09

      6,500      6,500

Series 2008-E, Texas Health Resources,

      

0.17%, 7/9/09

      4,500      4,500

Series 2008-F, Texas Health Resources,

      

0.50%, 7/9/09

      14,625      14,625

Tarrant County Health Facilities Development Corp. Revenue VRDB, Series 1996-A, Adventist Health System Sunbelt (SunTrust Bank LOC),

      

2.65%, 7/9/09

      4,545      4,545

Tarrant County Housing Finance Corp. Revenue VRDB, Series 2003, Gateway Arlington Apartments Project (FNMA Gtd.),

      

0.32%, 7/9/09

      8,245      8,245

Texas Municipal Gas Acquisition and Supply Corp. II Revenue Bonds, Series 2007-042-1993B, STARS Certificates, (1)

      

0.28%, 7/9/09

      33,340      33,340

Texas State Transportation Commission Revenue Bonds, Citigroup ROCS RR-II-R-12272, (1) (2)

      

0.35%, 7/9/09

      12,200      12,200

 

MONEY MARKET FUNDS     27     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Texas - 10.3% continued

      

Texas State Transportation Commission Revenue VRDB, Series B, First Tier,

      

0.23%, 7/9/09

    $ 52,850    $ 52,850

Texas State Turnpike Authority Revenue Bonds, Citi ROCS RR-II-R-12195 (Berkshire Hathaway, Inc. Insured), (1)

      

0.45%, 7/9/09

      15,840      15,840

Texas TRANS, Series 2008,

      

3.00%, 8/28/09

      260,000      260,575

Texas Water Development Board Revenue Refunding VRDB, Series 2007-A, Sub Lien,

      

0.30%, 7/1/09

      429      429

Travis County Retirement Health Facilities Development Corp. Revenue VRDB, Series C, Querencia Barton Creek (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      2,000      2,000

Waco Educational Finance Corp. Revenue Refunding VRDB, Series 2008-A, Baylor University,

      

0.25%, 7/9/09

      11,300      11,300
         
        930,684
         

Utah - 0.5%

      

Emery County PCR Bonds, Pacificorp (Wells Fargo Bank N.A. LOC),

      

0.33%, 7/9/09

      10,000      10,000

Intermountain Power Agency Supply Revenue Bonds, Citicorp Eagle Trust CR-331 (FSA Corp. Insured), (1)

      

0.70%, 7/9/09

      8,780      8,780

Park City Revenue VRDB, Series 2007, Ski and Snowboard Association (Wells Fargo Bank N.A. LOC),

      

0.27%, 7/9/09

      3,380      3,380

Utah Water Finance Agency Revenue VRDB, Series 2008 B-3,

      

0.33%, 7/9/09

      23,900      23,900
         
        46,060
         

Virginia - 1.4%

      

Alexandria IDA Revenue Refunding VRDB, Series 2005, Goodwin House (Wachovia Bank N.A. LOC),

      

0.20%, 7/1/09

      4,300      4,300

Charlottesville IDA Educational Facilities Revenue Bonds, Series 2006-A, University of Virginia Foundation Projects (Wachovia Bank N.A. LOC),

     

0.27%, 7/9/09

      11,975      11,975

Fairfax County EDA Educational Facilities Revenue VRDB, Series 2003, The Madeira School (Bank of America N.A. LOC),

      

0.36%, 7/9/09

      20,000      20,000

Fredericksburg EDA Student Housing Facilities Revenue Refunding VRDB, Series 2008, UMW Apartments Project (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      10,300      10,300

Hampton Redevelopment and Multifamily Housing Authority Revenue Refunding VRDB, Hampton Center Apartments Project (FHLMC Insured),

      

0.30%, 7/9/09

      14,510      14,510

Hanover County EDA Revenue Refunding VRDB, Series 2008 D-2, Bon Secours Health (U.S. Bank N.A. LOC),

      

0.16%, 7/9/09

      6,900      6,900

Harrisonburg IDA Revenue Refunding Bonds, Series B, Mennonite Retirement (Citibank N.A. LOC),

      

0.33%, 7/9/09

      11,490      11,490

Lynchburg IDA Revenue Refunding VRDB, Series A, Centra Health (SunTrust Bank LOC),

      

2.50%, 7/9/09

      5,900      5,900

 

MONEY MARKET FUNDS     28     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Virginia - 1.4% continued

      

Newport News Redevelopment and Multifamily Housing Revenue Refunding VRDB, Series 2001, Springhouse Apartments Project (FHLMC Gtd.),

      

0.32%, 7/9/09

    $ 13,200    $ 13,200

Prince William County COPS VRDB, Series 2006B (Wachovia Bank N.A. LOC),

      

0.21%, 7/9/09

      8,775      8,775

Richmond IDA Revenue VRDB, Educational Facilities, Church Schools in Diocese (SunTrust Bank LOC),

      

1.00%, 7/1/09

      15,525      15,525
         
        122,875
         

Washington - 2.9%

      

Bremerton County Revenue Bonds, Series 2003, Kitsap Regional Conference Center Parking (Bank of America N.A. LOC),

      

0.34%, 7/9/09

      2,270      2,270

Energy Northwest Electric Revenue Refunding VRDB, Subseries 2008 F-1, Project 3,

      

0.55%, 7/9/09

      53,000      53,000

Subseries 2008 F-2, Project 3,

      

0.55%, 7/9/09

      30,000      30,000

Everett Washington Public Facilities District Revenue VRDB, Series 2007,

      

1.50%, 7/1/09

      1,400      1,400

Vancouver Housing Authority Revenue Refunding VRDB, Series 2008, Pooled Housing (FHLMC Gtd.),

      

0.32%, 7/9/09

      4,500      4,500

Washington State G.O., Series 1993B, Smith Barney Soc Gen Trust SGB-13, (1)

      

0.41%, 7/9/09

      20,600      20,600

Washington State Healthcare Facilities Authority Revenue VRDB, Series 2003, Association of Community and Migrant Health Centers (U.S. Bank N.A. LOC),

      

0.38%, 7/9/09

      1,985      1,985

Washington State Healthcare Facilities Authority Revenue VRDB, Series 2009-A, Multicare Health System (Wells Fargo Bank N.A. LOC),

      

0.20%, 7/9/09

      2,400      2,400

Series 2009-B, Multicare Health System (Wells Fargo Bank N.A. LOC),

      

0.17%, 7/9/09

      6,875      6,875

Washington State Higher Education Facilities Authority Revenue Refunding VRDB, Series 2007, St. Martins University Project (KeyBank N.A. LOC),

     

2.20%, 7/9/09

      8,800      8,800

Washington State Higher Education Facilities Authority Revenue Refunding VRDB, Series 2008, Seattle Pacific University (U.S. Bank N.A. LOC),

     

0.22%, 7/9/09

      8,600      8,600

Washington State Higher Education Facilities Authority Revenue Refunding VRDB, Series A, Gonzaga University Project (Bank of America N.A. LOC),

      

0.35%, 7/9/09

      45,479      45,479

Washington State Higher Education Facilities Authority Revenue VRDB, Series 2003A, Cornish College of Arts Project (Bank of America N.A. LOC),

     

0.37%, 7/9/09

      2,100      2,100

Washington State Housing Finance Commission Nonprofit Revenue VRDB, Bertschi School Project (Bank of America N.A. LOC),

      

0.40%, 7/9/09

      615      615

Washington State Housing Finance Commission Nonprofit Revenue VRDB, Series B, St. Thomas School Project (Bank of America N.A. LOC),

      

0.32%, 7/9/09

      5,000      5,000

Washington State Housing Finance Commission Nonprofit Revenue VRDB, Series C, Skyline at First Hill Project (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      41,000      41,000

 

MONEY MARKET FUNDS     29     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Washington - 2.9% continued

      

Washington State Housing Finance Commission Nonprofit Revenue VRDB, Series 2000, Living Care Centers Project (Wells Fargo Bank N.A. LOC),

      

0.27%, 7/9/09

    $ 7,840    $ 7,840

Washington State Housing Finance Commission Nonprofit Revenue VRDB, Series 2000, University Prep Academy Project (Bank of America N.A. LOC),

     

0.37%, 7/9/09

      3,700      3,700

Washington State Housing Finance Commission Nonprofit Revenue VRDB, Series 2006, District Council Number 5 (Wells Fargo Bank N.A. LOC),

      

0.27%, 7/9/09

      3,255      3,255

Washington State Revenue Bonds, Series 2007-37, Clipper Tax-Exempt Certificate Trust, (1)

      

0.45%, 7/9/09

      14,740      14,740
         
        264,159
         

West Virginia - 0.4%

      

Cabell County Revenue VRDB, Series 2001, Huntington YMCA (JPMorgan Chase Bank LOC),

      

0.85%, 7/9/09

      2,985      2,985

Monongalia County Building Commission Revenue Refunding Bonds, Series 2005B, Monongalia General Hospital Project (JPMorgan Chase Bank LOC),

     

0.35%, 7/9/09

      12,495      12,495

West Virginia EDA PCR Refunding VRDB, Series 2008-B, Ohio Power Co., Kammer (Royal Bank of Scotland PLC LOC),

      

0.30%, 7/9/09

      6,675      6,675

West Virginia State Hospital Finance Authority Revenue VRDB, Series 2008-A, Charleston Area Medical Center (Branch Banking & Trust Co. LOC),

      

0.20%, 7/9/09

      18,605      18,605
         
        40,760
         

Wisconsin - 2.5%

      

Milwaukee Redevelopment Authority Lease Revenue VRDB, Series 2005, University of Wisconsin, Kenilworth Project (U.S. Bank N.A. LOC),

      

0.35%, 7/9/09

      6,375      6,375

Milwaukee Redevelopment Authority Revenue VRDB, Series 2007, Riverwest Student Housing Project (Marshall & Ilsley Bank LOC),

      

1.78%, 7/9/09

      8,330      8,330

State of Wisconsin Revenue Bonds, Series 2007-5, Clipper Tax-Exempt Certificate Trust, (1)

      

0.45%, 7/9/09

      25,000      25,000

University of Wisconsin Hospitals and Clinics Authority Revenue Refunding VRDB, Series 2009-A (U.S. Bank N.A. LOC),

      

0.35%, 7/9/09

      4,870      4,870

Wauwatosa Housing Authority Revenue Refunding Bonds, Series 1995-B, San Camillo, Inc. (U.S. Bank N.A. LOC),

      

0.30%, 7/9/09

      4,200      4,200

Wisconsin Health and Educational Facilities Authority G.O. VRDB, Series 2009-A, Froedtert and Community Health (U.S. Bank N.A. LOC),

      

0.25%, 7/9/09

      15,000      15,000

Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2003, Mequon Jewish Project (JPMorgan Chase Bank LOC),

      

0.45%, 7/9/09

      6,060      6,060

Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2003-C, Mercy Health Systems (Marshall & Ilsley Bank LOC),

      

1.65%, 7/9/09

      6,935      6,935

Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2007-B, Newcastle Place, Inc. (Bank of America N.A. LOC),

      

0.30%, 7/9/09

      19,200      19,200

Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2008-B, Aurora Health Care (U.S. Bank N.A. LOC),

      

1.60%, 11/13/09

      21,665      21,665

 

MONEY MARKET FUNDS     30     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL INVESTMENTS - 96.5% continued

      

Wisconsin - 2.5% continued

      

Wisconsin Health and Educational Facilities Authority Revenue Refunding Bonds, Series 2007, Mercy Alliance, Inc. (Marshall & Ilsley Bank LOC),

      

3.25%, 7/9/09

    $ 8,600    $ 8,600

Wisconsin Health and Educational Facilities Authority Revenue Refunding Bonds, Series 2008 B-1, Marquette University (JPMorgan Chase Bank LOC),

      

0.35%, 7/9/09

      20,000      20,000

Wisconsin Health and Educational Facilities Authority Revenue VRDB, Series 2001, Lutheran College (U.S. Bank N.A. LOC),

      

0.30%, 7/1/09

      8,000      8,000

Wisconsin Health and Educational Facilities Authority Revenue VRDB, Series 2001, Riverview Hospital Association (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

      4,455      4,455

Wisconsin Health and Educational Facilities Authority Revenue VRDB, Series 2002A, Capital Access Pool, Vernon Memorial Hospital (KBC Bank N.V. LOC),

      

0.30%, 7/1/09

      6,895      6,895

Wisconsin Health and Educational Facilities Authority Revenue VRDB, Series 2008-A, Meriter Retirement Services, Capital Lakes, Inc. (KBC Bank N.V. LOC),

      

0.38%, 7/9/09

      600      600

Series 2008-B, Meriter Retirement Services, Capital Lakes Inc. (U.S. Bank N.A. LOC),

      

0.38%, 7/9/09

      6,490      6,490

Wisconsin Health and Educational Facilities Authority Revenue VRDB, Series 2008-B, Meriter Hospital (U.S. Bank N.A. LOC),

      

0.25%, 7/1/09

      3,900      3,900

Wisconsin Health and Educational Facilities Authority Revenue VRDB, Watertown Memorial Hospital, Inc. (JPMorgan Chase Bank LOC),

      

0.30%, 7/9/09

      15,000      15,000

Wisconsin School Districts Temporary Borrowing Program COPS TRANS, Series 2008-B, Cash Flow Management Program,

      

3.00%, 10/30/09

      12,500      12,553

Wisconsin Transportation Revenue Bonds, Series 2007-24, Clipper Tax-Exempt Certificate Trust, (1)

      

0.45%, 7/9/09

      21,745      21,745
         
        225,873
         

Wyoming - 0.4%

      

Platte County PCR Bonds, Series 1984A, Tri-State Generation & Transmission (National Rural Utility Cooperative Finance Co. Gtd.),

     

0.95%, 7/1/09

      24,400      24,400

Uintah County PCR Refunding VRDB, Series 1992, Chevron USA, Inc. Project (Chevron Corp. Gtd.),

      

0.20%, 7/1/09

      10,450      10,450
         
        34,850
         

Multiple States Pooled Securities - 1.7%

      

BB&T Municipal Trust, Floaters Series 5002 (Rabobank Group LOC), (1)

     

0.60%, 7/9/09

      74,755      74,755

BB&T Municipal Trust Revenue Bonds, Floaters Series 1007 (Branch Banking & Trust Co. LOC), (1)

      

0.30%, 7/9/09

      20,150      20,150

Floaters Series 1017 (Branch Banking & Trust Co. LOC), (1)

      

0.30%, 7/9/09

      34,360      34,360

Floaters Series 5001 (Rabobank Group LOC), (1)

      

0.44%, 7/9/09

      29,000      29,000
         
        158,265
         

Total Municipal Investments (Cost $8,738,563)

         8,738,563
         

 

MONEY MARKET FUNDS     31     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCY - 2.6% (3)

      

Federal Home Loan Bank - 2.6%

      

FHLB Discount Note,

      

0.01%, 7/1/09

    $ 238,317    $ 238,317
         

Total U.S. Government Agency (Cost $238,317)

         238,317
         

Total Investments - 99.1% (Cost $8,976,880) (4)

         8,976,880
         

Other Assets less Liabilities - 0.9%

         83,652
         

NET ASSETS - 100.0%

       $ 9,060,532
         

 

(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 June 30, 2009, the value of this restricted illiquid security amounted to approximately $12,200,000 or 0.1% of net assets.

Additional information on this restricted, illiquid security is as follows:

 

SECURITY

    ACQUISITION AND
ENFORCEABLE
DATE		    ACQUISITION
COST
(000S)

Texas State Transportation Commission Revenue Bonds (TX),

      

0.35%, 7/9/09

    6/17/09    $ 12,200

 

(3) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.

 

(4) The cost for federal income tax purposes was $8,976,880.

Percentages shown are based on Net Assets.

At June 30 2009, the industry sectors for the Municipal Money Market Fund were:

 

INDUSTRY SECTOR

    % OF NET ASSETS  

Administration of Environment and Housing and Real Estate

    5.3 % 

Air, Transportation, Water Services and Solid Waste Management

    6.1   

Educational Services

    12.6   

Electric Services, Gas and Combined Utilities

    7.7   

Executive, Legislative and General Government

    22.7   

General Medical and Surgical, Nursing and Personal Care

    9.9   

Health Services and Residential Care

    13.3   

Local Passenger Transportation

    6.4   

Urban and Community Development, Housing Programs and Social Services

    8.3   

All other sectors less than 5%

    7.7   
      

Total

    100.0 % 

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis.

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

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

 

MONEY MARKET FUNDS     32     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Municipal Money Market Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

Investments

    Level 1
(000S)		    Level 2
(000S)		     Level 3
(000S)		    Total
(000S)

Municipal Money Market Fund

    $ —      $ 8,976,880 (1)    $ —      $ 8,976,880
                            

 

(1)

Classifications as defined in the Schedule of Investments.

 

MONEY MARKET FUNDS     33     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

ABBREVIATIONS AND OTHER INFORMATION

MUNICIPAL MONEY MARKET FUND continued

JUNE 30, 2009 (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

AMT    Alternative Minimum Tax

COPS    Certificates of Participation

CP    Commercial Paper

EDA    Economic Development Authority

FHLB    Federal Home Loan Bank

FHLMC    Federal Home Loan Mortgage Corporation

FNMA    Federal National Mortgage Association

FSA    Financial Security Assurance

G.O.    General Obligation

Gtd.    Guaranteed

IDA    Industrial Development Authority

IDB    Industrial Development Board

IDR    Industrial Development Revenue

LOC    Letter of Credit

PCR    Pollution Control Revenue

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

TANS    Tax Anticipation Notes

TRANS    Tax and Revenue Anticipation Notes

TSB    Trustee Savings Bank

VRDB    Variable Rate Demand Bonds

 

MONEY MARKET FUNDS     34     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCIES - 67.1% (1)

      

Fannie Mae - 22.5%

      

FNMA Discount Notes,

      

0.22%, 7/1/09

    $ 20,778    $ 20,778

0.37%, 7/1/09

      10,177      10,177

0.09%, 7/22/09

      14,286      14,285

0.28%, 7/27/09

      5,000      4,999

0.11%, 8/3/09

      7,230      7,229

0.26%, 8/3/09

      67,632      67,616

0.28%, 8/3/09

      34,250      34,241

0.53%, 8/3/09

      20,000      19,990

0.24%, 9/1/09

      12,624      12,619

0.25%, 9/1/09

      30,500      30,487

0.50%, 9/1/09

      15,000      14,987

0.55%, 9/9/09

      10,000      9,989

0.25%, 10/1/09

      35,566      35,543

0.73%, 11/6/09

      8,000      7,979

0.42%, 11/16/09

      2,000      1,997

1.00%, 12/10/09

      20,700      20,607

0.55%, 12/14/09

      8,000      7,980

0.45%, 12/21/09

      15,000      14,968

FNMA FRN,

      

0.41%, 7/1/09

      8,900      8,903

1.05%, 7/21/09

      8,000      8,020

1.19%, 7/27/09

      5,000      5,010

0.91%, 7/28/09

      5,000      5,003

0.99%, 7/28/09

      12,000      11,997

0.97%, 8/5/09

      5,000      4,997

0.90%, 8/8/09

      5,000      5,012

FNMA Notes,

      

5.13%, 7/13/09

      15,045      15,069

5.38%, 8/15/09

      3,255      3,275

4.15%, 9/10/09

      2,000      2,013

6.63%, 9/15/09

      14,538      14,727

3.88%, 12/10/09

      13,358      13,563

7.25%, 1/15/10

      4,835      5,012

3.25%, 2/10/10

      1,400      1,424

3.88%, 2/15/10

      2,766      2,825

5.00%, 2/23/10

      1,500      1,544
         
        444,865
         

Federal Farm Credit Bank - 7.8%

      

FFCB Bonds,

      

4.13%, 7/17/09

      1,100      1,102

2.70%, 9/23/09

      2,625      2,639

5.00%, 10/23/09

      1,000      1,014

FFCB Discount Notes,

      

2.63%, 7/8/09

      11,000      10,994

0.55%, 9/18/09

      15,000      14,982

0.50%, 3/30/10

      13,700      13,648

0.45%, 4/1/10

      5,000      4,983

FFCB FRN,

      

0.67%, 7/1/09

      5,000      5,000

0.32%, 7/2/09

      5,000      5,000

0.52%, 7/3/09

      15,000      14,982

0.57%, 7/4/09

      2,000      2,004

0.62%, 7/15/09

      18,000      18,000

0.15%, 7/16/09

      5,000      5,000

 

MONEY MARKET FUNDS     1     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCIES - 67.1% (1) continued

      

Federal Farm Credit Bank - 7.8% continued

      

FFCB FRN, continued

      

0.56%, 7/20/09

    $ 17,400    $ 17,400

0.22%, 7/22/09

      8,000      8,000

0.31%, 7/22/09

      20,000      20,000

0.30%, 7/25/09

      10,000      10,000
         
        154,748
         

Federal Home Loan Bank - 21.8%

      

FHLB Bonds,

      

2.88%, 7/1/09

      1,000      1,000

3.88%, 7/24/09

      2,350      2,355

2.53%, 7/28/09

      1,650      1,653

2.56%, 8/4/09

      9,275      9,292

5.25%, 8/5/09

      1,050      1,055

3.88%, 8/14/09

      2,000      2,009

6.50%, 8/14/09

      1,615      1,627

3.75%, 8/18/09

      1,575      1,582

5.00%, 9/18/09

      7,945      8,025

2.25%, 10/2/09

      5,000      5,021

4.50%, 10/9/09

      5,875      5,941

3.50%, 11/3/09

      7,740      7,824

4.00%, 11/13/09

      3,500      3,543

6.50%, 11/13/09

      1,000      1,023

4.25%, 11/20/09

      1,270      1,289

0.45%, 11/24/09

      5,000      5,000

4.27%, 11/24/09

      2,000      2,027

0.85%, 12/29/09

      14,875      14,871

3.88%, 1/15/10

      1,500      1,528

0.65%, 6/15/10

      25,000      24,986

0.60%, 7/12/10

      5,000      4,994

FHLB Discount Notes,

      

0.11%, 7/1/09

      28,000      28,000

0.20%, 7/1/09

      5,000      5,000

0.25%, 7/8/09

      5,000      5,000

0.53%, 7/10/09

      10,000      9,999

0.14%, 7/15/09

      10,000      9,999

0.16%, 7/15/09

      10,950      10,949

0.22%, 7/15/09

      25,000      24,998

0.54%, 7/15/09

      10,000      9,998

0.16%, 7/17/09

      2,828      2,828

0.18%, 7/21/09

      15,000      14,999

0.17%, 7/22/09

      4,300      4,300

0.16%, 7/24/09

      2,432      2,432

0.57%, 7/24/09

      35,000      34,987

0.27%, 7/31/09

      3,111      3,110

0.37%, 8/5/09

      4,500      4,498

0.70%, 9/14/09

      9,015      9,002

0.71%, 9/22/09

      5,000      4,992

0.25%, 9/23/09

      3,700      3,698

0.71%, 9/23/09

      5,000      4,992

0.75%, 11/18/09

      5,000      4,985

0.54%, 11/19/09

      5,000      4,989

0.55%, 11/23/09

      5,000      4,989

0.67%, 11/24/09

      10,000      9,973

0.65%, 12/2/09

      2,735      2,727

 

MONEY MARKET FUNDS     2     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCIES - 67.1% (1) continued

      

Federal Home Loan Bank - 21.8% continued

      

FHLB Discount Notes, continued

      

0.80%, 12/4/09

    $ 5,000    $ 4,983

0.80%, 12/8/09

      7,000      6,975

0.85%, 1/15/10

      10,000      9,953

0.85%, 1/21/10

      6,400      6,369

1.00%, 3/4/10

      3,000      2,980

FHLB FRN,

      

0.33%, 7/1/09

      5,000      5,000

0.34%, 7/1/09

      5,000      5,000

0.57%, 7/1/09

      10,000      9,999

0.67%, 7/1/09

      5,000      4,999

1.17%, 7/2/09

      5,000      5,004

1.04%, 7/14/09

      5,000      4,999

0.26%, 7/19/09

      5,000      4,995

1.02%, 7/28/09

      5,000      5,000

0.23%, 7/31/09

      10,000      9,996

0.88%, 8/4/09

      6,900      6,904

0.65%, 9/10/09

      5,000      5,004

FHLB Note,

      

5.38%, 7/17/09

      5,965      5,978
         
        432,227
         

Freddie Mac - 15.0%

      

FHLMC Discount Notes,

      

0.21%, 7/6/09

      7,916      7,916

0.28%, 7/7/09

      5,000      5,000

0.20%, 7/24/09

      2,350      2,350

0.25%, 7/28/09

      4,030      4,029

0.30%, 7/30/09

      2,830      2,829

0.34%, 8/17/09

      6,500      6,497

0.22%, 9/2/09

      6,500      6,497

0.60%, 9/21/09

      20,000      19,973

0.62%, 9/22/09

      10,000      9,986

0.22%, 9/25/09

      4,208      4,206

0.23%, 9/30/09

      5,000      4,997

0.67%, 11/20/09

      10,000      9,974

0.73%, 11/23/09

      7,000      6,979

0.74%, 11/23/09

      5,000      4,985

0.32%, 12/7/09

      1,000      999

0.39%, 12/21/09

      5,400      5,390

0.80%, 12/28/09

      5,000      4,980

0.89%, 1/4/10

      7,000      6,968

0.81%, 1/6/10

      5,000      4,979

0.87%, 2/8/10

      8,000      7,957

FHLMC FRN,

      

1.04%, 7/14/09

      30,000      29,998

0.29%, 7/18/09

      9,500      9,501

0.24%, 7/28/09

      10,000      10,000

0.64%, 8/24/09

      10,000      9,998

0.63%, 9/3/09

      10,000      9,996

0.58%, 9/24/09

      15,000      14,996

FHLMC Notes,

      

4.25%, 7/15/09

      23,833      23,869

4.38%, 7/30/09

      1,000      1,003

4.13%, 9/1/09

      3,350      3,371

6.63%, 9/15/09

      18,107      18,343

4.75%, 11/3/09

      1,500      1,523

2.68%, 11/16/09

      11,250      11,345

4.13%, 11/18/09

      8,097      8,209

4.13%, 11/30/09

      17,315      17,576
         
        297,219
         

Total U.S. Government Agencies (Cost $1,329,059)

         1,329,059
         

 

MONEY MARKET FUNDS     3     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT OBLIGATIONS - 14.0%

      

U.S. Treasury Bills - 8.6%

      

0.07%, 7/2/09

    $ 25,000    $ 25,000

0.08%, 7/2/09

      45,000      45,000

0.09%, 7/2/09

      10,000      10,000

0.06%, 7/9/09

      35,000      34,999

0.08%, 7/9/09

      25,000      25,000

0.12%, 7/9/09

      10,000      10,000

0.21%, 9/15/09

      5,000      4,998

0.30%, 11/12/09

      5,000      4,994

0.50%, 4/8/10

      10,000      9,961
         
        169,952
         

U.S. Treasury Notes - 5.4%

      

3.63%, 6/15/10

      25,000      25,698

4.63%, 7/31/09

      10,000      10,037

4.88%, 8/15/09

      25,000      25,146

4.00%, 9/30/09

      5,000      5,047

3.38%, 10/15/09

      5,000      5,045

3.63%, 10/31/09

      30,000      30,326

6.50%, 2/15/10

      5,000      5,188
         
        106,487
         

Total U.S. Government Obligations (Cost $276,439)

         276,439
         

Investments, at Amortized Cost ($1,605,498)

         1,605,498
         

REPURCHASE AGREEMENTS - 20.5%

      

(Collateralized at a minimum of 102%)

      

Joint Repurchase Agreements - 1.4% (2)

      

Morgan Stanley & Co., Inc., dated 6/30/09, repurchase price $8,119

      

0.01%, 7/1/09

      8,118      8,118

Societe Generale - New York Branch, dated 6/30/09, repurchase price $8,119

      

0.02%, 7/1/09

      8,119      8,119

UBS Securities LLC, dated 6/30/09, repurchase price $12,178

      

0.01%, 7/1/09

      12,178      12,178
         
        28,415
         

(Collateralized at a minimum of 102%)

      

Repurchase Agreements - 19.1% (3)

      

Bank of America N.A., dated 6/30/09, repurchase price $150,000

      

0.07%, 7/1/09

      150,000      150,000

Citigroup Global Markets, Inc., dated 6/30/09, repurchase price $7,008

      

0.10%, 7/1/09

      7,008      7,008

Deutsche Bank Securities, Inc., dated 6/30/09, repurchase price $100,000

      

0.09%, 7/1/09

      100,000      100,000

 

MONEY MARKET FUNDS     4     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

REPURCHASE AGREEMENTS - 20.5% continued

      

(Collateralized at a minimum of 102%)

      

Repurchase Agreements - 19.1% (3) continued

      

Goldman Sachs & Co., dated 6/30/09, repurchase price $70,000

      

0.08%, 7/1/09

    $ 70,000    $ 70,000   

Goldman Sachs & Co., dated 6/11/09, repurchase price $50,008

      

0.21%, 7/8/09

      50,000      50,000   
           
        377,008   
           

Total Repurchase Agreements (Cost $405,423)

         405,423   
           

Total Investments - 101.6% (Cost $2,010,921) (4)

         2,010,921   
           

Liabilities less Other Assets - (1.6)%

         (31,266 ) 
           

NET ASSETS - 100.0%

       $ 1,979,655   
           

 

(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

    FAIR MARKET
VALUE
(000S)		    COUPON
RATES		   MATURITY
DATES

U.S. Treasury Bonds

    $ 20,520    3.63% - 7.13%   2/15/23 - 4/15/29

U.S. Treasury Notes

    $ 8,182    1.13% - 1.63%   12/15/11 - 1/15/15

 

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

 

NAME

    FAIR MARKET
VALUE
(000S)		    COUPON
RATES		   MATURITY
DATES

FHLMC

    $ 1,017    5.00% - 8.00%   10/1/19 - 5/1/38

FNMA

    $ 232,801    4.00% - 9.00%   9/1/19 - 2/1/39

GNMA

    $ 154,500    5.50%   6/20/38

 

(4) The cost for federal income tax purposes was $2,010,921.

 

MONEY MARKET FUNDS     5     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

Percentages shown are based on Net Assets.

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was

issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a

framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used

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

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis.

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the U.S. Government Money Market Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

Investments

    Level 1
(000S)		    Level 2
(000S)		     Level 3
(000S)		    Total
(000S)

U.S. Government Money Market Fund

    $ —      $ 2,010,921 (1)    $ —      $ 2,010,921
                            

 

(1)

Classifications as defined in the Schedule of Investments.

 

MONEY MARKET FUNDS     6     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

ABBREVIATIONS AND OTHER INFORMATION

U.S. GOVERNMENT MONEY MARKET FUND continued

JUNE 30, 2009 (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

FFCB    Federal Farm Credit Bank

FHLB    Federal Home Loan Bank

FHLMC    Federal Home Loan Mortgage Corporation

FNMA    Federal National Mortgage Association

FRN    Floating Rate Notes

GNMA    Government National Mortgage Association

 

MONEY MARKET FUNDS     7     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCIES - 80.4% (1)

      

Federal Farm Credit Bank - 10.9%

      

FFCB Bond,

      

2.70%, 9/23/09

    $ 5,000    $ 5,026

FFCB Discount Notes,

      

0.01%, 7/1/09

      100,000      100,000

0.08%, 7/30/09

      7,800      7,800

0.45%, 8/17/09

      25,000      24,985

0.81%, 1/5/10

      3,667      3,652

0.73%, 2/9/10

      10,000      9,955

0.50%, 3/30/10

      30,000      29,886

0.45%, 4/1/10

      10,000      9,966

FFCB FRN,

      

0.52%, 7/1/09

      5,000      5,007

0.67%, 7/1/09

      10,000      10,000

0.72%, 7/1/09

      25,000      25,000

0.32%, 7/2/09

      22,000      22,006

0.52%, 7/3/09

      15,000      14,982

0.57%, 7/4/09

      13,800      13,806

0.23%, 7/8/09

      3,000      3,000

0.51%, 7/10/09

      25,000      25,000

0.62%, 7/15/09

      50,000      50,000

0.15%, 7/16/09

      10,000      10,000

0.56%, 7/20/09

      50,000      50,000

0.31%, 7/22/09

      30,000      30,000

0.30%, 7/25/09

      20,000      20,000

0.22%, 7/28/09

      5,000      5,001

0.21%, 6/24/10

      10,000      10,000
         
        485,072
         

Federal Home Loan Bank - 67.0%

      

FHLB Bonds,

      

2.88%, 7/1/09

      2,250      2,250

3.04%, 7/17/09

      5,000      5,005

3.10%, 7/27/09

      5,000      5,009

2.56%, 8/4/09

      27,000      27,050

4.15%, 8/4/09

      10,315      10,350

5.13%, 8/5/09

      13,630      13,666

5.25%, 8/5/09

      15,000      15,067

2.65%, 8/7/09

      3,000      3,007

4.50%, 8/11/09

      3,000      3,014

2.00%, 8/18/09

      20,450      20,488

3.75%, 8/18/09

      41,480      41,657

4.38%, 9/11/09

      8,915      8,986

5.25%, 9/11/09

      39,015      39,377

5.00%, 9/18/09

      40,455      40,861

2.25%, 10/2/09

      13,205      13,257

3.26%, 10/2/09

      4,000      4,028

5.00%, 10/2/09

      27,000      27,279

4.50%, 10/9/09

      26,000      26,292

4.00%, 10/29/09

      10,000      10,109

3.50%, 11/3/09

      32,500      32,834

0.33%, 11/20/09

      10,000      10,000

4.25%, 11/20/09

      30,695      31,122

0.41%, 11/23/09

      9,850      9,849

0.45%, 11/24/09

      20,000      20,000

1.15%, 12/11/09

      19,430      19,442

5.00%, 12/11/09

      53,050      54,052

3.00%, 12/15/09

      13,300      13,441

3.38%, 12/18/09

      8,000      8,109

0.85%, 12/29/09

      30,000      29,991

 

MONEY MARKET FUNDS     1     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCIES - 80.4% (1) continued

      

Federal Home Loan Bank - 67.0% continued

      

FHLB Bonds, continued

      

3.50%, 1/6/10

    $ 12,090    $ 12,254

3.88%, 1/15/10

      2,975      3,031

1.05%, 2/17/10

      11,445      11,481

5.00%, 3/12/10

      10,000      10,316

0.65%, 6/15/10

      70,000      69,961

0.60%, 7/12/10

      10,000      9,989

FHLB Discount Notes,

      

0.01%, 7/1/09

      157,451      157,451

0.02%, 7/1/09

      10,300      10,300

0.09%, 7/1/09

      25,000      25,000

0.10%, 7/1/09

      25,000      25,000

0.11%, 7/1/09

      330,489      330,489

0.12%, 7/1/09

      25,000      25,000

0.14%, 7/1/09

      9,280      9,280

0.15%, 7/1/09

      3,200      3,200

0.28%, 7/1/09

      3,425      3,425

0.02%, 7/6/09

      18,900      18,900

0.14%, 7/6/09

      40,912      40,912

0.15%, 7/6/09

      58,617      58,616

0.18%, 7/6/09

      60,000      59,998

0.14%, 7/7/09

      22,501      22,500

0.25%, 7/8/09

      10,000      10,000

0.16%, 7/10/09

      25,000      24,999

0.27%, 7/10/09

      25,000      24,998

0.53%, 7/10/09

      20,000      19,997

0.06%, 7/13/09

      20,256      20,256

0.08%, 7/14/09

      2,200      2,200

0.14%, 7/14/09

      9,880      9,879

0.15%, 7/14/09

      20,945      20,944

0.06%, 7/15/09

      75,400      75,398

0.14%, 7/15/09

      20,000      19,999

0.16%, 7/15/09

      20,000      19,999

0.17%, 7/15/09

      22,000      21,998

0.54%, 7/15/09

      20,000      19,996

0.55%, 7/15/09

      19,351      19,347

0.08%, 7/17/09

      2,600      2,600

0.17%, 7/17/09

      8,150      8,149

0.07%, 7/21/09

      9,700      9,699

0.18%, 7/21/09

      50,000      49,995

0.20%, 7/21/09

      3,600      3,600

0.18%, 7/22/09

      20,000      19,998

0.57%, 7/24/09

      75,000      74,973

0.20%, 7/27/09

      6,771      6,770

0.06%, 7/28/09

      25,000      24,999

0.18%, 7/31/09

      60,000      59,991

0.19%, 7/31/09

      21,000      20,997

0.20%, 7/31/09

      16,719      16,716

0.14%, 8/7/09

      1,000      1,000

0.09%, 8/12/09

      25,792      25,789

0.10%, 8/12/09

      3,000      3,000

0.22%, 8/12/09

      8,971      8,969

0.14%, 8/18/09

      1,500      1,500

0.21%, 8/19/09

      20,000      19,994

0.20%, 8/21/09

      25,000      24,993

0.55%, 8/24/09

      11,950      11,940

0.22%, 9/1/09

      6,209      6,207

0.60%, 9/2/09

      25,000      24,974

0.60%, 9/9/09

      23,143      23,116

0.59%, 9/15/09

      10,000      9,987

 

MONEY MARKET FUNDS     2     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT AGENCIES - 80.4% (1) continued

      

Federal Home Loan Bank - 67.0% continued

      

FHLB Discount Notes, continued

      

0.71%, 9/22/09

    $ 10,000    $ 9,984

0.71%, 9/23/09

      10,000      9,984

0.75%, 11/18/09

      25,000      24,927

0.54%, 11/19/09

      10,000      9,979

0.55%, 11/23/09

      11,000      10,976

0.73%, 12/1/09

      1,800      1,794

0.78%, 12/1/09

      5,000      4,983

0.30%, 12/2/09

      10,170      10,157

0.80%, 12/4/09

      5,000      4,983

0.80%, 12/8/09

      15,000      14,947

0.29%, 12/9/09

      55,591      55,519

0.80%, 12/9/09

      5,000      4,982

0.79%, 12/10/09

      21,750      21,673

0.93%, 12/11/09

      50,000      49,789

0.93%, 12/14/09

      19,832      19,747

0.30%, 12/15/09

      10,000      9,986

0.85%, 12/16/09

      3,165      3,152

0.75%, 12/23/09

      10,000      9,964

0.55%, 12/29/09

      10,000      9,972

0.82%, 1/11/10

      16,313      16,241

0.34%, 1/15/10

      9,000      8,983

0.85%, 1/15/10

      15,000      14,930

0.80%, 1/19/10

      5,000      4,978

0.96%, 2/1/10

      10,000      9,943

0.90%, 2/8/10

      5,000      4,972

1.00%, 2/10/10

      5,000      4,969

1.00%, 2/26/10

      8,124      8,070

1.00%, 3/4/10

      5,000      4,966

0.51%, 5/27/10

      22,030      21,927

FHLB FRN,

      

0.27%, 7/1/09

      25,000      24,989

0.33%, 7/1/09

      15,000      15,000

0.34%, 7/1/09

      10,000      10,000

0.37%, 7/1/09

      20,000      20,000

0.44%, 7/1/09

      25,000      25,000

0.67%, 7/1/09

      35,000      34,998

1.17%, 7/2/09

      12,000      12,009

0.27%, 7/13/09

      18,000      18,000

1.04%, 7/14/09

      15,000      14,997

0.26%, 7/19/09

      15,000      14,985

0.23%, 7/23/09

      30,000      29,983

0.92%, 7/23/09

      5,400      5,409

1.02%, 7/28/09

      10,000      10,000

0.23%, 7/31/09

      20,000      19,992

0.88%, 8/4/09

      31,500      31,519

0.88%, 8/5/09

      15,000      15,009

0.79%, 8/19/09

      18,500      18,537

0.31%, 8/28/09

      20,000      19,996

0.65%, 9/10/09

      10,000      10,008

0.40%, 9/17/09

      10,000      10,006
         
        2,970,575
         

Tennessee Valley Authority - 2.5%

      

Tennessee Valley Authority Discount Notes,

      

0.10%, 7/2/09

      50,000      50,000

0.09%, 7/9/09

      39,000      38,999

0.07%, 7/30/09

      20,000      19,999
         
        108,998
         

Total U.S. Government Agencies (Cost $3,564,645)

         3,564,645
         

 

MONEY MARKET FUNDS     3     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

U.S. GOVERNMENT OBLIGATIONS - 19.4%

      

U.S. Treasury Bills - 12.3%

      

0.07%, 7/2/09

    $ 50,000    $ 50,000

0.08%, 7/2/09

      110,000      110,000

0.09%, 7/2/09

      45,000      45,000

0.14%, 7/2/09

      25,000      25,000

0.03%, 7/9/09

      25,000      25,000

0.04%, 7/9/09

      25,000      25,000

0.06%, 7/9/09

      20,000      19,999

0.08%, 7/9/09

      50,000      50,000

0.12%, 7/9/09

      100,000      99,997

0.16%, 7/23/09

      25,000      24,997

0.18%, 8/20/09

      20,000      19,995

0.30%, 11/12/09

      50,000      49,944
         
        544,932
         

U.S. Treasury Notes - 7.1%

      

4.88%, 8/15/09

      65,000      65,379

6.00%, 8/15/09

      45,000      45,325

4.00%, 9/30/09

      20,000      20,187

3.38%, 10/15/09

      10,000      10,090

6.50%, 2/15/10

      10,000      10,376

3.63%, 6/15/10

      75,000      77,094

3.63%, 10/31/09

      85,000      85,929
         
        314,380
         

Total U.S. Government Obligations (Cost $859,312)

         859,312
         

Investments, at Amortized Cost ($4,423,957)

         4,423,957
         

Total Investments - 99.8% (Cost $4,423,957) (2)

         4,423,957
         

Other Assets less Liabilities - 0.2%

         8,983
         

NET ASSETS - 100.0%

       $ 4,432,940
         

 

(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 $4,423,957.

 

Percentages shown are based on Net Assets.

 

MONEY MARKET FUNDS     4     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

JUNE 30, 2009 (UNAUDITED)

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis.

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the U.S. Government Select Money Market Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

Investments

    Level 1
(000S)		    Level 2
(000S)		     Level 3
(000S)		    Total
(000S)

U.S. Government Select Money Market Fund

    $ —      $ 4,423,957 (1)    $ —      $ 4,423,957
                            

 

(1)

Classifications as defined in the Schedule of Investments.

 

MONEY MARKET FUNDS     5     NORTHERN FUNDS QUARTERLY REPORT

MONEY MARKET FUNDS

ABBREVIATIONS AND OTHER INFORMATION

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

JUNE 30, 2009 (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     6     NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

BOND INDEX FUND

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

ASSET-BACKED SECURITIES - 3.8%

      

Automobile - 0.2%

      

Daimler Chrysler Auto Trust, Series 2008-B, Class A3A,

      

4.71%, 9/10/12

    $ 400    $ 410

Ford Credit Auto Owner Trust, Series 2008-A, Class A4,

      

4.37%, 10/15/12

      350      357

Nissan Auto Receivables Owner Trust, Series 2008-A, Class A4,

      

4.28%, 6/16/14

      350      357

Nissan Auto Receivables Owner Trust, Series 2008-C, Class A3A,

      

5.93%, 7/16/12

      500      524

USAA Auto Owner Trust, Series 2008-3, Class A3,

      

4.28%, 10/15/12

      250      258

USAA Auto Owner Trust, Series 2009-1, Class A3,

      

3.02%, 6/17/13

      350      354

USAA Auto Owner Trust, Series 2009-1, Class A4,

      

4.77%, 9/15/14

      250      256
         
        2,516
         

Commercial Mortgage Services - 3.2%

      

Banc of America Commercial Mortgage, Inc., Series 2002-2, Class A3,

      

5.12%, 7/11/43

      190      188

Banc of America Commercial Mortgage, Inc., Series 2003-1, Class A2,

      

4.65%, 9/11/36

      1,000      925

Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A3,

      

4.13%, 7/10/42

      335      334

Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A6,

      

4.88%, 7/10/42

      350      305

Banc of America Commercial Mortgage, Inc., Series 2004-5, Class A3,

      

4.56%, 11/10/41

      750      669

Banc of America Commercial Mortgage, Inc., Series 2006-4, Class A4,

      

5.63%, 7/10/46

      805      635

Banc of America Commercial Mortgage, Inc., Series 2007-1, Class A4,

      

5.45%, 1/15/49

      330      246

Banc of America Commercial Mortgage, Inc., Series 2008-1, Class A4,

      

6.17%, 2/10/51

      500      388

Bear Stearns Commercial Mortgage Securities, Series 2003-PWR2, Class A4,

      

5.19%, 5/11/39

      250      231

Bear Stearns Commercial Mortgage Securities, Series 2003-T10, Class A2,

      

4.74%, 3/13/40

      375      359

Bear Stearns Commercial Mortgage Securities, Series 2003-T12, Class A4,

      

4.68%, 8/13/39

      500      461

Bear Stearns Commercial Mortgage Securities, Series 2004-PWR4, Class A3,

      

5.47%, 6/11/41

      500      454

Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A4,

      

5.69%, 6/11/50

      500      409

Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class A4,

      

5.74%, 9/11/42

      500      413

Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class AM,

      

5.84%, 9/11/42

      250      130

Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3,

      

5.73%, 3/15/49

      240      203

Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4,

      

5.43%, 10/15/49

      500      400

Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4,

      

5.23%, 7/15/44

      1,000      887

Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5, Class A4,

      

5.89%, 11/15/44

      500      374

Commercial Mortgage Pass Through Certificates, Series 2003-LB1A, Class A2,

      

4.08%, 6/10/38

      625      578

Commercial Mortgage Pass Through Certificates, Series 2004-LB2A, Class A4,

      

4.72%, 3/10/39

      500      446

Commercial Mortgage Pass Through Certificates, Series 2005-C6, Class A5A,

      

5.12%, 6/10/44

      1,000      815

Credit Suisse Mortgage Capital Certificates, Series 2006-C1, Class A4,

      

5.61%, 2/15/39

      500      404

 

FIXED INCOME FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

ASSET-BACKED SECURITIES - 3.8% continued

      

Commercial Mortgage Services - 3.2% continued

      

Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A2,

      

5.81%, 9/15/39

    $ 1,000    $ 924

CS First Boston Mortgage Securities Corp., Series 2000-C1, Class A2,

      

7.55%, 4/15/62

      110      112

CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A3,

      

6.39%, 8/15/36

      615      618

CS First Boston Mortgage Securities Corp., Series 2001-CP4 Class A4,

      

6.18%, 12/15/35

      200      202

CS First Boston Mortgage Securities Corp., Series 2002-CKS4, Class A2,

      

5.18%, 11/15/36

      440      432

CS First Boston Mortgage Securities Corp., Series 2003-C3, Class A5,

      

3.94%, 5/15/38

      300      271

CS First Boston Mortgage Securities Corp., Series 2003-C5, Class A4,

      

4.90%, 12/15/36

      800      727

CS First Boston Mortgage Securities Corp., Series 2005-C1, Class A4,

      

5.01%, 2/15/38

      1,000      844

CS First Boston Mortgage Securities Corp., Series 2005-C5, Class A4,

      

5.10%, 8/15/38

      600      512

CS First Boston Mortgage Securities Corp., Series 2005-C6, Class AJ,

      

5.23%, 12/15/40

      390      196

CW Capital Cobalt Ltd., Series 2007-C2, Class A3,

      

5.48%, 4/15/47

      500      329

DLJ Commercial Mortgage Corp., Series 2000-CF1, Class A2,

      

7.76%, 6/10/33

      300      298

First Union National Bank Commercial Mortgage, Series 2002-C1, Class A2,

      

6.14%, 2/12/34

      500      501

GE Capital Commercial Mortgage Corp., Series 2001-2, Class A4,

      

6.29%, 8/11/33

      400      398

GE Capital Commercial Mortgage Corp., Series 2001-3, Class A2,

      

6.07%, 6/10/38

      500      503

GE Capital Commercial Mortgage Corp., Series 2002-1A, Class A3,

      

6.27%, 12/10/35

      500      510

GMAC Commercial Mortgage Securities, Inc., Series 2000-C3, Class A2,

      

6.96%, 9/15/35

      390      403

GMAC Commercial Mortgage Securities, Inc., Series 2003-C3, Class A3,

      

4.65%, 4/10/40

      605      589

Greenwich Capital Commercial Funding Corp., Series 2003-C1, Class A4,

      

4.11%, 7/5/35

      470      432

Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A7,

      

5.32%, 6/10/36

      500      462

Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A5,

      

5.22%, 4/10/37

      490      419

Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A2,

      

5.38%, 3/10/39

      740      695

GS Mortgage Securities Corp. II, Series 2003-C1, Class A3,

      

4.61%, 1/10/40

      200      191

GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4,

      

4.76%, 7/10/39

      1,000      771

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-C1, Class A1,

      

4.28%, 1/12/37

      33      32

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-C1, Class A2,

      

4.99%, 1/12/37

      500      467

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-LN1, Class A2,

      

4.92%, 10/15/37

      1,400      1,270

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A4,

      

5.18%, 12/15/44

      500      423

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB17, Class AJ,

      

5.49%, 12/12/43

      750      274

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A3,

      

5.34%, 5/15/47

      500      383

 

NORTHERN FUNDS QUARTERLY REPORT    2    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

ASSET-BACKED SECURITIES - 3.8% continued

      

Commercial Mortgage Services - 3.2% continued

      

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB20, Class A4,

      

5.79%, 2/12/51

    $ 500    $ 373

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3,

      

5.42%, 1/15/49

      500      368

LB-UBS Commercial Mortgage Trust, 2005-C2, Class A5,

      

5.15%, 4/15/30

      1,000      877

LB-UBS Commercial Mortgage Trust, Series 2001-C2, Class A2,

      

6.65%, 11/15/27

      500      513

LB-UBS Commercial Mortgage Trust, Series 2001-C3, Class A2,

      

6.37%, 12/15/28

      395      404

LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class A4,

      

4.57%, 1/15/31

      540      464

LB-UBS Commercial Mortgage Trust, Series 2004-C2, Class A4,

      

4.37%, 3/15/36

      520      440

LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A2,

      

5.53%, 3/15/32

      500      481

LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4,

      

5.37%, 9/15/39

      800      649

LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A3,

      

5.35%, 11/15/38

      500      397

Merrill Lynch Mortgage Trust, Series 2003-KEY1, Class A4,

      

5.24%, 11/12/35

      1,500      1,337

Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A2,

      

4.07%, 10/12/41

      68      67

Merrill Lynch Mortgage Trust, Series 2004-KEY2, Class A2,

      

4.17%, 8/12/39

      248      245

Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class A2,

      

4.56%, 6/12/43

      277      268

Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-8, Class A3,

      

6.16%, 8/12/49

      500      345

Morgan Stanley Capital I, Series 2003-IQ6, Class A4,

      

4.97%, 12/15/41

      1,200      1,123

Morgan Stanley Capital I, Series 2003-T11, Class A4,

      

5.15%, 6/13/41

      1,000      913

Morgan Stanley Capital I, Series 2004-HQ4, Class A7,

      

4.97%, 4/14/40

      1,400      1,181

Morgan Stanley Capital I, Series 2004-IQ8, Class A3,

      

4.50%, 6/15/40

      220      219

Morgan Stanley Capital I, Series 2005-HQ7, Class A4,

      

5.21%, 11/14/42

      520      458

Morgan Stanley Capital I, Series 2006-HQ8, Class A2,

      

5.37%, 3/12/44

      300      285

Morgan Stanley Capital I, Series 2006-HQ9, Class A4,

      

5.73%, 7/12/44

      959      787

Morgan Stanley Capital I, Series 2006-IQ11, Class A4,

      

5.77%, 10/15/42

      500      416

Morgan Stanley Capital I, Series 2006-T23, Class A4,

      

5.98%, 8/12/41

      1,000      846

Morgan Stanley Capital I, Series 2007-IQ16, Class A4,

      

5.81%, 12/12/49

      300      229

Morgan Stanley Capital I, Series 2007-T27, Class A4,

      

5.80%, 6/11/42

      585      491

Morgan Stanley Capital I, Series 2008-T29, Class A4,

      

6.28%, 1/11/43

      750      648

Morgan Stanley Dean Witter Capital I, Series 2001-TOP5, Class A4,

      

6.39%, 10/15/35

      500      513

Morgan Stanley Dean Witter Capital I, Series 2002-IQ3, Class A4,

      

5.08%, 9/15/37

      1,000      959

Morgan Stanley Dean Witter Capital I, Series 2003-TOP9, Class A2,

      

4.74%, 11/13/36

      205      193

Wachovia Bank Commercial Mortgage Trust, Series 2002-C2, Class A4,

      

4.98%, 11/15/34

      185      180

 

FIXED INCOME FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

ASSET-BACKED SECURITIES - 3.8% continued

      

Commercial Mortgage Services - 3.2% continued

      

Wachovia Bank Commercial Mortgage Trust, Series 2003-C6, Class A4,

      

5.13%, 8/15/35

    $ 500    $ 454

Wachovia Bank Commercial Mortgage Trust, Series 2003-C8, Class A4,

      

4.96%, 11/15/35

      700      623

Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class A4,

      

5.03%, 1/15/41

      500      420

Wachovia Bank Commercial Mortgage Trust, Series 2004-C15, Class A4,

      

4.80%, 10/15/41

      1,000      865

Wachovia Bank Commercial Mortgage Trust, Series 2005-C17, Class A4,

      

5.08%, 3/15/42

      500      430

Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A4,

      

5.26%, 12/15/44

      700      599

Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class AM,

      

5.47%, 1/15/45

      500      286

Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4,

      

5.57%, 10/15/48

      500      385

Wachovia Bank Commercial Mortgage Trust, Series 2007-C34, Class A3,

      

5.68%, 5/15/46

      500      406
         
        45,579
         

Credit Card - 0.3%

      

BA Credit Card Trust, Series 2007-A1, Class A1,

      

5.17%, 6/15/19

      185      184

Capital One Multi-Asset Execution Trust, Series 2006-A10, Class A10,

      

5.15%, 6/16/14

      300      314

Capital One Multi-Asset Execution Trust, Series 2006-A2, Class A,

      

4.85%, 11/15/13

      275      285

Capital One Multi-Asset Execution Trust, Series 2009-A2, Class A2,

      

3.20%, 4/15/14

      500      501

Chase Issuance Trust, Series 2007-A15, Class A,

      

4.96%, 9/17/12

      270      280

Chase Issuance Trust, Series 2007-A17, Class A,

      

5.12%, 10/15/14

      325      339

Chase Issuance Trust, Series 2008-A9, Class A9,

      

4.26%, 5/15/13

      200      206

Citibank Credit Card Issuance Trust, Series 2003-A10, Class A10,

      

4.75%, 12/10/15

      130      132

Citibank Credit Card Issuance Trust, Series 2004-A8, Class A8,

      

4.90%, 12/12/16

      350      352

Citibank Credit Card Issuance Trust, Series 2005-A7, Class A7,

      

4.75%, 10/22/12

      200      207

Citibank Credit Card Issuance Trust, Series 2005-A9, Class A9,

      

5.10%, 11/20/17

      170      171

Citibank Credit Card Issuance Trust, Series 2006-A4, Class A4,

      

5.45%, 5/10/13

      100      105

Citibank Credit Card Issuance Trust, Series 2009-A4, Class A4,

      

4.90%, 6/23/16

      500      506

Discover Card Master Trust, Series 2007-A1, Class A1,

      

5.65%, 3/16/20

      100      100

MBNA Credit Card Master Note Trust, Series 2005-A6, Class A6,

      

4.50%, 1/15/13

      525      540
         
        4,222
         

Home Equity - 0.0%

      

Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2003-6, Class 1A7,

      

4.28%, 11/25/34

      211      172
         

Other - 0.1%

      

Countrywide Asset-Backed Certificates, Series 2005-11, Class AF3,

      

4.78%, 2/25/36

      3      2

Detroit Edison Securitization Funding LLC, Series 2001-1, Class A5,

      

6.42%, 3/1/15

      250      272

Oncor Electric Delivery Transition Bond Co., Series 2003-1, Class A3,

      

4.95%, 2/15/15

      100      104

PG&E Energy Recovery Funding LLC, Series 2005-2, Class A2,

      

5.03%, 3/25/14

      232      241
         
        619
         

 

NORTHERN FUNDS QUARTERLY REPORT    4    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

ASSET-BACKED SECURITIES - 3.8% continued

      

Regional - 0.0%

      

New Jersey Economic Development Authority,

      

7.43%, 2/15/29

    $ 100    $ 109
         

Utilities - 0.0%

      

CenterPoint Energy Transition Bond Co. LLC, Series 2005-A, Class A2,

      

4.97%, 8/1/14

      98      102
         

Total Asset-Backed Securities

      
         

(Cost $56,493)

         53,319

CORPORATE BONDS - 16.0%

      

Aerospace/Defense - 0.2%

      

Boeing (The) Co.,

      

5.13%, 2/15/13

      250      266

6.13%, 2/15/33

      135      138

General Dynamics Corp.,

      

4.25%, 5/15/13

      235      240

5.38%, 8/15/15

      150      163

Lockheed Martin Corp.,

      

7.65%, 5/1/16

      100      117

8.50%, 12/1/29

      75      97

6.15%, 9/1/36

      275      294

Northrop Grumman Corp.,

      

7.13%, 2/15/11

      100      107

7.75%, 2/15/31

      275      344

Raytheon Co.,

      

5.38%, 4/1/13

      250      266

United Technologies Corp.,

      

6.35%, 3/1/11

      50      54

6.10%, 5/15/12

      300      323

4.88%, 5/1/15

      275      292

5.38%, 12/15/17

      390      413

6.05%, 6/1/36

      100      106

6.13%, 7/15/38

      175      190
         
        3,410
         

Agriculture - 0.3%

      

Altria Group, Inc.,

      

9.70%, 11/10/18

      950      1,089

9.25%, 8/6/19

      250      281

9.95%, 11/10/38

      150      173

10.20%, 2/6/39

      100      118

Archer-Daniels-Midland Co.,

      

5.45%, 3/15/18

      325      342

5.38%, 9/15/35

      175      166

6.45%, 1/15/38

      50      54

Bunge Ltd. Finance Corp.,

      

5.35%, 4/15/14

      100      97

8.50%, 6/15/19

      60      63

Philip Morris International, Inc.,

      

4.88%, 5/16/13

      90      94

5.65%, 5/16/18

      625      655

6.38%, 5/16/38

      280      298

Reynolds American, Inc.,

      

7.63%, 6/1/16

      150      151
         
        3,581
         

Apparel - 0.0%

      

VF Corp.,

      

6.45%, 11/1/37

      30      28
         

Auto Manufacturers - 0.1%

      

DaimlerChrysler N.A. Holding Corp.,

      

7.75%, 1/18/11

      75      78

6.50%, 11/15/13

      850      864

8.50%, 1/18/31

      175      184
         
        1,126
         

Auto Parts & Equipment - 0.0%

      

Johnson Controls, Inc.,

      

5.25%, 1/15/11

      75      76
         

Banks - 3.9%

      

American Express Bank FSB,

      

5.50%, 4/16/13

      350      343

Bank of America Corp.,

      

6.25%, 4/15/12

      350      360

5.38%, 9/11/12

      150      151

4.88%, 9/15/12

      250      247

4.88%, 1/15/13

      300      296

4.90%, 5/1/13

      350      341

5.13%, 11/15/14

      400      376

4.75%, 8/1/15

      325      294

5.75%, 8/15/16

      100      87

5.63%, 10/14/16

      200      181

6.00%, 9/1/17

      250      227

5.75%, 12/1/17

      865      770

5.65%, 5/1/18

      450      398

7.63%, 6/1/19

      240      241

6.50%, 9/15/37

      25      21

 

FIXED INCOME FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Banks - 3.9% continued

      

Bank of America N.A.,

      

1.70%, 12/23/10

    $ 2,000    $ 2,023

5.30%, 3/15/17

      825      700

Bank of New York Mellon (The) Corp.,

      

5.13%, 11/1/11

      50      53

6.38%, 4/1/12

      100      104

4.95%, 11/1/12

      450      476

4.50%, 4/1/13

      120      122

4.30%, 5/15/14

      200      203

5.50%, 12/1/17

      100      94

Bank One Corp.,

      

7.75%, 7/15/25

      54      54

BB&T Capital Trust II,

      

6.75%, 6/7/36

      75      60

BB&T Corp.,

      

4.75%, 10/1/12

      100      98

5.20%, 12/23/15

      600      555

Capital One Financial Corp.,

      

7.38%, 5/23/14

      375      387

5.50%, 6/1/15

      250      231

Citigroup, Inc.,

      

6.50%, 1/18/11

      600      609

2.88%, 12/9/11

      2,000      2,057

6.00%, 2/21/12

      550      544

5.25%, 2/27/12

      600      586

5.50%, 4/11/13

      850      797

6.50%, 8/19/13

      100      97

5.13%, 5/5/14

      200      182

5.00%, 9/15/14

      1,300      1,090

5.30%, 1/7/16

      800      689

5.50%, 2/15/17

      225      183

6.00%, 8/15/17

      100      87

6.13%, 11/21/17

      625      548

6.13%, 5/15/18

      350      306

8.50%, 5/22/19

      300      305

6.63%, 6/15/32

      100      82

6.00%, 10/31/33

      100      75

6.88%, 3/5/38

      150      132

Fifth Third Bancorp,

      

6.25%, 5/1/13

      100      98

5.45%, 1/15/17

      75      59

8.25%, 3/1/38

      125      96

FleetBoston Financial Corp.,

      

6.88%, 1/15/28

      100      85

Goldman Sachs Group (The), Inc.,

      

6.88%, 1/15/11

      400      423

6.60%, 1/15/12

      100      106

5.70%, 9/1/12

      400      419

5.45%, 11/1/12

      500      517

4.75%, 7/15/13

      350      350

5.25%, 10/15/13

      150      153

6.00%, 5/1/14

      650      678

5.50%, 11/15/14

      150      150

5.13%, 1/15/15

      500      492

5.35%, 1/15/16

      1,000      953

5.75%, 10/1/16

      250      245

5.63%, 1/15/17

      300      285

6.25%, 9/1/17

      300      297

5.95%, 1/18/18

      635      616

6.15%, 4/1/18

      815      793

5.95%, 1/15/27

      150      127

6.75%, 10/1/37

      865      769

HSBC Bank USA N.A.,

      

4.63%, 4/1/14

      425      417

HSBC USA, Inc.,

      

3.13%, 12/16/11

      3,000      3,106

JPMorgan Chase & Co.,

      

6.75%, 2/1/11

      450      470

6.63%, 3/15/12

      275      290

2.13%, 6/22/12

      3,000      3,011

5.75%, 1/2/13

      325      335

4.75%, 5/1/13

      275      279

5.13%, 9/15/14

      1,100      1,095

5.25%, 5/1/15

      350      337

5.15%, 10/1/15

      1,050      1,035

6.13%, 6/27/17

      100      99

6.00%, 1/15/18

      1,110      1,103

6.40%, 5/15/38

      354      355

JPMorgan Chase Bank N.A.,

      

5.88%, 6/13/16

      200      193

6.00%, 10/1/17

      150      146

KeyBank N.A.,

      

5.80%, 7/1/14

      250      232

5.45%, 3/3/16

      100      86

M&I Marshall & Ilsley Bank,

      

4.85%, 6/16/15

      130      94

M&T Bank Corp.,

      

5.38%, 5/24/12

      100      99

 

NORTHERN FUNDS QUARTERLY REPORT    6    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Banks - 3.9% continued

      

Manufacturers & Traders Trust Co.,

      

6.63%, 12/4/17

    $ 250    $ 238

Mellon Funding Corp.,

      

5.00%, 12/1/14

      100      102

Morgan Stanley,

      

6.75%, 4/15/11

      200      210

5.63%, 1/9/12

      250      256

2.25%, 3/13/12

      1,000      1,009

6.60%, 4/1/12

      225      238

5.30%, 3/1/13

      250      253

4.75%, 4/1/14

      1,300      1,228

6.00%, 4/28/15

      1,025      1,022

5.38%, 10/15/15

      200      196

5.45%, 1/9/17

      325      303

5.55%, 4/27/17

      100      93

6.25%, 8/28/17

      350      339

5.95%, 12/28/17

      175      168

6.63%, 4/1/18

      850      847

7.30%, 5/13/19

      545      565

6.25%, 8/9/26

      100      93

National City Corp.,

      

4.90%, 1/15/15

      200      190

PNC Bank N.A.,

      

4.88%, 9/21/17

      100      87

PNC Funding Corp.,

      

6.70%, 6/10/19

      600      619

Regions Financial Corp.,

      

7.38%, 12/10/37

      75      53

State Street Corp.,

      

4.30%, 5/30/14

      345      341

SunTrust Bank,

      

6.38%, 4/1/11

      175      179

7.25%, 3/15/18

      125      123

Union Planters Corp.,

      

7.75%, 3/1/11

      350      340

US Bank N.A.,

      

6.38%, 8/1/11

      100      107

6.30%, 2/4/14

      300      326

4.95%, 10/30/14

      250      258

4.80%, 4/15/15

      100      98

USB Capital IX,

      

6.19%, 10/29/49

      100      68

Wachovia Bank N.A.,

      

5.85%, 2/1/37

      250      221

6.60%, 1/15/38

      300      292

Wachovia Capital Trust III,

      

5.80%, 3/29/49

      150      90

Wachovia Corp.,

      

5.30%, 10/15/11

      365      380

5.50%, 5/1/13

      525      542

4.88%, 2/15/14

      250      244

5.25%, 8/1/14

      150      147

5.63%, 10/15/16

      550      525

5.75%, 6/15/17

      350      345

5.75%, 2/1/18

      600      589

Wells Fargo & Co.,

      

5.13%, 9/1/12

      150      154

4.38%, 1/31/13

      1,030      1,039

4.95%, 10/16/13

      700      697

4.63%, 4/15/14

      415      404

5.00%, 11/15/14

      100      100

5.13%, 9/15/16

      475      451

5.63%, 12/11/17

      445      438

5.38%, 2/7/35

      125      110

Wells Fargo Bank N.A.,

      

6.45%, 2/1/11

      250      261

4.75%, 2/9/15

      250      237

Wells Fargo Capital X,

      

5.95%, 12/15/36

      100      74
         
        55,644
         

Beverages - 0.3%

      

Anheuser-Busch Cos., Inc.,

      

4.95%, 1/15/14

      175      175

5.50%, 1/15/18

      375      362

5.95%, 1/15/33

      100      82

6.45%, 9/1/37

      50      47

Bottling Group LLC,

      

5.50%, 4/1/16

      675      717

Coca-Cola Co.,

      

5.35%, 11/15/17

      250      267

4.88%, 3/15/19

      400      411

Coca-Cola Enterprises, Inc.,

      

7.38%, 3/3/14

      125      143

7.13%, 8/1/17

      250      280

8.50%, 2/1/22

      300      390

6.95%, 11/15/26

      200      218

6.75%, 9/15/28

      50      52

 

FIXED INCOME FUNDS    7    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Beverages - 0.3% continued

      

Dr Pepper Snapple Group, Inc.,

      

6.82%, 5/1/18

    $ 305    $ 323

PepsiAmericas, Inc.,

      

4.88%, 1/15/15

      50      47

PepsiCo., Inc.,

      

5.15%, 5/15/12

      75      81

4.65%, 2/15/13

      140      147

5.00%, 6/1/18

      650      668
         
        4,410
         

Biotechnology - 0.1%

      

Amgen, Inc.,

      

4.85%, 11/18/14

      175      185

5.85%, 6/1/17

      375      398

6.38%, 6/1/37

      100      107

6.40%, 2/1/39

      100      106

Genentech, Inc.,

      

4.75%, 7/15/15

      150      155
         
        951
         

Building Materials - 0.0%

      

CRH America, Inc.,

      

6.00%, 9/30/16

      100      89

Martin Marietta Materials, Inc.,

      

6.60%, 4/15/18

      100      95
         
        184
         

Chemicals - 0.3%

      

Dow Chemical (The) Co.,

      

6.13%, 2/1/11

      175      179

6.00%, 10/1/12

      50      51

7.60%, 5/15/14

      800      824

5.70%, 5/15/18

      100      88

7.38%, 11/1/29

      100      91

9.40%, 5/15/39

      50      51

EI Du Pont de Nemours & Co.,

      

5.00%, 1/15/13

      50      53

5.25%, 12/15/16

      400      416

6.00%, 7/15/18

      615      663

Monsanto Co.,

      

5.13%, 4/15/18

      240      249

5.50%, 8/15/25

      50      50

PPG Industries, Inc.,

      

6.65%, 3/15/18

      220      234

7.70%, 3/15/38

      50      54

Praxair, Inc.,

      

3.95%, 6/1/13

      275      280

Rohm & Haas Co.,

      

6.00%, 9/15/17

      250      224
         
        3,507
         

Commercial Services - 0.0%

      

RR Donnelley & Sons Co.,

      

5.50%, 5/15/15

      225      193

Western Union (The) Co.,

      

5.93%, 10/1/16

      225      227

6.20%, 11/17/36

      50      47
         
        467
         

Computers - 0.3%

      

Computer Sciences Corp.,

      

5.50%, 3/15/13

      250      249

Dell, Inc.,

      

5.65%, 4/15/18

      180      183

5.88%, 6/15/19

      100      102

6.50%, 4/15/38

      50      48

Hewlett-Packard Co.,

      

6.50%, 7/1/12

      75      82

4.50%, 3/1/13

      550      572

4.75%, 6/2/14

      700      731

IBM Corp.,

      

4.75%, 11/29/12

      75      80

5.70%, 9/14/17

      1,450      1,539

8.38%, 11/1/19

      50      62

6.50%, 1/15/28

      100      108

8.00%, 10/15/38

      250      323
         
        4,079
         

Cosmetics/Personal Care - 0.1%

      

Avon Products, Inc.,

      

4.80%, 3/1/13

      175      182

Estee Lauder (The) Cos., Inc.,

      

6.00%, 5/15/37

      100      93

Procter & Gamble Co.,

      

4.85%, 12/15/15

      908      973

4.70%, 2/15/19

      200      203

5.80%, 8/15/34

      100      105

5.55%, 3/5/37

      50      51
         
        1,607
         

 

NORTHERN FUNDS QUARTERLY REPORT    8    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Credit Card - 0.0%

      

Chase Issuance Trust,

      

2.40%, 6/17/13

    $ 500    $ 496
         

Diversified Financial Services - 2.2%

      

AEP Texas Central Transition Funding LLC,

      

5.09%, 7/1/15

      170      177

Allstate Life Global Funding Trusts,

      

5.38%, 4/30/13

      1,000      1,034

American Express Co.,

      

5.25%, 9/12/11

      150      151

4.88%, 7/15/13

      675      659

6.15%, 8/28/17

      700      646

7.00%, 3/19/18

      50      49

8.13%, 5/20/19

      350      363

8.15%, 3/19/38

      170      180

American Express Credit Corp.,

      

5.88%, 5/2/13

      100      99

American General Finance Corp.,

      

5.38%, 10/1/12

      300      177

Ameriprise Financial, Inc.,

      

5.35%, 11/15/10

      100      100

7.30%, 6/28/19

      75      77

Bear Stearns (The) Cos., Inc.,

      

4.50%, 10/28/10

      100      102

5.35%, 2/1/12

      200      210

6.95%, 8/10/12

      200      217

5.30%, 10/30/15

      850      835

5.55%, 1/22/17

      50      46

6.40%, 10/2/17

      150      150

7.25%, 2/1/18

      535      564

Boeing Capital Corp.,

      

6.50%, 2/15/12

      350      384

Capital One Bank,

      

5.75%, 9/15/10

      250      255

Caterpillar Financial Services Corp.,

      

4.25%, 2/8/13

      450      448

4.75%, 2/17/15

      275      266

5.85%, 9/1/17

      592      603

5.45%, 4/15/18

      300      286

Charles Schwab (The) Corp.,

      

4.95%, 6/1/14

      120      122

Citigroup Funding, Inc.,

      

1.38%, 5/5/11

      1,000      1,001

Countrywide Home Loans, Inc.,

      

4.00%, 3/22/11

      875      864

Credit Suisse First Boston USA, Inc.,

      

4.88%, 1/15/15

      375      377

7.13%, 7/15/32

      50      53

Credit Suisse USA, Inc.,

      

6.13%, 11/15/11

      425      455

6.50%, 1/15/12

      800      863

5.50%, 8/15/13

      450      469

5.38%, 3/2/16

      75      77

General Electric Capital Corp.,

      

4.88%, 10/21/10

      200      206

6.13%, 2/22/11

      150      157

5.88%, 2/15/12

      600      627

6.00%, 6/15/12

      900      946

5.45%, 1/15/13

      1,725      1,770

5.90%, 5/13/14

      370      378

4.88%, 3/4/15

      350      340

5.00%, 1/8/16

      100      98

5.63%, 9/15/17

      1,175      1,124

5.63%, 5/1/18

      2,075      1,962

6.75%, 3/15/32

      150      135

6.15%, 8/7/37

      150      124

5.88%, 1/14/38

      600      475

6.88%, 1/10/39

      550      495

Goldman Sachs Capital II,

      

5.79%, 12/29/49

      100      61

Household Finance Corp.,

      

8.00%, 7/15/10

      75      78

6.38%, 10/15/11

      550      562

6.38%, 11/27/12

      250      254

4.75%, 7/15/13

      325      317

HSBC Finance Corp.,

      

6.75%, 5/15/11

      225      231

7.00%, 5/15/12

      375      387

5.50%, 1/19/16

      650      611

IBM International Group Capital LLC,

      

5.05%, 10/22/12

      100      107

International Lease Finance Corp.,

      

5.45%, 3/24/11

      275      231

5.88%, 5/1/13

      100      76

6.63%, 11/15/13

      110      85

5.65%, 6/1/14

      450      326

John Deere Capital Corp.,

      

7.00%, 3/15/12

      350      384

 

FIXED INCOME FUNDS    9    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Diversified Financial Services - 2.2% continued

      

4.95%, 12/17/12

    $ 200    $ 206

5.10%, 1/15/13

      125      130

5.75%, 9/10/18

      200      204

JP Morgan Chase Capital XV,

      

5.88%, 3/15/35

      450      360

Lehman Brothers Holdings Capital Trust VII,

      

5.86%, 11/29/49(1) *

      50      —  

Merrill Lynch & Co., Inc.,

      

4.79%, 8/4/10

      100      100

6.05%, 8/15/12

      400      401

5.45%, 2/5/13

      425      414

6.15%, 4/25/13

      705      706

5.45%, 7/15/14

      330      316

6.05%, 5/16/16

      500      448

5.70%, 5/2/17

      150      129

6.40%, 8/28/17

      200      177

6.88%, 4/25/18

      505      467

6.88%, 11/15/18

      275      254

6.11%, 1/29/37

      150      116

7.75%, 5/14/38

      175      163

National Rural Utilities Cooperative Finance Corp.,

      

7.25%, 3/1/12

      275      300

5.50%, 7/1/13

      300      317

5.45%, 2/1/18

      300      306

8.00%, 3/1/32

      50      56

SLM Corp.,

      

5.00%, 10/1/13

      650      526
         
        31,002
         

Electric - 1.5%

      

Alabama Power Co.,

      

4.85%, 12/15/12

      25      26

6.13%, 5/15/38

      50      54

American Electric Power Co, Inc.,

      

5.25%, 6/1/15

      300      294

Appalachian Power Co.,

      

7.00%, 4/1/38

      75      78

Arizona Public Service Co.,

      

6.38%, 10/15/11

      150      156

6.50%, 3/1/12

      100      103

Carolina Power & Light Co.,

      

5.13%, 9/15/13

      540      572

CenterPoint Energy Houston Electric LLC,

      

5.70%, 3/15/13

      150      152

7.00%, 3/1/14

      200      216

Cleveland Electric Illuminating (The) Co.,

      

5.70%, 4/1/17

      250      244

Commonwealth Edison Co.,

      

5.95%, 8/15/16

      125      130

6.15%, 9/15/17

      225      234

5.80%, 3/15/18

      300      305

6.45%, 1/15/38

      200      206

Consolidated Edison Co. of New York,

      

7.50%, 9/1/10

      100      106

4.88%, 2/1/13

      350      363

5.85%, 3/15/36

      100      100

6.20%, 6/15/36

      200      209

Constellation Energy Group, Inc.,

      

4.55%, 6/15/15

      100      87

7.60%, 4/1/32

      100      89

Consumers Energy Co.,

      

5.50%, 8/15/16

      125      126

6.13%, 3/15/19

      200      209

Detroit Edison (The) Co.,

      

5.60%, 6/15/18

      125      128

5.70%, 10/1/37

      50      48

Dominion Resources, Inc. of Virginia,

      

6.25%, 6/30/12

      200      215

5.15%, 7/15/15

      50      51

6.00%, 11/30/17

      100      104

6.40%, 6/15/18

      20      21

5.95%, 6/15/35

      250      238

7.00%, 6/15/38

      20      22

DTE Energy Co.,

      

7.05%, 6/1/11

      100      105

6.38%, 4/15/33

      50      37

Duke Energy Carolinas LLC,

      

5.25%, 1/15/18

      200      209

5.10%, 4/15/18

      65      67

6.10%, 6/1/37

      150      157

6.00%, 1/15/38

      35      37

6.05%, 4/15/38

      25      26

Duke Energy Corp.,

      

5.30%, 10/1/15

      100      105

6.25%, 6/15/18

      100      105

6.45%, 10/15/32

      106      114

Duke Energy Indiana, Inc.,

      

6.45%, 4/1/39

      250      280

 

NORTHERN FUNDS QUARTERLY REPORT    10    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Electric - 1.5% continued

      

Entergy Louisiana LLC,

      

6.50%, 9/1/18

    $ 100    $ 102

Entergy Texas, Inc.,

      

7.13%, 2/1/19

      250      261

Exelon Corp.,

      

6.75%, 5/1/11

      300      313

5.63%, 6/15/35

      75      60

FirstEnergy Corp.,

      

6.45%, 11/15/11

      375      391

Florida Power & Light Co.,

      

5.55%, 11/1/17

      225      239

5.65%, 2/1/37

      350      359

5.95%, 2/1/38

      150      160

Florida Power Corp.,

      

5.80%, 9/15/17

      50      54

5.65%, 6/15/18

      225      240

6.35%, 9/15/37

      50      55

6.40%, 6/15/38

      285      317

FPL Group Capital, Inc.,

      

5.35%, 6/15/13

      75      80

6.65%, 6/15/67

      25      20

Metropolitan Edison Co.,

      

4.88%, 4/1/14

      200      194

Midamerican Energy Co.,

      

5.30%, 3/15/18

      500      519

Midamerican Energy Holdings Co.,

      

5.88%, 10/1/12

      325      346

6.13%, 4/1/36

      250      247

6.50%, 9/15/37

      200      208

Midamerican Funding LLC,

      

6.93%, 3/1/29

      50      56

Nevada Power Co.,

      

6.65%, 4/1/36

      100      102

Nisource Finance Corp.,

      

6.15%, 3/1/13

      35      35

5.25%, 9/15/17

      450      386

5.45%, 9/15/20

      200      168

Northern States Power Co.,

      

6.25%, 6/1/36

      100      109

NSTAR Electric Co.,

      

4.88%, 4/15/14

      200      209

Ohio Power Co.,

      

5.50%, 2/15/13

      50      52

6.60%, 2/15/33

      100      100

Oncor Electric Delivery Co.,

      

6.80%, 9/1/18

      225      240

7.25%, 1/15/33

      200      218

7.50%, 9/1/38

      145      164

Pacific Gas & Electric Co.,

      

4.80%, 3/1/14

      225      237

5.63%, 11/30/17

      660      699

6.05%, 3/1/34

      450      467

Pacificorp,

      

6.25%, 10/15/37

      275      300

6.00%, 1/15/39

      60      63

Peco Energy Co.,

      

5.35%, 3/1/18

      25      26

Pennsylvania Electric Co.,

      

6.05%, 9/1/17

      300      292

Pepco Holdings, Inc.,

      

6.45%, 8/15/12

      400      416

PPL Electric Utilities Corp.,

      

6.25%, 5/15/39

      125      132

PPL Energy Supply LLC,

      

5.40%, 8/15/14

      250      253

6.50%, 5/1/18

      100      101

PSEG Power LLC,

      

5.50%, 12/1/15

      175      174

PSI Energy, Inc.,

      

5.00%, 9/15/13

      350      362

Public Service Co. of Colorado,

      

7.88%, 10/1/12

      300      348

4.88%, 3/1/13

      325      338

Public Service Co. of Oklahoma,

      

6.63%, 11/15/37

      125      120

Public Service Electric & Gas Co.,

      

5.13%, 9/1/12

      100      103

5.30%, 5/1/18

      575      601

Puget Sound Energy, Inc.,

      

5.48%, 6/1/35

      25      21

6.27%, 3/15/37

      75      69

San Diego Gas & Electric Co.,

      

6.13%, 9/15/37

      50      54

Sierra Pacific Power Co.,

      

5.45%, 9/1/13

      275      282

South Carolina Electric & Gas Co.,

      

5.25%, 11/1/18

      116      121

6.05%, 1/15/38

      265      285

 

FIXED INCOME FUNDS    11    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Electric - 1.5% continued

      

Southern California Edison Co.,

      

5.00%, 1/15/14

    $ 150    $ 158

5.50%, 8/15/18

      100      106

6.65%, 4/1/29

      300      322

6.00%, 1/15/34

      100      106

5.55%, 1/15/37

      125      125

5.95%, 2/1/38

      100      106

6.05%, 3/15/39

      50      54

Southern Power Co.,

      

6.25%, 7/15/12

      600      642

4.88%, 7/15/15

      150      145

Southwestern Electric Power Co.,

      

5.88%, 3/1/18

      400      396

Southwestern Public Service Co.,

      

6.00%, 10/1/36

      100      93

Union Electric Co.,

      

6.40%, 6/15/17

      400      411

Virginia Electric and Power Co.,

      

5.40%, 4/30/18

      425      441

6.00%, 1/15/36

      50      52

8.88%, 11/15/38

      300      402

Wisconsin Electric Power Co.,

      

5.70%, 12/1/36

      150      151

Xcel Energy, Inc.,

      

6.50%, 7/1/36

      100      100
         
        21,806
         

Electrical Components & Equipment - 0.1%

      

Emerson Electric Co.,

      

4.75%, 10/15/15

      100      106

5.38%, 10/15/17

      100      103

5.25%, 10/15/18

      325      333

6.00%, 8/15/32

      25      25
         
        567
         

Environmental Control - 0.1%

      

Republic Services, Inc.,

      

6.75%, 8/15/11

      400      415

Waste Management, Inc.,

      

6.38%, 11/15/12

      100      106

5.00%, 3/15/14

      100      98

6.10%, 3/15/18

      250      246

WMX Technologies,

      

7.10%, 8/1/26

      125      118
         
        983
         

Food - 0.4%

      

Campbell Soup Co.,

      

6.75%, 2/15/11

      100      108

5.00%, 12/3/12

      150      160

ConAgra Foods, Inc.,

      

6.75%, 9/15/11

      22      24

7.00%, 10/1/28

      100      99

General Mills, Inc.,

      

6.00%, 2/15/12

      100      108

5.65%, 9/10/12

      200      213

5.20%, 3/17/15

      500      527

Heinz (H.J.) Co.,

      

5.35%, 7/15/13

      200      209

HJ Heinz Finance Co.,

      

6.63%, 7/15/11

      100      106

6.75%, 3/15/32

      50      50

Kellogg Co.,

      

6.60%, 4/1/11

      300      321

5.13%, 12/3/12

      200      214

7.45%, 4/1/31

      100      120

Kraft Foods, Inc.,

      

6.25%, 6/1/12

      275      296

5.25%, 10/1/13

      125      129

6.50%, 8/11/17

      150      158

6.13%, 2/1/18

      815      843

6.13%, 8/23/18

      50      52

6.50%, 11/1/31

      150      149

7.00%, 8/11/37

      100      106

6.88%, 2/1/38

      100      106

6.88%, 1/26/39

      100      106

Kroger Co.,

      

6.75%, 4/15/12

      275      297

5.50%, 2/1/13

      175      181

6.15%, 1/15/20

      25      26

7.50%, 4/1/31

      200      231

6.90%, 4/15/38

      100      108

Safeway, Inc.,

      

5.80%, 8/15/12

      225      241

6.35%, 8/15/17

      275      291

Sara Lee Corp.,

      

3.88%, 6/15/13

      200      196

Unilever Capital Corp.,

      

7.13%, 11/1/10

      300      320

5.90%, 11/15/32

      125      134
         
        6,229
         

 

NORTHERN FUNDS QUARTERLY REPORT    12    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Forest Products & Paper - 0.1%

      

International Paper Co.,

      

5.30%, 4/1/15

    $ 100    $ 92

7.95%, 6/15/18

      325      314

Weyerhaeuser Co.,

      

6.75%, 3/15/12

      100      100

7.50%, 3/1/13

      125      125

7.38%, 3/15/32

      100      80
         
        711
         

Gas - 0.1%

      

Centerpoint Energy, Inc.,

      

6.50%, 5/1/18

      40      36

KeySpan Corp.,

      

5.80%, 4/1/35

      175      145

Sempra Energy,

      

6.15%, 6/15/18

      400      402

Southern California Gas Co.,

      

5.75%, 11/15/35

      150      152

Southern Union Co.,

      

8.25%, 11/15/29

      25      24
         
        759
         

Healthcare - Products - 0.1%

      

Baxter International, Inc.,

      

4.63%, 3/15/15

      100      102

5.38%, 6/1/18

      225      236

6.25%, 12/1/37

      30      33

Johnson & Johnson,

      

5.55%, 8/15/17

      350      380

5.15%, 7/15/18

      200      213

6.95%, 9/1/29

      100      118

5.95%, 8/15/37

      100      108

Medtronic, Inc.,

      

6.50%, 3/15/39

      100      110
         
        1,300
         

Healthcare - Services - 0.2%

      

Aetna, Inc.,

      

5.75%, 6/15/11

      225      235

6.75%, 12/15/37

      150      139

Quest Diagnostics, Inc.,

      

6.40%, 7/1/17

      100      102

UnitedHealth Group, Inc.,

      

5.00%, 8/15/14

      100      97

5.38%, 3/15/16

      700      658

6.00%, 11/15/17

      50      48

6.63%, 11/15/37

      350      314

6.88%, 2/15/38

      100      93

WellPoint Health Networks,

      

6.38%, 1/15/12

      100      104

WellPoint, Inc.,

      

5.25%, 1/15/16

      150      142

5.88%, 6/15/17

      350      343
         
        2,275
         

Home Furnishings - 0.0%

      

Whirlpool Corp.,

      

5.50%, 3/1/13

      250      237
         

Household Products/Wares - 0.1%

      

Clorox Co.,

      

5.00%, 3/1/13

      350      364

5.00%, 1/15/15

      75      75

5.95%, 10/15/17

      25      25

Fortune Brands, Inc.,

      

5.38%, 1/15/16

      225      206

Kimberly-Clark Corp.,

      

5.00%, 8/15/13

      100      105

6.13%, 8/1/17

      50      55

6.25%, 7/15/18

      150      166

6.63%, 8/1/37

      150      171
         
        1,167
         

Insurance - 0.5%

      

Ace INA Holdings, Inc.,

      

5.90%, 6/15/19

      355      356

6.70%, 5/15/36

      50      50

Allstate Corp.,

      

5.55%, 5/9/35

      50      42

6.13%, 5/15/37

      100      74

6.50%, 5/15/57

      225      165

American International Group, Inc.,

      

4.95%, 3/20/12

      375      255

5.05%, 10/2/15

      100      54

5.85%, 1/16/18

      225      119

8.25%, 8/15/18(2) (3)

      150      88

6.25%, 5/1/36

      100      43

Berkshire Hathaway Finance Corp.,

      

4.63%, 10/15/13

      250      261

4.85%, 1/15/15

      575      598

5.40%, 5/15/18

      300      309

 

FIXED INCOME FUNDS    13    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Insurance - 0.5% continued

      

Chubb Corp.,

      

6.00%, 11/15/11

    $ 200    $ 214

5.75%, 5/15/18

      25      26

6.00%, 5/11/37

      50      51

6.50%, 5/15/38

      85      92

General Electric Global Insurance Holdings Corp.,

      

6.45%, 3/1/19

      175      147

Genworth Financial, Inc.,

      

5.75%, 6/15/14

      175      123

6.52%, 5/22/18

      50      33

Hartford Financial Services Group, Inc.,

      

4.63%, 7/15/13

      75      67

5.38%, 3/15/17

      150      119

5.95%, 10/15/36

      75      51

Lincoln National Corp.,

      

6.15%, 4/7/36

      150      105

6.30%, 10/9/37

      100      72

Marsh & McLennan Cos., Inc.,

      

5.75%, 9/15/15

      520      495

Metlife, Inc.,

      

6.13%, 12/1/11

      200      209

5.00%, 6/15/15

      825      786

6.75%, 6/1/16

      170      173

6.40%, 12/15/36

      150      107

Principal Life Income Funding Trusts,

      

5.30%, 4/24/13

      150      150

5.10%, 4/15/14

      231      231

Progressive (The) Corp.,

      

6.38%, 1/15/12

      350      354

Prudential Financial, Inc.,

      

4.50%, 7/15/13

      125      118

5.10%, 9/20/14

      40      38

6.00%, 12/1/17

      425      400

5.75%, 7/15/33

      50      39

6.63%, 12/1/37

      200      173

St. Paul Travelers (The) Cos., Inc.,

      

5.50%, 12/1/15

      150      154

Travelers Cos (The) Inc.,

      

5.80%, 5/15/18

      375      385

6.25%, 6/15/37

      125      129

Travelers Property Casualty Corp.,

      

5.00%, 3/15/13

      100      101
         
        7,556
         

Iron/Steel - 0.0%

      

Nucor Corp.,

      

6.40%, 12/1/37

      150      154
         

Lodging - 0.0%

      

Marriott International Inc.,

      

5.63%, 2/15/13

      200      197
         

Machinery - Construction & Mining - 0.0%

      

Caterpillar, Inc.,

      

5.70%, 8/15/16

      50      51

7.30%, 5/1/31

      25      26

6.05%, 8/15/36

      50      48
         
        125
         

Machinery - Diversified - 0.0%

      

Deere & Co.,

      

6.95%, 4/25/14

      175      198

8.10%, 5/15/30

      100      121
         
        319
         

Media - 0.8%

      

AT&T Broadband,

      

8.38%, 3/15/13

      100      114

Comcast Cable Communications,

      

6.75%, 1/30/11

      75      79

Comcast Corp.,

      

5.30%, 1/15/14

      150      155

5.85%, 11/15/15

      450      466

6.50%, 1/15/17

      1,500      1,591

5.70%, 5/15/18

      300      302

6.45%, 3/15/37

      175      172

6.95%, 8/15/37

      200      209

6.40%, 5/15/38

      300      294

COX Communications, Inc.,

      

7.13%, 10/1/12

      200      215

4.63%, 6/1/13

      100      98

Disney (The Walt) Co.,

      

6.38%, 3/1/12

      150      165

5.88%, 12/15/17

      300      322

5.50%, 3/15/19

      400      419

McGraw-Hill Cos (The) Inc.,

      

5.90%, 11/15/17

      75      72

News America, Inc.,

      

5.30%, 12/15/14

      450      453

6.90%, 3/1/19(2) (3)

      300      313

6.40%, 12/15/35

      125      109

6.65%, 11/15/37

      550      495

 

NORTHERN FUNDS QUARTERLY REPORT    14    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Media - 0.8% continued

      

Time Warner Cable, Inc.,

      

6.20%, 7/1/13

    $ 225    $ 237

5.85%, 5/1/17

      1,325      1,323

8.75%, 2/14/19

      300      350

7.30%, 7/1/38

      350      365

6.75%, 6/15/39

      100      97

Time Warner Entertainment Co.,

      

8.38%, 3/15/23

      75      83

Time Warner, Inc.,

      

6.88%, 5/1/12

      450      481

5.88%, 11/15/16

      850      838

6.50%, 11/15/36

      400      350

Viacom, Inc.,

      

5.63%, 8/15/12

      350      345

6.25%, 4/30/16

      585      576
         
        11,088
         

Mining - 0.1%

      

Alcoa, Inc.,

      

6.00%, 1/15/12

      150      151

5.55%, 2/1/17

      275      232

6.75%, 7/15/18

      80      71

5.90%, 2/1/27

      75      54

5.95%, 2/1/37

      100      68

Freeport-McMoRan Copper & Gold, Inc.,

      

8.38%, 4/1/17

      725      731

Southern Peru,

      

7.50%, 7/27/35

      100      90
         
        1,397
         

Miscellaneous Manufacturing - 0.2%

      

3M Co.,

      

4.38%, 8/15/13

      200      213

5.70%, 3/15/37

      350      365

Danaher Corp.,

      

5.63%, 1/15/18

      200      208

General Electric Co.,

      

5.00%, 2/1/13

      1,105      1,150

5.25%, 12/6/17

      250      245

Honeywell International, Inc.,

      

6.13%, 11/1/11

      250      273

5.30%, 3/15/17

      200      210

5.30%, 3/1/18

      240      251

5.70%, 3/15/36

      50      51

5.70%, 3/15/37

      125      128

Textron, Inc.,

      

6.50%, 6/1/12

      100      97

5.60%, 12/1/17

      125      101
         
        3,292
         

Office/Business Equipment - 0.1%

      

Pitney Bowes, Inc.,

      

4.63%, 10/1/12

      100      105

Xerox Corp.,

      

5.50%, 5/15/12

      375      374

6.75%, 2/1/17

      100      91
         
        570
         

Oil & Gas - 0.5%

      

Amerada Hess Corp.,

      

7.13%, 3/15/33

      75      75

Anadarko Petroleum Corp.,

      

5.95%, 9/15/16

      450      444

6.95%, 6/15/19

      500      505

Apache Corp.,

      

5.63%, 1/15/17

      250      262

6.00%, 1/15/37

      400      423

Conoco, Inc.,

      

6.95%, 4/15/29

      150      162

ConocoPhillips,

      

4.60%, 1/15/15

      220      226

6.50%, 2/1/39

      525      559

ConocoPhillips Australia Funding Co.,

      

5.50%, 4/15/13

      325      346

Devon Energy Corp.,

      

6.30%, 1/15/19

      500      534

EOG Resources, Inc.,

      

5.63%, 6/1/19

      215      225

Marathon Oil Corp.,

      

6.00%, 10/1/17

      550      560

6.60%, 10/1/37

      75      72

Pemex Project Funding Master Trust,

      

9.13%, 10/13/10

      250      270

5.75%, 3/1/18

      600      552

Premcor Refining Group (The), Inc.,

      

6.75%, 5/1/14

      100      99

Valero Energy Corp.,

      

7.50%, 4/15/32

      50      48

6.63%, 6/15/37

      325      277

 

FIXED INCOME FUNDS    15    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Oil & Gas - 0.5% continued

      

XTO Energy, Inc.,

      

6.25%, 4/15/13

    $ 100    $ 106

4.63%, 6/15/13

      75      75

5.65%, 4/1/16

      100      101

6.25%, 8/1/17

      325      342

6.75%, 8/1/37

      400      418

6.38%, 6/15/38

      300      307
         
        6,988
         

Oil & Gas Services - 0.0%

      

Halliburton Co.,

      

5.90%, 9/15/18

      350      374

6.70%, 9/15/38

      75      80
         
        454
         

Pharmaceuticals - 0.7%

      

Abbott Laboratories,

      

5.60%, 5/15/11

      200      214

5.15%, 11/30/12

      300      324

5.88%, 5/15/16

      225      245

5.60%, 11/30/17

      600      643

6.15%, 11/30/37

      50      54

Bristol-Myers Squibb Co.,

      

5.25%, 8/15/13

      200      213

5.45%, 5/1/18

      340      360

5.88%, 11/15/36

      50      52

6.13%, 5/1/38

      100      108

Cardinal Health, Inc.,

      

5.80%, 10/15/16

      100      97

6.00%, 6/15/17

      200      188

Eli Lilly & Co.,

      

5.20%, 3/15/17

      775      812

Express Scripts, Inc.,

      

7.25%, 6/15/19

      190      210

GlaxoSmithKline Capital, Inc.,

      

4.38%, 4/15/14

      100      102

5.65%, 5/15/18

      800      847

5.38%, 4/15/34

      150      142

6.38%, 5/15/38

      380      413

McKesson Corp.,

      

5.70%, 3/1/17

      275      275

Medco Health Solutions, Inc.,

      

7.13%, 3/15/18

      100      105

Merck & Co., Inc.,

      

4.75%, 3/1/15

      375      392

5.00%, 6/30/19

      175      177

5.75%, 11/15/36

      50      50

5.85%, 6/30/39

      100      103

Pfizer, Inc.,

      

4.50%, 2/15/14

      250      260

5.35%, 3/15/15

      335      360

6.20%, 3/15/19

      1,000      1,094

7.20%, 3/15/39

      200      238

Pharmacia Corp.,

      

6.60%, 12/1/28

      125      139

Schering-Plough Corp.,

      

5.55%, 12/1/13

      100      107

6.00%, 9/15/17

      350      373

Teva Pharmaceutical Finance LLC,

      

5.55%, 2/1/16

      100      103

6.15%, 2/1/36

      45      46

Wyeth,

      

5.50%, 2/1/14

      815      872

5.50%, 2/15/16

      425      445

5.95%, 4/1/37

      225      233
         
        10,396
         

Pipelines - 0.4%

      

Buckeye Partners LP,

      

6.05%, 1/15/18

      85      77

CenterPoint Energy Resources Corp.,

      

7.88%, 4/1/13

      150      160

6.00%, 5/15/18

      85      77

6.63%, 11/1/37

      50      40

Duke Capital Corp., Senior Notes,

      

6.25%, 2/15/13

      150      154

El Paso Natural Gas Co.,

      

5.95%, 4/15/17

      350      337

8.38%, 6/15/32

      100      109

Enbridge Energy Partners LP,

      

7.50%, 4/15/38

      50      50

Energy Transfer Partners LP,

      

6.13%, 2/15/17

      350      348

9.00%, 4/15/19

      400      457

7.50%, 7/1/38

      50      52

Enterprise Products Operating LLC,

      

5.65%, 4/1/13

      350      359

5.60%, 10/15/14

      250      257

6.30%, 9/15/17

      135      136

6.88%, 3/1/33

      50      51

 

NORTHERN FUNDS QUARTERLY REPORT    16    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Pipelines - 0.4% continued

      

Kinder Morgan Energy Partners LP,

      

6.75%, 3/15/11

    $ 250    $ 262

5.13%, 11/15/14

      250      249

5.95%, 2/15/18

      495      484

6.85%, 2/15/20

      70      72

ONEOK Partners LP,

      

6.15%, 10/1/16

      200      198

8.63%, 3/1/19

      350      391

ONEOK, Inc.,

      

5.20%, 6/15/15

      200      188

Panhandle Eastern Pipeline Co.,

      

6.20%, 11/1/17

      100      96

Plains All American Pipeline LP,

      

6.50%, 5/1/18

      300      303

Plains All American Pipeline LP/PAA Finance Corp.,

      

6.13%, 1/15/17

      200      193

Spectra Energy Capital LLC,

      

5.90%, 9/15/13

      125      127

6.20%, 4/15/18

      100      98

7.50%, 9/15/38

      50      49

Tennessee Gas Pipeline Co.,

      

7.00%, 10/15/28

      50      48

TEPPCO Partners LP,

      

7.55%, 4/15/38

      50      52

Transcontinental Gas Pipe Line Co LLC,

      

7.00%, 8/15/11

      400      422

Williams Cos (The), Inc.,

      

8.75%, 3/15/32

      125      126
         
        6,022
         

Real Estate - 0.0%

      

Regency Centers LP,

      

5.88%, 6/15/17

      25      20
         

Real Estate Investment Trusts - 0.1%

      

Boston Properties, Inc.,

      

6.25%, 1/15/13

      100      100

Brandywine Operating Partnership LP,

      

5.70%, 5/1/17

      150      104

ERP Operating LP,

      

6.63%, 3/15/12

      100      103

Health Care Property Investors, Inc.,

      

6.00%, 1/30/17

      150      127

Hospitality Properties Trust,

      

6.70%, 1/15/18

      75      58

HRPT Properties Trust,

      

6.25%, 6/15/17

      75      60

6.65%, 1/15/18

      50      40

Liberty Property LP,

      

6.63%, 10/1/17

      50      43

Prologis,

      

5.75%, 4/1/16

      400      315

Simon Property Group LP,

      

6.35%, 8/28/12

      75      76

5.10%, 6/15/15

      250      228

5.25%, 12/1/16

      200      178
         
        1,432
         

Retail - 0.6%

      

Costco Wholesale Corp.,

      

5.50%, 3/15/17

      250      265

CVS Caremark Corp.,

      

5.75%, 8/15/11

      100      106

5.75%, 6/1/17

      700      704

6.25%, 6/1/27

      250      254

Home Depot, Inc.,

      

5.25%, 12/16/13

      75      77

5.40%, 3/1/16

      800      798

5.88%, 12/16/36

      350      309

Kohl’s Corp.,

      

6.88%, 12/15/37

      150      151

Lowe’s Cos., Inc.,

      

5.00%, 10/15/15

      325      344

5.80%, 10/15/36

      100      95

McDonald’s Corp.,

      

4.30%, 3/1/13

      175      182

5.80%, 10/15/17

      500      545

6.30%, 10/15/37

      75      81

Nordstrom, Inc.,

      

6.25%, 1/15/18

      25      24

7.00%, 1/15/38

      50      45

Target Corp.,

      

5.88%, 3/1/12

      430      465

5.38%, 5/1/17

      475      489

6.50%, 10/15/37

      125      126

7.00%, 1/15/38

      325      346

Walgreen Co.,

      

5.25%, 1/15/19

      525      546

Wal-Mart Stores, Inc.,

      

4.25%, 4/15/13

      375      390

 

FIXED INCOME FUNDS    17    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Retail - 0.6% continued

      

4.55%, 5/1/13

    $ 1,050    $ 1,100

7.25%, 6/1/13

      175      200

5.88%, 4/5/27

      250      259

5.25%, 9/1/35

      175      167

6.20%, 4/15/38

      275      295

Yum! Brands, Inc.,

      

6.25%, 4/15/16

      150      153

6.88%, 11/15/37

      50      50
         
        8,566
         

Savings & Loans - 0.0%

      

Golden West Financial Corp.,

      

4.75%, 10/1/12

      75      76
         

Software - 0.2%

      

Fiserv, Inc.,

      

6.13%, 11/20/12

      250      259

Microsoft Corp.,

      

5.20%, 6/1/39

      200      195

Oracle Corp.,

      

4.95%, 4/15/13

      400      419

5.25%, 1/15/16

      375      392

5.00%, 7/8/19(4)

      130      130

6.50%, 4/15/38

      550      586

6.13%, 7/8/39(4)

      100      99
         
        2,080
         

Telecommunications - 1.1%

      

AT&T Corp.,

      

8.00%, 11/15/31

      165      190

AT&T Wireless,

      

7.88%, 3/1/11

      100      108

8.13%, 5/1/12

      150      168

8.75%, 3/1/31

      150      183

AT&T, Inc.,

      

5.60%, 5/15/18

      175      176

5.80%, 2/15/19

      650      660

6.80%, 5/15/36

      50      52

6.30%, 1/15/38

      175      169

6.40%, 5/15/38

      425      416

6.55%, 2/15/39

      375      374

BellSouth Corp.,

      

5.20%, 9/15/14

      1,100      1,145

5.20%, 12/15/16

      1,300      1,298

Bellsouth Telecommunications, Inc.,

      

6.38%, 6/1/28

      75      73

Cisco Systems, Inc.,

      

5.50%, 2/22/16

      925      980

5.90%, 2/15/39

      500      492

Embarq Corp.,

      

7.08%, 6/1/16

      750      733

8.00%, 6/1/36

      150      132

Harris Corp.,

      

6.38%, 6/15/19

      50      53

Motorola, Inc.,

      

7.63%, 11/15/10

      100      102

Qwest Corp.,

      

8.38%, 5/1/16(3)

      880      849

SBC Communications, Inc.,

      

5.88%, 2/1/12

      100      107

5.10%, 9/15/14

      1,450      1,506

6.15%, 9/15/34

      125      119

U.S. West Communications,

      

6.88%, 9/15/33

      125      91

Verizon Communications, Inc.,

      

5.55%, 2/15/16

      1,300      1,346

5.50%, 2/15/18

      535      531

6.10%, 4/15/18

      175      180

6.35%, 4/1/19

      450      468

7.35%, 4/1/39

      650      708

Verizon Global Funding Corp.,

      

6.88%, 6/15/12

      200      220

7.75%, 12/1/30

      500      558

Verizon New York, Inc.,

      

7.38%, 4/1/32

      150      146

Verizon Virginia, Inc.,

      

4.63%, 3/15/13

      450      451

Verizon Wireless Capital LLC,

      

8.50%, 11/15/18(2) (3)

      1,100      1,315
         
        16,099
         

Transportation - 0.2%

      

Burlington Northern Santa Fe Corp.,

      

6.75%, 7/15/11

      100      107

5.65%, 5/1/17

      500      510

6.15%, 5/1/37

      100      100

CSX Corp.,

      

5.50%, 8/1/13

      200      204

6.00%, 10/1/36

      100      91

6.15%, 5/1/37

      150      139

 

NORTHERN FUNDS QUARTERLY REPORT    18    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 16.0% continued

      

Transportation - 0.2% continued

      

Federal Express,

      

9.65%, 6/15/12

    $ 75    $ 84

FedEx Corp.,

      

8.00%, 1/15/19

      40      46

Norfolk Southern Corp.,

      

6.75%, 2/15/11

      100      105

5.26%, 9/17/14

      200      207

5.90%, 6/15/19

      320      332

Union Pacific Corp.,

      

6.50%, 4/15/12

      100      105

7.00%, 2/1/16

      100      103

5.75%, 11/15/17

      625      630

United Parcel Service, Inc.,

      

5.50%, 1/15/18

      275      293

8.38%, 4/1/20

      50      64

6.20%, 1/15/38

      150      164
         
        3,284
         

Water - 0.0%

      

American Water Capital Corp.,

      

6.59%, 10/15/37

      75      66
         

Total Corporate Bonds

      
         

(Cost $224,768)

         226,783

FOREIGN ISSUER BONDS - 5.8%

      

Banks - 1.2%

      

Abbey National PLC,

      

7.95%, 10/26/29

      200      178

Barclays Bank PLC,

      

5.45%, 9/12/12

      300      313

6.75%, 5/22/19

      200      198

Credit Suisse New York,

      

5.00%, 5/15/13

      800      818

6.00%, 2/15/18

      190      190

Deutsche Bank A.G. London,

      

4.88%, 5/20/13

      400      411

6.00%, 9/1/17

      975      995

HSBC Holdings PLC,

      

5.25%, 12/12/12

      700      725

6.50%, 9/15/37

      200      193

6.80%, 6/1/38

      150      151

Korea Development Bank,

      

5.30%, 1/17/13

      205      202

Kreditanstalt fuer Wiederaufbau,

      

4.63%, 1/20/11

      350      365

4.75%, 5/15/12

      2,000      2,145

3.25%, 3/15/13

      2,600      2,649

3.50%, 5/16/13

      225      231

4.00%, 10/15/13

      1,200      1,250

4.13%, 10/15/14

      500      505

4.88%, 1/17/17

      200      211

4.38%, 3/15/18

      375      382

0.00%, 6/29/37

      500      119

Landwirtschaftliche Rentenbank,

      

5.25%, 7/15/11

      175      187

3.25%, 3/15/13

      350      353

5.13%, 2/1/17

      900      953

Oesterreichische Kontrollbank A.G.,

      

3.13%, 10/14/11

      100      100

4.75%, 10/16/12

      850      900

3.63%, 6/17/13

      170      171

4.50%, 3/9/15

      250      256

5.00%, 4/25/17

      100      101

Royal Bank of Canada,

      

5.65%, 7/20/11

      250      266

Royal Bank of Scotland Group PLC,

      

6.38%, 2/1/11

      100      100

5.00%, 10/1/14

      400      320

UBS A.G./Stamford Branch,

      

5.88%, 7/15/16

      450      389

5.88%, 12/20/17

      640      596

5.75%, 4/25/18

      125      114
         
        17,037
         

Beverages - 0.1%

      

Diageo Capital PLC,

      

5.13%, 1/30/12

      25      26

5.50%, 9/30/16

      150      154

5.75%, 10/23/17

      750      782

Diageo Finance BV,

      

5.50%, 4/1/13

      225      237
         
        1,199
         

Building Materials - 0.0%

      

Lafarge S.A.,

      

6.50%, 7/15/16

      50      46
         

 

FIXED INCOME FUNDS    19    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL     
     AMOUNT    VALUE
     (000S)    (000S)

FOREIGN ISSUER BONDS - 5.8% continued

      

Chemicals - 0.0%

      

Potash Corp. of Saskatchewan, Inc.,

      

7.75%, 5/31/11

    $ 150    $ 164

6.50%, 5/15/19

      135      146

5.88%, 12/1/36

      50      47
         
        357
         

Diversified Financial Services - 0.2%

      

BP Capital Markets PLC,

      

4.75%, 3/10/19

      1,000      995

ConocoPhillips Canada Funding Co.,

      

5.63%, 10/15/16

      1,150      1,225

5.95%, 10/15/36

      250      252

Credit Suisse Guernsey Ltd.,

      

5.86%, 12/31/49

      150      97

MUFG Capital Finance 1 Ltd.,

      

6.35%, 7/29/49

      500      438

UFJ Finance Aruba AEC,

      

6.75%, 7/15/13

      200      207
         
        3,214
         

Electric - 0.1%

      

Hydro-Quebec,

      

6.30%, 5/11/11

      350      379

8.00%, 2/1/13

      250      284

9.40%, 2/1/21

      200      259

Ontario Hydro,

      

7.45%, 3/31/13

      150      167

Scottish Power PLC,

      

5.38%, 3/15/15

      100      96
         
        1,185
         

Electronics - 0.0%

      

Philips Electronics,

      

4.63%, 3/11/13

      200      205

6.88%, 3/11/38

      225      241
         
        446
         

Healthcare - Products - 0.0%

      

Covidien International Finance S.A.,

      

6.00%, 10/15/17

      300      319

6.55%, 10/15/37

      25      28
         
        347
         

Holding Companies - Diversified - 0.0%

      

EnCana Holdings Finance Corp.,

      

5.80%, 5/1/14

      100      106
         

Insurance - 0.0%

      

Allied World Assurance Holdings Ltd.,

      

7.50%, 8/1/16

      100      85

AXA S.A.,

      

8.60%, 12/15/30

      75      70

ING Groep N.V.,

      

5.78%, 12/29/49

      75      44

XL Capital Ltd.,

      

6.50%, 12/31/49

      50      24
         
        223
         

Iron/Steel - 0.1%

      

ArcelorMittal,

      

6.13%, 6/1/18

      500      437

9.85%, 6/1/19

      250      270
         
        707
         

Media - 0.0%

      

Thomson Reuters Corp.,

      

5.95%, 7/15/13

      375      384
         

Mining - 0.3%

      

Alcan, Inc.,

      

4.50%, 5/15/13

      100      98

5.20%, 1/15/14

      100      94

6.13%, 12/15/33

      100      79

Barrick Gold Corp.,

      

6.95%, 4/1/19

      150      168

Barrick North America Finance LLC,

      

6.80%, 9/15/18

      175      191

BHP Billiton Finance USA Ltd.,

      

4.80%, 4/15/13

      300      312

5.50%, 4/1/14

      300      322

5.25%, 12/15/15

      250      260

5.40%, 3/29/17

      100      105

6.50%, 4/1/19

      200      222

Rio Tinto Finance USA Ltd.,

      

6.50%, 7/15/18

      675      676

9.00%, 5/1/19

      475      528

Vale Overseas Ltd.,

      

6.25%, 1/23/17

      525      529

6.88%, 11/21/36

      175      166
         
        3,750
         

Miscellaneous Manufacturing - 0.1%

      

Ingersoll-Rand Global Holding Co. Ltd.,

      

6.00%, 8/15/13

      200      201

 

NORTHERN FUNDS QUARTERLY REPORT    20    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

     PRINCIPAL
AMOUNT		    VALUE
     (000S)    (000S)

FOREIGN ISSUER BONDS - 5.8% continued

      

Miscellaneous Manufacturing - 0.1% continued

      

Tyco Electronics Group S.A.,

      

6.55%, 10/1/17

    $ 50    $ 45

7.13%, 10/1/37

      50      41

Tyco International Finance S.A.,

      

8.50%, 1/15/19

      50      55

Tyco International Ltd./Tyco International Finance S.A.,

      

6.88%, 1/15/21

      500      473
         
        815
         

Multi-National - 0.9%

      

Asian Development Bank/Pasig,

      

4.13%, 9/15/10

      150      155

5.50%, 6/27/16

      600      649

5.59%, 7/16/18

      50      55

Corp. Andina de Fomento,

      

5.20%, 5/21/13

      100      100

5.75%, 1/12/17

      100      96

European Bank for Reconstruction & Development,

      

3.63%, 6/17/13

      190      195

European Investment Bank,

      

3.25%, 2/15/11

      300      309

2.63%, 5/16/11

      200      205

3.13%, 7/15/11

      500      516

3.25%, 5/15/13

      1,025      1,038

3.38%, 6/12/13

      750      763

4.25%, 7/15/13

      1,300      1,370

2.38%, 3/14/14

      2,000      1,945

4.63%, 5/15/14

      750      798

4.88%, 1/17/17

      800      842

5.13%, 5/30/17

      350      374

4.88%, 2/15/36

      200      193

Inter-American Development Bank,

      

5.00%, 4/5/11

      100      106

4.38%, 9/20/12

      1,200      1,276

3.50%, 7/8/13

      200      205

4.25%, 9/10/18

      400      400

International Bank for Reconstruction & Development,

      

5.00%, 4/1/16

      450      481

9.25%, 7/15/17

      100      135

4.75%, 2/15/35

      25      23

International Finance Corp.,

      

5.13%, 5/2/11

      150      154

4.75%, 4/25/12

      25      26

3.50%, 5/15/13

      300      295

Nordic Investment Bank,

      

5.00%, 2/1/17

      100      106
         
        12,810
         

Oil & Gas - 0.4%

      

Alberta Energy Co. Ltd.,

      

7.38%, 11/1/31

      75      79

Anadarko Finance Co.,

      

6.75%, 5/1/11

      50      52

7.50%, 5/1/31

      75      73

Canadian Natural Resources Ltd.,

      

5.70%, 5/15/17

      225      228

5.90%, 2/1/18

      250      255

6.25%, 3/15/38

      150      150

6.75%, 2/1/39

      50      52

Conoco Funding Co.,

      

6.35%, 10/15/11

      300      327

Devon Financing Corp. ULC,

      

6.88%, 9/30/11

      250      272

7.88%, 9/30/31

      200      236

EnCana Corp.,

      

5.90%, 12/1/17

      225      231

6.50%, 5/15/19

      75      80

6.63%, 8/15/37

      75      78

6.50%, 2/1/38

      100      102

Marathon Global Funding Corp.,

      

6.00%, 7/1/12

      200      211

Nexen, Inc.,

      

5.05%, 11/20/13

      250      252

7.88%, 3/15/32

      75      81

Norsk Hydro ASA,

      

7.75%, 6/15/23

      100      119

Petro-Canada,

      

4.00%, 7/15/13

      200      194

6.05%, 5/15/18

      50      50

5.95%, 5/15/35

      100      90

6.80%, 5/15/38

      50      49

Shell International Finance BV,

      

6.38%, 12/15/38

      600      654

Suncor Energy, Inc.,

      

6.10%, 6/1/18

      275      276

7.15%, 2/1/32

      100      98

5.95%, 12/1/34

      50      45

 

FIXED INCOME FUNDS    21    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

FOREIGN ISSUER BONDS - 5.8% continued

      

Oil & Gas - 0.4% continued

      

6.50%, 6/15/38

    $ 100    $ 94

Talisman Energy, Inc.,

      

7.75%, 6/1/19

      175      194

Transocean, Inc.,

      

6.00%, 3/15/18

      225      234

6.80%, 3/15/38

      200      214
         
        5,070
         

Oil & Gas Services - 0.0%

      

Weatherford International Ltd.,

      

5.50%, 2/15/16

      200      192

9.63%, 3/1/19

      100      118

6.50%, 8/1/36

      125      113
         
        423
         

Pharmaceuticals - 0.1%

      

AstraZeneca PLC,

      

5.40%, 9/15/12

      200      217

5.90%, 9/15/17

      800      857

6.45%, 9/15/37

      50      55

Novartis Securities Investment Ltd.,

      

5.13%, 2/10/19

      750      767
         
        1,896
         

Pipelines - 0.1%

      

Enbridge, Inc.,

      

5.80%, 6/15/14

      75      78

TransCanada Pipelines Ltd.,

      

6.50%, 8/15/18

      465      506

5.85%, 3/15/36

      275      266

6.20%, 10/15/37

      50      51

7.63%, 1/15/39

      295      344

6.35%, 5/15/67

      100      69
         
        1,314
         

Regional - 0.3%

      

Province of British Columbia Canada,

      

4.30%, 5/30/13

      100      101

7.25%, 9/1/36

      175      218

Province of Manitoba Canada,

      

4.90%, 12/6/16

      200      207

9.25%, 4/1/20

      150      205

Province of Nova Scotia Canada,

      

5.75%, 2/27/12

      100      105

8.25%, 7/30/22

      200      260

Province of Ontario Canada,

      

3.38%, 5/20/11

      75      77

4.38%, 2/15/13

      250      260

3.50%, 7/15/13

      100      101

4.75%, 1/19/16

      200      205

5.45%, 4/27/16

      350      374

4.95%, 11/28/16

      650      662

Province of Quebec Canada,

      

5.13%, 11/14/16

      250      259

4.63%, 5/14/18

      350      346

7.50%, 7/15/23

      300      351

7.13%, 2/9/24

      100      114

7.50%, 9/15/29

      375      460

Province of Saskatchewan Canada,

      

8.50%, 7/15/22

      200      269
         
        4,574
         

Sovereign - 1.2%

      

Brazilian Government International Bond,

      

6.00%, 1/17/17

      1,250      1,283

8.00%, 1/15/18

      400      448

8.88%, 10/14/19

      1,075      1,317

8.88%, 4/15/24

      600      746

7.13%, 1/20/37

      100      108

11.00%, 8/17/40

      635      826

Eksportfinans,

      

5.00%, 2/14/12

      250      265

5.50%, 5/25/16

      100      104

5.50%, 6/26/17

      200      200

Export Development Canada,

      

3.50%, 5/16/13

      670      681

Israel Government International Bond,

      

5.50%, 11/9/16

      225      234

5.13%, 3/26/19

      250      248

Italy Government International Bond,

      

6.00%, 2/22/11

      425      457

5.63%, 6/15/12

      400      436

5.25%, 9/20/16

      1,000      1,030

5.38%, 6/12/17

      1,175      1,194

5.38%, 6/15/33

      175      170

Japan Bank for International Cooperation,

      

4.25%, 6/18/13

      200      200

Peruvian Government International Bond,

      

8.38%, 5/3/16

      500      576

7.35%, 7/21/25

      250      267

6.55%, 3/14/37

      150      146

 

NORTHERN FUNDS QUARTERLY REPORT    22    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

FOREIGN ISSUER BONDS - 5.8% continued

      

Sovereign - 1.2% continued

      

Republic of Korea,

      

4.25%, 6/1/13

    $ 100    $ 98

4.88%, 9/22/14

      400      396

5.13%, 12/7/16

      125      121

7.13%, 4/16/19

      150      162

Republic of Poland,

      

5.00%, 10/19/15

      475      473

Republic of South Africa,

      

7.38%, 4/25/12

      250      268

6.88%, 5/27/19

      275      283

Svensk Exportkredit AB,

      

5.13%, 3/1/17

      500      506

Swedish Export Credit,

      

4.50%, 9/27/10

      150      155

4.88%, 9/29/11

      225      237

United States of Mexico,

      

8.38%, 1/14/11

      100      110

6.38%, 1/16/13

      875      945

6.63%, 3/3/15

      500      535

5.63%, 1/15/17

      520      526

8.13%, 12/30/19

      400      466

7.50%, 4/8/33

      100      110

6.75%, 9/27/34

      550      555

6.05%, 1/11/40

      120      109
         
        16,991
         

Telecommunications - 0.6%

      

America Movil SAB de C.V.,

      

5.75%, 1/15/15

      400      403

6.13%, 11/15/37

      200      183

British Telecommunications PLC,

      

9.13%, 12/15/10

      250      266

5.95%, 1/15/18

      575      518

9.63%, 12/15/30

      100      111

Deutsche Telekom International Finance BV,

      

5.88%, 8/20/13

      775      813

5.75%, 3/23/16

      525      538

8.75%, 6/15/30

      100      117

France Telecom S.A.,

      

7.75%, 3/1/11

      300      324

8.50%, 3/1/31

      175      225

Nokia OYJ,

      

5.38%, 5/15/19

      125      126

Rogers Communications, Inc.,

      

6.80%, 8/15/18

      600      643

Telecom Italia Capital S.A.,

      

5.25%, 11/15/13

      475      466

5.25%, 10/1/15

      675      652

6.38%, 11/15/33

      50      44

7.72%, 6/4/38

      50      51

Telefonica Emisiones S.A.U,

      

4.95%, 1/15/15(4)

      335      340

Telefonica Emisiones SAU,

      

6.42%, 6/20/16

      900      962

7.05%, 6/20/36

      450      499

Telefonos de Mexico S.A. de C.V.,

      

5.50%, 1/27/15

      125      125

Telus Corp.,

      

8.00%, 6/1/11

      125      134

Vodafone Group PLC,

      

5.00%, 12/16/13

      850      882

5.00%, 9/15/15

      100      100

5.63%, 2/27/17

      225      229

6.15%, 2/27/37

      375      369
         
        9,120
         

Transportation - 0.1%

      

Canadian National Railway Co.,

      

4.40%, 3/15/13

      450      460

6.90%, 7/15/28

      25      28

6.20%, 6/1/36

      25      26

6.38%, 11/15/37

      50      55

Canadian Pacific Railway Co.,

      

6.50%, 5/15/18

      50      49

5.95%, 5/15/37

      50      41
         
        659
         

Total Foreign Issuer Bonds

      
         

(Cost $82,075)

         82,673

U.S. GOVERNMENT AGENCIES - 45.9% (5)

      

Fannie Mae - 22.0%

      

6.63%, 11/15/10

      1,000      1,079

5.50%, 3/15/11

      500      537

1.75%, 3/23/11

      2,000      2,019

6.00%, 5/15/11

      500      543

1.88%, 4/20/12

      9,000      9,037

4.38%, 3/15/13

      3,300      3,549

4.63%, 10/15/13

      500      540

2.75%, 3/13/14

      4,000      3,991

5.00%, 3/15/16

      500      544

 

FIXED INCOME FUNDS    23    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Fannie Mae - 22.0% continued

      

5.00%, 5/11/17

    $ 1,000    $ 1,086

5.25%, 12/21/17

      2,500      2,505

5.50%, 12/14/22

      3,000      2,999

5.80%, 2/9/26

      3,670      3,803

6.63%, 11/15/30

      200      245

6.00%, 4/18/36

      2,000      2,091

5.63%, 7/15/37

      1,000      1,053

Pool #255376,

      

6.00%, 8/1/19

      211      224

Pool #255695,

      

4.50%, 3/1/35

      71      73

Pool #256675,

      

5.00%, 4/1/27

      508      521

Pool #256677,

      

6.00%, 4/1/27

      342      359

Pool #256792,

      

6.50%, 6/1/22

      287      304

Pool #256925,

      

6.00%, 10/1/37

      852      892

Pool #256959,

      

6.00%, 11/1/37

      3,691      3,863

Pool #256985,

      

7.00%, 11/1/37

      1,192      1,295

Pool #257057,

      

5.00%, 1/1/28

      1,582      1,623

Pool #257106,

      

4.50%, 1/1/28

      239      241

Pool #257237,

      

4.50%, 6/1/28

      579      583

Pool #257239,

      

5.50%, 6/1/28

      849      881

Pool #257367,

      

5.50%, 9/1/28

      2,118      2,200

Pool #357630,

      

5.00%, 10/1/19

      310      323

Pool #707791,

      

5.00%, 6/1/33

      2,225      2,277

Pool #709239,

      

5.00%, 7/1/18

      1,559      1,633

Pool #720049,

      

5.50%, 7/1/33

      788      817

Pool #722424,

      

4.32%, 7/1/33

      102      104

Pool #725185,

      

5.00%, 2/1/19

      361      378

Pool #725425,

      

5.50%, 4/1/34

      741      767

Pool #730811,

      

4.50%, 8/1/33

      809      811

Pool #735222,

      

5.00%, 2/1/35

      401      410

Pool #735358,

      

5.50%, 2/1/35

      1,277      1,324

Pool #735502,

      

6.00%, 4/1/35

      216      227

Pool #737853,

      

5.00%, 9/1/33

      3,587      3,670

Pool #745418,

      

5.50%, 4/1/36

      851      882

Pool #745754,

      

5.00%, 9/1/34

      3,218      3,293

Pool #745826,

      

6.00%, 7/1/36

      4,957      5,192

Pool #746272,

      

4.00%, 10/1/18

      1,204      1,231

Pool #747383,

      

5.50%, 10/1/33

      1,282      1,330

Pool #753678,

      

4.74%, 12/1/33

      480      495

Pool #755632,

      

5.00%, 4/1/34

      2,194      2,243

Pool #766083,

      

4.62%, 2/1/34

      60      61

Pool #772730,

      

5.00%, 4/1/34

      1,440      1,474

Pool #773287,

      

4.36%, 3/1/35

      584      605

Pool #783586,

      

4.45%, 3/1/35

      534      542

Pool #790406,

      

6.00%, 9/1/34

      755      794

Pool #793666,

      

5.50%, 9/1/34

      736      763

Pool #796250,

      

5.50%, 11/1/34

      593      615

Pool #800471,

      

5.50%, 10/1/34

      3,149      3,266

 

NORTHERN FUNDS QUARTERLY REPORT    24    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Fannie Mae - 22.0% continued

      

Pool #807701,

      

4.50%, 12/1/19

    $ 402    $ 417

Pool #811944,

      

4.50%, 1/1/20

      596      615

Pool #815639,

      

4.96%, 6/1/35

      80      82

Pool #817795,

      

6.00%, 8/1/36

      718      752

Pool #820998,

      

4.00%, 4/1/35

      281      289

Pool #821912,

      

4.95%, 6/1/35

      1,250      1,295

Pool #822455,

      

4.64%, 4/1/35

      242      251

Pool #826057,

      

5.00%, 7/1/35

      647      661

Pool #826368,

      

5.10%, 7/1/35

      492      510

Pool #831676,

      

6.50%, 8/1/36

      307      329

Pool #832628,

      

5.50%, 9/1/20

      251      264

Pool #833067,

      

5.50%, 9/1/35

      3,834      3,972

Pool #835517,

      

4.97%, 8/1/35

      168      174

Pool #840577,

      

5.00%, 10/1/20

      233      243

Pool #844909,

      

4.50%, 10/1/20

      350      361

Pool #846600,

      

5.16%, 1/1/36

      1,218      1,261

Pool #847921,

      

5.50%, 11/1/20

      796      837

Pool #850614,

      

5.48%, 1/1/36

      241      253

Pool #863759,

      

4.00%, 12/1/20

      305      306

Pool #864435,

      

4.50%, 12/1/20

      876      903

Pool #866109,

      

5.11%, 12/1/35

      97      100

Pool #869217,

      

5.46%, 2/1/36

      378      395

Pool #869710,

      

6.00%, 4/1/36

      1,730      1,812

Pool #871135,

      

6.00%, 1/1/37

      592      621

Pool #880505,

      

6.00%, 8/1/21

      279      296

Pool #882055,

      

5.48%, 6/1/36

      364      378

Pool #884776,

      

5.50%, 10/1/36

      710      744

Pool #885769,

      

6.00%, 6/1/36

      241      253

Pool #885866,

      

6.00%, 6/1/36

      793      830

Pool #887019,

      

5.87%, 6/1/36

      910      943

Pool #887111,

      

5.50%, 5/1/20

      153      162

Pool #888100,

      

5.50%, 9/1/36

      2,733      2,834

Pool #888152,

      

5.00%, 5/1/21

      629      657

Pool #888205,

      

6.50%, 2/1/37

      703      750

Pool #888318,

      

5.62%, 2/1/37

      460      483

Pool #888447,

      

4.00%, 5/1/21

      384      385

Pool #889224,

      

5.50%, 1/1/37

      3,561      3,689

Pool #889390,

      

6.00%, 3/1/23

      774      820

Pool #889401,

      

6.00%, 3/1/38

      3,288      3,444

Pool #889415,

      

6.00%, 5/1/37

      7,587      7,948

Pool #889630,

      

6.50%, 3/1/38

      905      965

Pool #889886,

      

7.00%, 12/1/37

      1,126      1,222

Pool #892536,

      

6.50%, 9/1/36

      391      417

Pool #892968,

      

6.50%, 8/1/21

      100      106

 

FIXED INCOME FUNDS    25    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Fannie Mae - 22.0% continued

      

Pool #893363,

      

5.00%, 6/1/36

    $ 626    $ 640

Pool #893366,

      

5.00%, 4/1/35

      858      877

Pool #894453,

      

5.93%, 9/1/36

      2,117      2,226

Pool #897519,

      

5.97%, 11/1/36

      66      70

Pool #898089,

      

5.50%, 7/1/26

      422      438

Pool #898417,

      

6.00%, 10/1/36

      1,375      1,440

Pool #899079,

      

5.00%, 3/1/37

      1,246      1,271

Pool #902188,

      

5.90%, 11/1/36

      80      84

Pool #905090,

      

5.50%, 10/1/21

      406      426

Pool #905759,

      

5.88%, 12/1/36

      216      227

Pool #906090,

      

5.50%, 1/1/37

      2,176      2,250

Pool #906237,

      

5.74%, 1/1/37

      512      538

Pool #907818,

      

5.62%, 1/1/37

      72      76

Pool #910147,

      

5.00%, 3/1/22

      896      928

Pool #910338,

      

5.76%, 3/1/37

      170      179

Pool #912414,

      

4.50%, 1/1/22

      911      931

Pool #914522,

      

5.76%, 3/1/37

      76      80

Pool #915499,

      

5.00%, 3/1/37

      1,197      1,221

Pool #915870,

      

7.00%, 4/1/37

      410      445

Pool #918515,

      

5.00%, 6/1/37

      1,409      1,437

Pool #918832,

      

6.00%, 4/1/37

      6,049      6,331

Pool #919461,

      

5.71%, 4/1/37

      80      84

Pool #920457,

      

4.90%, 8/1/36

      56      58

Pool #920468,

      

4.42%, 4/1/34

      541      556

Pool #920988,

      

5.85%, 11/1/36

      49      52

Pool #923023,

      

6.46%, 1/1/37

      845      888

Pool #923123,

      

5.00%, 4/1/36

      371      379

Pool #923166,

      

7.50%, 1/1/37

      339      368

Pool #928261,

      

4.50%, 3/1/36

      448      449

Pool #928909,

      

6.00%, 12/1/37

      36      37

Pool #928915,

      

6.00%, 11/1/37

      352      369

Pool #940623,

      

5.50%, 8/1/37

      1,133      1,171

Pool #943388,

      

6.00%, 6/1/37

      2,809      2,940

Pool #943617,

      

6.00%, 8/1/37

      2,121      2,220

Pool #945868,

      

5.50%, 8/1/37

      5,615      5,804

Pool #945876,

      

5.50%, 8/1/37

      1,067      1,103

Pool #946527,

      

7.00%, 9/1/37

      374      406

Pool #947216,

      

6.00%, 10/1/37

      740      775

Pool #949391,

      

5.50%, 8/1/22

      267      280

Pool #953018,

      

6.50%, 10/1/37

      3,449      3,678

Pool #953910,

      

6.00%, 11/1/37

      1,947      2,037

Pool #955771,

      

6.50%, 10/1/37

      4,986      5,317

Pool #959604,

      

6.50%, 11/1/37

      581      620

Pool #959880,

      

5.50%, 11/1/37

      2,280      2,357

 

NORTHERN FUNDS QUARTERLY REPORT    26    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Fannie Mae - 22.0% continued

      

Pool #962343,

      

5.00%, 3/1/38

    $ 4,932    $ 5,030

Pool #962687,

      

5.00%, 4/1/38

      2,646      2,698

Pool #963735,

      

4.50%, 6/1/23

      872      891

Pool #965389,

      

6.00%, 10/1/23

      936      993

Pool #966660,

      

6.00%, 12/1/37

      89      93

Pool #968037,

      

6.00%, 1/1/38

      2,182      2,284

Pool #970013,

      

4.50%, 6/1/38

      983      982

Pool #971734,

      

4.50%, 4/1/37

      868      867

Pool #972452,

      

5.50%, 3/1/38

      6,786      7,015

Pool #975365,

      

5.00%, 6/1/23

      807      837

Pool #976699,

      

5.00%, 4/1/28

      810      830

Pool #976963,

      

5.50%, 2/1/38

      13,113      13,586

Pool #981704,

      

5.00%, 6/1/23

      2,258      2,340

Pool #981823,

      

4.93%, 6/1/38

      966      1,003

Pool #981854,

      

5.50%, 7/1/38

      3,922      4,054

Pool #984075,

      

4.50%, 6/1/23

      1,762      1,801

Pool #986760,

      

5.50%, 7/1/38

      7,221      7,464

Pool #987114,

      

5.50%, 9/1/23

      216      227

Pool #987115,

      

5.50%, 9/1/23

      846      886

Pool #992472,

      

6.00%, 10/1/38

      1,037      1,085

Pool #992491,

      

4.50%, 10/1/23

      1,334      1,364

Pool #993055,

      

5.50%, 12/1/38

      1,646      1,702

Pool TBA,

      

4.00%, 7/15/24(4)

      2,400      2,400

4.50%, 7/15/24(4)

      4,900      4,998

5.00%, 7/15/24(4)

      3,000      3,104

5.50%, 7/15/24(4)

      2,500      2,616

4.00%, 8/15/24(4)

      1,300      1,296

4.00%, 7/1/39(4)

      5,400      5,235

5.00%, 7/1/39(4)

      16,500      16,799

 

 

6.00%, 7/1/39(4)

    3,200    3,344

4.50%, 7/15/39(4)

    12,700    12,672

5.50%, 7/15/39(4)

    5,100    5,264

6.50%, 7/15/39(4)

    3,500    3,727

7.00%, 7/15/39(4)

    2,600    2,821

4.00%, 8/15/39(4)

    1,800    1,793

4.50%, 8/15/39(4)

    4,200    4,175

5.00%, 8/15/39(4)

    2,000    2,028
       
      312,603
       

Federal Farm Credit Bank - 0.1%

      

5.25%, 9/13/10

    500    526

3.75%, 12/6/10

    500    520
       
      1,046
       

Federal Home Loan Bank - 1.7%

      

4.38%, 10/22/10

    3,000    3,138

4.63%, 2/18/11

    4,205    4,450

2.63%, 5/20/11

    5,000    5,097

5.38%, 8/19/11

    1,000    1,080

4.88%, 11/18/11

    500    539

1.88%, 6/20/12

    1,000    999

4.00%, 9/6/13

    5,000    5,260

5.38%, 5/18/16

    3,500    3,890
       
      24,453
       

Freddie Mac - 9.8%

      

4.13%, 7/12/10

    500    519

2.88%, 11/23/10

    2,000    2,057

2.75%, 4/11/11

    2,000    2,057

5.13%, 4/18/11

    1,000    1,069

1.63%, 4/26/11

    4,000    4,030

4.75%, 3/5/12

    1,800    1,943

2.13%, 3/23/12

    2,000    2,018

5.13%, 7/15/12

    5,125    5,615

5.50%, 8/20/12

    6,300    6,971

4.50%, 1/15/13

    3,300    3,556

3.75%, 6/28/13

    2,000    2,100

 

FIXED INCOME FUNDS    27    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Freddie Mac - 9.8% continued

      

4.50%, 1/15/14

    $ 7,000    $ 7,525

5.25%, 4/18/16

      500      554

5.13%, 10/18/16

      5,450      5,969

5.00%, 2/16/17

      500      544

4.88%, 6/13/18

      1,000      1,076

6.75%, 3/15/31

      1,700      2,108

1.75%, 6/15/12

      4,000      3,985

Pool #1B2125,

      

4.55%, 3/1/35

      839      868

Pool #1B2130,

      

4.28%, 3/1/35

      72      75

Pool #1B3264,

      

5.91%, 2/1/37

      703      740

Pool #1B7328,

      

5.83%, 4/1/37

      163      171

Pool #1B7359,

      

5.64%, 5/1/37

      171      179

Pool #1G0321,

      

4.84%, 9/1/35

      292      301

Pool #1G0809,

      

4.63%, 7/1/35

      11      11

Pool #1G0911,

      

5.41%, 4/1/36

      617      644

Pool #1G1506,

      

5.51%, 1/1/37

      150      158

Pool #1G1623,

      

5.70%, 4/1/37

      174      182

Pool #1G1763,

      

4.87%, 11/1/35

      100      103

Pool #1G1790,

      

5.38%, 11/1/35

      146      151

Pool #1G2620,

      

6.01%, 11/1/36

      126      132

Pool #1G2638,

      

6.22%, 9/1/36

      142      150

Pool #1G2675,

      

5.86%, 2/1/38

      881      920

Pool #1G3611,

      

5.99%, 4/1/37

      175      185

Pool #1H1348,

      

5.82%, 10/1/36

      131      136

Pool #1H2569,

      

5.21%, 9/1/35

      1,049      1,082

Pool #1H2605,

      

5.65%, 4/1/36

      763      788

Pool #1J0345,

      

5.68%, 3/1/37

      68      71

Pool #1J0355,

      

5.62%, 3/1/37

      48      50

Pool #1J0365,

      

5.90%, 4/1/37

      549      576

Pool #1J1317,

      

5.71%, 4/1/36

      6      6

Pool #1J1390,

      

5.88%, 12/1/36

      157      166

Pool #1J1634,

      

6.18%, 12/1/36

      857      910

Pool #1J1646,

      

5.25%, 4/1/37

      336      346

Pool #1L0078,

      

5.13%, 6/1/35

      126      127

Pool #1L0130,

      

4.72%, 7/1/35

      68      69

Pool #1L1214,

      

5.24%, 12/1/35

      4,345      4,491

Pool #1L1480,

      

4.42%, 12/1/33

      153      156

Pool #1N0243,

      

6.34%, 8/1/36

      58      61

Pool #1N1746,

      

6.10%, 9/1/37

      820      863

Pool #781274,

      

4.73%, 2/1/34

      68      70

Pool #782905,

      

4.88%, 12/1/34

      86      88

Pool #783081,

      

4.72%, 4/1/35

      4      4

Pool #847755,

      

5.54%, 5/1/37

      357      372

Pool #A61560,

      

5.50%, 10/1/36

      4,887      5,062

Pool TBA,

      

5.00%, 7/1/24(4)

      1,500      1,551

4.00%, 7/15/24(4)

      2,200      2,199

4.50%, 7/15/24(4)

      1,000      1,019

5.00%, 7/1/39(4)

      12,800      13,016

5.50%, 7/1/39(4)

      13,500      13,935

 

NORTHERN FUNDS QUARTERLY REPORT    28    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Freddie Mac - 9.8% continued

      

6.00%, 7/1/39(4)

    $ 9,500    $ 9,913

6.50%, 7/1/39(4)

      4,400      4,675

4.00%, 7/15/39(4)

      3,100      3,004

4.50%, 7/15/39(4)

      11,800      11,745

4.00%, 8/15/39(4)

      2,200      2,121

4.50%, 8/15/39(4)

      1,800      1,785
         
        139,123
         

Freddie Mac Gold - 7.5%

      

Pool #A16753,

      

5.00%, 11/1/33

      443      453

Pool #A17665,

      

5.00%, 1/1/34

      1,274      1,302

Pool #A27950,

      

5.50%, 11/1/34

      3,394      3,519

Pool #A31136,

      

5.50%, 1/1/35

      522      541

Pool #A39306,

      

5.50%, 11/1/35

      2,679      2,775

Pool #A46224,

      

5.00%, 7/1/35

      322      329

Pool #A48104,

      

5.00%, 1/1/36

      788      805

Pool #A51296,

      

6.00%, 8/1/36

      541      566

Pool #A54897,

      

6.50%, 8/1/36

      380      404

Pool #A56110,

      

5.50%, 12/1/36

      1,350      1,396

Pool #A58690,

      

6.00%, 3/1/37

      93      97

Pool #A58718,

      

5.50%, 3/1/37

      393      406

Pool #A59081,

      

5.50%, 4/1/37

      3,938      4,071

Pool #A60942,

      

5.00%, 5/1/37

      683      695

Pool #A61573,

      

5.00%, 9/1/34

      2,780      2,844

Pool #A61597,

      

5.50%, 12/1/35

      409      424

Pool #A64474,

      

5.50%, 9/1/37

      382      395

Pool #A68761,

      

5.50%, 9/1/37

      2,274      2,350

Pool #A69169,

      

4.50%, 12/1/37

      924      921

Pool #A69303,

      

6.00%, 11/1/37

      1,283      1,341

Pool #A73778,

      

5.00%, 2/1/38

      3,509      3,574

Pool #A81606,

      

6.00%, 9/1/38

      1,330      1,390

Pool #B10630,

      

4.50%, 11/1/18

      953      988

Pool #B17658,

      

4.50%, 1/1/20

      36      38

Pool #B18502,

      

5.50%, 6/1/20

      135      142

Pool #B18931,

      

4.50%, 3/1/20

      178      183

Pool #C91009,

      

5.00%, 11/1/26

      231      238

Pool #C91020,

      

5.50%, 3/1/27

      471      490

Pool #C91247,

      

5.00%, 4/1/29

      1,790      1,836

Pool #D97197,

      

5.00%, 2/1/27

      288      296

Pool #D97498,

      

6.00%, 12/1/27

      1,129      1,187

Pool #D97524,

      

5.50%, 1/1/28

      1,219      1,267

Pool #D97564,

      

5.00%, 1/1/28

      856      879

Pool #E99030,

      

4.50%, 9/1/18

      1,555      1,613

Pool #G01907,

      

4.50%, 8/1/34

      482      482

Pool #G01974,

      

5.00%, 12/1/35

      6,091      6,219

Pool #G02069,

      

5.50%, 3/1/36

      460      476

Pool #G02386,

      

6.00%, 11/1/36

      7,156      7,483

Pool #G02391,

      

6.00%, 11/1/36

      193      202

Pool #G02540,

      

5.00%, 11/1/34

      828      846

 

FIXED INCOME FUNDS    29    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Freddie Mac Gold - 7.5% continued

      

Pool #G02649,

      

6.00%, 1/1/37

    $ 401    $ 419

Pool #G02702,

      

6.50%, 1/1/37

      627      667

Pool #G02911,

      

6.00%, 4/1/37

      317      331

Pool #G02973,

      

6.00%, 6/1/37

      682      714

Pool #G03121,

      

5.00%, 6/1/36

      2,333      2,382

Pool #G03134,

      

5.50%, 8/1/36

      839      869

Pool #G03176,

      

5.00%, 8/1/37

      919      936

Pool #G03218,

      

6.00%, 9/1/37

      778      813

Pool #G03351,

      

6.00%, 9/1/37

      1,437      1,502

Pool #G03513,

      

6.00%, 11/1/37

      2,013      2,103

Pool #G03600,

      

7.00%, 11/1/37

      825      888

Pool #G03936,

      

5.50%, 1/1/38

      5,511      5,700

Pool #G03938,

      

6.00%, 2/1/38

      4,171      4,358

Pool #G04287,

      

5.00%, 5/1/38

      1,894      1,929

Pool #G04459,

      

5.50%, 6/1/38

      2,446      2,528

Pool #G04650,

      

6.50%, 9/1/38

      4,651      4,948

Pool #G08189,

      

7.00%, 3/1/37

      206      222

Pool #G08192,

      

5.50%, 4/1/37

      1,199      1,239

Pool #G11776,

      

4.50%, 9/1/20

      353      364

Pool #G12571,

      

4.00%, 1/1/22

      809      811

Pool #G12673,

      

5.00%, 9/1/21

      669      696

Pool #G12837,

      

4.50%, 4/1/22

      1,132      1,166

Pool #G12869,

      

5.00%, 9/1/22

      1,375      1,428

Pool #G13136,

      

4.50%, 5/1/23

      1,786      1,824

Pool #G13151,

      

6.00%, 3/1/23

      1,387      1,469

Pool #G13201,

      

4.50%, 7/1/23

      1,331      1,360

Pool #G18220,

      

6.00%, 11/1/22

      164      174

Pool #G30327,

      

4.50%, 1/1/27

      342      344

Pool #J00991,

      

4.00%, 1/1/21

      421      422

Pool #J02541,

      

4.00%, 9/1/20

      357      358

Pool #J03041,

      

6.00%, 7/1/21

      317      335

Pool #J03736,

      

5.50%, 11/1/21

      351      368

Pool #J05307,

      

4.50%, 8/1/22

      524      535

Pool #J06175,

      

5.00%, 5/1/21

      320      334

Pool #J06465,

      

6.00%, 11/1/22

      145      154

Pool #J06476,

      

5.50%, 11/1/22

      633      662

Pool #J08098,

      

5.50%, 6/1/23

      748      782

Pool #J08202,

      

5.00%, 7/1/23

      795      823

Pool #J08454,

      

5.00%, 8/1/23

      1,565      1,620

Pool #J08913,

      

5.50%, 10/1/23

      849      888

Pool #J09148,

      

5.00%, 12/1/23

      1,292      1,337
         
        106,265
         

Ginnie Mae I Pool - 2.9%

      

Pool #510835,

      

5.50%, 2/15/35

      367      381

Pool #597889,

      

5.50%, 6/15/33

      847      880

 

NORTHERN FUNDS QUARTERLY REPORT    30    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Ginnie Mae I Pool - 2.9% continued

      

Pool #614169,

      

5.00%, 7/15/33

    $ 378    $ 387

Pool #617739,

      

6.00%, 10/15/37

      263      274

Pool #634431,

      

6.00%, 9/15/34

      106      111

Pool #641416,

      

5.50%, 4/15/35

      459      476

Pool #646341,

      

6.00%, 11/15/36

      391      407

Pool #648538,

      

5.00%, 12/15/35

      618      633

Pool #651753,

      

5.50%, 3/15/36

      356      369

Pool #658560,

      

6.50%, 8/15/36

      1,233      1,310

Pool #661917,

      

7.00%, 4/15/37

      301      323

Pool #670114,

      

6.50%, 7/15/37

      410      436

Pool #675211,

      

6.50%, 3/15/38

      593      630

Pool #675484,

      

5.50%, 6/15/38

      1,693      1,751

Pool #676360,

      

6.50%, 10/15/37

      419      445

Pool #687824,

      

5.50%, 8/15/38

      1,994      2,063

Pool #687900,

      

5.00%, 9/15/38

      495      505

Pool #687901,

      

5.00%, 9/15/38

      1,910      1,952

Pool #688461,

      

6.00%, 5/15/38

      2,412      2,516

Pool #695635,

      

7.00%, 10/15/38

      544      584

Pool #699277,

      

6.00%, 9/15/38

      1,100      1,147

Pool #700972,

      

5.50%, 11/15/38

      874      904

Pool #701196,

      

6.00%, 10/15/38

      1,658      1,729

Pool #704185,

      

5.50%, 1/15/39

      1,745      1,805

Pool #781939,

      

6.00%, 7/15/34

      1,761      1,834

Pool #782131,

      

5.50%, 12/15/36

      881      911

Pool #782150,

      

5.50%, 4/15/37

      845      874

Pool #782259,

      

5.00%, 2/15/36

      941      961

Pool #782272,

      

5.50%, 2/15/38

      2,156      2,229

Pool #782498,

      

6.00%, 12/15/38

      1,300      1,353

Pool TBA,

      

4.50%, 7/15/39(4)

      4,100      4,092

5.00%, 7/15/39(4)

      5,100      5,199

4.50%, 8/15/39(4)

      2,700      2,684
         
        42,155
         

Ginnie Mae II Pool - 1.9%

      

Pool #3570,

      

6.00%, 6/20/34

      381      397

Pool #3665,

      

5.50%, 1/20/35

      1,174      1,211

Pool #3852,

      

6.00%, 5/20/36

      335      349

Pool #3910,

      

6.00%, 10/20/36

      638      664

Pool #3994,

      

5.00%, 6/20/37

      403      411

Pool #4018,

      

6.50%, 8/20/37

      287      304

Pool #4026,

      

5.00%, 9/20/37

      453      461

Pool #4027,

      

5.50%, 9/20/37

      379      391

Pool #4040,

      

6.50%, 10/20/37

      306      324

Pool #4098,

      

5.50%, 3/20/38

      1,803      1,860

Pool #4116,

      

6.50%, 4/20/38

      663      703

Pool #4170,

      

6.00%, 6/20/38

      1,521      1,586

Pool #4194,

      

5.50%, 7/20/38

      3,947      4,072

 

FIXED INCOME FUNDS    31    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 45.9% (5) continued

      

Ginnie Mae II Pool - 1.9% continued

      

Pool #4243,

      

5.00%, 9/20/38

    $ 969    $ 987

Pool #4245,

      

6.00%, 9/20/38

      763      795

Pool #4269,

      

6.50%, 10/20/38

      803      850

Pool #4344,

      

6.00%, 1/20/39

      1,316      1,372

Pool #4345,

      

6.50%, 1/20/39

      853      904

Pool #4425,

      

5.50%, 4/20/39

      1,477      1,524

Pool #654804,

      

6.00%, 5/20/36

      422      439

Pool #782433,

      

6.00%, 10/20/38

      2,505      2,610

Pool TBA,

      

4.50%, 7/15/39(4)

      2,200      2,190

5.00%, 7/15/39(4)

      2,600      2,643
         
        27,047
         

Tennessee Valley Authority - 0.0%

      

5.50%, 7/18/17

      600      654
         

Total U.S. Government Agencies

      
         

(Cost $635,828)

         653,346

U.S. GOVERNMENT OBLIGATIONS - 27.2%

      

U.S. Treasury Bonds - 4.4%

      

8.75%, 8/15/20

      1,450      2,077

7.88%, 2/15/21

      1,550      2,104

8.00%, 11/15/21

      2,125      2,932

7.13%, 2/15/23

      2,000      2,614

6.25%, 8/15/23

      11,550      14,069

7.63%, 2/15/25

      165      230

6.00%, 2/15/26

      6,750      8,141

5.38%, 2/15/31

      1,000      1,148

4.50%, 2/15/36

      475      489

4.75%, 2/15/37

      7,335      7,860

5.00%, 5/15/37

      4,575      5,091

4.38%, 2/15/38

      8,890      8,978

4.50%, 5/15/38

      1,700      1,755

3.50%, 2/15/39

      6,000      5,188
         
        62,676
         

U.S. Treasury Notes - 22.8%

      

1.38%, 4/15/12

      29,000      28,894

1.88%, 4/30/14

      15,000      14,556

4.50%, 5/15/10

      16,100      16,659

5.75%, 8/15/10

      1,000      1,058

2.38%, 8/31/10

      10,000      10,207

1.50%, 10/31/10

      15,000      15,166

4.50%, 11/15/10

      3,000      3,156

4.25%, 1/15/11

      3,000      3,155

0.88%, 1/31/11

      6,000      6,003

0.88%, 2/28/11

      25,000      24,983

4.50%, 2/28/11

      3,000      3,180

4.88%, 4/30/11

      5,750      6,147

4.63%, 8/31/11

      5,450      5,843

4.63%, 10/31/11

      1,750      1,884

1.75%, 11/15/11

      8,000      8,085

1.13%, 1/15/12

      7,000      6,955

4.63%, 2/29/12

      1,350      1,463

4.63%, 7/31/12

      6,850      7,457

4.13%, 8/31/12

      10,400      11,170

4.25%, 9/30/12

      2,250      2,428

3.38%, 11/30/12

      1,000      1,053

3.63%, 12/31/12

      3,500      3,711

2.88%, 1/31/13

      9,500      9,821

3.13%, 4/30/13

      4,000      4,156

3.38%, 7/31/13

      8,000      8,383

4.25%, 8/15/13

      425      460

3.13%, 8/31/13

      2,000      2,072

3.13%, 9/30/13

      9,700      10,035

2.75%, 10/31/13

      17,500      17,824

2.00%, 11/30/13

      4,700      4,631

1.75%, 3/31/14

      5,000      4,836

2.63%, 6/30/14

      10,500      10,533

4.25%, 8/15/14

      2,000      2,157

4.00%, 2/15/15

      2,000      2,125

4.50%, 11/15/15

      2,000      2,175

5.13%, 5/15/16

      3,000      3,365

4.63%, 11/15/16

      2,600      2,832

4.63%, 2/15/17

      2,500      2,720

4.50%, 5/15/17

      1,850      1,996

4.75%, 8/15/17

      2,400      2,631

4.25%, 11/15/17

      2,950      3,129

3.50%, 2/15/18

      6,250      6,281

3.88%, 5/15/18

      3,300      3,400

 

NORTHERN FUNDS QUARTERLY REPORT    32    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND    continued

 

    

PRINCIPAL

AMOUNT

    VALUE  
     (000S)    (000S)  

U.S. GOVERNMENT OBLIGATIONS - 27.2% continued

      

U.S. Treasury Notes - 22.8% continued

      

4.00%, 8/15/18

    $ 20,750    $ 21,523   

3.75%, 11/15/18

      2,300      2,340   

2.75%, 2/15/19

      13,000      12,175   
           
        324,813   
           

Total U.S. Government Obligations

      
           

(Cost $382,646)

         387,489   

MUNICIPAL BONDS - 0.1%

      

California - 0.0%

      

California State Various Purpose Taxable G.O. Unlimited Revenue Bonds, Build America Bonds,

      

7.55%, 4/1/39

      585      535   
           

Illinois - 0.1%

      

Chicago Transit Authority Revenue Bonds, Series A,

     

6.90%, 12/1/40

      300      317   

Illinois State Taxable Pension G.O. Unlimited Bonds,

     

5.10%, 6/1/33

      1,025      913   
           
        1,230   
           

Total Municipal Bonds

      
           

(Cost $1,877)

         1,765   

SHORT-TERM INVESTMENTS - 11.9%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

     

0.08%, 7/1/09

      168,735      168,735   
           

Total Short-Term Investments

      
           

(Cost $168,735)

         168,735   
           

Total Investments - 110.7%

      
           

(Cost $1,552,422)

         1,574,110   

Liabilities less Other Assets - (10.7)%

         (151,590 ) 
           

NET ASSETS - 100.0%

       $ 1,422,520   

 

(1) Issuer has defaulted on terms of debt obligation.
(2) Restricted security that has been deemed illiquid. At June 30, 2009, the value of these restricted illiquid securities amounted to approximately $1,716,000 or 0.1% of net assets. Additional information on each restricted illiquid security is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		    ACQUISITION
COST
(000S)

American International Group, Inc.,

      

8.25%, 8/15/18

    8/13/08    $ 150

News America Inc.,

      

6.90%, 3/1/19

    2/10/09      300

Verizon Wireless LLC,

      

8.50 %, 11/15/18

    1/23/09 - 3/13/09      1,258
           

 

(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.
(4) When-Issued Security.
(5) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,552,422   
        

Gross tax appreciation of investments

    $ 35,859   

Gross tax depreciation of investments

      (14,171 ) 
        

Net tax appreciation of investments

    $ 21,688   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Bond Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Asset-Backed Securities

            

Automobile

    $ —      $ 2,516    $ —      $ 2,516

Commercial Mortgage Services

      —        45,579      —        45,579

 

FIXED INCOME FUNDS    33    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

INVESTMENTS

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

Credit Card

    $ —      $ 3,215      $ 1,007    $ 4,222

Home Equity

      —        172        —        172

Other

      —        619        —        619

Regional

      —        109        —        109

Utilities

      —        102        —        102

Corporate Bonds

           

Aerospace/Defense

      —        3,410        —        3,410

Agriculture

      —        3,581        —        3,581

Apparel

      —        28        —        28

Auto Manufacturers

      —        1,126        —        1,126

Auto Parts & Equipment

      —        76        —        76

Banks

      —        55,537        107      55,644

Beverages

      —        4,410        —        4,410

Biotechnology

      —        951        —        951

Building Materials

      —        184        —        184

Chemicals

      —        3,507        —        3,507

Commercial Services

      —        420        47      467

Computers

      —        4,079        —        4,079

Cosmetics/Personal Care

      —        1,607        —        1,607

Credit Card

      —        496        —        496

Diversified Financial Services

      —        31,002        —        31,002

Electric

      —        21,806        —        21,806

Electrical Components & Equipment

      —        567        —        567

Environmental Control

      —        983        —        983

Food

      —        6,229        —        6,229

Forest Products & Paper

      —        711        —        711

Gas

      —        759        —        759

Healthcare - Products

      —        1,300        —        1,300

Healthcare - Services

      —        2,275        —        2,275

Home Furnishings

      —        237        —        237

Household Products/Wares

      —        1,167        —        1,167

Insurance

      —        7,468        88      7,556

Iron/Steel

      —        154        —        154

Lodging

      —        197        —        197

Machinery - Construction & Mining

      —        125        —        125

Machinery - Diversified

      —        319        —        319

Media

      —        10,776        312      11,088

Mining

      —        1,397        —        1,397

Miscellaneous Manufacturing

      —        3,292        —        3,292

Office/Business Equipment

      —        570        —        570

Oil & Gas

      —        6,988        —        6,988

Oil & Gas Services

      —        454        —        454

Pharmaceuticals

      —        10,396        —        10,396

Pipelines

      —        6,022        —        6,022

Real Estate

      —        20        —        20

Real Estate Investment Trusts

      —        1,432        —        1,432

Retail

      —        8,566        —        8,566

Savings & Loans

      —        76        —        76

Software

      —        1,851        229      2,080

Telecommunications

      —        14,784        1,315      16,099

Transportation

      —        3,284        —        3,284

Water

      —        66        —        66

Foreign Issuer Bonds

           

Banks

      —        17,037        —        17,037

Beverages

      —        1,199        —        1,199

Building Materials

      —        46        —        46

Chemicals

      —        357        —        357

Diversified Financial Services

      —        3,214        —        3,214

Electric

      —        1,185        —        1,185

Electronics

      —        446        —        446

Healthcare - Products

      —        347        —        347

Holding Companies - Diversified

      —        106        —        106

Insurance

      —        223        —        223

Iron/Steel

      —        707        —        707

Media

      —        384        —        384

Mining

      —        3,750        —        3,750

Miscellaneous Manufacturing

      —        815        —        815

Multi-National

      —        12,615        195      12,810

Oil & Gas

      —        5,070        —        5,070

Oil & Gas Services

      —        423        —        423

Pharmaceuticals

      —        1,896        —        1,896

Pipelines

      —        1,314        —        1,314

Regional

      —        4,574        —        4,574

Sovereign

      —        16,991        —        16,991

Telecommunications

      —        9,120        —        9,120

Transportation

      —        659        —        659

U.S. Government Agencies

           

Fannie Mae

      —        304,354        8,249      312,603

Freddie Mac

      —        133,998        5,125      139,123

Other U.S. Government Agencies

      —        201,620 (1)      —        201,620

U.S. Government Obligations

      —        387,489 (1)      —        387,489

Municipal Bonds

      —        1,765 (1)      —        1,765

Short-Term Investments

      —        168,735        —        168,735
                            

Total Investments

    $ —      $ 1,557,436      $ 16,674    $ 1,574,110
                            

 

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

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

 

     INVESTMENTS
IN SECURITIES
(000S)		     OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 3/31/09

    $ 6,180      $ —  

Realized gain (loss)

      —          —  

Change in unrealized appreciation/depreciation

      (4,065 )      —  

Net Purchases (Sales)

      14,559        —  

Transfers in and/or out of Level 3

      —          —  
              

Balance as of 6/30/09

    $ 16,674      $ —  

 

* Other financial instruments include futures and forwards, if applicable.

The amount of change in unrealized gain on investments in level 3 securities still held at June 30, 2009 was approximately $177,000.

 

NORTHERN FUNDS QUARTERLY REPORT    34    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

FIXED INCOME FUND    JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

CORPORATE BONDS - 29.5%

      

Aerospace/Defense - 0.4%

      

BAE Systems Holdings, Inc.,

      

6.38%, 6/1/19(1) (2)

    $ 3,270    $ 3,343
         

Agriculture - 1.3%

      

Altria Group, Inc.,

      

9.95%, 11/10/38

      4,635      5,350

Bunge Ltd. Finance Corp.,

      

8.50%, 6/15/19

      1,535      1,605

Lorillard Tobacco Co.,

      

8.13%, 6/23/19

      5,235      5,417
         
        12,372
         

Banks - 6.9%

      

Bank of America Corp.,

      

6.00%, 9/1/17

      3,555      3,232

8.00%, 12/24/49

      1,185      990

Capital One Financial Corp.,

      

7.38%, 5/23/14

      2,345      2,418

Citigroup, Inc.,

      

5.63%, 8/27/12

      4,995      4,677

6.00%, 8/15/17

      3,530      3,077

Goldman Sachs Group (The), Inc.,

      

5.95%, 1/18/18

      12,750      12,367

JPMorgan Chase & Co.,

      

2.13%, 12/26/12(3)

     9,046      9,000

6.30%, 4/23/19

      5,040      5,069

JPMorgan Chase Bank N.A.,

      

6.00%, 10/1/17

      5,325      5,183

Morgan Stanley,

      

2.00%, 9/22/11(3)

      10,781      10,915

6.00%, 5/13/14

      6,055      6,131

SunTrust Bank,

      

0.86%, 5/21/12

      5,600      4,973
         
        68,032
         

Beverages - 0.3%

      

Miller Brewing Co.,

      

5.50%, 8/15/13(1) (2)

      3,160      3,124
         

Biotechnology - 0.3%

      

Amgen, Inc.,

      

6.40%, 2/1/39

      2,790      2,968
         

Chemicals - 0.6%

      

Dow Chemical (The) Co.,

      

8.55%, 5/15/19

      2,835      2,840

9.40%, 5/15/39

      2,620      2,697
         
        5,537
         

Commercial Services - 0.2%

      

Erac USA Finance Co.,

      

7.00%, 10/15/37(1) (2)

      2,595      2,064
         

Computers - 0.4%

      

Hewlett-Packard Co.,

      

2.25%, 5/27/11

      3,720      3,731
         

Diversified Financial Services - 4.0%

      

Bear Stearns (The) Cos., Inc.,

      

5.70%, 11/15/14

      2,840      2,894

Capital One Bank USA NA,

      

8.80%, 7/15/19

      5,155      5,266

CIT Group, Inc.,

      

0.97%, 8/17/09

      2,650      2,575

4.25%, 2/1/10

      5,525      4,960

Countrywide Home Loans, Inc.,

      

4.00%, 3/22/11

      3,995      3,943

General Electric Capital Corp.,

      

2.13%, 12/21/12(3)

     7,227      7,177

5.88%, 1/14/38

      2,670      2,113

International Lease Finance Corp.,

      

5.75%, 6/15/11

      3,345      2,774

John Deere Capital Corp.,

      

5.25%, 10/1/12

      4,965      5,245

Merrill Lynch & Co., Inc.,

      

6.15%, 4/25/13

      1,145      1,147

Power Receivable Finance LLC,

      

6.29%, 1/1/12(1) (2)

      756      745
         
        38,839
         

Electric - 2.0%

      

Ameren Corp.,

      

8.88%, 5/15/14

      2,482      2,562

Florida Power Corp.,

      

6.40%, 6/15/38

      4,735      5,265

Nevada Power Co.,

      

6.50%, 8/1/18

      4,590      4,693

PPL Electric Utilities Corp.,

      

6.25%, 5/15/39

      2,620      2,762

Progress Energy, Inc.,

      

7.05%, 3/15/19

      3,745      4,155
         
        19,437
         

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

FIXED INCOME FUND    continued  

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

CORPORATE BONDS - 29.5% continued

      

Household Products/Wares - 0.2%

      

Fortune Brands, Inc.,

      

6.38%, 6/15/14

    $ 2,375    $ 2,361
         

Insurance - 1.5%

      

Liberty Mutual Group, Inc.,

      

5.75%, 3/5/14(1) (2)

      740      586

Metropolitan Life Global Funding I,

      

5.13%, 6/10/14(1) (2)

      2,915      2,892

Pricoa Global Funding I,

      

4.20%, 1/15/10(1) (2)

      6,000      5,879

5.45%, 6/11/14(1) (2)

      5,735      5,725
         
        15,082
         

Media - 1.8%

      

Comcast Corp.,

      

6.55%, 7/1/39

      2,130      2,126

News America, Inc.,

      

6.90%, 3/1/19(1) (2)

      3,220      3,355

Time Warner Cable, Inc.,

      

8.25%, 4/1/19

      5,285      5,997

Viacom, Inc.,

      

5.75%, 4/30/11

      5,655      5,790
         
        17,268
         

Metal Fabrication/Hardware - 0.5%

      

Commercial Metals Co.,

      

7.35%, 8/15/18

      4,845      4,410
         

Office/Business Equipment - 0.4%

      

Xerox Corp.,

      

5.50%, 5/15/12

      3,975      3,964
         

Oil & Gas - 2.1%

      

Anadarko Petroleum Corp.,

      

8.70%, 3/15/19

      5,075      5,685

6.45%, 9/15/36

      2,615      2,351

ConocoPhillips,

      

4.60%, 1/15/15

      3,075      3,160

Premcor Refining Group (The), Inc.,

      

6.75%, 5/1/14

      7,385      7,313

XTO Energy, Inc.,

      

4.63%, 6/15/13

      2,270      2,278
         
        20,787
         

Oil & Gas Services - 0.3%

      

Smith International, Inc.,

      

9.75%, 3/15/19

      2,525      2,917
         

Pharmaceuticals - 2.3%

      

Eli Lilly & Co.,

      

3.55%, 3/6/12

      4,885      5,061

Express Scripts, Inc.,

      

5.25%, 6/15/12

      2,515      2,598

Merck & Co., Inc.,

      

5.85%, 6/30/39

      1,600      1,644

Pfizer, Inc.,

      

4.45%, 3/15/12

      4,905      5,146

7.20%, 3/15/39

      6,665      7,914
         
        22,363
         

Pipelines - 0.3%

      

Enterprise Products Operating LLC,

      

4.60%, 8/1/12

      3,295      3,318
         

Real Estate Investment Trusts - 0.0%

      

iStar Financial, Inc.,

      

10.00%, 6/15/14(1) (2)

      402      298
         

Retail - 0.4%

      

CVS Caremark Corp.,

      

6.60%, 3/15/19

      3,745      4,002
         

Software - 0.2%

      

Oracle Corp.,

      

3.75%, 7/8/14(4)

      2,290      2,295
         

Telecommunications - 3.1%

      

AT&T, Inc.,

      

6.55%, 2/15/39

      2,680      2,675

Verizon Communications, Inc.,

      

7.35%, 4/1/39

      7,720      8,412

Verizon Wireless Capital LLC,

      

3.75%, 5/20/11(1) (2)

      8,720      8,899

5.55%, 2/1/14(1) (2)

      2,570      2,728

8.50%, 11/15/18(1) (2)

      6,275      7,499
         
        30,213
         

Total Corporate Bonds

      
         

(Cost $280,361)

         288,725

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

FOREIGN ISSUER BONDS - 5.1%

      

Banks - 1.5%

      

Barclays Bank PLC,

      

6.75%, 5/22/19

    $ 5,040    $ 4,999

Credit Suisse New York,

      

3.45%, 7/2/12

      6,940      6,943

5.50%, 5/1/14

      2,315      2,405
         
        14,347
         

Insurance - 0.9%

      

Allied World Assurance Holdings Ltd. of Bermuda,

      

7.50%, 8/1/16

      2,620      2,219

Catlin Insurance Co. Ltd.,

      

7.25%, 1/19/17(1) (2)

      5,600      3,136

XL Capital Ltd.,

      

6.50%, 4/15/17

      7,200      3,528
         
        8,883
         

Iron/Steel - 0.6%

      

ArcelorMittal,

      

5.38%, 6/1/13

      6,435      6,163
         

Media - 0.3%

      

Thomson Reuters Corp.,

      

5.95%, 7/15/13

      3,025      3,095
         

Mining - 0.3%

      

Anglo American Capital PLC,

      

9.38%, 4/8/14(1) (2)

      2,950      3,204
         

Oil & Gas - 1.1%

      

Nexen, Inc.,

      

6.40%, 5/15/37

      5,060      4,647

Talisman Energy, Inc.,

      

7.75%, 6/1/19

      5,070      5,617
         
        10,264
         

Telecommunications - 0.4%

      

Nokia OYJ,

      

5.38%, 5/15/19

      4,000      4,047
         

Total Foreign Issuer Bonds

      
         

(Cost $54,667)

         50,003

U.S. GOVERNMENT AGENCIES - 48.9% (5)

      

Fannie Mae - 33.7%

      

2.13%, 4/15/11

      8,845      8,927

2.25%, 4/9/12

      10,725      10,781

3.38%, 3/10/14

      13,979      13,997

Pool #255452,

      

5.50%, 10/1/19

      4,933      5,199

Pool #257314,

      

5.00%, 8/1/23

      6,304      6,533

Pool #535714,

      

7.50%, 1/1/31

      164      179

Pool #545003,

      

8.00%, 5/1/31

      9      10

Pool #545437,

      

7.00%, 2/1/32

      333      365

Pool #545556,

      

7.00%, 4/1/32

      223      244

Pool #555189,

      

7.00%, 12/1/32

      1,180      1,292

Pool #581806,

      

7.00%, 7/1/31

      531      581

Pool #695066,

      

5.50%, 4/1/33

      7,078      7,345

Pool #725424,

      

5.50%, 4/1/34

      16,640      17,266

Pool #725787,

      

5.00%, 9/1/19

      11,825      12,346

Pool #735893,

      

5.00%, 10/1/35

      20,491      20,935

Pool #796457,

      

6.00%, 9/1/34

      8,390      8,823

Pool #797773,

      

5.00%, 3/1/20

      1,327      1,383

Pool #829125,

      

5.50%, 10/1/35

      13,037      13,508

Pool #831810,

      

6.00%, 9/1/36

      14,685      15,382

Pool #845182,

      

5.50%, 11/1/35

      12,310      12,754

Pool #869217,

      

5.46%, 2/1/36

      8,865      9,255

Pool #871232,

      

6.00%, 4/1/36

      9,558      10,012

Pool #889266,

      

4.50%, 3/1/23

      4,516      4,615

Pool #890001,

      

5.00%, 2/1/38

      12,225      12,490

Pool #890009,

      

5.50%, 9/1/36

      13,938      14,463

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

FIXED INCOME FUND    continued  

 

    

PRINCIPAL

AMOUNT

    VALUE
     (000S)    (000S)

U.S. GOVERNMENT AGENCIES - 48.9% (5) continued

      

Fannie Mae - 33.7% continued

      

Pool #893082,

      

5.82%, 9/1/36

    $ 6,442    $ 6,712

Pool #919638,

      

5.50%, 9/1/37

      11,149      11,525

Pool #934476,

      

4.50%, 3/1/23

      6,863      7,014

Pool #946869,

      

6.00%, 9/1/37

      4,576      4,789

Pool #955782,

      

6.50%, 10/1/37

      2,292      2,444

Pool #968158,

      

6.50%, 1/1/38

      5,449      5,811

Pool #968160,

      

6.50%, 1/1/38

      2,371      2,529

Pool #991529,

      

6.00%, 11/1/38

      12,457      13,034

Pool #992238,

      

6.00%, 11/1/38

      3,935      4,117

Pool #995018,

      

5.50%, 6/1/38

      43,579      45,076

Pool #AA4434,

      

5.00%, 3/1/39

      11,563      11,791

Pool TBA,

      

6.50%, 7/15/39(4)

      6,400      6,816
         
        330,343
         

Federal Home Loan Bank - 0.5%

      

1.63%, 7/27/11

      5,038      5,066
         

Freddie Mac - 4.9%

      

1.75%, 7/27/11

      7,993      8,013

1.75%, 6/15/12

      8,977      8,945

Pool #1B3575,

      

6.06%, 9/1/37

      6,811      7,117

Pool #1G2296,

      

6.17%, 11/1/37

      10,222      10,699

Pool #1J0365,

      

5.91%, 4/1/37

      7,073      7,431

Pool #1J2840,

      

5.95%, 9/1/37

      5,026      5,294
         
        47,499
         

Freddie Mac Gold - 8.6%

      

Pool #A61560,

      

5.50%, 10/1/36

      13,530      14,013

Pool #A62213,

      

6.00%, 6/1/37

      10,811      11,296

Pool #A65182,

      

6.50%, 9/1/37

      13,876      14,763

Pool #C00910,

      

7.50%, 1/1/30

      518      561

Pool #C02790,

      

6.50%, 4/1/37

      7,669      8,159

Pool #C02838,

      

5.50%, 5/1/37

      10,572      10,928

Pool #G01954,

      

5.00%, 11/1/35

      9,926      10,135

Pool #G02869,

      

5.00%, 11/1/35

      13,978      14,272
         
        84,127
         

Ginnie Mae I Pool - 0.3%

      

Pool #627123,

      

5.50%, 3/15/34

      3,124      3,241
         

Government National Mortgage Association - 0.9%

      

Series 2008, Class 14AC,

      

4.46%, 12/16/30

      4,321      4,400

Series 2008, Class 8A,

      

3.61%, 11/16/27

      4,733      4,801
         
        9,201
         

Total U.S. Government Agencies

      
         

(Cost $466,249)

         479,477

U.S. GOVERNMENT OBLIGATIONS - 10.8%

      

U.S. Treasury Bonds - 0.8%

      

3.50%, 2/15/39

      9,807      8,480
         

U.S. Treasury Notes - 10.0%

      

1.13%, 6/30/11

      735      735

2.63%, 6/30/14

      46,035      46,179

3.25%, 6/30/16

      25,451      25,531

3.13%, 5/15/19

      26,240      25,379
         
        97,824
         

Total U.S. Government Obligations

      
         

(Cost $104,851)

         106,304

 

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

  JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

MUNICIPAL BONDS - 0.2%

      

Illinois - 0.2%

      

Metropolitan Transportation Authority,

      

7.34%, 11/15/39

    $ 1,695    $ 2,015   
           

Total Municipal Bonds

      
           

(Cost $1,695)

         2,015   
     NUMBER
OF
WARRANTS		    VALUE
(000S)		  

WARRANTS - 0.0%

      

Leap Wireless International, Exp.

      

4/15/10, Strike $96.80(2) (6) *

      500    $ —     
           

Total Warrants

      
           

(Cost $5)

         —     
     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 6.1%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 57,342    $ 57,342   

U.S. Treasury Bill,

      

0.48%, 8/20/09(7)

      2,500      2,498   
           

Total Short-Term Investments

      
           

(Cost $59,840)

         59,840   
           

Total Investments - 100.6%

      
           

(Cost $967,668)

         986,364   

Liabilities less Other Assets - (0.6)%

         (6,027 ) 
           

NET ASSETS - 100.0%

       $ 980,337   

 

(1) Restricted security that has been deemed illiquid. At June 30, 2009, the value of these restricted illiquid securities amounted to approximately $53,478,000 or 5.5% of net assets. Additional information on each restricted illiquid security is as follows:

 

SECURITY

    ACQUISITION
AND
ENFORCEABLE
DATE		    ACQUISITION
COST
(000S)

Anglo American Capital PLC.,

      

9.38%, 4/18/14

    4/2/09    $ 2,950

BAE Systems Holdings, Inc.,

      

6.38%, 6/1/19

    6/1/09      3,259

Catlin Insurance Co Ltd.,

      

7.25%, 1/19/17

    1/11/07-6/27/07      5,516

Erac USA Finance Co.,

      

7.00% 10/15/37

    10/10/07      2,573

iStar Financial, Inc.,

      

10.00%, 6/15/14

    4/26/06      785

Liberty Mutual Group, Inc.,

      

5.75% 3/15/14

    6/16/09      570

Metropolitan Life Global Funding I,

      

5.13%, 6/10/14

    6/3/09      2,900

Miller Brewing Co.,

      

5.50%, 8/15/13

    3/6/09      3,021

News America Inc.,

      

6.90%, 3/1/19

    6/17/09      3,337

Power Receivable Finance LLC,

      

6.29%, 1/1/12

    9/30/03      756

Pricoa Global Funding I,

      

4.20%, 1/15/10

    3/12/09-3/13/09      5,550

Pricoa Global Funding I,

      

5.45%, 6/11/14

    6/4/09      5,723

Verizon Wireless Capital LLC,

      

3.75, 5/20/11

    5/19/09      8,713

Verizon Wireless Capital LLC,

      

8.50%, 11/15/18

    11/18/08      6,208

Verizon Wireless Capital LLC,

      

5.55 %, 2/1/14

    1/30/09      2,553
           

 

(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.
(3) Securities are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) under its Temporary Liquidity Guarantee Program (“TLGP”). Under this program, the FDIC guarantees with the full faith and credit of the U.S. government the payment of principal and interest. The expiration of the FDIC’s guarantee is the earlier of the maturity of the debt or June 30, 2012.
(4) When-Issued Security.
(5) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(6) Security has been deemed worthless by the NTGI Valuation Committee.
(7) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

 

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

FIXED INCOME FUND    continued    JUNE 30, 2009 (UNAUDITED)

 

At June 30, 2009, the Fixed Income Fund had open futures contracts as follows:

 

TYPE

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

Ten Year

               

U.S. Treasury

               

Note

    248    $ 28,834    Long    9/09    $ (686 ) 
                              

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 967,668   
        

Gross tax appreciation of investments

    $ 27,608   

Gross tax depreciation of investments

      (8,912 ) 
        

Net tax appreciation of investments

    $ 18,696   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1- Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Fixed Income Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

    Level 1
(000S)		     Level 2
(000S)		     Level 3
(000S)		    Total
(000S)

Corporate Bonds

          

Aerospace/Defense

    $ —        $ —        $ 3,343    $ 3,343

Agriculture

      —          12,372        —        12,372

Banks

      —          68,032        —        68,032

Beverages

      —          —          3,124      3,124

Biotechnology

      —          2,968        —        2,968

Chemicals

      —          5,537        —        5,537

Commercial Services

      —          —          2,064      2,064

Computers

      —          3,731        —        3,731

Diversified Financial Services

      —          38,094        745      38,839

Electric

      —          19,437        —        19,437

Household Products/Wares

      —          2,361        —        2,361

Insurance

      —          —          15,082      15,082

Media

      —          13,912        3,356      17,268

Metal Fabrification/Hardware

      —          4,410        —        4,410

Office/Business Equipment

      —          3,964        —        3,964

Oil & Gas

      —          20,787        —        20,787

Oil & Gas Services

      —          2,917        —        2,917

Pharmaceuticals

      —          22,363        —        22,363

Pipelines

      —          3,318        —        3,318

Real Estate Investment Trusts

      —          —          298      298

Retail

      —          4,002        —        4,002

Software

      —          —          2,295      2,295

Telecommunications

      —          11,087        19,126      30,213

Foreign Issuer Bonds

          

Banks

      —          14,347        —        14,347

Insurance

      —          5,747        3,136      8,883

Iron/Steel

      —          6,163        —        6,163

Media

      —          3,095        —        3,095

Mining

      —          —          3,204      3,204

Oil & Gas

      —          10,264        —        10,264

Telecommunications

      —          4,047        —        4,047

U.S. Government Agencies

      —          479,477 (1)      —        479,477

U.S. Government Obligations

      —          106,304 (1)      —        106,304

Municipal Bonds

      —          2,015 (1)      —        2,015

Short-Term Investments

      —          59,840        —        59,840
                             

Total Investments

    $ —        $ 930,591      $ 55,773    $ 986,364
                             

Other Financial Instruments *

    $ (686 )    $ —        $ —      $ —  
                             

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

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

 

     INVESTMENTS
IN SECURITIES
(000S)		    OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 3/31/09

    $ 30,479    $ —  

Realized gain (loss)

      129      —  

Change in unrealized appreciation/depreciation

      795      —  

Net Purchases (Sales)

      24,370      —  

Transfers in and/or out of Level 3

      —        —  
             

Balance as of 06/30/09

    $ 55,773    $ —  

 

* Other financial instruments include futures and forwards, if applicable.

The amount of change in unrealized gain in investments in level 3 securities still held at June 30, 2009 was approximately $3,168,000.

 

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

GLOBAL FIXED INCOME FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S) (1)		    VALUE
(000S)

DEBT OBLIGATIONS - 97.1%

      

British Pound Sterling - 6.8%

      

Treasury of Great Britain,

      

4.50%, 3/7/13

    600    $ 1,047

8.00%, 9/27/13

    145      287

5.00%, 9/7/14

    375      680

5.00%, 3/7/18

    470      871

5.00%, 3/7/25

    419      752

4.75%, 12/7/30

    150      260

4.25%, 3/7/36

    450      722

4.75%, 12/7/38

    220      383
         
        5,002
         

Canadian Dollar - 2.3%

      

Government of Canada,

      

4.25%, 12/1/09

    280      245

5.00%, 6/1/14

    1,230      1,180

8.00%, 6/1/23

    190      238
         
        1,663
         

Euro - 37.0%

      

Buoni Poliennali Del Tesoro,

      

5.25%, 11/1/29

    90      128

Deutschland Bundesrepublik,

      

4.25%, 7/4/17

    750      1,129

4.00%, 1/4/18

    600      889

3.50%, 7/4/19

    240      340

6.25%, 1/4/24

    285      499

5.63%, 1/4/28

    200      329

5.50%, 1/4/31

    95      155

Government of Austria,

      

4.00%, 7/15/09

    130      183

5.25%, 1/4/11

    315      468

5.00%, 7/15/12(2)

    1,180      1,787

Government of Belgium,

      

5.00%, 9/28/11

    400      602

5.00%, 9/28/12

    360      548

4.25%, 9/28/14

    502      746

Government of France BTAN,

      

1.50%, 9/12/11

    3,749      5,252

Government of France O.A.T.,

      

5.50%, 4/25/10

    120      175

4.00%, 10/25/13

    750      1,115

3.50%, 4/25/15

    230      332

3.00%, 10/25/15

    1,106      1,546

5.00%, 10/25/16

    385      600

5.50%, 4/25/29

    2,000      3,227

4.00%, 10/25/38

    1,000      1,323

Government of Ireland,

      

5.00%, 4/18/13

    100      147

4.60%, 4/18/16

    1,277      1,776

4.50%, 10/18/18

    245      322

Government of Netherlands,

      

4.25%, 7/15/13

    1,527      2,286

3.75%, 7/15/14

    380      556

Government of Spain,

      

3.25%, 7/30/10

    188      270

Portugal Obrigacoes do Tesouro OT,

      

5.15%, 6/15/11

    300      449
         
        27,179
         

Japanese Yen - 23.0%

      

Government of Japan Ten Year Bonds,

      

1.40%, 9/20/11

    102,000      1,084

1.50%, 3/20/12

    120,000      1,283

1.30%, 6/20/12

    163,000      1,736

1.30%, 3/20/15

    90,000      959

1.50%, 3/20/15

    57,000      614

1.50%, 9/20/15

    272,300      2,937

1.50%, 12/20/17

    220,000      2,343

1.30%, 12/20/18

    40,000      415

Government of Japan Thirty Year Bonds,

      

2.50%, 9/20/37

    41,000      453

Government of Japan Twenty Year Bonds,

      

1.90%, 3/22/21

    180,000      1,942

1.80%, 6/20/23

    50,000      525

2.10%, 12/20/27

    172,000      1,810

1.90%, 12/20/28

    80,000      811
         
        16,912
         

United States Dollar - 28.0%

      

Freddie Mac,

      

5.13%, 7/15/12

    750      822

U.S. Treasury Bonds,

      

8.75%, 5/15/17

    300      411

8.50%, 2/15/20

    250      351

7.13%, 2/15/23

    561      733

6.25%, 8/15/23

    600      731

6.63%, 2/15/27

    350      451

6.38%, 8/15/27

    140      177

6.13%, 8/15/29

    50      62

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

GLOBAL FIXED INCOME FUND    continued  

 

     PRINCIPAL
AMOUNT
(000S) (1)		    VALUE
(000S)

DEBT OBLIGATIONS - 97.1% continued

      

United States Dollar - 28.0% continued

      

5.38%, 2/15/31

    40    $ 46

4.50%, 2/15/36

    265      273

4.25%, 5/15/39

    500      495

U.S. Treasury Notes,

      

4.75%, 3/31/11

    585      623

0.88%, 5/31/11

    2,100      2,092

1.13%, 12/15/11

    1,360      1,353

2.88%, 1/31/13

    1,150      1,189

2.75%, 2/28/13

    1,024      1,053

3.13%, 9/30/13

    1,800      1,862

4.25%, 11/15/13

    234      253

2.00%, 11/30/13

    2,000      1,971

4.13%, 5/15/15

    650      693

5.13%, 5/15/16

    1,191      1,336

4.88%, 8/15/16

    1,500      1,658

4.25%, 11/15/17

    822      872

3.50%, 2/15/18

    550      553

3.75%, 11/15/18

    500      509
         
        20,569
         

Total Debt Obligations

      
         

(Cost $68,400)

         71,325

SHORT-TERM INVESTMENTS - 1.2%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    848      848
         

Total Short-Term Investments

      
         

(Cost $848)

         848
         

Total Investments - 98.3%

      
         

(Cost $69,248)

         72,173

Other Assets less Liabilities - 1.7%

         1,281
         

NET ASSETS - 100.0%

       $ 73,454

 

(1) Principal amounts stated in local currencies.
(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.

Percentages shown are based on Net Assets.

At June 30, 2009, the credit quality distribution (unaudited) for the Global Fixed Income Fund as a percentage of investments including cash was:

 

QUALITY DISTRIBUTION*

    %  

U.S. Government

    27.2 % 

Other Government

    71.6   

AAA

    1.2   
      

Total

    100.0 % 
      

 

* Standard & Poor’s Rating Services.

At June 30, 2009, the Global Fixed Income Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS

TO DELIVER

CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    IN EXCHANGE
FOR CURRENCY		    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

Australian Dollar

    2,762    U.S. Dollar    2,131    7/17/09    $ (91 ) 

British Pound

    2,554    U.S. Dollar    4,049    7/17/09      (153 ) 

Canadian Dollar

    212    U.S. Dollar    188    7/17/09      6   

Euro

    2,730    U.S. Dollar    3,797    7/17/09      (33 ) 

Euro

    239    U.S. Dollar    339    7/17/09      4   

Euro

    500    U.S. Dollar    710    7/17/09      9   

Japanese Yen

    252,871    U.S. Dollar    2,578    7/17/09      (48 ) 

U.S. Dollar

    2,500    Australian Dollar    3,195    7/17/09      71   

U.S. Dollar

    603    Danish Krone    3,228    7/17/09      5   

U.S. Dollar

    1,208    Euro    857    7/17/09      (5 ) 

U.S. Dollar

    2,647    British Pound    1,656    7/17/09      77   

U.S. Dollar

    790    British Pound    480    7/17/09      —     

U.S. Dollar

    8,484    Japanese Yen    803,320    7/17/09      (143 ) 

U.S. Dollar

    1,030    Japanese Yen    98,797    7/17/09      (4 ) 

U.S. Dollar

    512    Swedish Krona    3,906    7/17/09      (6 ) 
                    

Total

                $ (311 ) 
                    

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 69,248   
        

Gross tax appreciation of investments

    $ 4,039   

Gross tax depreciation of investments

      (1,114 ) 
        

Net tax appreciation of investments

    $ 2,925   
        

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Global Fixed Income Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Japanese Yen

    $ —      $ —      $ 16,912      $ 16,912   

All Other Debt Obligations

      —        54,413      —          54,413   

Short-Term Investments

      —        848      —          848   
                              

Total Investments

    $ —      $ 55,261    $ 16,912      $ 72,173   
                              

Other Financial Instruments*

    $ —      $ —      $ (311 )    $ (311 ) 
                              

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

 

     INVESTMENTS
IN SECURITIES
(000S)		     OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 3/31/09

    $ 17,392      $ —  

Realized gain (loss)

      111        —  

Change in unrealized appreciation/depreciation

      380        —  

Net Purchases (Sales)

      (971 )      —  

Transfers in and/or out of Level 3

      —          —  
              

Balance as of 06/30/09

    $ 16,912      $ —  

 

* Other financial instruments include futures and forwards, if applicable.

The amount of change in unrealized gain in investments in level 3 securities still held at June 30, 2009 was approximately $459,000.

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD FIXED INCOME FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 81.0%

      

Aerospace/Defense - 1.3%

      

BE Aerospace, Inc.,

      

8.50%, 7/1/18

    $ 9,850    $ 9,284

L-3 Communications Corp.,

      

6.38%, 10/15/15

      7,265      6,593

Moog, Inc.,

      

7.25%, 6/15/18

      11,500      10,752
         
        26,629
         

Agriculture - 1.7%

      

Alliance One International, Inc.,

      

8.50%, 5/15/12

      15,675      15,479

10.00%, 7/15/16(1)

     19,725      18,690
         
        34,169
         

Auto Parts & Equipment - 1.0%

      

Goodyear Tire & Rubber (The) Co.,

      

10.50%, 5/15/16

      19,750      19,947
         

Beverages - 0.4%

      

Constellation Brands, Inc.,

      

7.25%, 9/1/16

      9,620      8,898
         

Chemicals - 1.3%

      

Airgas, Inc.,

      

7.13%, 10/1/18(1)

      7,775      7,289

Ashland, Inc.,

      

9.13%, 6/1/17(1)

      9,850      10,244

NewMarket Corp.,

      

7.13%, 12/15/16

      10,212      9,191
         
        26,724
         

Commercial Services - 2.3%

      

ARAMARK Corp.,

      

8.50%, 2/1/15

      7,400      7,178

Corrections Corp. of America,

      

7.75%, 6/1/17

      9,850      9,702

Iron Mountain, Inc.,

      

8.75%, 7/15/18

      14,210      13,997

Service Corp. International,

      

7.50%, 4/1/27

      18,710      14,687
         
        45,564
         

Distribution/Wholesale - 0.7%

      

ACE Hardware Corp.,

      

9.13%, 6/1/16(1) (2)

      14,875      14,615
         

Diversified Financial Services - 9.1%

      

CIT Group, Inc.,

      

4.13%, 11/3/09

      18,075      17,134

4.25%, 2/1/10

      9,850      8,843

Ford Motor Credit Co. LLC,

      

7.38%, 10/28/09

      44,450      44,069

7.38%, 2/1/11

      9,850      8,917

7.80%, 6/1/12

      9,875      8,497

GMAC, Inc.,

      

4.75%, 9/14/09

      28,950      39,687

4.75%, 9/14/09(1) (2)

      4,925      4,789

6.50%, 10/15/09(1) (2)

      9,850      9,776

7.75%, 1/19/10

      11,425      11,141

Icahn Enterprises LP/Icahn Enterprises Finance Corp.,

      

7.13%, 2/15/13

      15,600      14,079

International Lease Finance Corp.,

      

5.13%, 11/1/10

      8,850      7,905

5.45%, 3/24/11

      9,850      8,258
         
        183,095
         

Electric - 5.8%

      

AES (The) Corp.,

      

8.75%, 5/15/13(1) (2)

      9,875      10,023

9.75%, 4/15/16(1)

      11,850      11,998

Calpine Construction Finance Co. LP and CCFC Finance Corp.,

      

8.00%, 6/1/16(1) (2)

      9,850      9,431

Edison Mission Energy,

      

7.50%, 6/15/13

      8,875      7,943

7.00%, 5/15/17

      15,240      11,697

Energy Future Holdings Corp.,

      

10.88%, 11/1/17

      15,625      11,406

NRG Energy, Inc.,

      

7.38%, 2/1/16

      9,450      8,942

7.38%, 1/15/17

      8,625      8,129

NV Energy, Inc.,

      

8.63%, 3/15/14

      21,075      20,759

PSEG Energy Holdings LLC,

      

8.50%, 6/15/11

      7,565      7,638

Texas Competitive Electric Holdings Co. LLC,

      

10.25%, 11/1/15

      13,850      8,622
         
        116,588
         

Entertainment - 2.7%

      

AMC Entertainment, Inc.,

      

8.75%, 6/1/19(1)

      10,850      10,199

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD FIXED INCOME FUND    continued  

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 81.0% continued

      

Entertainment - 2.7% continued

      

Cinemark USA, Inc.,

      

8.63%, 6/15/19(1)

    $ 9,875    $ 9,752

Scientific Games Corp.,

      

7.88%, 6/15/16(1)

      8,350      7,932

Scientific Games International, Inc.,

      

9.25%, 6/15/19(1)

      9,125      9,125

WMG Acquisition Corp.,

      

9.50%, 6/15/16(1)

      8,375      8,333

WMG Holdings Corp.,

      

0.00%, 12/15/14

      9,875      7,752
         
        53,093
         

Food - 3.8%

      

Del Monte Corp.,

      

8.63%, 12/15/12

      10,475      10,606

Dole Food Co., Inc.,

      

7.25%, 6/15/10

      4,925      4,851

13.88%, 3/15/14(1)

     5,425      5,968

Ingles Markets, Inc.,

      

8.88%, 5/15/17(1)

      14,775      14,553

Smithfield Foods, Inc.,

      

7.00%, 8/1/11

      10,400      9,880

10.00%, 7/15/14(1)

     4,925      4,863

SUPERVALU, Inc.,

      

7.50%, 11/15/14

      12,025      11,544

Tyson Foods, Inc.,

      

7.85%, 4/1/16

      14,800      14,271
         
        76,536
         

Forest Products & Paper - 1.0%

      

International Paper Co.,

      

9.38%, 5/15/19

      7,900      8,053

P.H. Glatfelter,

      

7.13%, 5/1/16

      13,375      12,288
         
        20,341
         

Gaming - 0.4%

      

Chukchansi Economic Development Authority,

      

8.00%, 11/15/13(1) (2)

      12,480      8,362
         

Gas Distribution - 1.3%

      

AmeriGas Partners LP/AmeriGas Eagle Finance Corp.,

      

7.13%, 5/20/16

      13,790      12,618

Inergy LP/Inergy Finance Corp.,

      

8.75%, 3/1/15(1)

      5,125      5,009

8.25%, 3/1/16

      9,560      9,106
         
        26,733
         

Healthcare - Products - 1.8%

      

Accellent, Inc.,

      

10.50%, 12/1/13

      18,525      15,700

Biomet, Inc.,

      

10.00%, 10/15/17

      13,075      13,304

10.38%, 10/15/17

      6,900      6,676
         
        35,680
         

Healthcare - Services - 8.1%

      

AMR HoldCo Inc./Emcare HoldCo Inc.,

      

10.00%, 2/15/15

      17,150      17,407

Apria Healthcare Group, Inc.,

      

11.25%, 11/1/14(1)

     11,850      11,435

CHS/Community Health Systems, Inc.,

      

8.88%, 7/15/15

      14,400      14,112

DaVita, Inc.,

      

6.63%, 3/15/13

      6,900      6,503

HCA, Inc.,

      

9.13%, 11/15/14

      31,250      30,937

8.50%, 4/15/19(1)

      8,875      8,698

Healthsouth Corp.,

      

7.22%, 6/15/14

      10,325      9,422

10.75%, 6/15/16

      9,725      9,774

Iasis Healthcare LLC/Iasis Capital Corp.,

      

8.75%, 6/15/14

      15,175      14,872

Tenet Healthcare Corp.,

      

7.38%, 2/1/13

      9,925      8,932

6.88%, 11/15/31

      29,500      17,700

US Oncology, Inc.,

      

9.13%, 8/15/17(1)

      11,825      11,736
         
        161,528
         

Household Products/Wares - 0.5%

      

Jarden Corp.,

      

8.00%, 5/1/16(1)

      10,100      9,646
         

Insurance - 1.1%

      

Crum & Forster Holdings Corp.,

      

7.75%, 5/1/17

      9,200      7,981

Liberty Mutual Group, Inc.,

      

10.75%, 6/15/58(1) (2)

      19,725      14,202
         
        22,183
         

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 81.0% continued

      

Internet - 0.5%

      

Terremark Worldwide, Inc.,

      

12.00%, 6/15/17(3)

   $ 9,875    $ 9,480
         

Iron/Steel - 0.5%

      

Steel Dynamics, Inc.,

      

7.38%, 11/1/12

      9,625      9,120
         

Lodging - 2.3%

      

Ameristar Casinos, Inc.,

      

9.25%, 6/1/14(1)

      13,325      13,592

Caesars Entertainment, Inc.,

      

7.88%, 3/15/10

      11,850      10,843

Harrahs Operating Escrow LLC/Harrahs Escrow Corp.,

      

11.25%, 6/1/17(1)

      4,925      4,654

MGM Mirage,

      

8.50%, 9/15/10

      19,725      17,900
         
        46,989
         

Machinery - Diversified - 0.5%

      

Case Corp.,

      

7.25%, 1/15/16

      10,030      9,040
         

Media - 2.6%

      

CSC Holdings, Inc.,

      

8.50%, 4/15/14(1)

      18,800      18,636

DirecTV Holdings LLC/DirecTV Financing Co.,

   

7.63%, 5/15/16

      13,525      13,153

Mediacom Broadband LLC/ Mediacom Broadband Corp.,

   

8.50%, 10/15/15

      21,725      19,552
         
        51,341
         

Oil & Gas - 6.1%

      

Chesapeake Energy Corp.,

      

9.50%, 2/15/15

      12,900      12,997

6.88%, 1/15/16

      11,900      10,502

Denbury Resources, Inc.,

      

7.50%, 12/15/15

      9,675      9,191

Encore Acquisition Co.,

      

7.25%, 12/1/17

      11,290      9,681

Forest Oil Corp.,

      

8.50%, 2/15/14(1)

      11,600      11,397

Linn Energy LLC,

      

11.75%, 5/15/17(1)

     4,925      4,790

PetroHawk Energy Corp.,

      

10.50%, 8/1/14(1)

      9,800      10,020

Pioneer Natural Resources Co.,

      

6.65%, 3/15/17

      7,400      6,478

Southwestern Energy Co.,

      

7.50%, 2/1/18(1)

      10,050      9,648

Swift Energy Co.,

      

7.13%, 6/1/17

      16,880      11,900

Western Refining, Inc.,

      

11.25%, 6/15/17(1) (2)

      16,825      14,932

Whiting Petroleum Corp.,

      

7.00%, 2/1/14

      11,215      10,402
         
        121,938
         

Oil & Gas Services - 0.4%

      

Dresser-Rand Group, Inc.,

      

7.38%, 11/1/14

      8,312      8,042
         

Packaging & Containers - 3.0%

      

Ball Corp.,

      

6.63%, 3/15/18

      9,625      8,807

BWAY Corp.,

      

10.00%, 4/14/14(1)

     13,800      13,765

Crown Americas LLC/Crown Americas Capital Corp.,

      

7.63%, 11/15/13

      7,925      7,727

Graham Packaging Co., Inc.,

      

8.50%, 10/15/12

      11,850      11,435

Silgan Holdings, Inc.,

      

7.25%, 8/15/16(1)

      9,850      9,456

Solo Cup Co.,

      

10.50%, 11/1/13(1)

     9,850      9,875
         
        61,065
         

Pipelines - 2.0%

      

El Paso Corp.,

      

8.25%, 2/15/16

      11,400      11,087

7.25%, 6/1/18

      9,175      8,471

Williams Cos (The), Inc.,

      

8.75%, 3/15/32

      19,643      19,741
         
        39,299
         

Real Estate Investment Trusts - 1.3%

      

Host Hotels & Resorts LP,

      

6.75%, 6/1/16

      13,125      11,386

Omega Healthcare Investors, Inc.,

      

7.00%, 4/1/14

      15,425      14,075
         
        25,461
         

 

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD FIXED INCOME FUND    continued  

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 81.0% continued

      

Retail - 5.6%

      

Dollar General Corp.,

      

10.63%, 7/15/15

    $ 12,825    $ 13,851

Game Stop Corp./Game Stop, Inc.,

      

8.00%, 10/1/12

      10,375      10,453

Landry’s Restaurants, Inc.,

      

14.00%, 8/15/11(1) (2)

      24,650      23,418

Macys Retail Holdings, Inc.,

      

5.75%, 7/15/14

      11,825      10,054

7.45%, 7/15/17

      11,825      10,293

Pantry (The), Inc.,

      

7.75%, 2/15/14

      14,800      13,098

RITE AID Corp.,

      

9.75%, 6/12/16(1)

      5,900      5,900

10.38%, 7/15/16

      5,925      5,332

7.50%, 3/1/17

      7,400      5,790

Wendy’s/Arby’s Restaurants LLC,

      

10.00%, 7/15/16(1)

     15,300      14,631
         
        112,820
         

Telecommunications - 11.2%

      

Alcatel-Lucent USA, Inc.,

      

6.45%, 3/15/29

      19,325      10,967

Centennial Communications Corp.,

      

6.35%, 1/1/13

      20,800      20,696

Cincinnati Bell, Inc.,

      

8.38%, 1/15/14

      20,395      18,865

Cricket Communications, Inc.,

      

7.75%, 5/15/16(1)

      13,800      13,283

Crown Castle International Corp.,

      

9.00%, 1/15/15

      13,800      14,042

DigitalGlobe, Inc.,

      

10.50%, 5/1/14(1)

      9,850      10,195

Frontier Communications Corp.,

      

9.00%, 8/15/31

      26,325      21,718

MasTec, Inc.,

      

7.63%, 2/1/17

      15,070      13,054

PAETEC Holding Corp.,

      

8.88%, 6/30/17(1)

      14,800      13,912

Qwest Capital Funding, Inc.,

      

7.25%, 2/15/11

      17,725      17,193

Qwest Corp.,

      

8.38%, 5/1/16(1)

      9,925      9,578

Sprint Capital Corp.,

      

8.38%, 3/15/12

      33,450      32,948

Time Warner Telecom Holdings, Inc.,

      

9.25%, 2/15/14

      12,725      12,630

Valor Telecommunications Enterprises/Finance Corp.,

      

7.75%, 2/15/15

      5,925      5,806

Windstream Corp.,

      

8.63%, 8/1/16

      10,475      10,030
         
        224,917
         

Transportation - 0.7%

      

RailAmerica, Inc.,

      

9.25%, 7/1/17(1)

      14,800      14,282
         

Total Corporate Bonds

      
         

(Cost $1,625,851)

         1,624,125

FLOATING RATE NOTES - 0.2%

      

Diversified Financial Services - 0.2%

      

CIT Group, Inc.,

      

0.76%, 3/12/10

      4,925      4,195
         

Total Floating Rate Notes

      
         

(Cost $4,103)

         4,195

FOREIGN ISSUER BONDS - 13.4%

      

Banks - 1.2%

      

Lloyds Banking Group PLC,

      

6.66%, 5/21/37(1) (2)

      14,800      5,328

5.92%, 9/29/49(1) (2)

      14,800      5,180

Royal Bank of Scotland Group PLC,

      

5.00%, 11/12/13

      4,925      4,057

7.64%, 3/31/49

      24,675      9,993
         
        24,558
         

Computers - 0.5%

      

Seagate Technology International,

      

10.00%, 5/1/14(1) (2)

      9,725      10,029
         

Electric - 1.0%

      

Intergen N.V.,

      

9.00%, 6/30/17(1) (2)

      20,525      19,448
         

Healthcare - Services - 0.4%

      

FMC Finance III S.A.,

      

6.88%, 7/15/17(2)

      8,900      8,277
         

 

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

FOREIGN ISSUER BONDS - 13.4% continued

      

Insurance - 0.7%

      

Catlin Insurance Co. Ltd.,

      

7.25%, 1/19/17(1) (2)

    $ 23,650    $ 13,244
         

Media - 1.1%

      

Kabel Deutschland GmbH,

      

10.63%, 7/1/14

      10,933      11,275

UPC Holding BV,

      

9.88%, 4/15/18(1) (2)

      11,875      11,296
         
        22,571
         

Mining - 0.6%

      

Vedanta Resources PLC,

      

9.50%, 7/18/18(1) (2)

      15,200      12,616
         

Miscellaneous Manufacturing - 1.0%

      

Bombardier, Inc.,

      

8.00%, 11/15/14(1) (2)

      21,000      19,766
         

Oil & Gas - 1.0%

      

Compton Petroleum Finance Corp.,

      

7.63%, 12/1/13

      19,375      10,753

OPTI Canada, Inc.,

      

8.25%, 12/15/14

      12,825      8,465
         
        19,218
         

Pipelines - 0.9%

      

Kinder Morgan Finance Co. ULC,

      

5.70%, 1/5/16

      21,275      18,243
         

Semiconductors - 0.5%

      

Avago Technologies Finance Pte/Avago Technologies U.S./Avago Technologies Wireless,

      

10.13%, 12/1/13

      9,565      9,756
         

Telecommunications - 3.4%

      

Digicel Group Ltd.,

      

8.88%, 1/15/15(1) (2)

      14,800      12,284

Digicel S.A./Bermuda,

      

12.00%, 4/1/14(1)

      4,900      4,851

Intelsat Jackson Holdings Ltd.,

      

9.50%, 6/15/16(1)

      29,250      29,396

11.25%, 6/15/16

      9,850      10,047

Virgin Media Finance PLC,

      

9.50%, 8/15/16

      11,800      11,623
         
        68,201
         

Transportation - 1.1%

      

Kansas City Southern de Mexico S.A .de C.V.,

      

7.63%, 12/1/13

      12,875      11,072

12.50%, 4/1/16(1)

      11,175      11,343
         
        22,415
         

Total Foreign Issuer Bonds

      
         

(Cost $268,616)

         268,342

 

     NUMBER
OF
WARRANTS		    VALUE
(000S)

WARRANTS - 0.0%

      

IPCS, Inc., Exp. 7/15/10, Strike

      

$5.50(1) (4) *

      1,500    $ —  
         

Leap Wireless International, Inc. Exp.

      

4/15/10, Strike $96.80(1) (4) *

      2,500      —  
         

Leap Wireless International, Inc. Exp.

      

4/15/10, Strike $96.80(1) (4) *

      2,000      —  
         

Total Warrants

      
         

(Cost $10)

         —  
     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT-TERM INVESTMENTS - 4.9%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 97,750    $ 97,750
         

Total Short-Term Investments

      
         

(Cost $97,750)

         97,750
         

Total Investments - 99.5%

      
         

(Cost $1,996,330)

         1,994,412

Other Assets less Liabilities - 0.5%

         9,506
         

NET ASSETS - 100.0%

       $ 2,003,918

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.
(2) Restricted security that has been deemed illiquid. At June 30, 2009, the value of these restricted illiquid securities amounted to approximately $227,016,000 or 11.33% of net assets. Additional information on each restricted illiquid security is as follows:

 

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD FIXED INCOME FUND    continued  

 

 

SECURITY

    ACQUISTION
AND
ENFORCEABLE
DATE		    ACQUISTION
COST
(000S)

ACE Hardware Corp.,

      

9.13%, 6/1/16

    1/30/09-5/15/09    $ 12,321

AES Corp.,

      

8.75%, 5/15/13

    1/14/09-3/5/09      9,731

Bombardier, Inc.,

      

8.00%, 11/15/14

    2/10/09-6/16/09      17,348

Calpine Construction Finance Co. LP and CCFC Finance Corp.,

      

8.00%, 6/1/16

    5/12/09      9,406

Catlin Insurance Co. Ltd.,

      

7.25%, 11/19/17

    6/6/07-5/20/09      16,016

Chukansi Economic Development Authority,

      

8.00%, 11/15/13

    12/2/05-5/13/09      11,167

Digicel Group Ltd.,

      

8.88%, 1/15/15

    4/14/09-4/16/09      10,175

FMC Finance lll SA,

      

6.88%, 07/15/17

    11/5/8-3/25/09      7,588

GMAC LLC,

      

6.50%, 10/15/09

    6/26/09      9,640

GMAC LLC,

      

4.75%, 9/14/09

    6/23/09      4,814

Intergen NV,

      

9.00%, 06/30/17

    7/23/07-6/3/09      19,573

Landry’s Restaurant Inc.,

      

14.00%, 8/15/11

    4/27/09-6/1/09      22,240

Liberty Mutual Group Inc.,

      

10.75%, 6/15/58

    5/22/09      11,588

Lloyds Banking Group PLC,

      

6.66%, 5/15/37

    6/18/09      5,920

Lloyds Banking Group PLC,

      

5.92%, 9/29/49

    6/19/09-6/24/09      5,572

Seagate Technology International,

      

10.00%, 5/1/14

    4/16/09-4/17/09      9,482

UPC Holding BV,

      

9.88%, 4/15/18

    6/16/09-6/29/09      11,474

Vedanta Resources PLC,

      

9.50%, 7/18/18

    7/11/08-6/29/09      13,100

Western Refining.,

      

11.25%, 6/15/17

    6/5/09      15,386
           

 

(3) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(4) Security has been deemed worthless by the NTGI Valuation Committee.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,996,330   
        

Gross tax appreciation of investments

    $ 48,820   

Gross tax depreciation of investments

      (50,738 ) 
        

Net tax depreciation of investments

    $ (1,918 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the High Yield Fixed Income Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Corporate Bonds

            

Aerospace/Defense

    $ —      $ 26,629    $ —      $ 26,629

Agriculture

      —        34,169      —        34,169

Auto Parts & Equipment

      —        19,947      —        19,947

Beverages

      —        8,898      —        8,898

Chemicals

      —        26,724      —        26,724

Commercial Services

      —        45,564      —        45,564

Distribution/Wholesale

      —        —        14,615      14,615

Diversified Financial Services

      —        168,530      14,565      183,095

Electric

      —        97,134      19,454      116,588

Entertainment

      —        53,093      —        53,093

Food

      —        76,536      —        76,536

Forest Products & Paper

      —        20,341      —        20,341

Gaming

      —        —        8,362      8,362

Gas Distribution

      —        26,733      —        26,733

Healthcare - Products

      —        35,680      —        35,680

Healthcare - Services

      —        161,528      —        161,528

Household Products/Wares

      —        9,646      —        9,646

Insurance

      —        7,981      14,202      22,183

Internet

      —        9,480      —        9,480

Iron/Steel

      —        9,120      —        9,120

Lodging

      —        46,989      —        46,989

Machinery - Diversified

      —        9,040      —        9,040

Media

      —        51,341      —        51,341

Oil & Gas

      —        107,006      14,932      121,938

Oil & Gas Services

      —        8,042      —        8,042

Packaging & Containers

      —        61,065      —        61,065

Pipelines

      —        39,299      —        39,299

 

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

INVESTMENTS

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

Real Estate Investment Trusts

      —        25,461      —        25,461

Retail

      —        89,402      23,418      112,820

Telecommunications

      —        224,917      —        224,917

Transportation

      —        14,282      —        14,282

Floating Rate Notes

            

Diversified Financial Services

      —        4,195      —        4,195

Foreign Issuer Bonds

            

Banks

      —        14,050      10,508      24,558

Computers

      —        —        10,029      10,029

Electric

      —        —        19,448      19,448

Healthcare - Services

      —        —        8,277      8,277

Insurance

      —        —        13,244      13,244

Media

      —        11,275      11,296      22,571

Mining

      —        —        12,616      12,616

Miscellaneous Manufacturing

      —        —        19,766      19,766

Oil & Gas

      —        19,218      —        19,218

Pipelines

      —        18,243      —        18,243

Semiconductors

      —        9,756      —        9,756

Telecommunications

      —        55,917      12,284      68,201

Transportation

      —        22,415      —        22,415

Short-Term Investments

      —        97,750      —        97,750
                           

Total Investments

    $ —      $ 1,767,396    $ 227,016    $ 1,994,412
                           

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

 

     INVESTMENTS
IN SECURITIES
(000S)		     OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 3/31/09

    $ 224,143      $ —  

Realized gain (loss)

      (23,677 )      —  

Change in unrealized appreciation/depreciation

      214        —  

Net Purchases (Sales)

      26,336        —  

Transfers in and/or out of Level 3

      —          —  
              

Balance as of 06/30/09

    $ 227,016      $ —  

 

* Other financial instruments include futures and forwards, if applicable.

The amount of change in unrealized gains due to investments in level 3 securities still held at June 30, 2009 was $214,000.

 

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 2.8%

      

Banks - 1.8%

      

JPMorgan Chase & Co.,

      

2.13%, 12/26/12(1)

   $ 5,600    $ 5,571

Morgan Stanley,

      

2.00%, 9/22/11(1)

      5,808      5,880
         
        11,451
         

Diversified Financial Services - 1.0%

      

General Electric Capital Corp.,

      

2.13%, 12/21/12(1)

     6,000      5,959
         

Total Corporate Bonds

      
         

(Cost $17,389)

         17,410

FOREIGN ISSUER BONDS - 1.4%

      

Multi-National - 1.4%

      

Asian Development Bank,

      

2.75%, 5/21/14

      8,600      8,465
         

Total Foreign Issuer Bonds

      
         

(Cost $8,572)

         8,465

U.S. GOVERNMENT AGENCIES - 31.0%(2)

      

Fannie Mae - 13.9%

      

3.38%, 3/10/14

      10,075      10,088

Pool #257042,

      

6.50%, 1/1/38

      10,166      10,842

Pool #555649,

      

7.50%, 10/1/32

      158      172

Pool #735402,

      

5.00%, 4/1/35

      6,865      7,018

Pool #745418,

      

5.50%, 4/1/36

      16,651      17,251

Pool #869217,

      

5.46%, 2/1/36

      5,523      5,766

Pool #888415,

      

5.00%, 12/1/36

      4,335      4,429

Pool #893082,

      

5.82%, 9/1/36

      2,561      2,669

Pool #968158,

      

6.50%, 1/1/38

      2,555      2,724

Pool #995049,

      

5.50%, 2/1/38

      11,258      11,664

Pool TBA,

      

5.50%, 7/15/39(3)

      12,300      12,696
         
        85,319
         

Federal Home Loan Bank - 0.7%

      

1.63%, 7/27/11

      4,428      4,452
         

Freddie Mac - 12.0%

      

2.00%, 2/25/11

      13,000      13,089

1.75%, 7/27/11

      3,674      3,683

2.00%, 1/27/12

      6,000      6,008

2.63%, 3/19/12

      9,833      9,906

Pool #1J0365,

      

5.91%, 4/1/37

      2,470      2,595

Pool #1J2840,

      

5.95%, 9/1/37

      4,739      4,992

Pool #1Q0323,

      

5.35%, 5/1/37

      9,476      9,889

Pool #410092,

      

5.17%, 11/1/24

      13      13

Pool #G05205,

      

5.00%, 1/1/39

      9,320      9,492

Pool TBA,

      

5.00%, 7/1/39(3)

      9,320      9,477

Series 2944, Class WD,

      

5.50%, 11/15/28

      4,765      4,922
         
        74,066
         

Freddie Mac Gold - 2.9%

      

Pool #G05367,

      

5.50%, 12/1/35

      17,016      17,624
         

Government National Mortgage Association - 1.5%

      

Series 2007, Class 4A,

      

4.21%, 6/16/29

      2,827      2,898

Series 2008, Class 14AC,

      

4.46%, 12/16/30

      3,407      3,469

Series 2008, Class 8A,

      

3.61%, 11/16/27

      2,705      2,743
         
        9,110
         

Total U.S. Government Agencies

      
         

(Cost $189,034)

         190,571

U.S. GOVERNMENT OBLIGATIONS - 53.8%

      

U.S. Treasury Notes - 53.8%

      

1.13%, 6/30/11

      115,955      115,964

4.63%, 8/31/11

      16,623      17,823

1.88%, 6/15/12

      98,330      99,045

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 53.8% continued

      

U.S. Treasury Notes - 53.8% continued

      

2.63%, 6/30/14

    $ 72,560    $ 72,787   

4.25%, 11/15/14

      22,826      24,581   
           
        330,200   
           

Total U.S. Government Obligations

      
           

(Cost $328,846)

         330,200   

SHORT-TERM INVESTMENTS - 18.7%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

      91,911      91,911   

FHLB Discount Note,

      

0.01%, 7/1/09

      21,246      21,003   

U.S. Treasury Bill,

      

0.35%, 8/20/09(4)

      1,725      1,724   
           

Total Short-Term Investments

      
           

(Cost $114,881)

         114,638   
           

Total Investments - 107.7%

      
           

(Cost $658,722)

         661,284   

Liabilities less Other Assets - (7.7)%

         (47,286 ) 
           

NET ASSETS - 100.0%

       $ 613,998   

 

(1) Securities were issued under the Temporary Liquidity Guarantee Program (TLGP) and are guaranteed by the U.S. Government.
(2) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(3) When-Issued Security.
(4) Security pledged as collateral to cover margin requirements for open futures contracts.

Percentages shown are based on Net Assets.

At June 30, 2009, the Short-Intermediate U.S. Government Fund had open futures contracts as follows:

 

TYPE

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

Two Year U.S. Treasury Note

    376    $ 81,298    Long    9/09    $ 487
                            

Total

                $ 487
                            

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 658,722   
        

Gross tax appreciation of investments

    $ 3,183   

Gross tax depreciation of investments

      (621 ) 
        

Net tax appreciation of investments

    $ 2,562   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Short-Intermediate U.S. Government Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

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

Short-Intermediate U.S. Government Fund

    $ —      $ 661,284 (1)    $ —      $ 661,284
                            

Other Financial Instruments*

    $ 487    $ —        $ —      $ —  
                            

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

U.S. GOVERNMENT FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

CORPORATE BONDS - 3.2%

      

Banks - 2.3%

      

JPMorgan Chase & Co.,

      

2.13%, 12/26/12(1)

   $ 1,444    $ 1,437

Morgan Stanley,

      

2.00%, 9/22/11(1)

      1,484      1,502
         
        2,939
         

Diversified Financial Services - 0.9%

      

General Electric Capital Corp.,

      

2.13%, 12/21/12(1)

     1,200      1,192
         

Total Corporate Bonds

      
         

(Cost $4,124)

         4,131

FOREIGN ISSUER BONDS - 1.6%

      

Multi-National - 1.6%

      

Asian Development Bank,

      

2.75%, 5/21/14

      2,100      2,067
         

Total Foreign Issuer Bonds

      
         

(Cost $2,093)

         2,067

U.S. GOVERNMENT AGENCIES - 30.3%(2)

      

Fannie Mae - 15.7%

      

Federal National Mortgage Association,

      

3.38%, 3/10/14

      2,619      2,622

5.00%, 5/11/17

      1,375      1,493

Pool #257042,

      

6.50%, 1/1/38

      2,523      2,691

Pool #555649,

      

7.50%, 10/1/32

      258      282

Pool #735402,

      

5.00%, 4/1/35

      1,671      1,708

Pool #745418,

      

5.50%, 4/1/36

      4,190      4,341

Pool #869217,

      

5.46%, 2/1/36

      2,699      2,818

Pool #893082,

      

5.82%, 9/1/36

      923      962

Pool #968158,

      

6.50%, 1/1/38

      1,115      1,189

Pool #995049,

      

5.50%, 2/1/38

      2,251      2,333
         
        20,439
         

Federal Home Loan Bank - 0.7%

      

1.63%, 7/27/11

      879      884

Freddie Mac - 8.8%

      

1.75%, 7/27/11

      590      592

2.00%, 1/27/12

      1,500      1,502

2.63%, 3/19/12

      3,100      3,123

Pool #1J0365,

      

5.91%, 4/1/37

      1,941      2,039

Pool #1J2840,

      

5.95%, 9/1/37

      2,556      2,692

Pool #410092,

      

5.17%, 11/1/24

      54      54

Series 2944, Class WD,

      

5.50%, 11/15/28

      1,425      1,472
         
        11,474
         

Freddie Mac Gold - 3.3%

      

Pool #G05367,

      

5.50%, 12/1/35

      4,118      4,265
         

Government National Mortgage Association - 1.8%

      

Pool #268360,

      

10.00%, 4/15/19

      22      23

Pool #270288,

      

10.00%, 6/15/19

      23      25

Series 2007, Class 4A,

      

4.21%, 6/16/29

      636      652

Series 2008, Class 14AC,

      

4.46%, 12/16/30

      681      694

Series 2008, Class 8A,

      

3.61%, 11/16/27

      902      914
         
        2,308
         

Total U.S. Government Agencies

      
         

(Cost $38,796)

         39,370

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

U.S. GOVERNMENT FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

U.S. GOVERNMENT OBLIGATIONS - 56.1%

      

U.S. Treasury Notes - 56.1%

      

1.13%, 6/30/11

    $ 13,435    $ 13,436   

4.63%, 8/31/11

      1,170      1,254   

1.88%, 6/15/12

      18,661      18,797   

2.63%, 6/30/14

      16,366      16,417   

4.25%, 11/15/14

      4,729      5,093   

3.25%, 6/30/16

      8,958      8,986   

2.75%, 2/15/19

      4,725      4,425   

3.13%, 5/15/19

      4,800      4,643   
           
        73,051   
           

Total U.S. Government Obligations

      
           

(Cost $72,521)

         73,051   

SHORT-TERM INVESTMENTS - 13.2%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

      16,907      16,907   

U.S. Treasury Bill,

      

0.48%, 8/20/09(3)

      325      325   
           

Total Short-Term Investments

      
           

(Cost $17,232)

         17,232   
           

Total Investments - 104.4%

      
           

(Cost $134,766)

         135,851   

Liabilities less Other Assets - (4.4)%

         (5,760 ) 
           

NET ASSETS - 100.0%

       $ 130,091   

 

(1) Securities were issued under the Temporary Liquidity Guarantee Program (TLGP) and are guaranteed by the U.S. Government.
(2) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(3) Security pledged as collateral to cover margin requirements for open futures contracts.

Percentages shown are based on Net Assets.

At June 30, 2009, the U.S. Government Fund had open futures contracts as follows:

 

TYPE

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

Two Year U.S. Treasury Note

    44    $ 9,514    Long    9/09    $ 57

Ten Year U.S. Treasury Note

    55      6,395    Long    9/09      153
                            

Total

                $ 210
                            

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 134,766   
        

Gross tax appreciation of investments

    $ 1,173   

Gross tax depreciation of investments

      (88 ) 
        

Net tax appreciation of investments

    $ 1,085   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Funds’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the U.S. Government Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

     Level 1
(000S)		    Level 2
(000S)		     Level 3
(000S)		    Total
(000S)		  

U.S. Government Fund

    $ —      $ 135,851 (1)    $ —      $ 135,851   
                              

Other Financial Instruments *

    $ 210    $ —        $ —      $ —     
                              

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

ULTRA-SHORT FIXED INCOME FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

ASSET-BACKED SECURITIES - 3.4%

      

Credit Card - 3.4%

      

Citibank Credit Card Issuance Trust, Series

      

2009-A3, Class A3,

      

2.70%, 6/24/13

    $ 500    $ 502
         

Total Asset-Backed Securities

      
         

(Cost $499)

         502

CORPORATE BONDS - 29.2%

      

Aerospace/Defense - 3.3%

      

General Dynamics Corp.,

      

1.80%, 7/15/11

      500      499
         

Banks - 10.4%

      

Goldman Sachs Group (The), Inc.,

      

6.88%, 1/15/11

      500      529

JPMorgan Chase & Co.,

      

5.60%, 6/1/11

      500      523

Morgan Stanley,

      

5.05%, 1/21/11

      500      510
         
        1,562
         

Diversified Financial Services - 6.8%

      

American Honda Finance Corp.,

      

2.95%, 6/29/11(1)

      500      499

General Electric Capital Corp.,

      

6.13%, 2/22/11

      500      524
         
        1,023
         

Pharmaceuticals - 3.4%

      

Merck & Co., Inc.,

      

1.88%, 6/30/11

      500      501
         

Telecommunications - 5.3%

      

SBC Communications, Inc.,

      

6.25%, 3/15/11

      269      285

Verizon Wireless Capital LLC,

      

3.75%, 5/20/11(1)

      500      510
         
        795
         

Total Corporate Bonds

      
         

(Cost $4,384)

         4,380

FOREIGN ISSUER BONDS - 3.3%

      

Banks - 3.3%

      

Credit Suisse New York,

      

3.45%, 7/2/12

      500      500
         

Total Foreign Issuer Bonds

      
         

(Cost $499)

         500

U.S. GOVERNMENT OBLIGATIONS - 13.3%

      

U.S. Treasury Notes - 13.3%

      

0.88%, 5/31/11

      1,000      997

0.88%, 12/31/10

      1,000      1,001
         
        1,998
         

Total U.S. Government Obligations

      
         

(Cost $1,991)

         1,998

MUNICIPAL BONDS - 2.0%

      

Illinois - 2.0%

      

Regional Transportation Authority Tax Revenue Notes, Series B (G.O. of Authority),

      

2.88%, 4/1/11

      300      301
         

Total Municipal Bonds

      
         

(Cost $300)

         301

 

     NUMBER
OF SHARES		    VALUE
(000S)

INVESTMENT COMPANIES - 31.8%

      

Northern Institutional Funds - Diversified Assets Portfolio

    4,758,401    $ 4,758
         

Total Investment Companies

      
         

(Cost $4,759)

         4,758

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT-TERM INVESTMENTS - 23.4%

      

Bibb County Development Authority Revenue VRDB, Trustees Mount De Sales (SunTrust Bank LOC),

      

2.70%, 7/1/09

    $ 500    $ 500

Illinois Finance Authority Revenue Bonds, Kohl Childrens Museum (Fifth Third Bank LOC),

      

3.12%, 7/1/09

      500      500

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

ULTRA-SHORT FIXED INCOME FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 23.4% continued

      

New Hampshire Health & Education Facilities Authority Revenue VRDB, Series B, Kendal at Hanover (RBS Citizens N.A. LOC),

      

2.50%, 7/2/09

    $ 500    $ 500   

New Hampshire Health & Education Facilities Authority, Taxable Revenue VRDB, Series C, Dartmouth College,

      

0.42%, 7/1/09

      500      500   

Ohio Cuyahoga County Health Care Facilities Revenue Bonds, McGregor Amasa Stone (Key Bank N.A. LOC),

      

2.35%, 7/2/09

      500      500   

Tampa Florida Revenue Refunding VRDB, Volunteers of America (Regions Bank LOC),

      

3.10%, 7/2/09

      500      500   

Texas G.O. Unlimited Refunding Bonds, Adjustable Tax Rate, Series B, Vets Housing Project,

      

1.75%, 7/1/09

      500      500   
           

Total Short-Term Investments

      
           

(Cost $3,500)

         3,500   
           

Total Investments - 106.4%

      
           

(Cost $15,932)

         15,939   

Liabilities less Other Assets - (6.4)%

         (957 ) 
           

NET ASSETS - 100.0%

       $ 14,982   

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 15,932   
        

Gross tax appreciation of investments

    $ 15   

Gross tax depreciation of investments

      (8 ) 
        

Net tax appreciation of investments

    $ 7   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Ultra Short Fixed Income Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Asset-Backed Securities

    $ —      $ —      $ 502 (1)    $ 502

Corporate bonds

          

Aerospace/Defense

      —        499        —          499

Banks

      —        1,562        —          1,562

Diversified Financial Services

      —        524        499        1,023

Pharmaceuticals

      —        501        —          501

Telecommunication Services

      —        285        510        795

Foreign Issuer Bonds

      —        500 (1)      —          500

US Government Obligations

      —        1,998 (1)      —          1,998

Municipal Bonds

      —        301 (1)      —          301

Investment Companies

      4,758      —          —          4,758

Short-Term Investments

      —        3,500        —          3,500
                             

Total Investments

    $ 4,758    $ 9,670      $ 1,511      $ 15,939
                             

 

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

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

 

     INVESTMENTS
IN SECURITIES
(000S)		    OTHER
FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 6/18/09

    $ —      $ —  

Realized gain (loss)

      —        —  

Change in unrealized appreciation/depreciation

      1      —  

Net Purchases (Sales)

      1,510      —  

Transfers in and/or out of Level 3

      —        —  
             

Balance as of 06/30/09

    $ 1,511    $ —  

 

* Other financial instruments include futures and forwards, if applicable.

The amount of change in unrealized gain in investments in level 3 securities still held at June 30, 2009 was approximately $1,000.

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

ASSET-BACKED SECURITIES - 1.9%

      

Credit Card - 1.9%

      

Citibank Credit Card Issuance Trust, Series

      

2009-A3, Class A3,

      

2.70%, 6/24/13

    $ 500    $ 501
         

Total Asset-Backed Securities

      
         

(Cost $499)

         501

CORPORATE BONDS - 12.8%

      

Banks - 5.8%

      

Goldman Sachs Group (The), Inc.,

      

6.88%, 1/15/11

      500      529

JPMorgan Chase & Co.,

      

5.60%, 6/1/11

      500      523

Morgan Stanley,

      

5.05%, 1/21/11

      500      510
         
        1,562
         

Diversified Financial Services - 2.0%

      

General Electric Capital Corp.,

      

6.13%, 2/22/11

      500      524
         

Pharmaceuticals - 1.9%

      

Merck & Co., Inc./NJ,

      

1.88%, 6/30/11

      500      501
         

Telecommunications - 3.1%

      

SBC Communications, Inc.,

      

6.25%, 3/15/11

      300      318

Verizon Wireless Capital LLC,

      

3.75%, 5/20/11(1)

      500      510
         
        828
         

Total Corporate Bonds

      
         

(Cost $3,419)

         3,415

U.S. GOVERNMENT OBLIGATIONS - 22.4%

      

U.S. Treasury Notes - 22.4%

      

0.88%, 5/31/11

      3,000      2,989

0.88%, 12/31/10

      3,000      3,004
         
        5,993
         

Total U.S. Government Obligations

      
         

(Cost $5,973)

         5,993

MUNICIPAL BONDS - 10.1%

      

Colorado - 1.0%

      

Adams & Arapahoe Joint School District 28J Aurora G.O. Unlimited Bonds (State Aid Withholding),

      

4.00%, 12/1/10

      255      266
         

Hawaii - 2.1%

      

Hawaii Highway Revenue Bonds, Series B (FSA Insured),

      

5.00%, 7/1/12

      500      551
         

Illinois - 3.4%

      

Illinois Cook County G.O. Unlimited Refunding Bonds,

      

3.00%, 11/15/11(2)

     500      516

Regional Transportation Authority Tax Revenue Notes, Series B (G.O. of Authority),

      

2.88%, 4/1/11

      400      402
         
        918
         

New York - 2.0%

      

New York State Dormitory Authority Revenue Bonds, Series A,

      

5.00%, 2/15/11

      500      530
         

Ohio - 1.6%

      

Columbus Ohio G.O. Unlimited Refunding Bonds,

      

5.00%, 5/15/12

      390      431
         

Total Municipal Bonds

      
         

(Cost $2,686)

         2,696
     NUMBER
OF SHARES		    VALUE
(000S)

INVESTMENT COMPANIES - 50.6%

      

Northern Institutional Funds - Diversified Assets Portfolio(3)

      13,513,099    $ 13,513
         

Total Investment Companies

      
         

(Cost $13,513)

         13,513

 

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND    continued    JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 9.9%

      

Bibb County Development Authority Revenue VRDB, Trustees Mount De Sales (Suntrust Bank Atlanta LOC),

      

2.70%, 7/1/09

    $ 500    $ 500   

Illinois Finance Authority Revenue Bonds, Kohl Childrens Museum (Fifth Third Bank LOC),

      

3.12%, 7/1/09

      500      500   

New Hampshire Health & Education Facilities Authority Revenue VRDB, Series B, Kendal at Hanover (RBS Citizens N.A. LOC),

      

2.50%, 7/2/09

      630      630   

Ohio Cuyahoga County Health Care Facilities Revenue Bonds, McGregor Amasa Stone (Key Bank N.A. LOC),

      

2.35%, 7/2/09

      500      500   

Tampa Florida Revenue Refunding VRDB, Volunteers of America (Regions Bank LOC),

      

3.10%, 7/2/09

      500      500   
           

Total Short-Term Investments

      
           

(Cost $2,630)

         2,630   
           

Total Investments - 107.7%

      
           

(Cost $28,720)

         28,748   

Liabilities less Other Assets - (7.7)%

         (2,045 ) 
           

NET ASSETS - 100.0%

       $ 26,703   

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(2) When-Issued Security.
(3) Investment in affiliated portfolio.

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 28,720   
        

Gross tax appreciation of investments

    $ 35   

Gross tax depreciation of investments

      (7 ) 
        

Net tax appreciation of investments

    $ 28   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Tax Advantaged Ultra-Short Fixed Income Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Asset-Backed Securities

    $ —      $ —        $ 501 (1)    $ 501

Corporate Bonds

          

Banks

      —        1,562        —          1,562

Diversified Financial Services

      —        524        —          524

Pharmaceuticals

      —        501        —          501

Telecommunications

      —        318        510        828

US Government Obligations

      —        5,993        —          5,993

Municipal Bonds

      —        2,696 (1)      —          2,696

Investment Companies

      13,513      —          —          13,513

Short-Term Investments

      —        2,630        —          2,630
                             

Total Investments

    $ 13,513    $ 14,224      $ 1,011      $ 28,748
                             

 

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

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

 

     INVESTMENTS
IN SECURITIES
(000S)		    OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 6/18/09 (Inception Date)

    $ —      $  —  

Realized gain (loss)

      —        —  

Change in unrealized appreciation/depreciation

      2      —  

Net Purchases (Sales)

      1,009      —  

Transfers in and/or out of Level 3

      —        —  
             

Balance as of 6/30/09

    $ 1,011    $ —  

 

* Other financial instruments include futures and forwards, if applicable.

The amount of change in unrealized gain on investments in level 3 securities still held at June 30, 2009 was approximately $2,000.

 

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

   SCHEDULE OF INVESTMENTS
ARIZONA TAX-EXEMPT FUND    JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.4%

      

Arizona - 91.9%

      

Arizona Health Facilities Authority Revenue Bonds, Series A, Phoenix Childrens Hospital, Prerefunded,

      

6.00%, 2/15/12

    $ 1,000    $ 1,118

Arizona School Facilities Board COP,

      

5.25%, 9/1/23

      2,000      2,014

Arizona School Facilities Board Revenue Refunding Bonds, State School Trust (AMBAC Insured),

      

5.00%, 7/1/18

      1,500      1,483

Arizona State Transportation Board Highway Revenue Bonds, Prerefunded,

      

5.75%, 7/1/09

      1,040      1,040

Arizona State University COP, Research Infrastructure Project (AMBAC Insured),

      

5.00%, 9/1/30

      2,000      1,969

Arizona State University Revenue Bonds (FGIC Insured), Prerefunded,

      

5.50%, 7/1/12

      1,160      1,301

Arizona State University Revenue Refunding Bonds (AMBAC Insured),

      

5.00%, 7/1/27

      450      458

Bullhead City Municipal Property Corp. Excise TRB (NATL-RE Insured),

      

5.00%, 7/1/23

      1,000      993

Chandler Water & Sewerage Revenue Bonds (NATL-RE Insured),

      

7.25%, 7/1/09

      240      240

City of Tucson AZ COP (Assured Guaranty Insured),

      

5.00%, 7/1/26

      1,000      986

5.00%, 7/1/29

      1,000      966

Coconino & Yavapai Counties Joint Unified School District No. 9 Sedona G.O. Unlimited Bonds, Series B, School Improvement Project 2007 (Assured Guaranty Insured),

      

5.00%, 7/1/22

      1,345      1,392

Gilbert Public Facilities Municipal Property Corp. Revenue Bonds,

      

5.50%, 7/1/28

      1,000      1,025

Glendale G.O. Unlimited Bonds,

      

2.00%, 7/1/18

      2,600      2,217

Glendale Water & Sewer Revenue Bonds, Sub Lien (FSA Insured),

      

5.00%, 7/1/25

      2,000      2,085

Goodyear G.O. Unlimited Bonds (NATL-RE Insured),

      

5.00%, 7/1/16

      1,300      1,403

Greater Arizona Development Authority Infrastructure Revenue Bonds, Series 2, Santa Cruz County Jail,

      

5.00%, 8/1/28

      2,000      1,945

5.25%, 8/1/31

      1,005      991

Greater Arizona Development Authority Infrastructure Revenue Bonds, Series A,

      

4.00%, 8/1/16

      800      808

4.13%, 8/1/19

      630      612

Maricopa County Community College District G.O. Unlimitied Bonds, Series C,

      

3.00%, 7/1/22

      4,000      3,393

Maricopa County Elementary School District No. 1 Phoenix Elementary G.O. Unlimited Bonds, Series B, School Improvement Project 2006,

      

4.50%, 7/1/21

      1,190      1,182

Maricopa County Elementary School District No.8 Osborn G.O. Unlimited Bonds, Series B, School Improvement Project of 2006,

      

5.00%, 7/1/15

      680      738

Maricopa County School District No. 28 Kyrene Elementary G.O. Unlimited Bonds, Series C, School Improvement Project 2005,

      

5.00%, 7/1/21

      1,000      1,070

Maricopa County School District No. 8 Osborn G.O. Limited Refunding Bonds, Bank Qualified (NATL-RE FGIC Insured),

      

4.70%, 7/1/14

      1,000      1,091

Maricopa County Unified High School District No. 210 Phoenix G.O. Unlimited Refunding Bonds (FSA Insured),

      

5.25%, 7/1/18

      225      252

Maricopa County Unified School District No 4-Mesa G.O. Unlimited Bonds, Series D, School Improvement Project of 2005,

      

4.00%, 7/2/17

      1,000      1,023

Maricopa County Unified School District No. 60 Higley G.O. Unlimited Bonds, Series C, School Improvement Project of 2006,

      

5.00%, 7/1/27

      1,000      996

Maricopa County Unified School District No. 80 Chandler Capital Appreciation G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured),

      

0.00%, 7/1/09

      1,000      1,000

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.4% continued

      

Arizona - 91.9% continued

      

Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds,

      

5.00%, 7/1/23

    $ 175    $ 187

Maricopa County Unified School District No. 89 Dysart G.O. Unlimited Bonds, Series B, School Improvement Project of 2002 (FSA Insured),

      

5.25%, 7/1/15

      1,600      1,772

Maricopa County Unified School District No. 89 Dysart G.O. Unlimited Bonds, Series B, School Improvement Project of 2006 (AMBAC Insured),

      

5.00%, 7/1/27

      500      498

Mesa G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured),

      

5.00%, 7/1/18

      150      162

Mesa Utilities System Revenue Bonds (FGIC Insured), Prerefunded,

      

5.00%, 7/1/09

      30      30

Mohave County Unified School District No. 20 Kingman G.O. Unlimited Bonds, Series C, School Improvement Project 2006 (Assured Guaranty Insured),

      

5.50%, 7/1/21

      1,000      1,083

5.00%, 7/1/23

      1,000      1,031

Northern Arizona University COP, Northern Arizona University Research Projects (AMBAC Insured),

      

5.00%, 9/1/26

      400      391

Phoenix Civic Improvement Corp. Airport Revenue Bonds, Senior Lien, Series B (AMT),

      

5.25%, 7/1/16

      1,000      1,000

Phoenix Civic Improvement Corp. Excise TRB, Subseries A (NATL-RE Insured),

      

4.75%, 7/1/24

      1,250      1,247

Phoenix Civic Improvement Corp. Wastewater System Revenue Bonds, Junior Lien (NATL-RE Insured),

      

5.00%, 7/1/29

      1,010      1,006

Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Senior Lien,

      

5.50%, 7/1/20

      1,690      1,871

5.50%, 7/1/21

      1,080      1,184

Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (NATL-RE FGIC Insured),

      

5.50%, 7/1/17

      3,500      3,792

Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien, Series A,

      

5.00%, 7/1/22

      1,000      1,062

5.00%, 7/1/23

      1,000      1,058

5.00%, 7/1/39

      530      528

Phoenix G.O. Limited Refunding Bonds, Series A,

      

4.50%, 7/1/15

      1,500      1,502

Phoenix G.O. Limited Refunding Bonds, Series B,

      

4.50%, 7/1/20

      1,100      1,101

Phoenix G.O. Unlimited Bonds,

      

4.50%, 7/1/22

      1,000      1,000

Phoenix G.O. Unlimited Bonds, Series B, Various Purpose, Partially Prerefunded,

      

5.38%, 7/1/20

      1,000      1,071

Pima County G.O. Unlimited Bonds (FSA Insured),

      

4.00%, 7/1/14

      750      759

Pima County Unified School District No. 12 Sunnyside G.O. Unlimited Bonds (FGIC Insured), Prerefunded,

      

5.75%, 7/1/09

      2,000      2,000

Pima County Unified School District No. 6 Marana G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured),

      

5.40%, 7/1/14

      1,300      1,354

Pinal County Unified School District No. 43 Apache Junction G.O. Unlimited Refunding Bonds (FSA Insured),

      

5.00%, 7/1/22

      1,000      1,073

Rio Nuevo Multipurpose Facilities District Excise Tax Revenue Bonds, Sub Lien, (Assured Guaranty Insured),

      

5.25%, 7/15/16

      1,000      1,054

Salt River Project Agricultural Improvement & Power District Electric System Revenue Bonds, Series A, Salt River Project,

      

5.00%, 1/1/37

      1,255      1,256

Scottsdale Municipal Property Corp. Excise Tax Revenue Refunding Bonds,

      

5.00%, 7/1/30

      1,000      1,066

Surprise Municipal Property Corp. Excise Tax Revenue Refunding Bonds (AMBAC Insured),

      

5.00%, 7/1/14

      695      742

Tempe G.O. Unlimited Bonds,

      

5.00%, 7/1/21

      1,195      1,281

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.4% continued

      

Arizona - 91.9% continued

      

Tucson Airport Authority, Inc. Revenue Bonds (AMT), Sub Lien (NATL-RE Insured),

      

5.00%, 12/1/23

    $ 1,135    $ 1,038

Tucson Water Revenue Bonds, Series 2005-B (FSA Insured),

      

5.00%, 7/1/25

      1,590      1,654

Tucson Water Revenue Refunding Bonds, Series C,

      

5.00%, 7/1/26

      2,085      2,115

Yuma County Library District G.O. Unlimited Bonds (XLCA Insured),

      

5.00%, 7/1/23

      1,000      1,016

5.00%, 7/1/28

      1,945      1,910

Yuma Municipal Property Corp. Revenue Bonds, Series D (XLCA Insured),

      

5.00%, 7/1/23

      1,000      1,016

Yuma Municipal Property Corp. Utilities System Revenue Bonds, Senior Lien (XLCA Insured),

      

5.00%, 7/1/23

      2,500      2,469
         
        80,170
         

Puerto Rico - 6.5%

      

Puerto Rico Commonwealth Highway & Transportation Authority Revenue Bonds (FGIC-TCRS Insured),

      

5.75%, 7/1/20

      1,500      1,451

Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation Bonds, Series A, Prerefunded,

      

5.50%, 10/1/10

      2,500      2,672

Puerto Rico Public Finance Corp., Prerefunded, Commonwealth Appropriated, Escrowed to Maturity, Series E (AMBAC Insured),

      

5.50%, 8/1/27

      1,350      1,509
         
        5,632
         

Total Municipal Bonds

      
         

(Cost $84,646)

         85,802

SHORT-TERM INVESTMENTS - 0.4%

      

Arizona State Board of Regents University Revenue Refunding VRDB, Series A,

      

0.20%, 7/1/09

      300      300
         

Total Short-Term Investments

      
         

(Cost $300)

         300
         

Total Investments - 98.8%

      
         

(Cost $84,946)

         86,102

Other Assets less Liabilities - 1.2%

         1,079
         

NET ASSETS - 100.0%

       $ 87,181

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the Arizona Tax-Exempt Fund were:

 

INDUSTRY SECTOR

    % OF INVESTMENTS  

Facilities

    6.2 % 

General

    19.3   

General Obligation

    19.5   

School District

    20.6   

Water

    22.1   

All other sectors less than 5%

    12.3   
      

Total

    100.0 % 
      

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 84,946   
        

Gross tax appreciation of investments

    $ 2,104   

Gross tax depreciation of investments

      (948 ) 
        

Net tax appreciation of investments

    $ 1,156   
        

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

ARIZONA TAX-EXEMPT FUND     continued    JUNE 30, 2009 (UNAUDITED)

 

 

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Arizona Tax-Exempt Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

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

Arizona Tax-Exempt Fund

    $ —    $ 86,102 (1)    $ —    $ 86,102
                            

 

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

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

AMT - Alternative Minimum Tax

COP - Certificate of Participation

FGIC - Financial Guaranty Insurance Corporation

FSA - Financial Security Assurance

G.O. - General Obligation

NATL-RE - National Public Finance Guarantee Corp.

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

XLCA - XL Capital Assurance

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND    JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.0%

      

California - 86.2%

      

Antelope Valley Community College District G.O. Unlimited Bonds, Series B, Election 2004 (NATL-RE Insured),

      

5.25%, 8/1/39

    $ 1,000    $ 982

Bay Area Government Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (NATL-RE FGIC Insured),

      

5.00%, 8/1/17

      3,500      3,444

5.00%, 8/1/17

      2,430      2,391

California Educational Facilities Authority Revenue Bonds, Series A, Loyola Marymount University (NATL-RE Insured),

      

0.00%, 10/1/19

      1,300      743

California Educational Facilities Authority Revenue Bonds, Series Q, Stanford University,

      

5.25%, 12/1/32

      2,500      2,561

California Health Facilities Financing Authority Revenue Bonds, Series C, Providence Health & Services,

      

5.50%, 10/1/17

      800      858

California Health Facilities Financing Authority Revenue Refunding Bonds, Cedars-Sinai Medical Center,

      

5.00%, 11/15/13

      1,000      1,052

California Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute,

      

5.75%, 7/1/30

      1,000      1,004

California State Department of Water Resources Power Supply Revenue Bonds, Series A (AMBAC Insured),

      

5.50%, 5/1/13

      1,500      1,635

5.50%, 5/1/15

      600      640

California State Department of Water Resources Power Supply Revenue Bonds, Series A, Prerefunded,

      

5.38%, 5/1/12

      745      837

California State Economic Recovery G.O. Unlimited Bonds, Series A,

      

5.25%, 7/1/14

      4,000      4,238

California State Economic Recovery G.O. Unlimited Bonds, Series A (NATL-RE Insured),

      

5.00%, 7/1/15

      3,000      3,109

California State G.O. Unlimited Bonds (NATL-RE FGIC Insured), Unrefunded Balance,

      

4.75%, 2/1/19

      85      83

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 12/1/16

      3,000      3,077

California State Public Works Board Lease Revenue Bonds, Series A, Department of Mental Health-Coalinga,

      

5.13%, 6/1/29

      250      222

California State Public Works Board Lease Revenue Bonds, Series D, Department of Justice,

      

5.25%, 11/1/16

      1,000      1,009

California State Public Works Board Lease Revenue Bonds, Series F, Department of Corrections & Rehabilitation,

      

5.00%, 11/1/22

      1,280      1,192

5.00%, 11/1/24

      1,695      1,544

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      1,412

California State Public Works Board Lease Revenue Refunding Bonds, Series A, Trustees California State University,

      

5.25%, 10/1/14

      3,545      3,589

California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation,

      

5.00%, 6/1/19

      2,000      1,939

California State Public Works Board Lease Revenue Refunding Bonds, Series J, Department of Corrections & Rehabilitation (AMBAC Insured),

     

5.00%, 1/1/19

      1,300      1,266

California Statewide Communities Development Authority PCR Refunding Bonds, Series D, Southern California Education Co. (FGIC Insured),

      

4.25%, Mandatory Put 11/1/16

      1,575      1,524

California Statewide Communities Development Authority Revenue COP, John Muir/Mount Diablo Health System (NATL-RE Insured),

      

5.50%, 8/15/12

      3,310      3,464

California Statewide Communities Development Authority Student Housing Revenue Bonds, Series A, East Campus Apartments LLC (ACA Insured),

      

5.00%, 8/1/12

      1,775      1,788

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL     
     AMOUNT    VALUE
     (000S)    (000S)

MUNICIPAL BONDS - 88.0% continued

      

California - 86.2% continued

      

Carlsbad Unified School District G.O. Unlimited Bonds,

      

0.00%, 5/1/19

    $ 1,250    $ 743

Carlsbad Unified School District G.O. Unlimited Bonds, Series A, Election 2006 (NATL-RE Insured),

      

5.25%, 8/1/32

      1,500      1,529

Contra Costa County Home Mortgage Revenue Bonds, GNMA Mortgage Backed Securities Program (Collateralized by GNMA), Escrowed to Maturity,

      

7.50%, 5/1/14

      1,000      1,248

Corona-Norca Unified School District Capital Appreciation G.O. Unlimited Bonds (Assured Guaranty Insured),

      

0.00%, 8/1/23

      1,000      441

0.00%, 8/1/24

      1,000      410

Desert Community College District Capital Appreciation G.O. Unlimited Bonds, Series C (FSA Insured),

      

0.00%, 8/1/26

      3,000      1,080

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      1,073

Eastern Municipal Water District Water & Sewer COP, Series H,

      

5.00%, 7/1/33

      2,000      1,911

El Dorado Irrigation District COP, Series 2009-A (Assured Guaranty Insured),

      

4.00%, 8/1/18

      1,215      1,195

6.25%, 8/1/29

      3,500      3,645

Fairfield City COP, Series A, Fairfield City Water Financing (XLCA Insured),

      

5.00%, 4/1/19

      2,000      1,961

Fremont-Newark Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured),

      

5.38%, 8/1/18

      1,350      1,423

5.38%, 8/1/19

      625      659

Glendale Unified School District G.O. Unlimited Bonds, Series D (NATL-RE Insured),

      

5.38%, 9/1/18

      1,000      1,046

Golden State Tobacco Securitization Corp. Enhanced Asset Backed Revenue Bonds, Series B (AMBAC Insured), Prefunded,

      

5.00%, 6/1/13

      2,500      2,747

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed (AMBAC Insured),

      

5.00%, 6/1/21

      1,000      892

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series B, Enhanced Asset Backed, Escrowed to Maturity,

      

5.00%, 6/1/10

      2,000      2,070

Hillsborough School District G.O. Unlimited Bonds Anticipation Notes,

      

0.00%, 9/1/13

      2,000      1,741

Kern Community College District Refunding COP, (AMBAC Insured),

      

5.00%, Mandatory Put 4/1/10

      2,700      2,773

Long Beach Unified School District G.O Unlimited Bonds, Election of 2008, Series A,

      

5.50%, 8/1/27

      850      894

Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured),

      

4.75%, 7/1/15

      1,250      1,264

Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured), Prerefunded,

      

4.75%, 7/1/09

      850      859

Los Angeles Department of Water & Power Revenue Bonds, Series A (NATL-RE IBC Insured),

      

5.00%, 7/1/24

      1,000      1,000

Los Angeles Department of Water & Power Revenue Bonds, Series B,

      

5.25%, 7/1/23

      1,500      1,592

Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series C (NATL-RE Insured),

      

5.00%, 7/1/29

      1,000      999

Los Angeles Unified School District G.O. Unlimited Bonds, Election of 1997, Series F (FGIC Insured), Prerefunded,

      

5.00%, 7/1/13

      545      617

Los Angeles Unified School District G.O. Unlimited Bonds, Series D,

      

5.00%, 7/1/18

      5,000      5,295

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL     
     AMOUNT    VALUE
     (000S)    (000S)

MUNICIPAL BONDS - 88.0% continued

      

California - 86.2% continued

      

Lucia Mar Unified School District G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured),

      

5.25%, 8/1/22

    $ 1,300    $ 1,345

Metropolitan Water District of Southern California Waterworks Revenue Bonds, Series A, Prerefunded,

      

5.50%, 7/1/09

      1,350      1,364

Modesto Wastewater Revenue Refunding Bonds, Series A (FSA Insured),

      

5.25%, 11/1/18

      1,000      1,072

Newark Unified School District Capital Appreciation G.O. Unlimited Bonds, Series D, Election of 1997 (FSA Insured),

      

0.00%, 8/1/24

      2,430      995

Orange County Water District COP, Series B (NATL-RE Insured), Prerefunded,

      

5.38%, 8/15/13

      1,000      1,148

Palm Springs Unified School District G.O. Unlimited Bonds, Series B, Election of 2004 (FSA Insured),

      

4.75%, 8/1/33

      2,400      2,228

Pasadena City Refunding COP, Series C,

      

4.75%, 2/1/38

      2,500      2,295

Poway Unified School Facilities Improvement District No. 2007-1 G.O. Unlimited Bonds, Series A, Election 2008,

      

0.00%, 8/1/20

      3,280      1,756

Redlands Unified School District G.O. Unlimited Bonds, Election of 2008 (FSA Insured),

      

5.00%, 7/1/28

      500      498

5.00%, 7/1/29

      1,000      985

Redondo Beach Unified School District G.O. Unlimited Bonds, Series A, Election 2008,

      

5.13%, 8/1/37

      2,000      1,926

Rescue Union School District COP, (Assured Guaranty Insured),

      

4.38%, 10/1/13

      2,775      2,972

Ross Elementary School District G.O. Unlimited Bonds, Election 2006 (NATL-RE Insured),

      

5.25%, 8/1/27

      455      466

Sacramento County COP, Animal Healthcare/Youth Detention (AMBAC Insured),

      

5.00%, 10/1/26

      1,490      1,445

Sacramento County Sanitation District Financing Authority Revenue Bonds, Series A,

      

5.60%, 12/1/16

      915      918

Sacramento Municipal Utility District Electric Revenue Bonds, Series K (AMBAC Insured),

      

5.25%, 7/1/24

      2,000      1,998

Sacramento Municipal Utility District Electric Revenue Bonds, Series U (FSA Insured),

      

5.00%, 8/15/19

      1,000      1,059

San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Series A,

      

4.00%, 5/15/20

      1,495      1,415

San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds, Series B,

      

5.00%, 5/15/21

      1,205      1,230

San Diego Regional Building Authority Lease Revenue Bonds, Series A, County Operations Center and Annex Redevelopment Project,

      

4.00%, 2/1/19

      3,615      3,606

San Diego Unified School District G.O. Unlimited Refunding Bonds, Series E-2, Election 1998, (FSA Insured),

      

5.50%, 7/1/27

      1,500      1,629

San Francisco City & County Airport Commission International Airport Revenue Refunding Bonds, Second Series Issue 20 (NATL-RE Insured),

     

4.75%, 5/1/15

      500      503

San Francisco City & County Airports Commission International Airport Revenue Refunding Bonds, Second Series - Issue 32F (NATL-RE FGIC Insured),

      

5.00%, 5/1/15

      775      821

San Francisco City & County Airports Commission International Airport Revenue Refunding Bonds, Second Series - Issue 34F (Assured Guaranty Insured),

      

5.00%, 5/1/16

      2,500      2,693

San Francisco State Building Authority Lease Revenue Refunding Bonds, Series A, Civic Center (NATL-RE FGIC Insured),

      

5.00%, 12/1/15

      2,000      2,075

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.0% continued

      

California - 86.2% continued

      

San Gabriel Unified School District G.O. Unlimited Bonds, Series A, Unrefunded Balance (FSA Insured),

      

5.38%, 8/1/18

    $ 180    $ 192

San Joaquin County COP, County Administration Building (NATL-RE Insured),

      

4.75%, 11/15/33

      1,000      865

San Jose Airport Revenue Bonds, Series A (NATL-RE FGIC Insured),

      

5.25%, 3/1/16

      1,000      1,022

San Jose Redevelopment Agency Tax Allocation Bonds, Series A (NATL-RE Insured),

      

5.00%, 8/1/15

      3,070      3,088

San Jose Redevelopment Agency Tax Allocation Refunding Bonds, Series A, Merged Area Redevelopment Project (NATL-RE Insured),

      

4.25%, 8/1/15

      5,000      4,826

San Juan Unified School District G.O. Unlimited Bonds, Election of 2002 (NATL-RE FGIC Insured),

      

5.00%, 8/1/25

      925      925

San Marcos PFA Capital Appreciation Custom Receipts Revenue Bonds, Escrowed to Maturity,

      

0.00%, 7/1/11

      1,000      973

San Mateo County Community College District G.O. Unlimited Bonds, Series A, Election of 2001 (NATL-RE FGIC Insured),

      

5.00%, 9/1/21

      1,000      1,028

San Mateo County Transit District Revenue Bonds, Series A (NATL-RE Insured), Prerefunded,

      

5.00%, 6/1/10

      575      585

San Mateo County Transportation District Sales Tax Revenue Refunding Bonds, Series A (NATL-RE Insured),

      

4.75%, 6/1/28

      3,785      3,800

Santa Ana Unified School District G.O. Unlimited Bonds, Series A, Election 2008,

      

5.50%, 8/1/30

      2,000      2,026

Santa Rosa City Wastewater Revenue Bonds, Series A (FSA Insured),

      

5.25%, 9/1/26

      2,500      2,575

5.25%, 9/1/27

      1,255      1,285

Sequoia Union High School District G.O. Unlimited Bonds, Series A, Election 2008,

      

5.00%, 7/1/32

      1,500      1,460

South Orange County Public Financing Authority Special Tax Revenue Refunding Bonds, Series A, Foothill Area (NATL-RE FGIC Insured),

      

5.25%, 8/15/14

      1,295      1,329

5.25%, 8/15/18

      2,500      2,458

Southern California Public Power Authority Capital Appreciation Subordinate Revenue Refunding Bonds, Southtran Transmission Project,

      

0.00%, 7/1/14

      1,000      832

Southern California Public Power Authority Power Project Revenue Bonds,

      

6.75%, 7/1/12

      2,100      2,387

Southern California Public Power Authority Revenue Bonds, Series A, Natural Gas Project No. 1,

      

5.25%, 11/1/25

      1,805      1,615

Southern California Public Power Authority Subordinate Revenue Refunding Bond, Series A, Southtran Transmission Project,

      

5.00%, 7/1/20

      2,000      2,083

University of California Revenue Bonds, Series A, Limited Project (NATL-RE Insured),

      

4.75%, 5/15/26

      1,900      1,878

University of California Revenue Bonds, Series C (NATL-RE Insured),

      

4.75%, 5/15/31

      1,250      1,189

University of California Revenue Bonds, Series F (FSA Insured),

      

4.75%, 5/15/24

      200      200

Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election 2008,

      

5.25%, 8/1/27

      2,125      2,174

Ventura County Community College District Capital Appreciation G.O. Unlimited Bonds, Series C, Election 2002,

      

0.00%, 8/1/17

      1,615      1,093

0.00%, 8/1/18

      1,635      1,019

Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002,

      

5.50%, 8/1/33

      1,000      1,014

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.0% continued

      

California - 86.2% continued

      

Washington Township Healthcare District Revenue Bonds,

      

5.00%, 7/1/09

    $ 250    $ 250

West Valley-Mission Community College District Capital Appreciation G.O. Unlimited Bonds, Series B,

      

0.00%, 8/1/16

      1,115      828

0.00%, 8/1/17

      1,100      764
         
        170,915
         

Puerto Rico - 1.6%

      

Puerto Rico Commonwealth Appropriation Public Finance Corp. Revenue Bonds, Series E (AMBAC Insured), Escrowed to Maturity,

      

5.50%, 8/1/27

      1,550      1,732

Puerto Rico Commonwealth Highway & Transportation Authority Revenue Bonds (FGIC-TCRS Insured),

      

5.75%, 7/1/20

      1,500      1,451
         
        3,183
         

Virgin Islands - 0.2%

      

Virgin Islands PFA Revenue Bonds, Series A, Gross Receipts Tax Lien Note,

      

5.63%, 10/1/10

      370      379
         

Total Municipal Bonds

      
         

(Cost $176,530)

         174,477

SHORT-TERM INVESTMENTS - 9.5 %

      

ABAG Finance Authority for Nonprofit Corps. Revenue VRDB, Series 2006-A, Elder Care Alliance (Sovereign Bank FSB LOC),

      

0.22%, 7/2/09

      395      395

Antelope Valley-East Kern Water Agency COP VRDB, Series A-2 (Wells Fargo Bank N.A. LOC),

      

0.13%, 7/2/09

      300      300

Bay Area Toll Authority Revenue VRDB, Series B, Toll Bridge,

      

0.12%, 7/2/09

      400      400

California Health Facilities Financing Authority Revenue VRDB, Series J, Health Facilities-Catholic (Bank of America N.A. LOC),

      

0.24%, 7/1/09

      100      100

California Infrastructure & Economic Development Bank Revenue VRDB, Pinewood School Project (Comerica Bank LOC),

      

0.83%, 7/2/09

      100      100

California Infrastructure & Economic Development Bank Revenue VRDB, Series F, California Academy (Wells Fargo N.A. LOC),

      

0.15%, 7/1/09

      1,000      1,000

California Pollution Control Financing Authority Revenue Refunding VRDB, Series C, Pacific Gas & Electric (JP Morgan Chase Bank LOC),

      

0.28%, 7/1/09

      300      300

California State Department of Water Resources Power Supply Revenue VRDB, Series B-2 (BNP Paribas LOC),

      

0.25%, 7/1/09

      1,600      1,600

California State Department of Water Resources Power Supply Revenue VRDB, Series C-7 (FSA Insured),

      

0.70%, 7/2/09

      825      825

California State Department of Water Resources Power Supply Revenue VRDB, Subseries F-4 (Bank Of America N.A. LOC),

      

0.13%, 7/1/09

      300      300

California State Department of Water Resources Power Supply Revenue VRDB, Subseries G-1 (Bank of Nova Scotia LOC),

      

0.17%, 7/2/09

      150      150

California State Department of Water Resources Power Supply Revenue VRDB, SubSeries G-3 (FSA Insured),

      

0.70%, 7/2/09

      500      500

California State Economic Recovery VRDB, Series C-16 (FSA ST Gtd.),

      

1.00%, 7/1/09

      1,625      1,625

California State G.O. Unlimited VRDB, Series A, Subseries A-3 (Bank Of America N.A. LOC),

      

0.22%, 7/1/09

      500      500

California Statewide Communities Development Authority Revenue VRDB, Series A, Sweep Loan Program (Citibank N.A. LOC),

      

0.22%, 7/1/09

      800      800

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT - TERM INVESTMENTS - 9.5% continued

   

California Statewide Communities Development Authority VRDB, Senior Living Facility (Sovergeign Bank FSB LOC),

      

0.22%, 7/2/09

    $ 1,300    $ 1,300

Irvine Improvement Board Act of 1915 Special Assessment Bonds, Series A, District 4-20 (KBC Bank N.V. LOC),

      

0.25%, 7/1/09

      4,000      4,000

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue Refunding VRDB, Series A-1, Property A - First Tier,

      

0.25%, 7/2/09

      2,000      2,000

Metropolitan Water District of Southern California Waterworks Revenue Bonds, VRDB, Series C-2,

      

0.20%, 7/1/09

      400      400

Metropolitan Water District of Southern California Waterworks Revenue VRDB, Series B-3,

      

0.17%, 7/1/09

      900      900

Northern California Power Agency Revenue Refunding VRDB, Series A, Hydroelectic Project (Dexia Credit Local LOC),

      

0.43%, 7/1/09

      200      200

San Francisco City & County Redevelopment Agency Multifamily Revenue VRDB, Series A, Bayside Village Project (Bank One Arizona N.A. LOC),

     

0.19%, 7/1/09

      200      200

Santa Clara Valley Transportation Authority Sales Tax Revenue Refunding VRDB, Series A,

      

0.60%, 7/2/09

      990      990
         

Total Short-Term Investments

      
         

(Cost $18,885)

         18,885

Total Investments - 97.5%

      
         

(Cost $195,415)

         193,362

Other Assets less Liabilities - 2.5%

         4,944
         

NET ASSETS - 100.0%

       $ 198,306
         

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the California Intermediate Tax-Exempt Fund were:

 

INDUSTRY SECTOR

    % OF INVESTMENTS  

Facilities

    6.5 % 

General

    24.1   

General Obligation

    11.6   

Higher Education

    6.2   

Power

    7.8   

School District

    16.2   

Water

    7.0   

All Other Sectors Less Than 5%

    20.6   
      

Total

    100.00 % 
      

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 195,415   
        

Gross tax appreciation of investments

    $ 3,011   

Gross tax depreciation of investments

      (5,064 ) 
        

Net tax depreciation of investments

    $ (2,053 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the California Intermediate Tax-Exempt Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

California Intermediate

           

Tax-Exempt Fund

    $ —      $ 193,362 (1)    $ —      $ 193,362

 

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

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (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 total net assets.

Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, for floating rate securities, the current reset rate or, for interest-only or principal only securities, the current effective yield.

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

Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are 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

FNMA - Federal National Mortgage Association

FSA - Financial Security Assurance

FSB - Federal Savings Bank

GNMA - Government National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

IBC - Insured Bond Certificates

LOC - Letter of Credit

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PFA - Public Finance Authority

SFM - Single Family Mortgage

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand Bonds

XLCA - XL Capital Assurance

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

CALIFORNIA TAX-EXEMPT FUND

    JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 99.9%

      

California - 99.5%

      

Alameda County Unified School District Capital Appreciation G.O. Unlimited Bonds, Series A (FSA Insured),

      

0.00%, 8/1/29

    $ 2,000    $ 548

Alameda County Water District Revenue Refunding Bonds (NATL-RE Insured),

      

4.75%, 6/1/20

      2,000      2,001

Alhambra Unified School District Elementary School Improvement G.O. Unlimited Bonds, Series A, Election 2008 (Assured Guaranty Insured),

      

5.50%, 8/1/33

      1,000      1,025

Anaheim Union High School District Capital Appreciation G.O. Unlimited Bonds, Election 2002 (NATL-RE Insured),

      

0.00%, 8/1/28

      575      168

Antelope Valley Community College District Capital Appreciation G.O. Unlimited Bonds, Series C, Election 2004 (NATL-RE Insured),

      

0.00%, 8/1/29

      6,000      1,691

Arcadia Unified School District Capital Appreciation G.O. Unlimited Bonds, Series A, Election 2006 (FSA Insured),

      

0.00%, 8/1/25

      2,710      1,026

Aztec Shops Ltd. Auxiliary Organization Student Housing Revenue Bonds, San Diego State University,

      

6.00%, 9/1/31

      2,000      1,797

Bay Area Government Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (NATL-RE FGIC Insured),

      

5.00%, 8/1/17

      5,000      4,920

Brentwood Infrastructure Financing Authority Water Revenue Bonds,

      

5.75%, 7/1/38

      1,000      1,043

California Educational Facilities Authority Capital Appreciation Revenue Bonds, Loyola Marymount (NATL-RE Insured), Prerefunded,

      

0.00%, 10/1/09

      4,435      1,340

0.00%, 10/1/09

      3,435      911

California Educational Facilities Authority Revenue Bonds, Series A, Loyola Marymount University (NATL-RE Insured),

      

0.00%, 10/1/19

      725      415

California Educational Facilities Authority Revenue Bonds, University of the Pacific,

      

5.00%, 11/1/30

      1,500      1,304

California Infrastructure & Economic Development Bank Revenue Bonds,

      

5.25%, 2/1/33

      1,000      926

California Infrastructure & Economic Development Bank Revenue Bonds, Series A, Bay Area Toll Bridges - First Lien (AMBAC Insured), Prerefunded,

      

5.13%, 7/1/26

      1,000      1,130

California Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute,

      

5.75%, 7/1/30

      250      251

California State G.O. Unlimited Bonds, Unrefunded Balance,

      

5.13%, 6/1/24

      25      24

California State G.O. Unlimited Refunding Bonds,

      

4.38%, 10/1/17

      1,390      1,348

5.00%, 8/1/20

      1,000      976

California State G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured),

      

4.75%, 2/1/29

      1,000      845

California State Public Works Board Lease Revenue Bonds, Series A, Department of Mental Health,

      

5.13%, 6/1/29

      1,500      1,329

California State Public Works Board Lease Revenue Bonds, Series F, Department of Corrections & Rehabilitation,

      

5.00%, 11/1/23

      1,610      1,488

California State Public Works Board Lease Revenue Refunding Bonds, Series B, Various Community College Projects (AMBAC Insured),

      

5.63%, 3/1/16

      1,000      1,003

California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation,

      

5.00%, 6/1/19

      500      485

California State Public Works Board Revenue Bonds, Series A, Department of Buildings,

      

6.00%, 4/1/25

      1,400      1,409

California State University Foundation Revenue Bonds, Series A, Sacramento Auxiliary (NATL-RE Insured), Prerefunded,

      

5.50%, 10/1/12

      500      568

5.50%, 10/1/12

      500      568

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 99.9% continued

      

California - 99.5% continued

      

California State University Systemwide Revenue Bonds, Series 2009-A,

      

5.25%, 11/1/34

    $ 2,500    $ 2,431

California State Various Purpose G.O. Unlimited Bonds,

      

5.75%, 4/1/31

      2,000      1,942

California Statewide Communities Development Authority PCR Refunding Bonds, Series D, Southern California Education (FGIC Insured),

      

4.25%, Mandatory Put 11/1/16

      500      484

California Statewide Communities Development Authority Student Housing Revenue Bonds, Series A, East Campus Apartments LLC (ACA Insured),

      

5.63%, 8/1/34

      1,000      834

Carlsbad Unified School District G.O. Unlimited Bonds, Series B,

      

5.25%, 5/1/27

      1,000      1,029

Corona-Norco Unified School District Capital Appreciation G.O. Unlimited Bonds, Series B, Election of 2006 (Assured Guaranty Insured),

      

5.13%, 8/1/29

      2,560      2,566

Desert Community College District Capital Appreciation G.O. Unlimited Bonds, Series C (FSA Insured),

      

0.00%, 8/1/26

      4,155      1,496

Dry Creek Joint Elementary School District Capital Appreciation G.O. Unlimited Bonds, Series A (FSA Insured),

      

0.00%, 8/1/09

      400      400

El Dorado Irrigation District COP, Series 2009-A (Assured Guaranty Insured),

      

6.25%, 8/1/29

      1,500      1,562

Escondido Union School District G.O. Unlimited Refunding Bonds, Series B (NATL-RE FGIC Insured),

      

4.50%, 8/1/25

      1,000      944

Fairfield City COP, Series A (XLCA Insured),

      

5.00%, 4/1/19

      2,370      2,324

Folsom G.O. Unlimited Bonds, Series D, School Facilities Project (NATL-RE FGIC Insured),

      

5.70%, 8/1/13

      200      201

Franklin-McKinley School District G.O. Unlimited Bonds, Series B, Election 2004 (FSA Insured),

      

5.25%, 8/1/32

      1,500      1,502

Fremont-Newark Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured),

      

5.38%, 8/1/19

      750      791

Glendale Unified School District G.O. Unlimited Bonds, Series D (NATL-RE Insured),

      

5.38%, 9/1/18

      665      696

Golden State Tobacco Securitization Corp. Revenue Bonds, Series B, Enhanced Asset Backed, Prerefunded,

      

5.63%, 6/1/13

      2,000      2,244

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed,

      

5.00%, 6/1/45

      2,000      1,607

Hayward Unified School District G.O. Unlimited Bonds, Election of 2008,

      

5.25%, 8/1/29

      1,500      1,518

Imperial Irrigation District Refunding COP, Electric Systems Project (NATL-RE Insured),

      

5.20%, 11/1/09

      85      86

Lemoore Union High School District G.O. Unlimited Bonds (AMBAC Insured),

      

6.00%, 1/1/12

      200      217

Long Beach Bond Finance Authority Natural Gas Purpose Revenue Bonds, Series A,

      

5.50%, 11/15/28

      1,000      880

Long Beach Unified School District G.O Unlimited Revenue Bonds, Series A, Election of 2008,

      

5.50%, 8/1/27

      1,000      1,052

Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured),

      

4.75%, 7/1/15

      1,750      1,770

Los Angeles County Metropolitan Transportation Authority Sales TRB, Series B, Property A-First Tier (FSA Insured), Prerefunded,

      

4.75%, 7/1/09

      1,150      1,162

Los Angeles Department of Water & Power Revenue Bonds, Series B,

      

5.00%, 7/1/24

      1,375      1,415

Los Angeles Department of Water & Power Revenue Bonds, Subseries A-1 (AMBAC Insured),

      

5.00%, 7/1/37

      2,160      2,090

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 99.9% continued

   

California - 99.5% continued

      

Los Angeles Harbor Department Revenue Bonds, Escrowed to Maturity,

      

7.60%, 10/1/18

    $ 35    $ 43

Los Angeles Harbor Department Revenue Refunding Bonds, Series C,

      

5.00%, 8/1/31(1)

      3,645      3,508

Los Angeles Wastewater System Revenue Refunding Bonds, Series 2009-A,

      

5.00%, 6/1/39

      2,000      1,908

Lucia Mar Unified School District G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured),

      

5.25%, 8/1/22

      700      724

Modesto Irrigation District Capital Improvements COP, Series A,

      

5.75%, 10/1/29

      1,500      1,521

6.00%, 10/1/39

      2,000      2,060

Modesto Irrigation District Refunding COP, Series B, Capital Improvements Projects,

      

5.30%, 7/1/22

      1,510      1,510

Monterey Peninsula Community College District Capital Appreciation G.O. Unlimited Bonds, Series C (FSA Insured),

      

0.00%, 8/1/26

      5,505      1,943

Monterey Regional Water Pollution Control Agency Wastewater Revenue Bonds (AMBAC Insured),

      

5.00%, 6/1/24

      1,025      1,016

Natomas Unified School District G.O. Unlimited Bonds, Series B, Election 2002 (NATL-RE FGIC Insured),

      

5.00%, 9/1/27

      1,000      972

New Haven Unified School District G.O. Unlimited Refunding Bonds (FSA Insured),

      

5.75%, 8/1/20

      320      346

Palomar Pomerado Health Capital Appreciation G.O. Unlimited Bonds, Series A, Election of 2004 (Assured Guaranty Insured),

      

0.00%, 8/1/38

      5,000      2,860

Pasadena City Refunding COP, Series C,

      

4.75%, 2/1/38

      2,500      2,295

Perris Unified High School District Capital Appreciation G.O. Unlimited Bonds, Series B (NATL-RE FGIC Insured),

      

0.00%, 9/1/26

      1,000      341

Poway Unified School Facilities Improvement District No. 2007-1 G.O. Unlimited Bonds, Series A, Election 2008,

      

0.00%, 8/1/25

      5,000      1,826

Rio Hondo Community College District G.O. Unlimited Bonds, Series A, School Facilities Construction & Improvement (NATL-RE Insured), Prerefunded,

      

5.25%, 8/1/14

      2,000      2,308

Ross Elementary School District G.O. Unlimited Bonds, Election 2006 (NATL-RE Insured),

      

5.25%, 8/1/27

      850      871

Sacramento County Sanitation District Financing Authority Revenue Bonds, Series A,

      

5.60%, 12/1/16

      305      306

Sacramento County Sanitation District Financing Authority Revenue Refunding Bonds (AMBAC Insured),

      

5.00%, 12/1/27

      1,500      1,477

Sacramento Municipal Utility District Electric Revenue Bonds, Series K (AMBAC Insured),

      

5.25%, 7/1/24

      500      499

San Diego County Water Authority Revenue COP, Series 2008 A (FSA Insured),

      

5.00%, 5/1/38

      2,000      1,917

San Diego Public Facilities Financing Authority Sewer Revenue Bond, Series A,

      

5.00%, 5/15/28

      1,500      1,459

San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bond, Series B,

      

5.25%, 5/15/25

      1,170      1,195

San Diego Regional Building Authority Lease Revenue Bonds, Series 2009-A, County Operations Center and Annex Redevelopment Project,

      

5.00%, 2/1/22

      1,090      1,124

San Diego Unified School District Capital Appreciation G.O. Unlimited Bonds, Series A, Election of 2008,

      

0.00%, 7/1/31

      5,000      1,256

San Francisco City & County Airport Commission International Airport Revenue Refunding Bonds, Second Series Issue 20 (NATL-RE Insured),

     

4.75%, 5/1/15

      1,000      1,006

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 99.9% continued

   

California - 99.5% continued

      

San Francisco City & County Airport Commission International Airport Revenue Refunding Bonds, Second Series Issue 34F (Assured Guaranty Insured),

      

5.00%, 5/1/16

    $ 500    $ 539

San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series A (FSA Insured),

      

4.75%, 11/1/36

      1,500      1,386

San Francisco City & County Unified School District G.O. Unlimited Bonds, Series C, Election 2003 (NATL-RE Insured),

      

4.50%, 6/15/26

      1,490      1,419

San Francisco State Building Authority Lease Revenue Bonds, Series A, Department of General Services,

      

5.00%, 10/1/13

      4,250      4,521

San Gabriel Unified School District G.O. Unlimited Bonds Unrefunded Balance, Series A (FSA Insured),

      

5.38%, 8/1/19

      200      213

5.38%, 8/1/20

      225      239

San Joaquin County COP, County Administration Building (NATL-RE Insured),

      

4.75%, 11/15/33

      1,000      865

San Jose Airport Revenue Bonds, Series A (NATL-RE FGIC Insured),

      

5.25%, 3/1/16

      440      450

San Jose Unified School District Santa Clara County G.O. Unlimited Bonds, Series A (FSA Insured),

      

5.38%, 8/1/19

      500      527

San Juan Unified School District G.O. Unlimited Bonds, Election of 2002 (NATL-RE FGIC Insured),

      

5.00%, 8/1/25

      1,000      1,000

San Mateo County Joint Powers Financing Authority Revenue Refunding Bonds, Series A, Youth Service Campus,

      

5.00%, 7/15/36

      1,300      1,211

San Mateo County Transit District Revenue Bonds, Series A (NATL-RE Insured), Prerefunded,

      

4.50%, 6/1/10

      1,000      1,013

5.00%, 6/1/10

      500      508

San Mateo County Transportation District Sales Tax Revenue Refunding Bonds, Series A (NATL-RE Insured),

      

4.75%, 6/1/28

      1,000      1,004

Santa Ana Unified School District G.O. Unlimited Bonds, Series A, Election 2008,

      

5.13%, 8/1/33

      600      572

Santa Margarita-Dana Point Authority Revenue Bonds, Series B, California Improvements Districts 3, 3a, 4, & 4a (NATL-RE Insured),

      

7.25%, 8/1/09

      1,150      1,154

Santa Monica Community College District Capital Appreciation G.O. Unlimited Bonds, Series 2009-C, Election 2004,

      

0.00%, 8/1/24

      3,200      1,349

Santa Rosa City Wastewater Revenue Bonds, Series A (FSA Insured),

      

5.25%, 9/1/26

      500      515

Santa Rosa Wastewater Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured),

      

5.25%, 9/1/16

      35      37

Sequoia Union High School District G.O. Unlimited, Series A, Election 2008,

      

5.00%, 7/1/30

      2,040      2,011

5.00%, 7/1/32

      1,000      973

Southern California Public Power Authority Revenue Bonds, Series A, Natural Gas Project No. 1,

      

5.25%, 11/1/25

      1,000      895

5.00%, 11/1/33

      1,000      803

Southern California Public Power Authority Revenue Bonds, Series B, Southern Transmission Project,

      

6.00%, 7/1/27

      2,520      2,662

Southern California Public Power Authority Subordinate Revenue Refunding Bond, Series A, Southern Transmission Project,

      

5.00%, 7/1/20

      1,670      1,739

Torrance Hospital Revenue Bonds, Series A, Torrance Memorial Medical Center,

      

6.00%, 6/1/22

      500      509

University of California Revenue Bonds, Series A, Limited Project (NATL-RE Insured),

      

4.75%, 5/15/26

      1,000      989

University of California Revenue Bonds, Series C (NATL-RE Insured),

      

4.75%, 5/15/31

      1,000      952

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

MUNICIPAL BONDS - 99.9% continued

   

California - 99.5% continued

      

Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election 2008,

      

5.25%, 8/1/27

    $ 2,500    $ 2,558   

Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002,

      

5.50%, 8/1/33

      2,065      2,094   

Vista Unified School District G.O. Unlimited Bonds Unrefunded Balance, Series A (FSA Insured),

      

5.38%, 8/1/16

      100      108   

5.38%, 8/1/17

      190      205   

Walnut Valley Unified School District G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured),

      

7.20%, 2/1/16

      977      1,113   

Washington Township Healthcare District Revenue Bonds,

      

5.00%, 7/1/09

      405      405   

5.00%, 7/1/11

      500      506   

5.00%, 7/1/12

      1,270      1,284   

West Kern Community College District Capital Appreciation G.O. Unlimited Bonds, Series B, Election 2004 (XLCA Insured),

      

0.00%, 11/1/21

      1,280      615   
           
        139,016   
           

Virgin Islands - 0.4%

      

Virgin Islands PFA Revenue Bonds, Series A, Gross Receipts Tax Lien Note,

      

5.63%, 10/1/10

      555      568   
           

Total Municipal Bonds

      
           

(Cost $140,189)

         139,584   

SHORT-TERM INVESTMENTS - 0.4%

   

Metropolitan Water District of Southern California Revenue Bonds, VRDB, Series C-2,

      

0.20%, 7/1/09

      600      600   
           

Total Short-Term Investments

      
           

(Cost $600)

         600   
           

Total Investments - 100.3%

      
           

(Cost $140,789)

         140,184   

Liabilities less Other Assets - (0.3)%

         (431 ) 
           

NET ASSETS - 100.0%

       $ 139,753   

 

(1) When-Issued Security.

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the California Tax-Exempt Fund were:

 

INDUSTRY SECTOR

    % OF INVESTMENTS  

Facilities

    6.5 % 

General

    17.7   

General Obligation

    14.6   

Higer Education

    9.4   

School District

    21.4   

Transportation

    6.8   

Water

    8.7   

All other sectors less than 5%

    14.9   
      

Total

    100.0 % 
      

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands

 

Federal tax cost of investments

    $ 140,789   
        

Gross tax appreciation of investments

    $ 4,103   

Gross tax depreciation of investments

      (4,708 ) 
        

Net tax depreciation of investments

    $ (605 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

CALIFORNIA TAX-EXEMPT FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the California Tax-Exempt Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

California Tax-Exempt Fund

    $ —      $ 140,184 (1)    $ —      $ 140,184
                            

 

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

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

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PFA - Public Finance Authority

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand Bonds

XLCA - XL Capital Assurance

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

HIGH YIELD MUNICIPAL FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9%

      

Alabama - 0.4%

      

Butler Industrial Development Board Solid Waste Disposal Revenue Refunding Bonds (AMT), Georgia-Pacific Corp. Project,

      

5.75%, 9/1/28

    $ 1,000    $ 719

Camden Industrial Development Board Revenue Refunding Bonds, Series A, Weyerhaeuser Company, Prerefunded,

      

6.13%, 12/1/13

      1,000      1,159
         
        1,878
         

Alaska - 0.2%

      

Alaska IDA & Export Authority Revenue Bonds, Boys & Girls Home,

      

5.88%, 12/1/27

      1,500      1,014
         

Arizona - 3.8%

      

Arizona Health Facilities Authority Health Care Facilities Revenue Bonds, Beatitudes Campus Project,

      

5.20%, 10/1/37

      2,500      1,530

Arizona Health Facilities Authority Hospital System Revenue Bonds, John C. Lincoln Health Network, Prerefunded,

      

6.88%, 12/1/10

      1,000      1,098

Coconino County PCR Bonds, Series A (AMT), Tucson Electric Power Co.,

      

7.13%, 10/1/32

      1,000      878

Flagstaff IDA Revenue Refunding Bonds, Northern Arizona Senior Living Community Project,

      

5.70%, 7/1/42

      3,000      2,094

Glendale IDA Revenue Refunding Bonds, Midwestern University,

      

5.00%, 5/15/31

      2,000      1,819

Navajo County PCR Refunding Bonds, Series B, Arizona Public Service Company Cholla Project,

      

5.50%, Mandatory Put 6/1/14

      1,000      1,003

Navajo County PCR Refunding Bonds, Series E, Arizona Public Service Company Cholla Project,

      

5.75%, Mandatory Put 6/1/16

      3,250      3,217

Peoria IDA Revenue Refunding Bonds, Series A, Sierra Winds Life,

      

6.25%, 8/15/20

      500      468

Pima County IDA Revenue Bonds, Series A, American Charter School Foundation,

      

5.63%, 7/1/38

      2,440      1,704

Salt River Project Agricultural Improvement & Power District Electric System Revenue Bonds, Series A,

      

5.00%, 1/1/33

      3,000      2,988

Yavapai County IDA Hospital Facilities Revenue Bonds, Series A, Yavapai Regional Medical Center,

      

6.00%, 8/1/33

      500      453
         
        17,252
         

Arkansas - 0.1%

      

Little Rock Hotel & Restaurant Gross Receipts Refunding TRB,

      

7.38%, 8/1/15

      500      581
         

California - 3.9%

      

California Educational Facilities Authority Revenue Bonds, Dominican University,

      

5.00%, 12/1/25

      890      724

5.00%, 12/1/36

      2,000      1,477

California Municipal Finance Authority Revenue Bonds, Biola University,

      

5.88%, 10/1/34

      1,000      904

California State Department of Water Resources Power Supply Revenue Bonds, Series A,

      

6.00%, 5/1/14

      500      543

California State Public Works Board Lease Revenue Bonds, Series C, Department of Corrections,

      

5.50%, 6/1/15

      1,000      1,027

California State Various Purpose G.O. Unlimited Bonds,

      

5.75%, 4/1/31

      2,500      2,427

California Statewide Communities Development Authority Revenue Bonds, Series A, California Baptist University,

      

5.50%, 11/1/38

      2,000      1,253

Chula Vista Industrial Development Revenue Bonds, Series D, San Diego Gas & Electric Company,

      

5.88%, 1/1/34

      3,000      3,003

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed,

      

5.00%, 6/1/45

      2,000      1,608

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A-5, Asset Backed, Prerefunded,

      

7.88%, 6/1/13

      500      602

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

      

California - 3.9% continued

      

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series B, Enhanced Asset Backed, Prerefunded,

      

5.50%, 6/1/13

    $ 1,000    $ 1,118

San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Series A,

      

5.25%, 5/15/39

      3,165      2,996
         
        17,682
         

Colorado - 2.8%

      

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

      2,000      1,304

Denver City & County G.O. Unlimited Bonds, Series A, Better Denver & Zoo,

      

5.00%, 8/1/24

      2,500      2,676

E-470 Public Highway Authority Revenue Bonds, Series C1 (NATL-RE Insured),

      

5.50%, 9/1/24

      2,000      1,744

E-470 Public Highway Authority Revenue Bonds, Series D2 (NATL-RE Insured),

      

5.00%, Mandatory Put 9/2/13

      2,000      1,975

Prairie Center Metropolitan District No. 3 Limited Property Tax Supported Primary Improvements G.O. Limited Bonds, Series A,

      

5.40%, 12/15/31

      2,700      1,697

Stone Ridge Metropolitan District No. 2 G.O. Limited Bonds,

      

7.25%, 12/1/31

      3,500      2,510
         
        12,472
         

District of Columbia - 1.1%

      

District of Columbia Revenue Bonds, Methodist Home of the District of Columbia Issue,

      

6.00%, 1/1/20

      400      347

District of Columbia University Revenue Bonds, Series C, Georgetown University,

      

5.25%, Mandatory Put 4/1/23

      3,500      3,515

Washington D.C. Metropolitan Area Transit Authority Revenue Bonds, Series A,

      

5.13%, 7/1/32

      1,000      997
         
        4,859
         

Florida - 7.1%

      

Belmont Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B,

      

5.13%, 11/1/14(1)

      1,990      483

Broward County Airport Exempt Facility Revenue Bonds (AMT), Learjet, Inc. Project, Guaranteed by Bombardier, Inc.,

      

7.50%, 11/1/20

      3,430      3,100

Capital Trust Agency Revenue Bonds (AMT), Fort Lauderdale Project, Cargo Acquisition Companies Obligated Group,

      

5.75%, 1/1/32

      1,525      1,041

Crossings at Fleming Island Community Development District Special Assessment Revenue Refunding Bonds, Series C,

      

7.05%, 5/1/15

      400      373

Florida State Municipal Power Agency All Requirements Revenue Bonds,

      

5.75%, 10/1/27

      3,290      3,435

Halifax Hospital Medical Center & Improvement Refunding Revenue Bonds, Series A,

      

5.38%, 6/1/46

      2,000      1,547

Highlands County Health Facilities Authority Revenue Bonds, Series A, Adventist Health System/Sunbelt, Prerefunded,

      

6.00%, 11/15/11

      1,250      1,384

Hillsborough County IDA PCR Bonds, Series A, Tampa Electric Co. Project,

      

5.65%, 5/15/18

      2,000      2,070

Hillsborough County IDA PCR Bonds, Series E, Tampa Electric Co. Project,

      

5.10%, 10/1/13

      1,000      1,003

Islands at Doral III Community District Special Assessment Bonds, Series 2004-A,

      

5.90%, 5/1/35

      945      588

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

   

Florida - 7.1% continued

      

Jacksonville Econonomic Development Commission Common Health Care Facilities Revenue Refunding Bonds, Series A, Florida Proton Therapy Institution,

      

6.00%, 9/1/17

    $ 2,980    $ 2,815

Lee County IDA IDR Bonds, Series A, Lee County Community Charter School LLC Project,

      

5.25%, 6/15/27

      2,000      1,256

5.38%, 6/15/37

      2,000      1,165

Miami-Dade County Airport Revenue Bonds, Series A, Miami International Airport (Hub of the Americas),

      

5.50%, 10/1/41

      4,000      3,743

Palm Glades Community Development District Special Assessment Bonds, Series B,

      

4.85%, 8/1/11

      1,400      981

Reunion East Community Development District Special Assessment Bonds,

      

5.80%, 5/1/36

      800      427

Reunion West Community Development District Special Assessment Bonds,

      

6.25%, 5/1/36

      960      450

Seminole Indian Tribe of Florida Special Obligation Revenue Bonds, Series A,

      

5.75%, 10/1/22(2)

      1,000      905

5.25%, 10/1/27(2)

      2,000      1,653

South Village Community Development District Capital Improvement Revenue Bonds, Series A,

      

5.70%, 5/1/35

      955      565

Sterling Hill Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B,

      

5.50%, 11/1/10

      170      154

Tern Bay Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B,

      

5.00%, 5/1/15(1)

      2,475      866

Verano Center Community Development District Special Assessment Bonds, Series B, District No. 1 Infrastructure Project,

      

5.00%, 11/1/12

      750      589

Westchester Community Development District No. 1 Special Assessment Bonds, Community Infrastructure,

      

6.00%, 5/1/23

      2,145      1,518
         
        32,111
         

Georgia - 3.6%

      

Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds,

      

5.50%, 1/1/38

      3,500      3,655

Atlanta Tax Allocation Bonds, Princeton Lakes Project,

      

5.50%, 1/1/31

      1,035      731

Atlanta Water & Wastewater Revenue Bonds, Series A,

      

6.25%, 11/1/34

      3,500      3,518

Effingham County IDA PCR Refunding Bonds, Georgia Pacific Corp Project,

      

6.50%, 6/1/31

      2,000      1,595

Milledgeville-Baldwin County Development Authority Revenue Bonds, Georgia College & State University Foundation, Prerefunded,

      

6.00%, 9/1/14

      3,500      4,201

Municipal Electric Authority of Georgia Project One Subordinated Bonds, Series D, General Resolution Project,

      

6.00%, 1/1/23

      1,500      1,631

5.50%, 1/1/26

      1,000      1,036
         
        16,367
         

Idaho - 0.5%

      

Madison County Hospital Revenue COP,

      

5.25%, 9/1/26

      1,500      1,189

5.25%, 9/1/30

      1,500      1,122
         
        2,311
         

Illinois - 6.8%

      

Illinois Development Finance Authority Revenue Bonds, Series B, Midwestern University, Prerefunded,

      

6.00%, 5/15/11

      500      552

Illinois Educational Facilities Authority Student Housing Revenue Bonds, Educational Advancement Fund University Center Project, Prerefunded,

     

6.25%, 5/1/12

      750      861

Illinois Finance Authority PCR Refunding Bonds, Series C-1, Central Illinois Power-Amerencips Corp.,

      

5.95%, 8/15/26

      3,000      2,637

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

   

Illinois - 6.8% continued

      

Illinois Finance Authority Revenue Bonds, Series A, Elmhurst Memorial Healthcare,

      

5.63%, 1/1/37

    $ 3,750    $ 3,144

Illinois Finance Authority Revenue Bonds, Series A, Illinois Institute of Technology,

      

5.00%, 4/1/20

      3,000      2,624

Illinois Finance Authority Revenue Bonds, Series A, Landing at Plymouth Place Project,

      

6.00%, 5/15/37

      1,250      866

Illinois Finance Authority Revenue Bonds, Series A, Montgomery Place Project,

      

5.75%, 5/15/38

      2,950      1,895

Illinois Finance Authority Revenue Bonds, Series A, Provena Health,

      

7.75%, 8/15/34

      3,500      3,439

Illinois Finance Authority Revenue Bonds, Series A, Smith Village Project,

      

6.25%, 11/15/35

      3,000      2,307

Illinois Finance Authority Revenue Bonds, Series A, Three Crowns Park Plaza Project,

      

5.88%, 2/15/38

      2,500      1,839

Illinois Finance Authority Revenue Bonds, Silver Cross Hospital & Medical Centers,

      

6.88%, 8/15/38

      4,000      3,833

Illinois Finance Authority Revenue Refunding Bonds, Chicago Charter School Project,

      

5.00%, 12/1/36

      3,000      1,975

Illinois Finance Authority Student Housing Revenue Refunding Bonds, Series A, Educational Advancement Fund,

      

5.25%, 5/1/34

      4,485      3,257

Illinois Health Facilities Authority Revenue Bonds, Riverside Health System, Prerefunded,

      

6.00%, 11/15/12

      1,000      1,141
         
        30,370
         

Indiana - 3.4%

      

Indiana Health & Educational Facilities Financing Authority Hospital Revenue Bonds, Community Foundation Northwest Indiana,

      

5.50%, 3/1/37

      2,400      2,016

Indiana Health Facilities Financing Authority Hospital Revenue Bonds Unrefunded Balance, Series A, Community Foundation,

      

6.38%, 8/1/31

      125      119

Indiana Health Facilities Financing Authority Hospital Revenue Bonds, Series A, Community Foundation of Northwest Indiana,

      

6.00%, 3/1/34

      1,000      899

Indiana Health Facilities Financing Authority Hospital Revenue Bonds, Series A, Community Foundation, Prerefunded,

      

6.38%, 8/1/11

      375      414

Indiana Municipal Power Agency Power Supply System Revenue Bonds, Series B,

      

6.00%, 1/1/39

      2,000      2,041

Indiana State Finance Authority Environmental Revenue Bonds, Series B, Duke Energy,

      

6.00%, 8/1/39

      2,000      2,009

North Manchester Revenue Bonds, Series A, Peabody Retirement Community Project,

      

7.25%, 7/1/33

      750      530

Petersburg PCR Bonds (AMT), Indianapolis Power & Light,

      

6.38%, 11/1/29

      3,000      2,565

Rockport PCR Refunding Bonds, Series B, Indiana Michigan Power Company Project,

      

6.25%, Mandatory Put 6/2/14

      2,500      2,547

Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc.,

      

5.70%, 9/1/37(2)

      2,000      1,412

5.75%, 9/1/42(2)

      1,000      697
         
        15,249
         

Iowa - 1.7%

      

Bremer County Healthcare & Residential Facilities Revenue Bonds, Bartels Lutheran Home Project, Prerefunded,

      

7.25%, 11/15/09

      500      517

Coralville COP, Series D,

      

5.25%, 6/1/26

      2,200      2,140

Iowa Finance Authority Retirement Community Revenue Bonds, Edgewater LLC Project,

      

6.75%, 11/15/37

      3,000      2,334

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

   

Iowa - 1.7% continued

      

Iowa Finance Authority Senior Housing Revenue Bonds, Series A, Wedum Walnut Ridge LLC Project,

      

5.63%, 12/1/45

    $ 3,000    $ 1,354

Iowa Higher Education Loan Authority Revenue Bonds, Series B, Wartburg Private College Facilities,

      

5.55%, 10/1/37

      1,500      1,376
         
        7,721
         

Louisiana - 1.1%

      

Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Westlake Chemical Corp. Projects,

     

6.75%, 11/1/32

      3,000      2,407

Parish of St. John The Baptist Revenue Bonds, Series A, Marathon Oil Corp.,

      

5.13%, 6/1/37

      3,000      2,508
         
        4,915
         

Maryland - 2.4%

      

Annapolis Special Obligation Tax Allocation Bonds, Series A, Park Place Project,

      

5.35%, 7/1/34

      1,000      600

Anne Arundel County Special Obligation Tax Allocation Bonds, National Business Park Project, Prerefunded,

      

7.38%, 7/1/10

      500      543

Maryland Industrial Development Financing Authority Revenue Bonds, Series A, Our Lady of Good Counsel School,

      

6.00%, 5/1/35

      1,000      757

Maryland State & Local Facilities G.O. Unlimited Bonds, First Series,

      

5.00%, 8/1/15

      3,000      3,382

Maryland State Economic Development Corp. Student Housing Revenue Bonds, University of Maryland, College Park Project, Prerefunded,

      

5.63%, 6/1/13

      1,000      1,147

Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Mercy Medical Center,

      

5.00%, 7/1/37

      2,750      2,230

Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Mercy Ridge, Prerefunded,

      

6.00%, 4/1/13

      1,000      1,152

Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Washington County Hospital,

      

5.75%, 1/1/38

      1,000      846
         
        10,657
         

Massachusetts - 1.8%

      

Massachusetts State Development Finance Agency Revenue Bonds, Hampshire College,

      

5.70%, 10/1/34

      1,000      779

Massachusetts State Development Finance Agency Revenue Bonds, Series B, Briarwood, Prerefunded,

      

8.25%, 12/1/10

      500      553

Massachusetts State Development Finance Agency Solid Waste Disposal Revenue Refunding Bonds, Dominion Energy Brayton Point Issue,

      

5.75%, Mandatory Put 5/1/19

      2,000      2,068

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series E, Berkshire Health System,

      

6.25%, 10/1/31

      500      463

Massachusetts State Turnpike Authority Revenue Bonds, Series A (FGIC-TCRS Insured), Escrowed to Maturity,

      

5.00%, 1/1/20

      3,700      4,177
         
        8,040
         

Michigan - 2.0%

      

Flint Hospital Building Authority Revenue Refunding Bonds, Hurley Medical Center,

      

6.00%, 7/1/20

      1,000      902

Michigan State Strategic Limited Obligation Revenue Refunding Bonds, Series B-1, Dow Chemical Company Project,

      

6.25%, 6/1/14

      4,000      4,033

Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series A,

      

6.00%, 6/1/48

      3,000      1,786

Royal Oak Hospital Finance Authority Hospital Revenue Bonds, William Beaumont Hospital Obligated Group,

      

8.25%, 9/1/39

      2,000      2,263
         
        8,984
         

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

   

Minnesota - 0.2%

      

Duluth Economic Development Authority Health Care Facilities Revenue Bonds, St. Luke’s Hospital,

      

7.25%, 6/15/32

    $ 750    $ 690
         

Mississippi - 0.7%

      

Mississippi Development Bank Special Obligation Revenue Bonds, Harrison County Highway Construction (NATL-RE FGIC Insured),

      

5.00%, 1/1/16

      3,000      3,245
         

Missouri - 0.5%

      

Saint Louis IDA Senior Living Facilities Revenue Bonds, Series A, Saint Andrews Residence for Seniors,

      

6.38%, 12/1/41

      3,005      2,331
         

New Jersey - 1.7%

      

New Jersey Economic Development Authority Revenue Bonds, Cigarette Tax,

      

5.75%, 6/15/34

      3,000      2,328

New Jersey Economic Development Authority Revenue Bonds, Series A, First Mortgage-Lions Gate Project,

      

5.88%, 1/1/37

      800      594

New Jersey Health Care Facilities Financing Authority Revenue Bonds, St. Josephs Healthcare System,

      

6.63%, 7/1/38

      2,000      1,627

New Jersey State Educational Facilities Authority Revenue Bonds, Series D, Fairleigh Dickinson University,

      

6.00%, 7/1/25

      1,000      976

Tobacco Settlement Financing Corp. Revenue Bonds, Prerefunded,

      

6.75%, 6/1/13

      500      595

Tobacco Settlement Financing Corp. Revenue Bonds, Series 1A,

      

5.00%, 6/1/41

      3,000      1,622
         
        7,742
         

New York - 8.3%

      

Long Island Power Authority Electric Systems Revenue Bonds, Series B,

      

5.25%, 12/1/14

      3,000      3,238

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (NATL-RE FGIC Insured),

      

5.25%, 11/15/14

      1,695      1,884

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series B,

      

5.25%, 11/15/27

      5,000      5,108

New York City IDA Special Facilities Revenue Bonds, Series A, New York Stock Exchange Project,

      

5.40%, 5/1/18

      3,155      3,157

5.63%, 5/1/29

      2,000      2,001

New York City Industrial Development Agency Special Facilities Revenue Bonds (AMT), Terminal One Group Association Project,

      

5.50%, 1/1/24

      1,000      880

New York City Transitional Finance Authority Revenue Refunding Bonds, Series A-1, Future Tax Secured,

      

5.00%, 11/1/14

      2,000      2,230

New York Liberty Development Corp. Revenue Bonds, Series A, National Sports Museum Project,

      

6.13%, 2/15/19

      2,200      7

New York State Dormitory Authority Revenue Bonds, Orange Regional Medical Center,

      

6.25%, 12/1/37

      2,000      1,525

New York State Dormitory Authority School Districts Revenue Bonds, Series C, Financing Program,

      

5.00%, 10/1/21

      5,000      5,145

New York State Environmental Facilities Corp. Clean Water & Drinking Revenue Bonds, Series A,

      

5.25%, 6/15/27

      4,000      4,228

New York State Thruway Authority Personal Income TRB, Series A,

      

5.00%, 3/15/27

      4,000      4,094

Triborough Bridge & Tunnel Authority Revenue Bonds, Series C (G.O. of Authority),

      

5.00%, 11/15/38

      3,750      3,704
         
        37,201
         

North Carolina - 2.9%

      

North Carolina Capital Facilities Finance Agency Revenue Bonds, Series B, Duke University Project,

      

5.00%, 10/1/38

      3,500      3,554

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

   

North Carolina - 2.9% continued

      

North Carolina Eastern Municipal Power Agency Power System Revenue Bonds, Series A,

      

5.50%, 1/1/26

    $ 670    $ 694

North Carolina Eastern Municipal Power Agency Power System Revenue Bonds, Series D,

      

6.45%, 1/1/14

      385      394

North Carolina Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series B,

      

5.70%, 1/1/17

      1,430      1,456

North Carolina Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series F,

      

5.38%, 1/1/13

      1,000      1,075

North Carolina Medical Care Commission Health Care Facilities Revenue Bonds, Series A, First Mortgage-Deerfield, Episcopal Retirement Community,

      

6.13%, 11/1/38

      2,000      1,721

North Carolina Medical Care Commission Retirement Facilities Revenue Bonds, Series A, Southminster Project,

      

5.75%, 10/1/37

      2,000      1,457

North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue Bonds, Series A,

      

5.50%, 1/1/13

      1,000      1,078

North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series A,

      

5.25%, 1/1/17

      1,500      1,588
         
        13,017
         

Ohio - 3.5%

      

American Municipal Power-Ohio, Inc., Revenue Bonds, Series A, Prairie State Energy Campus Project,

      

5.25%, 2/15/25

      5,000      5,097

Buckeye Tobacco Settlement Financing Authority Asset Backed Revenue Bonds, Series A-2,

      

5.75%, 6/1/34

      2,000      1,286

6.50%, 6/1/47

      1,000      620

Ohio Air Quality Development Authority PCR Refunding Bonds, Series 2009-B, FirstEnergy Generation Corp. Project,

      

5.25%, Mandatory Put 3/1/11

      1,000      1,016

Ohio Air Quality Development Authority Revenue Refunding Bonds, Series A, FirstEnergy Nuclear Generation Corp. Project,

      

5.75%, Mandatory Put 6/1/16

      1,000      1,016

Ohio State Higher Educational Facility Commission Revenue Bonds, Series C, Xavier University,

      

5.75%, 5/1/28

      3,000      3,116

Toledo-Lucas County Port Authority Revenue Refunding Bonds, CSX Transportation, Inc. Project,

      

6.45%, 12/15/21

      3,600      3,779
         
        15,930
         

Oklahoma - 0.6%

      

Langston Economic Development Authority Student Housing Revenue Bonds, Series A, Langston Community Development Corp., Prerefunded,

      

7.75%, 8/1/10

      500      537

Oklahoma Development Finance Authority Hospital Revenue Bonds, Great Plains Regional Medical Center Project,

      

5.13%, 12/1/36

      2,840      2,120
         
        2,657
         

Oregon - 0.7%

      

Oregon Health Sciences University Revenue Bonds, Series A,

      

5.75%, 7/1/39

      3,250      3,191
         

Pennsylvania - 7.7%

      

Allegheny County Hospital Development Authority Revenue Bonds, Series 2007-A, West Penn Allegheny Health System,

      

5.00%, 11/15/28

      4,000      2,528

Allegheny County Redevelopment Authority Tax Allocation Revenue Bonds, Pittsburgh Mills Project,

      

5.60%, 7/1/23

      2,000      1,547

Beaver County IDA PCR Refunding Bonds, Series 2008-C (AMT), FirstEnergy Generation Corp. Project,

      

7.13%, Mandatory Put 6/1/11

      2,000      2,078

Butler County Hospital Authority Revenue Bonds, Butler Health System Project,

      

7.13%, 7/1/29

      3,000      3,172

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD MUNICIPAL FUND    continued   

 

      PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

      

Pennsylvania - 7.7% continued

      

Carbon County IDA Resource Recovery Refunding Bonds (AMT), Panther Creek Partners Project,

      

6.65%, 5/1/10

    $ 475    $ 475

Lancaster County Hospital Authority Revenue Bonds, Series A, Brethren Village Project,

      

6.50%, 7/1/40

      1,450      1,255

Montgomery County Higher Education & Health Authority Revenue Bonds, Series A, Philadelphia Geriatric Center, Prerefunded,

      

7.25%, 12/1/09

      500      523

Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A (AMT), Amtrak Project,

      

6.13%, 11/1/21

      1,400      1,311

6.38%, 11/1/41

      2,000      1,698

Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A (AMT), Reliant Energy,

      

6.75%, 12/1/36

      1,335      1,239

Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series B (AMT), Reliant Energy,

      

6.75%, 12/1/36

      1,145      1,062

Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A, Exelon Generation Company,

      

5.00%, Mandatory Put 6/1/12

      1,000      1,005

Pennsylvania Economic Development Financing Authority Water Facilities Revenue Bonds, Pennsylvania - American Water Co. Project,

      

6.20%, 4/1/39

      2,000      2,011

Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Edinboro University,

      

5.88%, 7/1/38

      1,400      1,215

Pennsylvania State G.O. Limited Bonds, Second Series,

      

5.00%, 4/15/20

      5,000      5,594

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, Philadelphia University,

      

5.25%, 6/1/32

      1,250      954

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Widener University,

      

5.40%, 7/15/36

      750      661

Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue Bonds, Series A, Student Association, Inc. Project, California University of Pennsylvania,

      

6.75%, 9/1/32

      490      406

Philadelphia Hospitals & Higher Education Facilities Authority Hospital Revenue Refunding Bonds, Series A, Temple University Health Systems,

      

5.50%, 7/1/30

      3,000      2,311

Philadelphia Water & Wastewater Revenue Bonds, Series A,

      

5.25%, 1/1/36

      2,975      2,880

Washington County Redevelopment Authority Revenue Bonds, Series A, Victory Centre Project - Tanger Outlet Development,

      

5.45%, 7/1/35

      1,000      596
         
        34,521
         

Puerto Rico - 0.2%

      

Puerto Rico Highway & Transportation Authority Transportation Revenue Bonds,

      

5.00%, 7/1/09

      1,000      1,000
         

South Carolina - 0.2%

      

Lancaster County Special Assessment Revenue Bonds, Series B, Edenmoor Improvement District,

      

5.38%, 12/1/16

      1,740      698
         

Tennessee - 0.3%

      

Sumner County Health Educational & Housing Facilities Board Revenue Refunding Bonds, Series A, Sumner Regional Health Systems, Inc.,

      

5.50%, 11/1/37

      3,000      1,173
         

Texas - 9.7%

      

Austin City Convention Center Revenue Bonds, Series A, Convention Enterprise, Inc., First Tier, Prerefunded,

      

6.70%, 1/1/11

      700      760

Brazos County Health Facilities Development Corp. Franciscan Services Corp. Revenue Bonds,

      

5.38%, 1/1/32

      2,545      2,073

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

      

Texas - 9.7% continued

      

Brazos River Authority PCR Refunding Bonds, Series A (AMT), TXU Electric Co. Project,

      

8.25%, 10/1/30

    $ 2,500    $ 1,200

Brazos River Authority Refunding PCR Bonds, Series A (AMT), TXU Electric Co. Project,

      

7.70%, 4/1/33

      2,285      1,097

Comal County Health Facilities Development Revenue Bonds, Series A, McKenna Memorial Project, Prerefunded,

      

6.13%, 2/1/13

      3,000      3,457

Cypress-Fairbanks Independent School District Refunding G.O. Unlimited Bonds (PSF Gtd.),

      

5.00%, 2/15/35

      4,000      4,027

Dallas County Flood Control District No. 1 G.O. Unlimited Refunding Bonds,

      

7.25%, 4/1/32

      1,000      1,000

Grand Prairie Independent School District G.O. Unlimited Bonds, Series A (PSF Gtd.),

      

5.00%, 2/15/37

      3,540      3,557

HFDC of Central Texas, Inc. Retirement Facilities Revenue Bonds, Series A, Legacy of Willow Bend,

      

5.75%, 11/1/36

      3,000      1,983

Houston Industrial Development Corp. Revenue Bonds (AMT), Air Cargo,

      

6.38%, 1/1/23

      500      407

Lower Colorado River Authority Revenue Refunding Bonds,

      

5.63%, 5/15/39

      3,000      2,985

Lufkin Health Facilities Development Corp. Health Systems Revenue Bonds, Memorial Health Systems East Texas,

      

5.50%, 2/15/37

      1,320      925

Matagorda County Navigation District No. 1 Collateralized Revenue Refunding Bonds, Centerpoint Energy Houston Electric, LLC Project,

      

5.60%, 3/1/27

      3,000      2,889

Matagorda County Navigation District No. 1 PCR Refunding Bonds, Series A, Central Power & Light Co. Project,

      

6.30%, 11/1/29(3)

      1,000      1,014

Mission Economic Development Corp. Solid Waste Disposal Revenue Bonds (AMT), Waste Management, Inc. Project,

      

6.00%, Mandatory Put 8/1/13

      2,000      2,077

Mission Economic Development Corp. Solid Waste Disposal Revenue Bonds, Series A (AMT), Allied Waste N.A., Inc. Project,

      

5.20%, 4/1/18

      3,500      3,228

Sabine River Authority PCR Refunding Bonds, Series B, TXU Energy Co. LLC Project,

      

6.15%, 8/1/22

      500      245

Sam Rayburn Municipal Power Agency Revenue Refunding Bonds,

      

6.00%, 10/1/21

      500      501

San Antonio Electric & Gas Revenue Refunding Bonds,

      

5.00%, 2/1/26

      4,535      4,664

Tarrant County Cultural Education Facilities Finance Corp. Retirement Revenue Bonds, Air Force Village Obligated Group Project,

      

5.13%, 5/15/37

      3,000      2,111

Tyler Health Facilities Development Corp. Hospital Revenue Refunding Bonds, Series A, East Texas Medical Center,

      

5.38%, 11/1/37

      4,300      3,298
         
        43,498
         

Virgin Islands - 0.1%

      

University of the Virgin Islands General Improvement Bonds, Series A (G.O. of University),

      

5.38%, 6/1/34

      750      625
         

Virginia - 3.9%

      

Amherst IDA Revenue Refunding Bonds, Educational Facilities - Sweet Briar,

      

5.00%, 9/1/26

      1,000      808

Charles City & County IDA Solid Waste Disposal Facilities Revenue Bonds (AMT), Waste Management, Inc. Project,

      

6.25%, Mandatory Put 4/1/12

      500      523

Chesapeake Hospital Authority Facilities Revenue Bonds, Series A Chesapeake General Hospital,

      

5.25%, 7/1/18

      1,500      1,505

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND    continued

 

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 88.9% continued

      

Virginia - 3.9% continued

      

Chesterfield County Economic Development Authority PCR Refunding Bonds, Series A, Virginia Electric & Power,

      

5.00%, 5/1/23

    $ 1,000    $ 1,036

Fairfax County Economic Development Authority Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc.,

      

5.13%, 10/1/37

      2,000      1,545

5.13%, 10/1/42

      1,000      756

Richmond Public Utilities Revenue Refunding Bonds,

      

5.00%, 1/15/35

      2,000      2,006

Tobacco Settlement Financing Corp. Tobacco Settlement Asset Backed Bonds, Prerefunded,

      

5.63%, 6/1/15

      4,530      5,195

Tobacco Settlement Financing Corp. Tobacco Settlement Asset Backed Bonds, Series B1-Senior,

      

5.00%, 6/1/47

      1,000      551

Virginia State Public School Authority Revenue Bonds, Series B1, School Financing 1997 Resolution,

      

5.00%, 8/1/28

      3,345      3,515

West Point IDA Solid Waste Disposal Revenue Bonds, Series A (AMT), Chesapeake Corp. Project,

      

6.38%, 3/1/19(1)

      1,575      39

West Point IDA Solid Waste Disposal Revenue Bonds, Series B, Chesapeake Corp. Project,

      

6.25%, 3/1/19(1)

      1,680      42
         
        17,521
         

Washington - 2.7%

      

Snohomish County School District No. 201 G.O. Unlimited Bonds,

      

5.25%, 12/1/21

      5,000      5,535

Washington State Housing Finance Commission Nonprofit Revenue Bonds, Series A, Skyline at First Hill Project,

      

5.25%, 1/1/17

      2,000      1,682

5.63%, 1/1/27

      1,000      712

Washington State Various Purpose G.O. Unlimited Bonds, Series E,

      

5.00%, 2/1/28

      3,850      3,965
         
        11,894
         

Wisconsin - 1.6%

      

Green Bay Redevelopment Authority IDR Bonds, Fort James Project,

      

5.60%, 5/1/19

      2,000      1,606

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series A, Beaver Dam Community Hospitals,

      

6.75%, 8/15/34

      1,000      806

Wisconsin Health & Educational Facilities Authority Revenue Bonds, Vernon Memorial Healthcare Project,

      

5.10%, 3/1/25

      1,000      826

5.25%, 3/1/35

      2,650      2,016

Wisconsin Health & Educational Facilities Authority Revenue Refunding Bonds, Divine Savior Healthcare,

      

5.00%, 5/1/32

      3,155      2,055
         
        7,309
         

Wyoming - 0.7%

      

Sweetwater County Solid Waste Disposal Revenue Refunding Bonds (AMT), FMC Corp. Project,

      

5.60%, 12/1/35

      4,005      3,224
         

Total Municipal Bonds

      
         

(Cost $452,328)

         399,930

SHORT-TERM INVESTMENTS - 9.8%

      

Arizona Health Facilities Authority Revenue VRDB, Series B, Banner Health (Scotiabank LOC),

      

0.20%, 7/1/09

      390      390

Chemung County Industrial Development Agency Civic Facilities Revenue VRDB, Series A, Elmira College Project,

      

0.28%, 7/2/09

      2,800      2,800

Gulf Coast Waste Disposal Authority PCR Refunding VRDB, Amoco Oil Company Project,

      

0.21%, 7/1/09

      2,900      2,900

Harris County Cultural Education Facilities Finance Corp. Revenue VRDB, Subseries C-1, Methodist Hospital,

      

0.18%, 7/1/09

      100      100

Illinois Finance Authority Revenue VRDB, Series A, Central DuPuge Health,

      

0.18%, 7/1/09

      280      280

 

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT-TERM INVESTMENTS - 9.8% continued

   

Iowa Higher Education Loan Authority Revenue VRDB, Loras College Facility Project, (LaSalle Bank LOC),

      

0.20%, 7/1/09

    $ 5,000    $ 5,000

Kansas City IDA Revenue VRDB, Series B, Downtown Redevelopment District (JP Morgan Chase Bank LOC),

      

0.35%, 7/1/09

      800      800

Louisiana Public Facilities Authority Revenue VRDB, Dynamic Fuels LLC Project (JP Morgan Chase Bank LOC),

      

0.20%, 7/1/09

      500      500

Lower Neches Valley Authority Industrial Development Corp. Exempt Facilities Revenue Refunding VRDB, Series A, Exxonmobil Project,

      

0.28%, 7/1/09

      400      400

North Texas Tollway Authority Revenue VRDB, Series C (NATL-RE FGIC Insured),

      

9.50%, 7/1/09

      4,000      4,000

Pennsylvania State Turnpike Revenue VRDB, Series B,

      

1.30%, 7/2/09

      1,355      1,355

Pima County IDA Revenue VRDB, Series A, Senior Living Facilities - La Posada (LaSalle Bank N.A. LOC),

      

0.30%, 7/2/09

      3,810      3,810

South Dakota Health & Educational Facilities Authority Revenue VRDB, Regional Health (U.S. Bank N.A. LOC),

      

0.30%, 7/1/09

      4,300      4,300

Texas State Transportation Commission Revenue VRDB, Series B, First Tier,

      

0.23%, 7/1/09

      4,500      4,500

University of Massachusetts Building Authority Revenue Refunding VRDB, Series 2008-4, (State Gtd.),

      

0.25%, 7/1/09

      5,800      5,800

Utah Water Finance Agency Revenue VRDB, Series B-3,

      

0.33%, 7/1/09

      6,400      6,400

Valdez Marine Term Revenue Refunding VRDB, Series B, Exxon Pipeline Co. Project,

      

0.17%, 7/1/09

      700      700
         

Total Short-Term Investments

      
         

(Cost $44,035)

         44,035
         

Total Investments - 98.7%

      
         

(Cost $496,363)

         443,965

Other Assets less Liabilities - 1.3%

         5,751
         

NET ASSETS - 100.0%

       $ 449,716

 

(1) Issuer has defaulted on terms of debt obligation.
(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.
(3) When-Issued Security.

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the High Yield Municipal Fund were:

 

INDUSTRY SECTOR

    % OF INVESTMENTS  

Development

    5.4 % 

General

    8.8   

Higher Education

    13.2   

Medical

    15.5   

Nursing

    8.1   

Pollution

    10.5   

Power

    8.8   

Transportation

    6.9   

All other sectors less than 5%

    22.8   
      

Total

    100.0 % 
      

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 496,363   
        

Gross tax appreciation of investments

    $ 7,532   

Gross tax depreciation of investments

      (59,930 ) 
        

Net tax depreciation of investments

    $ (52,398 ) 
        

 

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

HIGH YIELD MUNICIPAL FUND    continued    JUNE 30, 2009 (UNAUDITED)

 

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the High Yield Municipal Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

High Yield Municipal Fund

    $ —      $ 443,965 (1)    $ —      $ 443,965
                            

 

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

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:

AMT - Alternative Minimum Tax

COP - Certificate of Participation

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

Gtd. - Guaranteed

IDA - Industrial Development Authority

IDR - Industrial Development Revenue

LOC - Letter of Credit

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand Bonds

 

TAX-EXEMPT FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND   JUNE 30, 2009 (UNAUDITED)

 

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1%

      

Arizona - 3.0%

      

Arizona School Facilities Board COP,

      

5.25%, 9/1/23

    $ 10,000    $ 10,072

Arizona State Transportation Board TRB, Maricopa County Regional Area,

      

5.25%, 7/1/20

      10,000      11,048

Maricopa County Community College District G.O. Unlimited Bonds, Series C,

      

4.00%, 7/1/21

      2,000      2,022

Phoenix Civic Improvement Corp. Transit Excise TRB, Light Rail Project (AMBAC Insured),

      

5.00%, 7/1/17

      5,000      5,297

Rio Nuevo Multipurpose Facilities District Excise TRB, Sub Lien, (Assured Guaranty Insured),

      

5.75%, 7/15/18

      4,725      5,035

Salt River Project Agricultural Improvement & Power District Electric System Revenue Bonds, Series A,

      

5.00%, 1/1/38

      5,000      5,000
         
        38,474
         

California - 11.2%

      

Alvord Unified School District G.O. Unlimited Refunding Bonds, Series A (FSA-CR NATL-RE Insured),

      

5.90%, 8/1/30

      2,450      2,682

Bay Area Government Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (XLCA Insured),

      

5.00%, 8/1/13

      2,500      2,517

California Educational Facilities Authority Revenue Bonds, Series A, University of Southern California,

      

5.25%, 10/1/38

      2,500      2,574

California Housing Finance Agency Revenue Bonds, Series A (AMT) (FSA Insured),

      

4.50%, 2/1/20

      5,000      4,422

California Housing Finance Agency Revenue Bonds, Series J (AMT),

      

4.95%, 8/1/22

      6,070      5,249

California State Department of Water Resources Power Supply Revenue Bonds, Series A,

      

6.00%, 5/1/14

      10,000      10,860

California State Department of Water Resources Power Supply Revenue Bonds, Series H (FSA Insured),

      

5.00%, 5/1/21

      405      418

California State Department of Water Resources Power Supply Revenue Refunding Bonds, Series H (FSA-CR Insured),

      

5.00%, 5/1/22

      5,000      5,127

California State Economic Recovery G.O. Unlimited Bonds, Series A (FGIC-TCRS Insured),

      

5.00%, 7/1/17

      5,000      5,030

California State Economic Recovery G.O. Unlimited Bonds, Series A (NATL-RE FGIC Insured),

      

5.25%, 7/1/14

      5,000      5,292

California State G.O. Unlimited Bonds, Prerefunded,

      

5.75%, 5/1/10

      390      411

5.75%, 5/1/10

      50      53

California State G.O. Unlimited Bonds, Unrefunded Balance,

      

5.75%, 5/1/30

      135      131

California State G.O. Unlimited Bonds, Unrefunded Balance (AMBAC Insured),

      

5.00%, 10/1/18

      75      75

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/20

      2,500      2,441

Colton Joint Unified School District G.O. Unlimited Bonds, Series A (NATL-RE FGIC Insured),

      

5.38%, 8/1/26

      2,500      2,514

East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured),

      

5.00%, 6/1/32

      3,000      2,984

El Dorado Irrigation District COP, Series A (Assured Guaranty Insured),

      

5.75%, 8/1/39

      1,000      1,007

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed (AMBAC Insured),

      

5.00%, 6/1/21

      3,000      2,676

Grossmont Unified High School District G.O. Unlimited Bonds, Election of 2004,

      

5.00%, 8/1/33

      2,500      2,432

Long Beach Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured),

      

5.00%, 5/15/21

      1,000      954

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

   

California - 11.2% continued

      

Los Angeles Community College District G.O. Unlimited Bonds, Series E-1, Election 2001,

      

5.00%, 8/1/27

    $ 2,000    $ 2,007

Los Angeles Community College District, G.O. Unlimited Bonds, 2003 Elections Series E, (FSA Insured),

      

5.00%, 8/1/22

      4,035      4,151

Los Angeles County Sanitation Districts Financing Authority Revenue Bonds, Series A, Capital Project (FSA Insured),

      

5.00%, 10/1/21

      5,005      5,145

Los Angeles Department of Water & Power Revenue Bonds, Subseries A-1,

      

5.25%, 7/1/38

      7,500      7,527

Los Angeles Department of Water & Power Revenue Bonds, Subseries A-A-1,

      

5.00%, 7/1/24

      5,000      5,001

Menlo Park G.O. Unlimited Bonds,

      

5.25%, 8/1/27

      1,000      1,042

Metropolitan Water District of Southern California Waterworks Revenue Bonds, Series A,

      

5.00%, 7/1/32

      5,000      5,056

Moreland School District G.O. Unlimited Bonds, Series C, Election of 2002 (FGIC Insured),

      

0.00%, 8/1/29

      3,500      1,268

Port Oakland Revenue Bonds, Series K (AMT) (NATL-RE FGIC) Prerefunded,

      

5.75%, 5/10/10

      15      16

Port Oakland Revenue Bonds, Unrefunded Balance, Series K (AMT) (NATL-RE FGIC),

      

5.75%, 5/10/10

      2,070      2,083

Sacramento Municipal Utility District Electric Revenue Bonds, Series U (FSA Insured),

      

5.00%, 8/15/19

      6,000      6,353

San Bernardino County Transportation Authority, Series A, Revenue Bonds,

      

5.00%, 5/1/12

      5,500      5,836

San Diego Public Facilities Financing Authority, Water & Sewer Utility Revenue Refunding Bonds, Series B,

      

5.50%, 5/15/23

      8,050      8,554

San Francisco Bay Area Rapid Transit Financing Authority G.O. Unlimited Bonds, Election of 2004,

      

5.00%, 8/1/35

      5,000      5,016

San Mateo Union High School District COP Convertible Capital Appreciation, Series B, Phase I Projects (AMBAC Insured),

      

0.00%, 12/15/43

      17,370      7,594

Sequoia Union High School District G.O. Unlimited Bonds, Series B, Election 2008,

      

5.00%, 7/1/32(1)

      4,980      4,940

Sequoia Union High School District Refunding G.O. Unlimited Bonds (FSA Insured),

      

5.00%, 7/1/22

      1,100      1,135

Southern California Public Power Authority Revenue Bonds, Series B, Southern Transmission Project,

      

6.00%, 7/1/27

      5,000      5,281

Southern California Public Power Authority Revenue Refunding Bonds, Series A, Southern Transmission Project,

      

5.00%, 7/1/23

      5,000      5,089

University of California Revenue Bonds, Multiple Purpose Projects, Series Q (FSA Insured), Prerefunded,

      

5.00%, 9/1/11

      1,000      1,097
         
        144,040
         

Colorado - 3.6%

      

Dawson Ridge Metropolitan District No.1 G.O. Limited Refunding Bonds, Series A, Escrowed to Maturity,

      

0.00%, 10/1/22

      36,900      19,718

Denver City & County Excise Refunding TRB, Series A (Assured Guaranty Insured),

      

6.00%, 9/1/23

      5,550      5,969

Denver City & County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (NATL-RE FGIC Insured State Aid Withholding),

      

5.50%, 12/1/22

      5,000      5,681

E-470 Public Highway Authority Revenue Bonds, Series A1 (NATL-RE Insured),

      

5.25%, 9/1/16

      10,475      9,934

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

   

Colorado - 3.6% continued

      

Public Authority for Colorado Energy Natural Gas Revenue Bonds,

      

6.50%, 11/15/38

    $ 5,000    $ 4,744
         
        46,046
         

District of Columbia - 0.4%

      

District of Columbia Water & Sewer Authority Public Utilities Revenue Bonds, Series A,

      

6.00%, 10/1/35

      5,000      5,347
         

Florida - 5.5%

      

Boward County G.O. Unlimited Refunding Bonds, Series B,

      

5.00%, 1/1/22

      2,000      2,113

Citizens Property Insurance Corp. Revenue Notes, Series A-2, High Risk Account,

      

4.50%, 6/1/10

      10,000      10,122

Crossings at Fleming Island Community Development District Special Assessment Revenue Refunding Bonds, Series C,

      

7.05%, 5/1/15

      200      186

Dade County G.O. Unlimited Refunding Bonds, Seaport (NATL-RE Insured),

      

6.50%, 10/1/10

      400      427

Florida Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A,

      

5.00%, 7/1/13

      10,000      10,348

Florida Municipal Power Agency All Requirements Power Revenue Bonds, Series A,

      

5.25%, 10/1/19

      5,000      5,241

Florida State Board of Education G.O. Unlimited Bonds, Capital Outlay 2007, Series E,

      

5.00%, 6/1/23

      4,780      5,015

Florida State Department of Transportation Right of Way G.O. Unlimited Revenue Bonds,

      

5.25%, 7/1/37

      5,000      5,046

Gainesville Utility System Revenue Bonds, Series A (FSA Insured), Prerefunded,

      

5.00%, 10/1/15

      5,000      5,752

Gainesville Utility Systems Revenue Bonds, Series A,

      

5.25%, 10/1/15

      1,065      1,171

5.25%, 10/1/16

      1,120      1,231

Lee County Transportation Revenue Refunding Bonds, Series A (AMBAC Insured),

      

5.50%, 10/1/14

      900      968

Marco Island Utility System Revenue Bonds (NATL-RE Insured),

      

5.25%, 10/1/15

      2,520      2,680

Miami-Dade County Aviation Revenue Refunding Bonds, Series D (AMT), Miami International Airport (NATL-RE Insured),

      

5.25%, 10/1/18

      1,645      1,587

Miami-Dade County Expressway Authority Toll System Revenue Bonds, Series B (NATL-RE FGIC Insured),

      

5.25%, 7/1/25

      2,525      2,553

Miami-Dade County Water & Sewer Revenue Bonds, Series B (FSA Insured),

      

5.25%, 10/1/20

      3,000      3,159

Miami-Dade County Water & Sewer Revenue Refunding Bonds, Series B (FSA Insured),

      

5.25%, 10/1/22

      2,500      2,626

Osceola County Infrastructure Sales Surtax Revenue Bonds (AMBAC Insured),

      

5.38%, 10/1/21

      1,000      1,029

Palm Beach County G.O. Unlimited Refunding Bonds, Series B,

      

6.50%, 7/1/10

      250      264

Palm Coast Utility System Revenue Bonds (NATL-RE Insured),

      

5.25%, 10/1/21

      1,000      1,012

South Florida Water Management District Special Obligation Limited Acquisition Revenue Refunding Bonds (AMBAC Insured),

      

5.25%, 10/1/13

      1,250      1,374

Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured),

      

5.50%, 10/1/15

      5,910      6,520
         
        70,424
         

Georgia - 1.9%

      

Athens-Clarke County Government Water & Sewer Revenue Bonds,

      

5.50%, 1/1/38

      10,000      10,443

Fulton County Facilities Corp. COP, Fulton County Public Purpose Project (AMBAC Insured),

      

5.50%, 11/1/18

      6,500      6,785

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND    continued   

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

      

Georgia - 1.9% continued

      

Gwinnett County Development Authority COP, Public Schools Project (NATL-RE Insured), Prerefunded,

      

5.25%, 1/1/14

    $ 6,000    $ 6,808
         
        24,036
         

Hawaii - 2.2%

      

City & County of Honolulu G.O. Unlimited Bonds, Series A,

      

5.00%, 4/1/26

      5,950      6,230

Hawaii State Airport System Revenue Refunding Bonds, Series B (AMT) (NATL-RE FGIC Insured),

      

6.00%, 7/1/20

      5,000      5,014

Hawaii State G.O. Unlimited Refunding Bonds, Series DR,

      

5.00%, 6/1/17

      15,000      16,878
         
        28,122
         

Idaho - 0.1%

      

Idaho Housing & Finance Association SFM Revenue Bonds, Series E-1 (AMT), Class III,

      

4.85%, 7/1/28

      1,420      1,303
         

Illinois - 7.0%

      

Chicago G.O. Unlimited Refunding Bonds, Series A (FSA Insured),

      

5.00%, 1/1/22

      3,000      3,059

Chicago O’Hare International Airport Revenue Bonds, Series A, General Airport Third Lien (NATL-RE Insured),

      

5.25%, 1/1/26

      5,000      5,041

Chicago O’Hare International Airport Revenue Bonds, Series B (FSA Insured),

      

5.00%, 1/1/19

      5,000      5,135

Cook County Community High School District No. 219-Niles Township Refunding G.O. Unlimited Bonds, Series A (FSA Insured),

      

5.00%, 12/1/25

      7,950      8,283

Cook Kane Lake & McHenry Counties Community College District No. 512 G.O. Unlimited Bonds, Series A, William Rainey Harper,

      

5.00%, 12/1/24

      5,300      5,607

Illinois Development Finance Authority Revenue Bonds, Series B, Midwestern University Project, Prerefunded,

      

5.75%, 5/15/11

      500      545

Illinois Educational Facilities Authority Adjustable Revenue Bonds, Field Museum of Natural History Project,

      

4.60%, Mandatory Put 11/1/15

      4,250      4,274

Illinois Educational Facilities Authority Student Housing Revenue Bonds, Educational Advancement Fund University Center Project, Prerefunded,

     

6.00%, 5/1/12

      750      853

Illinois Finance Authority Revenue Bonds, Series A, Elmhurst Memorial,

      

5.63%, 1/1/37

      2,500      2,096

Illinois Health Facilities Authority Revenue Bonds, Riverside Health System, Prerefunded,

      

6.00%, 11/15/12

      1,000      1,142

Illinois State G.O. Unlimited Bonds (NATL-RE FGIC Insured),

      

5.38%, 6/1/24

      2,000      2,023

Illinois State G.O. Unlimited Bonds, 1st Series (NATL-RE Insured),

      

5.70%, 6/1/19

      4,000      4,117

Illinois State Sales Tax Revenue Bonds, First Series (NATL-RE FGIC Insured),

      

6.00%, 6/15/26

      5,000      5,567

Illinois State Sales TRB, Revenue Bonds,

      

5.25%, 6/15/23

      9,735      10,227

Illinois State Toll Highway Authority Revenue Bonds, Series A (FSA Insured),

      

5.00%, 1/1/18

      10,000      10,733

Metropolitan Pier & Exposition Authority Dedicated Sales TRB, McCormick Place Expansion (FSA-CR FGIC Insured),

      

5.50%, 12/15/24

      3,000      3,061

Metropolitan Pier & Exposition Authority Dedicated Sales TRB, Series A, McCormick Place Expansion (NATL-RE Insured),

      

5.25%, 6/15/42

      5,000      4,908

Regional Transportation Authority Revenue Bonds, Series A (NATL-RE FGIC Insured G.O. of Authority),

      

5.50%, 7/1/22

      2,000      2,203

6.00%, 7/1/33

      10,000      11,183
         
        90,057
         

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

      

Indiana - 0.1%

      

Merrillville Multi School Building Corp. Revenue Bonds, First Mortgage (State Aid Withholding),

      

5.25%, 7/15/26

    $ 1,000    $ 1,005
         

Iowa - 0.3%

      

Iowa Finance Authority Hospital Facility Revenue Bonds, Mercy Medical Center Project (FSA Insured), Prerefunded,

      

6.00%, 8/15/09

      3,610      3,671
         

Kansas - 0.6%

      

Wichita Hospital Improvement Facilities Revenue Refunding Bonds, Series III,

      

5.25%, 11/15/15

      1,385      1,415

6.25%, 11/15/18

      1,600      1,658

Wichita Water & Sewer Utility Revenue Bonds (NATL-RE FGIC Insured),

      

5.25%, 10/1/18

      4,000      4,160
         
        7,233
         

Kentucky - 0.8%

      

Kentucky State Property & Buildings Commission Revenue Refunding Bonds,

      

5.00%, 11/1/20

      10,000      10,608
         

Maryland - 1.8%

      

Maryland G.O. Unlimited Bonds, State & Local Facilities, Second Series,

      

5.00%, 8/1/20

      5,000      5,560

Maryland State Department of Transportation Revenue Bonds,

      

4.00%, 6/15/23

      3,610      3,597

Maryland State Department of Transportation Revenue Bonds, Second Issue,

      

4.00%, 9/1/21

      7,525      7,640

Washington Suburban Sanitation District, Public Construction Improvement, G.O. Unlimited Bonds,

      

4.13%, 6/1/23

      6,605      6,725
         
        23,522
         

Massachusetts - 5.1%

      

Massachusetts Bay Transportation Authority Sales Tax Revenue Refunding Bonds, Series B,

      

5.25%, 7/1/22

      10,000      11,231

Massachusetts Bay Transportation Authority, Series C, Revenue Bonds,

      

5.50%, 7/1/17

      5,000      5,825

Massachusetts School Building Authority Dedicated Sales TRB, Series A (FSA Insured),

      

5.00%, 8/15/22

      18,060      19,149

Massachusetts State G.O. limited Bonds, Series C, Prerefunded,

      

5.75%, 10/1/10

      5,000      5,301

Massachusetts State G.O. Unlimited Bonds, Series B,

      

5.00%, 11/1/16

      1,000      1,130

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series B, Partners Healthcare System,

      

5.25%, 7/1/12

      3,450      3,491

Massachusetts State Housing Finance Agency Revenue Bonds, Series III (AMT), Single Family,

      

3.45%, 12/1/09

      1,050      1,056

Massachusetts State Special Obligation Dedicated TRB (FGIC Insured), Prerefunded,

      

5.75%, 1/1/14

      2,350      2,652

Massachusetts State Water Pollution Abatement Revolving Trust Fund Revenue Bonds, Series 14,

      

5.00%, 8/1/26

      10,000      10,737

Massachusetts State Water Pollution Abatement, Refunding Bonds, Series A, (NATL-RE FGIC Insured),

      

4.75%, 2/1/26

      3,000      2,980

Massachusetts Water Resources Authority Revenue Bonds, Series B (G.O. of Authority),

      

5.00%, 8/1/21

      2,145      2,349
         
        65,901
         

Michigan - 0.2%

      

Michigan State Building Authority Revenue Refunding Bonds, Series I, Facilities Program,

      

6.00%, 10/15/38

      2,500      2,586
         

Minnesota - 1.9%

      

Minnesota State G.O. Unlimited Bonds,

      

5.00%, 10/1/09

      2,500      2,530

5.25%, 11/1/19

      10,000      10,791

Minnesota State Housing Finance Agency SFM Revenue Bonds, Series A (NATL-RE Insured),

      

5.35%, 7/1/17

      430      443

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND    continued   

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

      

Minnesota - 1.9% continued

      

Northern Municipal Power Agency Electric System Revenue Refunding Bonds, Series A (Assured Guaranty Insured),

      

5.00%, 1/1/14

    $ 10,000    $ 10,723
         
        24,487
         

Mississippi - 0.4%

      

Jackson State University Educational Building Corp. Revenue Bonds, Campus Facilities Project (FSA Insured),

      

5.00%, Mandatory Put 3/1/15

      4,965      5,547

Mississippi Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured),

      

5.40%, 6/1/38

      75      73
         
        5,620
         

Missouri - 1.2%

      

Bi-State Development Agency Missouri- Illinois District Revenue Bonds, Series B, Metrolink Cross County Project (FSA Insured),

      

5.25%, 10/1/15

      11,200      11,757

5.25%, 10/1/17

      3,120      3,214
         
        14,971
         

Nebraska - 0.4%

      

City of Lincoln Electric Systems Revenue Bonds,

      

5.00%, 9/1/31

      5,500      5,517
         

Nevada - 0.9%

      

Nevada State Capital Improvement & Cultural Affairs G.O. Limited Bonds, Series C,

      

5.00%, 6/1/21

      8,000      8,061

Washoe County Highway Motor Vehicle Fuel TRB,

      

4.75%, 2/1/21(1)

      3,400      3,330
         
        11,391
         

New Jersey - 4.2%

      

New Jersey Economic Development Authority Revenue Bonds, School Facility Construction (FSA Insured),

      

5.00%, Mandatory Put 9/1/14

      5,000      5,362

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Atlantic City Medical, Prerefunded,

      

6.25%, 7/1/12

      445      504

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Atlantic City Medical, Unrefunded Balance,

      

6.25%, 7/1/17

      555      582

New Jersey State Higher Education Student Loan Assistance Authority Revenue Bonds, Series A,

      

5.38%, 6/1/24

      2,500      2,499

5.50%, 6/1/27

      5,000      5,007

New Jersey State Transit Corp. COP Bonds, Series A (AMBAC Insured),

      

5.25%, 9/15/14

      2,500      2,661

New Jersey State Turnpike Authority Revenue Bonds, Series C-2 (BHAC-CR FSA-CR AMBAC Insured),

      

5.50%, 1/1/25

      5,000      5,711

New Jersey State Turnpike Authority Revenue Bonds, Series E,

      

5.25%, 1/1/40

      5,000      4,977

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series A, Transportation System (FSA Insured),

      

4.00%, 12/15/17

      5,000      5,000

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series A, Transportation System (NATL-RE FGIC Insured),

      

5.75%, 6/15/25

      5,000      5,397

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series B (NATL-RE FGIC Insured),

      

5.50%, 12/15/20

      2,925      3,132

New Jersey Transportation Trust Fund Authority, Capital Appreciation, Revenue Bonds, (AGC-ICC Insured),

      

0.00%, 12/15/25

      5,000      1,938

New Jersey Transportation Trust Fund Authority, Capital Appreciation, Revenue Bonds, (BHAC-CR AMBAC Insured),

      

0.00%, 12/15/28

      22,500      7,382

New Jersey Transportation Trust Fund Authority, Capital Appreciation, Revenue Bonds, (BHAC-CR MBIA Insured),

      

0.00%, 12/15/27

      10,000      3,531
         
        53,683
         

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

      

New York - 13.7%

      

Long Island Power Authority Electric System Revenue Bonds, Series A,

      

6.25%, 4/1/33

    $ 5,000    $ 5,503

Metropolitan Transportation Authority Revenue Refunding Bonds, Series A (AMBAC Insured),

      

5.50%, 11/15/18

      5,000      5,157

Metropolitan Transportation Authority Commuter Facilities Revenue Bonds, Series A, Prerefunded,

      

6.00%, 7/1/09

      2,500      2,500

Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (FGIC Insured), Prerefunded,

      

6.13%, 4/1/10

      3,815      3,977

New York & New Jersey Authority Revenue Bonds, 124th Series (G.O. of Authority),

      

5.00%, 8/1/15

      3,490      3,507

New York City G.O. Unlimited Bonds, Series A, Prerefunded,

      

6.00%, 5/15/10

      305      323

New York City G.O. Unlimited Bonds, Series A, Unrefunded Balance,

      

6.00%, 5/15/19

      30      31

New York City G.O. Unlimited Bonds, Subseries I-1,

      

5.50%, 4/1/22

      10,000      10,676

New York Local Government Assistance Corp. Revenue Refunding Bonds, Series E (FSA-CR Insured G.O. of Corp.),

      

5.00%, 4/1/21

      5,000      5,501

New York Local Government Assistance Corp. Revenue Refunding Bonds, Series C (NATL-RE-IBC Insured G.O. of Corp.),

      

5.50%, 4/1/17

      2,500      2,881

New York Municipal Bond Bank Agency Special School Purpose Revenue Bonds, Series C (State-Aid Withholding),

      

5.25%, 6/1/17

      10,000      10,557

New York State Dormitory Authority State Personal Income TRB, Series B,

      

5.75%, 3/15/36

      14,380      15,383

New York State Dormitory Authority State Personal Income TRB, Series C,

      

5.00%, 3/15/25

      5,000      5,174

New York State Dormitory Authority State Supported Debt Revenue Bonds Series B, School District Financing Program (Assured Guarantee G.O. of District),

      

5.25%, 10/1/23

      5,000      5,205

New York State Dormitory Authority State Supported Debt Revenue Bonds, Series B, Mental Health Services Facilities Improvement (FSA Insured),

     

5.00%, 2/15/19

      1,500      1,592

New York State Dormitory Authority, Series A, Revenue Bonds,

      

5.25%, 2/15/23

      10,580      11,321

New York State Environmental Facilities Corp. State Clean Water & Drinking Revenue Bonds, Series A, Revolving Funds, Municipal Water Finance Authority,

      

5.00%, 6/15/20

      5,245      5,665

New York State Environmental Facilities Corp. State Clean Water & Drinking Revenue Bonds, Series A, Revolving Funds, Unrefunded Balance,

     

6.00%, 6/15/16

      1,315      1,320

New York State Environmental Facilities Corp. State Clean Water & Drinking Revenue Bonds, Series C, Revolving Funds - Municipal Water Finance,

      

5.00%, 6/15/25

      5,000      5,213

New York State Environmental Facilities Corp. State Personal Income TRB, Series A,

      

5.25%, 12/15/26

      12,960      13,671

New York State Thruway Authority State Personal Income TRB, Series A,

      

5.25%, 3/15/21

      5,000      5,403

New York State Urban Development Corp. Revenue Refunding Bonds, Series D,

      

5.38%, 1/1/22

      1,850      1,930

New York State Urban Development Corp. State Personal Income TRB, Series B-1,

      

5.00%, 3/15/28

      5,000      5,100

New York State Urban Development Corp. Subordinate Lien Revenue Bonds (HUD 236 G.O. of Corp. Insured),

      

5.50%, 7/1/16

      1,250      1,254

Sales Tax Asset Receivables Corp. Revenue Bonds, Series A (AMBAC Insured),

      

5.00%, 10/15/32

      4,235      4,294

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND    continued   

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

      

New York - 13.7% continued

      

Sales Tax Asset Receivables Corp. Revenue Bonds, Series A (NATL-RE Insured),

      

5.25%, 10/15/19

    $ 5,100    $ 5,603

Tobacco Settlement Financing Corp. Revenue Bonds, Series B-1C,

      

5.25%, 6/1/13

      1,820      1,823

5.50%, 6/1/15

      5,000      5,072

5.50%, 6/1/17

      4,500      4,592

5.50%, 6/1/18

      5,000      5,117

5.50%, 6/1/19

      2,500      2,563

5.50%, 6/1/20

      5,000      5,124

Triborough Bridge & Tunnel Authority Revenue Refunding Bonds (NATL-RE Insured),

      

5.50%, 11/15/21

      5,000      5,611

Triborough Bridge & Tunnel Authority, Revenue Refunding Bonds, Series B, (G.O. Authority),

      

5.00%, 11/15/32

      8,035      8,042
         
        176,685
         

North Carolina - 1.9%

      

North Carolina Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series A,

      

5.20%, 1/1/10

      2,505      2,540

North Carolina Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series A (Assured Guaranty Insured),

      

5.25%, 1/1/19

      8,115      8,512

North Carolina G.O. Unlimited Bonds, Series A, Prerefunded,

      

5.25%, 3/1/15

      10,000      11,532

North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series A,

      

5.25%, 1/1/20

      2,000      2,068
         
        24,652
         

Ohio - 1.5%

      

Akron G.O. Limited Bonds, Prerefunded,

      

5.75%, 12/1/10

      1,000      1,082

Cleveland Airport System Revenue Bonds, Series A (AMBAC Insured),

      

5.00%, 1/1/23

      4,000      4,023

Cleveland City Airport System Revenue Bonds, Series B (AMT) (FSA Insured),

      

5.25%, 1/1/12

      5,000      5,076

Cuyahoga Community College District General Receipts Revenue Bonds, Series C,

      

5.00%, 8/1/23

      3,470      3,544

Ohio Housing Finance Agency Mortgage Revenue Bonds, Series C (AMT), Residential Mortgage-Backed Securities (Collateralized by GNMA Securities),

      

5.15%, 3/1/13

      515      525

Ohio State Water Development Authority PCR, Series B, Water Quality,

      

5.00%, 6/1/23

      5,000      5,312
         
        19,562
         

Oregon - 1.5%

      

Oregon State Department of Transportation, Revenue Refunding Bonds, Series C, Senior Lien,

      

5.00%, 11/15/20

      10,000      10,884

Portland Airport Way Urban Renewal & Redevelopment Tax Increment Bonds, Series A (AMBAC Insured), Prerefunded,

      

6.00%, 6/15/10

      3,450      3,667

Portland City Sewer System Revenue Refunding Bonds, Series B, Second Lien (FSA Insured),

      

5.00%, 6/15/23

      5,000      5,325
         
        19,876
         

Pennsylvania - 1.9%

      

Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A (AMT), Amtrak Project,

      

6.13%, 11/1/21

      1,200      1,123

Pennsylvania Housing Finance Agency SFM Revenue Bonds, Series 100A (AMT),

      

5.10%, 10/1/22

      3,000      2,960

Pennsylvania Housing Finance Agency SFM Revenue Bonds, Series 72A (AMT),

      

4.80%, 4/1/12

      750      760

Pennsylvania State G.O. Unlimited Bonds, Second Series (NATL-RE FGIC Insured),

      

5.00%, 7/1/09

      5,000      5,001

Pennsylvania State Higher Education Assistance Agency Revenue Bonds, Capital Acquisition (NATL-RE Insured - G.O. of Agency), Prerefunded,

      

6.00%, 12/15/10

      1,815      1,955

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

      

Pennsylvania - 1.9% continued

      

6.13%, 12/15/10

    $ 1,925    $ 2,078

Pennsylvania State Turnpike Commission Oil Franchise Refunding TRB, Series A (AMBAC Insured),

      

5.00%, 12/1/19

      5,075      5,458

Philadelphia G.O. Unlimited Refunding Bonds, Series A (FSA Insured),

      

5.00%, 8/1/18

      5,000      5,123
         
        24,458
         

Puerto Rico - 2.1%

      

Puerto Rico Electric Power Authority Revenue Refunding Bonds, Series UU (FSA Insured),

      

5.00%, 7/1/20

      3,000      2,995

Puerto Rico Municipal Financing Agency G.O. Unlimited Bonds, Series A (FSA Insured), Prerefunded,

      

6.00%, 8/1/09

      1,000      1,015

Puerto Rico Sales Tax Financing Corp., Convertible Capital Appreciation, First Subseries A, Revenue Bonds,

      

0.00%, 8/1/32

      10,000      6,300

Puerto Rico Sales Tax Financing Corp., First Subseries A, Revenue Bonds,

      

5.00%, Mandatory Put 8/1/11

      5,000      5,056

5.25%, 8/1/27

      7,000      6,754

6.38%, 8/1/39

      5,000      5,136
         
        27,256
         

South Carolina - 2.4%

      

Piedmont Municipal Power Agency Electric Revenue Refunding Bonds, Series A-3 (Assured Guaranty Insured),

      

5.00%, 1/1/17

      2,250      2,390

5.00%, 1/1/18

      5,000      5,265

Richland County School District No. 2 G.O. Unlimited Bonds, Series A (SCSDE Insured),

      

5.00%, 2/1/22

      10,000      10,927

5.00%, 2/1/23

      5,820      6,312

South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper,

      

5.50%, 1/1/38

      5,000      5,233

South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A (AMBAC Insured), Prerefunded,

      

5.50%, 10/1/09

      1,250      1,279
         
        31,406
         

Tennessee - 1.3%

      

Memphis-Shelby County Airport Authority Revenue Bonds, Series D (AMT) (AMBAC Insured),

      

6.25%, 3/1/15

      2,000      2,038

Metropolitan Government Nashville & Davidson County G.O. Unlimited Refunding Bonds,

      

5.00%, 5/15/20

      10,000      10,866

Shelby County G.O. Unlimited Refunding Bonds,

      

5.00%, 4/1/16

      3,000      3,402
         
        16,306
         

Texas - 7.0%

      

Austin Water & Wastewater System Revenue Refunding Bonds, Series A (AMBAC Insured),

      

5.00%, 11/15/28

      5,000      5,051

Dallas Texas Area Rapid Transportation Sales TRB, Senior Lien,

      

4.75%, 12/1/30

      5,000      4,901

Dallas-Fort Worth International Airport Revenue Bonds, Series A (AMT) (NATL-RE Insured),

      

5.50%, 11/1/20

      1,000      993

Eagle Mountain & Saginaw Independent School District, G.O. Unlimited Bonds, (PSF-Gtd.),

      

5.00%, 8/15/38

      5,170      5,200

Ennis Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds (PSF Gtd.), Prerefunded,

      

0.00%, 8/15/10

      2,225      777

Ennis Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds, Unrefunded Balance (PSF Gtd.),

      

0.00%, 8/15/26

      1,140      380

Frisco Independent School District Building G.O. Unlimited Bonds (PSF Gtd.),

      

6.50%, 8/15/14

      1,535      1,736

Harris County G.O. Limited Refunding Bonds, Series C,

      

5.75%, 10/1/25

      4,260      4,766

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND    continued   

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 91.1% continued

      

Texas - 7.0% continued

      

Lower Colorado River Authority Revenue Refunding Bonds, Series A,

      

6.50%, 5/15/37

    $ 10,000    $ 10,427

Lower Colorado River Authority Unrefunded Balance Revenue Refunding Bonds, Series B (FSA Insured),

      

6.00%, 5/15/10

      8,745      8,871

Lower Colorado River Authority, Refunding Revenue Bonds,

      

5.50%, 5/15/33

      2,000      1,974

North East Independent School District, G.O. Unlimited Bonds (PSF-Gtd.),

      

5.25%, 2/1/29

      3,565      3,920

Panhandle Regional Multifamily Housing Finance Agency Corp. Revenue Bonds, Series A (Collateralized by GNMA Securities),

      

6.50%, 7/20/21

      500      533

Sabine River Authority Revenue Refunding Bonds, Southwestern Electric Co. (NATL-RE),

      

4.95%, 3/1/18

      3,000      2,927

Sam Rayburn Municipal Power Agency Revenue Refunding Bonds,

      

6.00%, 10/1/16

      1,000      1,016

6.00%, 10/1/21

      1,250      1,253

San Antonio Electric & Gas Revenue Refunding Bonds, Series A,

      

4.50%, 2/1/21

      15,450      15,453

San Antonio Electric & Gas Systems Revenue Bonds,

      

5.00%, 2/1/21

      10,000      10,678

Texas Municipal Power Agency Revenue Refunding Bonds, Sub Lien (NATL-RE FGIC ),

      

4.40%, 9/1/11

      5,000      5,012

Texas State G.O. Unlimited Bonds, Housing Assistance Program,

      

5.25%, 12/1/23

      3,000      3,295

University of Texas, Financing System, Revenue Bonds, Series B,

      

5.00%, 8/15/22

      1,100      1,169
         
        90,332
         

Utah - 0.1%

      

Utah Municipal Power Agency, Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/11

      1,000      1,065
         

Virgin Islands - 0.0%

      

Virgin Islands PFA Revenue Bonds, Series A, Gross Receipts Tax Lien Note,

      

5.63%, 10/1/10

      370      379
         

Virginia - 3.4%

      

Fairfax County Sewer Revenue Bonds,

      

4.00%, 7/15/24

      4,055      4,032

4.00%, 7/15/25

      2,575      2,532

4.00%, 7/15/26

      1,640      1,595

Hampton Roads Sanitation District Wastewater Revenue Bonds,

      

5.00%, 4/1/33

      5,000      5,088

Virginia College Building Authority Education Facility Revenue Bonds, Series A, 21st Century College & Equipment,

      

5.00%, 2/1/21

      11,180      12,329

5.00%, 2/1/29

      5,000      5,201

Virginia State Housing Development Authority Commonwealth Mortgage Revenue Bonds, Series E - Subseries E-1 (AMT) (G.O. of Authority),

      

4.00%, 4/1/10

      5,100      5,155

Virginia State Housing Development Authority Commonwealth Mortgage Revenue Bonds, Series F - Subseries F-1 (G.O. of Authority),

      

4.00%, 4/1/12

      2,000      2,085

Virginia State Public School Authority Revenue Bonds, Series C (State Aid Withholding),

      

5.25%, 8/1/17

      5,000      5,539
         
        43,556
         

Washington - 1.5%

      

Washington State, Motor Vehicle Fuel Tax, G.O. Unlimited Bonds, Series B, (NATL-RE Insured),

      

5.00%, 7/1/30

      9,000      9,178

Washington State, Revenue Refunding Bonds, G.O. Unlimited Bonds, Series R-2010A,

      

5.00%, 1/1/21(1)

      10,000      10,875
         
        20,053
         

Total Municipal Bonds

      
         

(Cost $1,168,556)

         1,173,630

 

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 10.3%

      

Arizona Health Facilities Authority Revenue VRDB, Series B, Banner Health (Scotiabank LOC),

      

0.20%, 7/1/09

    $ 4,770    $ 4,770   

California Pollution Control Financing Authority Revenue Refunding VRDB, BP West Coast Productions LLC,

      

0.15%, 7/1/09

      500      500   

Chicago G.O. Unlimited Refunding VRDB, Series E,

      

0.20%, 7/1/09

      31,100      31,100   

Connecticut State Health & Educational Facilities Authority Revenue VRDB, Series A, Pierce Memorial Baptist Home (LaSalle Bank N.A. LOC),

     

0.18%, 7/2/09

      1,975      1,975   

Connecticut State Health & Educational Facilities Authority Revenue VRDB, Series V1, Yale University,

      

0.15%, 7/1/09

      1,200      1,200   

Cuyahoga County Revenue VRDB, Subseries B3, Cleveland Clinic,

      

0.18%, 7/1/09

      4,500      4,500   

Georgia State G.O. Unlimited VRDB, Series H-1,

      

0.35%, 7/2/09

      1,532      1,532   

Harris County Cultural Education Facilities Finance Corp. Revenue VRDB, Subseries C-1, Methodist Hospital,

      

0.18%, 7/1/09

      150      150   

Harris County Health Facilities Development Corp. Revenue Refunding VRDB, Series A-1, Methodist Hospital Systems,

      

0.18%, 7/1/09

      7,000      7,000   

Illinois Finance Authority Revenue VRDB, Series A, Central DuPuge Health,

      

0.18%, 7/1/09

      3,590      3,590   

Indianapolis Local Public Improvement Bond Bank Revenue Refunding VRDB, Series F-1 (NATL-RE Insured),

      

3.50%, 7/1/09

      15,000      15,000   

Kansas City IDA Downtown Redevelopment Revenue VRDB, Series B, (JP Morgan Chase Bank LOC),

      

0.35%, 7/1/09

      13,365      13,365   

0.35%, 7/1/09

      7,800      7,800   

Lee County Housing Finance Authority Multifamily Housing Revenue Refunding VRDB, Series A, Forestwood Apartments Project A (FNMA Insured),

     

0.38%, 7/1/09

      300      300   

Louisiana State Offshore Terminal Authority Deepwater Port Revenue Refunding VRDB, Series A, Loop LLC Project (SunTrust Bank LOC),

      

0.90%, 7/1/09

      1,200      1,200   

Lower Neches Valley Authority Industrial Development Corp. Exempt Facilities Revenue Refunding VRDB, Series A, Exxonmobil Project,

      

0.28%, 7/1/09

      1,100      1,100   

Massachusetts State G.O. Unlimited VRDB, Series B,

      

0.40%, 7/1/09

      8,600      8,600   

Missouri State Health & Educational Facilities Authority, St. Louis University, Revenue VRDB, Series B-2, (Bank of America N.A. LOC),

      

0.30%, 7/1/09

      11,765      11,765   

Montana Facility Finance Authority Revenue VRDB, Series A, Sister of Charity,

      

0.23%, 7/1/09

      1,265      1,265   

Orange County Health Facilities Authority Revenue VRDB, Series D, Hospital Orlando Regional (Suntrust Bank N.A. LOC),

      

0.90%, 7/1/09

      5,200      5,200   

Pima County IDA Revenue VRDB, Series A, Senior Living Facilities - La Posada (LaSalle Bank N.A. LOC),

      

0.30%, 7/2/09

      1,140      1,140   

Texas Water Development Board Revenue Refunding VRDB, Sub Lien Series A, State Revolving,

      

0.30%, 7/1/09

      2,791      2,791   

Tucson IDA Revenue VRDB, Series A, Family Housing Residence Projects (FNMA Insured),

      

0.31%, 7/2/09

      400      400   

Waco Educational Finance Corp. Revenue VRDB, Series A, Baylor University,

      

0.25%, 7/1/09

      7,200      7,200   
           

Total Short-Term Investments

      
           

(Cost $133,443)

         133,443   
           

Total Investments - 101.4%

      
           

(Cost $1,301,999)

         1,307,073   

Liabilities less Other Assets - (1.4)%

         (18,125 ) 
           

NET ASSETS - 100.0%

       $ 1,288,948   

 

(1) When-Issued Security.

 

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

INTERMEDIATE TAX-EXEMPT FUND     continued    JUNE 30, 2009 (UNAUDITED)

 

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the Intermediate Tax-Exempt Fund were:

 

INDUSTRY SECTOR

    % OF INVESTMENTS  

General

    21.0 % 

General Obligation

    18.2   

Higher Education

    5.3   

Power

    9.7   

Transportation

    10.8   

Water

    8.7   

All other sectors less than 5%

    26.3   
      

Total

    100.0 % 
      

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,301,999   
        

Gross tax appreciation of investments

    $ 17,661   

Gross tax depreciation of investments

      (12,587 ) 
        

Net tax appreciation of investments

    $ 5,074   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Intermediate Tax-Exempt Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Intermediate Tax-Exempt Fund

    $ —      $ 1,307,073 (1)    $ —      $ 1,307,073
                            

 

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

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:

AGC - Assured Guaranty Corp

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BHAC - Berkshire Hathaway Assurance Corp

COP - Certificate of Participation

CR - Custodial Receipts

FGIC - Financial Guaranty Insurance Corporation

FHLMC - Federal Home Loan Mortgage Association

FNMA - Federal National Mortgage Association

FSA - Financial Security Assurance

G.O. - General Obligation

GNMA - Government National Mortgage Association

Gtd. - Guaranteed

IBC - Insured Bond Certificates

IDA - Industrial Development Authority

ICC - Insured Custody Certificates

LOC - Letter of Credit

MBIA - Municipal Bond Insurance Association

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PSF - Permanent School Fund

SCSDE - South Corolina School District Enhancement

SFM - Single Family Mortgage

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand Bonds

XLCA - XL Capital Assurance

 

TAX-EXEMPT FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

   SCHEDULE OF INVESTMENTS
SHORT-INTERMEDIATE TAX-EXEMPT FUND    JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6%

      

Alabama - 0.2%

      

Jefferson County Sewer Capital Improvement Revenue Bonds, Series A (FGIC Insured), Prerefunded,

      

5.50%, 2/1/11

    $ 2,000    $ 2,133
         

Alaska - 0.6%

      

Alaska Municipal Bond Bank Authority Revenue Bonds, Series C (NATL-RE FGIC Insured), Prerefunded,

      

5.75%, 9/15/10

      750      796

Matanuska-Susitna Boro Lease Revenue Bonds, Goose Creek Correctional Center (Assured Guaranty Insured),

      

5.00%, 9/1/14

      4,285      4,689
         
        5,485
         

Arizona - 3.4%

      

Arizona Health Facilities Authority Revenue Bonds, Series D, Banner Health,

      

5.00%, 1/1/14

      2,000      2,070

Arizona School Facilities Board Revenue Bonds, Series A, State School Trust (AMBAC Insured),

      

5.25%, 7/1/10

      2,000      2,058

Arizona School Facilities Board Revenue Bonds, State School Improvement, Prerefunded,

      

5.25%, 7/1/12

      1,125      1,256

Arizona State Transportation Board Excise Tax Revenue Bonds, Maricopa County Regional Area Road,

      

5.00%, 7/1/15

      5,000      5,586

Gilbert Public Facilities Municipal Property Corp. Revenue Bonds,

      

4.00%, 7/1/13

      1,845      1,966

4.00%, 7/1/14

      1,910      2,026

Maricopa County Community College District G.O. Unlimited Bonds, Series C,

      

4.00%, 7/1/15

      1,000      1,080

4.00%, 7/1/16

      1,000      1,073

Maricopa County Unified School District No 4-Mesa G.O. Unlimited Bonds, Series D, Project of 2005,

      

4.00%, 7/1/14

      3,505      3,712

Phoenix City G.O. Unlimited Revenue Bonds, Series B,

      

5.00%, 7/1/16

      5,000      5,577

Pima County Street & Highway Revenue Bonds (NATL-RE FGIC Insured),

      

4.25%, 7/1/11

      1,540      1,544

Salt River Project Agricultural Improvement & Power District Electric Services Revenue Bonds, Series A,

      

5.00%, 1/1/16

      1,450      1,622

Tucson Water Systems Revenue Bonds,

      

5.00%, 7/1/16

      1,275      1,397
         
        30,967
         

California - 3.9%

      

California Health Facilities Financing Authority Revenue Bonds, Series C, Providence Health & Services,

      

5.00%, 10/1/14

      500      522

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 5/1/14

      2,400      2,518

California State G.O. Unlimited Refunding Bonds (FSA Insured),

      

5.25%, 2/1/10

      2,200      2,254

Corona-Norca California Unified School District G.O. Unlimited Notes,

      

3.50%, 2/1/10

      3,500      3,530

Los Angeles Unified School District G.O. Unlimited Bonds, Series I,

      

5.00%, 7/1/15

      5,000      5,448

Los Angeles Wastewater System Revenue Refunding Bonds, Series A,

      

5.00%, 6/1/16

      5,000      5,519

San Bernardino County Transportation Authority Sales TRB, Series A,

      

5.00%, 5/1/12

      5,250      5,571

San Francisco City & County COP, Series A (NATL-RE FGIC Insured),

      

4.00%, 9/1/09

      1,000      1,005

San Joaquin County Transportation Authority Sales TRB, Senior Notes,

      

5.00%, 4/1/11

      3,000      3,139

University of California Revenue Bonds, Series P, Regents University of California,

      

5.00%, 5/15/13

      5,085      5,633
         
        35,139
         

Colorado - 1.6%

      

Broomfield Open Space Park and Recreation Facilities COP (AMBAC Insured),

      

5.75%, 12/1/14

      2,000      2,096

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE TAX-EXEMPT FUND     continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

Colorado - 1.6% continued

      

Colorado Department of Transportation Revenue Anticipation Notes, Series A (NATL-RE Insured),

      

5.50%, 6/15/12

    $ 1,000    $ 1,109

Denver City & County Excise Tax Revenue Refunding Bonds, Series A, (Assured Guaranty Insured),

      

6.00%, 9/1/21

      5,000      5,431

E-470 Public Highway Authority Revenue Bonds, Series B2 (NATL-RE Insured),

      

5.00%, Mandatory Put 9/2/11

      2,000      2,030

Regional Transportation District COP, Series A, Transit Vehicles (AMBAC Insured),

      

5.00%, 12/1/16

      1,590      1,662

Regional Transportation District Refunding COP, Series A (NATL-RE FGIC Insured),

      

5.00%, 6/1/11

      1,750      1,831
         
        14,159
         

Connecticut - 0.5%

      

Cheshire G.O. Unlimited Refunding Bonds, Lot B,

      

4.00%, 8/1/09

      500      502

Connecticut State Special Tax Obligation Revenue Bonds, Series 1, 2nd Lien Transportation Infrastructure,

      

5.00%, 2/1/17

      2,500      2,769

Connecticut State Special Tax Obligation Revenue Bonds, Series A, Transportation Infrastructure (FSA Insured),

      

5.25%, 9/1/10

      500      527

Connecticut State Special Tax Obligation Revenue Refunding Bonds, Series B, Transportation Infrastructure (FSA Insured),

      

5.38%, 10/1/10

      250      264
         
        4,062
         

Florida - 8.0%

      

Citizens Property Insurance Corp. Revenue Notes, Series A-2, High Risk Account,

      

4.50%, 6/1/10

      15,000      15,183

Clay County Infrastructure Surtax Revenue Bonds (Assured Guaranty Insured),

      

5.25%, 10/1/17

      5,800      6,242

Florida Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A,

      

5.00%, 7/1/13

      5,000      5,174

Florida State Board of Education Capital Outlay 2007 G.O. Unlimited Bonds, Series B,

      

4.00%, 6/1/12

      675      718

Florida State Board of Education Capital Outlay G.O. Unlimited Bonds, Series G (NATL-RE FGIC Insured),

      

5.25%, 6/1/12

      1,000      1,096

Florida State Board of Education G.O. Unlimited Bonds, Series A,

      

5.00%, 6/1/12

      1,575      1,721

Florida State Board of Education G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured),

      

5.00%, 6/1/15

      5,750      6,319

Florida State Department of Environmental Preservation Revenue Bonds, Series A, Florida Forever Project (AMBAC Insured),

      

5.00%, 7/1/10

      1,500      1,553

Florida State Department of Transportation Right of Way Refunding G.O. Unlimited Bonds, Series B,

      

6.38%, 7/1/14

      1,500      1,749

Florida State Municipal Power Agency All Requirements Power Revenue Bonds, Series A,

      

5.00%, 10/1/16

      4,000      4,242

Jacksonville Excise TRB, Series B (AMBAC Insured),

      

5.38%, 10/1/18

      2,350      2,541

Miami-Dade County G.O. Unlimited Bonds, Series B, Building Better Communities Project,

      

5.00%, 7/1/15

      5,000      5,413

Miami-Dade County Water & Sewer Revenue Refunding Bonds (NATL-RE Insured),

      

5.00%, 10/1/10

      2,000      2,090

5.00%, 10/1/13

      3,500      3,827

Palm Beach County School Board COP, Series E (AMBAC Insured),

      

5.38%, 8/1/15

      5,000      5,338

Polk County Transportation Improvement Revenue Bonds (FSA Insured), Prerefunded,

      

5.25%, 12/1/10

      1,000      1,076

Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series A,

      

5.00%, 10/1/16

      1,500      1,600

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

Florida - 8.0% continued

      

Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series B,

      

5.00%, 10/1/11

    $ 1,510    $ 1,602

5.00%, 10/1/12

      1,440      1,551

5.00%, 10/1/14

      2,535      2,739

Tallahassee Blueprint 2000 Intergovernmental Agency Revenue Bonds (NATL-RE Insured),

      

5.00%, 10/1/14

      500      544
         
        72,318
         

Georgia - 2.7%

      

Bulloch County School District Sales Tax G.O. Unlimited Bonds (State Aid Withholding),

      

5.00%, 5/1/12

      2,845      3,128

Coweta County Development Authority Revenue Bonds, Newnan Water & Sewerage Project (AMBAC Insured), Prerefunded,

      

5.25%, 1/1/10

      1,000      1,034

De Kalb County School District G.O. Unlimited (State Aid Withholding),

      

5.00%, 2/1/11

      1,000      1,064

Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A,

      

5.00%, 6/1/13

      3,000      3,334

5.00%, 6/1/18

      5,000      5,538

Gwinnett County Water & Sewerage Authority Revenue Bonds (County Gtd.), Prerefunded,

      

5.00%, 8/1/12

      1,000      1,111

Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue Refunding Bonds, Series A, Third Indenture (NATL-RE FGIC Insured),

      

5.00%, 7/1/15

      4,000      4,474

Municipal Electric Authority of Georgia Revenue Bonds, Subseries D, Project One,

      

5.00%, 1/1/13

      1,710      1,818

5.00%, 1/1/14

      1,045      1,115

Municipal Electric Authority Revenue Bonds, Subseries A, Project One,

      

5.00%, 1/1/13

      2,000      2,126
         
        24,742
         

Hawaii - 1.2%

      

Hawaii State G.O. Unlimited Bonds, Series DQ,

      

5.00%, 6/1/15

      5,000      5,640

Hawaii State G.O. Unlimited Bonds, Series DA (NATL-RE Insured),

      

5.25%, 9/1/16

      5,000      5,525
         
        11,165
         

Idaho - 0.1%

      

University of Idaho Adjustable Revenue Refunding Bonds, Series A (FSA Insured),

      

4.38%, Mandatory Put 4/1/11

      750      764
         

Illinois - 4.0%

      

Chicago G.O. Unlimited Bonds, Lakefront Millenium Parking Facilities (NATL-RE Insured), Prerefunded,

      

5.70%, 1/1/12

      700      790

Chicago Transit Authority Revenue Bonds, Federal Transit Administration Section 5309, (Assured Guaranty Insured),

      

5.00%, 6/1/12

      1,385      1,511

Grundy & Will Counties Community Unit School District No. 1 G.O. Unlimited Bonds,

      

5.88%, 2/1/16

      1,120      1,260

Illinois State G.O. Unlimited Bonds,

      

5.00%, 1/1/14

      1,350      1,481

Illinois State G.O. Unlimited Bonds, 1st Series,

      

5.55%, 8/1/19

      5,320      5,499

Illinois State G.O. Unlimited Bonds, Series A (FGIC-TCRS Insured),

      

5.25%, 10/1/15

      5,080      5,528

Illinois State Sales TRB,

      

5.38%, 6/15/16

      2,010      2,138

Illinois State Toll Highway Authority Revenue Bonds, Series A2 (FSA Insured), Prerefunded,

      

5.00%, 7/1/16

      8,075      9,292

Kendall, Kane and Will Counties Community Unit School District No. 308 G.O. Unlimited Bonds, Series B (FGIC Insured), Prerefunded,

      

5.25%, 10/1/12

      1,000      1,116

Metropolitan Pier & Exposition Authority Dedicated Sales TRB, McCormick Place Expansion Project (FSA-CR FGIC Insured),

      

5.50%, 12/15/24

      5,000      5,101

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

Illinois - 4.0% continued

      

Metropolitan Pier & Exposition Authority Dedicated Sales TRB, McCormick Place Expansion Project (NATL-RE FGIC Insured),

      

5.38%, 12/15/16

    $ 2,250    $ 2,306
         
        36,022
         

Indiana - 2.0%

      

Indiana Health Facilities Financing Authority Revenue Bonds, Series A1, Ascension Health Credit,

      

3.63%, Mandatory Put 8/1/11

      5,000      5,090

Indiana State Finance Authority Revenue Refunding Bonds,

      

5.00%, 7/1/14

      3,485      3,803

Indiana Transportation Finance Authority Revenue Bonds, Series A (FGIC Insured), Prerefunded,

      

5.13%, 6/1/14

      3,350      3,833

Indiana University Revenue Bonds, Series O, Student Fee (NATL-RE FGIC Insured),

      

5.00%, 8/1/11

      600      645

Indianapolis Local Public Improvement Revenue Bonds, Series D,

      

5.25%, 1/10/15

      2,430      2,657

Mount Vernon of Posey County Multi-School Building Corp. Revenue Bonds, First Mortgage (AMBAC Insured State Aid Withholding),

      

4.00%, 1/15/13

      500      532

Pike Township Multi-School Building Corp. Revenue Bonds, First Mortgage (State Aid Withholding),

      

4.00%, 1/15/14

      1,805      1,900
         
        18,460
         

Kansas - 0.2%

      

Wichita Kansas Water and Sewerage Utilities Revenue Bonds (NATL-RE FGIC Insured),

      

5.00%, 10/1/19

      2,000      2,048
         

Kentucky - 1.7%

      

Kentucky State Property & Buildings Commission Revenue Bonds, Project No. 93 (Assured Guaranty Insured),

      

5.25%, 2/1/17

      3,000      3,337

Kentucky State Property & Buildings Commission Revenue Bonds, Series A, Project No. 66 (NATL-RE Insured), Prerefunded,

      

5.75%, 5/1/10

      1,000      1,044

Kentucky State Property & Buildings Commission Revenue Bonds, Series A, Project No. 95,

      

5.00%, 8/1/15(1)

      5,805      6,380

Kentucky State Property & Buildings Commission Revenue Refunding Bonds,

      

5.00%, 11/1/12

      4,475      4,883
         
        15,644
         

Louisiana - 0.3%

      

Louisiana State G.O. Unlimited Bonds, Series A (FGIC Insured), Prerefunded,

      

5.25%, 11/15/10

      1,250      1,328

5.00%, 4/1/12

      1,000      1,097
         
        2,425
         

Maryland - 0.3%

      

Maryland State Department of Transportation Revenue Bonds,

      

4.50%, 2/15/12

      1,850      2,005

Montgomery County Public Improvement G.O. Unlimited Bonds, Series A,

      

5.00%, 5/1/12

      1,000      1,107
         
        3,112
         

Massachusetts - 0.7%

      

Massachusetts Bay Transportation Authority Revenue Bonds, Series A, Prerefunded,

      

5.00%, 7/1/14

      2,740      3,125

Massachusetts State G.O. Limited Bonds, Series C (NATL-RE FGIC Insured G.O. of Commonwealth),

      

5.50%, 11/1/14

      1,875      2,165

Massachusetts State G.O. Unlimited Refunding Bonds, Series A,

      

6.00%, 11/1/11

      1,275      1,410
         
        6,700
         

Michigan - 1.3%

      

Detroit Water Supply Systems Revenue Bonds, Series A, Senior Lien (NATL-RE Insured), Prerefunded,

      

5.25%, 7/1/13

      1,000      1,125

Michigan State Building Authority Revenue Refunding Bonds, Series I, Facilities Project (FSA Insured),

      

5.00%, 10/15/09

      3,600      3,642

5.00%, 10/15/10

      1,000      1,044

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

Michigan - 1.3% continued

      

Michigan State Building Authority Revenue Refunding Bonds, Series II, Facilities Project
(NATL-RE Insured), Prerefunded,

      

5.00%, 10/15/13

    $ 5,000    $ 5,622
         
        11,433
         

Minnesota - 1.6%

      

Bemidji G.O Unlimited Bonds, Temp Sales Tax,

      

4.50%, 2/1/12

      3,000      3,079

Minnesota Public Facilities Authority Water PCR Bonds, Series A,

      

5.00%, 3/1/12

      1,000      1,099

Minnesota State G.O. Unlimited Bonds, Series C,

      

5.00%, 8/1/13

      5,000      5,651

Northern Municipal Power Agency Electric System Revenue Refunding Bonds, Series A (Assured Guaranty Insured),

      

5.00%, 1/1/12

      2,190      2,332

5.00%, 1/1/14

      2,320      2,488
         
        14,649
         

Mississippi - 0.4%

      

Mississippi State G.O. Unlimited Refunding Bonds,

      

5.75%, 12/1/11

      510      564

Mississippi State G.O. Unlimited Bonds, Series A,

      

5.00%, 10/1/13

      2,620      2,940
         
        3,504
         

Nebraska - 0.2%

      

Nebraska Public Power District Revenue Bonds, Series B,

      

5.00%, 1/1/14

      1,730      1,876
         

Nevada - 1.4%

      

Clark County Airport Revenue Bonds, Series A, Subordinate Lien (NATL-RE Insured), Prerefunded,

      

6.00%, 7/1/10

      550      585

Clark County School District G.O. Limited Bonds, Series B (AMBAC Insured),

      

5.00%, 6/15/15

      2,000      2,133

Clark County School District G.O. Limited Bonds, Series C (FSA Insured),

      

5.00%, 6/15/18

      2,000      2,061

Clark County School District G.O. Limited Bonds, Series C (NATL-RE Insured),

      

5.00%, 6/15/12

      2,350      2,543

Clark County School District G.O. Limited Refunding Bonds, Series A (AMBAC Insured),

      

4.50%, 6/15/13

      2,000      2,125

Clark County Water Reclamation District G.O. Limited Bonds, Series B,

      

4.00%, 7/1/13

      1,225      1,293

Las Vegas G.O. Limited Refunding Bonds (AMBAC Insured),

      

5.00%, 6/1/13

      1,600      1,733
         
        12,473
         

New Hampshire - 0.8%

      

Manchester New Hampshire School Facilities Revenue Bonds (NATL-RE Insured), Prerefunded,

      

5.50%, 6/1/13

      1,400      1,577

New Hampshire Health & Education Facilities Authority Revenue Bonds, Series A, University Systems,

      

5.00%, 7/1/14

      3,000      3,259

New Hampshire State Capital Improvement G.O. Unlimited Bonds, Series C,

      

5.00%, 5/1/12

      2,500      2,756
         
        7,592
         

New Jersey - 1.8%

      

New Jersey COP, Series A, Equipment Lease Purchase,

      

5.00%, 6/15/12

      2,500      2,675

New Jersey Economic Development Authority Revenue Bonds, School Facility Construction (FSA Insured),

      

5.00%, Mandatory Put 9/1/14

      2,500      2,681

New Jersey State G.O. Unlimited Refunding Bonds, Series D,

      

6.00%, 2/15/11

      4,250      4,581

New Jersey State G.O. Unlimited Refunding Bonds, Series J (NATL-RE FGIC-TCRS Insured),

      

5.00%, 7/15/11

      750      807

New Jersey State Transit Corp. COP Bonds, Series A (AMBAC Insured),

      

5.25%, 9/15/14

      2,000      2,129

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series A (FSA Insured),

      

3.75%, 12/15/12

      1,500      1,502

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

New Jersey - 1.8% continued

      

Ocean County Utilities Authority Wastewater Revenue Refunding Bonds (NATL-RE Insured County Gtd.),

      

5.00%, 1/1/11

    $ 1,350    $ 1,430
         
        15,805
         

New Mexico - 0.8%

      

Albuquerque City G.O. Unlimited Bonds, Series A,

      

3.00%, 7/1/15

      1,590      1,633

Albuquerque Water and Sewer System Improvement Revenue Refunding Bonds, Series A,

      

5.25%, 7/1/09

      1,275      1,275

Los Alamos County Gross Receipts Tax Improvement Revenue Bonds,

      

4.00%, 6/1/13

      1,000      1,042

New Mexico Severance Tax Revenue Bonds, Series A-1,

      

4.00%, 7/1/16

      3,300      3,440
         
        7,390
         

New York - 8.2%

      

Metropolitan Transportation Authority Revenue Refunding Bonds, Series F (NATL-RE Insured),

      

5.00%, 11/15/12

      4,000      4,310

New York City G.O. Unlimited Bonds, Series B,

      

5.00%, 8/1/10

      1,055      1,102

New York City Health & Hospital Corp. Revenue Bonds, Series A, Health Systems (G.O. of Corp.),

      

5.00%, 2/15/13

      5,000      5,324

New York City Transitional Finance Authority Revenue Bonds, Series A, Future Tax,

      

5.00%, 11/1/15

      5,000      5,621

New York City Transitional Finance Authority Revenue Bonds, Series B, Future Tax,

      

5.25%, 8/1/18

      5,035      5,389

New York City Trust for Cultural Resources Revenue Refunding Bonds, Series 1A, Museum Modern Art,

      

5.00%, 10/1/10

      3,000      3,156

New York G.O. Unlimited Bonds, Series C,

      

5.25%, 8/1/11

      2,000      2,140

New York G.O. Unlimited Bonds, Series H-1,

      

5.00%, 3/1/16

      5,000      5,376

New York State Dormitory Authority Personal Income TRB, Series A,

      

5.00%, 3/15/16

      1,265      1,408

New York State Dormitory Authority State Supported Debt Revenue Bonds, Mental Health Services Improvement,

      

5.00%, 2/15/13

      5,000      5,332

New York State Dormitory Authority State Supported Debt Revenue Bonds, Series B, Mental Health Services Facilities Improvement,

      

5.00%, 2/15/14

      2,810      3,035

New York State Dormitory Authority State Supported Debt Revenue Bonds, Series B,

      

5.00%, 7/1/14

      1,370      1,494

New York State Dormitory Authority Supported Debt Revenue Bonds, Series C, School Districts Financing Program (Assured Guaranty Insured G.O. of District),

      

5.00%, 10/1/16

      1,905      2,056

5.00%, 10/1/17

      2,880      3,081

New York State Environmental Facilities Corp. State Clean Water & Drinking Revolving Funds Revenue Bonds, Series K, New York City Municipal Water Project,

      

5.25%, 6/15/21

      6,510      6,890

New York State Thruway Authority General Highway & Bridge Trust Fund, Revenue Bonds, Series A,

      

5.00%, 4/1/14

      1,000      1,106

New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series B,

      

5.00%, 4/1/14

      3,000      3,319

New York State Thruway Authority Services Contract Revenue Refunding Bonds, Bridge Service Contract,

      

5.00%, 4/1/13

      3,000      3,270

New York State Urban Development Corp. Revenue Bonds, Series B-1, State Personal Income Tax,

      

5.00%, 3/15/16

      2,075      2,310

New York State Urban Development Corp. Revenue Refunding Bonds, Series D,

      

5.00%, 1/1/16

      3,000      3,225

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

New York - 8.2% continued

      

Triborough Bridge & Tunnel Authority Revenue Refunding Bonds, Series B (G.O. of Authority),

      

5.25%, 11/15/18

    $ 5,000    $ 5,436
         
        74,380
         

North Carolina - 0.3%

      

North Carolina State Public Improvement G.O. Unlimited Bonds, Series A,

      

5.00%, 3/1/12

      2,300      2,532
         

Ohio - 0.8%

      

Ohio State G.O. Unlimited Refunding Bonds, Series A,

      

5.00%, 9/15/15

      6,000      6,785
         

Oklahoma - 0.2%

      

Oklahoma State Municipal Power Authority Power Supply System Revenue Bonds, Series A,

      

5.00%, 1/1/15

      1,575      1,715
         

Oregon - 1.0%

      

Clackamas County School District No. 86 G.O. Unlimited Bonds (School Board Guaranty), Prerefunded,

      

5.25%, 6/15/10

      1,000      1,046

Multnomah-Clackamas Counties School District No. 10JT Gresham-Barlow G.O. Unlimited Bonds (FSA Insured School Board Guaranty), Prerefunded,

     

5.50%, 6/15/11

      1,000      1,088

Oregon State Board Higher Education G.O. Unlimited Bonds, Series A,

      

5.00%, 8/1/17

      2,380      2,695

Washington County Clean Water Services Sewer Revenue Bonds, Series A, Senior Lien,

      

4.00%, 10/1/15

      2,435      2,583

Washington County School District No. 48J Beaverton G.O. Unlimited Refunding Bonds, Series A (FSA Insured),

      

5.00%, 6/1/12

      1,800      1,988
         
        9,400
         

Pennsylvania - 1.7%

      

Lehigh County General Purpose Authority Revenue Bonds, Saint Lukes Bethlehem Hospital, Prerefunded,

      

5.38%, 8/15/13

      1,000      1,136

Pennsylvania Higher Educational Facilities Authority Revenue Bonds, Series A, University of Pennsylvania,

      

5.00%, 9/1/17

      5,000      5,607

Pennsylvania Turnpike Commission Revenue Anticipation Notes, Series A (AMBAC Insured),

      

4.00%, 10/15/09

      2,000      2,005

University of Pittsburgh Commonwealth System of Higher Education Revenue Bonds, Series B, Capital Project (G.O. of University),

      

5.00%, 9/15/14

      6,000      6,687
         
        15,435
         

South Carolina - 0.3%

      

Greenville County School District Installment Purchase Revenue Bonds, Building Equity Sooner Tomorrow, Prerefunded,

      

5.50%, 12/1/12

      1,140      1,308

South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A (AMBAC Insured), Prerefunded,

      

5.50%, 10/1/09

      1,000      1,023
         
        2,331
         

Tennessee - 2.2%

      

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Bonds, Series B, Vanderbilt University (G.O. of University),

      

5.25%, 10/1/15

      5,000      5,730

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Refunding Bonds, Series B, Vanderbilt University (G.O. of University),

      

5.00%, 10/1/12

      1,600      1,768

Shelby County G.O. Unlimited Refunding Bonds,

      

5.00%, 4/1/15

      5,000      5,657

Tennessee State G.O. Unlimited Bonds, Series A,

      

5.00%, 5/1/15

      5,000      5,710

Tennessee State School Board Authority Revenue Bonds, Series B, Higher Educational Facilities 2nd Program,

      

4.00%, 5/1/14

      1,030      1,107
         
        19,972
         

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

Texas - 4.4%

      

Bell County Texas G.O. Limited Tax Notes,

      

5.00%, 2/15/15

    $ 2,000    $ 2,141

Corpus Christi G.O. Limited Certificates (FSA Insured), Prerefunded,

      

5.75%, 3/1/11

      1,000      1,080

Dallas Waterworks & Sewer Systems Revenue Refunding Bonds (AMBAC Insured),

      

5.00%, 10/1/11

      3,435      3,717

Fort Worth G.O. Certificates Limited (FSA Insured), Prerefunded,

      

4.38%, 3/1/13

      1,000      1,097

Galena Park Independent School District G.O. Unlimited Bonds (PSF Gtd.), Prerefunded,

      

5.75%, 8/15/10

      300      318

Harris County Cultural Education Facilities Finance Corp. Revenue Bonds, Series B, Methodist Hospital,

      

5.25%, 12/1/13

      3,000      3,222

Harris County Revenue Refunding Bonds Senior Lien, Toll Road (FSA Insured),

      

5.38%, 8/15/09

      1,000      1,006

Irving Improvement Refunding G.O. Limited Bonds,

      

5.00%, 9/15/11

      1,000      1,085

Lower Colorado River Authority Revenue Refunding Bonds,

      

5.00%, 5/15/13

      1,000      1,078

5.00%, 5/15/15

      1,580      1,702

Lower Colorado River Authority Revenue Refunding Bonds, Series B, Unrefunded Balance (FSA Insured),

      

6.00%, 5/15/12

      4,985      5,053

Lower Colorado River Authority Transmission Contract Revenue Bonds (FSA Insured),

      

5.38%, 5/15/14

      1,235      1,327

McKinney G.O. Limited Bonds, Series B, Prerefunded,

      

5.50%, 8/15/09

      400      403

North Texas Tollway Authority Revenue Refunding Bonds, Series A, First Tier,

      

5.00%, 1/1/12

      2,000      2,107

North Texas Tollway Authority Revenue Refunding Bonds, Series H, First Tier,

      

5.00%, Mandatory Put 1/1/11

      3,000      3,068

Plano Independent School District G.O. Unlimited Bonds, Series A, School Building,

      

5.00%, 2/15/12

      1,000      1,093

San Antonio Electric & Gas Revenue Bonds, Junior Lien,

      

3.63%, Mandatory Put 12/1/10

      4,000      4,101

San Antonio Electric & Gas Systems Revenue Refunding Bonds, Series A,

      

5.50%, 2/1/12

      1,350      1,482

San Antonio General Improvement Refunding G.O. Limited Bonds,

      

4.00%, 8/1/12

      1,585      1,709

Texas State PFA G.O. Unlimited Refunding Bonds,

      

5.50%, 10/1/12

      2,260      2,551
         
        39,340
         

Utah - 2.0%

      

Alpine School District G.O. Unlimited Bonds (School Board Guaranty), Prerefunded,

      

5.25%, 9/15/11

      2,000      2,186

Intermountain Power Agency Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/12

      10,000      10,725

5.50%, 7/1/14

      3,500      3,777

Uintah County Municipal Building Authority Lease Revenue Bonds,

      

4.50%, 6/1/14

      650      683

Utah State G.O. Unlimited Refunding Bonds, Series B,

      

5.38%, 7/1/12

      1,000      1,122
         
        18,493
         

Virginia - 2.1%

      

Loudoun County Public Improvement G.O. Unlimited Bonds, Series B (State Aid Withholding),

      

5.00%, 12/1/13

      1,000      1,140

Virginia College Building Authority Education Facilities Revenue Refunding Bonds, Series B, 21st Century College Program,

      

5.00%, 2/1/11

      4,600      4,889

Virginia State Public Building Authority Public Facilities Revenue Bonds, Series B,

      

5.00%, 8/1/16

      5,000      5,691

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 67.6% continued

      

Virginia - 2.1% continued

      

Virginia State Public Building Authority Public Facilities Revenue Refunding Bonds, Series B,

      

5.00%, 8/1/12

    $ 1,355    $ 1,502

Virginia State Public School Authority Revenue Bonds, Series B-1 (State Aid Withholding),

      

5.00%, 8/1/16

      1,000      1,138

Virginia State Resources Authority Infrastructure Revenue Bonds, Series A, Pooled Financing Program,

      

5.00%, 11/1/15

      3,025      3,454

Virginia State Resources Authority Infrastructure Revenue Bonds, Series B, Pooled Financing Program,

      

5.00%, 11/1/10

      775      817
         
        18,631
         

Washington - 2.1%

      

Energy Northwest Electric Revenue Refunding Bonds, Series A,

      

5.00%, 7/1/14

      3,500      3,883

Energy Northwest Electric Revenue Refunding Bonds, Series A, Project 1,

      

5.50%, 7/1/14

      1,200      1,358

Energy Northwest Electric Revenue Refunding Bonds, Series A, Project 3,

      

5.00%, 7/1/15

      5,000      5,551

Energy Northwest Electric Revenue Refunding Bonds, Series C, Project 3,

      

5.00%, 7/1/12

      150      164

Franklin County Public Utility District No. 001 Electric Revenue Bonds (NATL-RE Insured), Prerefunded,

      

5.63%, 9/1/12

      1,000      1,134

King County Sewer Revenue Refunding Bonds, Series B (FSA Insured),

      

5.50%, 1/1/15

      1,500      1,625

Tacoma Solid Waste Utilities Revenue Refunding Bonds (AMBAC Insured), Prerefunded,

      

5.25%, 12/1/11

      3,000      3,298

Washington State G.O. Unlimited Bonds, Series C, Various Purpose (NATL-RE FGIC Insured),

      

5.25%, 1/1/19

      2,000      2,059
         
        19,072
         

Wisconsin - 2.2%

      

Milwaukee City G.O. Unlimited Promissory Notes, Series N1,

      

5.00%, 2/15/16

      4,300      4,831

Milwaukee City G.O. Unlimited Promissory Notes, Series N1 (AMBAC Insured),

      

5.00%, 2/15/12

      2,575      2,812

Milwaukee County G.O. Unlimited Refunding Bonds, Series A,

      

3.40%, 8/1/14

      5,000      5,217

Wisconsin State G.O. Unlimited Bonds, Series D,

      

5.00%, 5/1/15

      4,625      5,172

Wisconsin State G.O. Unlimited Bonds, Series F (FSA Insured), Prerefunded,

      

5.50%, 5/1/12

      1,000      1,116

Wisconsin State G.O. Unlimited Refunding Bonds, Series 3 (NATL-RE FGIC Insured),

      

5.25%, 5/1/10

      1,000      1,039
         
        20,187
         

Wyoming - 0.4%

      

Campbell County Recreation Project Board Lease Revenue Bonds,

      

5.00%, 6/15/12

      3,000      3,221
         

Total Municipal Bonds

      
         

(Cost $602,130)

         611,561
     NUMBER
OF SHARES		     

INVESTMENT COMPANIES - 0.0%

      

AIM Tax-Free Cash Reserve Portfolio

      95,757      96
         

Total Investment Companies

      
         

(Cost $96)

         96
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 31.6%

      

Arizona Health Facilities Authority VRDB, Series C, Banner Health (Scotiabank LOC),

      

0.35%, 7/1/09

    $ 2,200      2,200

Bethlehem Area School District G.O. Unlimited VRDB (FSA Insured State Aid Withholding),

      

2.10%, 7/2/09

      14,495      14,495

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT-TERM INVESTMENTS - 31.6% continued

      

Broward County School Board Certificate Participation VRDB, Series B (FSA Insured),

      

1.00%, 7/2/09

    $ 15,000    $ 15,000

California State Department of Water Resources Power Supply Revenue VRDB, Series C-7 (FSA Insured),

      

0.70%, 7/2/09

      300      300

Chicago Board of Education G.O. Unlimited VRDB, Series B (FSA Insured),

      

1.00%, 7/2/09

      20,000      20,000

Colorado Springs Utilities Revenue Refunding Bonds, Series A, Subordinate Lien,

      

1.00%, 7/2/09

      5,400      5,400

Denver City & County Multi-Family Housing Revenue VRDB, Ogden Residences Project (Credit Lyonnais LOC),

      

0.52%, 7/1/09

      2,600      2,600

Everett Public Facilities District Project Revenue VRDB,

      

1.50%, 7/1/09

      2,000      2,000

Fayetteville Public Works Commission Revenue Refunding VRDB, Series A (FSA Insured),

      

1.00%, 7/1/09

      15,000      15,000

Harris County Health Facilities Development Corp. Hospital Revenue Refunding VRDB, Series A, Memorial Hermann Healthcare (FSA Insured),

      

1.75%, 7/1/09

      20,000      20,000

Harris County Health Facilities Development Corp. Revenue Refunding VRDB, Series A-1, Methodist Hospital Systems,

      

0.18%, 7/1/09

      8,500      8,500

Illinois Finance Authority Revenue VRDB, Mercy Alliance Project (M&I Marley & Ilsley LOC),

      

1.65%, 7/2/09

      1,265      1,265

Illinois Finance Authority Revenue VRDB, Series A, Central DuPuge Health,

      

0.18%, 7/1/09

      6,000      6,000

Illinois Finance Authority Revenue VRDB, Series D, The Clare Water Project ( Bank of America N.A. LOC),

      

0.30%, 7/2/09

      5,250      5,250

Illinois State Toll Highway Authority Revenue VRDB, Series A2, Senior Priority,

      

0.65%, 7/2/09

      10,000      10,000

Illinois State Toll Highway Authority Revenue VRDB, Series A2, Senior Priority (FSA Insured),

      

1.25%, 7/2/09

      10,750      10,750

Indianapolis Local Public Improvement Bond Bank Revenue Refunding VRDB, Series F-1 (NATL-RE Insured),

      

3.50%, 7/1/09

      20,000      20,000

Iowa Finance Authority Health Care Facilities Revenue VRDB, Care Initiatives Project (KBC Bank N.V. LOC),

      

0.30%, 7/1/09

      660      660

Jacksonville PCR Refunding VRDB, Florida Power and Light Co. Project,

      

0.72%, 7/1/09

      400      400

Kansas City IDA Revenue VRDB, Series B, Downtown Redevelopment District (JP Morgan Chase Bank LOC),

      

0.35%, 7/1/09

      3,835      3,835

Kansas Development Finance Authority Revenue VRDB, Series BB, VLG Shalom Obligation Group (Sovereign Bank FSB LOC),

      

0.31%, 7/2/09

      755      755

Long Island Power Authority Electric System Revenue VRDB, Series F (FSA Insured),

      

1.25%, 7/1/09

      2,150      2,150

Long Island Power Authority Electric System Revenue VRDB, Series J (FSA Insured),

      

0.95%, 7/6/09

      11,120      11,120

Louisville & Jefferson County Metropolitan Sewer & Drain System District Revenue Bonds (FSA Insured),

      

0.35%, 7/1/09

      10,500      10,500

Lufkin Health Facilities Development Corp. Revenue Refunding VRDB, Memorial Health System (Wachovia Bank N.A. LOC),

      

0.29%, 7/1/09

      1,300      1,300

Maryland State Stadium Authority Sports Facilities Lease Revenue Refunding VRDB,

      

0.60%, 7/2/09

      5,000      5,000

Massachusetts State G.O. Unlimited VRDB, Series B,

      

0.40%, 7/1/09

      4,200      4,200

Metropolitan Transportation Authority Dedicated Tax Revenue VRDB, Series B (FSA Insured),

      

0.75%, 7/2/09

      20,000      20,000

 

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

SHORT-TERM INVESTMENTS - 31.6% continued

      

Minneapolis & Saint Paul Housing & Redevelopment Authority Healthcare System Revenue VRDB, Series A, Childrens Hospital Clinics (FSA Insured),

      

0.28%, 7/1/09

    $ 1,200    $ 1,200

Missouri State Health & Educational Facilities Authority Revenue VRDB, Series B, Saint Louis University,

      

0.35%, 7/1/09

      400      400

Nazareth Area School District G.O Limited VRDB (FSA Insured State Aid Withholding),

      

2.10%, 7/2/09

      10,995      10,995

New Hampshire Health & Education Facilities Authority Revenue VRDB, Saint Anselm College (RBS Citizens N.A. LOC),

      

3.00%, 7/1/09

      200      200

New York State Dormitory Authority Mental Health Services Revenue VRDB, Subseries D-2B (FSA Insured),

      

0.75%, 7/2/09

      13,875      13,875

North Penn Water Authority Revenue VRDB (FSA Insured),

      

2.10%, 7/2/09

      8,500      8,500

Orange County Health Facilities Authority Revenue VRDB, Series D, Hospital Orlando Regional (Suntrust Bank N.A. LOC),

      

0.90%, 7/1/09

      1,600      1,600

Orlando & Orange County Expressway Authority Revenue Refunding VRDB, Series C1 (FSA Insured),

      

1.00%, 7/2/09

      5,000      5,000

Orlando & Orange County Expressway Authority Revenue Refunding VRDB, Series C3 (FSA Insured),

      

1.20%, 7/2/09

      5,420      5,420

Pima County IDA Revenue VRDB, Series A, Senior Living Facilities - La Posada (LaSalle Bank N.A. LOC),

      

0.30%, 7/2/09

      1,700      1,700

Pinellas County Health Authority Revenue Refunding VRDB, Hospital Facilities-Bayfront Projects (Suntrust Bank LOC),

      

0.90%, 7/1/09

      2,900      2,900

Texas Water Development Board Revenue Refunding VRDB, Sub Lien Series A, State Revolving,

      

0.30%, 7/1/09

      3,660      3,660

Tucson IDA Revenue VRDB, Series A, Family Housing Residence Projects (Fannie Mae Insured),

      

0.31%, 7/2/09

      1,200      1,200

Uinta County PCR Refunding VRDB, Chevron U.S.A. Inc., Project,

      

0.20%, 7/1/09

      1,100      1,100

University of Massachusetts Building Authority Revenue Refunding VRDB, Series 2008-4, (State Gtd.),

      

0.25%, 7/1/09

      2,700      2,700

Utah Water Finance Agency Revenue VRDB, Series B-3,

      

0.33%, 7/1/09

      2,500      2,500

Valdez Marine Term Revenue Refunding VRDB, Series B, BP Pipelines Project,

      

0.25%, 7/1/09

      700      700

Valdez Marine Term Revenue Refunding VRDB, Series B, Exxon Pipeline Co. Project,

      

0.17%, 7/1/09

      3,200      3,200
         

Total Short-Term Investments

      
         

(Cost $285,530)

         285,530
         

Total Investments - 99.2%

      
         

(Cost $887,756)

         897,187

Other Assets less Liabilities - 0.8%

         7,667
         

NET ASSETS - 100.0%

       $ 904,854

 

(1) When-Issued Security.

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the Short-Intermediate Tax-Exempt Fund were:

 

INDUSTRY SECTOR

    % OF INVESTMENTS  

General

    21.1 % 

General Obligation

    15.4   

Higher Education

    5.1   

Medical

    9.4   

Power

    7.8   

School District

    11.0   

Transportation

    11.2   

Water

    7.1   

All other sectors less than 5%

    11.9   
      

Total

    100.0 % 
      

 

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

SHORT-INTERMEDIATE TAX-EXEMPT FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 887,756   
        

Gross tax appreciation of investments

    $ 11,699   

Gross tax depreciation of investments

      (2,268 ) 
        

Net tax appreciation of investments

    $ 9,431   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Short-Intermediate Tax-Exempt Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Short-Intermediate Tax-Exempt Fund

    $ —      $ 897,187 (1)    $ —      $ 897,187
                            

 

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

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

FSB - Federal Savings Bank

GNMA - Government National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

IDA - Industrial Development Authority

LOC - Letter of Credit

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PSF - Public School Fund

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand Bonds

 

TAX-EXEMPT FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

TAX-EXEMPT FUND   JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1%

      

Alabama - 0.2%

      

Birmingham Waterworks Board Revenue Bonds, Series A (Assured Guaranty Insured),

      

5.25%, 1/1/39

    $ 2,000    $ 1,988

Arizona - 2.5%

      

Arizona State Transportation Board Highway Revenue Bonds, Series B,

      

5.00%, 7/1/24

      5,000      5,344

Arizona Student Loan Acquisition Authority Revenue Refunding Bonds, Series A-1 (AMT) (Student Loans Gtd.),

      

5.90%, 5/1/24

      1,000      1,000

Phoenix Civic Improvement Corp. District Capital Appreciation Revenue Bonds, Series B (NATL RE-FGIC Insured),

      

0.00%, 7/1/20

      2,045      1,793

Phoenix Civic Improvement Corp. Transit Excise TRB, Light Rail Project (AMBAC Insured),

      

5.00%, 7/1/15

      5,000      5,359

5.00%, 7/1/17

      5,000      5,297

Salt River Project Agricultural Improvement & Power District Electric System Revenue Bonds, Series A,

      

5.00%, 1/1/38

      5,000      5,000
         
        23,793
         

California - 18.1%

      

Alvord Unified School District G.O. Unlimited Refunding Bonds, Series A (FSA-CR NATL-RE Insured),

      

5.90%, 8/1/30

      10,000      10,949

Bakersfield City COP, Series B, Escrowed to Maturity,

      

0.00%, 4/15/21

      10,000      5,838

Bay Area Government Association Infrastructure Financing Authority Revenue Bonds, Payment Acceleration Notes (XLCA Insured),

      

5.00%, 8/1/13

      2,500      2,517

Brentwood Infrastructure Financing Authority Water Revenue Bonds,

      

5.75%, 7/1/38

      1,500      1,564

California Educational Facilities Authority Revenue Bonds, Series A, University of Southern California,

      

5.25%, 10/1/38

      2,500      2,574

California Housing Finance Agency Revenue Bonds, Series J (AMT),

      

4.95%, 8/1/22

      5,500      4,756

California State Build America G.O. Unlimited Bonds,

      

7.55%, 4/1/39

      5,000      4,570

California State Department of Water Resources Power Supply Revenue Bonds, Series A,

      

6.00%, 5/1/14

      10,000      10,860

California State Department of Water Resources Power Supply Revenue Bonds, Series H (FSA-CR Insured),

      

5.00%, 5/1/22

      5,000      5,127

California State Department of Water Resources Revenue Bonds, Series H, Power Supply (FSA Insured),

      

5.00%, 5/1/21

      2,095      2,162

California State G.O. Unlimited Bonds, Prerefunded,

      

5.75%, 5/1/10

      400      422

5.75%, 5/1/10

      50      53

California State G.O. Unlimited Bonds, Unrefunded Balance,

      

5.75%, 5/1/30

      130      126

California State G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/20

      2,500      2,441

California State University Revenue Bonds Systemwide, Series A,

      

5.50%, 11/1/39

      5,000      5,005

Carlsbad Unified School District G.O. Unlimited Bonds, Series B,

      

0.00%, 5/1/34

      2,500      1,384

Colton Joint Unified School District Capital Appreciation G.O. Unlimited Bonds, Series C, Election of 2001 (NATL-RE FGIC Insured),

      

0.00%, 2/1/32

      5,800      1,279

East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured),

      

5.00%, 6/1/32

      5,000      4,973

El Dorado Irrigation District COP, Series A (Assured Guaranty Insured),

      

5.75%, 8/1/39

      5,000      5,034

Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue Bonds, Series A, Enhanced Asset Backed,

      

5.00%, 6/1/45

      2,450      1,969

 

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

 

TAX-EXEMPT FUND    continued  

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1% continued

      

California - 18.1% continued

      

Grossmont Unified High School District G.O. Unlimited Bonds, Election of 2004,

      

5.00%, 8/1/33

    $ 10,000    $ 9,727

Kern High School District G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured),

      

6.60%, 2/1/17

      1,845      1,946

6.60%, 8/1/17

      1,825      1,925

Long Beach Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured),

      

5.00%, 5/15/21

      1,000      954

Los Angeles Community College District G.O. Unlimited Bonds, Series E-1, Election 2001,

      

5.00%, 8/1/27

      2,700      2,710

Los Angeles County Sanitation Districts Financing Authority Revenue Bonds, Series A, Capital Project (FSA Insured),

      

5.00%, 10/1/21

      5,000      5,140

Los Angeles Department of Water & Power Revenue Bonds, Subseries A-1,

      

5.25%, 7/1/38

      6,575      6,598

Los Angeles Department of Water & Power Revenue Bonds, Subseries A-1 (FSA Insured),

      

5.00%, 7/1/35

      4,220      4,100

Los Angeles Department of Water & Power Revenue Bonds, Subseries A-A-1,

      

5.00%, 7/1/24

      4,500      4,501

Los Angeles Unified School District G.O. Unlimited Bonds, Series H, Election of 2004 (FSA Insured),

      

5.00%, 7/1/21

      5,000      5,165

Menlo Park G.O. Unlimited Bonds,

      

5.25%, 8/1/27

      1,000      1,042

Metropolitan Water District of Southern California Revenue Refunding Bonds, Series C,

      

5.00%, 7/1/35

      2,000      2,008

Metropolitan Water District of Southern California Waterworks Revenue Bonds, Series A,

      

5.00%, 7/1/32

      6,105      6,173

Modesto Irrigation District Capital Improvements COP, Series A,

      

5.75%, 10/1/29

      7,020      7,119

Moreland School District G.O. Unlimited Bonds, Series C, Election of 2002 (FGIC Insured),

      

0.00%, 8/1/28

      3,000      1,154

Palomar Pomerado Health Capital Appreciation G.O. Unlimited Bonds, Series A, Election of 2004 (Assured Guaranty Insured),

      

0.00%, 8/1/38

      10,000      5,720

Paramount Unified School District G.O. Unlimited Bonds, Election 2006 (FSA Insured),

      

5.25%, 8/1/32

      5,000      5,006

San Francisco Bay Area Rapid Transit Financing Authority G.O. Unlimited Bonds, Election of 2004, Series B,

      

5.00%, 8/1/35

      5,000      5,016

San Joaquin County Transportation Authority Sales Tax Revenue Bonds, Measure K-Senior Notes,

      

4.00%, 4/1/11

      1,000      1,029

San Mateo County Community College District Capital Appreciation G.O. Unlimited Bonds, Series B, Election 2005 (NATL-RE Insured),

      

0.00%, 9/1/23

      5,720      2,555

Santee School District Capital Appreciation G.O. Unlimited Bonds, Series D, Election 2006 (Assured Guaranty Insured),

      

0.00%, 8/1/38

      10,000      1,479

Sequoia Union High School District G.O. Unlimited Bonds, Series B, Election 2008,

      

5.00%, 7/1/34(1)

      5,525      5,417

Southern California Public Power Authority Revenue Bonds, Series A, Natural Gas Project No.1,

      

5.00%, 11/1/33

      2,000      1,607

Val Verde Unified School District G.O. Unlimited Bonds, Series A, 2008 Election,

      

5.50%, 8/1/30

      5,375      5,545

Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002,

      

5.50%, 8/1/33

      5,000      5,071
         
        172,310
         

 

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1% continued

      

Colorado - 1.4%

      

Colorado Health Facilities Authority Revenue Bonds, Portercare Adventist Health Hospital, Prerefunded,

      

6.50%, 11/15/11

    $ 1,000    $ 1,132

Dawson Ridge Metropolitan District No.1 G.O. Limited Refunding Bonds, Series A, Escrowed to Maturity,

      

0.00%, 10/1/22

      10,000      5,344

Denver City & County Special Facilities Airport Revenue Bonds, Series A (AMT), Rental Car Project (NATL-RE Insured),

      

6.00%, 1/1/14

      2,275      2,300

Public Authority for Colorado Energy Natural Gas Purpose Revenue Bonds,

      

6.50%, 11/15/38

      5,000      4,744
         
        13,520
         

Connecticut - 0.4%

      

Connecticut State Higher Education Supplement Loan Authority Revenue Refunding Bonds, Series A (AMT), Family Education Loan Program (NATLE-RE Insured),

      

4.75%, 11/15/18

      890      827

Connecticut State Special Tax Obligation Revenue Bonds, Series A, Transportation Infrastructure, Partially Prerefunded,

      

7.13%, 6/1/10

      3,080      3,220
         
        4,047
         

Delaware - 0.5%

      

Delaware State Housing Authority Revenue Bonds, Series A (AMT), SFM (FSA Insured),

      

5.80%, 7/1/35

      4,470      4,460
         

District of Columbia - 1.0%

      

District of Columbia Water & Sewer Authority Public Utilities Revenue Bonds, Series A,

      

5.50%, 10/1/39

      9,000      9,249
         

Florida - 7.2%

      

Broward County School Board Refunding COP, Series B (FSA Insured),

      

5.25%, 7/1/17

      5,000      5,319

Citizens Property Insurance Corp. Revenue Notes, Series A-2, High Risk Account,

      

4.50%, 6/1/10

      10,000      10,122

Crossings at Fleming Island Community Development District Special Assessment Revenue Refunding Bonds, Series C,

      

7.05%, 5/1/15

      1,000      932

Florida Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A,

      

5.00%, 7/1/13

      2,500      2,587

Florida Municipal Power Agency Revenue Bonds, Series A, All Requirements Power,

      

6.25%, 10/1/31

      3,000      3,216

Florida State Board of Education Capital Outlay G.O. Unlimited Bonds, Unrefunded Balance,

      

9.13%, 6/1/14

      1,665      1,928

Florida State Board of Education Capital Outlay G.O. Unlimited Refunding Bonds, Escrowed to Maturity,

      

9.13%, 6/1/14

      325      420

Florida State Broward County G.O. Unlimited Bonds, Escrowed to Maturity,

      

10.00%, 7/1/14

      15,950      19,609

Florida State Department of Transportation Right of Way G.O. Unlimited Revenue Bonds,

      

5.25%, 7/1/37

      5,000      5,046

Orlando Utilities Commission Revenue Refunding Bonds, Series B,

      

5.00%, 10/1/33

      5,000      4,972

Orlando Utilities Commission Water & Electric Revenue Refunding Bonds, Series D, Escrowed to Maturity,

      

6.75%, 10/1/17

      7,700      9,114

Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured),

      

5.50%, 10/1/15

      4,910      5,417
         
          68,682
         

Georgia - 1.4%

      

Athens-Clarke County Government Water & Sewer Revenue Bonds,

      

5.50%, 1/1/38

      7,500      7,832

Gainesville & Hall County Development Authority Revenue Bonds, Series C, Senior Living Facilities - Lanier Village,

      

7.25%, 11/15/29

      2,000      2,000

Georgia Municipal Electric Authority Power Revenue Bonds, Series B (FGIC-TCRS Insured),

      

6.38%, 1/1/16

      2,300      2,598

 

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1% continued

Georgia - 1.4% continued

      

Private Colleges & Universities Authority Student Housing Revenue Bonds, Series A, Mercer Housing Corp. Project,

      

6.00%, 6/1/21

    $ 1,000    $ 889
         
        13,319
         

Hawaii - 1.6%

      

Hawaii State Airport System Revenue Refunding Bonds, Series B (AMT) (NATL-RE FGIC Insured),

      

6.00%, 7/1/20

      5,000      5,014

Hawaii State G.O. Unlimited Refunding Bonds, Series DR,

      

5.00%, 6/1/17

      4,315      4,855

University of Hawaii Revenue Bonds, Series A,

      

5.25%, 10/1/34

      5,000      5,018
         
        14,887
         

Idaho - 0.1%

      

Idaho Housing & Finance Association SFM Revenue Bonds, Series E-1 (AMT), Class III,

      

4.85%, 7/1/28

      1,475      1,354
         

Illinois - 9.6%

      

Bolingbrook Capital Appreciation G.O. Unlimited Bonds, Series B (MBIA Insured),

      

0.00%, 1/1/33

      505      120

Chicago G.O. Unlimited Refunding Bonds, Series A (FSA Insured),

      

5.00%, 1/1/22

      2,650      2,702

Chicago O’Hare International Airport Third Lien Revenue Bonds, Series B-2 (AMT) (XLCA Insured),

      

6.00%, 1/1/29

      11,000      11,009

Illinois Educational Facilities Authority Student Housing Revenue Bonds, Educational Advancement Fund University Center Project, Prerefunded,

     

6.00%, 5/1/12

      750      853

Illinois Finance Authority Revenue Bonds, Series A, Art Institute Chicago,

      

6.00%, 3/1/38

      3,500      3,543

Illinois Finance Authority Revenue Bonds, Series A, Elmhurst Memorial,

      

5.63%, 1/1/37

      2,500      2,096

Illinois Health Facilities Authority Revenue Bonds, Riverside Health System, Prerefunded,

      

6.00%, 11/15/12

      1,000      1,142

Illinois Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATLE-RE FGIC Insured),

      

5.25%, 2/1/27

      5,000      5,059

Illinois State G.O. Unlimited Bonds (NATL-RE FGIC Insured),

      

5.38%, 6/1/24

      1,500      1,518

Illinois State G.O. Unlimited Bonds, 1st Series,

      

5.60%, 8/1/21

      5,000      5,132

Illinois State Sales Tax Revenue Bonds,

      

5.25%, 6/15/24

      5,000      5,206

Illinois State Sales Tax Revenue Bonds, First Series (NATL-RE FGIC Insured),

      

6.00%, 6/15/25

      5,000      5,569

6.00%, 6/15/26

      5,000      5,567

Illinois State Toll Highway Authority Revenue Bonds, Senior Priority, Series A (FSA Insured),

      

5.00%, 1/1/18

      5,000      5,366

Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B,

      

5.50%, 1/1/33

      6,500      6,696

Metropolitan Pier & Exposition Authority Dedicated Sales TRB, Series A, McCormick Place Expansion (NATL-RE Insured),

      

5.25%, 6/15/42

      10,000      9,815

Regional Transportation Authority Revenue Bonds, Series A (NATL-RE FGIC Insured G.O. of Authority),

      

6.00%, 7/1/33

      15,000      16,775

Southwestern Illinois Development Authority Capital Appreciation Revenue Bonds, Local Government Program (FSA Insured),

      

0.00%, 12/1/21

      5,000      2,625
         
        90,793
         

Indiana - 2.3%

      

Franklin Township Independent School Building Corp. Marion County First Mortgage Revenue Bonds, Prerefunded,

      

6.50%, 7/15/10

      5,000      5,411

 

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1% continued

Indiana - 2.3% continued

      

Hamilton County Independent Public Building Corp. First Mortgage G.O. Unlimited Bonds,

      

7.25%, 8/1/13

    $ 4,200    $ 4,868

Indiana Office Building Commission Capital Complex Revenue Bonds, Series B (NATLE-RE Insured),

      

7.40%, 7/1/15

      5,620      6,750

Indianapolis Industrial Utilities District Revenue Refunding Bonds, Series B (NATL-RE FGIC Insured),

      

3.50%, 6/1/18

      3,280      3,160

Monroe County Hospital Authority Revenue Bonds, Series B, Bloomington Hospital Obligation Group (FSA Insured),

      

6.00%, 5/1/29

      2,000      2,011
         
        22,200
         

Kansas - 0.2%

      

Wichita Hospital Improvement Facilities Revenue Refunding Bonds, Series III,

      

6.25%, 11/15/18

      1,685      1,747
         

Kentucky - 1.2%

      

Kentucky Economic Development Finance Authority Revenue Bonds, Subseries A-1, Louisville Arena (Assured Guaranty Insured),

      

6.00%, 12/1/42

      1,000      1,022

Louisville & Jefferson County Metropolitan Sewer District Sewer & Drain System Revenue Bonds, Series A (NATLE-RE Insured),

      

5.50%, 5/15/34

      10,000      10,112
         
        11,134
         

Louisiana - 0.5%

      

East Baton Rouge LA Sewer Commission Revenue Bonds, Series A,

      

5.25%, 2/1/39

      5,000      4,969
         

Maryland - 1.0%

      

Maryland State & Local Facilities G.O. Unlimited Bonds, Second Series,

      

5.00%, 8/1/20

      5,000      5,560

Maryland State Transportation Authority Revenue Bonds, Transportation Facilities Project,

      

5.00%, 7/1/21

      4,000      4,354
         
        9,914
         

Massachusetts - 3.9%

      

Massachusetts School Building Authority Dedicated Sales TRB, Series A (FSA Insured),

      

5.00%, 8/15/30

      5,000      5,029

Massachusetts State G.O. Revenue Bonds, Series D, Prerefunded (FAS Insured),

      

4.75%, 12/1/14

      5,695      6,270

Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series A, Massachusetts Institute of Technology (G.O. of University),

      

5.00%, 7/1/19

      5,000      5,616

Massachusetts State Water Pollution Abatement Revenue Bonds, Series A, MWRA Program,

      

6.00%, 8/1/19

      3,000      3,653

Massachusetts State Water Pollution Abatement Revolving Fund Revenue Bonds, Series 14,

      

5.00%, 8/1/27

      10,000      10,669

Massachusetts Water Resources Authority Revenue Refunding Bonds, Series B (FSA Insured),

      

5.25%, 8/1/31

      5,000      5,332
         
        36,569
         

Michigan - 0.4%

      

Michigan State Building Authority Revenue Refunding Bonds, Series I, Facilities Program,

      

6.00%, 10/15/38

      2,500      2,586

Wayne Charter County Revenue Refunding Bonds, Series C (NATL-RE FGIC Insured),

      

5.38%, 12/1/15

      1,000      1,053
         
        3,639
         

Minnesota - 0.1%

      

Minnesota State Housing Finance Agency SFM Revenue Bonds, Series A (NATL-RE Insured),

      

5.35%, 7/1/17

      425      437

Minnesota State Housing Finance Agency SFM Revenue Bonds, Series F,

      

5.70%, 1/1/17

      655      662
         
        1,099
         

Mississippi - 0.7%

      

Jackson State University Educational Building Corp. Revenue Bonds, Campus Facilities Project (FSA Insured),

      

5.00%, Mandatory Put 3/1/15

      5,955      6,653

 

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1% continued

      

Mississippi - 0.7% continued

      

Mississippi Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured),

      

5.40%, 6/1/38

    $ 50    $ 49
         
        6,702
         

Missouri - 0.3%

      

Metro Development Agency District Revenue Bonds, Series B, Metrolink Cross Country Project (FSA Insured),

      

5.25%, 10/1/17

      3,000      3,090
         

New Jersey - 5.0%

      

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Atlantic City Medical, Prerefunded,

      

6.25%, 7/1/12

      445      504

New Jersey Health Care Facilities Financing Authority Revenue Bonds, Unrefunded - Atlantic City Medical,

      

6.25%, 7/1/17

      555      582

New Jersey St Higher Education Assistance Authority Revenue Bonds, Series A,

      

5.38%, 6/1/24

      2,500      2,499

5.50%, 6/1/27

      5,000      5,007

New Jersey State G.O. Unlimited Refunding Bonds,

      

5.00%, 8/1/15

      2,765      3,114

New Jersey State Turnpike Authority Growth & Income Securities Revenue Bonds, Series B (AMBAC Insured),

      

0.00%, 1/1/35

      5,000      3,541

New Jersey State Turnpike Authority Revenue Bonds, Series C-2 (BHAC-CR FSA-CR AMBAC),

      

5.50%, 1/1/25

      5,000      5,711

New Jersey State Turnpike Authority Revenue Bonds, Series E,

      

5.25%, 1/1/40

      5,000      4,977

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series A, Transportation System,

      

0.00%, 12/15/38

      7,500      1,127

New Jersey Transportation Trust Fund Authority Revenue Bonds, Series A, Transportation System (NATL-RE FGIC Insured),

      

5.75%, 6/15/25

      5,000      5,397

New Jersey Transportation Trust Fund Capital Appreciation Authority Revenue Bonds, (AGC-ICC),

      

0.00%, 12/15/25

      10,735      4,160

New Jersey Transportation Trust Fund Capital Appreciation Authority Revenue Bonds, (BHAC-CR AMBAC),

      

0.00%, 12/15/28

      22,500      7,383

New Jersey Transportation Trust Fund Capital Appreciation Authority Revenue Bonds, (BHAC-CR MBIA),

      

0.00%, 12/15/27

      10,000      3,531
         
        47,533
         

New York - 15.4%

      

Dutchess County IDA Civic Facilities Revenue Bonds, Bard College Civic Facilities, Prerefunded,

      

5.75%, 8/1/10

      2,000      2,131

Long Island Power Authority Electric System Revenue Bonds, Series A,

      

6.25%, 4/1/33

      5,000      5,503

Long Island Power Authority Electric System Revenue Refunding Bonds, Series A,

      

6.00%, 5/1/33

      10,000      10,842

Metropolitan Transportation Authority Commuter Facilities Revenue Bonds, Series A, Prerefunded,

      

6.00%, 7/1/09

      2,500      2,500

Metropolitan Transportation Authority Dedicated TRB, Series A,

      

5.50%, 11/15/39

      10,000      10,200

New York City G.O. Unlimited Bonds, Series A, Unrefunded Balance,

      

6.00%, 5/15/30

      50      51

New York City G.O. Unlimited Bonds, Subseries l-1,

      

5.50%, 4/1/22

      2,375      2,536

New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series B, Unrefunded Balance,

      

6.00%, 6/15/33

      1,160      1,221

New York City Transitional Finance Authority Revenue Bonds, Series B, Future Tax Secured, Prerefunded,

      

6.00%, 5/15/10

      4,000      4,234

 

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)
     
     

MUNICIPAL BONDS - 98.1% continued

      

New York - 15.4% continued

      

New York City Transitional Finance Authority Revenue Bonds, Series E, Future Tax Secured (NATL-RE FGIC Insured),

      

5.25%, 2/1/17

    $ 5,000    $ 5,433

New York State Dormitory Authority State Personal Income Tax Revenue Bonds, Series A,

      

5.00%, 2/15/39

      7,000      6,883

New York State Dormitory Authority State Personal Income TRB, Series B,

      

5.75%, 3/15/36

      10,000      10,698

New York State Dormitory Authority Supported Debt Revenue Bonds, Series B, School District Financing Program (Assured Garuntee G.O. of District),

      

5.25%, 10/1/23

      5,000      5,205

New York State Environmental Facilities Corp Personal Income TRB, Series A,

      

5.25%, 12/15/23

      10,000      10,725

New York State Thruway Authority State Personal Income TRB, Series A,

      

5.25%, 3/15/21

      5,000      5,403

New York State Urban Development Corp. Revenue Refunding Bonds, Series A, Service Contract (FSA Insured),

      

5.25%, 1/1/19

      10,000      10,759

New York State Urban Development Corp. State Personal Income TRB, Series B-1,

      

5.00%, 3/15/28

      5,000      5,100

Sales Tax Asset Receivables Corp. Revenue Bonds, Series A (AMBAC Insured),

      

5.00%, 10/15/32

      5,000      5,069

Sales Tax Asset Receivables Corp. Revenue Bonds, Series A (NATL-RE Insured),

      

5.25%, 10/15/19

      5,000      5,493

5.00%, 10/15/24

      10,000      10,401

Tobacco Settlement Financing Corp. Revenue Bonds, Series B-1C,

      

5.50%, 6/1/16

      10,000      10,249

5.50%, 6/1/18

      5,000      5,117

5.50%, 6/1/19

      2,500      2,563

Triborough Bridge & Tunnel Authority Revenue Refunding Bonds, Series B, (G.O. of Authority),

      

5.00%, 11/15/32

      7,500      7,506
         
        145,822
         

North Carolina - 1.4%

      

Cape Fear Public Utility Authority Water & Sewer Systems Revenue Bonds,

      

5.00%, 8/1/35

      2,000      2,019

North Carolina State Eastern Municipal Power Agency Power System Revenue Bonds, Series A, Escrowed to Maturity,

      

6.50%, 1/1/18

      2,655      3,357

North Carolina State Eastern Municipal Power Agency Power System Revenue Bonds, Series D,

      

6.75%, 1/1/26

      1,250      1,270

North Carolina State Eastern Municipal Power Agency Power System Revenue Refunding Bonds, Series B (NATL-RE-IBC Insured),

      

6.00%, 1/1/22

      6,015      6,488
         
        13,134
         

Ohio - 2.3%

      

Cleveland Airport System Revenue Bonds, Series A (AMBAC Insured),

      

5.00%, 1/1/23

      5,000      5,028

Columbus City School District G.O. Unlimited Bonds, School Facilities Construction & Improvement (FSA Insured), Prerefunded,

      

5.25%, 12/1/14

      5,000      5,770

Columbus Ohio City School District G.O. Unlimited Refunding Bonds, School Facilities, Construction & Improvement (FSA Insured),

      

5.00%, 12/1/22

      2,375      2,508

Cuyahoga Community College District General Receipts Revenue Bonds, Series C,

      

5.00%, 8/1/24

      3,000      3,050

Lakota Local School District G.O. Unlimited Refunding Bonds, Series A (NATL-RE FGIC Insured),

      

5.25%, 12/1/25

      4,275      4,644

Ohio Housing Finance Agency Mortgage Revenue Bonds, Series C (AMT), Residential Mortgage-Backed Securities (Collateralized by GNMA Securities),

      

5.15%, 3/1/13

      520      529

Plain Local School District G.O. Unlimited Bonds (NATL-RE FGIC Insured), Unrefunded Balance,

      

6.00%, 12/1/25

      190      194
         
        21,723
         

 

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1% continued

Oklahoma - 0.7%

      

McGee Creek Authority Water Revenue Bonds (NATL-RE Insured),

      

6.00%, 1/1/13

    $ 4,235    $ 4,513

Payne County Economic Development Authority Student Housing Revenue Bonds, Series A, Collegiate Housing Foundation, Prerefunded,

      

6.38%, 6/1/11

      2,000      2,201
         
        6,714
         

Oregon - 0.0%

      

Oregon State Housing & Community Services Department Mortgage Revenue Bonds, Series E, SFM Program (FHA MTGS Insured),

      

6.15%, 7/1/30

      260      262
         

Pennsylvania - 2.9%

      

Montgomery County Higher Education & Health Authority Revenue Bonds, Series A, Philadelphia Geriatric Center, Prerefunded,

      

7.38%, 12/1/09

      3,000      3,144

Pennsylvania Housing Finance Agency SFM Revenue Bonds, Series 72A (AMT),

      

4.80%, 4/1/12

      750      760

Pennsylvania State G.O. Unlimited Bonds, Second Series,

      

5.13%, 2/15/23

      5,000      5,481

Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, LaSalle University,

      

5.50%, 5/1/34

      1,330      1,128

Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue Bonds, Series A, Student Association, Inc. Project,

      

6.75%, 9/1/32

      1,475      1,223

Philadelphia G.O. Unlimited Refunding Bonds, Series A (FSA Insured),

      

5.00%, 8/1/18

      5,000      5,123

5.25%, 12/15/22

      5,000      5,034

University of Pittsburgh The Commonwealth System of Higher Education Revenue Refunding Bonds, Series B, University Capital Project,

      

5.25%, 9/15/29(1)

      5,000      5,225
         
        27,118
         

Puerto Rico - 3.0%

      

Puerto Rico Commonwealth Highway & Transportation Authority Transportation Revenue Bonds, Series B, Prerefunded,

      

6.00%, 7/1/10

      2,000      2,125

Puerto Rico Electric Power Authority Revenue Refunding Bonds, Series UU (FSA Insured),

      

5.00%, 7/1/20

      2,000      1,997

Puerto Rico Public Finance Corp. Commonwealth Revenue Bonds, (AMBAC Insured), Escrowed to Maturity,

      

5.50%, 8/1/27

      2,500      2,794

Puerto Rico Sales Tax Financing Corp. Capital Appreciation TRB, Sub Series A,

      

0.00%, 8/1/32

      10,000      6,300

Puerto Rico Sales Tax Financing Corp. TRB, Sub Series A,

      

5.00%, Mandatory Put 8/1/11

      5,000      5,056

5.25%, 8/1/27

      5,000      4,824

6.38%, 8/1/39

      5,000      5,136
         
        28,232
         

South Carolina - 1.8%

      

Richland County School District No. 2 G.O. Unlimited Bonds, Series A (SCSDE Insured),

      

5.00%, 2/1/23

      5,000      5,422

South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper,

      

5.50%, 1/1/38

      10,000      10,467

South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A (AMBAC Insured), Prerefunded,

      

5.50%, 10/1/09

      1,250      1,279
         
        17,168
         

Texas - 5.5%

      

Austin Water & Wastewater System Revenue Refunding Bonds, Series A (AMBAC Insured),

      

5.00%, 11/15/28

      5,000      5,051

Dallas Area Rapid Transit Sales Refunding TRB, Senior Lein (AMBAC Insured),

      

5.00%, 12/1/36

      10,000      10,000

Dallas Area Rapid Transit Sales TRB, Build America Bonds,

      

6.25%, 12/1/34

      10,000      10,146

 

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)

MUNICIPAL BONDS - 98.1% continued

Texas - 5.5% continued

      

Dallas Independent School District G.O. Unlimited Bonds (PSF Gtd.),

      

6.38%, 2/15/34

    $ 5,000    $ 5,616

Dallas-Fort Worth International Airport Revenue Bonds, Series A (AMT) (NATL-RE Insured),

      

5.50%, 11/1/20

      835      829

Grand Prairie Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds,

      

0.00%, 8/15/29

      12,505      3,277

Harris County Health Facilities Development Corp. Revenue Bonds, Series A, Christus Health (NATLE-RE Insured), Escrowed to Maturity,

      

5.50%, 7/1/09

      180      180

Lower Colorado River Authority Revenue Refunding Bonds, Series A,

      

6.25%, 5/15/31

      10,000      10,530

Parker County Hospital District Revenue Bonds, Campbell Health System, Prerefunded,

      

6.25%, 8/15/09

      1,000      1,027

Sam Rayburn Municipal Power Agency Revenue Refunding Bonds,

      

6.00%, 10/1/16

      1,000      1,016

6.00%, 10/1/21

      1,250      1,253

Texas State Veterans Housing Assistance G.O. Unlimited Bonds, Series C (AMT), Fund II,

      

6.10%, 6/1/21

      3,000      3,019

Waxahachie Independent School District Capital Appreciation G.O. Unlimited Bonds (PSF Gtd.), Unrefunded Balance,

      

0.00%, 8/15/16

      240      160

0.00%, 8/15/23

      190      77

0.00%, 8/15/28

      305      89

0.00%, 8/15/30

      320      82
         
        52,352
         

Utah - 1.6%

      

Utah Transit Authority Sales Refunding TRB, Series A (BHAC-CR MBIA Insured),

      

5.00%, 6/15/35

      10,000      10,043

Utah Transit Authority Sales TRB, Series A (FSA Insured),

      

5.00%, 6/15/36

      5,000      4,956
         
        14,999
         

Virginia - 1.7%

      

Hampton Roads Sanitation District Wastewater Revenue Bonds,

      

5.00%, 4/1/33

      5,000      5,088

New Hampshire Health & Education Facilities Authority Revenue Bonds, Dartmouth College,

      

5.25%, 6/1/39

      5,890      6,125

Virginia State Public Building Authority Revenue Bonds, Series B,

      

5.00%, 8/1/26

      5,000      5,335
         
        16,548
         

Washington - 2.2%

      

Washington State G.O. Unlimited Bonds, Series B & AT-7,

      

6.40%, 6/1/17

      5,200      6,207

Washington State G.O. Unlimited Refunding Bonds, Series R-2010 A,

      

5.00%, 1/1/21(1)

      6,000      6,525

Washington State Motor Vehicle Fuel Tax G.O. Unlimited Bonds, Series B (NATL-RE Insured),

      

5.00%, 7/1/30

      8,245      8,408
         
        21,140
         

Total Municipal Bonds

      
         

(Cost $915,561)

         932,210

SHORT-TERM INVESTMENTS - 2.7%

      

Gulf Coast Waste Disposal Authority PCR Refunding VRDB, Amoco Oil Company Project,

      

0.21%, 7/1/09

      1,300      1,300

Las Vegas Valley New Water District G.O. Unlimited VRDB, Series C,

      

0.70%, 7/1/09

      500      500

Louisiana Public Facilities Authority Revenue VRDB, Dynamic Fuels LLC Project (JP Morgan Chase Bank LOC),

      

0.20%, 7/1/09

      500      500

Massachusetts State G.O. Unlimited VRDB, Series B,

      

0.40%, 7/1/09

      600      600

Pima County IDA Revenue VRDB, Series A, Senior Living Facilities - La Posada (LaSalle Bank N.A. LOC),

      

0.30%, 7/2/09

      900      900

 

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND    continued

 

     PRINCIPAL
AMOUNT
(000S)		    VALUE
(000S)		  

SHORT-TERM INVESTMENTS - 2.7% continued

      

San Jose California Multifamily Housing Revenue VRDB, Series A, Kimberly Wood Apartments (FHLMC),

      

0.18%, 7/2/09

    $ 300    $ 300   

Tarrant County Health Facilities Development Corp. Revenue VRDB, Series A, Adventist/Sunbelt (SunTrust Bank LOC),

      

2.65%, 7/2/09

      310      310   

Texas Water Development Board Revenue Refunding VRDB, Sub Lien Series A, State Revolving,

      

0.30%, 7/1/09

      11,677      11,677   

University of Massachusetts Building Authority Revenue Refunding VRDB, Series 2008-4, (State Gtd.),

      

0.25%, 7/1/09

      1,300      1,300   

Utah Water Finance Agency Revenue VRDB, Series B-3,

      

0.33%, 7/1/09

      3,400      3,400   

Valdez Marine Term Revenue Refunding VRDB, Series B, BP Pipelines Project,

      

0.25%, 7/1/09

      910      910   

Valdez Marine Term Revenue Refunding VRDB, Series B, Exxon Pipeline Co. Project,

      

0.17%, 7/1/09

      1,900      1,900   

Wisconsin Health & Educational Facilities Authority Revenue VRDB, Concordia University Inc. (JP Morgan Chase & Co. LOC),

      

0.35%, 7/2/09

      2,300      2,300   
           

Total Short-Term Investments

      
           

(Cost $25,897)

         25,897   
           

Total Investments - 100.8%

      
           

(Cost $941,458)

         958,107   

Liabilities less Other Assets - (0.8)%

         (7,790 ) 
           

NET ASSETS - 100.0%

       $ 950,317   

 

(1) When-Issued Security.

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the Tax-Exempt Fund were:

 

INDUSTRY SECTOR

    % OF INVESTMENTS  

General

    25.2 % 

General Obligation

    14.1   

Higher Education

    6.4   

Power

    10.4   

School District

    9.0   

Transportation

    9.2   

Water

    11.1   

All Other Sectors Less Than 5%

    14.6   
      

Total

    100.0 % 
      

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 941,458   
        

Gross tax appreciation of investments

    $ 25,995   

Gross tax depreciation of investments

      (9,346 ) 
        

Net tax appreciation of investments

    $ 16,649   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Tax-Exempt Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Tax-Exempt Fund

    $ —      $ 958,107 (1)    $ —      $ 958,107
                            

 

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

 

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (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 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:

AGC - Assured Guaranty Corp

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BHAC - Berkshire Hathaway Assurance Corp

COP - Certificate of Participation

CR - Custodial Receipts

FGIC - Financial Guaranty Insurance Corporation

FHLMC - Federal Home Loan Mortgage Association

FNMA - Federal National Mortgage Association

FSA - Financial Security Assurance

G.O. - General Obligation

GNMA - Government National Mortgage Association

Gtd. - Guaranteed

IBC - Insured Bond Certificates

IDA - Industrial Development Authority

ICC - Insured Custody Certificates

LOC - Letter of Credit

MBIA - Municipal Bond Insurance Association

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PSF - Permanent School Fund

SCSDE - South Corolina School District Enhancement

SFM - Single Family Mortgage

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand Bonds

XLCA - XL Capital Assurance

 

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

   SCHEDULE OF INVESTMENTS
MULTI-MANAGER GLOBAL REAL ESTATE FUND    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 93.9%

      

Australia - 6.5%

      

CFS Retail Property Trust

    293,600    $ 388

Commonwealth Property Office Fund

    1,112,679      740

Dexus Property Group

    4,453,729      2,670

Goodman Group

    1,783,453      523

GPT Group

    4,932,808      1,925

ING Office Fund

    414,072      152

ING OFFICE FUND ING OFF*

    170,289      63

Macquarie Office Trust

    1,491,182      251

Mirvac Group

    1,767,567      1,523

Stockland

    1,881,864      4,825

Westfield Group

    956,254      8,709
         
        21,769
         

Brazil - 0.2%

      

BR Malls Participacoes S.A.*

    29,900      227

MRV Engenharia e Participacoes S.A.

    19,675      273

PDG Realty S.A. Empreendimentos e Participacoes

    20,600      224
         
        724
         

Canada - 1.8%

      

Boardwalk Real Estate Investment Trust

    16,648      468

Brookfield Properties Corp.

    149,840      1,194

Calloway Real Estate Investment Trust

    39,000      431

Canadian Real Estate Investment Trust

    82,990      1,755

Cominar Real Estate Investment Trust

    13,300      177

H&R Real Estate Investment Trust

    27,400      259

Primaris Retail Real Estate Investment Trust

    78,696      801

RioCan Real Estate Investment Trust

    76,500      1,005
         
        6,090
         

China - 0.2%

      

Sino-Ocean Land Holdings Ltd.

    591,900      675
         

Finland - 0.1%

      

Sponda OYJ*

    124,110      353
         

France - 7.0%

      

Fonciere Des Regions

    6,345      477

Gecina S.A.

    9,384      581

ICADE

    49,303      4,055

Klepierre

    217,630      5,614

Mercialys S.A.

    22,354      690

Unibail-Rodamco S.E.

    82,267      12,285
         
        23,702
         

Germany - 0.0%

      

GAGFAH S.A.

    11,730      97
         

Hong Kong - 20.5%

      

Agile Property Holdings Ltd.

    239,400      341

Cheung Kong Holdings Ltd.

    75,300      863

China Overseas Land & Investment Ltd.

    4,038,076      9,350

China Resources Land Ltd.

    1,137,030      2,503

Country Garden Holdings Co.

    1,040,000      481

Great Eagle Holdings Ltd.

    48,000      102

Hang Lung Group Ltd.

    3,800      18

Hang Lung Properties Ltd.

    2,331,200      7,695

Henderson Land Development Co. Ltd.

    423,000      2,420

Hongkong Land Holdings Ltd.

    1,820,200      6,426

Hysan Development Co. Ltd.

    2,138,902      5,485

Kerry Properties Ltd.

    1,481,700      6,586

Lifestyle International Holdings Ltd.*

    2,444,400      3,387

Link REIT (The)

    408,500      871

New World China Land Ltd.

    337,300      187

New World Development Ltd.

    1,260,000      2,274

Shangri-La Asia Ltd.

    2,072,000      3,099

Shimao Property Holdings Ltd.

    1,081,500      2,090

Shui On Land Ltd.

    1,093,400      744

Sino Land Co.

    521,000      856

Sun Hung Kai Properties Ltd.

    957,785      11,922

Wharf Holdings Ltd.

    353,400      1,494
         
        69,194
         

Italy - 0.1%

      

Beni Stabili S.p.A.

    274,278      215
         

Japan - 11.6%

      

Aeon Mall Co. Ltd.

    264,600      5,007

Daiwa House Industry Co. Ltd.

    325,000      3,483

Frontier Real Estate Investment Corp.

    31      198

Japan Logistics Fund, Inc.

    23      154

Japan Prime Realty Investment Corp.

    125      270

Japan Real Estate Investment Corp.

    96      797

Kenedix Realty Investment Corp.

    116      400

Mitsubishi Estate Co. Ltd.

    631,800      10,467

Mitsui Fudosan Co. Ltd.

    646,084      11,193

Nippon Accommodations Fund, Inc.

    23      103

Nippon Building Fund, Inc.

    114      976

Nomura Real Estate Office Fund, Inc.

    78      495

NTT Urban Development Corp.

    788      760

Orix JREIT, Inc.

    52      238

Sumitomo Realty & Development Co. Ltd.

    165,100      3,003

Tokyo Tatemono Co. Ltd.

    131,000      725

Tokyu Land Corp.

    112,000      506

Tokyu REIT, Inc.

    39      211

 

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 93.9% continued

      

Japan - 11.6% continued

      

United Urban Investment Corp.

    70    $ 300
         
        39,286
         

Netherlands - 2.3%

      

Corio N.V.

    112,479      5,483

Eurocommercial Properties N.V.

    63,980      1,972

Vastned Retail N.V.

    3,530      176
         
        7,631
         

Singapore - 4.3%

      

Allgreen Properties Ltd.

    681,000      470

Ascendas Real Estate Investment Trust

    544,146      596

CapitaCommercial Trust

    691,000      389

CapitaLand Ltd.

    3,047,400      7,740

CapitaMall Trust

    607,700      585

City Developments Ltd.

    595,000      3,512

Keppel Land Ltd.

    561,100      849

Suntec Real Estate Investment Trust

    339,000      200
         
        14,341
         

Spain - 0.8%

      

Sol Melia S.A.

    464,000      2,747
         

Sweden - 0.3%

      

Castellum AB

    121,002      772

Kungsleden AB

    43,850      202
         
        974
         

Switzerland - 0.1%

      

PSP Swiss Property A.G. (Registered)*

    7,270      347

Swiss Prime Site A.G. (Registered)*

    2,000      98
         
        445
         

Thailand - 0.8%

      

Central Pattana PCL

    4,500,000      2,573
         

United Kingdom - 4.6%

      

British Land Co. PLC

    647,006      4,081

Derwent London PLC

    264,572      4,077

Great Portland Estates PLC

    349,144      1,266

Hammerson PLC

    356,482      1,807

Land Securities Group PLC

    236,690      1,842

Liberty International PLC

    70,186      461

Safestore Holdings PLC

    134,500      210

Segro PLC

    4,857,576      1,945
         
        15,689
         

United States - 32.7%

      

Acadia Realty Trust

    20,531      268

Alexandria Real Estate Equities, Inc.

    14,700      526

AMB Property Corp.

    97,732      1,838

American Campus Communities, Inc.

    101,075      2,242

Apartment Investment & Management Co., Class A

    123,685      1,095

AvalonBay Communities, Inc.

    24,221      1,355

BioMed Realty Trust, Inc.

    57,195      585

Boston Properties, Inc.

    118,488      5,652

Brandywine Realty Trust

    67,562      503

BRE Properties, Inc.

    27,500      653

Brookdale Senior Living, Inc.

    65,760      641

Camden Property Trust

    25,100      693

CBL & Associates Properties, Inc.

    164,753      888

Corporate Office Properties Trust SBI of Maryland

    9,700      284

Digital Realty Trust, Inc.

    53,981      1,935

Douglas Emmett, Inc.

    167,400      1,505

Duke Realty Corp.

    30,300      266

Equity Lifestyle Properties, Inc.

    11,818      439

Equity One, Inc.

    52,200      692

Equity Residential

    107,367      2,387

Essex Property Trust, Inc.

    56,500      3,516

Extra Space Storage, Inc.

    34,800      291

Federal Realty Investment Trust

    101,119      5,210

HCP, Inc.

    251,499      5,329

Health Care REIT, Inc.

    90,000      3,069

Highwoods Properties, Inc.

    151,400      3,387

Host Hotels & Resorts, Inc.

    578,566      4,854

Kilroy Realty Corp.

    90,561      1,860

Kimco Realty Corp.

    25,600      257

Liberty Property Trust

    109,940      2,533

Macerich (The) Co.

    72,080      1,269

Nationwide Health Properties, Inc.

    62,520      1,609

Omega Healthcare Investors, Inc.

    36,500      566

Orient-Express Hotels Ltd.

    33,176      282

Plum Creek Timber Co., Inc.

    15,539      463

ProLogis

    317,462      2,559

PS Business Parks, Inc.

    32,950      1,596

Public Storage

    127,860      8,372

Regency Centers Corp.

    42,617      1,488

Simon Property Group, Inc.

    322,104      16,566

SL Green Realty Corp.

    75,037      1,721

Tanger Factory Outlet Centers, Inc.

    54,200      1,758

Taubman Centers, Inc.

    98,500      2,646

UDR, Inc.

    77,622      802

 

MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)		  

COMMON STOCKS - 93.9% continued

      

United States - 32.7% continued

      

Ventas, Inc.

      146,085    $ 4,362   

Vornado Realty Trust

      175,607      7,908   

Weingarten Realty Investors

      105,567      1,532   
           
        110,252   
           

Total Common Stocks

      
           

(Cost $254,499) (1)

         316,757   

INVESTMENT COMPANIES - 5.2%

      

Northern Institutional Funds - Diversified Assets Portfolio (2) (3)

     16,662,434      16,662   

ProLogis European Properties

      185,009      707   
           

Total Investment Companies

      
           

(Cost $17,293)

         17,369   
     PRINCIPAL
AMOUNT
(000S)		       

SHORT-TERM INVESTMENTS - 1.5%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 5,055      5,055   
           

Total Short-Term Investments

      
           

(Cost $5,055)

         5,055   

Total Investments - 100.6%

      
           

(Cost $276,847)

         339,181   

Liabilities less Other Assets - (0.6)%

         (1,925 ) 
           

NET ASSETS - 100.0%

       $ 337,256   

 

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.
(2) At March 31, 2009, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $11,051,000 with net purchases of approximately $5,611,000 during the three months ended June 30, 2009.
(3) Investment in affiliated fund. Northern Trust Investments, N.A. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the industry sectors for the Multi-Manager Global Real Estate Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Hotel Restaurants & Leisure

    2.1 % 

Household Durables

    0.2   

Multiline Retail

    1.2   

Real Estate Investment Trusts

    55.5   

Real Estate Management & Development

    41.0   
      

Total

    100.0 % 
      

At June 30, 2009, the Multi-Manager Global Real Estate Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

Australian Dollar

    6.5 % 

Euro

    10.6   

Hong Kong Dollar

    19.0   

Japanese Yen

    11.7   

United States Dollar

    40.3   

All other currencies less than 5%

    11.9   
      

Total

    100.0 % 
      

At June 30, 2009, the Multi-Manager Global Real Estate Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS TO DELIVER CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		   

IN EXCHANGE

FOR CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

Euro

    2   

U.S. Dollar

    3    7/1/09    $ —     

Japanese Yen

    28,694   

U.S. Dollar

    300    7/1/09      2   

Singapore Dollar

    120   

U.S. Dollar

    83    7/1/09      —     

U.S. Dollar

    190   

Australian Dollar

    236    7/1/09      —     

U.S. Dollar

    260   

Australian Dollar

    322    7/1/09      —     

U.S. Dollar

    277   

British Pound

    168    7/1/09      (1 ) 

U.S. Dollar

    194   

Euro

    138    7/1/09      —     

U.S. Dollar

    148   

Japanese Yen

    14,103    7/1/09      (2 ) 

U.S. Dollar

    552   

Japanese Yen

    52,875    7/1/09      (3 ) 

U.S. Dollar

    61   

Singapore Dollar

    88    7/1/09      —     

U.S. Dollar

    2   

Swedish Kronor

    13    7/1/09      —     

U.S. Dollar

    4   

Swiss Franc

    5    7/1/09      —     

Canadian Dollar

    5   

U.S. Dollar

    4    7/2/09      —     

Euro

    26   

U.S. Dollar

    36    7/2/09      —     

Hong Kong Dollar

    1,043   

U.S. Dollar

    135    7/2/09      —     

Hong Kong Dollar

    2,544   

U.S. Dollar

    328    7/2/09      —     

 

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER GLOBAL REAL ESTATE FUND    continued

  

JUNE 30, 2009 (UNAUDITED)

 

 

CONTRACTS TO DELIVER CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		   

IN EXCHANGE

FOR CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

Singapore Dollar

    244   

U.S. Dollar

    168    7/2/09      —     

U.S. Dollar

    108   

Australian Dollar

    133    7/2/09      —     

U.S. Dollar

    10   

Brazilian Real

    19    7/2/09      —     

U.S. Dollar

    46   

British Pound

    28    7/2/09      —     

U.S. Dollar

    1   

Canadian Dollar

    1    7/2/09      —     

U.S. Dollar

    69   

Euro

    49    7/2/09      —     

U.S. Dollar

    134   

Hong Kong Dollar

    1,037    7/2/09      —     

U.S. Dollar

    187   

Hong Kong Dollar

    1,453    7/2/09      —     

U.S. Dollar

    35   

Japanese Yen

    3,350    7/2/09      —     

U.S. Dollar

    97   

Japanese Yen

    9,343    7/2/09      —     

U.S. Dollar

    8   

Swedish Kronor

    61    7/2/09      —     

U.S. Dollar

    2   

Swiss Franc

    2    7/2/09      —     

British Pound

    13   

U.S. Dollar

    21    7/3/09      —     

Canadian Dollar

    23   

U.S. Dollar

    20    7/3/09      —     

Hong Kong Dollar

    126   

U.S. Dollar

    16    7/3/09      —     

U.S. Dollar

    5   

Canadian Dollar

    6    7/3/09      —     

U.S. Dollar

    98   

Japanese Yen

    9,444    7/3/09      —     

U.S. Dollar

    860   

Japanese Yen

    82,802    7/3/09      (1 ) 

U.S. Dollar

    4   

Swedish Kronor

    30    7/3/09      —     

U.S. Dollar

    11   

Swiss Franc

    12    7/3/09      —     

Canadian Dollar

    11   

U.S. Dollar

    10    7/6/09      —     

U.S. Dollar

    60   

Australian Dollar

    77    7/6/09      1   
                    

Total

                $ (4 ) 
                    

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 276,847   
        

Gross tax appreciation of investments

    $ 64,038   

Gross tax depreciation of investments

      (1,704 ) 
        

Net tax appreciation of investments

    $ 62,334   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Global Real Estate Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

           

Hotel Restaurants & Leisure

    $ 282    $ 5,845      $ —      $ 6,127   

Household Durables

      496      —          —        496   

Multiline Retail

      —        3,386        —        3,386   

Real Estate Investment Trusts

      114,929      75,301        —        190,230   

Real Estate Management & Development

      1,422      115,096        —        116,518   

Investment Companies

      16,662      707           17,369   

Short-Term Investments

      —        5,055        —        5,055   
                              

Total Investments

    $ 133,791    $ 205,390      $ —      $ 339,181   
                              

Other Financial Instruments*

    $ —      $ (4 )    $ —      $ (4 ) 
                              

 

* Other financial instruments include futures and forwards, if applicable.

 

MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 84.2%

      

Australia - 0.2%

      

Centamin Egypt Ltd.*

    1,120,000    $ 1,550
         

Brazil - 10.0%

      

B2W Companhia Global Do Varejo

    112,700      2,134

Banco do Brasil S.A.

    88,113      952

BR Malls Participacoes S.A.*

    154,300      1,173

Brasil Telecom Participacoes S.A.

    7,610      132

Cia de Concessoes Rodoviarias

    212,000      3,400

Cia Siderurgica Nacional S.A.

    4,484      100

Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR

    84,500      3,250

Companhia Brasileira de Meios de Pagamento*

    104,700      900

Cosan SA Industria e Comercio*

    306,800      2,255

EDP - Energias do Brasil S.A.

    24,345      336

Empresa Brasileira de Aeronautica S.A. ADR

    125,200      2,073

Empresa Brasileira de Aeronautica S.A.

    132,628      552

Equatorial Energia S.A.

    16,248      131

Gerdau S.A. ADR

    90,296      945

Grendene S.A.

    6,062      56

Light S.A.

    39,190      539

Natura Cosmeticos S.A.

    560,271      7,394

PDG Realty S.A. Empreendimentos e Participacoes

    268,400      2,916

Perdigao S.A.*

    134,600      2,576

Petroleo Brasileiro S.A. - Petrobras

    111,744      2,290

Petroleo Brasileiro S.A. ADR

    484,256      19,845

Redecard S.A.

    19,719      303

Souza Cruz S.A.

    90,411      2,576

Vale S.A.

    475,100      8,376
         
        65,204
         

Chile - 0.2%

      

Banco Santander Chile S.A. ADR

    16,085      751

Enersis S.A. ADR

    12,576      232
         
        983
         

China - 8.2%

      

Bank of China Ltd., Class H

    4,122,000      1,953

Central China Real Estate

    985,000      328

China Citic Bank, Class H

    284,000      186

China Construction Bank Corp., Class H

    3,016,929      2,332

China High Speed Transmission Equipment Group Co. Ltd.

    901,000      1,807

China Medical Technologies, Inc.

    84,100      1,674

China Merchants Bank Co. Ltd., Class H

    2,588,650      5,905

China Petroleum & Chemical Corp.

    1,310,000      995

China Telecom Corp. Ltd., Class H

    1,761,015      871

Dongfeng Motor Group Co. Ltd., Class H

    780,000      656

Industrial & Commercial Bank of China, Class H

    14,771,104      10,258

Inner Mongolia Yitai Coal Co., Class B

    62,600      291

Maanshan Iron & Steel, Class H*

    3,658,000      2,296

Netease.com ADR*

    21,415      753

People’s Food Holdings Ltd.

    176,924      69

PetroChina Co. Ltd. ADR

    26,400      2,917

PetroChina Co. Ltd., Class H

    1,192,874      1,316

Renhe Commercial Holdings Co. Ltd.

    3,490,000      720

Sinotrans Shipping Ltd.

    1,243,000      548

Tencent Holdings Ltd.

    323,821      3,770

Tingyi Cayman Islands Holding Corp.

    190,000      313

Wumart Stores, Inc., Class H

    3,330,000      4,170

Yanzhou Coal Mining Co. Ltd., Class H

    4,186,000      5,749

Zhejiang Expressway Co. Ltd., Class H

    456,000      360

Zijin Mining Group Co. Ltd., Class H

    3,565,167      3,211
         
        53,448
         

Czech Republic - 1.0%

      

Central European Media Enterprises Ltd., Class A*

    165,262      3,254

CEZ A/S

    46,912      2,114

Komercni Banka A/S

    4,166      576

Telefonica O2 Czech Republic A/S

    25,402      577
         
        6,521
         

Egypt - 0.0%

      

National Societe Generale Bank S.A.E

    15,038      71
         

Hong Kong - 6.3%

      

Beijing Enterprises Holdings Ltd.

    107,500      536

Cheung Kong Holdings Ltd.

    15,000      172

China Agri-Industries Holdings Ltd.

    111,000      69

China BlueChemical Ltd., Class H

    718,000      376

China Food Ltd.

    510,000      308

China Mobile Ltd.

    1,460,990      14,650

China Pharmaceutical Group Ltd.

    672,000      345

CNOOC Ltd.

    7,934,000      9,769

Cnpc Hong Kong Ltd.

    1,170,000      974

Cosco International Holdings Ltd.

    148,000      74

Denway Motors Ltd.

    15,136,000      6,024

GZI Real Estate Investment Trust

    284,000      92

Hong Kong Exchanges and Clearing Ltd.

    35,800      555

Hopewell Holdings Ltd.

    56,000      175

 

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 84.2% continued

      

Hong Kong - 6.3% continued

      

Huabao International Holdings Ltd.

    585,000    $ 565

Inspur International Ltd.

    525,000      91

Kingsoft Corp. Ltd.

    61,000      43

Li Ning Co. Ltd.

    209,023      615

Nine Dragons Paper Holdings Ltd.

    2,867,000      1,887

Pacific Basin Shipping Ltd.*

    4,398,000      2,780

Shui On Land Ltd.

    326,700      222

Sino Biopharmaceutical

    16,000      3

Sinolink Worldwide Holdings

    1,676,000      269

Skyworth Digital Holdings Ltd.

    886,000      203
         
        40,797
         

Hungary - 0.1%

      

Egis PLC

    68      6

MOL Hungarian Oil and Gas Nyrt

    8,289      511
         
        517
         

India - 3.5%

      

ACC Ltd.

    37,113      591

Bank of Baroda

    96,729      897

Bank of India

    89,286      655

Canara Bank*

    133,252      730

Corp Bank

    9,501      66

GAIL India Ltd.

    57,326      344

Gujarat Ambuja Cements Ltd.

    298,230      544

HCL Technologies Ltd.

    127,661      494

HDFC Bank Ltd. ADR

    52,800      5,445

ICICI Bank Ltd. ADR

    72,400      2,136

Indian Bank

    110,206      336

Oil & Natural Gas Corp. Ltd.

    36,192      805

Oriental Bank Of Commerce

    99,720      373

Patni Computer Systems Ltd.

    30,302      164

Punjab National Bank Ltd.

    47,318      668

Reliance Industries Ltd.*

    2,865      121

State Bank of India Ltd.

    9,494      345

Steel Authority Of India Ltd.

    226,649      714

Sterlite Industries India Ltd.

    66,354      837

Union Bank Of India

    142,300      718

Wipro Ltd.

    744,293      5,858
         
        22,841
         

Indonesia - 5.0%

      

Astra International Tbk PT

    4,574,500      10,644

Bank Central Asia Tbk PT

    25,442,500      8,770

Bank Mandiri Persero Tbk PT

    2,594,500      800

Bank Rakyat Indonesia

    5,856,000      3,597

Perusahaan Gas Negara PT*

    14,708,500      4,520

Semen Gresik Persero Tbk PT

    1,062,000      508

Telekomunikasi Indonesia Tbk PT

    1,129,881      837

Unilever Indonesia Tbk PT

    422,916      383

United Tractors Tbk PT

    2,844,500      2,758
         
        32,817
         

Israel - 2.3%

      

Bezeq Israeli Telecommunication Corp. Ltd.

    118,850      219

Cellcom Israel Ltd.

    103,700      2,755

Elbit Systems Ltd.

    49,177      3,042

Israel Chemicals Ltd.

    259,000      2,549

Mizrahi Tefahot Bank Ltd.*

    20,556      122

Strauss-Elite Ltd.

    198,296      2,091

Teva Pharmaceutical Industries Ltd.

    28,117      1,386

Teva Pharmaceutical Industries Ltd. ADR

    60,800      3,000
         
        15,164
         

Luxembourg - 0.6%

      

Evraz Group S.A. GDR

    31,936      605

Tenaris S.A. ADR

    122,700      3,318
         
        3,923
         

Malaysia - 0.6%

      

Berjaya Sports Toto Bhd.

    72,800      104

British American Tobacco Malaysia Bhd.

    47,800      608

Hong Leong Financial Group Bhd.

    46,100      65

KLCC Property Holdings Bhd.

    145,800      135

Lafarge Malayan Cement Bhd.

    149,200      249

PLUS Expressways Bhd.

    543,124      494

Public Bank Bhd.

    215,620      555

Sime Darby Bhd.

    262,600      518

Telekom Malaysia Bhd.

    74,900      62

Tenaga Nasional Bhd.

    310,200      673

YTL Power International Bhd.

    149,147      92
         
        3,555
         

Mexico - 5.9%

      

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

    143,117      403

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

    359,926      13,936

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

    549,932      1,067

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

    297,033      278

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

    953,446      2,244

Fomento Economico Mexicano S.A. de C.V. ADR

    299,725      9,669

 

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND    continued

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 84.2% continued

      

Mexico - 5.9% continued

      

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

    180,217    $ 581

Grupo Aeroportuario de Sureste SA ADR

    59,100      2,305

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

    1,438,300      3,484

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

    461,267      504

Grupo Televisa S.A. ADR

    131,200      2,230

Industrias C.H. S.A.B. de C.V., Series B*

    4,765      15

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

    595,200      1,765
         
        38,481
         

Netherlands - 0.0%

      

New World Resources N.V., Class A

    15,951      75
         

Peru - 0.9%

      

Cia de Minas Buenaventura S.A. ADR

    108,100      2,598

Credicorp Ltd.

    59,500      3,463
         
        6,061
         

Philippines - 0.6%

      

Manila Electric Co.

    19,500      56

Megaworld Corp.*

    18,220,000      369

Metropolitan Bank & Trust

    4,039,300      2,633

Philippine Long Distance Telephone Co. ADR

    13,611      677

SM Investments Corp.

    45,760      290
         
        4,025
         

Poland - 0.1%

      

Asseco Poland S.A.

    18,962      326

KGHM Polska Miedz S.A.

    1,981      51

Telekomunikacja Polska S.A.

    49,780      241
         
        618
         

Russia - 3.3%

      

Gazprom OAO ADR (London Exchange)

    93,861      1,913

Gazprom OAO ADR (OTC Exchange)

    203,052      4,118

LUKOIL ADR (London Exchange)

    88,253      3,948

LUKOIL ADR (OTC Exchange)

    35,455      1,585

MMC Norilsk Nickel ADR*

    92,083      848

Mobile Telesystems OJSC ADR

    74,100      2,736

Novolipetsk Steel OJSC GDR (Registered)

    153,174      3,142

Rosneft Oil Co. GDR*

    33,163      182

Sberbank-CLS

    1,826,800      2,303

Severstal GDR

    97,115      525

Sistema JSFC GDR*

    3,689      45

Surgutneftegaz ADR (London Exchange)

    5,768      40

Surgutneftegaz ADR (OTC Exchange)

    49,498      341
         
        21,726
         

Singapore - 0.5%

      

Wilmar International Ltd.

    748,000      2,585

Yangzijiang Shipbuilding Holdings Ltd.

    1,440,101      770
         
        3,355
         

South Africa - 6.5%

      

ABSA Group Ltd.

    56,823      812

ArcelorMittal South Africa Ltd.

    52,859      656

Aveng Ltd.

    555,314      2,518

FirstRand Ltd.

    429,072      784

Gold Fields Ltd.

    69,397      837

Grindrod Ltd.

    22,924      42

Impala Platinum Holdings Ltd.

    100,739      2,231

Investec Ltd.

    105,099      579

Liberty Holdings Ltd.

    48,265      377

Massmart Holdings Ltd.

    354,504      3,689

Metropolitan Holdings Ltd.

    281,890      426

MTN Group Ltd.

    373,354      5,736

Remgro Ltd.

    75,365      725

Sanlam Ltd.

    378,816      850

Santam Ltd.

    7,980      88

Shoprite Holdings Ltd.

    297,548      2,126

Standard Bank Group Ltd.

    895,236      10,313

Truworths International Ltd.

    1,932,378      9,285

Wilson Bayly Holmes-Ovcon Ltd.

    10,555      146

Woolworths Holdings Ltd.

    95,600      161
         
        42,381
         

South Korea - 13.8%

      

Busan Bank

    44,910      306

Daewoo Shipbuilding & Marine Engineering Co. Ltd.

    39,530      617

Haansoft, Inc.

    12,438      37

Hankook Tire Co. Ltd.

    285,840      3,724

Hyundai Department Store Co. Ltd.

    9,744      683

Hyundai Development Co.

    79,270      2,496

Hyundai Engineering & Construction Co. Ltd.

    13,093      546

Hyundai Heavy Industries

    20,560      3,059

Hyundai Marine & Fire Insurance Co. Ltd.

    15,308      190

Hyundai Mipo Dockyard

    3,321      328

Hyundai Motor Co. Ltd.

    60,711      3,519

Kangwon Land, Inc.

    42,960      548

Korea Zinc Co. Ltd.

    3,339      361

 

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 84.2% continued

      

South Korea - 13.8% continued

      

KT Corp.

    19,330    $ 557

KT&G Corp.

    52,407      2,960

LG Chem Ltd.

    6,657      726

LG Corp.

    69,699      3,315

LG Display Co. Ltd.

    36,190      903

LG Display Co. Ltd. ADR

    246,800      3,083

LG Electronics, Inc.

    45,474      4,155

Lotte Shopping Co. Ltd.

    2,308      473

MegaStudy Co. Ltd.

    18,258      3,287

NCSoft Corp.

    123,090      17,636

NHN Corp.*

    23,723      3,278

POSCO

    4,686      1,552

Samsung Electronics Co. Ltd.

    36,787      17,037

Samsung Engineering Co. Ltd.

    66      4

Samsung Fire & Marine Insurance Co. Ltd.

    297      44

Samsung Heavy Industries Co. Ltd.

    36,010      816

Samsung Techwin Co. Ltd.

    43,791      2,469

Shinhan Financial Group Co. Ltd.*

    274,204      6,888

Shinsegae Co. Ltd.

    6,882      2,723

SK Holdings Co. Ltd.

    6,822      569

SK Telecom Co. Ltd.

    4,974      679

S-Oil Corp.

    6,207      276

Woori Investment & Securities Co. Ltd.

    19,290      226
         
        90,070
         

Taiwan - 11.1%

      

Asia Cement Corp.

    2,466,000      2,620

AU Optronics Corp.

    988,000      958

China Life Insurance Co. Ltd.*

    250,000      117

Chinatrust Financial Holding Co. Ltd.*

    8,602,000      5,153

Chunghwa Telecom Co. Ltd.

    421,206      840

Compal Electronics, Inc.

    879,000      711

Far Eastern Textile Co. Ltd.

    3,047,000      3,513

Formosa Petrochemical Corp.*

    278,000      664

Formosa Plastics Corp.

    439,000      781

Fubon Financial Holding Co. Ltd.*

    731,000      679

HannStar Display Corp.

    129,000      26

HON HAI Precision Industry Co. Ltd. GDR

    178,350      1,089

HON HAI Precision Industry Co. Ltd.

    2,326,700      7,162

HTC Corp.

    232,000      3,262

InnoLux Display Corp.

    90,000      110

Inventec Co. Ltd.

    551,000      317

KGI Securities Co. Ltd.

    788,000      357

Lite-On Technology Corp.

    647,000      559

Macronix International

    989,000      447

MediaTek, Inc.

    51,000      607

President Chain Store Corp.

    1,820,000      4,658

Quanta Computer, Inc.

    509,000      824

Siliconware Precision Industries Co.

    576,628      664

Siliconware Precision Industries Co. ADR

    537,200      3,331

Soft-World International Corp.

    11,114      61

Taiwan Cement Corp.

    5,318,000      5,065

Taiwan Cooperative Bank

    382,000      219

Taiwan Semiconductor Manufacturing Co. Ltd.

    6,828,000      11,342

Taiwan Semiconductor Manufacturing Co. Ltd. ADR

    287,900      2,709

U-Ming Marine Transport Corp.

    253,360      493

Uni-President Enterprises Corp.

    1,992,170      2,045

United Microelectronics Corp.

    2,462,000      820

Wistron Corp.

    2,526,000      4,169

Yageo Corp.

    9,350,000      1,880

Yuanta Financial Holding Co. Ltd.

    6,555,000      4,386
         
        72,638
         

Thailand - 1.6%

      

Bangkok Bank PCL

    218,325      687

Banpu PCL (Registered)

    17,900      176

CP ALL PCL

    17,155      9

Kasikornbank PCL NVDR

    1,492,900      2,879

Krung Thai Bank PCL

    1,516,106      389

Land and Houses PCL

    13,363,621      1,977

PTT Exploration & Production PCL

    166,400      645

Siam Commercial Bank PCL (Registered)

    340,813      750

Tisco Financial Group PCL*

    3,735,800      2,094

Tisco Financial Group PCL NVDR

    1,108,298      597
         
        10,203
         

Turkey - 0.5%

      

Turkiye Garanti Bankasi A.S.*

    1,293,654      3,480
         

United Kingdom - 0.9%

      

Anglo American PLC

    199,704      5,790
         

United States - 0.5%

      

Cognizant Technology Solutions Corp., Class A*

    114,000      3,044
         

Total Common Stocks

      
         

(Cost $435,084) (1)

         549,338

 

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)		  

CONVERTIBLE PREFERRED STOCKS - 3.4%

      

Brazil - 3.4%

      

Banco Itau Holding Financeira S.A. ADR

      1,129,756    $ 17,884   

Brasil Telecom Participacoes S.A. ADR

      105,199      4,040   

Cia de Bebidas das Americas ADR

      6,077      394   
           
        22,318   
           

Total Convertible Preferred Stocks

      
           

(Cost $17,499) (1)

         22,318   

PREFERRED STOCKS - 2.5%

      

Brazil - 2.5%

      

Banco do Estado do Rio Grande do Sul

      30,166      122   

Bradespar S.A.

      48,465      633   

Braskem S.A., Class A*

      18,115      66   

Centrais Eletricas Brasileiras S.A., Class B

      49,541      645   

Cia Paranaense de Energia, Class B

      29,157      406   

Cia Vale do Rio Doce, Class A

      53,717      818   

Eletropaulo Metropolitana de Sao Paulo S.A., Class B

      30,880      547   

Fertilizantes Fosfatados S.A.

      71,177      543   

Investimentos Itau S.A.

      224,083      997   

Itau Unibanco Banco Multiplo S.A.

      17,586      279   

Lojas Americanas S.A.

      14,434      68   

Metalurgica Gerdau S.A.

      51,647      680   

Petroleo Brasileiro ADR

      172,216      5,745   

Petroleo Brasileiro S.A. - Petrobras

      192,388      3,199   

Telecomunicacoes de Sao Paulo S.A.

      20,833      466   

Telemar Norte Leste S.A.

      9,638      268   

Ultrapar Participacoes S.A.

      13,436      426   

Universo Online S.A.

      19,874      74   

Vivo Participacoes S.A.

      17,725      338   
           
        16,320   
           

Total Preferred Stocks

      
           

(Cost $12,844) (1)

         16,320   

INVESTMENT COMPANIES - 8.0%

      

iShares MSCI Emerging Markets Index Fund

      970,629      31,283   

Northern Institutional Funds - Diversified Assets Portfolio (2) (3)

      20,882,149      20,882   
           

Total Investment Companies

      
           

(Cost $46,882)

         52,165   
     NUMBER
OF
WARRANTS		       

WARRANTS - 1.1%

      

India - 0.3%

      

Bharat Electronics Ltd., Exp. 4/15/10, Strike $1

      73,400      2,037   

United States - 0.8%

      

UBS A.G. London Branch, Exp. 4/15/10, Strike $1

      48,153      2,033   

UBS A.G. London, Exp. 4/15/10, Strike $1

      152,861      2,832   
           
        4,865   
           

Total Warrants

      
           

(Cost $6,713)

         6,902   
     PRINCIPAL
AMOUNT
(000S)		       

SHORT-TERM INVESTMENTS - 1.5%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 9,644      9,644   
           

Total Short-Term Investments

      
           

(Cost $9,644)

         9,644   
           

Total Investments - 100.7%

      
           

(Cost $528,666)

         656,687   

Liabilities less Other Assets - (0.7)%

         (4,626 ) 
           

NET ASSETS - 100.0%

       $ 652,061   

 

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.
(2) The Fund had approximately $1,585,00 of net sales in the Diversified Assets Portfolio of the Northern Institutional Funds during the period ended June 30, 2009.
(3) Investment in affiliated fund. Northern Trust Investments, N.A. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

 

MULTI-MANAGER FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

At June 30, 2009, the industry sectors for the Multi-Manager Emerging Markets Equity Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

    8.9 % 

Consumer Staples

    10.1   

Energy

    11.9   

Financials

    25.9   

Health Care

    1.1   

Industrials

    7.0   

Information Technology

    16.4   

Materials

    9.3   

Telecommunication Services

    8.4   

Utilities

    1.0   
      

Total

    100.0 % 
      

At June 30, 2009, the Multi-Manager Emerging Markets Equity Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

United States Dollar

    32.2 % 

Hong Kong Dollar

    14.1   

South Korean Won

    13.9   

Taiwan Dollar

    10.4   

South African Rand

    7.7   

Brazilian Real

    6.6   

Indonesian Rupiah

    5.2   

All other currencies less than 5%

    9.9   
      

Total

    100.0 % 
      

At June 30, 2009, the Multi-Manager Emerging Markets Equity Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS TO DELIVER CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		   

IN EXCHANGE

FOR CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

Israeli Shekel

    10   

U.S. Dollar

    3    7/1/09    $ —     

U.S. Dollar

    321   

Indonesian Rupiah

    3,277,125    7/1/09      —     

U.S. Dollar

    38   

Israeli Shekel

    149    7/1/09      —     

U.S. Dollar

    218   

Taiwan Dollar

    7,160    7/1/09      —     

U.S. Dollar

    908   

Hong Kong Dollar

    7,038    7/2/09      —     

U.S. Dollar

    31   

Singapore Dollar

    45    7/2/09      —     

U.S. Dollar

    84   

Thai Baht

    2,844    7/2/09      —     

U.S. Dollar

    676   

Hong Kong Dollar

    5,240    7/3/09      —     

U.S. Dollar

    103   

Indian Rupee

    4,955    7/3/09      —     

U.S. Dollar

    450   

South African Rand

    3,515    7/3/09      5   

U.S. Dollar

    172   

Canadian Dollar

    201    7/6/09      —     

South African Rand

    1,065   

U.S. Dollar

    138    7/7/09      —     

Taiwan Dollar

    6,031   

U.S. Dollar

    183    9/16/09      (1 ) 
                    

Total

                $ 4   
                    

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 528,666   
        

Gross tax appreciation of investments

    $ 129,909   

Gross tax depreciation of investments

      (1,888 ) 
        

Net tax appreciation of investments

    $ 128,021   
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Emerging Markets Equity Fund’s investments, and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

            

Consumer Discretionary

    $ 10,591    $ 44,080    $ —      $ 54,671

Consumer Staples

      32,309      28,805      —        61,114

Energy

      34,413      28,911      —        63,324

Financials

      17,405      93,947      —        111,352

Health Care

      4,674      2,116      —        6,790

Industrials

      11,775      31,331      —        43,106

Information Technology

      14,123      84,644      —        98,767

Materials

      14,366      40,193      —        54,559

Telecommunication Services

      21,304      25,315      —        46,619

Utilities

      1,238      7,798      —        9,036

Convertible Preferred Stock

            

Consumer Staples

      394      —        —        394

Financials

      17,884      —        —        17,884

Telecommunication Services

      4,040      —        —        4,040

Preferred Stock

            

Consumer Discretionary

      68      —           68

Energy

      9,370      —        —        9,370

Financials

      1,398      —        —        1,398

Information Technology

      73      —        —        73

Materials

      2,741      —        —        2,741

Telecommunication Services

      1,072      —        —        1,072

Utilities

      1,598      —        —        1,598

Investment Companies

      52,165      —        —        52,165

Warrants

            

Health Care

      —        —        2,832      2,832

Industrials

      —        —        4,070      4,070

Short-Term Investments

      —        9,644      —        9,644
                           

Total Investments

    $ 253,001    $ 396,784    $ 6,902    $ 656,687
                           

Other Financial Instruments*

      —        4      —        4
                           

 

* Other financial instruments include futures and forwards, if applicable.

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

 

     INVESTMENTS
IN SECURITIES
(000S)		    OTHER FINANCIAL
INSTRUMENTS*
(000S)

Balance as of 3/31/09

    $ —      $ —  

Realized gain (loss)

      —        —  

Change in unrealized appreciation/depreciation

      189      —  

Net Purchases (Sales)

      6,713      —  

Transfers in and/or out of Level 3

      —        —  
             

Balance as of 6/30/09

    $ 6,902    $ —  

 

* Other financial instruments include futures and forwards, if applicable.

 

NORTHERN FUNDS QUARTERLY REPORT    6    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.3%

      

Australia - 2.1%

      

Alumina Ltd.

    1,877,700    $ 2,155

AMP Ltd.

    893,011      3,499

BHP Billiton Ltd.

    119,669      3,280

BHP Billiton Ltd. ADR

    54,385      2,976

Incitec Pivot Ltd.

    1,311,357      2,495

National Australia Bank Ltd.

    109,541      1,972

Newcrest Mining Ltd.

    252,717      6,192

Woolworths Ltd.

    209,461      4,429

WorleyParsons Ltd.

    130,190      2,480
         
        29,478
         

Belgium - 0.9%

      

Anheuser-Busch InBev N.V.

    117,206      4,243

Belgacom S.A.

    229,364      7,333

Colruyt S.A.

    5,559      1,268
         
        12,844
         

Brazil - 1.3%

      

BM&FBOVESPA S.A.

    1,102,427      6,628

Centrais Eletricas Brasileiras S.A.

    111,872      1,636

Petroleo Brasileiro S.A. ADR

    119,648      4,903

Redecard S.A.

    184,400      2,837

Vale S.A.

    103,700      1,828

Weg S.A.

    164,600      1,159
         
        18,991
         

Canada - 5.4%

      

Agnico-Eagle Mines Ltd.

    37,090      1,946

Barrick Gold Corp.

    346,275      11,617

Brookfield Asset Management, Inc., Class A

    177,911      3,037

Canadian National Railway Co.

    118,854      5,106

EnCana Corp.

    85,869      4,258

Inmet Mining Corp.

    97,270      3,568

Ivanhoe Mines Ltd./CA*

    506,978      2,839

Kinross Gold Corp.

    119,600      2,180

Magna International, Inc., Class A

    276,840      11,694

Nexen, Inc.

    263,952      5,715

Novagold Resources, Inc.*

    943,862      4,040

Potash Corp. of Saskatchewan

    24,800      2,308

Research In Motion Ltd.*

    31,880      2,265

Shoppers Drug Mart Corp.

    125,350      5,387

Suncor Energy, Inc.

    180,357      5,472

Teck Resources Ltd., Class B*

    29,400      469

Tim Hortons, Inc.

    73,382      1,793

Yamana Gold, Inc.

    302,020      2,670
         
        76,364
         

China - 1.6%

      

China Life Insurance Co. Ltd., Class H

    1,879,000      6,938

China Oilfield Services Ltd., Class H

    2,220,000      2,386

China Railway Construction Corp. Ltd., Class H

    1,703,000      2,623

China South Locomotive and Rolling Stock Corp., Class H

    4,211,000      2,483

China Zhongwang Holdings Ltd.*

    2,252,400      3,092

Industrial & Commercial Bank of China, Class H

    4,188,000      2,908

Suntech Power Holdings Co. Ltd.*

    138,000      2,465
         
        22,895
         

Denmark - 0.8%

      

Novo-Nordisk A/S, Class B

    119,540      6,497

Vestas Wind Systems A/S*

    67,487      4,852
         
        11,349
         

Egypt - 0.1%

      

Orascom Construction Industries GDR

    45,298      1,484
         

Finland - 1.2%

      

Nokia OYJ

    441,463      6,443

Nokia OYJ ADR

    351,219      5,121

Stora Enso OYJ (Registered)*

    1,012,380      5,342
         
        16,906
         

France - 8.5%

      

Alcatel-Lucent*

    1,050,052      2,646

Alstom S.A.

    105,368      6,237

Areva S.A.

    5,940      3,470

BNP Paribas

    36,691      2,381

Carrefour S.A.

    185,651      7,942

Compagnie Generale de Geophysique-Veritas*

    138,472      2,500

Gemalto N.V.*

    200,636      6,960

Iliad S.A.

    34,633      3,364

L’Oreal S.A.

    50,168      3,756

Nexans S.A.

    36,306      1,935

Sanofi-Aventis S.A.

    309,947      18,229

Schneider Electric S.A.

    55,612      4,253

Societe Generale

    65,002      3,547

Technip S.A.

    122,130      6,003

Thales S.A.

    282,223      12,630

Total S.A.

    132,606      7,182

 

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.3% continued

      

France - 8.5% continued

      

Total S.A. ADR

    165,500    $ 8,975

UBISOFT Entertainment*

    176,390      4,312

Veolia Environment

    45,079      1,332

Vinci S.A.

    108,514      4,870

Vivendi S.A.

    298,902      7,160
         
        119,684
         

Germany - 3.5%

      

Adidas A.G.

    113,260      4,316

Allianz S.E. (Registered)

    36,710      3,395

BASF S.E.

    80,355      3,205

Daimler A.G. (Registered)

    43,677      1,580

Deutsche Boerse A.G.

    26,509      2,060

E.ON A.G.

    138,313      4,910

GEA Group A.G.

    127,176      1,929

Metro A.G.

    57,653      2,756

SAP A.G.

    130,517      5,262

Siemens A.G. (Registered)

    164,397      11,382

Solarworld A.G.

    46,548      1,099

Symrise A.G.

    400,025      5,920

United Internet A.G. (Registered)*

    116,547      1,369
         
        49,183
         

Greece - 0.5%

      

National Bank of Greece S.A.*

    176,050      4,824

Public Power Corp. S.A.*

    84,274      1,734
         
        6,558
         

Hong Kong - 2.7%

      

ASM Pacific Technology Ltd.

    184,800      956

Belle International Holdings Ltd.

    3,689,000      3,239

Cheung Kong Holdings Ltd.

    397,201      4,554

China Mobile Ltd.

    330,500      3,314

China Overseas Land & Investment Ltd.

    1,810,000      4,191

China Resources Land Ltd.

    1,322,000      2,911

CNOOC Ltd.

    2,806,000      3,455

Hong Kong Exchanges and Clearing Ltd.

    224,300      3,480

Li & Fung Ltd.

    1,014,000      2,710

Li Ning Co. Ltd.

    209,000      615

Noble Group Ltd.

    2,434,000      3,047

Shangri-La Asia Ltd.

    1,124,000      1,681

Sun Hung Kai Properties Ltd.

    265,000      3,298
         
        37,451
         

India - 1.1%

      

HDFC Bank Ltd. ADR

    19,484      2,009

ICICI Bank Ltd. ADR

    201,000      5,929

Infosys Technologies Ltd. ADR

    153,584      5,649

Reliance Industries Ltd., GDR (London Exchange) (1) *

    16,854      1,393

Reliance Industries Ltd., GDR (OTC Exchange) (1) *

    486      41
         
        15,021
         

Indonesia - 0.2%

      

Bank Rakyat Indonesia

    4,296,500      2,639
         

Ireland - 1.3%

      

Covidien PLC

    88,710      3,321

CRH PLC

    144,078      3,303

Experian PLC

    985,040      7,383

Ryanair Holdings PLC ADR*

    164,395      4,667
         
        18,674
         

Israel - 0.6%

      

Teva Pharmaceutical Industries Ltd. ADR

    158,395      7,815
         

Italy - 1.6%

      

Ansaldo STS S.p.A.

    98,002      1,808

ENI S.p.A.

    188,602      4,474

Intesa Sanpaolo S.p.A.*

    301,684      978

Saipem S.p.A.

    305,236      7,451

Telecom Italia S.p.A. (RSP)

    8,612,940      8,469
         
        23,180
         

Japan - 20.3%

      

Asahi Glass Co. Ltd.

    401,000      3,200

Bank of Yokohama (The) Ltd.

    783,950      4,175

Canon, Inc.

    252,092      8,205

Coca-Cola West Holdings Co. Ltd.

    566,900      10,835

Dai Nippon Printing Co. Ltd.

    878,000      12,003

Daiwa Securities Group, Inc.

    170,995      1,011

Fanuc Ltd.

    64,880      5,177

Fast Retailing Co. Ltd.

    40,100      5,223

FUJIFILM Holdings Corp.

    424,500      13,392

Hosiden Corp.

    83,400      1,056

Ibiden Co. Ltd.

    37,000      1,034

Joyo Bank (The) Ltd.

    853,893      4,341

JS Group Corp.

    390,500      6,013

Jupiter Telecommunications Co. Ltd.

    4,013      3,042

Kao Corp.

    172,000      3,748

Keyence Corp.

    17,953      3,654

Komatsu Ltd.

    84,300      1,294

Kose Corp.

    274,084      5,776

Kurita Water Industries Ltd.

    51,001      1,643

 

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.3% continued

      

Japan - 20.3% continued

      

Mabuchi Motor Co. Ltd.

    221,200    $ 10,636

MID REIT, Inc.

    652      1,454

Mitsubishi Corp.

    445,815      8,188

Mitsubishi UFJ Financial Group, Inc.

    669,211      4,114

Mitsui Fudosan Co. Ltd.

    166,000      2,876

Mitsui Sumitomo Insurance Group Holdings, Inc.

    379,564      9,898

Nintendo Co. Ltd.

    31,700      8,724

Nippon Electric Glass Co. Ltd.

    420,000      4,682

Nippon Steel Corp.

    366,000      1,396

Nippon Telegraph & Telephone Corp. ADR

    520,241      10,587

Nipponkoa Insurance Co. Ltd.

    1,027,022      5,957

Nomura Holdings, Inc.

    1,253,269      10,500

Nomura Research Institute Ltd.

    304,432      6,754

Rohm Co. Ltd.

    111,700      8,113

Secom Co. Ltd.

    57,357      2,326

Sega Sammy Holdings, Inc.

    544,300      6,883

Sekisui House Ltd.

    559,000      5,651

Seven & I Holdings Co. Ltd.

    577,406      13,547

Shin-Etsu Chemical Co. Ltd.

    50,100      2,314

Shiseido Co. Ltd.

    567,000      9,277

SMC Corp. of Japan

    34,303      3,677

Sugi Holdings Co. Ltd.

    199,654      4,107

Sumitomo Metal Mining Co. Ltd.

    260,946      3,669

Sumitomo Trust & Banking (The) Co. Ltd.

    1,422,092      7,655

Suzuki Motor Corp.

    269,122      6,018

Terumo Corp.

    77,900      3,429

THK Co. Ltd.

    134,889      2,011

Tokyu Land Corp.

    667,000      3,013

Toyo Seikan Kaisha Ltd.

    355,600      7,494

Toyota Motor Corp.

    180,400      6,820

United Urban Investment Corp.

    270      1,159

Wacoal Holdings Corp.

    575,000      7,203
         
        284,954
         

Malaysia - 0.2%

      

Sime Darby Bhd.

    1,379,986      2,721
         

Netherlands - 2.8%

      

ArcelorMittal

    68,277      2,242

ASML Holding N.V.*

    56,087      1,217

Heineken N.V.

    255,697      9,500

Koninklijke Philips Electronics N.V., New York Shares

    184,800      3,404

Qiagen N.V.*

    184,457      3,424

Royal Dutch Shell PLC ADR

    208,494      10,604

TomTom N.V.*

    320,878      3,902

Wolters Kluwer N.V.

    276,912      4,846
         
        39,139
         

Norway - 0.5%

      

Seadrill Ltd.

    230,800      3,316

StatoilHydro ASA

    207,109      4,091
         
        7,407
         

Portugal - 0.2%

      

Energias de Portugal S.A.

    702,659      2,757
         

Russia - 0.4%

      

Gazprom OAO ADR (London Exchange)

    300,935      6,132

Gazprom OAO ADR (OTC Exchange)

    5,089      103
         
        6,235
         

Singapore - 0.8%

      

CapitaLand Ltd.

    1,121,000      2,847

DBS Group Holdings Ltd.

    386,837      3,139

Golden Agri-Resources Ltd.*

    8,748,000      2,289

Wilmar International Ltd.

    736,000      2,544
         
        10,819
         

South Africa - 2.4%

      

AngloGold Ashanti Ltd. ADR

    207,719      7,609

Gold Fields Ltd.

    542,366      6,546

Gold Fields Ltd. ADR

    181,973      2,193

Impala Platinum Holdings Ltd.

    365,517      8,095

MTN Group Ltd.

    356,625      5,479

Naspers Ltd., Class N

    145,800      3,842
         
        33,764
         

South Korea - 1.8%

      

Hyundai Motor Co.

    26,690      1,547

KB Financial Group, Inc. ADR*

    81,813      2,725

Korea Electric Power Corp. ADR*

    352,010      4,048

POSCO ADR

    19,900      1,645

Samsung Electronics Co. Ltd.

    12,354      5,722

SK Telecom Co. Ltd. ADR

    646,160      9,789
         
        25,476
         

Spain - 2.2%

      

Banco Santander S.A.

    311,326      3,757

Gamesa Corp. Tecnologica S.A.

    52,833      1,003

Iberdrola Renovables S.A.*

    907,300      4,153

Iberdrola S.A.

    277,917      2,260

 

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 87.3% continued

      

Spain - 2.2% continued

      

Inditex S.A.

    148,741    $ 7,148

Red Electrica Corp. S.A.

    10,960      496

Tecnicas Reunidas S.A.

    31,239      1,474

Telefonica S.A.

    440,693      9,993
         
        30,284
         

Sweden - 0.8%

      

Hennes & Mauritz AB, Class B

    65,800      3,290

Telefonaktiebolaget LM Ericsson ADR, Class B

    805,537      7,879
         
        11,169
         

Switzerland - 6.2%

      

ABB Ltd. (Registered)*

    246,393      3,879

Actelion Ltd. (Registered)*

    64,263      3,370

Alcon, Inc.

    12,000      1,393

Credit Suisse Group A.G. (Registered)

    188,218      8,592

Julius Baer Holding A.G. (Registered)

    116,366      4,537

Kuehne & Nagel International A.G. (Registered)

    24,415      1,917

Nestle S.A. (Registered)

    479,493      18,097

Novartis A.G. (Registered)

    329,951      13,406

Roche Holding A.G. (Genusschein)

    48,771      6,635

SGS S.A. (Registered)

    3,518      4,369

Sonova Holding A.G. (Registered)*

    18,153      1,477

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

    46,024      1,509

Syngenta A.G. (Registered)

    21,595      5,015

UBS A.G.*

    300,519      3,669

Xstrata PLC

    218,731      2,413

Zurich Financial Services A.G. (Registered)

    35,578      6,298
         
        86,576
         

Taiwan - 0.9%

      

MediaTek, Inc.

    329,000      3,914

Taiwan Semiconductor Manufacturing Co. Ltd.

    3,869,180      6,427

Taiwan Semiconductor Manufacturing Co. Ltd. ADR

    296,800      2,793
         
        13,134
         

Thailand - 0.2%

      

Bangkok Bank PCL (Registered)

    796,072      2,597
         

Turkey - 0.2%

      

Turkiye Garanti Bankasi A.S.*

    800,374      2,153
         

United Kingdom - 13.0%

      

Amec PLC

    220,893      2,378

Amlin PLC

    326,700      1,628

Anglo American PLC

    244,178      7,126

Antofagasta PLC

    451,597      4,386

AstraZeneca PLC

    38,076      1,677

Autonomy Corp. PLC*

    357,036      8,460

BAE Systems PLC

    1,028,747      5,743

Barclays PLC

    745,921      3,474

BG Group PLC

    832,106      13,982

BP PLC ADR

    371,506      17,713

British Sky Broadcasting Group PLC

    685,018      5,139

Cadbury PLC

    665,003      5,681

Cairn Energy PLC*

    64,874      2,506

Capita Group PLC

    541,892      6,389

Compass Group PLC

    184,665      1,041

Diageo PLC

    442,670      6,357

GlaxoSmithKline PLC

    447,877      7,887

HSBC Holdings PLC (London Exchange)

    285,629      2,371

HSBC Holdings PLC (Hong Kong Exchange)

    555,600      4,656

International Power PLC

    279,955      1,099

John Wood Group PLC

    223,664      986

Petrofac Ltd.

    197,699      2,184

Reckitt Benckiser Group PLC

    181,173      8,257

Rolls-Royce Group PLC*

    895,628      5,340

Rotork PLC

    105,133      1,434

Scottish & Southern Energy PLC

    210,316      3,949

Standard Chartered PLC

    606,700      11,427

Subsea 7, Inc.*

    175,000      1,794

Tullow Oil PLC

    307,041      4,751

United Utilities Group PLC

    845,783      6,928

Vedanta Resources PLC

    171,376      3,648

Vodafone Group PLC

    5,103,214      9,865

Vodafone Group PLC ADR

    393,026      7,660

WPP PLC

    804,992      5,354
         
        183,270
         

United States - 1.0%

      

Newmont Mining Corp.

    224,377      9,170

Philip Morris International, Inc.

    109,156      4,762
         
        13,932
         

Total Common Stocks

      
         

(Cost $1,266,688) (2)

         1,226,903

 

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

CONVERTIBLE PREFERRED STOCKS - 0.9%

      

Brazil - 0.5%

      

Banco Itau Holding Financeira S.A. ADR

      460,853    $ 7,296
         

United States - 0.4%

      

Lucent Technologies Capital Trust I

      8,125      4,956
         

Total Convertible Preferred Stocks

      
         

(Cost $7,919) (2)

         12,252

PREFERRED STOCKS - 1.0%

      

Brazil - 0.6%

      

Centrais Eletricas Brasileiras S.A. ADR

      294,000      3,839

Petroleo Brasileiro S.A. - Petrobras

      235,098      3,909
         
        7,748
         

Germany - 0.4%

      

Henkel AG & Co. KGaA

      192,818      6,025
         

Total Preferred Stocks

      
         

(Cost $13,010) (2)

         13,773

INVESTMENT COMPANIES - 8.6%

      

iShares MSCI Emerging Markets Index Fund

      2,249,605      72,505

Northern Institutional Funds - Diversified Assets Portfolio (3) (4)

      48,434,523      48,434
         

Total Investment Companies

      
         

(Cost $143,434)

         120,939

RIGHTS - 0.0%

      

Singapore - 0.0%

      

Golden Agri-Resources Ltd.*

      1,487,160      205
         

Total Rights

      
         

(Cost $ — )

         205
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 2.1%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 23,924      23,924

U.S. Treasury Bill,

      

0.28%, 11/19/09(5)

     5,635      5,629
         

Total Short-Term Investments

      
         

(Cost $29,553)

         29,553
         

Total Investments - 99.9%

      
         

(Cost $1,460,604)

       $ 1,403,625

Other Assets less Liabilities - 0.1%

         1,360
         

NET ASSETS - 100.0%

       $ 1,404,985

 

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(2) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.
(3) Investment in affiliated fund. Northern Trust Investments, N.A. is an investment adviser of the Portfolio and the investment adviser to other Northern Institutional Funds and to the Northern Funds.
(4) At March 31, 2009, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $40,297,000 with net Purchases of approximately $8,136,000 during the period ended June 30, 2009.
(5) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Multi-Manager International Equity Fund had open futures contracts as follows:

 

TYPE

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

E-Mini MSCI

               

EAFE Index

    451    $ 29,380    Long    9/09    $ 154
                  

At June 30, 2009, the industry sectors for the Multi-Manager International Equity Fund were:

 

INDUSTRY SECTOR

    % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

    8.5 % 

Consumer Staples

    10.6   

Energy

    10.7   

Financials

    20.4   

Health Care

    5.9   

Industrials

    12.5   

Information Technology

    11.7   

Materials

    11.0   

Telecommunication Services

    5.7   

Utilities

    3.0   
      

Total

    100.0 % 
      

 

MULTI-MANAGER FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND    continued

 

At June 30, 2009, the Multi-Manager International Equity Fund’s investments were denominated in the following currencies:

 

CONCENTRATION BY CURRENCY

    % OF LONG-TERM
INVESTMENTS		  

U.S. Dollar

    23.5 % 

Euro

    21.3   

Japanese Yen

    20.7   

British Pond

    12.2   

Swiss Franc

    6.0   

All other currencies less than 5%

    16.3   
      

Total

    100.0 % 
      

At June 30, 2009, the Multi-Manager International Equity Fund had outstanding forward foreign currency exchange contracts as follows:

 

CONTRACTS TO DELIVER CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		   

IN EXCHANGE

FOR CURRENCY

    AMOUNT
(LOCAL
CURRENCY)
(000S)		    SETTLEMENT
DATE		    UNREALIZED
GAIN (LOSS)
(000S)		  

British Pound

    235    U.S. Dollar    386    7/1/09    $ —     

Japanese Yen

    4    U.S. Dollar    —      7/1/09      —     

Japanese Yen

    1,865    U.S. Dollar    19    7/1/09      —     

Japanese Yen

    2,975    U.S. Dollar    31    7/1/09      —     

Japanese Yen

    6,509    U.S. Dollar    68    7/1/09      —     

Japanese Yen

    7,171    U.S. Dollar    75    7/1/09      —     

U.S. Dollar

    279    Euro    199    7/1/09      —     

U.S. Dollar

    367    Japanese Yen    34,894    7/1/09      (4 ) 

U.S. Dollar

    97    Swiss Franc    104    7/1/09      —     

Hong Kong Dollar

    317    U.S. Dollar    41    7/2/09      —     

Japanese Yen

    700    U.S. Dollar    7    7/2/09      —     

Japanese Yen

    1,483    U.S. Dollar    15    7/2/09      —     

Japanese Yen

    1,728    U.S. Dollar    18    7/2/09      —     

Japanese Yen

    1,802    U.S. Dollar    19    7/2/09      —     

Japanese Yen

    2,182    U.S. Dollar    23    7/2/09      —     

Japanese Yen

    2,983    U.S. Dollar    31    7/2/09      —     

Japanese Yen

    4,066    U.S. Dollar    42    7/2/09      —     

Japanese Yen

    4,780    U.S. Dollar    50    7/2/09      —     

U.S. Dollar

    801    Euro    572    7/2/09      —     

U.S. Dollar

    87    Hong Kong Dollar    674    7/2/09      —     

U.S. Dollar

    632    Japanese Yen    60,518    7/2/09      (3 ) 

U.S. Dollar

    2,505    Japanese Yen    241,700    7/2/09      4   

U.S. Dollar

    77    South African Rand    621    7/2/09      3   

U.S. Dollar

    113    South African Rand    906    7/2/09      4   

U.S. Dollar

    14    Swiss Franc    15    7/2/09      —     

U.S. Dollar

    85    Hong Kong Dollar    661    7/3/09      —     

U.S. Dollar

    155    Japanese Yen    14,930    7/3/09      —     
                    

Total

                $ 4   
                    

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 1,460,604   
        

Gross tax appreciation of investments

    $ 100,603   

Gross tax depreciation of investments

      (157,582 ) 
        

Net tax depreciation of investments

    $ (56,979 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager International Equity Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

          

Consumer Discretionary

    $ 13,487      $ 99,758    $ —        $ 113,245

Consumer Staples

      10,149        124,411      —          134,560

Energy

      57,743        80,920      41        138,704

Financials

      23,998        167,205      —          191,203

Health Care

      12,530        66,031      —          78,561

Industrials

      16,801        148,374      —          165,175

Information Technology

      18,665        129,249      —          147,914

Materials

      57,059        89,328      —          146,387

Telecommunication Services

      28,036        47,817      —          75,853

Utilities

      5,684        29,617      —          35,301

Convertible Preferred Stocks

      12,252 (1)      —        —          12,252

Preferred Stocks

          

Consumer Staples

      —          6,025      —          6,025

Energy

      3,909        —        —          3,909

Utilities

      3,839        —        —          3,839

Investment Companies

      120,939        —        —          120,939

Rights

      —          —        205 (1)      205

Short-Term Investments

      —          29,553      —          29,553
                             

Total Investments

    $ 385,091      $ 1,018,288    $ 246      $ 1,403,625
                             

Other Financial Instruments*

    $ 154      $ 4    $ —        $ 158
                             

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

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

     INVESTMENTS
IN SECURITIES
(000S)		  

Balance as of 3/31/09

    $ 600   

Realized gain (loss)

      —     

Change in unrealized appreciation/depreciation

      (354 ) 

Net Purchases (Sales)

      —     

Transfers in and/or out of Level 3

      —     
        

Balance as of 6/30/09

    $ 246   

The amount of change in total unrealized gain on investments in level 3 securities still held at June 30, 2009 was $12,000.

 

MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 94.2%

      

Aerospace/Defense - 3.7%

      

Boeing (The) Co.

    63,000    $ 2,678

General Dynamics Corp.

    78,136      4,328

Lockheed Martin Corp.

    43,961      3,545

Northrop Grumman Corp.

    136,500      6,235
         
        16,786
         

Agriculture - 0.9%

      

Archer-Daniels-Midland Co.

    145,900      3,907
         

Apparel - 1.6%

      

Coach, Inc.

    11,730      315

NIKE, Inc., Class B

    78,457      4,063

Polo Ralph Lauren Corp.

    57,000      3,052
         
        7,430
         

Auto Parts & Equipment - 0.0%

      

Johnson Controls, Inc.

    9,700      211
         

Banks - 9.1%

      

Banco Santander S.A. ADR

    67,260      814

Bank of America Corp.

    502,040      6,627

Bank of New York Mellon Corp.

    138,000      4,045

East-West Bancorp, Inc.

    51,500      334

Goldman Sachs Group (The), Inc.

    49,548      7,305

JPMorgan Chase & Co.

    218,859      7,465

M&T Bank Corp.

    57,500      2,929

Mitsubishi UFJ Financial Group, Inc. ADR

    520,000      3,193

Morgan Stanley

    28,580      815

Synovus Financial Corp.

    484,000      1,447

U.S. Bancorp

    106,274      1,904

Wells Fargo & Co.

    128,511      3,118

Zions Bancorporation

    120,000      1,387
         
        41,383
         

Beverages - 1.1%

      

Diageo PLC ADR

    53,000      3,034

PepsiCo, Inc.

    33,700      1,852
         
        4,886
         

Biotechnology - 2.0%

      

Celgene Corp.*

    38,600      1,847

Genzyme Corp.*

    12,076      672

Gilead Sciences, Inc.*

    125,381      5,873

Vertex Pharmaceuticals, Inc.*

    15,000      534
         
        8,926
         

Chemicals - 3.7%

      

Air Products & Chemicals, Inc.

    48,700      3,146

Dow Chemical (The) Co.

    106,625      1,721

du Pont (E.I.) de Nemours & Co.

    146,100      3,743

Monsanto Co.

    55,982      4,162

Potash Corp. of Saskatchewan, Inc.

    20,371      1,895

Praxair, Inc.

    34,275      2,436
         
        17,103
         

Commercial Services - 1.0%

      

Mastercard, Inc., Class A

    26,640      4,457
         

Computers - 7.1%

      

Apple, Inc.*

    84,323      12,010

EMC Corp. of Massachusetts*

    260,000      3,406

Hewlett-Packard Co.

    52,700      2,037

IBM Corp.

    118,380      12,361

Research In Motion Ltd.*

    33,400      2,373
         
        32,187
         

Cosmetics/Personal Care - 1.0%

      

Colgate-Palmolive Co.

    29,500      2,087

L’Oreal S.A. ADR

    166,000      2,485
         
        4,572
         

Diversified Financial Services - 1.4%

      

American Express Co.

    107,719      2,503

Charles Schwab (The) Corp.

    229,100      4,019
         
        6,522
         

Electric - 3.2%

      

Dominion Resources, Inc. of Virginia

    107,000      3,576

Edison International

    126,400      3,976

FPL Group, Inc.

    59,800      3,400

Progress Energy, Inc.

    100,100      3,787
         
        14,739
         

Electrical Components & Equipment - 0.3%

      

Molex, Inc.

    48,000      746

Molex, Inc., Class A

    60,000      863
         
        1,609
         

Electronics - 0.4%

      

Gentex Corp.

    155,000      1,798
         

Energy - Alternate Sources - 0.3%

      

First Solar, Inc.*

    8,580      1,391
         

 

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 94.2% continued

      

Entertainment - 0.0%

      

Warner Music Group Corp.*

    8,300    $ 49
         

Environmental Control - 0.8%

      

Waste Management, Inc.

    135,600      3,819
         

Food - 6.3%

      

Cadbury PLC ADR

    29,200      1,005

ConAgra Foods, Inc.

    172,000      3,278

Heinz (H.J.) Co.

    108,000      3,856

Hershey (The) Co.

    88,000      3,168

Kellogg Co.

    70,000      3,260

Kraft Foods, Inc., Class A

    145,100      3,677

Safeway, Inc.

    316,562      6,448

Sysco Corp.

    64,730      1,455

Unilever N.V. (New York Shares)

    105,000      2,539
         
        28,686
         

Healthcare - Products - 3.4%

      

Alcon, Inc.

    19,100      2,218

Baxter International, Inc.

    131,600      6,970

Hospira, Inc.*

    66,500      2,562

Johnson & Johnson

    66,400      3,771
         
        15,521
         

Healthcare - Services - 1.4%

      

Quest Diagnostics, Inc.

    74,700      4,215

Universal Health Services, Inc., Class B

    41,000      2,003
         
        6,218
         

Household Products/Wares - 0.8%

      

Kimberly-Clark Corp.

    69,600      3,649
         

Insurance - 2.2%

      

Aflac, Inc.

    70,000      2,176

Allstate (The) Corp.

    153,500      3,746

Travelers Cos. (The), Inc.

    95,200      3,907
         
        9,829
         

Internet - 3.2%

      

Amazon.com, Inc.*

    42,400      3,547

Baidu, Inc. ADR*

    3,500      1,054

Google, Inc., Class A*

    23,680      9,983
         
        14,584
         

Machinery - Diversified - 0.6%

      

Deere & Co.

    68,500      2,737
         

Media - 0.5%

      

DIRECTV Group (The), Inc.*

    22,518      557

Disney (The Walt) Co.

    73,000      1,703
         
        2,260
         

Mining - 0.4%

      

BHP Billiton PLC ADR

    42,900      1,950
         

Office/Business Equipment - 0.8%

      

Xerox Corp.

    540,600      3,503
         

Oil & Gas - 6.8%

      

Chevron Corp.

    56,200      3,723

ConocoPhillips

    164,100      6,902

EOG Resources, Inc.

    4,818      327

Marathon Oil Corp.

    125,600      3,784

Occidental Petroleum Corp.

    26,200      1,724

Petroleo Brasileiro S.A. ADR

    107,544      4,407

Questar Corp.

    74,500      2,314

Southwestern Energy Co.*

    40,400      1,570

Suncor Energy, Inc.

    20,600      625

Transocean Ltd.*

    53,060      3,942

XTO Energy, Inc.

    39,614      1,511
         
        30,829
         

Oil & Gas Services - 1.4%

      

National-Oilwell Varco, Inc.*

    30,961      1,011

Schlumberger Ltd.

    16,000      866

Weatherford International Ltd.*

    236,600      4,628
         
        6,505
         

Pharmaceuticals - 7.2%

      

Abbott Laboratories

    58,967      2,774

Bristol-Myers Squibb Co.

    184,300      3,743

Cardinal Health, Inc.

    121,800      3,721

Lilly (Eli) & Co.

    82,500      2,858

Medco Health Solutions, Inc.*

    44,500      2,030

Merck & Co., Inc.

    143,400      4,009

Mylan, Inc.*

    50,800      663

Pfizer, Inc.

    253,200      3,798

Roche Holding A.G. ADR

    57,300      1,954

Shire PLC ADR

    20,390      846

Teva Pharmaceutical Industries Ltd. ADR

    61,100      3,015

Wyeth

    73,100      3,318
         
        32,729
         

Retail - 8.4%

      

Advance Auto Parts, Inc.

    24,761      1,027

Chipotle Mexican Grill, Inc., Class B*

    7,648      534

Costco Wholesale Corp.

    95,211      4,351

 

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)		  

COMMON STOCKS - 94.2% continued

      

Retail - 8.4% continued

      

CVS Caremark Corp.

      239,921    $ 7,646   

Gap (The), Inc.

      227,000      3,723   

Home Depot (The), Inc.

      134,000      3,167   

Kohl’s Corp.*

      9,900      423   

Lowe’s Cos., Inc.

      113,777      2,208   

McDonald’s Corp.

      94,713      5,445   

Penney (J.C.) Co., Inc.

      85,000      2,440   

Staples, Inc.

      65,892      1,329   

Starbucks Corp.*

      30,500      424   

Wal-Mart Stores, Inc.

      58,319      2,825   

Yum! Brands, Inc.

      84,600      2,821   
           
        38,363   
           

Semiconductors - 2.4%

      

Analog Devices, Inc.

      27,600      684   

Applied Materials, Inc.

      102,800      1,128   

Intel Corp.

      363,210      6,011   

Taiwan Semiconductor Manufacturing Co. Ltd. ADR

      87,363      822   

Texas Instruments, Inc.

      112,000      2,385   
           
        11,030   
           

Software - 3.4%

      

Adobe Systems, Inc.*

      227,212      6,430   

Microsoft Corp.

      76,800      1,825   

Oracle Corp.

      284,200      6,088   

Salesforce.com, Inc.*

      10,000      382   

SAP A.G. ADR

      22,900      920   
           
        15,645   
           

Telecommunications - 5.4%

      

AT&T, Inc.

      149,400      3,711   

Cisco Systems, Inc.*

      142,100      2,649   

Juniper Networks, Inc.*

      20,628      487   

Motorola, Inc.

      448,900      2,976   

QUALCOMM, Inc.

      173,765      7,854   

Verizon Communications, Inc.

      123,500      3,795   

Vodafone Group PLC ADR

      156,500      3,050   
           
        24,522   
           

Toys, Games & Hobbies - 0.8%

      

Mattel, Inc.

      228,300      3,664   
           

Transportation - 1.2%

      

Norfolk Southern Corp.

      41,365      1,558   

Union Pacific Corp.

      74,307      3,869   
           
        5,427   
           

Total Common Stocks

      
           

(Cost $445,050)

         429,426   

CONVERTIBLE PREFERRED STOCKS - 0.0%

      

Banks - 0.0%

      

East West Bancorp, Inc.*

      268      156   
           

Total Convertible Preferred Stocks

      
           

(Cost $268)

         156   

PREFERRED STOCKS - 0.2%

      

Banks - 0.2%

      

Wells Fargo & Co. (Depository Shares)*

      34,675      773   
           

Total Preferred Stocks

      
           

(Cost $575)

         773   

INVESTMENT COMPANIES - 5.4%

      

Northern Institutional Funds - Diversified Assets Portfolio (1) (2)

      24,541,045      24,541   
           

Total Investment Companies

      
           

(Cost $24,541)

         24,541   
     PRINCIPAL
AMOUNT
(000S)		       

SHORT-TERM INVESTMENTS - 1.7%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 5,156      5,156   

U.S. Treasury Bill,

     

0.27%, 11/19/09(3)

     2,715      2,712   

Total Short-Term Investments

      
           

(Cost $7,868)

         7,868   
           

Total Investments - 101.5%

      
           

(Cost $478,302)

         462,764   

Liabilities less Other Assets - (1.5)%

         (6,617 ) 
           

NET ASSETS - 100.0%

       $ 456,147   

 

(1) At March 31, 2009, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $35,425,000 with net sales of approximately $10,884,000 during the period ended June 30, 2009.

 

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER LARGE CAP FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

(2) Investment in affiliated fund. Northern Trust Investments, N.A. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.
(3) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Multi-Manager Large Cap Fund had open futures contracts as follows:

 

TYPE

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

S&P 500

    34    $ 7,782    Long    9/09    $ 69
                  

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 478,302   
        

Gross tax appreciation of investments

    $ 22,755   

Gross tax depreciation of investments

      (38,293 ) 
        

Net tax depreciation of investments

    $ (15,538 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Large Cap Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 429,426 (1)    $ —        $ —      $ 429,426

Convertible Preferred Stocks

      —          156 (1)      —        156

Preferred Stocks

      773 (1)      —          —        773

Investment Companies

      24,541        —          —        24,541

Short-Term Investments

      —          7,868        —        7,868
                             

Total Investments

    $ 454,740      $ 8,024      $ —      $ 462,764
                             

Other Financial Instruments*

    $ 69      $ —        $ —      $ 69
                             

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7%

      

Aerospace/Defense - 1.6%

      

Aerovironment, Inc.*

    42,600    $ 1,315

Goodrich Corp.

    30,400      1,519

L-3 Communications Holdings, Inc.

    57,840      4,013

Spirit Aerosystems Holdings, Inc., Class A*

    138,000      1,896
         
        8,743
         

Agriculture - 0.8%

      

Archer-Daniels-Midland Co.

    71,100      1,904

Bunge Ltd.

    18,100      1,091

Lorillard, Inc.

    20,900      1,416
         
        4,411
         

Airlines - 0.2%

      

Skywest, Inc.

    82,100      837
         

Apparel - 0.9%

      

Coach, Inc.

    37,160      999

Jones Apparel Group, Inc.

    42,900      460

Warnaco Group (The), Inc.*

    99,300      3,217
         
        4,676
         

Banks - 2.8%

      

Banco Latinoamericano de Exportaciones S.A., Class E

    42,000      522

BB&T Corp.

    63,900      1,405

Comerica, Inc.

    30,800      652

Huntington Bancshares, Inc. of Ohio

    197,200      824

KeyCorp

    43,200      226

Morgan Stanley

    49,400      1,408

Park National Corp.

    3,600      203

Prosperity Bancshares, Inc.

    68,400      2,040

Regions Financial Corp.

    111,000      449

Signature Bank of New York*

    80,348      2,179

State Street Corp.

    108,900      5,140
         
        15,048
         

Beverages - 1.9%

      

Coca-Cola Enterprises, Inc.

    87,900      1,463

Dr Pepper Snapple Group, Inc.*

    113,600      2,407

Hansen Natural Corp.*

    48,977      1,509

Molson Coors Brewing Co., Class B

    44,950      1,903

Pepsi Bottling Group, Inc.

    60,600      2,051

PepsiAmericas, Inc.

    37,400      1,003
         
        10,336
         

Biotechnology - 1.5%

      

Genzyme Corp.*

    36,800      2,049

InterMune, Inc.*

    41,700      634

Life Technologies Corp.*

    89,800      3,746

Vertex Pharmaceuticals, Inc.*

    48,200      1,718
         
        8,147
         

Chemicals - 1.8%

      

Celanese Corp., Class A

    141,200      3,354

Lubrizol Corp.

    47,800      2,261

NewMarket Corp.

    18,300      1,232

PolyOne Corp.*

    112,700      305

PPG Industries, Inc.

    22,800      1,001

RPM International, Inc.

    12,000      169

Schulman (A.), Inc.

    30,200      456

Sigma-Aldrich Corp.

    20,375      1,010
         
        9,788
         

Coal - 0.4%

      

Walter Energy, Inc.

    51,400      1,863
         

Commercial Services - 4.6%

      

Advance America Cash Advance Centers, Inc.

    116,100      514

Alliance Data Systems Corp.*

    42,800      1,763

Capella Education Co.*

    28,400      1,703

Convergys Corp.*

    203,200      1,886

Donnelley (R.R.) & Sons Co.

    64,900      754

FTI Consulting, Inc.*

    20,045      1,017

Global Payments, Inc.

    54,030      2,024

K12, Inc.*

    109,800      2,366

Manpower, Inc.

    15,545      658

Morningstar, Inc.*

    32,320      1,333

Quanta Services, Inc.*

    109,700      2,537

Resources Connection, Inc.*

    104,700      1,798

Strayer Education, Inc.

    28,675      6,254

United Rentals, Inc.*

    11,720      76
         
        24,683
         

Computers - 3.5%

      

Cognizant Technology Solutions Corp., Class A*

    89,285      2,384

Computer Sciences Corp.*

    48,300      2,140

IHS, Inc., Class A*

    36,725      1,831

Lexmark International, Inc., Class A*

    50,800      805

Micros Systems, Inc.*

    80,540      2,039

NCR Corp.*

    105,800      1,252

Research In Motion Ltd.*

    33,800      2,402

Seagate Technology

    108,000      1,130

Sun Microsystems, Inc.*

    62,500      576

 

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Computers - 3.5% continued

      

Synopsys, Inc.*

    44,200    $ 862

Western Digital Corp.*

    115,500      3,061
         
        18,482
         

Cosmetics/Personal Care - 0.2%

      

Alberto-Culver Co.

    37,815      962
         

Distribution/Wholesale - 1.3%

      

Fastenal Co.

    61,950      2,055

Ingram Micro, Inc., Class A*

    99,700      1,745

LKQ Corp.*

    207,125      3,407
         
        7,207
         

Diversified Financial Services - 2.5%

      

Affiliated Managers Group, Inc.*

    20,270      1,180

AmeriCredit Corp.*

    41,200      558

Ameriprise Financial, Inc.

    38,300      930

CIT Group, Inc.

    59,100      127

Eaton Vance Corp.

    30,725      822

Financial Federal Corp.

    10,800      222

IntercontinentalExchange, Inc.*

    16,600      1,896

Invesco Ltd.

    198,030      3,529

Price (T. Rowe) Group, Inc.

    27,800      1,158

Raymond James Financial, Inc.

    44,200      761

Stifel Financial Corp.*

    42,800      2,058
         
        13,241
         

Electric - 5.3%

      

AES (The) Corp.*

    271,400      3,151

Alliant Energy Corp.

    58,900      1,539

Ameren Corp.

    34,800      866

American Electric Power Co., Inc.

    25,100      725

CMS Energy Corp.

    441,200      5,330

DTE Energy Co.

    49,900      1,597

Hawaiian Electric Industries, Inc.

    61,200      1,166

Mirant Corp.*

    97,500      1,535

Northeast Utilities

    117,900      2,630

NorthWestern Corp.

    40,400      919

NRG Energy, Inc.*

    58,000      1,506

NV Energy, Inc.

    181,400      1,957

Pepco Holdings, Inc.

    45,300      609

Pinnacle West Capital Corp.

    28,400      856

SCANA Corp.

    33,000      1,072

Xcel Energy, Inc.

    163,500      3,010
         
        28,468
         

Electrical Components & Equipment - 1.1%

      

AMETEK, Inc.

    43,180      1,493

General Cable Corp.*

    100,750      3,786

Hubbell, Inc., Class B

    19,600      629
         
        5,908
         

Electronics - 1.5%

      

Amphenol Corp., Class A

    69,960      2,213

Benchmark Electronics, Inc.*

    48,000      691

FLIR Systems, Inc.*

    74,990      1,692

Sanmina-SCI Corp.*

    58,200      26

Technitrol, Inc.

    33,600      217

Thomas & Betts Corp.*

    32,300      932

Trimble Navigation Ltd.*

    76,095      1,494

Vishay Intertechnology, Inc.*

    76,700      521
         
        7,786
         

Engineering & Construction - 0.9%

      

Fluor Corp.

    46,550      2,387

Foster Wheeler A.G.*

    43,700      1,038

Shaw Group (The), Inc.*

    42,200      1,157
         
        4,582
         

Entertainment - 0.2%

      

DreamWorks Animation SKG, Inc., Class A*

    33,900      935
         

Environmental Control - 1.0%

      

Clean Harbors, Inc.*

    48,000      2,592

Stericycle, Inc.*

    48,945      2,522
         
        5,114
         

Food - 2.4%

      

Cal-Maine Foods, Inc.

    23,800      594

ConAgra Foods, Inc.

    88,200      1,681

Dean Foods Co.*

    69,400      1,332

Del Monte Foods Co.

    86,864      815

Flowers Foods, Inc.

    87,565      1,912

Fresh Del Monte Produce, Inc.*

    29,300      476

Kroger (The) Co.

    85,100      1,877

Safeway, Inc.

    99,700      2,031

Sara Lee Corp.

    128,100      1,250

Seaboard Corp.

    191      214

SUPERVALU, Inc.

    67,800      878
         
        13,060
         

Gas - 0.8%

      

AGL Resources, Inc.

    21,900      696

Centerpoint Energy, Inc.

    50,400      559

 

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Gas - 0.8% continued

      

Sempra Energy

    38,600    $ 1,916

Southern Union Co.

    62,600      1,151
         
        4,322
         

Hand/Machine Tools - 0.8%

      

Black & Decker Corp.

    29,500      846

Lincoln Electric Holdings, Inc.

    37,385      1,347

Snap-On, Inc.

    74,600      2,144
         
        4,337
         

Healthcare - Products - 3.3%

      

Bard (C.R.), Inc.

    25,575      1,904

Dentsply International, Inc.

    70,500      2,152

Hill-Rom Holdings, Inc.

    11,100      180

IDEXX Laboratories, Inc.*

    48,160      2,225

Intuitive Surgical, Inc.*

    17,600      2,880

Kinetic Concepts, Inc.*

    71,900      1,959

Masimo Corp.*

    48,800      1,177

ResMed, Inc.*

    49,405      2,012

Thoratec Corp.*

    46,400      1,243

Varian Medical Systems, Inc.*

    57,175      2,009
         
        17,741
         

Healthcare - Services - 1.2%

      

CIGNA Corp.

    33,300      802

Covance, Inc.*

    37,540      1,847

Coventry Health Care, Inc.*

    55,400      1,037

Health Management Associates, Inc., Class A*

    227,200      1,122

Lincare Holdings, Inc.*

    26,200      616

Universal Health Services, Inc., Class B

    17,300      845
         
        6,269
         

Home Furnishings - 0.5%

      

Ethan Allen Interiors, Inc.

    36,600      379

Whirlpool Corp.

    55,300      2,354
         
        2,733
         

Household Products/Wares - 0.9%

      

American Greetings Corp., Class A

    31,900      373

Blyth, Inc.

    12,175      399

Church & Dwight, Inc.

    38,130      2,071

Clorox Co.

    20,000      1,117

Fortune Brands, Inc.

    28,500      990

Jarden Corp.*

    1,679      31
         
        4,981
         

Housewares - 0.2%

      

Newell Rubbermaid, Inc.

    101,500      1,057
         

Insurance - 6.6%

      

ACE Ltd.

    46,400      2,052

Aflac, Inc.

    30,500      948

Alleghany Corp.*

    9,200      2,493

Allied World Assurance Co. Holdings Ltd.

    11,890      486

Allstate (The) Corp.

    55,200      1,347

American Financial Group, Inc. of Ohio

    57,553      1,242

Arch Capital Group Ltd.*

    62,700      3,673

Aspen Insurance Holdings Ltd.

    60,200      1,345

Assurant, Inc.

    11,300      272

Chubb Corp.

    38,900      1,551

Cincinnati Financial Corp.

    30,200      675

eHealth, Inc.*

    100,500      1,775

Endurance Specialty Holdings Ltd.

    53,153      1,557

Everest Re Group Ltd.

    23,100      1,653

Genworth Financial, Inc., Class A

    35,900      251

IPC Holdings Ltd.

    42,100      1,151

Lincoln National Corp.

    14,400      248

Montpelier Re Holdings Ltd.

    33,200      441

PartnerRe Ltd.

    17,900      1,163

Presidential Life Corp.

    44,400      336

Prudential Financial, Inc.

    72,675      2,705

Tower Group, Inc.

    71,500      1,772

Unum Group

    313,400      4,971

W.R. Berkley Corp.

    25,200      541

White Mountains Insurance Group Ltd.

    900      206

XL Capital Ltd., Class A

    22,700      260
         
        35,114
         

Internet - 2.5%

      

Baidu, Inc. ADR*

    13,900      4,185

Ctrip.com International Ltd. ADR*

    60,300      2,792

eBay, Inc.*

    63,200      1,083

McAfee, Inc.*

    64,810      2,734

MercadoLibre, Inc.*

    92,056      2,474
         
        13,268
         

Investment Companies - 0.0%

      

Allied Capital Corp.

    31,500      110
         

Iron/Steel - 0.1%

      

Carpenter Technology Corp.

    29,500      614
         

Leisure Time - 0.6%

      

Brunswick Corp.

    50,300      217

 

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Leisure Time - 0.6% continued

      

Harley-Davidson, Inc.

    76,500    $ 1,240

Polaris Industries, Inc.

    32,600      1,047

Royal Caribbean Cruises Ltd.

    66,050      895
         
        3,399
         

Lodging - 0.2%

      

Wyndham Worldwide Corp.

    83,900      1,017
         

Machinery - Construction & Mining - 0.1%

      

Terex Corp.*

    26,200      316
         

Machinery - Diversified - 1.4%

      

Flowserve Corp.

    26,010      1,816

IDEX Corp.

    51,455      1,264

Rockwell Automation, Inc.

    65,100      2,091

Roper Industries, Inc.

    49,910      2,261
         
        7,432
         

Media - 1.6%

      

Belo Corp., Class A

    43,800      79

DISH Network Corp., Class A*

    47,700      773

FactSet Research Systems, Inc.

    25,835      1,289

Gannett Co., Inc.

    27,800      99

McGraw-Hill Cos. (The), Inc.

    71,250      2,145

Meredith Corp.

    30,300      774

Shaw Communications, Inc., Class B

    153,500      2,588

Time Warner Cable, Inc.

    29,300      928
         
        8,675
         

Metal Fabrication/Hardware - 0.2%

      

Mueller Industries, Inc.

    22,400      466

Timken (The) Co.

    37,700      644
         
        1,110
         

Mining - 1.0%

      

Freeport-McMoRan Copper & Gold, Inc.

    52,000      2,606

Thompson Creek Metals Co., Inc.*

    263,100      2,689
         
        5,295
         

Miscellaneous Manufacturing - 2.4%

      

Cooper Industries Ltd., Class A

    79,950      2,482

Crane Co.

    80,700      1,800

Donaldson Co., Inc.

    46,615      1,615

EnPro Industries, Inc.*

    27,300      492

Parker Hannifin Corp.

    34,300      1,474

SPX Corp.

    64,400      3,154

Tyco International Ltd.

    69,100      1,795
         
        12,812
         

Networking Products - 0.0%

      

Logmein, Inc.

    9,400      150
         

Office/Business Equipment - 0.3%

      

Xerox Corp.

    238,200      1,543
         

Oil & Gas - 4.7%

      

Berry Petroleum Co., Class A

    53,100      987

Bill Barrett Corp.*

    79,600      2,186

Contango Oil & Gas Co.*

    15,543      660

Frontier Oil Corp.

    30,600      401

Holly Corp.

    26,500      477

Newfield Exploration Co.*

    40,850      1,335

Noble Corp.

    120,050      3,632

Noble Energy, Inc.

    18,100      1,067

Patterson-UTI Energy, Inc.

    49,200      633

Plains Exploration & Production Co.*

    71,800      1,964

Southwestern Energy Co.*

    69,840      2,713

Sunoco, Inc.

    67,300      1,561

Tesoro Corp.

    51,800      659

Ultra Petroleum Corp.*

    25,100      979

Valero Energy Corp.

    46,200      780

Whiting Petroleum Corp.*

    85,550      3,008

XTO Energy, Inc.

    58,430      2,229
         
        25,271
         

Oil & Gas Services - 2.7%

      

Core Laboratories N.V.

    25,500      2,222

FMC Technologies, Inc.*

    50,685      1,905

Hornbeck Offshore Services, Inc.*

    57,600      1,232

National-Oilwell Varco, Inc.*

    61,700      2,015

Oceaneering International, Inc.*

    54,000      2,441

SEACOR Holdings, Inc.*

    11,500      865

Smith International, Inc.

    136,970      3,527
         
        14,207
         

Packaging & Containers - 0.9%

      

Crown Holdings, Inc.*

    58,500      1,412

Owens-Illinois, Inc.*

    30,000      840

Sonoco Products Co.

    21,700      520

Temple-Inland, Inc.

    159,300      2,090
         
        4,862
         

Pharmaceuticals - 3.6%

      

AmerisourceBergen Corp.

    108,000      1,916

Endo Pharmaceuticals Holdings, Inc.*

    54,400      975

Forest Laboratories, Inc.*

    92,400      2,320

Herbalife Ltd.

    41,500      1,309

 

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Pharmaceuticals - 3.6% continued

      

Isis Pharmaceuticals, Inc.*

    55,500    $ 916

King Pharmaceuticals, Inc.*

    78,200      753

Medicis Pharmaceutical Corp., Class A

    11,300      184

Medivation, Inc.*

    24,200      542

Mylan, Inc.*

    352,800      4,604

Omnicare, Inc.

    133,100      3,429

Watson Pharmaceuticals, Inc.*

    54,600      1,839

XenoPort, Inc.*

    21,400      496
         
        19,283
         

Pipelines - 0.7%

      

El Paso Corp.

    131,600      1,215

Spectra Energy Corp.

    135,000      2,284
         
        3,499
         

Real Estate Investment Trusts - 2.8%

      

Annaly Capital Management, Inc.

    54,100      819

Boston Properties, Inc.

    16,200      773

Capstead Mortgage Corp.

    45,100      573

Digital Realty Trust, Inc.

    83,200      2,983

FelCor Lodging Trust, Inc.

    26,600      65

Health Care REIT, Inc.

    82,200      2,803

Hospitality Properties Trust

    79,800      949

Host Hotels & Resorts, Inc.

    80,000      671

HRPT Properties Trust

    196,800      799

Medical Properties Trust, Inc.

    108,500      658

National Retail Properties, Inc.

    67,850      1,177

Parkway Properties, Inc. of Maryland

    21,200      276

RAIT Financial Trust

    24,700      34

Simon Property Group, Inc.

    36,337      1,869

Sunstone Hotel Investors, Inc.

    81,476      436

Walter Investment Management Corp.*

    8,436      112
         
        14,997
         

Retail - 5.1%

      

AutoNation, Inc.*

    43,200      750

Best Buy Co., Inc.

    66,050      2,212

Bob Evans Farms, Inc.

    22,700      652

Brinker International, Inc.

    73,700      1,255

Cabela’s, Inc.*

    33,000      406

Chipotle Mexican Grill, Inc., Class B*

    18,700      1,305

Copart, Inc.*

    29,605      1,026

Darden Restaurants, Inc.

    42,300      1,395

Dick’s Sporting Goods, Inc.*

    111,370      1,916

Foot Locker, Inc.

    142,100      1,488

Gap (The), Inc.

    133,200      2,184

Kohl’s Corp.*

    73,650      3,149

O’Reilly Automotive, Inc.*

    72,770      2,771

Panera Bread Co., Class A*

    46,615      2,324

RadioShack Corp.

    150,500      2,101

Ruby Tuesday, Inc.*

    71,600      477

Tractor Supply Co.*

    48,470      2,003
         
        27,414
         

Savings & Loans - 1.3%

      

First Niagara Financial Group, Inc.

    232,900      2,660

Hudson City Bancorp, Inc.

    250,900      3,334

People’s United Financial, Inc.

    71,700      1,078
         
        7,072
         

Semiconductors - 1.1%

      

Analog Devices, Inc.

    40,700      1,009

Cavium Networks, Inc.*

    93,705      1,575

Marvell Technology Group Ltd.*

    172,000      2,002

MKS Instruments, Inc.*

    408      5

Semtech Corp.*

    46,600      741

Skyworks Solutions, Inc.*

    79,800      781
         
        6,113
         

Software - 5.6%

      

Adobe Systems, Inc.*

    67,925      1,922

ANSYS, Inc.*

    133,770      4,168

Cerner Corp.*

    44,610      2,779

Check Point Software Technologies*

    36,600      859

Citrix Systems, Inc.*

    81,370      2,595

Concur Technologies, Inc.*

    38,600      1,200

Electronic Arts, Inc.*

    64,400      1,399

Fiserv, Inc.*

    47,980      2,193

Informatica Corp.*

    92,700      1,593

Intuit, Inc.*

    80,040      2,254

MSCI, Inc. Class A*

    54,946      1,343

Nuance Communications, Inc.*

    84,800      1,025

Salesforce.com, Inc.*

    58,700      2,241

Solera Holdings, Inc.*

    80,050      2,033

VMware, Inc., Class A*

    86,102      2,348
         
        29,952
         

Telecommunications - 3.3%

      

3Com Corp.*

    217,300      1,024

Amdocs Ltd.*

    83,005      1,780

CenturyTel, Inc.

    21,900      672

Cincinnati Bell, Inc.*

    321,600      913

Clearwire Corp., Class A*

    274,600      1,519

 

MULTI-MANAGER FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 95.7% continued

      

Telecommunications - 3.3% continued

      

Embarq Corp.

    16,700    $ 702

Harris Corp.

    32,200      913

Harris Stratex Networks, Inc., Class A*

    7,999      52

Infinera Corp.*

    165,454      1,511

NII Holdings, Inc.*

    62,400      1,190

NTELOS Holdings Corp.

    212,300      3,911

Qwest Communications International, Inc.

    370,200      1,536

Tellabs, Inc.*

    247,100      1,416

USA Mobility, Inc.

    41,200      526
         
        17,665
         

Toys, Games & Hobbies - 0.2%

      

Hasbro, Inc.

    44,000      1,067
         

Transportation - 2.6%

      

C.H. Robinson Worldwide, Inc.

    76,050      3,966

Expeditors International of Washington, Inc.

    122,465      4,083

Kansas City Southern*

    56,400      909

Kirby Corp.*

    41,800      1,329

Overseas Shipholding Group, Inc.

    49,700      1,692

Pacer International, Inc.

    48,800      109

Ryder System, Inc.

    25,200      703

Tidewater, Inc.

    30,700      1,316
         
        14,107
         

Total Common Stocks

      
         

(Cost $554,483)

         512,081

INVESTMENT COMPANIES - 1.7%

      

Northern Institutional Funds - Diversified Assets Portfolio (1) (2)

    8,972,862      8,973
         

Total Investment Companies

      
         

(Cost $8,973)

         8,973

 

     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 2.4%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 11,071      11,071

U.S. Treasury Bill,

      

0.28%, 11/19/09(3)

     2,020      2,018
         

Total Short-Term Investments

      
         

(Cost $13,089)

         13,089
         

Total Investments - 99.8%

      
         

(Cost $576,545)

         534,143

Other Assets less Liabilities - 0.2%

         895
         

NET ASSETS - 100.0%

       $ 535,038

 

(1) Investment in affiliated fund. Northern Trust Investments, N.A. is an investment adviser of the Portfolio and the investment adviser to other Northern Institutional Funds and to the Northern Funds.
(2) At March 31, 2009, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $12,524,000 with net sales of approximately $3,552,000 during the period ended June 30, 2009.
(3) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2009, the Multi-Manager Mid Cap Fund had open futures contracts as follows:

 

TYPE

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

S&P Midcap

               

400 E-mini

    225    $ 12,976    Long    9/09    $ 241
                  

Federal Tax Information:

At June 30, 2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 576,545   
        

Gross tax appreciation of investments

    $ 40,223   

Gross tax depreciation of investments

      (82,626 ) 
        

Net tax depreciation of investments

    $ (42,403 ) 
        

 

NORTHERN FUNDS QUARTERLY REPORT    6    MULTI-MANAGER FUNDS

JUNE 30, 2009 (UNAUDITED)

 

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Mid Cap Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

    $ 512,081 (1)    $ —      $ —      $ 512,081

Investment Companies

      8,973        —        —        8,973

Short-Term Investments

      —          13,089      —        13,089
                            

Total Investments

    $ 521,054      $ 13,089    $ —      $ 534,143
                            

Other Financial Instruments*

    $ 241      $ —      $ —      $ 241
                            

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

NORTHERN FUNDS QUARTERLY REPORT    7    MULTI-MANAGER FUNDS

     SCHEDULE OF INVESTMENTS
MULTI-MANAGER SMALL CAP FUND    JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 93.6%

      

Aerospace/Defense - 1.3%

      

AAR Corp.*

    99,200    $ 1,592

TransDigm Group, Inc.*

    78,555      2,844
         
        4,436
         

Airlines - 0.2%

      

Skywest, Inc.

    62,200      634
         

Apparel - 0.3%

      

Volcom, Inc.*

    74,000      925
         

Auto Parts & Equipment - 0.2%

      

ATC Technology Corp.*

    56,500      819
         

Banks - 5.1%

      

Banco Latinoamericano de Exportaciones S.A., Class E

    38,795      482

Bank of the Ozarks, Inc.

    55,000      1,190

Boston Private Financial Holdings, Inc.

    232,200      1,040

Cathay General Bancorp

    105,000      999

CVB Financial Corp.

    175,000      1,045

First Financial Bancorp

    129,400      973

First Financial Bankshares, Inc.

    14,900      750

First Merchants Corp.

    57,500      462

International Bancshares Corp.

    112,500      1,160

Prosperity Bancshares, Inc.

    40,800      1,217

Republic Bancorp, Inc., Class A

    29,600      669

S & T Bancorp, Inc.

    27,000      328

Signature Bank of New York*

    62,993      1,708

Sterling Bancorp of New York

    60,980      509

Synovus Financial Corp.

    164,500      492

Tompkins Financial Corp.

    12,300      590

Trico Bancshares

    37,700      584

UMB Financial Corp.

    11,600      441

United Bankshares, Inc.

    40,100      784

Zions Bancorporation

    142,500      1,647
         
        17,070
         

Beverages - 0.6%

      

Green Mountain Coffee Roasters, Inc.*

    31,156      1,842
         

Biotechnology - 2.7%

      

Acorda Therapeutics, Inc.*

    36,099      1,017

Alexion Pharmaceuticals, Inc.*

    20,793      855

Bio-Rad Laboratories, Inc., Class A*

    16,000      1,208

Dendreon Corp.*

    56,458      1,403

Illumina, Inc.*

    49,213      1,916

Life Technologies Corp.*

    30,649      1,279

Vertex Pharmaceuticals, Inc.*

    38,099      1,358
         
        9,036
         

Building Materials - 0.7%

      

Comfort Systems USA, Inc.

    149,900      1,537

Gibraltar Industries, Inc.

    130,000      893
         
        2,430
         

Chemicals - 1.2%

      

Lubrizol Corp.

    22,795      1,078

Minerals Technologies, Inc.

    6,400      231

PolyOne Corp.*

    428,600      1,161

Schulman (A.), Inc.

    90,600      1,369
         
        3,839
         

Commercial Services - 8.6%

      

Alliance Data Systems Corp.*

    18,759      773

AMN Healthcare Services, Inc.*

    165,500      1,056

Bridgepoint Education, Inc.*

    62,380      1,060

Capella Education Co.*

    35,790      2,146

Chemed Corp.

    31,500      1,244

Deluxe Corp.

    62,300      798

DeVry, Inc.

    17,428      872

Emergency Medical Services Corp., Class A*

    36,500      1,344

Euronet Worldwide, Inc.*

    39,460      765

Huron Consulting Group, Inc.*

    57,584      2,662

ICF International, Inc.*

    40,820      1,126

ICT Group, Inc.*

    94,036      821

K12, Inc.*

    66,055      1,423

Monster Worldwide, Inc.*

    187,547      2,215

Morningstar, Inc.*

    32,610      1,345

New Oriental Education & Technology Group ADR*

    4,767      321

PHH Corp.*

    58,800      1,069

Resources Connection, Inc.*

    72,000      1,236

Ritchie Bros. Auctioneers

    31,200      732

SAIC, Inc.*

    45,486      844

SEI Investments Co.

    85,218      1,537

VistaPrint Ltd.*

    67,628      2,884

WNS Holdings Ltd. ADR*

    54,381      483
         
        28,756
         

Computers - 2.9%

      

Agilysys, Inc.

    160,400      751

CACI International, Inc., Class A*

    64,490      2,754

CIBER, Inc.*

    373,225      1,157

 

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 93.6% continued

      

Computers - 2.9% continued

      

Cognizant Technology Solutions Corp., Class A*

    56,153    $ 1,499

Electronics for Imaging, Inc.*

    172,500      1,839

Synaptics, Inc.*

    20,371      787

Unisys Corp.*

    474,000      716
         
        9,503
         

Cosmetics/Personal Care - 0.1%

      

Inter Parfums, Inc.

    56,853      417
         

Distribution/Wholesale - 1.6%

      

Huttig Building Products, Inc.*

    86,500      81

Owens & Minor, Inc.

    28,600      1,253

School Specialty, Inc.*

    111,300      2,250

United Stationers, Inc.*

    46,500      1,622
         
        5,206
         

Diversified Financial Services - 3.3%

      

Affiliated Managers Group, Inc.*

    44,991      2,618

BGC Partners, Inc., Class A

    106,759      405

Greenhill & Co., Inc.

    29,368      2,121

IntercontinentalExchange, Inc.*

    6,421      734

MF Global Ltd.*

    297,503      1,764

National Financial Partners Corp.

    112,186      821

Portfolio Recovery Associates, Inc.*

    36,050      1,396

World Acceptance Corp.*

    61,300      1,220
         
        11,079
         

Electric - 2.1%

      

Black Hills Corp.

    51,900      1,193

CH Energy Group, Inc.

    22,500      1,051

El Paso Electric Co.*

    68,000      949

NorthWestern Corp.

    51,700      1,177

Pike Electric Corp.*

    146,000      1,759

PNM Resources, Inc.

    85,600      917
         
        7,046
         

Electrical Components & Equipment - 1.6%

      

AMETEK, Inc.

    46,000      1,591

Belden, Inc.

    47,600      795

EnerSys*

    54,300      988

GrafTech International Ltd.*

    161,205      1,823
         
        5,197
         

Electronics - 3.2%

      

Benchmark Electronics, Inc.*

    36,100      520

Cymer, Inc.*

    36,273      1,079

Dolby Laboratories, Inc., Class A*

    49,566      1,848

Gentex Corp.

    69,430      805

Imax Corp.*

    157,550      1,279

Itron, Inc.*

    14,762      813

Jabil Circuit, Inc.

    135,300      1,004

Newport Corp.*

    69,300      401

Plexus Corp.*

    68,000      1,391

Technitrol, Inc.

    114,400      740

Watts Water Technologies, Inc., Class A

    33,500      722
         
        10,602
         

Energy - Alternate Sources - 0.3%

      

Covanta Holding Corp.*

    52,036      883
         

Engineering & Construction - 0.4%

      

EMCOR Group, Inc.*

    53,300      1,072

Granite Construction, Inc.

    7,000      233
         
        1,305
         

Entertainment - 1.2%

      

Lions Gate Entertainment Corp.*

    157,110      880

Penn National Gaming, Inc.*

    46,335      1,349

Scientific Games Corp., Class A*

    120,950      1,907
         
        4,136
         

Environmental Control - 0.3%

      

Stericycle, Inc.*

    17,223      888
         

Food - 1.5%

      

Flowers Foods, Inc.

    65,500      1,431

J & J Snack Foods Corp.

    27,600      991

Ralcorp Holdings, Inc.*

    25,000      1,523

Smart Balance, Inc.*

    157,590      1,073
         
        5,018
         

Forest Products & Paper - 0.8%

      

Glatfelter

    117,100      1,042

Neenah Paper, Inc.

    63,000      555

Wausau Paper Corp.

    137,646      925
         
        2,522
         

Hand/Machine Tools - 0.4%

      

Kennametal, Inc.

    67,818      1,301
         

Healthcare - Products - 4.2%

      

American Medical Systems Holdings, Inc.*

    64,280      1,016

CardioNet, Inc.*

    62,220      1,015

Conceptus, Inc.*

    45,552      770

Cooper Cos. (The), Inc.

    31,500      779

Haemonetics Corp. of Massachusetts*

    35,869      2,044

 

MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 93.6% continued

      

Healthcare - Products - 4.2% continued

      

ICU Medical, Inc.*

    25,500    $ 1,049

Inverness Medical Innovations, Inc.*

    26,357      938

Kensey Nash Corp.*

    31,500      826

NuVasive, Inc.*

    47,184      2,104

ResMed, Inc.*

    22,955      935

SurModics, Inc.*

    31,960      723

Thoratec Corp.*

    61,417      1,645
         
        13,844
         

Healthcare - Services - 3.0%

      

Air Methods Corp.*

    37,480      1,026

Amedisys, Inc.*

    26,000      859

Centene Corp.*

    87,956      1,757

Covance, Inc.*

    40,000      1,968

Gentiva Health Services, Inc.*

    38,000      626

Healthways, Inc.*

    64,630      869

Icon PLC ADR*

    49,730      1,073

Psychiatric Solutions, Inc.*

    78,290      1,780
         
        9,958
         

Home Builders - 0.3%

      

Thor Industries, Inc.

    47,900      880
         

Home Furnishings - 0.6%

      

DTS, Inc.*

    69,230      1,874
         

Household Products/Wares - 0.9%

      

American Greetings Corp., Class A

    139,500      1,629

Jarden Corp.*

    80,540      1,510
         
        3,139
         

Insurance - 2.4%

      

Harleysville Group, Inc.

    24,500      691

Hartford Financial Services Group, Inc.

    84,500      1,003

Horace Mann Educators Corp.

    122,500      1,221

Montpelier Re Holdings Ltd.

    40,300      536

National Interstate Corp.

    13,797      209

Platinum Underwriters Holdings Ltd.

    25,400      726

RLI Corp.

    13,300      596

SeaBright Insurance Holdings, Inc.*

    50,300      510

Selective Insurance Group, Inc.

    124,800      1,594

Zenith National Insurance Corp.

    44,700      972
         
        8,058
         

Internet - 2.4%

      

CyberSource Corp.*

    82,500      1,262

DealerTrack Holdings, Inc.*

    116,000      1,972

j2 Global Communications, Inc.*

    54,390      1,227

MercadoLibre, Inc.*

    29,976      806

Priceline.com, Inc.*

    9,190      1,025

United Online, Inc.

    120,890      787

ValueClick, Inc.*

    95,290      1,003
         
        8,082
         

Iron/Steel - 0.2%

      

Olympic Steel, Inc.

    22,600      553
         

Leisure Time - 0.3%

      

WMS Industries, Inc.*

    30,720      968
         

Lodging - 0.4%

      

Choice Hotels International, Inc.

    47,957      1,276
         

Machinery - Construction & Mining - 0.5%

      

Terex Corp.*

    140,814      1,700
         

Machinery - Diversified - 1.0%

      

Alamo Group, Inc.

    81,710      825

IDEX Corp.

    54,889      1,349

Wabtec Corp.

    32,778      1,054
         
        3,228
         

Media - 0.9%

      

Central European Media Enterprises Ltd., Class A*

    52,500      1,033

DG FastChannel, Inc.*

    70,590      1,292

Mediacom Communications Corp., Class A*

    117,576      601
         
        2,926
         

Metal Fabrication/Hardware - 0.2%

      

Mueller Water Products, Inc., Class A

    198,300      742
         

Mining - 0.3%

      

Horsehead Holding Corp.*

    143,580      1,070
         

Miscellaneous Manufacturing - 1.4%

      

Acuity Brands, Inc.

    63,100      1,770

EnPro Industries, Inc.*

    58,100      1,047

Hexcel Corp.*

    110,500      1,053

Matthews International Corp., Class A

    30,020      934
         
        4,804
         

Oil & Gas - 3.2%

      

Arena Resources, Inc.*

    17,030      542

Atwood Oceanics, Inc.*

    35,459      883

Cabot Oil & Gas Corp.

    15,883      487

Carrizo Oil & Gas, Inc.*

    34,920      599

Comstock Resources, Inc.*

    17,070      564

 

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND    continued

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 93.6% continued

      

Oil & Gas - 3.2% continued

      

Concho Resources, Inc.*

    84,024    $ 2,411

Delek US Holdings, Inc.

    90,316      766

Quicksilver Resources, Inc.*

    65,000      604

Rosetta Resources, Inc.*

    188,184      1,646

Western Refining, Inc.*

    164,600      1,162

Whiting Petroleum Corp.*

    27,954      983
         
        10,647
         

Oil & Gas Services - 1.5%

      

Hornbeck Offshore Services, Inc.*

    51,900      1,110

Lufkin Industries, Inc.

    21,700      912

Oceaneering International, Inc.*

    25,000      1,130

Superior Energy Services, Inc.*

    42,189      729

Tetra Technologies, Inc.*

    130,000      1,035
         
        4,916
         

Packaging & Containers - 0.7%

      

Greif, Inc., Class A

    25,086      1,109

Silgan Holdings, Inc.

    27,000      1,324
         
        2,433
         

Pharmaceuticals - 1.0%

      

BioMarin Pharmaceutical, Inc.*

    55,910      873

Catalyst Health Solutions, Inc.*

    50,060      1,248

Cephalon, Inc.*

    14,316      811

Par Pharmaceutical Cos., Inc.*

    28,000      424
         
        3,356
         

Real Estate Investment Trusts - 1.8%

      

Anworth Mortgage Asset Corp.

    105,200      758

Extra Space Storage, Inc.

    95,400      797

Inland Real Estate Corp.

    82,200      575

Pennsylvania Real Estate Investment Trust

    242,500      1,213

PS Business Parks, Inc.

    15,100      731

Ramco-Gershenson Properties Trust

    30,615      306

U-Store-It Trust

    166,500      816

Washington Real Estate Investment Trust

    32,800      734
         
        5,930
         

Retail - 8.3%

      

Aeropostale, Inc.*

    25,242      865

American Eagle Outfitters, Inc.

    58,755      833

Asbury Automotive Group, Inc.

    51,782      530

Bob Evans Farms, Inc.

    47,700      1,371

Borders Group, Inc.*

    491,400      1,808

Buckle (The), Inc.

    33,000      1,048

Buffalo Wild Wings, Inc.*

    13,296      432

Burger King Holdings, Inc.

    92,000      1,589

Cash America International, Inc.

    23,400      547

Copart, Inc.*

    49,400      1,713

Darden Restaurants, Inc.

    19,935      657

Dick’s Sporting Goods, Inc.*

    67,950      1,169

Finish Line (The), Inc., Class A

    91,500      679

Genesco, Inc.*

    33,600      631

Group 1 Automotive, Inc.

    63,500      1,652

Guess?, Inc.

    57,253      1,476

Gymboree Corp.*

    31,500      1,118

Hibbett Sports, Inc.*

    87,040      1,567

Jos. A. Bank Clothiers, Inc.*

    53,860      1,856

Panera Bread Co., Class A*

    19,527      974

Papa John’s International, Inc.*

    43,500      1,078

Pep Boys - Manny, Moe & Jack

    149,000      1,511

Ruby Tuesday, Inc.*

    118,600      790

Stein Mart, Inc.*

    100,000      886

Ulta Salon Cosmetics & Fragrance, Inc.*

    82,260      915
         
        27,695
         

Savings & Loans - 0.2%

      

Flushing Financial Corp.

    52,000      486

Provident New York Bancorp

    30,200      245
         
        731
         

Semiconductors - 3.1%

      

Brooks Automation, Inc.*

    141,600      634

Cavium Networks, Inc.*

    58,380      981

Cypress Semiconductor Corp.*

    113,392      1,043

Entegris, Inc.*

    1,031,000      2,804

Rudolph Technologies, Inc.*

    56,302      311

Silicon Laboratories, Inc.*

    71,242      2,703

Varian Semiconductor Equipment Associates, Inc.*

    54,000      1,296

Xilinx, Inc.

    25,337      519
         
        10,291
         

Software - 7.6%

      

Acxiom Corp.

    76,000      671

Avid Technology, Inc.*

    147,000      1,971

Blackboard, Inc.*

    57,999      1,674

Concur Technologies, Inc.*

    31,690      985

Dun & Bradstreet Corp.

    18,249      1,482

Informatica Corp.*

    50,285      864

Innerworkings, Inc.*

    140,890      669

MedAssets, Inc.*

    86,420      1,681

 

MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2009 (UNAUDITED)

 

     NUMBER
OF SHARES		    VALUE
(000S)

COMMON STOCKS - 93.6% continued

      

Software - 7.6% continued

      

MSC.Software Corp.*

      140,600    $ 936

MSCI, Inc., Class A*

      96,586      2,361

Nuance Communications, Inc.*

      204,510      2,473

Schawk, Inc.

      128,000      961

Solera Holdings, Inc.*

      59,000      1,499

Sybase, Inc.*

      19,192      601

THQ, Inc.*

      303,825      2,175

Ultimate Software Group, Inc.*

      78,090      1,893

VeriFone Holdings, Inc.*

      321,000      2,411
         
        25,307
         

Telecommunications - 3.4%

      

Anixter International, Inc.*

      42,306      1,590

Arris Group, Inc.*

      68,719      836

Atheros Communications, Inc.*

      40,405      777

Black Box Corp.

      32,500      1,088

Cincinnati Bell, Inc.*

      118,100      335

General Communication, Inc., Class A*

      277,700      1,925

Plantronics, Inc.

      41,460      784

Polycom, Inc.*

      113,468      2,300

SBA Communications Corp., Class A*

      65,585      1,609
         
        11,244
         

Toys, Games & Hobbies - 0.4%

      

RC2 Corp.*

      105,500      1,396
         

Transportation - 2.6%

      

Con-way, Inc.

      18,837      665

Forward Air Corp.

      70,500      1,503

Genco Shipping & Trading Ltd.

      26,890      584

HUB Group, Inc., Class A*

      40,352      833

Knight Transportation, Inc.

      111,770      1,850

Landstar System, Inc.

      89,695      3,221
         
        8,656
         

Water - 0.2%

      

California Water Service Group

      18,000      663
         

Total Common Stocks

      
         

(Cost $312,294)

         311,257

CONVERTIBLE PREFERRED STOCKS - 0.2%

      

Banks - 0.2%

      

East West Bancorp, Inc.*

      1,486      864
         

Total Convertible Preferred Stocks

      
         

(Cost $1,486)

         864

INVESTMENT COMPANIES - 2.9%

      

Northern Institutional Funds - Diversified Assets Portfolio (1) (2)

      9,531,423      9,531
         

Total Investment Companies

      
         

(Cost $9,531)

         9,531
     PRINCIPAL
AMOUNT
(000S)		     

SHORT-TERM INVESTMENTS - 2.4%

      

BNP Paribas, Grand Cayman, Eurodollar Time Deposit,

      

0.08%, 7/1/09

    $ 7,046      7,046

U.S. Treasury Bill,

      

0.27%, 11/19/09(3)

     1,035      1,034
         

Total Short-Term Investments

      
         

(Cost $8,080)

         8,080
         

Total Investments - 99.1%

      
         

(Cost $331,391)

         329,732

Other Assets less Liabilities - 0.9%

         2,874
         

NET ASSETS - 100.0%

       $ 332,606

 

(1) Investment in affiliated fund. Northern Trust Investments, N.A. is an investment adviser of the Portfolio and the investment adviser to other Northern Institutional Funds and to the Northern Funds.
(2) At March 31, 2009, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $11,383,000 with net sales of approximately $1,852,000 during the three months ended June 30, 2009.
(3) Security pledged as collateral to cover margin requirements for open futures contracts.
* Non-Income Producing Security

Percentages shown are based on Net Assets.

 

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

 

MULTI-MANAGER SMALL CAP FUND    continued   JUNE 30, 2009 (UNAUDITED)

 

At June 30, 2009, the Multi-Manager Small Cap Fund had open futures contracts as follows:

 

TYPE

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

Russell 2000

               

Mini

    158    $ 8,014    Long    9/09    $ 131
                  

Federal Tax Information:

At June 30,2009, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

 

Federal tax cost of investments

    $ 331,391   
        

Gross tax appreciation of investments

    $ 28,567   

Gross tax depreciation of investments

      (30,226 ) 
        

Net tax appreciation of investments

    $ (1,659 ) 
        

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Quoted market prices in active markets for identical securities on the measurement date and on an ongoing basis

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Small Cap Fund’s investments and other financial instruments which are carried at fair value, as of June 30, 2009:

 

INVESTMENTS

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

Common Stocks

      311,257 (1)      —          —        311,257

Convertible Preferred Stocks

      —          864 (1)      —        864

Investment Companies

      9,531        —          —        9,531

Short-Term Investments

      —          8,080        —        8,080
                             

Total Investments

    $ 320,788      $ 8,944      $ —      $ 329,732
                             

Other Financial Instruments*

    $ 131      $ —        $ —      $ 131
                             

 

(1) Classifications as defined in the Schedule of Investments.
* Other financial instruments include futures and forwards, if applicable.

 

MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

Item 2.   Controls and Procedures.

 

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act (17 CFR 270.30a-3(c))) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act 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 (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3.   Exhibits.

 

(a) Separate certifications for the principal executive and principal financial officers of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 207.30a-2(a)) are attached hereto.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Northern Funds

By:   /s/ Lloyd A. Wennlund
  Lloyd A. Wennlund, President
  (Principal Executive Officer)
Date:   August 28, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Lloyd A. Wennlund
  Lloyd A. Wennlund, President
  (Principal Executive Officer)
Date:   August 28, 2009

 

By:   /s/ Randal Rein
  Randal Rein, Treasurer
  (Principal Financial and Accounting Officer)
Date:   August 28, 2009